420 with CNW — Ohio GOP Measure Seeks to Change Voter-Approved Marijuana Legalization Terms

An Ohio Republican senator has put forward a new measure that seeks to limit the amount of homegrown cannabis, lower the permitted THC levels in recreational cannabis, raise taxes, and reroute how the revenue is allocated.

SB 56, introduced by Senator Steve Huffman, would reduce the allowable THC concentration in recreational cannabis extracts from 90% to 70%. The proposal also includes merging the state’s recreational and medical cannabis programs under the state’s Cannabis Control Division.

Huffman explained in his testimony that combining both programs would lead to more uniform regulations on product testing, labeling, advertising, and packaging with a particular focus on children’s protection. He also argued that consolidating the programs would streamline the licensing process, reduce bureaucratic hurdles, and eliminate unnecessary government inefficiencies.

Ohio voters approved the legalization of recreational cannabis through a citizen-led initiative in 2023, and sales officially began in August last year. Because the law was enacted through voter approval, Ohio legislators have the power to modify it.

Under the current law, households are permitted to cultivate up to 12 cannabis plants. However, the proposed bill seeks to cut that number down to six. Huffman expressed concerns that individuals growing cannabis at home might be contributing to illegal sales.

Additionally, the measure would introduce new restrictions on cannabis transportation and possession. It mandates that cannabis must be stored in a vehicle’s trunk while traveling and specifies that its use is only permitted within private residences.

Another key aspect of the bill is a proposed tax increase on recreational cannabis, raising it to 15% from 10%. It also seeks to impose a cap on the number of dispensaries allowed to operate in the state, limiting them to a maximum of 350 locations. Currently, Ohio has 128 licensed dispensaries.

Revenue generated from marijuana sales is currently distributed among several funds: 36% goes toward social equity and job programs in the cannabis industry, another 36% supports host communities, 25% is allocated to substance abuse treatment and prevention efforts, and the remaining 3% funds regulatory oversight. Under Huffman’s proposal, all tax revenue from recreational cannabis sales would be directed to the state’s general fund instead.

Senator Bill DeMora criticized the new bill, arguing that it disregards the will of Ohio voters who overwhelmingly supported legalization. In response, Huffman defended his proposal, stating that he believes the changes address significant societal concerns.

DeMora also inquired about including provisions for expunging cannabis-related convictions, to which Huffman indicated he was open to discussion.

One notable omission from the measure is any regulation on hemp-derived THC products, such as delta-8. Governor Mike DeWine has urged legislators to take action against these products, but Huffman’s bill does not address the issue. A previous attempt to ban intoxicating hemp products stalled in committee during the last legislative session.

Huffman suggested that a separate measure focusing on hemp regulations may be introduced in the near future.

The marijuana ecosystem, including leading entities like SNDL Inc. (NASDAQ: SNDL) will be watching how the lawmakers discuss and agree on tangible ways to implement legalization, hopefully in a way that will not disappoint the people who expressed their views at the ballots.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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