Ohio Sub.HB86 vs HB354: What Bills to Change Marijuana Law Mean and How to Advocate this Week

Ohio’s adult-use cannabis law went into effect last Thursday. Legislators now grapple with details of proposed legislation that would reallocate taxes and make other small changes to what voters approved on the November 7th ballot. MedicateOH breaks down the specifics of these two bills and how advocates can make their voices heard this week:

The Bill as Written

The tax allocation for the adult-use program specified the following on November’s ballot:

• Social equity and jobs programs (36%) 
• Funding for dispensary host communities (36%) 
• Addiction treatment and education (25%) 
• Regulatory and administrative costs (3%)

In days leading up to the bill’s effective date on December 7th, legislators entered two pieces of legislation that dealt with changing the details of the adult-use cannabis bill. Sub.HB86 was written as part of an alcohol bill and led by Senate Republicans, and HB354 was written in response, and sponsored by Rep. Jamie Callender. Here’s a recap:

Last Week in Committee…December 3-9

The Senate General Government Committee heard Primary Sponsor testimony for proposed amendments to the new adult-use cannabis law. The proposed amendments of Ohio Sub.HB86 included: 

• Eliminate Home Grow. 
• Increase excise tax (above sales tax) from 10% to 15% … with changing where the money goes.
• Possession limit of 1 oz of plant material, 5 grams of extract, or 500mg of THC in any other form (this effects topicals and edibles) at a time.
• Public Smoking Ban.
• Same licensure as Medical Program Fees.
• A license limit of 230, where 107 licenses are currently being occupied in the medical program. The current medical program licensees would hold priority of an additional adult use license. Potentially, if the current license holders opt for an additional license, that would leave 16 additional licenses left for anyone else.
• A 25% cap on flower and a 50% cap on concentrates.
• THIS LEGISLATION WOULD ALSO: Prohibit the retail sale of any hemp product that contains more than 0.5 milligram of delta-9 THC per serving, and more than 2 milligrams of D9 per product. It would also ban from retail all other THCs, including delta-8, without limitation.
• Add travel regulations in both the medical and adult-use program (unopened, in the trunk).
• Licenses will be given out by lottery.
• No advertisements on a billboard, transmitted on the radio, television, internet, or broadcast.
• The first DUI comes with a misdemeanor of the first degree with mandatory 3 days in jail, up to 6 months – judge depending, second offense is mandatory 10 days in jail, up to 6 months judge depending.
• The first DUI fines will vary from $375 to $1,075, second offense will be $525 to $1,625.
• Cultivators get an excise tax of 15%.

December 5th, 2023

• Hundreds of passionate Ohioans bombarded the phone lines and email inboxes of the legislative members of the Senate General Government Committee, asking to stop this undoing of the will of the voters.
• After the State gave a roughly 2-hour window to write and turn in testimonies on behalf of Sub.HB86, there were dozens that showed up the next day to testify in person.
• All but four people who testified were in opposition to the changes. 

December 6th, 2023

• The meeting started late, with Senator Rulli announcing a recess until the call of the Chair. The legislators did not return until 3:54 pm when they made some announcements. It began with Senator McColley stating, “We heard you regarding the number of changes that were included [in the bill].” He goes on to list what they changed in Sub.HB86, after listening to testimonies, phone calls, and emails all week. The changes that were made include, but are not limited to:
• Possession limits will remain at 2.5oz for plant material, 15g for extracts
• The THC content limit for plant material will be set at 35%
• The THC content limit for cannabis extract remains at 50%
• A total of 6 plants per HOUSEHOLD
• A total of 350 dispensaries for the State
• You will be able to purchase legal cannabis from a dispensary 90 days after the passage of this bill
• Automatic expungement will be offered to those with simple possession charges of 2.5oz or less
• There will be $15 million annual fund put toward funding automatic expungements and legal aid
• The Senate General Government Committee voted on the new changes to Sub.HB86 and it passed. It was referred to the Rules and References committee by Senator McColley.
• Currently, we are waiting for the House to have a committee hearing on the bill and to bring it to a vote. As of 5:30 pm December 10, 2023 there is nothing on the agenda for Sub.HB86, but this may change tomorrow morning.

December 7th 2023

• The House Finance Committee met on the morning of adult-use legalization to discuss another bill aiming to set the legal framework of Issue 2. Representative Jamie Callender introduced his bill, HB354, to the committee. This bill would stay true to Issue 2, but would make changes to the taxes and funds. Changes include:
• An excise tax of 10% of an adult use cultivator’s adult use cannabis receipts for the tax period creates the following funds in the State Treasury:
  • A receipts fund (where all funds will be deposited)
  • A local jail fund – 36%
  • County Sheriff fund – 36%
  • Law enforcement training fund – 23%
  • Crime victims assistance fund – 5%

HB354 currently sits in the House Committee with scheduled Committee Meetings on Tuesday, December 12th and Wednesday, December 13th. They will take testimony from opponent/proponent/interested parties both days. Email your testimony and a completed witness form to the Chair and Vice Chair of the Committee by the end of business on Monday, December 11th.

How Can YOU Participate?

1. Write and/or present a testimony as an opponent/proponent/interested party. Complete and turn in your testimony by end of business day, the day before the hearing. Email your testimony and a completed witness form to the Chair and Vice Chair of the Committee.
2. Call the Committee members and urge them to vote for or against the bill.
3. Watch the hearing live at ohiochannel.org.

Contact the Ohio House Finance Committee

Jay Edwards – Chair

Republican

rep94@ohiohouse.gov

(614) 466-2158

Jeff LaRe – Vice Chair

Republican

rep73@ohiohouse.gov

(614) 466-8100

Template letter: https://docs.google.com/document/d/1NNpNE4T_D91qtfoQbNlhfpAcJL7P2VAhU0KMWGt1evM/https://docs.google.com/document/d/1NNpNE4T_D91qtfoQbNlhfpAcJL7P2VAhU0KMWGt1evM/

What’s Legal Right Now in Ohio?

The law for adults to use cannabis in Ohio went into effect as written on December 7th, 2023. Chapter 3780 was written into the Ohio Revised Code and the ballot measure gave the state nine months to set up a system for legal marijuana purchases. That nine months was also the proposed timeline for adult use cannabis dispensaries (existing medical marijuana dispensaries) to become licensed by the state Department of Commerce to sell product to adults without their medical marijuana cards.

So while cannabis is legal to possess for all adults, only MMJ patients may use dispensaries until late next year. (That timeline was proposed to be moved forward last week in discussions regarding Sub.HB86. The proposal was 90 days after Sub.HB86 would be signed into law.)

The adult-use consumption law limits users to using cannabis inside one’s home. Although some establishments have advertised as pot-friendly to celebrate last week, Ohio’s smoking ban prohibits people from lighting up in any indoor public spaces or places where people are employed. Outdoor patios allowing public marijuana consumption are not legal. Private businesses where people are allowed to smoke cannabis will risk citations and loss of liquor licenses.

Want to use cannabis in Ohio now?

Want to use cannabis in Ohio now? You can do so by either getting your medical marijuana card or setting up a home grow. Despite the law change, selling marijuana without a license is still illegal in Ohio and those caught are subject to a wide array of penalties depending on where they are caught and how much they are caught with.

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