On November 7, 2023, Ohio voters approved the initiated statute Ohio Rev. Code § 3780 (R.C. 3780) which provides for the legal sale and use of cannabis (marijuana) by individuals age 21 and over. While cannabis sales have been legal in Ohio since January 2019 through the Ohio Department of Commerce, Medical Marijuana Control Program, R.C. 3780 will give many more Ohioans access to legal cannabis products throughout the state.

Going into effect December 7, 2023, the enactment of R.C. 3780 makes Ohio the 24^th state to legalize adult use cannabis in the U.S. The Ohio legislature represented that while it will not seek to repeal the statute, legislators do have an opportunity to modify it; the Ohio Department of Commerce has nine months to finalize the rules and procedures for the program. Once the statute is enacted in its final form, the administrative rule making process will begin. Governor DeWine and the legislature aspire to enact the amended law by the statute’s original deadline, but they are running out of time.

In response to inquiries from our clients asking how legalization may impact their businesses, we prepared this summary of key points from a business-owner’s perspective on the implications of adult use cannabis in Ohio.

The new Ohio Adult Use Cannabis law:

• Establishes a new Division of Cannabis Control (“Division”) within the Ohio Department of Commerce to regulate adult use cannabis operators.
• Permits individuals age 21 and over to (i) purchase a daily limit of up to 2.5 ounces of adult use cannabis and 15 grams of adult use cannabis extract, (ii) possess up to 2.5 ounces of adult use cannabis and 15 grams of adult use cannabis extract (iii) consume adult use cannabis, (iv) home grow up to 6 cannabis plants in a person’s primary residence, up to a maximum of 12 plants where two (2) or more adults reside in the home.
• Prohibits the consumption of cannabis anywhere current law prohibits smoking tobacco or consuming alcohol.
• Permits landlords to prohibit the home growing of cannabis plants, provided that the prohibition is expressly stated in the lease agreement.
• Permits an employer to continue to enforce a drug-free workplace policy, including grounds for termination and refusing to hire based on cannabis use. An employer need not make accommodations for cannabis use by employees, even those in the medical use category.
• Provides for the issuance of up to 50 new adult use cannabis dispensary licenses and 40 adult use cultivation licenses (“level III”). Applications are to be made available not later than June 2024. Those qualified individuals in a to-be-established cannabis social equity and jobs program shall have a preference in the application process.
• Grants existing medical marijuana operators an adult use cannabis operator license, the type and number of which depending on the medical marijuana operator license and status.
• Permits any municipality from prohibiting the establishment of an adult use cannabis operator within its borders, excepting those medical marijuana operators already within the municipality and granted an adult use cannabis operator license by law.
• Prohibits an adult use cannabis operator from being within 500 feet of a school, church, library, playground or other such prohibited facilities.

The entire initiated statute can be found here.

Additional helpful answers to FAQs can also be found here.

If you have additional questions or concerns, please contact a Mansour Gavin attorney for further guidance.