Ohio lawmakers will they change cannabis laws for adult use despite the voters’ approval? – MEDCAN24

The story has been reprinted with the permission of Crain’s Cleveland Business. 

Matt Huffman, former Ohio Senate President and newly-elected Speaker of the House and other lawmakers have shown interest in potentially radical changes to the state marijuana laws since the passage of Issue 2.

As recently as December, Huffman said that he is still interested in pursuing a bill that would address some “fundamental flaws” in the voter-approved law — one similar to a bill that passed the Senate last year before stalling in the House.

Some cannabis producers are worried that the proposed changes could be detrimental to them. These include raising tax rates on marijuana and decreasing THC levels in consumer products. The provisions of a recently proposed bill that targets the recreational cannabis program would change both.

Adult-use marijuana products, however, are taxed at 10% plus the sales tax. The tax rates for Ohio’s non-medical marijuana products range from 15.25% up to 17.5% depending on where they are sold.

Senate Bill 56 was introduced at the end January by Senator Stephen Huffman, R-Tipp City, and aims to raise the excise from 10% to 15 %. The effective tax for marijuana used by adults would range from 20.25% to 22,5%, if the bill is passed.

In the meantime, Gov. Mike DeWine calls for increasing that excise tax to 20%.

David Bowling said that the OHCANN trade group, which represents the cannabis business, is concerned about a tax increase even further, as it could deter cannabis consumers from joining the legal state industry.

Pete Nischt is a Vice President at Klutch Cannabis, an Akron-based company. He said: “We have to compete against these other sources of cannabis.” It’s not just Michigan that we are referring to, it is also stuff imported out of the West and illicit hemp. “We’ve made it clear to you that raising the tax right now will be disastrous.”

Matt Huffman stated that “I do not have an idea” about the tax rate in Ohio. Nevertheless, Huffman acknowledged that high taxes may drive customers away.

He said that the legislators would be debating tax rates in greater detail, along with distribution of those proceeds. This could differ from Issue 2’s framework.

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Bowling added that the lowering of potency restrictions could also be as “devastating” as taxes.

To support the medical program lawmakers set a THC ceiling of 70% on all manufactured products, such as concentrates and vapes. The second issue calls for the non-medical products to have a maximum potency no lower than 90 percent.

The THC limit for medical products is lower than the adult usage. Medical products are usually more potent.

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Nischt explained that operators are concerned about how customers will react to the new restrictions, as they may perceive products with a lower potency of THC as being lower in quality. Customers can also get cannabis without the same restrictions via other sources, so limiting potency of legal products could be another thing that drives them away.

Andy Rayburn of Eastlake, Buckeye Relief, as well as the president of OHCANN, said: “There’s a certain level of worry about the new Columbus structure, because the speaker Matt Huffman has declared publicly that he would like to make corrections in Issue 2.

“If the government starts to focus on things like THC levels, as was widely discussed in previous years, this will obviously affect our consumers and severely limit our ability sell certain products,” said he. This will drive people to the black market, where they can purchase the THC that they want.

Huffman stated that, similar to his answer to the question of taxation, he does not have an opinion on THC potency limits and it is a question that legislators should consider.

He said, “I don’t have an opinion on what limits should or shouldn’t exist.” “But I believe we’ll come to a good place by the end of this process.”

The industry stakeholders are hopeful that they will continue to be able to sit at the table during any discussions about legislative changes.

Rayburn stated that they hoped to continue working with the House of Representatives and Senate and to keep explaining the realities of the markets for certain measures, such as changing the THC level, which could lead to consumers driving back to Michigan or illegal markets.

Bowling told reporters that he did not believe marijuana laws and policies would be finalized by 2025.

He said, “It’s more like a 5-year plan rather than an annual plan.” In one year I believe we’ll be in a much more settled situation.