Lawmakers in Ohio have proposed a new measure that would make cannabis products sold throughout the state less potent and more expensive. Although legal marijuana in Ohio already costs twice as much as the cannabis sold in Michigan, the proposal seeks to make the drug even more costly, a move that would make it incredibly difficult for people who need cannabis to access it.
Republican lawmakers introduced a measure titled Senate Bill 56 that would limit the number of plants Ohioans could grow at home and lower the level of THC allowed in cannabis products sold in the state. Ohio legalized cannabis in November 2023 via a ballot measure that allowed adults aged 21 and older to ingest, vape, and smoke cannabis.
Eligible adults could also grow 6-12 plants at home for personal consumption and regulators launched legal recreational cannabis sales in August 2024. Lawmakers like Senator Steve Huffman, who introduced the bill, have been on a mission to amend the cannabis legalization law since then.
Huffman said that the bill is designed to ensure ‘more reasonable’ cannabis use and promote child and consumer safety as well as government efficiency without infringing on adult’s right to use cannabis. It would cap tetrahydrocannabinol (THC) levels at 100 milligrams per package and raise the point of sale tax levied on cannabis products from 10% to 15%. Ohio Governor Mike DeWine proposed raising this tax to 20%.
According to the governor, the increased tax would allow the state to take funds that would have otherwise been spent on cannabis and dedicate them to projects that ‘really make a difference.’ However, this could have dire consequences for Ohio’s fledgling cannabis industry.
Ohio resident Terrell Washington has suffered from Crohn’s disease since childhood and only went into remission after he started using medical marijuana. His experience with cannabis led him to open Leaf Relief, a dispensary selling cannabis to both recreational users and medical cannabis patients. However, he fears his business and others like it will be severely impacted if the proposed regulation takes effect.
Taxes, fees, and stringent testing requirements drive up the cost of legal marijuana compared to the black market. As a result, licensed cannabis dispensaries and retailers are always bleeding customers to black market sellers who don’t abide by costly state requirements and can afford to sell their cannabis cheaply. If legal cannabis becomes even more expensive, local businesses like Leaf Relief would be devastated.
The proposed THC cap would also reduce the number of products they can sell and could wreak havoc on their bottom lines if they’ve already stocked up on products with more than 100 mg of THC. Leaf Relief, for instance, would have to remove 49 of the 61 edibles it sells on its website as they have over 100 mg of THC. Washington says the proposed measure will hurt cannabis cultivators, processors, and dispensaries throughout Ohio and push customers to the black market.
Cannabis industry actors like Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) in other regulated markets are likely to be unhappy that lawmakers in Ohio want to pass legislation that could make it hard for residents to choose products from licensed operators and instead opt for products from the black market due to price differences and potency issues.
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