Many of Ohio’s marijuana rule changes will likely come via administrative rule, not legislation, lawmaker says

COLUMBUS, Ohio—With Ohio House Speaker Jason Stephens roadblocking legislation to alter the state’s new recreational marijuana program, the House’s point person on the issue now predicts most of the changes state officials are seeking will be put in effect via administrative rule instead.

State Rep. Jamie Callender, a Lake County Republican and the House’s lead negotiator on marijuana reform, said Monday that proposed administrative rules being considered by the Ohio Department of Commerce will likely be put in effect by September.

Those rules would not only set up a licensing system for recreational marijuana retailers, Callender said, but they can also address concerns put forward by Gov. Mike DeWine and Senate President Matt Huffman, among others, such as prohibiting sales to minors and banning marijuana-related advertising.

Callender said it’s unlikely that the Ohio General Assembly will pass any legislation that would put such measures in place before Sept. 7, the targeted date for marijuana rules to take effect.

One reason, he said, is that any legislation signed by the governor wouldn’t take effect for 90 days, unless two-thirds of the House and Senate approve an “emergency clause” allowing the bill to take effect immediately. Callender said Senate opposition to an emergency clause means that lawmakers would have to pass something by June in order to take effect by September.

When Callender was asked why he thought lawmakers wouldn’t pass any marijuana bills by June, he replied, “Well, to be kind, it would be because we want to see how it’s working, get a better idea what the revenues are going to be, and see where the needs are going to be.”

But, he added, “practically speaking, it’s probably because it’s an election year.” He also said that the behind-the-scenes fight between Huffman and Stephens over who will be House speaker next year will make it harder for the two leaders to reach agreement on marijuana.

“So, a lot of the issues that the governor, and the Senate in particular, were concerned with, I think, will end up addressed in these rules,” Callender said.

Lt. Gov. Jon Husted’s office is currently soliciting public comments through Feb. 27 on a package of proposed marijuana rules. They include slashing fees for medical marijuana users and caregivers and setting a September deadline for licensing dispensaries and other recreational marijuana facilities, though it wouldn’t necessarily mean sales would start right away. Problems have plagued the opening of medical dispensaries, possibly foretelling issues that could arise for new recreational facilities.

That doesn’t necessarily mean the legislature won’t pass any marijuana reforms after September. In particular, Callender said, lawmakers could move after the November election to raise the special 10% state sales tax on marijuana, and/or redirect at least some marijuana tax money from where current law, approved by Ohio voters last November, would send it.

“If there’s going to be any changes in the (marijuana) tax revenue, how it’s collected, (or) how it’s spent, I think that that may end up in statute,” Callender said. “But that can come later. That can wait till January, when a new legislature is in place, or lame duck (at the end of this year), or whenever after the (marijuana) program is implemented.”

Current law splits that tax revenue – which one study estimated could be as high as $218 million in the first year of sales alone – between local governments with marijuana dispensaries, giving socially disadvantaged groups financial help with opening their own dispensaries, anti-addiction programs, and administrative costs.

Callender also said state lawmakers could pass legislation about gummies, candies, vape cartridges and other products containing delta-8-THC. DeWine has repeatedly called on the legislature to ban delta-8 sales at gas stations, head shops, health food stores and other retailers, saying they are too often sold to minors

Callender said the delta-8 issue is “ancillary” to the state’s recreational marijuana program. “But I think we all agree that needs to be addressed, …so that may need some statute,” he said.

Callender’s comments marijuana rules making legislation unnecessary were first reported by Gongwer News Service.

DeWine, speaking with reporters in Columbus on Monday, reiterated that he wants state lawmakers to pass legislation restricting sales of delta-8 products to minors. He also said, as he has for months, that lawmakers should act quickly to immediately allow recreational marijuana sales at existing medical-marijuana dispensaries, saying that such a step is needed to prevent the growth of a black market for marijuana until recreational retail licenses are awarded.

“We need the legislature to take action in that area,” DeWine said. “Look, if we’ve could have done it by rule, we would have done it by rule, I’ll guarantee you that.

While Huffman supports legislation allowing immediate recreational marijuana sales at medical marijuana dispensaries, the House has resisted the idea.

Callender said if the Ohio Department of Commerce puts marijuana administrative rules in place by Sept. 7, medical-marijuana outlets could start legally selling recreational weed about a week later. New recreational dispensaries, he said, might need until November and December to open their doors.

Jeremy Pelzer covers state politics and policy for Cleveland.com and The Plain Dealer.

©2024 Advance Local Media LLC. Visit cleveland.com. Distributed by Tribune Content Agency, LLC.