02/28/2024

House Bill 86

Lead Sponsors: Representative Jeff LaRe

Status: Passed the House 85-6 (June 21, 2023), Passed the Senate with changes 29-2 (December 6, 2023)

Description: The bill makes a number of changes to the law regarding adult-use cannabis, as enacted through citizen initiative into R.C Chapter 3780. The key changes are as follows:

The bill increases the excise tax levied on adult use cannabis products from 10% to 15%, and distributes the revenue generated from the excise tax according to the following percentages, with a maximum distribution for each purpose:

• 28% (up to $80 million) – Grants through the Department of Rehabilitation and Corrections (DRC) for operating and/or construction cost for county jails.
  • DRC must use the jail funding formula included in the state operating budget to distribute grants.
  • This allocation sunsets after ten years.
  • After sunset, the 28% allocation will be distributed to the General Revenue Fund.
• 16% (up to $45 million) – To the Department of Public Safety (DPS) to fund peace officer training.
  • After five years, allocation increases to 19% (up to $55 million).
• 14% (up to $40 million) – To the Attorney General to fund law enforcement continuing education training costs.
  • Begins in 2026.
• 9% (up to $25 million) – To the Department of Mental Health and Addiction Services (OMHAS) to fund substance abuse treatment, prevention, and education programs.
  • After five years, allocation increases to 11% (up to $30 million).
• 9% (up to $25 million) – OMHAS to fund and administer the 9-8-8 suicide prevention hotline.
• 5% (up to $15 million) – To the Attorney General to reimburse certain costs associated with expungement for marijuana possession offenses decriminalized by the bill.
  • Sunsets after five years.
• 5% (up to $15 million) – To the Division of Criminal Justice Services to fund local drug task forces.
• 5% (up to $15 million) – To fund safe driving programs administered by DPS.
• 4% (up to $13 million) – To DPS to pay the expenses of administering the Ohio Investigative Unit.
• 3% (up to $8 million) – To pay for administrative expenses of the Division of Marijuana Control.
• 2% (up to $5 million) – To the Department of Health to fund poison control centers.

Any revenue above each purposes’ maximum allocation will be deposited into the General Revenue Fund. Functionally, this means that any revenue generated by the excise tax in excess of $286 million will go to the state GRF.

Subject to voter approval, counties have permissive authority to levy an additional 3% excise tax (in 0.25% increments) on adult use cannabis sales to support artistic, cultural, and entertainment opportunities.

The bill makes any property used to cultivate adult-use marijuana ineligible to be valued as CAUV. This is very similar to how current law views land used for medical marijuana.

A municipal corporation or township can prohibit, or limit the number of, adult-use cannabis operators permitted within the boundaries of the subdivision, subject to certain limitations (R.C. 3780.25(A)).

The bill will also limit the amount of dispensary licenses to 350 across the state of Ohio and prohibits a dispensary from being located within 500 feet of schools, churches, public libraries, or public playgrounds and parks.

CCAO Position: No position (as of February 28, 2024)

Other Notes: This bill is the Senate's plan to make legislative revisions to Chapter 3780 (Issue 2, as passed by Ohio voters in November 2023). The House's version of legislative changes is in House Bill 354.