Central Ohio Cities Postpone Marijuana Sales Despite Statewide Legalization

With nearly 200 dispensary applications already submitted to the Division of Cannabis Control (DCC), recreational marijuana sales could commence in Ohio imminently. While many businesses gear up for dual-use sales, a total of 68 local moratoriums were enacted by Ohio jurisdictions as of July 19, 2024, reflecting concerns over public health, safety and regulatory preparedness. These local bans illustrate the complex landscape of cannabis legalization in the state.

Local Prohibition Statute And Host Community Fund

On November 7, 2023, Ohio became the 24th state to legalize adult-use cannabis, with 57% of voters supporting Issue 2. This issue included Ohio Revised Code Section 3780.25, allowing localities to ban adult-use cannabis businesses, similar to 20 other states. The code protects medical cannabis operators and marijuana-related research at state universities from local ordinances. To encourage municipalities to host cannabis businesses, Ohio established the Host Community Fund, which allocates 36% of recreational cannabis excise tax revenue to communities with adult-use dispensaries, offering financial benefits and local sales tax revenue.

The Scope And Impact Of Moratoriums

Despite legalization, some local resistance is evident. Ohio's 68 active moratoriums affect just over 12% of the state's population. These bans highlight a cautious approach, aiming to balance economic opportunities with community concerns.

A report by Moritz College of Law indicates that postponements are generally brief, emphasizing the need to ensure public peace, health, safety and welfare. These delays often focus on reviewing existing ordinances for conflicts with state marijuana laws or awaiting the Ohio General Assembly’s review of Issue 2. Several jurisdictions intend to thoroughly assess current laws and develop community-specific recommendations once final state standards for the adult-use recreational industry are established

The varied lengths of these moratoriums, from six months to indefinite periods, reflect ongoing uncertainties.

Economic Incentives And Community Debate

As reported by CW Columbus, Granville Township Trustee Bryn Bird expressed a cautious approach regarding state guidance despite 54% of township residents voting for cannabis legalization. Bird highlighted concerns about taxation and revenue sharing, noting the potential benefits for community infrastructure.

Residents are divided over the moratorium. Juniper George values local autonomy, appreciating different laws for different cities, while David Hall supports caution, preferring a pause before making decisions on dispensaries.

Sunnyside Dispensary spokesman Jason Erkes pointed out that communities initially opting out often reconsider after seeing neighboring areas benefit from tax revenue, citing Naperville, Illinois, as an example of reversing its initial ban and experiencing significant financial gains.

Other Central Ohio jurisdictions have also taken steps to regulate marijuana sales. Newark City Council unanimously passed an ordinance limiting the number of locations where recreational marijuana can be sold, allowing only existing medical marijuana facilities to obtain dual-use licenses. Westerville City Council enacted a moratorium to gather data and monitor state-level developments. Beavercreek, which has a medical dispensary, has yet to finalize its stance on recreational operators.

Economic Considerations and Future Prospects

While addressing immediate concerns, local moratoriums potentially hinder economic growth and job creation. States like Michigan, with its thriving cannabis industry, have seen significant employment opportunities. Ohio municipalities prohibiting cannabis businesses risk losing similar economic benefits.

Local bans could also inadvertently push residents to seek cannabis through home cultivation or illicit markets. This underscores the importance of a balanced approach, combining public safety with regulatory frameworks that support legal cannabis operations.

Photo: Shutterstock