Revise medical and adult-use marijuana laws; levy marijuana taxes
Legislative Analysis Report Revise medical and adult-use marijuana laws; levy marijuana taxes
1. Primary Purpose of the Bill
This bill combines the administration of Ohio's medical and adult-use marijuana programs under a single state agency, the Division of Cannabis Control. It moves the rules for adult-use marijuana into the same legal chapter as medical marijuana, sets limits on home growing and personal possession, establishes strict rules for retail sales and advertising, and creates a 15% state tax on adult-use marijuana sales.
Business RegulationTaxationCriminal Justice
2. Changes to Existing Law
ORC Sec. 121.04 / 121.08 Renames the state's regulatory office to the Division of Cannabis Control under the Department of Commerce.
ORC Sec. 3796.04 Allows adults 21 and older to grow up to 6 marijuana plants at home in a secure, hidden area, and bans selling or giving away homegrown marijuana.
ORC Sec. 3796.05 Caps the total number of licensed marijuana dispensaries in Ohio at 350 and bans new dispensaries within a half-mile of existing ones or at locations with liquor permits.
ORC Sec. 3796.06 Sets THC limits for adult-use marijuana (35% for plant material, 70% for extracts, 10mg per serving for edibles) and bans product shapes that appeal to children (like animals or cartoons).
ORC Sec. 3796.062 Bans transporting marijuana in a vehicle unless it is in its original unopened packaging or stored securely in the trunk or behind the back seats.
ORC Sec. 5739.27 Imposes a 15% state excise tax on the retail sale of adult-use marijuana, with revenues going to the state's general fund.
3. Key Information for Citizens
🗳️ What You Need to Know
- Adults aged 21 and older can legally possess up to 2.5 ounces of marijuana plant material or 15 grams of extract.
- Adults can grow up to 6 marijuana plants at home, but they must be kept in a locked, secure area that cannot be seen from public spaces.
- A 15% state tax will be added to all retail purchases of adult-use marijuana.
- Smoking or vaping marijuana is banned in public places, child care homes, and rental properties where the landlord prohibits it.
- Marijuana in vehicles must be unopened in its original packaging or kept out of reach in the trunk or back of the vehicle.
- It is illegal to use marijuana as a passenger in a moving vehicle, and doing so carries strict criminal penalties.
4. Entities Affected
- Adult-use marijuana consumers
- Medical marijuana patients and caregivers
- Marijuana business owners (cultivators, processors, dispensaries, and testing labs)
- Landlords and tenants
- Financial institutions providing banking services to marijuana businesses
- College athletes and universities (regarding endorsement contracts)
- Local governments (townships and municipalities)
5. Regulatory Impact & Enforcement
Agency Authority: The Division of Cannabis Control within the Ohio Department of Commerce is given consolidated authority to regulate, license, and audit both medical and adult-use marijuana. The Ohio Investigative Unit within the Department of Public Safety is authorized to inspect and investigate licensed marijuana businesses. The Department of Taxation is authorized to collect and administer the 15% excise tax.
Penalties & Mandates: Imposes a mandatory 15% retail excise tax on adult-use marijuana. Violating home-grow or possession limits is penalized under standard drug possession laws. Transporting open marijuana in a vehicle is a minor misdemeanor. Using marijuana as a passenger in a vehicle carries criminal charges ranging from a first-degree misdemeanor (with a mandatory 3-day jail term) to a third-degree felony for repeat offenses. Selling or giving marijuana to anyone under 21 is a first-degree misdemeanor (fifth-degree felony for repeat offenses) and results in immediate business license revocation. Using a fake ID to buy marijuana is a first-degree misdemeanor carrying a $250 to $1,000 fine and a potential driver's license suspension.
Implementation Timeline: The Division of Cannabis Control must adopt and implement all necessary rules within 9 months after the bill's effective date.
6. Estimated Fiscal Impact
State Revenue Impact
+15% excise tax on retail sales of adult-use marijuana (total annual revenue not specified)
Local Government Impact
Not applicable
Implementation Costs
Not applicable
Net Annual Fiscal Effect
Not applicable
Policy doesn’t happen in a vacuum. Meet the representatives and senators who introduced this bill and are pushing it through the chamber. Click on any sponsor to see their district, party affiliation, and what other legislation they’ve championed this session.
Primary Sponsors
Stephen A. Huffman
District
5
Chamber
Senate
Party
Republican
Co-Sponsors
Related Topics
To make your research more efficient, this bill has been assigned to one or more Topics. These custom labels group related legislation together, ensuring you can find all of the bills related to a specific topic, regardless of which committee they are in.
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Education
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Taxation & Finance
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Criminal Justice
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Healthcare
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Transportation
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Environment
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Business & Commerce
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Labor & Employment
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Agriculture
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Civil Rights & Liberties
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Local Government
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Marijuana / Cannabis
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Rent & Housing
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Military & Veterans Affairs
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Family & Childcare Services
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Technology & Cybersecurity
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Most legislative decisions are made in committee rooms, not on the chamber floor. Here, you can track which committees have been assigned to review, amend, or report on this bill. Stay informed on where the bill is currently being debated and which chairpersons hold the power to move it forward.
Status Changes
Legislation moves through a rigorous series of checkpoints. Use this tracker to see exactly which phase the bill is in—whether it’s currently under committee review, up for a floor vote, or awaiting a signature to become law. For more information about bills, please see How a Bill Becomes Law.
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Governor |
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Referred to committee
Mar 05 2025
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Reported - Re-referred to Finance
Oct 21 2025
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Reported - Substitute - Re-referred to Rules and Reference
Oct 21 2025
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Reported - Substitute
Oct 22 2025
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Insist on amendments; asks for committee of conference
Oct 29 2025
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Conference managers: Reps. - Fischer, Stewart, Sweeney
Nov 05 2025
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Conference report agreed to
Nov 19 2025
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Conference report agreed to
Nov 19 2025
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Referred to committee
Jan 29 2025
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Reported - Substitute
Feb 26 2025
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Refused to concur in House amendments
Oct 29 2025
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Conference managers: Sens. - Huffman, Wilkin, DeMora
Nov 05 2025
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Conference report agreed to
Dec 09 2025
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Line item veto receipt
Dec 23 2025
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Sent To The Governor
Dec 10 2025
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Signed By The Governor
Dec 19 2025
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Effective
Operating appropriations effective 12/19/2025
Mar 20 2026
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Documents
Access the primary source. This section hosts the full, unedited text of the legislation alongside every official document produced during its journey. From the initial draft to the final enrolled version, you can review the exact language being proposed for state law.
