As Introduced

130th General Assembly
Regular Session
2013-2014
H. J. R. No. 6


Representative Hagan, R. 

Cosponsor: Representative Foley 



A JOINT RESOLUTION
Proposing to enact Section 12 of Article XV of the Constitution of the State of Ohio to legalize the production, use, and sale of marijuana under specified conditions and to provide for the regulation and taxation of marijuana.

       Be it resolved by the General Assembly of the State of Ohio, three-fifths of the members elected to each house concurring herein, that there shall be submitted to the electors of the state, in the manner prescribed by law at the general election to be held on November 5, 2013, a proposal to enact Section 12 of Article XV of the Constitution of the State of Ohio to read as follows:

ARTICLE XV

12.   (A)(1) In the interest of the efficient use of law enforcement resources, enhancing revenue for public purposes, and individual freedom, the people of the state of Ohio find and declare that the use of marijuana should be legal for persons twenty-one years of age or older and taxed in a manner similar to alcohol.

       (2) In the interest of the health and public safety of our citizenry, the people of the state of Ohio further find and declare that marijuana should be regulated in a manner similar to alcohol so that:

       (a) Individuals will have to show proof of age before purchasing marijuana.

       (b) Selling, distributing, or transferring marijuana to minors and other individuals under the age of twenty-one shall remain illegal.

       (c) Driving under the influence of marijuana shall remain illegal.

       (d) Legitimate, taxpaying business people, and not criminal actors, will conduct sales of marijuana.

       (e) Marijuana sold in this state will be labeled and subject to additional regulation to ensure that consumers are informed and protected.

       (3) In the interest of enacting rational policies for the treatment of all variations of the cannabis plant, the people of Ohio further find and declare that industrial hemp should be regulated separately from strains of cannabis with higher delta-9 tetrahydrocannabinol (THC) concentrations.

       (4) The people of the state of Ohio further find and declare that it is necessary to ensure consistency and fairness in the application of this section throughout the state and that, therefore, the matters addressed by this section are, except as specified herein, matters of statewide concern.

       (B) As used in this section, unless the context otherwise requires:

       (1) "Consumer" means a person twenty-one years of age or older who purchases marijuana or marijuana products for personal use by persons twenty-one years of age or older, but not for resale to others.

       (2) "Department" means the department of taxation or its successor agency.

       (3) "Industrial hemp" means the plant of the genus cannabis and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration that does not exceed three-tenths per cent on a dry weight basis.

       (4) "Locality" means a county or municipal corporation.

       (5) "Marijuana" means all parts of the plant of the genus cannabis whether growing or not, the seeds of the plant, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate. "Marijuana" does not include industrial hemp or fiber produced from the stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant that is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products.

       (6) "Marijuana accessories" means any equipment, products, or materials of any kind that are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body.

       (7) "Marijuana cultivation facility" means an entity licensed to cultivate, prepare, and package marijuana and sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers.

       (8) "Marijuana establishment" means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store.

       (9) "Marijuana product manufacturing facility" means an entity licensed to purchase marijuana; to manufacture, prepare, and package marijuana products; and to sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.

       (10) "Marijuana products" means concentrated marijuana products and marijuana products that are composed of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.

       (11) "Marijuana testing facility" means an entity licensed to analyze and certify the safety and potency of marijuana.

       (12) "Retail marijuana store" means an entity licensed to purchase marijuana from marijuana cultivation facilities and marijuana and marijuana products from marijuana product manufacturing facilities and to sell marijuana and marijuana products to consumers.

       (13) "Unreasonably impracticable" means that the measures necessary to comply with statutory or administrative regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.

       (C) Notwithstanding any other provision of law, the following acts are not unlawful and shall not be offenses under Ohio law or the law of any political subdivision of Ohio or be a basis for seizure or forfeiture of assets under Ohio law for persons twenty-one years of age or older:

       (1) Possessing, using, displaying, purchasing, or transporting marijuana accessories or one ounce or less of marijuana.

       (2) Possessing, growing, processing, or transporting not more than six marijuana plants, with three or fewer being mature, flowering plants, and possession of the marijuana produced by the plants on the premises where the plants were grown, provided that the growing takes place in an enclosed, locked space, is not conducted openly or publicly, and is not made available for sale.

       (3) Transfer of one ounce or less of marijuana without remuneration to a person who is twenty-one years of age or older.

       (4) Consumption of marijuana, provided that nothing in this section shall permit consumption that is conducted openly and publicly or in a manner that endangers others.

       (5) Assisting another person who is twenty-one years of age or older in any of the acts described in divisions (C)(1) to (4) of this section.

       (D) Notwithstanding any other provision of law, the following acts are not unlawful and shall not be offenses under Ohio law or be a basis for seizure or forfeiture of assets under Ohio law for persons twenty-one years of age or older:

       (1) Manufacture, possession, or purchase of marijuana accessories or the sale of marijuana accessories to a person who is twenty-one years of age or older;

       (2) Possessing, displaying, or transporting marijuana or marijuana products; purchase of marijuana from a marijuana cultivation facility; purchase of marijuana or marijuana products from a marijuana product manufacturing facility; or sale of marijuana or marijuana products to consumers, if the person conducting those activities has a current, valid license to operate a retail marijuana store or is acting in the person's capacity as an owner, employee, or agent of a licensed retail marijuana store;

       (3) Cultivating, harvesting, processing, packaging, transporting, displaying, or possessing marijuana; delivering or transferring marijuana to a marijuana testing facility; selling marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store; or purchasing marijuana from a marijuana cultivation facility, if the person conducting those activities has a current, valid license to operate a marijuana cultivation facility or is acting in the person's capacity as an owner, employee, or agent of a licensed marijuana cultivation facility;

       (4) Packaging, processing, transporting, manufacturing, displaying, or possessing marijuana or marijuana products; delivering or transferring marijuana or marijuana products to a marijuana testing facility; selling marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility; purchasing marijuana from a marijuana cultivation facility; or purchasing marijuana or marijuana products from a marijuana product manufacturing facility, if the person conducting those activities has a current, valid license to operate a marijuana product manufacturing facility or is acting in the person's capacity as an owner, employee, or agent of a licensed marijuana product manufacturing facility;

       (5) Possessing, cultivating, processing, repackaging, storing, transporting, displaying, transferring, or delivering marijuana or marijuana products if the person has a current, valid license to operate a marijuana testing facility or is acting in the person's capacity as an owner, employee, or agent of a licensed marijuana testing facility;

       (6) Leasing or otherwise allowing the use of property owned, occupied, or controlled by any person, corporation, or other entity for any of the activities conducted lawfully in accordance with divisions (D)(1) to (5) of this section.

       (E)(1) Not later than July 1, 2014, the department shall adopt rules necessary for implementation of this section. The rules shall not prohibit the operation of marijuana establishments, either expressly or through rules that make their operation unreasonably impracticable. The rules shall include all of the following:

       (a) Procedures for the issuance, renewal, suspension, and revocation of a license to operate a marijuana establishment, with the procedures subject to all requirements of Chapter 119. of the Revised Code or any successor provisions;

       (b) A schedule of application, licensing, and renewal fees, provided that application fees shall not exceed five thousand dollars, with this upper limit adjusted annually for inflation, unless the department determines that a greater fee is necessary to carry out its responsibilities under this section;

       (c) Qualifications for licensure that are directly and demonstrably related to the operation of a marijuana establishment;

       (d) Security requirements for marijuana establishments;

       (e) Requirements to prevent the sale or diversion of marijuana and marijuana products to persons under the age of twenty-one;

       (f) Labeling requirements for marijuana and marijuana products sold or distributed by a marijuana establishment;

       (g) Health and safety rules and standards for the manufacture of marijuana products and the cultivation of marijuana;

       (h) Restrictions on the advertising and display of marijuana and marijuana products;

       (i) Civil penalties for the failure to comply with rules made pursuant to this section.

       (2) In order to ensure that individual privacy is protected, notwithstanding division (E)(1) of this section, the department shall not require a consumer to provide a retail marijuana store with personal information other than government-issued identification to determine the consumer's age, and a retail marijuana store shall not be required to acquire and record personal information about consumers other than information typically acquired in a financial transaction conducted at a retail liquor store.

       (3) The general assembly shall enact an excise tax to be levied upon marijuana sold or otherwise transferred by a marijuana cultivation facility to a marijuana product manufacturing facility or to a retail marijuana store at a rate not to exceed fifteen per cent prior to January 1, 2018, and at a rate to be determined by the general assembly after that date, and shall direct the department to establish procedures for the collection of all taxes levied.

       (4) Not later than October 1, 2014, each locality shall enact an ordinance or resolution specifying the entity within the locality that is responsible for processing applications submitted for a license to operate a marijuana establishment within the boundaries of the locality and for the issuance of the licenses if the issuance by the locality becomes necessary because of a failure by the department to adopt rules pursuant to division (E)(1) of this section or because of a failure by the department to process and issue licenses as required by division (E)(6) of this section.

       (5) A locality may enact ordinances or resolutions, not in conflict with this section or with rules adopted or legislation enacted pursuant to this section, governing the time, place, manner, and number of marijuana establishment operations; establishing procedures for the issuance, suspension, and revocation of a license issued by the locality in accordance with division (E)(7) or (8) of this section; establishing a schedule of annual operating, licensing, and application fees for marijuana establishments, provided that the application fee shall only be due if an application is submitted to a locality in accordance with division (E)(8) of this section, and a licensing fee shall only be due if a license is issued by a locality in accordance with division (E)(7) or (8) of this section; and establishing civil penalties for a violation of an ordinance or resolution governing the time, place, and manner of a marijuana establishment that may operate in the locality. A locality may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or resolution or through an initiated measure; provided that any initiated measure to prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores must appear on a general election ballot during an even-numbered year.

       (6) Each application for an annual license to operate a marijuana establishment shall be submitted to the department. The department shall do all of the following:

       (a) Begin accepting and processing applications on October 1, 2014;

       (b) Immediately forward a copy of each application and half of the license application fee to the locality in which the applicant desires to operate the marijuana establishment;

       (c) Issue an annual license to the applicant between forty-five and ninety days after receipt of an application unless the department finds the applicant is not in compliance with rules adopted pursuant to division (E)(1) of this section or the department is notified by the relevant locality that the applicant is not in compliance with ordinances and resolutions made pursuant to division (E)(5) of this section and in effect at the time of application, provided, that if a locality has enacted a numerical limit on the number of marijuana establishments and the number of applicants that seek licenses exceeds that limit, the department shall solicit and consider input from the locality as to the locality's preference or preferences for licensure;

       (d) Upon denial of an application, notify the applicant in writing of the specific reason for its denial.

       (7) If the department does not issue a license to an applicant within ninety days of receipt of the application filed in accordance with division (E)(6) of this section and does not notify the applicant of the specific reason for its denial, in writing and within that ninety-day period, or if the department has adopted rules pursuant to division (E)(1) of this section and has accepted applications pursuant to division (E)(6) of this section but has not issued any licenses by January 1, 2015, the applicant may resubmit its application directly to the locality, pursuant to division (E)(4) of this section, and the locality may issue an annual license to the applicant. A locality issuing a license to an applicant shall do so within ninety days of receipt of the resubmitted application unless the locality finds and notifies the applicant that the applicant is not in compliance with ordinances and resolutions made pursuant to division (E)(5) of this section in effect at the time the application is resubmitted, and the locality shall notify the department if an annual license has been issued to the applicant. If an application is submitted to a locality under division (E)(7) of this section, the department shall forward to the locality the application fee paid by the applicant to the department upon request by the locality. A license issued by a locality in accordance with division (E)(7) of this section shall have the same force and effect as a license issued by the department in accordance with division (E)(6) of this section and the holder of the license shall not be subject to regulation or enforcement by the department during the term of that license. A subsequent or renewed license may be issued under division (E)(7) of this section on an annual basis only upon resubmission to the locality of a new application submitted to the department pursuant to division (E)(6) of this section. Nothing in division (E)(7) of this section shall limit the relief that may be available to an aggrieved party under Chapter 119. of the Revised Code or any successor provisions.

       (8) If the department does not adopt the rules required by division (E)(1) of this section, an applicant may submit an application directly to a locality after October 1, 2014, and the locality may issue an annual license to the applicant. A locality issuing a license to an applicant shall do so within ninety days of receipt of the application unless it finds and notifies the applicant that the applicant is not in compliance with the ordinances or resolutions made pursuant to division (E)(5) of this section in effect at the time of application and shall notify the department if an annual license has been issued to the applicant. A license issued by a locality in accordance with division (E)(8) of this section shall have the same force and effect as a license issued by the department in accordance with division (E)(6) of this section, and the holder of the license shall not be subject to regulation or enforcement by the department during the term of that license. A subsequent or renewed license may be issued under division (E)(8) of this section on an annual basis if the department has not adopted rules required by division (E)(1) of this section at least ninety days prior to the date upon which the subsequent or renewed license would be effective or if the department has adopted rules pursuant to division (E)(1) of this section but has not, at least ninety days after the adoption of the rules, issued licenses pursuant to division (E)(6) of this section.

       (9) Not later than July 1, 2015, the general assembly shall enact legislation governing the cultivation, processing, and sale of industrial hemp.

       (F)(1) Nothing in this section requires an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growing of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees.

       (2) Nothing in this section allows driving under the influence of marijuana or driving while impaired by marijuana or supersedes statutes or ordinances related to driving under the influence of marijuana or driving while impaired by marijuana, and this section does not prevent the state from enacting and imposing penalties for driving under the influence of or while impaired by marijuana.

       (3) Nothing in this section permits the transfer of marijuana, with or without remuneration, to a person under the age of twenty-one or allows a person under the age of twenty-one to purchase, possess, use, transport, grow, or consume marijuana.

       (4) Nothing in this section prohibits a person, employer, school, hospital, detention facility, corporation, or other entity that occupies, owns, or controls a property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or growing of marijuana on or in that property.

EFFECTIVE DATE

       If adopted by a majority of the electors voting on this proposal, Section 12 of Article XV of the Constitution of the State of Ohio as enacted by this proposal shall take effect immediately.