02/15/2024

House Bill 354

Lead Sponsors: Representative Jamie Callender

Status: 3rd Hearing in House Finance Committee (December 13, 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 keeps the 10% excise tax in Chapter 3780, along with a similar tax revenue distribution:

• 36% – Social Equity and Jobs Program, funded through the Department of Development.
  • Counties will run the programs and receive grants from Development (more information below).
• 36% – Host Community Cannabis Fund.
  • Distributed to municipalities and townships.
• 5% – 9-8-8 Suicide and Prevention Hotline, funded through OMHAS.
• 10% – Substance Abuse and Addiction Fund which aids county sheriffs in providing mental health services in county jails.
• 5% – Substance Abuse and Addiction Fund to support OMHAS in developing the state’s mental health workforce.
• 3% – Division of Marijuana Control operations.

The bill also adds a 10% cultivators gross receipts tax, the revenue from which will be allocated as follows:

• 36% – Adult Use Cannabis Local Jail Fund
• 36% – Adult Use Cannabis County Sheriff Fund
• 23% – Adult Use Cannabis Law Enforcement Training Fund
• 5% – Crime Victims Assistant Fund

The bill deems land used for the cultivation of adult-use cannabis as ineligible for CAUV and restricts the siting of dispensaries from being within 500 feet of certain locations (schools, churches, playgrounds, etc.).

The bill also adjusts the Social Equity and Jobs Program established in Chapter 3780. The chapter gave the Department of Development the primary responsibility of developing and administering the program across the state.

Under HB 354, these responsibilities will now be under the board of county commissioners in each county or a designed a department, board, commission, or agency.

The county’s responsibilities under the program include the following:

• Individuals wanting certification will apply to the county once the county establishes procedures.
• Counties will certify cannabis social equity and jobs program applicants in accordance with rules developed under the Dept. of Development.
• Grants will be provided to counties for the following program purposes:
  • Financial assistance;
  • Loans;
  • Grants;
  • Technical assistance.
• Grant funding may also be used by a county for the following:
  • Community engagement;
  • Economic development;
  • Social programming.

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

Other Notes: This bill is the House's plan to make legislative revisions to Chapter 3780 (Issue 2, as passed by Ohio voters in November 2023). The Senate's version of legislative changes is in House Bill 86.