Currently, there are two competing proposals in Ohio that could dictate the process for marijuana legalization in the state if either is enacted.
The problem is one could be very bad for the state, and it’s the one on the ballot this year.
Responsible Ohio has a proposal which will be on the November 2015 ballot. This proposal is a seriously flawed law which would effectively create a monopoly on the marijuana industry controlled by a few wealthy investors who are fueling the campaign, to the tune of $20 million dollars.
The proposal would allow recreational and medical marijuana in Ohio. The most controversial aspect of the proposal is that the plan would limit marijuana cultivation to only 10 grow sites in the state and those grow sites have already been promised to—you guessed it—the wealthy investors who have ponied up to run this $20 million dollar campaign. This law will further line the pockets of the investors and shut out competition from other enterprising individuals who would want to break into the burgeoning market of marijuana products.
Marijuana will be taxed at 15% for wholesale and commercial use and 5% for retail use, and will only be available for purchase through the limited number of stores, which will be set at one store per 10,000 residents or about 1200 licensed stores around the state. Those stores can only sell marijuana grown at one of those 10 sites.
Responsible Ohio defends the proposal, claiming that the grow sites will not be coordinated and that they will be competing with each other, though there is little incentive for them to actually compete through lower prices when they have the market cornered. They also claim the industry will be open to the public and that those roughly 1200 business licenses will be available for the public.
Many of the stalwart national organizations working on drug policy have critiqued this plan, experts like Ethan Nadelmann of the Drug Policy Alliance (If you haven’t watched his TED talk on the Drug War do it after you finish reading this). The experts over at High Times have some critiques too (and here is the response from Responsible Ohio).
A competing proposal from Ohioans to end prohibition, which created its campaign with the goal of being on the ballot in November 2016 seems like a much better option because of its competitive, open markets. Any adult will be able to apply to a state board for a license to grow, manufacture, or sell marijuana or marijuana products based on demand. There are no arbitrary caps set by this law—it would be based on those interested in entering the market and the demand in the marketplace.
This could allow for a vibrant competitive marijuana industry where any entrepreneur could start a business, after acquiring the license.
The debate, over these two proposals is vibrant and vehement—there are many pro-legalization supporters who are willing to wait another year for a better plan and there are some pro-legalization supporters who are willing to take what they can get sooner.
I would caution those supporters who choose the latter—many prescribe to the idea that if voters don’t like it they can change it.
Both of these proposals are constitutional amendments.
Changing a constitutional amendment is a painstaking process . There are three ways:
It will take 60% of the Ohio legislature, a constitutional convention requiring 2/3 of legislators to agree, or a petition campaign with a Ohio Ballot board oversight and acceptance, then another vote of majority by the public.
That’s damn near impossible. Now, consider that those really wealthy people who have already invested millions of dollars in this campaign will fight like hell with all of their newly minted marijuana money to maintain their control. Ohioans will be stuck with whatever system they choose in the next two years—it’ll be tough to dismantle a system backed by a wealthy monopoly.
Now, to add additional confusion, there is a ballot measure on the November 2015 ballot which would ban constitutional monopolies—it’s a counter attempt to block the Responsible Ohio bill and others like it. If both were to pass in 2015 everything would be tied up in the Ohio supreme court.
The decision on the ballot this year could be disastrous. I support legalization but I urge Ohioans to wait until 2016 and get the right legalization policy. Rushing to the legalization line in 2015 is a bad idea and Ohioans will be stuck with their decision which could lead to less choice, competition, and higher prices. Or, folks can wait a year and get a flexible proposal which could lead to prosperity for many eager would be marijuana entrepreneurs, and more choice and freedom for marijuana enthusiasts.
Vote No on Issue 3 to vote against Responsible Ohio's proposal. Then wait until 2016 for a better proposal.
The details:
Responsible Ohio— over 21 can posses up to 1 ounce, grow four plants after paying a $50 registration fee, 10 grow sites, 1100-1200 licenses for retail and production of marijuana based products, 5% retail tax, 15% tax for wholesale.
Ohioans to end Prohibition— over 21 can posses up to 100 grams of marijuana, possession of more than 100 but less than 1000 grams is a ticketable offense, can grow up to 6 plants, any adult or corporation will be able to apply for a license to grow, manufacture, or sell marijuana or products, tax rates will be $1 per gram of flowers, and $5 per sale of a seedling for wholesale, consumers who are not patients will pay a 5% retail tax,