State lawmakers could amend marijuana proposal

SANDUSKY — If voters approve Issue 2, the state question to legalize recreational marijuana, then they may not have the final word. Issue 1, the abortion state question, amends the Ohio Constitution. It's hard to make changes in the state constitution. But Issue 2, the marijuana question, is an initiated statute that changes state law. That means that Ohio lawmakers could change the law or even repeal it. The Ohio General Assembly is dominated by Republicans who have shown little interest in legalizing marijuana. Tom Haren, the main spokesman for the Coalition to Regulate Marijuana Like Alcohol, said he believes lawmakers would allow a "yes" vote to stand. "Quite frankly, we're not terribly worried," Haren said. If Issue 2 passes in Ohio, it would allow possession and use of marijuana by all adults 21 and over. Adults also could grow six plants at home. Delivery of marijuana to people's homes also would be legal. Delivery services have been fairly common in states that have legalized cannabis, Haren said. Haren estimates that if the state question passed, adult-use sales in Ohio could begin late next year. A 'pitiful' tax rate? Many lawmakers have said they won't go against the will of the voters, according to Haren. Some state lawmakers apparently believe the issue's tax rate is too low. The three state lawmakers who wrote the official "vote no" argument for the state question — state senators Terry Johnson, R-McDermott, and Mark Romanchuk, R-Ontario, and state Rep. William Seitz, R-Cincinnati — criticize Issue 2's "pitiful 10% tax rate." Issue 2 proposes a 10% excise tax for purchases of marijuana at licensed stores. That's similar to Michigan's 10% excise tax but apparently a lower tax rate than what's charged in California, which has a 15% excise tax and relatively high sales taxes. The price of doing business A book published just last month, "Can Legal Weed Win?" by two California economists, Robin Goldstein and Daniel Sumner, contends that illegal marijuana sales continue to dominate the California market because California's taxes and regulations make legally purchased marijuana too expensive. "The cheapest weed currently costs about 70% more in California than it does just over its northern border in Oregon," the authors write. "We estimate that less than 30% that is bought by consumers within the state (of California), by weight, is legal, and more than 70% is illegal." Haren said his group studied the experience of other states in writing its proposal and said Michigan's policies has been better than California's. "Michigan has done a tremendous job of stamping out the illicit market," he contends. David Fraser, a Michigan attorney who specializes in marijuana, said in a recent interview that Michigan marijuana prices in state stores have plunged in recent years and said he believes legal sales have impacted the illegal market. A spokesman for Michigan's highway patrol declined comment, referring the Register to the state's Cannabis Regulatory Agency. While statistics on illicit sales in Michigan are difficult to obtain, legal sales have been rising sharply. Michigan has two kinds of marijuana store licenses: for adult use and medical use. The most popular product in Michigan cannabis stores is flower, a high-potency smokable marijuana. In September, Michigan recorded sales of about 78,600 pounds of flower at adult-use dispensaries. That's an increase of adult use sales of about 46% over one year. The state reported about 53,800 pounds of flower sold in September 2022. In September 2021, only about 18,800 pounds of flower were sold by adult-use dispensaries, so those sales apparently have more than tripled in two years. It is also true that medical marijuana flower sales in Michigan have declined in two years, reflecting an apparent shift in the industry, from about 5,800 thousand pounds in September 2021 to about 1,200 pounds last month. But the combined sales, adult use and medical use, show that monthly sales of flower tripled over a two-year period: from about $25 million to about $80 million. Michigan legalized recreational marijuana in 2018, and dispensary sales began in late 2019.