Mr. Jacques referenced a PowerPoint presentation and explained that the Planning Commission recommended approval of this ordinance and now Council will need to consider the proposed Zoning Code text amendment. It prohibits medical marijuana-related businesses and/or home occupations within all zoning districts in the city of Oakwood. He explained that there was one very minor change to the legislation presented to the Planning Commission. The words “on the premises” were added to the legislation for clarification purposes. He said that he would explain this later in the presentation. Mr. Jacques explained that on June 8, 2016, Ohio signed into law H.B. 523, making Ohio the 25th state to enact medical marijuana legislation. The Department of Justice has not been attempting to prosecute medical marijuana distributors or challenge state laws, but marijuana remains illegal under federal law and, with the new presidential administration, the DOJ may not continue to take a hands-off approach. In October 2015, 90% of Ohioans supported legalized medical marijuana, but only 53% supported legalizing small amounts of marijuana for personal/recreational use. Ohio Marijuana Legalization Initiative (Issue 3) was defeated in 2015 with over 63% voting down the Initiative, which would have legalized all forms and uses of marijuana. In March 2016, the Marijuana Policy Project proposed an amendment to the Ohio Constitution to legalize medical marijuana. The Amendment would have permitted: home-grown medical marijuana; all products and methods of consuming products; additional qualifying conditions; recommendations (versus a prescription) by physician assistants and nurse practitioners, as well as physicians. Supporters needed 305,591 valid signatures by July 6, 2016 to put the Constitutional Amendment on the November 2016 ballot. H.B. 523 was passed on May 25, 2016. Thereafter, the Marijuana Policy Project discontinued its pursuit of the ballot issue.

H.B. 523 went into effect on September 8, 2016 and the general provisions are: permitted uses – vaporization, tinctures, edibles, patches, plant materials, and oils; smoking is not permitted; and an affirmative defense is now available for drug charges (under state law, not federal). The Ohio Department of Commerce and the State of Ohio Board of Pharmacy are required by law to take all actions necessary to ensure that Ohio’s Medical Marijuana Control Program is fully operational no later than September 2018. At that time, there will be an established structure for: state licensure of cultivators, processors, retail dispensaries, and testing laboratories; registration and certification of physicians who may recommend treatment with medical marijuana; and reciprocity agreements between Ohio and other states which have legalized medical marijuana. The Ohio Medical Board has discouraged physicians from recommending marijuana until the physician has obtained a certificate to recommend from the Board, and the certificate is still in the process of being developed. Also, H.B. 597 was introduced in September 2016 which would amend the law to restrict reciprocity agreements to states with restrictions similar to Ohio’s. So it is clear that much of the new law’s operation is still unknown, and there are already legislative efforts to change it further.

According to a study by Marijuana Business Daily, retail sales of medical marijuana in Ohio could reach $400 million annually. There could be an estimated $23 million in state sales tax revenue (marijuana is not considered a “drug,” so the sale would not be tax exempt). There are currently no tax regulations in H.B. 523, so this is to be determined. Decades ago, Ohio municipalities imposed and collect their own sales taxes, but this is now replaced by a state/county system and Local Government Fund in Ohio. In California, municipalities can impose a sales tax on medical marijuana, but for Ohio cities, the sale of medical marijuana would not provide a great tax benefit. Revenues to the City would primarily come from payroll taxes, business income taxes, and property taxes, just like any other business.

Ohio Revised Code Section 3796.30 states that facilities must be at least 500 feet from any church, public school, public library, public park, or public playground. Ohio Revised Code Section 3796.29 states, “The legislative authority of a municipal corporation may adopt an ordinance…to prohibit, or limit the number of, cultivators, processors, or retail dispensaries licensed under this chapter within the municipal corporation…” Municipalities can further regulate the location of facilities, can prohibit or limit the number of facilities and may entirely prohibit facilities from being located in the municipality. Currently, there have been three (3) general approaches on medical marijuana in Ohio. Cities can choose to permit medical marijuana uses, which has happened in Johnstown; they can choose to prohibit these uses, as was done in Hamilton; or they can adopt a temporary moratorium, which is probably the most common response right now. Locally, moratoriums have been adopted in cities such as Troy, Piqua, and Beavercreek. Mr. Jacques noted that the proposed ordinance is to prohibit the sale of medical marijuana in Oakwood. The proposed ordinance is from a zoning standpoint and has to do with the business uses and the compatibility of the use fitting in with the Oakwood neighborhoods. It is not the same thing as taking a position on the use of medical marijuana.

Oakwood Zoning Code, Section 1003 states that the City Council’s role is to hold a public hearing (Sec. 1003.5(A)), which is being done this evening. By a simple majority vote, City Council can vote to approve, disapprove or approve with modifications the proposed legislation.