Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Friday, March 6, 2020

Eager to include discussion of notable tax allocation provision in new Ohio marijuana reform initiative as part of "A Fresh Take on Cannabis Regulation"

As highlighted in prior posts here and here, a serious effort to get a serious marijuana legalization initiative to Ohio voters in November 2020 is in the works.  Though this Ohio 2020 ballot initiative, titled "An Amendment to Regulate Marijuana Like Alcohol," still has an uphill climb to even make it to the ballot, I will likely be discussing some of its mostinteresting provisions in a variety of fora in the months ahead.  And today the forum will be at the University of Cincinnati where I have the honor of participating in the College of Law's Corporate Law Symposium titled "A Fresh Take on Cannabis Regulation."

On my panel today, I plan to discuss some of the topics I first covered in my 2018 article, "Leveraging Marijuana Reform to Enhance Expungement Practices," exploring ways that  marijuana reform intersects with criminal justice concerns.  In that article, among other points, I urge jurisdictions to earmark a portion of marijuana revenues to improving the criminal justice system and I specifically advocate for the creation of a new criminal justice institution, which I call a Commission on Justice Restoration, to be funded by the taxes, fees and other revenues generated by marijuana reforms and to be tasked with proactively working on policies and practices designed to help remedy some of the harms of the war on drugs. 

Against that backdrop, I was especially intrigued by an interesting provision for taxing and spending the tax revenue appearing in new Ohio marijuana legalization ballot initiative. Specifically, Section 12(E)(5) of the proposed Ohio constitutional amendment provides:

The General Assembly may enact a special sales tax to be levied upon marijuana and marijuana products sold at retail marijuana stores or other entities that may be authorized to sell marijuana or marijuana products to consumers and, if such a sales tax is enacted, shall direct the Department to establish procedures for the collection of all taxes levied.  Provided, at least one-quarter of the revenue raised from any such sales tax shall be placed in a special fund and used to establish a Commission on Expungement, Criminal Justice, Community Investment, and Cannabis Industry Equity and Diversity, which shall provide recommendations regarding the allocation of the remaining revenue in the fund; at least one-half of the revenue raised from any such sales tax shall be allocated to the State Local Government Fund or any successor fund dedicated to a similar purpose; and at least one-tenth of the revenue raised from any such sales tax shall be returned to the municipal corporations or townships in which the retail sales occurred in proportional amounts based upon the sales taxes remitted.

Though I think the the Commission on Expungement, Criminal Justice, Community Investment, and Cannabis Industry Equity and Diversity (CECJCICIED?) is a very clumsy name, I this it is a very good idea and I am quite excited to see a marijuana reform proposal that includes a means for building needed criminal justice infrastructure with the proceeds of marijuana taxes.

Prior related post:

https://lawprofessors.typepad.com/marijuana_law/2020/03/interesting-tax-and-tax-allocation-provision-in-new-ohio-marijuana-reform-initiative.html

Criminal justice developments and reforms, Initiative reforms in states, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms, Who decides | Permalink

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