How Recreational Marijuana could affect Ohio liquor licenses
Recreational marijuana may be legal in Ohio, but there is still a long way to go in terms of the rules and regulations of where it can be used.
This lack of direction has some businesses struggling to understand how they are supposed to navigate the new law.
If marijuana is federally illegal, how do cannabis businesses do their banking?
The Ohio Department of Commerce is warning businesses that openly allowing the use of marijuana on their property could put their liquor license in jeopardy.
“I think largely the business community is in a state of flux because they don’t really know what the implications are, how it impacts them, what is permitted and not permitted, what their rights are under the new law,” Ohio Chamber of Commerce Senior Vice President Rick Carfagna said.
As well as pushing for fast regulation, the Ohio Chamber of Commerce is trying to help businesses across the state understand where they stand right now.
“We have advocated to follow Colorado’s lead, which is just a complete public ban, public use ban indoors and outdoors,” Carfagna said. “That makes it crystal clear that, you know, as opposed to ‘it’s allowed these spaces, then not allowed in these spaces.’ That is just a blanket ban.”
Adults allowed to grow, own marijuana in Columbus with city code changes for Issue 2
Experts said it’s about watching the state legislature.
“When the market is ready, then people should start taking action,” consultant and Capital University assistant professor of accounting Justin Breidenbach said. “But we’re very early still with this and people are just kind of acting way too fast.”
Breidenbach’s advice to businesses is don’t do it.
“You’re really risking your business,” he said. “You’re risking your liquor license, you’re risking your name. You’re risking a lot of things financially by just sort of assuming that you understand the law, and assuming that you can do whatever you want, just because we have possession legalized right now.”
He said another thing to think about is the insurance risk.
Man sentenced for stealing $200,000 from Union County brewery
“Marijuana is still federally illegal at the end of the day; just because Ohio has legalized it for state purposes, that does not change federal law,” Breidenbach said. “So, you could have situations where individuals are maybe consuming marijuana products or smoking marijuana products on-site at a business, even if it’s outside. If somebody gets hurt, if other people get hurt, somebody wants to sue, that is going to open up a huge can of worms in terms of insurance coverage.”
The Department of Commerce said in a statement:
“Under the initiated statute, an individual who is in possession or using marijuana might be shielded from criminal liability; however, when it comes to liquor permit holders, there could be ramifications. To the extent a liquor permit holder is openly allowing the use of marijuana, they could be subject to a citation or at risk of losing their liquor license. Liquor permit holders are obligated to follow state law as a condition of being granted their license. Marijuana is still a controlled substance and a dangerous drug under state law. A liquor license doesn’t allow the use of controlled substances or dangerous drugs on a permit premise.
“The DeWine administration has endorsed legislative changes that would make clear marijuana smoking or vaping in public places, including restaurant and bar patios, is not permitted.”
OHIO DEPARTMENT OF COMMERCE STATEMENT ON RECREATIONAL MARIJUANA
The Department of Commerce still needs to set rules and issue licenses; they have nine months to do that.
