OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 86* Bill Analysis
135th General Assembly
Click here for H.B. 86’s Fiscal Note
Version: As Passed by the Senate
Primary Sponsor: Rep. LaRe
Effective Date:
Jeff Grim, Research Analyst and other LSC staff
SUMMARY
 Revises the limit on the gallons of spirituous liquor that a micro-distillery (A-3a liquor
permit holder) may manufacture each year as follows:
 Increases the amount from less than 100,000 gallons to any amount if the micro-
distillery is issued an A-3a permit prior to the bill’s effective date, regardless of
whether the permit premises location or the premises’ ownership is transferred and
the permit holder is issued a new A-3a permit after the bill’s effective date.
 Retains the 100,000 gallon limit for a distiller that begins manufacturing spirituous
liquor under an A-3a permit on and after the bill’s effective date.
 Requires tasting samples of spirituous liquor, when provided at a liquor agency store, to
be provided for free, rather than requiring at least a 50¢ charge for each tasting sample
as under current law.
 Removes grains of paradise from the list of substances that are prohibited for use in and
considered an adulterating agent to spirituous liquor, alcoholic liquor, or beer.
 Repeals the Cannabis Control Law, enacted by petition and scheduled to take effect
December 7, 2023, and instead incorporates many of its adult-use and home grow
provisions into the existing Medical Marijuana Control Law.
 Revises the law governing hemp products.
 Levies taxes on adult-use marijuana.
* This analysis was prepared before the report of the Senate General Government Committee or the
vote of the Senate appeared in the Senate Journal. Note that the legislative history may be incomplete.
December 7, 2023
Office of Research and Drafting LSC Legislative Budget Office
DETAILED ANALYSIS
A-3a liquor permit: manufacturing limit
The bill increases the amount of spirituous liquor (intoxicating liquor of more than
21% alcohol by volume) that a micro-distillery (A-3a liquor permit holder) may annually
manufacture under certain conditions. Under current law, to be eligible for an A-3a permit, a
micro-distillery must manufacture less than 100,000 gallons per year. The bill increases that
amount to any amount for a micro-distillery issued an A-3a permit prior to the bill’s effective
date. The removal of the 100,000 gallon limitation applies regardless of whether the permit
premises location or ownership of the permit premises is transferred and the permit holder is
issued a new A-3a permit. The bill retains the 100,000 gallon per year limit for a micro-distillery
issued an A-3a permit on and after the bill’s effective date.1
Under current law, the Division of Liquor Control may issue two types of liquor permits
to distillers of spirituous liquor, an A-3 and an A-3a liquor permit. An A-3 permit is generally
issued to large distilleries (100,000 gallons or more per year) and the A-3a permit is issued to
micro-distilleries (less than 100,000 gallons per year). Although both distilleries may
manufacture spirituous liquor, only an A-3a permit holder may sell spirituous liquor to a
personal consumer in sealed containers for consumption off the manufacturing premises.2
Thus, the bill allows larger distilleries (via the increase in the production limit for A-3a permit
holders) to sell their spirituous liquor to personal consumers from their distilleries.
Tasting samples of spirituous liquor
The bill requires tasting samples of spirituous liquor, when provided at a liquor agency
store, to be provided for free rather than requiring at least a 50¢ charge for each tasting sample
as under current law. The bill retains the following current requirements for the provision of
the tasting samples:
1. The person consuming the tasting sample must be 21 or above;
2. The tasting sample must not exceed a quarter ounce;
3. The tasting event must not exceed two hours;
4. A person may not consume more than four tasting samples of spirituous liquor per day;
5. The tasting samples must be provided by a trade marketing professional, broker, or
solicitor (see below);
6. The liquor agency store must hold a D-8 liquor permit, which authorizes the provision of
the tasting samples; and
1 R.C. 4303.041(A).
2 R.C. 4303.04, not in the bill, and 4303.041.
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As Passed by the Senate
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7. The tasting event must take place in the area of the liquor agency store in which
spirituous liquor is sold.3
Trade marketing professionals, brokers, and solicitors
Under current law, a broker is a company that solicits sales of alcoholic beverages on
behalf of a manufacturer or supplier, but does not take possession of the alcoholic beverages in
Ohio, except as provided in the liquor control laws. A solicitor is an individual who solicits liquor
permit holders or the Division of Liquor Control for sales of alcoholic beverages on behalf of a
manufacturer, supplier, wholesale distributor, or broker, but does not take possession of the
alcoholic beverages in Ohio, except as provided in the liquor control laws.4 A trade marketing
professional is an individual who is an employee of, or is under contract with, a trade marketing
company and who has successfully completed a training program on the liquor control laws,
conflict management, and safety provisions in an emergency.5
Grains of paradise as adulterated alcohol
The bill removes grains of paradise from the list of substances that are prohibited for
use in and considered an adulterating agent to spirituous liquor, alcoholic liquor, or beer. 6
Marijuana, hemp, and tax laws
The bill generally replaces the Cannabis Control Law, enacted by petition and scheduled
to take effect December 7, 2023, incorporating many provisions of the Cannabis Control Law
into the already existing Medical Marijuana Control Law, while amending or outright repealing
others, with the resulting law being referred to as the Marijuana Control Law. Both versions
authorize nonmedical use of marijuana products by individuals over 21 years of age.
Under the Cannabis Control Law, the cultivation, processing, and dispensing of adult use
marijuana is overseen by the Division of Cannabis Control. Under the bill, oversight of adult-use
marijuana is transferred to the Division of Marijuana Control (DMC). DMC is currently
responsible for the oversight of medical marijuana and oversees 23 Level I cultivators (two of
which are provisional), 14 Level II cultivators (one of which is provisional), 46 processors (two of
which are provisional), and 114 dispensaries (one of which is provisional). Currently there are
approximately 403,000 registered medical marijuana users in Ohio.7 These medical marijuana
license holders would be able to engage in all activities authorized under the Marijuana Control
Law.
3 R.C. 4301.17 and 4301.171.
4 R.C. 4301.245(A)(1), not in the bill, by reference to Ohio Administrative Code 4301-1-01(B).
5 R.C. 4301.245(A)(5). A trade marketing company is a company that solicits the purchase of beer and
intoxicating liquor and educates the public about beer and intoxicating liquor (R.C. 4301.171(A)(3)).
6 R.C. 4399.15.
7 Program Update: By the Numbers (PDF), November 2023, Division of Marijuana Control.
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As Passed by the Senate
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The table below compares the current Cannabis Control Law with the Marijuana Control
Law, as proposed by the bill. Generally, this table provides information only on the ways in
which the two laws differ and mostly omits information on the ways in which the laws are
substantively the same.
Current Law H.B. 86
(R.C. Chapter 3780) (As Passed by the Senate)
Oversight
Establishes the Division of Cannabis Control (DCC) Invests this authority with the already-existing
within the Department of Commerce and grants Division of Marijuana Control (DMC) and specifies
DCC the authority to license, regulate, investigate, that DMC is under the purview of the
and penalize adult-use cannabis license holders Superintendent of Marijuana Control (R.C.
and adult-use users (R.C. 3780.03(A) and (B)). 3796.02).
Requires, a separate license, for adult-use Requires license holders under the Marijuana
cultivators, processors, dispensaries, and Control Law to engage in both medical marijuana
laboratories, distinct from the medical marijuana and adult-use marijuana activities (R.C. Chapter
license for such activities (R.C. Chapter 3780). 3796).
Requires DCC to adopt rules pertaining to the Similar, but only requires DMC to adopt rules
issuance and oversight of adult-use cannabis, but related to the general oversight and licensure of
also requires DCC to adopt rules pertaining to all licenses related to both medical and adult-use
of the following: marijuana. Repeals the requirement for rules
related to insurance or bonds, samples and
 Minimum insurance or surety bond
advertising, security and surveillance, and delivery
requirements for license holders;
and mobile ordering. (R.C. 3796.03).
 Standards for samples and advertising;
 Technical standards for security and
surveillance for license holders;
 Requirements for security services, including
armed and unarmed agents;
 Standards and procedures to allow for
delivery and mobile ordering of adult-use
cannabis (R.C. 3780.03(C)).
Transition
No provision. Exempts, for 12 months after the effective date of the
bill, rules adopted by DMC from the requirement that
certain state agencies repeal two regulatory
restrictions for every new one adopted and that
certain state agencies reduce their total number of
regulatory restrictions by 30% by 2025 (R.C. 121.95
and 121.951).
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As Passed by the Senate
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Current Law H.B. 86
(R.C. Chapter 3780) (As Passed by the Senate)
Allows any citizen to commence an action in the Requires DMC to adopt rules related to adult-use
Franklin County Court of Common Pleas to compel marijuana within nine months after the effective
the DCC to adopt rules related to adult-use date of the bill. Repeals the right to a cause of
cannabis, if it fails to do so within nine months action. (Section 4(B).)
after December 7, 2023 (R.C. 3780.28(A)).
No provision. Temporarily allows licensed retail dispensaries to
sell medical marijuana to any adult-use consumer,
upon presentation of valid identification
demonstrating the adult-use consumer is at least
21 years of age, beginning on the bill’s effective
date an ending within one year thereafter, as
specified by DMC rule (R.C. 3796.33(A)).
No provision. Provides that medical marijuana dispensed
pursuant to the temporary authorization is to be
treated as adult-use marijuana for the purposes of
the Marijuana Control Law, except that:
 The tetrahydrocannabinol (“THC”) and
possession limits for medical marijuana
apply;
 Administrative rules relative to medical
marijuana apply to the extent they do not
conflict with rules or code specific to
adult-use marijuana (R.C. 3796.33(B) and
(D)).
No provision. Specifies that medical marijuana dispensed under
the temporary authorization is not to be tracked in
the Ohio Automated Rx Reporting System
(“OARRS”) (R.C. 3796.33(C)).
Authorized forms
Authorizes the following forms of adult-use Same as current law (R.C. 3796.06(A) and (B)).
cannabis:
 Seeds;
 Live plants;
 Clones;
 Oils;
 Tinctures;
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As Passed by the Senate
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Current Law H.B. 86
(R.C. Chapter 3780) (As Passed by the Senate)
 Plant material;
 Edibles;
 Patches;
 Extracts;
 Drops;
 Lozenges;
 Smoking or combustible products;
 Vaporization products;
 Beverages;
 Pills;
 Capsules;
 Suppositories;
 Oral pouches;
 Oral strips;
 Oral and topical sprays;
 Salves;
 Lotions or similar cosmetic products;
 Inhalers (R.C. 3780.04(A).)
Allows any person to submit a petition to DCC Repeals the authority to submit a petition
requesting that an additional form or method of requesting an additional form or method of adult-
adult-use cannabis be approved. Requires DCC to use marijuana. Maintains similar authority under
determine whether or not to approve the petition continuing law for medical marijuana
within 60 days after receipt. (R.C. 3780.04(B) and (R.C. 3796.061, not in the bill; Section 3).
(C)).
No provision Prohibits adult-use marijuana from being
dispensed in a form that bears the likeness or
characteristics of a realistic or fictional human,
animal, or fruit (R.C. 3796.06(D)(2)).
THC limits
Requires DCC to adopt rules that set THC limits for Specifies that THC limits for adult-use marijuana
adult-use cannabis at no less than the following: are as follows:
 35% for plant material;  35% for plant material;
 90% for extracts.  50% for extracts.
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As Passed by the Senate
Office of Research and Drafting LSC Legislative Budget Office
Current Law H.B. 86
(R.C. Chapter 3780) (As Passed by the Senate)
Further specifies that the THC content of adult-use
marijuana, other than mari