Cleveland is preparing to tamp down on smoke shops that sell products that are derived from cannabis or are similar, such as CBD, delta-8 and kratom.
While the shops may advertise themselves as “dispensaries,” they are not licensed by the state to sell adult-use cannabis, Cleveland officials told City Council on Monday. Instead — because their products don’t meet the definition of cannabis under state law — they fly under the radar of the state regulations set up after Ohio voters legalized recreational marijuana in 2023.
Mayor Justin Bibb’s administration and City Council are considering new zoning laws for smoke shops. City leaders are also weighing licensing rules for all retailers of tobacco or nicotine products, whether or not they sell cannabis derivatives.
The zoning changes are aimed at businesses devoted to products containing lesser amounts of THC, the active ingredient in cannabis. Kratom, another product mentioned in the legislation, derives not from cannabis but from a tree known as Mitragyna speciosa.
There are only seven state-licensed cannabis dispensaries in Cleveland. But the city’s zoning administrator said Monday that she estimated there could be as many as 400 smoke shops that sell tobacco, vapes or a variety of cannabis derivatives.
At a health committee meeting, Ward 7 Council Member Stephanie Howse-Jones voiced her suspicion that some stores were selling full-on cannabis despite not being licensed to do so.
“Many of us know that there are illegal cannabis shops operating in our communities with zero enforcement,” she said.
Stemming the tide of new smoke shops
The new zoning rules could effectively prevent more smoke shops from popping up in the city. The proposed law would ban shops from opening within two miles of existing stores or within 500 feet of such places as libraries, parks, churches or schools.
The law would define a “smoke shop” as a store that devotes at least 20% of its space to tobacco products, CBD, kratom, goods derived from hemp or synthetic cannabis compounds.
Given the shops’ expansion — more than 70 have applied for business occupancy permits with the city this year — there may not be much space left for new ones to open under the proposed rules, Ward 13’s Kris Harsh said.
“The two-mile radius pretty much locks down the whole City of Cleveland,” he said.
Another proposed law would require all tobacco retailers to obtain licenses from the city. The city health department would inspect retailers twice a year and have the power to shut down stores that sell without a license, fail to pay fines or distribute marijuana. Cleveland is proposing to update its tobacco sales laws to reflect the new state smoking age of 21.
A license likely would cost between $300 and $500, Health Director David Margolius said. Fines — for instance, for selling to buyers under the age of 21 — would range from $500 to $1,000.
The city would also prevent businesses from covering more than 25% of their window space with advertising, preventing viewers on the street from seeing what is happening inside.
How far to go with smoke shop regulations
Council members urged the administration to go even further — for instance, by raising the cost of a license or limiting the total number of licenses available. Another sticking point was the city’s plan to apply the zoning rules only to future smoke shops, essentially grandfathering in current stores.
The slate of legislation reflected Cleveland’s effort to catch up with a growing retail business in which marketing language doesn’t necessarily line up with regulatory definitions. The presentation to council included photos of smoke shop advertising that used such words as “dispensary” and “weed.”
“I’ve received a few applications now calling smoke shops ‘candy shops,’” said Shannan Leonard, the city’s chief zoning administrator.
