Ohio voters rejected a ballot initiative Tuesday that would have legalized marijuana in the state, and one of the groups that couldn't be happier is the association representing the cannabis industry.

National Cannabis Industry Association was among the groups that welcomed news that the ballot initiative went up in smoke. Why did an association that advocates for legalized marijuana oppose a proposed law that would do just that? Because of the way the proposed law was structured.

Issue 3 would have amended Ohio's constitution to allow marijuana to be cultivated, but only on 10 farms owned by the investors who financed the campaign behind the ballot initiative. The proposed law also would have allowed Ohio stores to sell marijuana only from those 10 farms, giving the investors a monopoly on the market, critics alleged.

Colorado and Washington state have both legalized marijuana, but neither state placed the restrictions on the cultivation and sale of the drug that Issue 3 proposed. In a statement, NCIA Executive Director Aaron Smith said the Ohio initiative was the wrong way to go about legalization.

"The people of Ohio have understandably rejected a deeply flawed, monopolistic approach to marijuana reform that failed to garner broad support from advocates or industry leaders," Smith said.

Smith saw a silver lining in the controversy. He said he believes the debate surrounding Issue 3 has shown there is a strong base of support for legalizing, taxing and regulating marijuana.

"Now the foundation has been laid for a potential 2016 effort that would put forward a more common-sense initiative and have a major impact on the presidential conversation in the process," he said.

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