Last week, the Ohio Division of Cannabis Control (DCC) removed state fees for medical marijuana (MMJ) cards and announced rules for the Cannabis Social Equity and Jobs Program. Read on to learn about when changes will take place and how stakeholders can comment.
Ohio MMJ Registration/Renewal Reduced to 0.01 Cent
The Ohio Division of Cannabis Control (DCC) last week announced they will remove the state fees for registration and renewal of MMJ cards. Currently, cards are $50 for patients and $25 for caregivers and veterans. As Ohio prepares to implement a voter-approved adult-use legalization law, the DCC issued a proposal then a notice that effective March 4, the annual fees will drop to one cent. Once regulators can update their systems, the fee will be removed completely. Cardholders will still need to see an Ohio-licensed MMJ physician to verify their qualifying condition and make a recommendation to the state.
The odd rule change was addressed in a notice sent on Tuesday: “The DCC understands that a one cent charge is not ideal, however, at this time the Division feels it is appropriate and necessary to provide this immediate financial relief for patients and caregivers in the short term while working toward a full fee elimination as soon as the updates to the registry can be made.”
The DCC also proposed reducing the processor license renewal fee from $100,000 to $50,000.
DCC Proposes Rules for Cannabis Social Equity and Jobs Program, Current/New Licensees
The DCC announced March 1st they are submitting the following proposed rules to the Common Sense Initiative. They are seeking public comment by Wednesday, March 13, 2024.
OAC 1301:18-2-03 CANNABIS SOCIAL EQUITY AND JOBS PROGRAM (New)
- In coordination with the Cannabis Social Equity & Jobs Program (CSEJ) to be established by the Ohio Department of Development (Development), the Division of Cannabis Control will provide notice in advance of the application period for which preference will be given to participants in the program.
- Non-medical cannabis license applications receiving preference under the CSEJ program cannot be made available until the CSEJ program is operational through Development.
OAC 1301:18-2-04 ADDITIONAL CANNABIS OPERATOR LICENSES (New)
- Pursuant to O.R.C. 3780.10, the Division will review the number of cannabis operator licenses 24 months after the first issuance of an adult use operator license, and on a biannual basis thereafter. The Division may authorize additional application periods.
OAC 1301:18-2-06 “10(B)” DISPENSARIES (New)
- Pursuant to O.R.C. 3780.10(B), the following licenses (i.e., “10(B)” dispensary licenses) must be issued:
- For a Level I medical marijuana cultivator with a certificate of operation or provisional license: 3 dispensary licenses per entity at locations designated in a license application.
- For a Level II medical marijuana cultivator with a certificate of operation or provisional license: 1 dispensary license per entity at a location designated in a license application.
- For a medical marijuana dispensary with a certificate of operation or provisional license, which does not have any common ownership or control with any cultivator or processor: 1 dispensary license per entity at a location designated in a license application.
- To meet the application and timeframe requirements set in statute, the Division proposes the process prescribed in the rules.
- Please review the Business Impact Analysis for more information.
The Business Impact Analysis and full text of the proposed rules can be found here.
Stakeholders may submit comments to DCCRules@com.ohio.gov and CSIPublicComments@governor.ohio.gov by 5:00pm on Wednesday, March 13, 2024.
The Division will review and consider the comments received prior to submitting the proposed rules to the Joint Committee on Agency Rule Review in accordance with Chapter 119 of the Ohio Revised Code.
When will Adult-Use Dispensaries Get Licenses?
The DCC must provide and publish all application materials no later than June 7, 2024. The DCC says this does not mean that applications will be due by this date. The first entities authorized to file an application for adult-use dispensaries will be cultivators, processors, testing laboratories, and dispensaries currently licensed to operate under the medical marijuana program.
According to guidance published by the DCC, the first provisional licenses will be issued by September 7, 2024. The DCC expects to issue up to 50 dispensary licenses. The DCC will also issue Level III cultivator licenses; however, this round of Regulations does not apply to those licenses or that application process. Only a cultivator, processor, testing lab, or dispensary currently licensed as a medical marijuana facility may apply to convert its license to a dual-use (i.e., both adult-use and medical-use) license.
Current medical marijuana licensees would be eligible to obtain 10(B) dispensary licenses, defined as a “dispensary license issued pursuant to section 3780.10(B) of the Revised Code and [the Regulations].” Section 10(B) requires that the DCC issue licenses to applicants who had a current certificate of operation or medical provisional license issued at the time the statute went into effect (December 7, 2023). Therefore, those licenses are supposed to be issued no later than September 7, 2024. However, that can change if rules are amended from proposal to being issued, plus there may be legislative interference that could change this deadline.
Ohio 10(B) Licenses
Based on the guidance issued last week (above), Ohio’s 10(B) licenses for current medical marijuana licensees will be allocated as follows:
- For a Level I medical marijuana cultivator with a certificate of operation or provisional license: three (3) dispensary licenses per entity at locations designated in a license application.
- For a Level II medical marijuana cultivator with a certificate of operation or provisional license: one (1) dispensary license per entity at a location designated in a license application.
- For a medical marijuana dispensary with a certificate of operation or provisional license, which does not have any common ownership or control with any cultivator or processor: one (1) dispensary license per entity at a location designated in a license application.
The DCC will publish 10(B) application materials here. Reference and further explanation at https://www.jdsupra.com/legalnews/ohio-marijuana-license-application-4576865/.
Follow MedicateOH for the latest updates about the Ohio medical marijuana program, adult-use program and cannabis as medicine.
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