Maryland Cannabis Licensing Update

Posted on September 12, 2023May 24, 2024 by James Malvesti

Maryland Cannabis Licensing Update

Good news for any businesses or people looking to apply in Maryland for an adult use cannabis license. The Maryland cannabis administration MCA will open up the social equity application formal on November 13th. Please note that social equity applicants will be able to apply for social equity approvals with the MCA.

In order to complete the social equity verification, the MCA has created a licensing portal where applicants can complete the forms without a fee. This portal is scheduled to open on September 8th and close on November 7th, so interested Social equity applicants should prepare the approval process now. Please follow this link to determine if you qualify for a social equity approval with the MCA. Here is a graphic from the MCA to assist you:

Once approved, the social equity applicant can submit the approvals as part of their application. Social equity applicants still must apply and be granted a place in the lottery for a retail license, but other types of licenses are not subject to the lottery.

For applicants other than retails, man the MCA has divided the state into the western region, southern region, central region, and eastern region. There are both standard and micro licenses available for the remaining social equity approved growers and processors. The MCA has identified the number of licenses for each available region. Please follow this link to see the identified jurisdictions and number of licenses available in each such jurisdiction.

Here is a timeline showing the planned rollout of MCA’s social equity applications.

If you have questions about the social equity application round, or subsequent rounds that are not social equity driven, kindly contact our law firm for the latest information on how to move your business forward.

Author

JUSTIN MORICONI

Building on almost 20 years in litigation, Justin’s practice specializes in regulated cannabis organizations consulting, formation, permitting, investment, expansion, and related ancillary legal services. Focusing on Cannabis law since 2016, Moriconi Flowers has successfully permitted applicants multi-state and on the Federal level. He is also co-owner of the first cannabis dispensary in Pennsylvania. Justin continues to return results in the face of adversity and against large firms for clients in all aspects of business and litigation. Justin and co-founder of Moriconi Flowers, Ted Flowers, regularly lecture on various topics on a local and national level in the commercial cannabis, security, insurance, and litigation space.

Why value-based care is on the rise in U.S.

Posted on June 21, 2023May 24, 2024 by James Malvesti

The healthcare revolution is evolving beyond discussions of universal healthcare or reforms to the Affordable Care Act. Central to this transformation is the shift from fee-for-service (FFS) models to value-based care. This article outlines what Value-Based Care entails and its distinction from the traditional FFS model.

Americans are more likely to die younger, and from avoidable causes, than residents of peer coutries.

Why value-based care is on the rise in U.S.

The Necessity of Value-based Care

Despite significant healthcare spending, both per capita and as a percentage of GDP, the United States lags behind other high-income nations in healthcare outcomes. Data from the Commonwealth Fund highlights critical issues: the U.S. has the lowest life expectancy at birth, the highest death rates from avoidable or treatable conditions, alarming maternal and infant mortality rates, and one of the highest suicide rates.

These challenges are compounded for minorities and individuals with lower incomes, who historically face barriers to accessing care and often experience worse health outcomes. Such disparities are partially attributed to the inherent flaws in the nation’s traditional FFS payment model, which often prioritizes quantity over quality of care.

Value-based care seeks to address these issues by aligning incentives with patient outcomes rather than the volume of services provided. Under this model, healthcare providers are rewarded for helping patients improve their health, reduce the incidence and impact of chronic disease, and live healthier lives in an evidence-based way. This approach not only focuses on treating illnesses but also emphasizes preventive care, resulting in better health outcomes and potentially lower healthcare costs.

The adoption of value-based care is driven by its potential to enhance patient care quality while controlling costs. By shifting the focus to patient outcomes, this model encourages healthcare providers to offer more coordinated, efficient, and effective care. This, in turn, could lead to a more sustainable healthcare system that better meets the needs of all Americans, particularly those who have been underserved by the traditional healthcare system.

Value-based Care Explained

Value-based care (VBC) is an approach where healthcare providers’ earnings are directly linked to patient outcomes. This model emphasizes the quality, equity, and cost-efficiency of care, shifting focus from the traditional volume-based services.

In VBC models, the emphasis is on delivering high-quality, cost-effective care while minimizing unnecessary service utilization. These programs aim to increase provider accountability for patient outcomes, using financial incentives and greater care flexibility to ensure optimal care delivery.

Value-based care is centered around four primary goals:

Better Outcomes: Ensuring improved health results for patients.
Lower Costs: Reducing healthcare expenses through efficient care delivery.
Improved Patient Experiences: Enhancing the overall patient journey within the healthcare system.
Better Clinical Experience: Fostering a more satisfying and effective environment for healthcare professionals.

Comparison with the Fee-for-Service Model

Contrastingly, the Fee-for-service (FFS) model compensates healthcare providers for each service performed, regardless of patient outcomes. This method often leads to an increased number of services provided, as reimbursement is tied to volume, not the quality of care. While this might increase healthcare costs, it does not necessarily translate to better patient outcomes.

In the value-based care framework, reimbursements are closely tied to the quality of care and patient outcomes. This approach incentivizes healthcare providers to prioritize patient health, connecting financial rewards to effective and efficient care delivery.

The adoption of value-based care models by Medicare and private insurers has prompted healthcare providers to adapt. This transition requires significant changes in how healthcare is provided, communicated, and monitored, focusing on the continuous improvement of patient health progress.

This shift toward value-based care represents a significant transformation in healthcare delivery, aligning financial incentives with the ultimate goal of achieving better health outcomes for patients.

VBP models are designed to encourage the delivery of high-quality, cost-effective care while reducing avoidable utilization of services.

Types of Value-based Care

In the evolving healthcare sector, the critical question remains: how will services be funded? Numerous complex answers exist, but value-based care offers pre-existing, adaptable payment solutions, allowing healthcare organizations to select or design an optimal model.

Value-based reimbursement prioritizes quality over quantity of services. There are four primary forms:

Performance-based Payments:

Beyond traditional Fee-For-Service (FFS) payments, providers receive additional compensation for achieving specific metrics or completing designated activities.

Bundled:

This approach consolidates services typically offered separately. Instead of individual payments for hospital, physician, and other services, a bundled plan incorporates these into a single payment for a specific condition, procedure, or service (e.g., a hospital stay). Providers save costs on certain care aspects and can retain these savings, promoting patient-customized care and cost-effective practices.

Shared Savings and Risk:

Both models use traditional FFS payments, but compensation hinges on meeting quality and spending benchmarks. Provider departments strive to reduce expenditures and adhere to budgets. Annually, spending is compared against a set target. Spending below the target allows providers to share the savings as bonuses. Conversely, exceeding the target incurs repayment penalties.

In shared savings, providers benefit from savings without risk. If spending is under the target, they share in the savings. In shared risk (downward risk model), providers are accountable for keeping spending within or below the target; excess costs are their responsibility. This model offers higher potential rewards but also increased risks.

Global Capitation:

Here, both short-term and long-term patients contribute to cost-sharing, with payments structured on a per-person, per-month basis. Providers receive a fixed payment to cover all care for individuals, regardless of the services used. This model aims to alleviate provider financial pressure while maintaining patient care quality.

No single healthcare reimbursement model is universally ideal. Each payer’s choice depends on their capabilities and objectives.

Various combinations of these methods exist alongside less common cost management techniques. Healthcare stakeholders encounter unique opportunities and challenges in implementing value-based healthcare reimbursement. Each system is customizable, enabling organizations to adapt these models to their strategic needs.

Fee-for-Service (FFS) Reimbursement Models: Characteristics and Challenges

Compensation Based on Quantity: FFS models primarily compensate healthcare providers based on the volume of services rendered. This approach often emphasizes quantity over quality, as providers are paid for each test, procedure, or visit, regardless of its necessity or outcome.

Lack of Outcome Consideration: In FFS models, the reimbursement amount is not linked to patient outcomes. Consequently, there is little direct financial incentive for providers to ensure the long-term effectiveness of treatment.

Potential for Unnecessary Procedures: Given that compensation is tied to the number of services provided, there’s a risk of unnecessary tests and treatments. This not only increases healthcare costs but may also expose patients to unnecessary risks, particularly when less invasive or less expensive options could be more effective.

These characteristics of FFS models have led to concerns about inefficiencies, escalating healthcare costs, and suboptimal patient outcomes.

Value-Based Care (VBC) Models: Focusing on Patient Outcomes

Linking Reimbursement to Outcomes: Unlike FFS, VBC models tie reimbursement to patient outcomes. Providers are incentivized to focus on delivering care that results in better health outcomes. This alignment of financial incentives with patient health can lead to more effective and efficient care.

Promoting Preventive and Holistic Care: VBC encourages a holistic approach to patient health, emphasizing preventive measures and the management of chronic conditions. This proactive stance aims to reduce the need for more intensive treatments and hospitalizations.

Encouraging Innovation in Care Delivery: Providers under VBC are motivated to innovate in healthcare delivery, exploring new methods and technologies that can improve patient outcomes and reduce costs. This includes the use of telehealth, personalized medicine, and integrated care models.

The Shift Toward Value-based Care

Implications for Healthcare

The ongoing shift from FFS to VBC is reshaping the healthcare sector. It promotes a more patient-centric approach, aligning financial incentives with the goal of achieving the best possible health outcomes. This transition supports the sustainability of healthcare systems by focusing on preventive care and reducing unnecessary procedures.

Challenges and Considerations

While the benefits of VBC are clear, the transition is complex. It requires significant changes in provider payment structures, patient data tracking, and overall healthcare management strategies. Providers must adapt to new metrics for success, focusing on long-term patient health rather than immediate revenue from services provided.

The evolution from Fee-for-Service to Value-Based Care marks a pivotal moment in healthcare, one that promises to reshape how care is delivered, measured, and valued. This transformation addresses the pressing need to improve healthcare outcomes, reduce disparities, and manage costs more effectively. By fostering an environment where quality and patient outcomes are paramount, Value-Based Care offers a path to a more equitable, efficient, and patient-centered healthcare system. The journey towards this new model is complex and requires a concerted effort from all stakeholders, but the potential benefits for patients, providers, and the broader healthcare system are immense.

As the healthcare landscape continues to evolve, staying informed and prepared for these changes is crucial. For those looking to navigate this transition with expertise and insight, Moriconi Flowers stands ready to guide and support. Our team of professionals brings a wealth of knowledge and experience in healthcare law and policy, offering tailored solutions to meet the unique challenges of this shifting terrain.

Connect with Moriconi Flowers today to explore how we can assist in optimizing your strategies for the Value-Based Care model. Let us help you align your practices with the future of healthcare, ensuring success and sustainability in this new era. Visit our website or contact us directly to start the conversation and take a proactive step towards embracing these transformative changes in healthcare.

Author

Neal Benjamin

Neal Benjamin is a licensed pharmacist and practicing attorney assisting long-term care, home health, and retail pharmacies in a variety of legal matters, including nonexclusively, operations, licensing, regulatory compliance, PBM[JM1] audits, and pharmacy sales and acquisitions. Neal’s practice is active in regulated cannabis, Drug Enforcement Administration (“DEA”) and healthcare regulatory compliance; cannabis and start-up business planning and permitting, as well as general corporate matters.

How to Get your New York Cannabis Business License

Posted on October 29, 2021May 24, 2024 by James Malvesti

In recent years, various states have legalized marijuana, with New York being a notable addition. The state’s significant move came when former Governor Andrew Cuomo signed the Marijuana Regulation and Taxation Act (MRTA) on March 31, 2021. This act positioned New York as the 16th state to legalize adult-use marijuana, marking the culmination of years of efforts. As of 2024, New York has made strides in developing what is projected to be a $4.2 billion industry, potentially one of the largest marijuana markets in the United States.

The primary objectives of the MRTA include:

Establishing the Office of Cannabis Management to oversee the comprehensive regulation of medical, adult-use, and cannabinoid hemp.
Creating a regulated and taxed cannabis economy within the state.
Initiating various social and economic justice programs related to the cannabis industry.

To start a cannabis business in New York, interested parties must comply with the regulations set by the new law and obtain the necessary license. This opens up numerous business opportunities for residents keen on participating in this expanding industry.

New York Medical Marijuana Program

In July 2014, Governor Andrew Cuomo enacted the Compassionate Care Act, initiating a detailed and secure medical marijuana program in New York. This legislation authorized medical marijuana use for treating specific conditions such as cancer, HIV/AIDS, ALS, Parkinson’s disease, and multiple sclerosis.

From 2016 to 2018, the program expanded to include chronic pain, PTSD, and opiate addiction therapy. The Department of Health’s website lists all eligible conditions.

New York Medical Cannabis Business Opportunities

The Marihuana Regulation and Taxation Act (MRTA) aims to further develop the Medical Marijuana Program. Currently, existing regulations and operations are maintained while the Office of Cannabis Regulation formulates necessary regulatory structures. Information about current medical marijuana program applications is available on their website.

The MRTA mandates the Cannabis Control Board to register new organizations, which may operate up to eight dispensaries, prioritizing the first two in underserved areas. New registrations are evaluated with an emphasis on diversity in race, ethnicity, and gender.

Additionally, the MRTA introduces a cannabis research license, enabling the production, processing, purchase, or possession of cannabis for research. This cannabis can only be sold to other research licensees.

The timeline for cannabis research license applications is pending. Prospective applicants must provide a detailed research plan and specify the quantity of cannabis required. Applications are assessed based on project quality, design, impact, the applicant’s capability to conduct the research, and whether the cannabis amount aligns with the project’s scale and goals.

For up-to-date information on cannabis business opportunities, including licensing and application procedures, visit the Office of Cannabis Regulation’s website.

Recreational Marijuana Legalization

Former Governor Andrew Cuomo signed the Marihuana Regulation and Taxation Act (MRTA) into law on March 31, 2021, legalizing recreational cannabis for adults aged 21 and older in New York. This groundbreaking legislation established a licensing system for various cannabis businesses, including growers, manufacturers, distributors, retailers, and cooperatives.

The MRTA led to the creation of the Office of Cannabis Management (OCM), governed by the Cannabis Control Board. This body is responsible for overseeing the implementation of the law, regulating the cannabis market, issuing licenses, and developing comprehensive regulations for business participation in the burgeoning industry. Beyond regulating the adult-use cannabis market, the OCM also oversees the state’s medical marijuana and hemp programs.

Following Andrew Cuomo’s resignation on August 10, 2021, Kathy Hochul became New York’s first female governor. Her ascension has been positive for the state’s adult-use cannabis industry. Governor Hochul has expressed her commitment to prioritizing the launch of the state’s marijuana sales program during her tenure.

As of 2024, New York’s recreational marijuana market has seen significant advancements. The OCM has successfully issued numerous licenses across various categories, enabling a diverse and thriving cannabis industry. Retail dispensaries have opened in multiple locations, offering a range of products to consumers. The regulatory framework established by the OCM ensures safe and responsible access to cannabis, with strict quality control and compliance standards.

Governor Hochul’s administration continues to focus on enhancing the industry, with particular attention to social equity programs. These initiatives aim to provide opportunities for communities disproportionately affected by previous marijuana laws. The state’s revenue from cannabis sales is being strategically reinvested in health, education, and community development programs.

Furthermore, the integration of the recreational market with the existing medical marijuana and hemp programs has created a comprehensive cannabis ecosystem in New York. This integration benefits consumers and businesses alike, offering a model for other states considering legalization.

The OCM’s commitment to adapting regulations in response to industry trends and consumer needs has positioned New York as a leading state in the responsible management of a legal cannabis market.

Important Local and Municipality Details For Cannabis Businesses

For individuals planning to establish a cannabis business or dispensary, understanding local and municipal regulations is essential. These regulations can vary significantly across different regions and can have a profound impact on the feasibility and operations of cannabis-related businesses.

Understanding Local Regulations

Each state in the U.S. has its own set of laws regarding the operation of cannabis businesses. However, it’s not just state laws that prospective cannabis business owners need to be aware of. Local jurisdictions, such as counties, towns, and cities, often have the authority to set their own rules regarding the operation of these businesses. This means that even if cannabis businesses are legal at the state level, they may not be permitted in certain local jurisdictions.

The New York Context

In New York, for example, the situation is particularly nuanced. Towns, cities, and villages within the state have the option to opt out of allowing the sale and on-site consumption of recreational marijuana at retail dispensaries. By 2024, several towns and cities might have already made their decisions regarding this matter. For instance, as of previous years, areas like Eastchester, Gerry, Somers, Chautauqua, and Cassadaga had opted out. The deadline for these localities to make their decision was initially set at December 31, and once this deadline passed, municipalities that opted out could no longer reverse their decision. However, they retained the option to opt back in at a later date.

Checking Local Compliance

Before proceeding with setting up a cannabis business, it’s crucial to check the current status of cannabis regulations in the intended location. Local government websites often provide up-to-date information on their stance towards cannabis businesses. In some cases, public hearings or community meetings are held to discuss potential changes in policy, providing an opportunity for business owners to stay informed and even participate in the decision-making process.

Importance of Compliance

Compliance with local regulations is not just a matter of legality; it can also affect various aspects of business operations. This includes zoning laws, which determine where a cannabis business can physically operate, as well as local taxes and business license requirements. Non-compliance can lead to legal challenges, fines, or the revocation of business licenses, thus underscoring the importance of thorough research and adherence to local laws.

Types of New York Recreational Cannabis Business Licenses

The information provided below outlines the eleven types of adult-use cannabis licenses available, as well as the ownership restrictions imposed by the MRTA.

Adult-use Cultivator

This license permits the acquisition, possession, cultivation, and distribution of cannabis. Holders can sell cannabis to licensed processors but are restricted to owning just one cultivator license and are barred from holding a cannabis retail license.

Adult-use Nursery

A nursery license enables the legal production, sale, and distribution of clones, immature plants, seeds, and related agricultural products. These are used for cannabis cultivation by licensed cultivators, cooperatives, microbusinesses, or registered organizations. An adult-use cultivator can also hold one nursery license.

Adult-use Processor

Holders of a processor license are authorized to acquire, possess, process, and sell cannabis from licensed cultivators to distributors. Ownership is limited to one processor license per individual. Processors can also obtain a distributor license solely for distributing their own products but are prohibited from owning a cannabis retail license.

Adult-use Distributor

This license allows for the acquisition, possession, distribution, and sale of cannabis from licensed processors, cooperatives, microbusinesses, or registered organizations to licensed retail dispensaries and on-site consumption sites. A single distributor license is allowed per person, with no allowance for owning a cannabis retail license.

Adult-use Cooperative

A cooperative license permits the acquisition, possession, cultivation, processing, and sale of cannabis from licensed premises to licensed distributors and retail dispensaries. Each person is limited to one cooperative license, and cooperatives cannot own a cannabis retail license.

Adult-use Microbusiness

Microbusiness license holders can cultivate, process, distribute, deliver, and sell cannabis on a small scale. An individual is limited to one microbusiness license and cannot own any other type of adult-use cannabis license.

Adult-use Retail Dispensary

This license allows for the acquisition, possession, sale, and delivery of cannabis from a retail dispensary. A maximum of three retail licenses is allowed per person. Retail licensees cannot own licenses in cultivation, processing, or distribution.

Adult-use On-site Consumption

Holders of this license can acquire, possess, and sell cannabis for consumption on-site. Each person can hold up to three on-site consumption licenses but cannot own licenses in cultivation, processing, or distribution.

Adult-use Delivery

A delivery license authorizes the delivery of cannabis and related products to consumers. An individual is limited to one delivery license and is prohibited from owning any other type of adult-use license.

Registered Organization Adult-use Cultivator Processor Distributor Retail Dispensary

This license permits a registered organization to operate with the same privileges as adult-use cultivator, processor, distributor, and retail dispensary licensees. However, a registered organization cannot own or hold any other type of adult-use license.

Registered Organization Adult-use Cultivator Processor Distributor

This license allows a registered organization to function as an adult-use cultivator, processor, and distributor. A registered organization is restricted from holding any other adult-use license types.

How many New York cannabis licenses will be available?

As of 2024, the specific number of licenses for recreational marijuana businesses in New York has been determined. Importantly, 50% of these licenses are reserved for social and economic equity applicants, including individuals from cannabis-prohibition-impacted communities, minority- and women-owned businesses, disabled veterans, and distressed farmers. Financial support through grants, loans, and incubator programs is provided to eligible individuals to help establish their businesses.

New York Cannabis Business License Cost

The fees for New York cannabis business license applications have been established by the Office of Cannabis Management. The application fee is non-refundable, and a license fee, which varies based on license type, product volume, and other factors, is charged every two years.

When did recreational sales begin in New York?

The commencement of recreational cannabis sales in New York began in 2022, following the finalization of rules and the establishment of a licensing application process by the Office of Cannabis Management (OCM). Various license types are now open for application.

As the New York cannabis industry continues to evolve, we provide regular updates and professional insights. To receive the latest information and insights on cannabis business opportunities in New York and other states, subscribe to our newsletter.

Navigating the cannabis business landscape in New York and beyond can be complex. Moriconi Flowers is at the forefront, offering expert legal advice and industry insights to help you succeed. Whether you’re applying for a license, seeking regulatory compliance, or exploring business expansion, our team is equipped to guide you through every step. Don’t miss out on crucial updates and strategic advice. Join our community of informed professionals today.

Are you looking for cannabis license updates on New York and other state opportunities? Subscribe below to our newsletter to get the latest information and valuable insights on cannabis business opportunities.

Authors

JUSTIN MORICONI

TED FLOWERS

A 1997 graduate of Temple Law School, Ted’s experience in liquor licensing matters, representing hotels, bars, restaurants, distillers, and distributors through all stages of the licensing and regulatory process, made a natural transition to cannabis law practice in 2016. Focusing on Cannabis law since 2016, Moriconi Flowers has successfully permitted applicants multi-state and on the Federal level. He is also co-owner of the first cannabis dispensary in Pennsylvania. Ted and co-founder of Moriconi Flowers, Justin Moriconi, regularly lecture on various topics on a local and national level in the commercial cannabis, security, insurance, and litigation space.

How To Get Your Ohio Cannabis Business License

Posted on September 6, 2021May 24, 2024 by James Malvesti

Are you wondering how to get your Ohio cannabis business license? This page is dedicated to up-to-date information on this topic, and as license-winning attorneys in this state, we will provide you insights you won’t get anywhere else.

Due to demand from Ohio residents, the Ohio Board of Pharmacy has voted to increase the number of dispensary licenses awarded in the state from 57 to 130 on April 19, 2021. This is a huge step forward for patients and caregivers who have been waiting patiently for this day ever since the first dispensary in the state opened its doors in 2019.

Moreover, two Democratic lawmakers in Ohio — Democratic state representatives Casey Weinstein of Hudson and Terrence Upchurch of Cleveland — introduced a bill that aims to make recreational marijuana legal. House Bill 382 aims to decriminalize, tax, and allow the commerce and licensing of recreational cannabis. If passed, the bill would allow Ohio residents to buy and use marijuana and grow up to 12 plants. The bill also would create a commission to study the impact of legalizing marijuana. As these plans develop we will update this information.

However, not all of the efforts to further marijuana legalization in Ohio have been successful. Just this August, a group called Coalition to Regulate Marijuana Like Alcohol (CRMLA) submitted a ballot proposal that aims to have a summary of their proposed law placed on the 2022 ballot. The group’s proposed law aims to allow adults aged 21 and older to grow, possess, and purchase marijuana. Unfortunately for CRMLA, Attorney General Dave Yost has rejected the ballot proposal on grounds of the ballot language summary not meeting the legal standards for approval. According to the Attorney General, there were at least 7 areas where the summary failed to accurately describe the proposed law.

Benefits of marijuana legalization in Ohio

The legalization of recreational cannabis in the state of Ohio is expected to result in economic growth according to the executive director of the Drug Enforcement and Policy Center at The Ohio State University, Douglas Berman. The new markets that will surface after legalization will pave the way for more dispensaries in the major cities, driving job creation and an uptick in local economies. Proponents of the bill are also eyeing the increased tax revenue that will result from the sales.

According to the Marijuana Business Factbook, the sales of medical cannabis in Ohio will reach between $350-$425 million this year. For comparison, last year’s sales hit $221.5 million. Furthermore, they are projecting a revenue of up to half-billion dollars by 2022 or 2023. At present time, there are 202,666 registered patients in the state — that is twice the number of registered individuals from a year ago.

In addition to re-energizing the economy and supplementing tax revenue, Rep. Upchurch also stressed that House Bill 382 is also about healthcare for Ohioans and that it’s time for the state to become a leader in cannabis decriminalization and legalization.

Current cannabis laws and restrictions in Ohio

Before you begin doubling down on your efforts to secure any kind of cannabis license in Ohio, the first thing you must understand are the existing laws and restrictions governing the use of medical marijuana in the state.

In 2016, Governor John Kasich signed House Bill 523, or the Ohio Medical Marijuana Control Program, into law. This made Ohio the 25th state to have a functional medical marijuana law.

According to HB 523, only patients who are formally diagnosed with any of the qualifying medical conditions and have received a recommendation from a state-approved physician can participate in the medical marijuana program. In addition to the qualifying conditions stated in the summary, the medical board of the state may add other diseases as it sees fit.

As of July 2021, there are 202,666 medical marijuana patients registered in Ohio. 14,039 of this number are veterans, 15,550 are indigents, and 866 are patients with terminal conditions.

Also in House Bill 523, municipalities are afforded the right to set their own prohibitions or limitations regarding the sales of medical marijuana. Currently, there is quite a list of towns in Ohio that have either a 6, 12, or 18-month moratorium or a total ban on medical marijuana in place. You can see the full list here which is updated periodically.

Decriminalization is also not uniform across the state. Currently, there are only 18 towns and cities that have decriminalized the possession of medical marijuana up to a certain limit (which also varies from city to city). These places are Athens, Bellaire, Bremen, Cincinnati, Cleveland, Columbus, Dayton, Fremont, Logan, Nelsonville, Newark, Northwood, Norwood, Oregon, Roseville, Toledo, Windham, and Yellow Springs.

Medical Marijuana Cultivator Licenses

The state of Ohio allows a certain number of marijuana cultivators and medical marijuana dispensaries. Only cultivators and dispensaries with a certificate of operations can begin their participation in the program.

A cultivator or grower is defined as a person or entity that cultivates or grows the marijuana plant that will be later subject to processing. There are currently two types of cultivator licenses awarded in the state: Level I and Level II.

Level I cultivators are allowed to operate within an area of up 25,000 square feet initially. Meanwhile, Level II marijuana cultivators can grow the plant only within 3,000 square feet of space. All the licensees can apply for an expansion down the road. As of 2021, 34 cultivation licenses have been awarded in Ohio.

Cultivator licenses can cost between $20,000 to $200,000 subject to renewal annually. The application for cultivator licenses is currently closed.

Medical Marijuana Dispensary License

A marijuana dispensary is where qualified patients can purchase their medical marijuana. Keep in mind that patients are allowed to obtain only up to 90 days’ worth of supply and dispensaries are responsible for making the correct calculations.

A request for application marks the beginning of the application process, followed by the submission of the requirements including the fees. The cost of a marijuana dispensary license in Ohio begins at $75,000. That’s $5,000 for the application fee and $70,000 for the certificate of operations. In addition, the cost can go up depending on how many associated key and key employees are involved in your dispensary.

Persons, partnerships, LLCs, corporations, cooperatives, and joint ventures can apply for a dispensary license. However, although the number of dispensary licenses was increased this year, the Board of Pharmacy has stopped accepting applications for licensed dispensaries.

What’s next for the legalization of recreational cannabis in Ohio?

Now that House Bill 382 has been formally introduced, the next step is to have it referred to a House committee. The House committee will then wait for a majority vote before taking further legislative action.

On the other hand, the Coalition to Regulate Marijuana Like Alcohol, whose petition was rejected by the AG, has resubmitted their petition. If approved, the petition will end up on the 2022 ballot and if they gather more than 132,000 signatures from at least 44 of Ohio’s 88 counties, then the Ohio legislature will have to study the proposal and decide whether to approve the law or not.

If you’re looking to get updates on opportunities in the state of Ohio or other states, join our mailing list for updates and insights as this exciting industry grows.

Are you looking for cannabis license updates on Ohio and other state opportunities? Subscribe below to our newsletter to get the latest information and valuable insights on cannabis business opportunities.

Authors

JUSTIN MORICONI

TED FLOWERS

PHONE: (215) 277-1410

LOCATION

HISTORIC CHESTNUT HILL

40 West Evergreen Avenue, Suite 104

Philadelphia, PA 19118

Author: James Malvesti