Medical Marijuana in Ohio: Where are we now?

By: Brendon Friesen

More than a year has passed since Governor Kasich signed House Bill 523, legalizing medical marijuana (MMJ) in Ohio and making our state the 25th to adopt such a program. At the time, those interested in getting involved — as a cultivator, processor, dispensary, or physician — had little information on exactly what the program would look like from a practical and economic standpoint.

Rules and regulations are now being created by the Medical Marijuana Control Program (MMCP), part of the Ohio Department of Commerce that regulates Ohio’s MMJ program.

Over the past year, the MMCP developed rules for the program, but not without overhauling them several times – often in response to public comment and hearings held in Columbus, Ohio. Based on these rules, here are some “must knows” for anyone thinking about starting MMJ operations:

Cultivators

Cultivators grow cannabis for later production into medicine. There are two levels of cultivators: Level 1 may grow from 25,000 to 75,000 square feet of cannabis; Level 2 may grow from 3,000 to 9,000 square feet of cannabis. The MMCP received a total of 185 applications: 109 (Level 1) and 76 (Level 2). Cultivators also have the difficult task of selecting a growing space that qualifies under the rules: 1.) Cannot be closer than 500 feet to any school, public park, library, and other facilities; 2.) Has the blessing of the municipality, which is permitted to opt-out of the program.

Cultivators are the first group to receive a final set of rules and the application for submission to the MMCP. Applications were due in June, 2017. Cultivators will not know whether they are granted a license until November, 2017, and they are required to begin cultivation within nine months of obtaining a license.

Processors

Processors extract oils from the plant material that have a medicinal effect on the patient. The extracted oils — Tetrahydrocannabinol (THC) and Cannabidiol (CBD) — can be placed into a variety of consumer productions such as vape cartridges, transdermal patches, edibles, capsules, topical ointments and tinctures, which are used to treat the symptoms of many diseases and conditions.

Processors received a final set of regulations in August, which were effective September 8, 2017. Applications will be due later this fall.

Dispensaries

Unlike cultivators and processors, dispensary licenses will be divided up among the various regions created by the MMCP. For example, Cuyahoga County will have up to five dispensaries. Dispensary rules were also finalized in August and made effective September 8, 2017. Applications are due November 17, 2017.

Among other requirements, physicians must obtain a certification from the Ohio Medical Board in order to recommend (not prescribe) MMJ to patients that suffer from one or more of the 24 qualifying diseases and conditions.

Until patients can receive legal recommendations from their physicians under the Ohio program, criminal charges for possession of the drug is subject to the affirmative defense granted to patients by House Bill 523.

Looking forward

There is still a lot of work for the MMCP to meet its September 8, 2018 deadline. Cultivators have to build-out their facilities and get plants under lights and harvested. Then the processing and dispensing can begin. It is going to be tight – particularly with licenses for facilities to do the required testing of the cannabis products not coming available until July of 2018. We will continue to keep you apprised as the program develops. In the meantime, please contact me at (216) 453-5906 with questions.

Helpful links:

-Click here to read Mansour Gavin’s June 2016 Article on MMJ in Ohio, “Canna-business.”

-To be directed to the official medical marijuana website for the State of Ohio click here.

Edward Patton will present at the City of Mentor’s upcoming seminar: “How to Develop an Export Operations and Compliance Manual” on Friday, September 22, at the Holden University Center of Lakeland Community College in Kirtland. Patton’s talk titled, “Introduction to Export Controls,” is an overview on policies and procedures for developing a manual to mitigate export compliance risks. The seminar is tailored for compliance officers, business development executives, and managers and associates in sales, customer service, and shipping. Edward is a member of our Corporate and Business Services and General Civil Litigation practice groups. With extensive knowledge and experience about corporate compliance programs, Patton will share insightful, practical strategies. To Find out more about the seminar and to register click here.

Julie A. (Fischer) Taft participated in a luncheon discussion geared towards women who want to better understand the ins and outs of family estate planning. The event, “The Ws of Estate Planning: Why? What? When? . . . (and How?),” was put on by Dale Vernon at Bernstein, an investment research and management firm. The discussion focused on estate planning, including wills, trusts, and powers of attorney. Julie, an attorney in our Estate Planning and Probate, and Corporate and Business Services practice groups, was asked to participate because of her extensive experience with trusts and estates in all areas of wealth management and estate planning for high net worth individuals and their families. The event was held on September 13, 2017 at The Kirtland Country Club in Willoughby.

James A. Budzik will be a member of the speaking faculty at the National Business Institute’s Advanced Employment Law seminar on August 21 at the Hilton Garden Inn in Akron. His topics of discussion are “Conducting an Effective Internal Investigation” and “Deciphering FMLA, ADA, and Workers’ Compensation Issues.” The seminar, offering legal guidance for complying with employment laws and avoiding lawsuits, is targeted to attorneys; human resource managers; and company presidents, vice presidents, and CFOs. Jim is one of five faculty members.  Please click here for more information.

 

Mansour Gavin is pleased to recognize Julie A. (Fischer) Taft for her recent appointments to the boards of two local organizations. Julie will serve as vice president for the Estate Planning Council of Cleveland as well as the chair of the Cleveland Metropolitan Bar Association’s Estate Planning, Probate and Trust Law Section. Julie is an attorney in the Estate Planning and Probate and Corporate and Business Services practice areas.

Cyber security and Ransomware are on the minds of many area companies these days. Find out how to protect your business and what to do in the event of a breach.

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When:          Friday, August 11, 2017, 8:30 a.m. – 11:30 a.m.

Location:      North Point Tower, Lower Level, Executive Conference Room, Cleveland, OH

AGENDA

8:30 a.m.   Registration, Networking and Continental Breakfast

9:00 a.m.   Update from Cleveland FBI

10:00 a.m.   Panel discussion featuring Michael McCartney from the computer network industry, John FitzGerald from the insurance industry and Attorney Edward Patton from Mansour Gavin’s Corporate and Business Services Group

11:00 a.m.   Q&A/Conclusion

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Anyone concerned with what companies need to watch for in order to protect their information systems should attend. We look forward to seeing you there!

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Register: By Friday August 4, 2017 by contacting Diane Barna at dbarna@mggmlpa.com or 216-523-1500. There is no fee to attend this program.

Parking: Parking at the North Point Garage (entrance on E. 9^th Street) will be validated. Please bring your ticket to the program.

If you have further questions, please contact Miles Welo in our Corporate and Business Services and Estate Planning and Probate Group.

 Brendon Friesen will be a member of the speaking faculty at the National Business Institute’s Manufacturing Law seminar on June 26 at the CMBA Conference Center. The day-long seminar will address the complex legalities of the manufacturing law industry, serving as a comprehensive legal, practical, and tax compliance guide for attorneys, accountants, manufacturing owners/operators/managers, and paralegals. Friesen was asked to participate because of his extensive knowledge of and experience with the complexities of intellectual property and will address patents, trade secrets, trademarks and copyrights, international registrations/disputes, licensing, and more. Please click here for more information.

Mansour Gavin LPA celebrated National Ugly Christmas Sweater Day on Friday, December 16th with what else – an ugly Christmas sweater contest, of course!  From glitter to lights to sequins, our finest holiday apparel was on display.  While all participants looked fantastic, we crowned our billing department supervisor, Ann Frederick, as the winner.  A second place tie was awarded to paralegal Michele Kerling and billing department clerk Bojana Bebic.  Thanks to everyone who joined in on the fun, and we hope your holidays are just as festive as our sweaters!