Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Wednesday, October 4, 2017

"Out-of-state companies making a run for Ohio’s medical marijuana licenses"

Medical-marijuana-ohioThe title of this post is the headline of this notable new Marijuana Business Daily article that might be of special interest to my Ohio-based students and really to anyone thinking about how the laboratories of democracy in the marijuana reform space still have inter-state elements despite the persistence of national prohibition. Here are excerpts from the article:

Out-of-state medical cannabis companies are jumping into the nascent Ohio market because the state lacks a residency requirement for business owners. While a majority of the applicants are listed as Ohio-based companies, at least a dozen either have an out-of-state business address or are connected to companies based elsewhere.

That’s according to the business information of 185 applications for 24 available cultivation licenses recently released by the Ohio Medical Marijuana Control Program....

Regulators decided against a residency requirement when they drafted the law. Tom Haren, a Cleveland cannabis attorney, said the state went back and forth on the residency issue. “This was the subject of a lot of debate as the rulemaking process moved forward,” he said. “Ultimately what the regulators decided was to err on the side of experience operating in other regulated markets.”...

 While there isn’t a strict residency provision, regulators scoring applications can take into account whether a company’s principal place of business is in Ohio. “What we’ve seen is a lot of the out-of-state investment was done in partnership with Ohio residents,” Haren said.  According to Haren, a majority of applicants were Ohio citizens who partnered with out-of-state groups to help strengthen the experience section of their applications. “It’s hard to have experience in a market that’s been illegal here for the last 70 years,” he added.

Business laws and regulatory issues, Medical Marijuana State Laws and Reforms | Permalink


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