State Overview: Ohio

To date, in Ohio’s Medical Marijuana Control Program, only 10 of the 19 Level 1 cultivator permittees, 10 of the 14 Level II cultivators and 19 of the 45 processor permittees have been deemed operational. Of the 57 dispensary permittees, 51 have been deemed operational and there are three laboratories that have received operational status. But Ohio still has approximately 110,000 patients and 12,000 caregivers who have purchased $142.7 million in medical marijuana products.

Ohio’s medical marijuana program lags behind those in other states. The lag seems to be linked to Ohio’s penchant for litigation and its reluctance to approve certain qualifying medical conditions, such as anxiety, autism and opioid use disorder. Since medical marijuana was legalized more than four years ago, Ohio has only approved one additional condition that may be treated by medical marijuana — cachexia (wasting syndrome).

Plus, Ohio’s program has been slowed due to lawsuits. Initially, the state was stymied by lawsuits as a result of its residency requirement and its requirement that a certain percentage of licenses be granted to minority-owned businesses. More recently, the state and local municipalities have both embroiled medical marijuana permittees in suits that have delayed openings of dispensaries across the state, frustrating operators and patients.

On other, related fronts, Ohio is still wrestling with the possibility of decriminalization and adult-use legalization. The Ohio Legislature is considering various criminal justice reforms and in June the Senate passed a bill that would double the amount of marijuana in someone’s possession that would be considered a civil violation instead of a criminal misdemeanor charge. Additionally, the battle continues to legalize recreational marijuana in Ohio. Amid the coronavirus pandemic, the Sensible Movement Coalition (SMC) was initially stalled from obtaining the required physical signatures needed to put an adult-use initiative on the November ballot. Then a federal district judge allowed the SMC to collect the required ballot signatures via electronic means, only to have a panel of judges on the 6^th Circuit reverse the decision. The SMC is considering an appeal to the U.S. Supreme Court.

On the mergers and acquisition front, Ohio has not received a lot of enthusiasm. Whether it is because of Ohio’s slow start, low patient counts, litigation woes or its unwillingness to approve important additional conditions, Ohio has not seen the level of interest from firms looking to acquire marijuana businesses that other states have seen.