Ohio Medical Cannabis Program Advances with Proposed Cultivation Rules


More than six months ahead of the May 6, 2017 deadline for adoption, the Ohio Department of Commerce has issued proposed rules for cultivators in the Ohio Medical Marijuana Control Program. The agency also issued a two-page summary that highlighted several of the rules, including a limit of 12 large producers (Level I) and six small ones (Level II). Cultivators will have nine months from the issuance of the provisional license to pass inspection.

One aspect of the rules that will likely raise concerns is the steep licensing fees of $180K for the Level 1 companies, with an application fee of $20K. The prices for the Level II companies are 90% lower at $18,000 and $2000, respectively. Level I cultivators can operate grows as large as 15,000 square feet, while Level II cultivators are limited to just 1600 square feet.

The applicants will be judged on criteria that includes the business plan, an operations plan, a quality assurance plan, a security plan and a financial plan. Other considerations include generation of local jobs, minimization of the carbon footprint, employment practices, ownership by a majority of members of an economically disadvantaged group, substance abuse prevention plans and a commitment to research. The proposed rules highly limit the ability of successful applicants to advertise physically or online.

The Department of Commerce is taking public comment from 11/2-11/15. The program is mandated to begin by September 8, 2018. To stay on top of Ohio and other state medical cannabis programs on a state-by-state basis, visit the New Cannabis Ventures resource page.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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