StaffThis story was reprinted with permission from Crain’s Cleveland Business and written by Jeremy Nobile.
Ohio regulators have proposed changes to marijuana program rules that would eliminate annual fees for medical marijuana patients and caregivers, reduce annual registration fees for processors, and also allow licensed cannabis companies to hire employees on a provisional basis.
The state’s Division of Cannabis Control said that it is accepting public commentary on these recommended changes through Tuesday, March 12.
Medical marijuana patients and their caregivers currently pay annual fees of $50 and $25, respectively, to be registered with the state.
DCC proposes cutting those fees entirely, noting that it encourages eligible patients to remain part of the Medical Marijuana Control Program regardless of the legalization of adult use.
In fiscal year 2023, registration fees for patients and caregivers totaled $6.6 million.
At the end of the 2023 calendar year, 410,565 people have registered as medical marijuana patients at some point during the life of the program, according to state figures. At that time, there were 169,339 patients with active recommendations and 38,101 caregivers.
“Eliminating the patient and caregiver registration fees is a strong move from the new Division of Cannabis Control and illustrates a clear dedication to improving the medical marijuana program for Ohio’s patients,” Matt Close, executive director of the Ohio Cannabis Coalition (OHCANN), which represents the medical and recreational cannabis operators in Ohio, previously told Crain’s.
“Removing barriers to patient access is the best way to create an environment where both the medical and adult use marijuana programs can thrive and to combat the illicit market,” Close added. “We applaud the Division for proactively proposing this patient-focused change less than a month into their new role regulating patients, caregivers, and dispensaries. We encourage medical patients to renew their medical marijuana cards because it is likely adult use marijuana won’t be available until later this year.”
As far as processor renewal fees, which apply to cannabis companies that make manufactured products ranging from oils and concentrates to foodstuffs, the agency proposes cutting those in half from $100,000 to $50,000.
In a corresponding business impact analysis, it noted that while fees like these are necessary to cover administrative costs of the program, the DCC suggests it will continue to have funds to cover program costs while “providing a more equitable fee schedule” and bringing those more in line with other facility fees.
With respect to provisional employee badges, DCC proposes permitting these to help operators more readily hire needed staff.
Currently, marijuana industry workers must pass background checks before they can be officially employed, a process that can take up to 60 days. Industry stakeholders have reported that the amount of time required to hire has led to the “loss of good, qualified candidates—resulting in increased recruiting and hiring costs for licensees.”
Under the proposed changes, someone would be permitted to begin working for a marijuana business provided that: they complete an employee badge application; the parties attest that an employee does not have any offenses on their record that would disqualify them from obtaining a badge; provided evidence that the applicant has submitted fingerprints for both Bureau of Criminal Investigation and FBI background checks.
