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Disadvantaged Groups Not Entitled to 15 Percent of All Medical Marijuana Cultivator Licenses

Published: Nov 18, 2018 by John Izzo

When the Legislature drafted the Medical Marijuana Control Act, it decided that fifteen percent of all cultivator, processor, and dispensary licenses must go to applicants that are owned and operated by Ohio residents who were part of economically disadvantaged groups (EDG). The statute defined EDGs as Blacks or African Americans, American Indians, Hispanics or Latinos, and Asians.

Two of the twelve Level I cultivator licenses issued by the Ohio Department of Commerce went to EDG applicants. However, neither of these applicants had scores that placed them in the top twelve. This meant the applications that scored the 11th and 12th highest scores were set aside, allowing the two EDG applicants to obtain licenses.

The law that allowed this to happen was challenged in Pharmacann Ohio, LLC v. Ohio Dept. Commerce Director Jacqueline T. Williams, Franklin Co. C.P. 17CV10962. On November 15, 2018, Judge Charles A. Schneider issued his decision determining the set aside law for EDGs was unconstitutional, but did not invalidate any other portions of the Medical Marijuana Control Act. According to the Columbus Dispatch, the Department of Commerce is reviewing the ruling and determining their next steps.

How does this affect the Medical Marijuana Control Program. First, the 11th and 12th scoring applications for Level I cultivators should immediately receive licenses. The same may happen for Level II cultivator applicants. No applicant for a medical marijuana processor license should receive a licenses merely because of its EDG status.

How will the Ohio Board of Pharmacy address this Court decision Similar language in the law required the Pharmacy Board issue fifteen percent of its licenses to EDG applicants as well. The Pharmacy Board issued fifty-seven licenses. This means as many as nine qualified applicants could have been displaced. The Pharmacy Board has not indicated if they will award these applicants a license, or will wait for a court order.

If you have any questions about the regulation of medical marijuana in Ohio, you should consider contacting an attorney at Graff & McGovern. John Izzo of Graff & McGovern can be reached at 614-228-5800, extension 5, or johnizzo@grafflaw.com.