Ohio Cannabis Industry Announces Objection to Medicinal Weed Revision Act

A group of medical cannabis operators and advocates in Ohio has united in “strong opposition” to a bill that would dramatically change the state’s medical marijuana program. The measure, Senate Bill 9 (SB 9), was introduced Jan. 11 by state senators Steve Huffman and Kirk Schuring.

The bill aims to update Ohio’s medical marijuana statute, which was passed by the state legislature and put into effect in 2016. But this week, the Ohio Medical Cannabis Industry Association (OMCIA) opposed SB 9, saying the increase in medical marijuana dispensaries and cannabis acreage included in the measure would lead to supply gluts that would cripple the industry could.

“SB 9 penalizes companies like mine that have invested hundreds of millions of dollars in developing our state,” Daniel Kessler, co-owner and CEO of medical marijuana grower and processor Rivera Creek, said in a statement to OMCIA. “Rather than cutting red tape, this bill does the opposite, adding an additional layer of oversight in the form of a lifetime commission on political appointments.”

The group says the bill would add another two million square feet of medical cannabis cultivation area and add more than 60 new medical marijuana distribution licenses to the 130 permits already granted. The legislation also adds cultivation licenses for some independent cannabis processors, as well as Tier 2 processing licenses for breeders.

“What we found is that a lot of growers want to expand and grow more,” Huffman said when the legislation was introduced earlier this year. “There are more producers, there is more demand. You file an application with the Department of Commerce and he sits there for 18 months, two years. Hopefully this takes the bureaucracy out of it and streamlines things and makes it a better functioning industry.”

Ohio Group says increased capacity unnecessary

But OMCIA says the increased production capacity would come at a time when “many current growers have cut production by 30%-50% and are not operating at full capacity.” The group also noted that the current regulations of Ohio’s medical marijuana program already include provisions that allow current operators to expand their operations as the market grows.

“We oppose the massive expansion outlined in SB 9 because of the lack of data to justify such an expansion being necessary,” said Bryan Murray, executive vice president of government relations at multistate cannabis operator Acreage Holdings. “The negative impact of oversupply in markets across the country cannot be overstated – and opening the floodgates at odds with market reality would hurt the Ohio industry.”

Kessler added that “the expansion measures in the bill would add immense supply to an already oversupplied market. Despite my company’s reputation for quality products, we currently have hundreds of pounds of product in our inventory that we are unable to sell. Even at wholesale prices, the demand isn’t there. If the law is passed in its current form, it is likely that the industry will collapse and the only winner will be the illegal black market.”

The bill creates a new state agency within the Ohio Department of Commerce, the Department of Marijuana Control, to regulate the state’s medical marijuana program. The legislation also creates a 13-member commission responsible for overseeing the new agency and medical program. Under current law, the state’s medical marijuana program is overseen by the Ohio Department of Commerce, the State Medical Board of Ohio, and the Ohio Board of Pharmacy.

Senate Bill 9 would also add autism spectrum disorders, arthritis, migraines, chronic muscle spasms and opioid use disorders to the state list of conditions that qualify a patient for medical use of cannabis. Currently, the list of qualifying medical conditions includes more than two dozen serious medical conditions, including cancer, chronic pain, AIDS, Parkinson’s disease, PTSD, and terminal illnesses. The measure also permits the use of medical marijuana by patients who have other debilitating conditions that can be treated with medical cannabis, as determined by their doctor.

OMCIA notes that enrollment in Ohio’s medical marijuana program “is flat at an average of 163,000 active patients” and argues that adding more manufacturing and retail capacity isn’t necessary. Instead, the group called for several changes to make medical marijuana available to more patients.

“Ohio’s stagnant patient base does not justify the additional approval of SB 9 and the expansion of acreage,” said Matt Close, executive director of OMCIA. “The last thing we need is more supply. Instead, legislation should focus on addressing our industry’s biggest challenge: excessive barriers to patient participation.”

OMCIA recommends adding anxiety, insomnia and depression as qualifying conditions for the program and reducing or eliminating annual medical marijuana identification card fees. The trade group is also calling for medical marijuana recommendations to last three years instead of the current one, and for patients with terminal illnesses to be licensed for life.

Other recommendations from the group include eliminating state, state and local taxes on medical marijuana purchases, employment protections for medical marijuana cardholders, and a ban on the sale of intoxicating hemp cannabinoids such as delta-8-THC outside of the state.

SB 9 is currently under consideration by the Senate General Government Committee, with a legislative hearing scheduled for this week.