'Potpreneurs' Prepare for Marijuana Legalization

With the legalization of medical marijuana set to go into effect on September 8, 2016, entrepreneurs and investors are keeping an eye on Ohio for what could be a multi-billion dollar industry. While the Ohio Department of Commerce has until May 6, 2017 to issue regulations related to cultivation, and until October 2017 for the remainder of the operations, nearly 100 marijuana related firms have already registered company names with the state.

House Bill 523 establishes operations at four levels, including cultivators, processors, testing laboratories and dispensaries. Three regulatory agencies will be in charge of rulemaking and compliance: Ohio Department of Commerce, Ohio Board of Pharmacy, and State Medical Board. A 14-member advisory committee will also have a role in making recommendations to the three agencies. The committee, which must be appointed by October 8, 2016, will comprise pharmacists, physicians, a nurse, a researcher and other members representing various interests, including law enforcement, employers, labor, patients, caregivers, agriculture, mental health and drug and alcohol addiction treatment.

Although there are still many legal unknowns, such as how many licenses will even be available, “potpreneurs” are hiring lawyers and lobbyists to prepare for the process. Additionally, several marijuana trade organizations have been registered in recent months. The first such organization, the Ohio Cannabis Association, vowed at its public forum this month that it will serve as a voice for both patients and entrepreneurs while regulatory decisions are being finalized.

For more information on how this may affect your business, please contact a member of the Frantz Ward Marijuana Law & Policy Group.