Marijuana Legalization for Medical and Recreational Use

Ohio and Colorado as Models

Megan Mefford, PhD

129C Parks
mefford.291@osu.edu
2020 Election Update
• States with Medical Marijuana Legalization: 35 (was 33)
• Mississippi and South Dakota

• States with Recreational Marijuana Legalization: 15 (was 11)

• South Dakota, New Jersey, Arizona, and Montana

• State with All Drugs Decriminalized: 1

• Oregon
 Legalization Timeline

https://www.kansascityfed.org/en/publications/research/rme/articles/2019/rme-4q-2019
Medical Marijuana:
Ohio as a Model
Marijuana in Ohio

• Ohio was the 25th state (35 total), plus DC, to allow medical marijuana
• House Bill 523, which Governor John Kasich signed into law June 2016, took
effect on September 8, 2016
• The new legislation was hurriedly pushed through the General Assembly and signed into
law to cut off a more liberal ballot issue backed by the Marijuana Policy Project. The
group dropped its ballot issue after the bill was signed

• The law allows Ohioans with any of 22 qualifying medical conditions to obtain
up to a 90 day supply of marijuana edibles, patches, oils, tinctures, and plant
material
• Vaporizing marijuana is permitted, but smoking is not
• Home growing is also prohibited

https://medicalmarijuana.ohio.gov/about/
 Legalization Timeline
• November 2015
• Voters rejected a constitutional amendment that would have legalized marijuana for
medical and recreational use but granted exclusive growing rights to the investors who
bankrolled the campaign
• Voters approved a constitutional amendment to make it more difficult for business
interests to change the constitution
A Closer Look

• June 2016
• Gov. John Kasich signs a medical marijuana bill into law

• September 8, 2016
• The new law takes effect and state regulators start working on rules
 The Potential Numbers
• $200 million - $400 million: Possible revenue of medical marijuana market
• 200,000 – 250,000: Number of patients anticipated
• 6,900: Number of associated doctors anticipated
• 21: Number of conditions for which medical marijuana can be recommended (now 22)
• Various business bans
• Local jurisdictions have approved or introduced moratoriums or bans on medical marijuana businesses,
including: Akron, Avon Lake, Beavercreek, Brooklyn, Clayton, Cleveland (lifted), Dover, Lakewood,
Lancaster, Lima, Miamisburg, New Philadelphia, North Canton, Parma, Piqua, Rocky River, Springfield,
and Troy

• Hilliard, Grandview Heights, New Albany (6 month moratorium), Dublin, Worthington, Plain City,
Lancaster (ban), Upper Arlington, and Grove City (1 year moratorium) are among those that have
placed or are considering bans or moratoriums on the marijuana industry.

• Jurisdictions that opted against a ban include Huber Heights, Johnstown, and Yellow Springs
Ohio’s First Dispensaries Opened 1/16/19 at 9AM
 The Actual Numbers
• More than 3,500 patients completed the registration process in the first
four weeks after the registry opened
As of 10/28/20:
• Doctors have written 181,566 recommendations
• 140,409 patients have registered
• Includes 9,756 veterans, 10,290 indigent patients, and 765 patients with a terminal
diagnosis
• 115,155 unique patients have purchased medical marijuana
• 8790 lbs of plant material sold as of 2/16/20 (not quite 1 T-Rex)

https://medicalmarijuana.ohio.gov/Documents/ProgramUpdate/program%20update.pdf
What are the Rules?
Agencies Overseeing Implementation
• The Department of Commerce develops rules for growers, processors,
and testing laboratories

• The Board of Pharmacy creates rules, applications, and fees for

dispensaries
• Also establishes the number of dispensaries permissible statewide
(limit of 60 dispensaries)

• Physicians won't be able to prescribe marijuana because of federal law.

However, they will be allowed to "recommend" medical marijuana for
patients following certification by the State Medical Board.
 The Panel
By state law, has to include members who represent groups potentially impacted by the law

• Practicing pharmacist and member of the Ohio State Board of Pharmacy

• Practicing pharmacists
• Academic research (Gary Wenk, an Ohio State University professor who has studied the medical benefits of
marijuana)
• Drug/alcohol addiction
• Agriculture
• Practicing physicians
• Practicing nurses
• Patients
• Member of State Medical Board of Ohio
• Persons involved in mental health treatment
• Employers
• Labor
• Local law enforcement
• Caregivers (15,854 registered caregivers as of 10/28/20)
 Physicians

• Can recommend - not prescribe - marijuana to patients

• Must have an active, unrestricted license "to practice medicine and surgery or osteopathic
medicine and surgery"

• Must take a two-hour “continuing education” course in medical marijuana

• The licensing procedure follows the same process as existing medical licensure and requires
no separate background check

• Must "establish and maintain a bona-fide physician-patient relationship that is established in an

in-person visit," and the physician must provide care for patients on an ongoing basis

About 30% of Ohio physicians said they would be likely to recommend marijuana, according to a medical board survey
 Patients
• Ohio currently has >115,000 unique purchasers out of an estimated ~200,000 medical marijuana
patients (that’s an increase from ~60,000 in January)

• The rules for patients and caregivers include:

• Required registration with the Ohio Board of Pharmacy
• Annual registration fees will be $25 for caregivers, $50 for patients — a 50% reduction for veterans
or indigent patients
• Patients who are minors must have a parent or legal representative serve as their caregiver
• Caregivers must be 21 years or older and may serve up to two patients
• Applications from terminally ill patients shall be approved or denied within 10 business days
• Patients can only possess a 90-day supply of medical marijuana products at any one time.

• To qualify for the registry, patients must have a physician diagnose that they suffer from a
qualifying condition and issue a recommendation that they use medical marijuana
Medical Marijuana Production
 Seed to Sale Tracking
• From seeds to cultivation to harvest as well as tracking cannabis through
the testing labs, processors, and dispensaries

• The system should also tie into existing government licensing, regulating,
and revenue reporting systems, such as Ohio’s prescription drug
monitoring database

• Metrc (Marijuana Enforcement Tracking Reporting and Compliance)

• The company that runs Colorado's seed-to-sale marijuana system has the same
responsibilities in Ohio
• Covers medical marijuana from its start as a plant to its sale to patients and
everything in between
Growers
• Ohio was expected to license 12 large
growers and 12 smaller cultivators
• Ohio received 185 applications
• 19 Level I (11 received certificate of
operation)
• 14 Level II (13 received certificate of
operation)
Level 1 Grow
Level 1
25K square feet
$20,000 Application Fee
$180,000 Initial License Fee (if approved)
$200,000 Yearly License Fee
Level 2
3K square feet
$2,000 Application Fee
$18,000 Initial License Fee (if approved)
$20,000 Yearly License Fee
 Processors
• 48 provisional licenses have been issued for medical marijuana processors (24
have received certificates of operation)

• Convert the plant material into oils, extracts, edibles, and other forms for patient use

• Processors have to pay $100,000 fee for a license application as well as a $90,000
certificate of operation fee
• Annual renewal fees are $100,000

• The rules for processors spell out requirements for facility plans, access to
capital, employee training, safety and ID cards, lab testing, and inspections
 Testing
• The laboratory application fee is $2,000 and the certificate of operation fee is $18,000; a laboratory annual
license renewal fee is $20,000

• PRIVATE TESTING LABORATORY PROVISIONAL LICENSE RECIPIENTS

•ACT Laboratories, Inc.

•Battelle Memorial Institute, Columbus
•North Coast Testing Laboratories, LLC

• The Ohio Department of Commerce continues to finalize the reviews of the private testing labs. There is no
limit to the number of testing lab licenses that may be awarded. Currently, 6 provisional licenses and 3
certificates of operation have been awarded.

• UNIVERSITY TESTING LABORATORY PROVISIONAL LICENSE RECIPIENTS

•Central State University

•Hocking Technical College

(Issued certificates of operation)

 Dispensaries

• 60 total (57 with provisional licenses, 52 with certificates of operation)

• 18 northeastern OH, 10 northwest, 17 southeast, 15 southwest
• Urban areas such as Cuyahoga and Franklin counties will each have five
dispensaries, which will leave others with none

• Each dispensary - $5,000 application fee and an $80,000 licensing fee every two years

• Allowed to operate from 7 a.m. to 7 p.m.

• Estimates 4700 patients/dispensary (based on estimates of 200,000 patients)!

• CO (206), OR (237), PA (683), MA (742)
Open

In Progress
Products
• Oils
• Like many other plants, oil can be extracted from marijuana and processed into concentrated forms that can be
used in recipes or in skin lotions and creams.
• Edibles
• Plant material can be baked or mixed into foodstuffs, including brownies, cookies, ice cream, lollipops, and
crackers.
• Patches
• As with other transdermal patches, the active compounds of marijuana reach the bloodstream through the skin.
• Plant material
• Unprocessed cannabis can be purchased and used legally as long as the patient doesn’t light it up. In any form,
patients are limited to a 90-day supply of medical marijuana.
• Tinctures
• These alcoholic extracts of cannabis usually are taken by dropper under the tongue or mixed into drinks.
• Vaping
• While the law prohibits the use of medical marijuana through combustion, it does allow for vaping, which
releases the psychoactive molecules of marijuana through heating in a vaporizer.
 Price
• Several factors determine the price of cannabis (Quality, Quantity, Competition, Time of year)

On the first day, 8.7 lbs of medical marijuana was sold

for $75,000 (~ $538/ounce). In Ohio, the minimum
purchase amount is 1/10 ounce (2.83 g), which would
cost a little over $54 on average. (Michigan - average
price closer to $23 for 1/10 ounce)

For the first two months, prices averaged

$471.86/ounce ($47.19 per 1/10 ounce).

In March, the price average in Ohio is $56.60/0.1

ounce. The price in Pennsylvania and Illinois is ~$40,
but in Michigan, the average price per ounce in the Currently, the price average at Cresco’s CY Plus for
same month was $28.56. (source- Budzu) 1/10 ounce of flower is $40.82.
 Conditions Covered
• Acquired immune deficiency syndrome (AIDS) • Inflammatory bowel disease
• Alzheimer’s disease • Multiple sclerosis
• Pain (chronic and severe pain or intractable
• Amyotrophic lateral sclerosis (ALS)
pain)
• Cancer • Parkinson’s disease
• Chronic traumatic encephalopathy (CTE, the • Post-traumatic stress disorder (PTSD)
degenerative disease most commonly found in
football players and other athletes in contact sports) • Sickle cell anemia
• Crohn’s disease • Spinal cord disease or injury
• Epilepsy or another seizure disorder • Tourette’s syndrome
• Traumatic brain injury (TBI)
• Fibromyalgia
• Ulcerative colitis
• Glaucoma
• Hepatitis C • Added in 2020: Cachexia/Wasting syndrome
• HIV

Any other disease or condition added by the state medical board under section 4731.302 of the Revised Code
Patients and caregivers will have to register with the state
Conditions of First 17,000 Card Holders

-Severe/chronic pain - 10,910

-Post-traumatic stress disorder - 2,622
-Fibromyalgia - 1,973
-Cancer - 1,082
-Spinal cord injuries - 998
-Epilepsy/seizures - 555
-Crohn’s disease - 445
-Traumatic brain injury - 366
-Hepatitis C - 327
2016 Colorado Medical Marijuana Data

Colorado Department of Public Health and Environment August 2016

Adding New Qualifying Conditions
• For a 60-day period each year, Ohio will consider petitions for new
qualifying conditions
• The last petition period extended from 11/1/19 to 12/31/19 (currently
open for same time frame in 2020)
• As of February 2020, the committee has narrowed down 27 petitions into 6
conditions for consideration to be moved ahead for expert study:
• Anxiety, autism, depression, insomnia, opioid use disorder, and
cachexia/wasting syndrome
• Anxiety and autism were considered and rejected in 2019, which means
that new information/evidence needs to be presented for consideration to
move ahead a second time
• Rejected again in 2020 (no new information)
• Cachexia/Wasting syndrome was added to list of qualifying conditions
 Ohio Medical Marijuana Dispensaries Sold About
$500K Worth of Marijuana in the First Two Weeks

Taxes and Fees

• Market is projected to generate as much as $400 million in annual sales over time
• Sold $56 million in first year (lower than expected), including 6713 lbs of plant material and 287,143
units of other products
• Sales up to $73.2 million as of February 2020
• Average single sale at a dispensary was $129
• Sales account for ~$4 million in state sales tax through January 2020
• Single-month record set in July 2020 of $21.4 million
• Sales still short of comparable markets

• The regulatory authorities set application fees for patients and businesses

• While prescription drugs are exempted from sales taxes in Ohio, medical marijuana is not
available under a prescription, and exemption for prescriptions do not apply

• The state sales tax rate is currently 5.75% for retail sales; depending on additional rates
set by local municipalities, the total sales tax can be as high as 8% at the register
 Recreational Marijuana:
Colorado as a Model

Megan Mefford, PhD

129C Parks
mefford.291@osu.edu
 Medical Marijuana

• Colorado has two primary medical marijuana laws

• The oldest is a constitutional amendment passed by voters authorizing

patients and their caregivers to possess, cultivate, and use medical
marijuana (Amendment 20, Nov 2000)

• The second law enacted in the summer of 2010 established the

Colorado Medical Marijuana Code, which created a dual licensing
scheme that regulates medical marijuana businesses at both the state
and local levels
Recreational Marijuana

Colorado Amendment 64
An initiative ballot measure to amend the Constitution of the State of
Colorado outlining a statewide drug policy for cannabis. The measure passed
on November 6, 2012, and together with a similar measure in Washington
state marked "an electoral first not only for America but for the world”
The law addresses "personal use and regulation of marijuana" for adults 21 and
over, as well as commercial cultivation, manufacture, and sale
• Regulates marijuana in a manner similar to alcohol, namely
for recreational use
• The commercial sale of marijuana to the general public began on January
1, 2014
 Grow up to 3 immature and 3 mature marijuana
plants privately in a locked space

• Legally possess all marijuana from the plants they grow (as long as it
stays where it was grown)

Legally possess up to 1 oz (28 g) of marijuana while

Personal Use - traveling

Adults 21 or older • Give as a gift up to 1 oz to other citizens 21 years of age or older

• Only those with a medical marijuana “red card,” issued by the state
on the recommendation of a physician, can possess more at one
time

Consumption is permitted in a manner similar to

alcohol, with equivalent offenses prescribed
for driving under the influence
Legalization Concerns

Positive
• Legalization has ushered in thousands of new jobs
• Brought over $290 million in taxes to the state last year (2019)
• Over $1 billion in total sales revenue
• Ended the prohibition of a widely used substance

Negative
• Police struggle to enforce a patchwork of laws covering
marijuana, including drugged driving
• Officials worry about the industry becoming like big tobacco,
dodging regulation and luring users with slick advertising
The Line Outside the Medicine Man Dispensary in Denver on
Jan. 1, 2014, the First Day of Legal Recreational Marijuana
Sales

https://www.colorado.gov/pacific/revenue/colorado-marijuana-sales-reports
Cannabis Use
 Dispensaries
• Marijuana legalization is an opt-in policy which means
that cities can decide whether or not they want cannabis
businesses within their limits
• Of Colorado’s 321 jurisdictions, ~65% had banned
recreational marijuana businesses as of 2018
How many is too many?
• Colorado has minimal restrictions for licensing
• Nearly anyone over the age of 21 who lives in
Colorado and has never been a felon can become a
cannabis business owner

There are more dispensaries in Colorado (509

recreational and 505 medical) than Starbucks (481)
or McDonald’s (181)
 Dispensaries

• The state allows marijuana stores to operate from 8 AM - midnight

• Cities can implement more restrictive hours than the state allows
• Denver Metro stores are required to close by 10 PM

• As of June 2016, both tourists and residents can purchase 1 oz (28 g) in a

single transaction
• Obviously this law has some gray areas, such as what is a ‘single transaction’;
therefore, most recreational stores err on the side of caution and will only serve
people once per day
• Can mix and match products (flower, edibles, concentrates) as long as the total equals
28 g or less.
 Where Can You Smoke Weed?
• Amendment 64 does NOT permit the public
consumption of marijuana
• Can get a ticket similar to open container laws for
drinking in public
• In general, there aren't any coffee shops or marijuana
bars like in Amsterdam

• The right to possess marijuana in Colorado does not

apply in national parks, national forests, or monuments
or other federal properties, such as courthouses
• Ski slope? – ski nope. Many ski areas are located on
federal land
What About the Money??
Retail Prices
 Sales Stats
The cannabis industry has created new jobs

• There were 41,796 people licensed to work in the industry in

January 2019, including 1,637 business owners
• ~ That’s more than 2x the number of high school teachers in
Colorado

In the first year of legalization in Colorado,

consumers bought 4.8 million units of edible
cannabis products

Consumers bought 288,292 pounds (>144 tons) of

recreational marijuana in Colorado in 2018

• Fun fact: this weighs as much as about 46 Chevy Suburbans or 15 T-

Rexes
How is Marijuana Revenue Collected and Spent
in Colorado?

Economics
Example

• Mary Jane Reefer wants to buy 1 oz of

retail marijuana flower for $200
• The excise tax is included in the purchase
price

• Mary Jane will pay a state sales tax of

$35.80 (17.9% of $200). This amount
includes the state sales tax of 2.9% on all
tangible personal property (which
includes marijuana) AND the state retail
marijuana special sales tax of 15%
• Mary Jane will also pay local sales taxes
depending on the location of the store
where the purchase is made
Drugs in the Workplace
Drug Free Workplace Act

• The Drug-Free Workplace Act of 1988 requires some federal

contractors and all federal grantees to agree that they will provide
drug-free workplaces as a condition of receiving a contract or grant
from a federal agency

• Applies to any organization that receives a Federal contract of at least

$100,000
• It also requires that all organizations receiving Federal grants of any size
establish and maintain such a policy
• Does not require employers to drug test employees
Employers

• Amendment 20 and Amendment 64

• “Nothing in this section shall require any employer to accommodate the medical
use of marijuana in any work place”
• Individual’s constitutional right to use marijuana does not trump or supersede an
employer’s constitutional right to maintain a drug-free work environment

• Employers may prohibit use or impairment from marijuana at work and

enforce drug policies
• No need to accommodate ‘special’ smoke breaks
• No need to accommodate medical marijuana on modified duty
• Medical marijuana registration card does not protect job

• A zero tolerance drug policy is still effective if clearly communicated and

equally enforced
What Have States Done?

• Washington State Human Rights Commission: “will decline to investigate

any claims of discrimination involving medical marijuana”

• CO, HI, MI, MT, NJ, NM, VT: only on-the-job consumption/impairment is
grounds for termination

• Battle Creek, MI: Walmart terminated cancer patient for using medical
marijuana

• RI, ME: “no school, employer or landlord may refuse to enroll, employ or
lease to or otherwise penalize a person solely for his or her status as a card
holder” § 21-28.6-4
Tuesday’s Lecture: Opioid Epidemic

Assignments Due Next Week:

• Checkpoint #4 (rough draft): Tuesday 11/10
by 11:59 PM
• Checkpoint #4 peer review: Monday 11/16
by 5:00 PM
• Quiz #4: Friday 11/13 by 11:59 PM
 Upcoming Talks at Ohio State
• Psilocybin-assisted therapy for major depressive
disorder- Friday, November 6, 7-8 PM
• Information and Registration
• Moritz College of Law: Drug Policy Implications of
the 2020 Elections- Monday, November 16, 1-2:15
PM
• Information
• Registration