Fiscal Note & Local Impact Statement: O L S C
Fiscal Note & Local Impact Statement: O L S C
Fiscal Note & Local Impact Statement: O L S C
S.B. 261
Fiscal Note &
134th General Assembly Local Impact Statement
Click here for S.B. 261’s Bill Analysis
Highlights
The bill transfers the portions of the Medical Marijuana Control Program (MMCP)
currently overseen by the Board of Pharmacy (PRX) to a newly created Division of
Marijuana Control within the Department of Commerce. As a result, the Department will
incur costs, including hiring new employees, to oversee these new responsibilities.
Expenses would be paid from the Medical Marijuana Control Fund (Fund 5SY0).
In FY 2021, PRX’s costs to license medical marijuana retail dispensaries and register
patients and caregivers amounted to approximately $2.4 million and involved 11 full-time
and one part-time employee.
Detailed Analysis
Overview
The bill creates the Division of Marijuana Control (DMC) within the Department of
Commerce (COM) for the purpose of overseeing Ohio’s Medical Marijuana Control Program
(MMCP). Currently, three state agencies are responsible for the operation of MMCP. COM
oversees the licensing of cultivators, processors, and testing laboratories. The Board of Pharmacy
(PRX) oversees the licensing of retail dispensaries and the registration of patients and caregivers.
The State Medical Board certifies physicians to recommend medical marijuana.
The bill transfers the portions of MMCP currently overseen by PRX to DMC (the State
Medical Board’s responsibilities remain the same under the bill). Specifically, the bill transfers
the following responsibilities from PRX to DMC: registering patients and caregivers, approving
and licensing retail dispensary licensees, overseeing licensee taxation, investigating violations of
the Medical Marijuana Law, entering into reciprocity agreements with other states, and
maintaining a toll-free telephone line for responding to inquiries related to MMCP. Retail
January 4, 2022
Office of Research and Drafting LSC Legislative Budget Office
1https://medicalmarijuana.ohio.gov/Documents/ProgramUpdate/program%20update.pdf (accessed
December 15, 2021).
P a g e |2 S.B. 261, Fiscal Note
Office of Research and Drafting LSC Legislative Budget Office
Cultivators – Level I $20,000 application fee; $180,000 20 provisional licenses (15 have
initial Certificate of Operation (COO) received Certificates of Operation)
fee; and $200,000 COO annual fee
Cultivators – Level II $2,000 application fee; $18,000 14 provisional licenses (12 have
initial COO fee; and $20,000 COO received Certificates of Operation)
annual fee
Testing Laboratories $2,000 application fee; $18,000 COO 11 provisional licenses (4 have
fee; and $100,000 COO annual fee received Certificates of Operation)
Retail dispensaries $5,000 application fee; $70,000 COO 58 provisional licenses (57 have
fee; and $70,000 biennial license fee received Certificates of Operation)
SB0261SP/lb