Businesses across the nation are faced with a wide range of laws and regulations. Once medical marijuana became legal in Ohio, businesses scrambled to get their paperwork in order to get licenses to dispense it legally. The laws regulating the field are complex and vary from state to state, which is why companies may find it difficult to get it. Relevant boards are holding businesses to what they claimed on their applications, and this is creating problems for at least two in the state.
For the 60 available dispensary licenses in Ohio, 376 applications were submitted. Anyone with at least one percent ownership or equity in the company had to be declared, and the pharmacy board is now holding them to their board. Businesses have to comply with what they said on their application, including financial interests. Big ownership changes are prohibited until the dispensary has been open for one year.
Two companies have allegedly lied on their applications and have been found to violate state rules by the Ohio Board of Pharmacy. According to the Board, one company transferred ownership without state approval and changed facts submitted with the application last year. As for the second company, the Board claims it does not meet the state’s definition of an economically disadvantaged group. Until the matter is resolved, both companies are prohibited from opening new dispensaries. The Board can discipline the companies by imposing fines on them or even revoking licenses.
Companies are not completely prohibited from altering their ownership-in some circumstances new employees with financial interests can be added. However, it is important to understand what those situations are and how to maintain one’s license. Consulting an experienced attorney may be one way to ensure compliance with the law.