The Ohio Supreme Court told state regulators that they can’t just ignore applications to expand medical marijuana cultivation facilities.
Fire Rock’s application to double its 3,000-square-foot operation came at a time when Ohio’s MMJ program suffered from product shortages and high prices.
State regulators had defended a decision not to act on the application by arguing that Ohio law prohibited cultivators from submitting an expansion application on their own initiative.
But the Supreme Court called that a “flawed legal theory.”
The court said that although the relevant state rule “limits how often a cultivator may submit an expansion application, it does not prohibit a cultivator from submitting an application on its own initiative.”
The court also said that the Ohio Department of Commerce has a “clear legal duty to either approve or deny (a) cultivator’s application.”
Fire Rock had applied for an expansion, saying it couldn’t grow enough marijuana to meet customer demand.
The company’s application not only included a floor plan and proposed construction timeline, but it also projected sales data and letters from dispensaries that wanted more product.
State medical marijuana regulators didn’t immediately respond to Marijuana Business Daily’s request for comment.