2022 annual report : annual Commission report to the Georgia General Assembly in accordance with O.C.G.A. §§ 16-12-203(9), 16-12-204(c)(2), 16-12-214(a) and (b).

2022 ANNUAL REPORT
ANNUAL COMMISSION REPORT TO THE GEORGIA GENERAL ASSEMBLY
IN ACCORDANCE WITH O.C.G.A. 16-12-203(9), 16-12-204(c)(2), 16-12-214(a) and (b)
Georgia Access to Medical Cannabis Commission
7 Martin Luther King, Jr. Drive, Southwest, Suite 139 Atlanta, GA 30334 470-227-0331 www.gmcc.ga.gov

Georgia Access to Medical Cannabis Commission

Danielle Benson, Vice Chair William Bornstein, MD

Christopher Edwards, MD, Chair Jason Hockenberry, PhD William Prather, R.Ph
www.gmcc.ga.gov

Judith Rochon, MD Charles Welch, Jr.

MEMORANDUM

TO

MEMBERS OF THE GEORGIA GENERAL ASSEMBLY

FROM

GEORGIA ACCESS TO MEDICAL CANNABIS COMMISSION ANDREW L. TURNAGE, EXECUTIVE DIRECTOR

DATE

JANUARY 29, 2022

SUBJECT STATUTORY ANNUAL REPORTS & SUPPLEMENTAL INFORMATION

The Georgia Access to Medical Cannabis Commission (GMCC) Second Annual Report fulfills the agency's statutory reporting obligations under Georgia's Hope Act (2019) as amended, which include a) proposed legislative changes, b) low-THC oil production report, and c) minority and women owned business study. The number of patients on the Georgia Department of Public Health's Low-THC Oil Patient Registry has grown from 13,000 in 2019 to more than 20,000 in 2021, a 53.85% increase. The Commission is also submitting (projected) collection of revenue, milestones, and a strategic plan of agency goals and measures as outlined in the statutory requirements for the Commission.

Table of Contents
Commission Members & Staff ..............................................................................1 Purpose & History of the Commission ...................................................................2 Collection of Revenue..........................................................................................3 Milestones .........................................................................................................4 Proposed Legislative Changes .............................................................................5 Production Report .............................................................................................7 Minority and Women Owned Business Study .........................................................9 Strategic Plan FY20-23.......................................................................................10 Attachment A....................................................................................................13

Members of the Commission
Christopher Edwards, MD, Chair Danielle Benson, Vice Chair William Bornstein, MD Jason Hockenberry, PhD William Prather, R.Ph Judith Rochon, MD Charles Welch, Jr.
Commission Staff
Andrew Turnage, Executive Director Jansen Head, General Counsel Perry Walden, Regulatory Compliance Manager 2 Alex Wood, Regulatory Compliance Manager 2
Seven members serve on the Commission: the Chair and two members are appointed by the Governor, two members are appointed by the Lieutenant Governor, and two members are appointed by the Speaker of the House. The Commission has held five meetings in FY22 including two (2) Special Called Commission meetings, the first to validate the scores of the Competitive Application Request for Proposals for Class 1 and Class 2 Production Licenses ("RFP") and the second to announce the Notice of Intent to Award Contracts for Class 1 and Class 2 licenses. The Commission has one office location headquartered at 7 Martin Luther King Jr. Drive in Atlanta, Georgia 30334.
Georgia Access to Medical Cannabis Commission 2021 Annual Report 1

Mission Statement
The Mission of the Georgia Access to Medical Cannabis Commission is to develop, regulate, and position the cannabis industry in Georgia to be a producer of quality, accessible medicine, and a global leader in patient outcomes through cannabis treatments and research.
Vision Statement
The vision of the Georgia Access to Medical Cannabis Commission is to ensure a stable, efficient, and carefully regulated system of in-state cannabis cultivation and cannabis dispensaries to provide access to quality medicine for those patients authorized by Georgia law, to ensure active participation by minority, women, and veteran owned businesses in the industry, and to expand small business opportunities and rural development in Georgia's Tier 1 and Tier 2 counties.
Purpose & History of the Commission
The purpose of Georgia's Hope Act, O.C.G.A. 16-12-200 et seq., is to allow the legitimate medical use of cannabis for health care, including palliative care. The Act does not in any way diminish this state's strong public policy and laws against illegal drug use, nor should it be deemed in any manner to advocate, authorize, promote, or legally or socially accept the use of marijuana for children or adults for any non-medical use. The Act charges the Commission with regulatory oversight of cannabis cultivation and production which includes the application and licensing of production facilities, dispensaries, and designated Universities. The Commission oversees the production of low-THC oil and products, dispensing, seed-to-sale tracking, quality assurance, laboratory testing, transportation, complaint investigations, and facility inspections. The Commission encourages active participation by minority, women, and veteran owned businesses and economic development in Tier 1 and Tier 2 counties.
The Commission regulates secure, indoor facilities to grow medical cannabis for the production of low-THC oil and products, as well as the retail dispensing of products to qualifying individuals on the Low-THC Oil Patient Registry maintained by the Georgia Department of Public Health. A Class 1 license allows for 100,000 square feet of production and a Class 2 license allows for 50,000 square feet of production. Each of the respective Class 1 and Class 2 licensees will initially be allowed up to five (5) Dispensing Licenses for the purpose of retail sale of low-THC oil and products. As the patient registry grows, additional Dispensing Licenses may be issued.
Georgia Access to Medical Cannabis Commission 2021 Annual Report 2

Collection of Revenue
The Commission receives funding solely through appropriations; application and license fees are remitted to the Treasury upon receipt with no retained funds collection permissible by statute. In FY21, the Commission collected $765,000 in application fees from Class 1 and Class 2 Production License applications. The Commission received 69 Competitive Application Proposals for licensure. The Commission projects revenue collections for FY22 to be $800,000 through the collection of statutory License fees for Class 1 and Class 2 Production Licenses. Class 1 Production License Application Fees are $25,000 with a License Fee of $200,000. Class 2 Production License Application Fees are $5,000 with a License Fee of $100,000.
Budget
For FY23, the Commission budget (projected $908,686) will allow for state employee raises. In 2019, the Governor's Office of Planning and Budget (OPB) signed and approved a Budget Memo for the new Commission to be funded at $1.2 million (see ATTACHMENT A); an additional $292,000 would fully fund the agency as outlined in the 2019 budget memo and provide for additional staff, resources, and necessary office space.
FY19 $225,000 (81% less than the OPB budget memo) FY20 $211,000 (83% less than the OPB budget memo) FY21 $531,000 ($225K + $306K AFY21 - 56% less than the OPB budget memo) FY22 $847,327 ($225K + $622K AFY22 - 29% less than the OPB budget memo) FY23 $908,686 (24% less than the OPB budget memo)
Georgia Access to Medical Cannabis Commission 2021 Annual Report 3

Milestones
Since the previous report, the Commission rolled-out a new website, meeting notification system, a virtual chat-bot, and virtual call center in order to increase efficiency, update the public, and better serve Georgia patients. The Commission announced job postings for an attorney, regulatory compliance managers, director of investigations, and paralegal. The Class 1 and Class 2 RFP opened November 23, 2020 and closed on January 27, 2021. The Commission received 69 applications for Class 1 and Class 2 Production Licenses. The Commission evaluated and scored the competitive application submissions. During its duly noticed meeting on July 7, 2021, the Commission reviewed and validated its scores for the Class 1 and Class 2 applicants. The Commission issued Notices of Intent to Award license contracts to six (6) apparent successful applicants at its duly noticed meeting on July 24, 2021. During this public meeting, the Commission voted to designate the Executive Director as the hearing officer for the post-award protest process. In August of 2021, twenty-two written protests to the Commission's Notices of Intent to Award were received and the hearing officer began the post-award protest process. Following the requirements set forth in the RFP application instructions, RFP Post-Award Protest Procedures, and the Georgia Procurement Manual, the hearing officer has conducted pre-hearings for all interested applicants who filed Post-Award Protests as of December 2021 and conducted a few hearings following such pre-hearings. The hearing officer is on track to complete the post-award protest hearings in FY22 which would enable the Commission to issue a Notice of Award and complete the initial Class1 and Class 2 production licensing process.
Georgia Access to Medical Cannabis Commission 2021 Annual Report 4

Proposed Legislative Changes O.C.G.A. 16-12-203(9)
[The Commission shall] "...study the provision of low THC oil in this state to determine the best practices and methods of providing such services, to determine what changes are needed to improve the provision of low THC oil, and to report any proposed legislative changes to the General Assembly each year;" O.C.G.A. 16-12-203(9)
As required by the Georgia's Hope Act, the Commission recommends legislative changes annually, if necessary. The Commission makes the following recommendations:
Additional Production Licenses
At the July 2021 Meeting, the Commission recommended requesting legislation to issue additional production licenses. The Commission has worked with the General Assembly to consider legislation for additional licenses.
Clean-Up
O.C.G.A 16-12-221(a) currently allows for the commission to issue an additional Class 1 production license pursuant to Code Section 16-12-214 but currently fails to include the provision under Code Section 16-12-214 to issue two additional Class 2 production licenses: "or the commission issues an additional Class 1 production license pursuant to Code Section 16-12-214." The Commission recommends amending the language of O.C.G.A 16-12-221 (a) to align with the Class 2 production license provisions outlined in Code Section 16-12-214:
Georgia Access to Medical Cannabis Commission 2021 Annual Report 5

O.C.G.A 16-12-221(a): Add the words "or two additional Class 2 production licenses". After issuance of two initial class one production licenses pursuant to code section 16-12-211 and four initial class two production licenses pursue it to code section 16-12-212, and in the event that the commission revokes a class one or class two production license, a class one or class two production license is surrendered for any reason, or the commission issues an additional Class 1 "or two additional Class 2 production licenses" pursuant to Code Section 16-12-214, the commission shall be authorized to issue any replacement Class 1 or Class 2 production licenses in accordance with the rules and regulations established by the commission for such purpose.
Georgia Access to Medical Cannabis Commission 2021 Annual Report 6

Production Report O.C.G.A 16-12-204(c)(2)
" The commission shall provide the information collected pursuant to this subsection for the previous calendar year in the form of a written report to the Senate Health and Human Services Committee and the House Committee on Health and Human Services no later than February 1 of each year. The commission shall also make a copy of such report available to the public by posting such report on the commission's website. " O.C.G.A. 16-12-204(c)(2)
As required by the Georgia's Hope Act, the Commission reports the following information for the preceding calendar year:
(A) The amount of low THC oil produced by the licensee during each calendar year; No low THC oil has been produced for the calendar year 2021. The Commission issued the Notice of Intent to Award to six (6) companies on July 24, 2021. Upon completion of the Post-Award Protest process, the Commission will issue its Notice of Award for the two Class 1 and four Class 2 licenses.
(B) The details of all production costs, including but not limited to seed, fertilizer, labor, advisory services, construction, and irrigation;
No low THC oil has been produced for the calendar year 2021. The Commission issued the Notice of Intent to Award to six (6) companies on July 24, 2021. Upon completion of the Post-Award Protest process, the Commission will issue its Notice of Award for the two Class 1 and four Class 2 licenses.
(C) The details of any items or services for which the licensee subcontracted and the costs of each subcontractor directly or indirectly working for the licensee;
No low THC oil has been produced for the calendar year 2021. The Commission issued the Notice of Intent to Award to six (6) companies on July 24, 2021. Upon completion of the Post-Award Protest process, the Commission will issue its Notice of Award for the two Class 1 and four Class 2 licenses.
(D) The amount of therapeutic chemicals produced resulting from the low THC oil manufactured pursuant to this Georgia Access to Medical Cannabis Commission 2021 Annual Report 7

article; No low THC oil has been produced for the calendar year 2021. The Commission issued the Notice of Intent to Award to six (6) companies on July 24, 2021. Upon completion of the Post-Award Protest process, the Commission will issue its Notice of Award for the two Class 1 and four Class 2 licenses.
(E) The amounts paid each year to the licensee related to the licensee's production of low THC oil manufactured pursuant to this article; and No low THC oil has been produced for the calendar year 2021. The Commission issued the Notice of Intent to Award to six (6) companies on July 24, 2021. Upon completion of the Post-Award Protest process, the Commission will issue its Notice of Award for the two Class 1 and four Class 2 licenses.
(F) The amount of low THC oil distributed to each dispensing licensee to dispense low THC oil in this state during each calendar year. No low THC oil has been produced for the calendar year 2021. The Commission issued the Notice of Intent to Award to six (6) companies on July 24, 2021. Upon completion of the Post-Award Protest process, the Commission will issue its Notice of Award for the two Class 1 and four Class 2 licenses.
Georgia Access to Medical Cannabis Commission 2021 Annual Report 8

Minority and Women Owned Business Study O.C.G.A 16-12-214(a) and (b)
"Beginning January 1, 2022, the commission shall undertake a retrospective study of the participation of minority and women owned businesses as licensees under this part for the period from January 1, 2020, through December 31, 2021. Thereafter, the commission shall conduct such study every four years for the immediately preceding four-year period. The initial and subsequent studies conducted pursuant to subsection (a) of this Code section shall identify any proof of discrimination based on race or gender in the issuance of licenses under this part." O.C.G.A. 16-12-204(c)(2) No licenses were issued under Part 2 of the Georgia's Hope Act by the Commission for the period from January 1, 2020, through December 31, 2021. As required by the Georgia's Hope Act, the Commission will undertake a retrospective study of the participation of minority and women owned businesses as licensees issued under Part 2 of the statute every four years: 2022, 2026, 2030, 2034, 2038, 2042, etc.
Georgia Access to Medical Cannabis Commission 2021 Annual Report 9

Strategic Plan FY20-23
GOALS
The Georgia Access to Medical Cannabis Commission will: 1) Implement rules and procedures to develop a best-in-class state level medical cannabis program; 2) Ensure efficient processes and systems for application, licensure, and renewal; and 3) Maintain safe, healthy patient outcomes through production and dispensary compliance.

MEASURES

Policy Area: Small Business Growth

Goal:

The Georgia Access to Medical Cannabis Commission will develop a best-in-class state level medical cannabis program.

Measure:

Small Business development in Rural Georgia Minority, Women, and Veteran Owned business in Georgia

Steps:

Receive, review, and process applications for licensure, and annual renewal, to ensure small business development and continuation in Tier 1 and Tier 2 counties in Georgia.

Georgia Access to Medical Cannabis Commission 2021 Annual Report 10

Monitor and review business ownership for compliance with requirements to be Georgia-owned, employing a minimum of twenty percent minorities, women, and veterans and/or a significant supply-chain component of the operation is minority-, women-, or veteran-owned.

Policy Area: Efficient Government

Goal:

The Georgia Access to Medical Cannabis Commission will ensure efficient processes and systems for application, licensure, and renewal

Measure: Develop and maintain accessible, secure communication Develop and maintain accessible and secure systems

Steps:

Implement new agency website in FY20-21 Implement new virtual call center in FY20-21 Implement new virtual meeting notification system in FY20-21 Implement new online application system in FY20-21 Implement new virtual online meeting system with streaming audio/video for improved transparency
and accessibility Review initial applications for Class 1 and Class 2 production licensure and annual renewal within 60
days, with a processing goal of 30 days Open production licenses that are transferred, not renewed, revoked or otherwise not Active within 90
days for application

Georgia Access to Medical Cannabis Commission 2021 Annual Report 11

Policy Area: Health and Safety

Goal:

The Georgia Access to Medical Cannabis Commission will maintain safe, healthy patient outcomes through production and dispensary license compliance with the law.

Measure:

Regular monitoring of production operations and dispensing Annual and random quality assurance testing Process and investigate complaints

Steps:

Select, establish, and maintain seed-to-sale tracking system(s) Select, establish and maintain laboratory quality assurance testing Monitor seed-to-sale data on a monthly basis and investigate discrepancies in chain of custody. Monitor quality assurance reports Coordinate with the Georgia Bureau of Investigation and the Georgia Drugs and Narcotics agency, as
well as local law enforcement for annual chain of custody and quality assurance inspections Conduct annual oil quality assurance and operations inspections

*** END OF ANNUAL REPORT*** (ATTACHMENTS FOLLOW)

Georgia Access to Medical Cannabis Commission 2021 Annual Report 12

ATTACHMENT A Georgia Access to Medical Cannabis Commission 2021 Annual Report 13

Georgia Access to Medical Cannabis Commission 2021 Annual Report 14

Georgia Access to Medical Cannabis Commission 2021 Annual Report 15