Cannabis Business in Ohio

On November 7, 2023, Ohio became the 24th state to legalize adult-use cannabis, with sales officially launching on August 6, 2024. The first dispensaries opened their doors, serving both recreational users and medical patients. By the third quarter of 2024, the state’s cannabis industry had already reached $129.8 million in sales. Additionally, Ohio has set aside 50 dispensary licenses and 40 cultivation licenses specifically for social equity applicants, promoting diversity within the industry.

Cannabis Businesses in Ohio

In Ohio, medical cannabis establishments were initially prioritized for dual-use licenses, allowing them to expand into recreational sales alongside their medical operations. While there is no set limit on the number of cannabis licenses, the Division of Cannabis Control monitors the market and can modify the issuance of licenses or introduce caps to maintain a balance between supply and demand.

Medical Dispensaries: As of August 2024, 126 medical dispensaries were operational, with 15 provisional licenses awaiting approval. Medical dispensaries are eligible to receive dual-use licenses, and if they do not own cultivator or processor licenses, they may apply for a separate adult-use dispensary license for a different location.

Level I Cultivators: By August 2024, there were 22 active Level I medical cultivators, plus one provisional license. These larger cultivators are allocated three adult-use dispensary licenses and one adult-use cultivation license.

Level II Cultivators: By 2024, Ohio had 14 operational Level II cultivators. Each Level II cultivator may receive one adult-use dispensary license and one adult-use cultivation license.

Processors: Ohio had licensed 46 medical processors, 45 of which were operational by August 2024. Each processor is eligible to receive an adult-use processing license.

Testing Labs: There were 10 medical testing labs in Ohio by 2024, with 8 of them operational. Each testing lab can receive an adult-use laboratory license.

CBD in Ohio

Legal Status and Regulations

CBD derived from hemp is legal to possess, buy, and sell in Ohio, thanks to the provisions of Senate Bill 57. The key is that the CBD oil must contain less than 3% THC. CBD sourced from marijuana remains illegal in the state.

Licensing and Business Opportunities

While Ohio doesn't require licenses to sell CBD products, there are licensing requirements for those interested in cultivating and processing hemp, the source of CBD. If you’re thinking of starting a cannabis business, or perhaps you’re looking for a cannabis business for sale that involves hemp cultivation or processing, you’ll need to understand the licensing process in Ohio.

Hemp in Ohio

Legal Status

Hemp is fully legal in Ohio. Ohio Senate Bill 57 aligned state law with the 2018 Farm Bill, which federally legalized hemp. This opened the door for a regulated hemp industry in the state.

Licensing

The Ohio Department of Agriculture (ODA) oversees hemp cultivation and processing in Ohio. Those interested in entering the market will need to obtain the appropriate licenses.

Types of Licenses

The ODA issues several types of licenses related to hemp:

• Cultivation License: Required for individuals or entities who want to grow, harvest, and store hemp.
  • Application Fee: $100
  • Annual Fee per Growing Location: $500
  • Site Modification Fee (for each GPS coordinate location change for each growing location): $250
  • Additional Pre-Harvest Sample Fee (for multiple fields, greenhouses, buildings, sites, or varieties grown on the growing location): $150 per sample
• Processing License: Required for those who intend to convert hemp into various hemp products.
  • Application Fee: $100
  • Annual License Fees for Each Processing Site:
    • $500 for processing raw grain.
    • $500 for processing raw fiber.
    • $3,000 for processing the raw floral component (includes extraction facilities and processing and packaging of smokable hemp).
    • $500 for wholesale production of cannabinoids in human and animal food, dietary supplements, cosmetics, and personal care products.
    • $250 for retail production of cannabinoids in the same product categories as wholesale.
• Non-University Researcher License: Permits businesses to grow, handle, test, or store hemp solely for research purposes; selling the hemp is prohibited.
• University License: Similar to the non-university researcher license but specifically for researchers affiliated with Ohio colleges or universities.

Background Checks

Applicants for any of these licenses, including key participants in the business, must undergo both Bureau of Criminal Investigation (BCI) and Federal Bureau of Investigation background checks. Individuals with felony convictions related to controlled substances within the past ten years are ineligible for a license.