Ohio Marijuana Cultivation License

Does Ohio Require Marijuana Growers to Obtain Cultivation License?

Yes. According to the provisions of House Bill 523, persons looking to grow medical marijuana must obtain cultivation licenses before they can operate legally in Ohio. The Ohio Department of Commerce issues licenses to medical cannabis cultivators, manufacturers, and testing laboratories.

House Bill 523 prohibits medical marijuana growers from cultivating cannabis on any public land or within 500 feet of a public library, school, daycare center, public park, church, or public playground. Licensed marijuana growers are permitted to grow cannabis and sell or deliver it to processors within the state. However, the provisions of House Bill 523 restrict them from growing cannabis for personal use. In addition, Title 37, Chapter 3796 of the Ohio Revised Code, authorizes the Department of Commerce to issue cannabis cultivation licenses based on the number of qualifying patients applying for marijuana cards. The Department also considers the total Ohio population when issuing cultivator licenses.

Recently, Ohio created a Division of Cannabis Control in the Ohio Department of Commerce to issue non-medical cannabis licenses. Licensed cannabis cultivators can apply to the DCC for conversion to dual-use cannabis licenses, allowing them to grow medical and non-medical cannabis.

What Are the Different Types of Cultivation Licenses in Ohio?

The Ohio Department of Commerce issues two types of cannabis cultivation licenses to intending cultivators of medical cannabis under the state’s Medical Marijuana Control Program. The Ohio medical cannabis cultivation license is issued in the following categories:

• Level I cultivator licenses: Holders of level I cannabis cultivator licenses are authorized to grow marijuana on a maximum cultivation area of 25,000 square feet
• Level II cultivator licenses: Level II marijuana cultivators are authorized to grow cannabis on an initial cultivation area spanning 3,000 square feet

However, both level I and level II cultivators can apply for an expansion (allowing them to grow cannabis in a larger cultivation area) with the Department of Commerce. Medical marijuana cultivation licenses are valid for one year. Hence, licensees must renew their licenses annually.

Also, following the legalization of recreational cannabis in the state, the Division of Cannabis Control in the Ohio Department of Commerce issues a dual-use cannabis license to permit the cultivation of non-medical cannabis.

Who Can Grow Marijuana in Ohio?

Although medical marijuana is legal in Ohio, only licensed cannabis cultivators can grow marijuana plants legally. To qualify for a marijuana cultivation license in Ohio, an applicant must be at least 21 years old. According to Section 4776.04 of the Ohio Revised Code, prospective employees of cannabis farms must consent to criminality checks. They must be at least 21 years old and obtain identification cards from the Department of Commerce before working in a marijuana cultivation facility. Also, per Section 3796.13 of the Ohio Revised Code, convicted felons are prohibited from working in cannabis cultivation facilities in Ohio.

In addition, recreational cannabis is legal in the state. However, only currently licensed medical cannabis cultivators who have applied for the conversion of their current medical cannabis cultivation license to a dual-use cannabis license can grow recreational cannabis legally.

How to Get a Marijuana Cultivation License in Ohio

Prospective medical marijuana growers in Ohio can apply for licenses with the Ohio Department of Commerce. The provisions of Chapter 3796:2-1 of the Ohio Administrative Code authorize the Department to establish application periods. The Department must notify the public in advance about the times and dates when they will start accepting applications. However, the Ohio Department of Commerce Director reserves the right to amend the application notice before the submission deadline. The Director may also cancel an application notice before the scheduled period begins.

All applications must be in line with the provisions of Chapter 3796 of the Ohio Revised Code. Generally, for both level I and level II cultivator licenses, applicants must submit the following to the Ohio Department of Commerce:

• A non-refundable license application fee as stipulated in Rule 3796:5-1-01 of the Ohio Administrative Code. Level I cultivator license applicants must pay $20,000, while level II applicants pay $2,000 as application fees. They can make payments via either money orders or certified checks payable to the Ohio Treasurer of State.
• A business plan: This is required to provide information on an applicant’s business experience and their ability to manage the proposed cultivation facility. It should state the business entity type, proof of registration with the Ohio Secretary of State, proposed facility location, and personal details about the applicant and other key employees of the facility.
• Operations plan: This section should provide information about the proposed production schedule, product timeline, cultivation method, and an applicant’s experience in agriculture. The operations plan must also show the proposed business’s policies and measures to ensure the safety, security, and sustainability of the medical cannabis cultivation process.
• Quality assurance plan: It should state the proposed facility’s labeling and packaging plans to ensure it complies with Chapter 3796:8-2 of the Ohio Administrative Code. The quality assurance plan should describe the proposed facility’s measures to ensure a safe and uninterrupted supply of medical cannabis. It should include the inventory control plan, packaging plan, and the facility’s recall procedures in the event of product expiration or contamination
• Security plan: This should describe the applicant’s measures to prevent theft of medical marijuana, diversion of products, and protect facility staff. It must include the facility’s security alarm system, record-keeping plans, transportation plan, and plot plan illustrating the various areas of the establishment and places with restricted access.
• Financial plan - The financial plan should show the licensee’s financial ability to operate the cultivation facility. It should break down the anticipated running costs of the cultivation and funding sources. Also, the plan should prove that the applicant can comply with the financial responsibility requirements as stipulated in Rule 3796:2-1-05 of the Ohio Administrative Code
• Proof that the prospective licensee either owns or obtained a lease of the property where the business will be situated. The property lease or ownership document must not have any use limitations that may restrict the applicant from running their cannabis cultivation facility
• A location map of the area around the proposed cannabis cultivation facility, proving that it is at least 500 feet away from public parks, schools, and other public spaces as stipulated in Rule 3796:5-5-01 of the O.A.C. Maps such as satellite images and street maps are acceptable. Also, applicants must clearly label their maps to fulfill this requirement
• Documentation proving that the applicant has sufficient funds under the proposed establishment’s control for operating the facility. For level I cultivator licenses, the minimum amount required is $500,000, while at least $50,000 is required for level II cultivator licenses. The Ohio Department of Commerce accepts signed statements attesting to the fund's availability from licensed, certified public accountants within the state. Note that the accountant must issue the report within the thirty days preceding the license application date
• The applicant’s tax payment records three years before the application date. The Department of Commerce may also request the tax payment history of each individual or entity with over 1% ownership in the proposed cultivation facility
• Proof of criminal background checks of the applicant and each board member of the proposed marijuana cultivation facility in line with the provisions of Section 3796.12 of the Ohio Revised Code. Each person subject to the check must submit a Federal Bureau of Investigation (FBI) and Ohio Bureau of Criminal Identification and Investigation criminal record check
• Details (if any) of instances where the applicant or any board member of the proposed facility was convicted or penalized in an administrative or judicial hearing
• A copy of a previous license if the applicant holds a current or previous marijuana license in another state. The applicant must also issue a statement permitting the Department of Commerce to contact the former licensing authority to verify such information
• Any other information that the Department of Commerce requests from prospective licensees during the application

Applicants must hand-deliver all required documentation and application fees either in person or through a representative to the Medical Marijuana Control Program of the Ohio Department of Commerce at:

Ohio Department of Commerce

Vern Riffe Center

77 South High Street, 23rd Floor

Columbus, OH 43215

Once a license application is approved, the applicant will be issued a provisional level I or level II license, depending on their application type. They can obtain their certificate of operation after paying the applicable fee to the Department of Commerce. Marijuana cultivators must obtain plant-only processor licenses before packaging cannabis plants and distributing them directly to state-licensed dispensaries. Usually, the Department announces the application procedures for plant-only processor licenses to all cultivators.

Upon obtaining a medical cannabis cultivation license, you can apply to obtain a dual-use cannabis license in order to be able to grow non-medical cannabis. Applications for dual-use cannabis licenses opened on June 7, 2024.

Prior to completing a dual-use cannabis license application, applicants are advised to review Chapters 3796 and 3780 of the ORC and Chapter 3796 and proposed 1301:18 of the Ohio Administrative Code. Legal counsel may be sought where necessary.

For an application to be considered complete, an applicant must submit a completed dual-use application, tax authorization form, and applicant attestation by email to DCCApplications@com.ohio.gov with the subject line “Business Name – MMCP License Number – Dual-Use Application.” The email address can accept up to 150 MB of attachments.

Alternatively, you can drop the application packet in the State of Ohio File Drop online. Note that you must enter the recipient email as DCCApplications@com.ohio.gov. After dropping the application packet, email DCCApplications@com.ohio.gov after submitting your files, with the subject line "Business Name - MMCP License Number - Dual-Use Application, and indicate that your files have been submitted in the File Drop.

There is no deadline to submit the dual-use cannabis license application. However, applications will not be reviewed until a completed application is received. Also, there is no fee for submitting a dual-use cannabis license application.

The DCC will review applications in the order in which complete submissions are received. If an application is incomplete, the Division will notify the applicant of the deficiencies, providing 10 business days to address and resubmit the complete application packet. Applications will not be reviewed until all required information is submitted. Once a complete application is submitted, a provisional license will be issued via DCC eLicense. This provisional license will be accessible within your eLicense Account to your Account Administrators and Account Managers. Note that a provisional licensee is not permitted to grow non-medical cannabis.

For more information on applying for a dual-use cannabis license, see the dual-use application instructions, application FAQs, application supplemental guidance document, or send inquiries to DCC@com.ohio.gov.

How Much Do Marijuana Cultivation Licenses Cost in Ohio?

According to the provisions of Rule 3796:5-1-01 of the Ohio Administrative Code, the costs of obtaining medical marijuana cultivation licenses in Ohio differ depending on the license type. The cost implications are:

• Level I cultivator license: A non-refundable $20,000 application fee
• Level II cultivator license: A non-refundable $2,000 application fee

Once the Department of Commerce approves a license application, the prospective licensee must pay the following fee before obtaining their certificate of operation:

• $180,000 certificate of operation fee for level I cultivator licenses
• $18,000 certificate of operation fee for level II cultivator licenses

For annual renewal, licensees must pay the following fees:

• $200,000 certificate of operation renewal fees for level I cultivator licenses
• $20,000 certificate of operation renewal fees for level II cultivator licenses

A $100 fee applies for each marijuana cultivation employee identification card issued by the Department of Commerce for level I and level II cultivation facilities. The employee identification cards must be renewed every two years, and a $100 non-refundable fee applies for each card renewal.

Medical marijuana cultivators with plant-only processor licenses must pay the following additional fees depending on their cultivator license type:

• Level I cultivator: $5,000 when the plant-only processor license is approved and $5,000 for annual renewal of the license
• Level II cultivator: $500 when the plant-only processor license is approved and $500 for annual renewal

Note that there is no fee to apply for the conversion of an Ohio medical marijuana cultivation license for a dual-use cannabis license.

Can Licensed Marijuana Cultivators Hold Other Cannabis Licenses in Ohio?

Per Rule 3796:2-1-02 of the Ohio Administrative Code, persons who apply for level I medical marijuana cultivation licenses are restricted from applying for level II medical marijuana cultivation licenses. Similarly, if a person applies for a level II license, they cannot apply for a level I license. Also, as stipulated in Section 3796.09 of the Ohio Revised Code, cultivation licensees cannot hold cannabis laboratory testing licenses. They are also prohibited from investing in cannabis testing laboratory businesses. Whatever form of medical marijuana license owned by a cannabis entity in Ohio can be converted to a dual-use cannabis license, allowing the licensee to perform the previously authorized medical marijuana operation for recreational cannabis.