Ohio Cannabis Legalization – On the Ballot

Adult-Use Marijuana Program Overview

 

A Marijuana bill, House Bill 268, is making its way through legislation in hopes of legalizing adult-use marijuana in the state of Ohio. If passed, it will permit Ohio residents to use adult-use marijuana by the vaporization, smoking, or combustion of marijuana by adult-use consumers. The smoking or combustion of adult-use marijuana will still be prohibited. The vaporization of adult-use marijuana is permitted. The state board department of pharmacy commerce may approve additional methods of using adult-use marijuana other than smoking or combustion. An entity that seeks to cultivate or process adult-use marijuana or to conduct laboratory testing of adult-use marijuana shall file an application for licensure with the Department of Commerce. The entity shall file an application for each location from which it seeks to operate. The state board department of pharmacy commerce will further develop rules and regulations outlining an adult use program if the bill is passed in the next session.

 

Adult-Use Marijuana License Information

Marijuana Business Types

 

The legislative authority of a municipal corporation may adopt an ordinance, or a board of township trustees may adopt a resolution, to prohibit, or limit the number of, cultivators, processors, or retail dispensaries licensed under this chapter within the municipal corporation or within the unincorporated territory of the township, respectively.

 

Processor License – A licensed processor may do any of the following:

• Obtain marijuana from one or more licensed cultivators, processors, or retail dispensaries
• Process marijuana obtained from one or more licensed cultivators
• Deliver or sell processed marijuana to one or more licensed retail dispensaries.

 

The state board of pharmacy department of commerce is to issue a sufficient number of processor licenses to ensure an adequate supply of marijuana and marijuana;

 

Cultivator License – A licensed cultivator may do either of the following:

• Cultivate marijuana, including the acquisition of seeds or clones necessary to begin cultivation of a particular cultivar or strain of marijuana;
• Deliver or sell marijuana to one or more licensed processors or retail dispensaries.
• Level I cultivators shall be permitted to expand to a marijuana cultivation area of up to one hundred thousand square feet;
• Level II cultivators shall be permitted to expand to a marijuana cultivation area of up to fifteen thousand square feet.

 

The state board of pharmacy department of commerce is to issue a sufficient number of cultivator licenses to ensure an adequate supply of marijuana and marijuana;

 

 

Testing Laboratory License – A licensed laboratory may do both of the following:

• Test the marijuana for potency, homogeneity, and contamination;
• Prepare a report of the test results.

 

The state board of pharmacy department of commerce are to issue a sufficient number of testing laboratory licenses to ensure cultivators and processors are able to receive reliable and timely testing results.

 

 

Retail Dispensary License – A licensed retail dispensary may do any of the following:

• Obtain marijuana from one or more cultivators, processors, or other retail dispensaries, if the retail dispensaries have common ownership;
• Dispense or sell marijuana and paraphernalia in accordance with division
• Beginning two hundred forty days after the effective date of this amendment, dispense or sell marijuana and paraphernalia to adult consumers
• Deliver marijuana, marijuana, paraphernalia, and accessories specified in the rules adopted to registered patients and adult consumers.

 

Prior to January 1, 2027, the department shall not issue more than one retail dispensary license per sixty thousand residents of this state. After January 1, 2027, the department shall review the number of licensed retail dispensaries on at least a biennial basis. After review, the department may license additional retail dispensary licenses.

 

When establishing the number of retail dispensary licenses that will be permitted at any one time the state board of pharmacy department of commerce shall consider:

• The population of this state;
• The number of patients seeking to use marijuana;
• The number of potential adult use consumers;
• The geographic distribution of dispensary sites in an effort to ensure access to marijuana.

 

No more than one license per 60,000 state residents would be permitted to be issued before January 1, 2027 (based on the state’s 2021 population of 11.78 million, which translates to no more than 196 licenses statewide). After January 1, 2027, the DOC would be required to review the number of licensed retail dispensaries on at least a biennial basis to determine whether additional licenses should be issued.

 

The state board of pharmacy department of shall not prohibit any person from either of the following:

• Influencing or controlling the activities of more than one cultivator, processor, or retail dispensary license issued pursuant to this chapter;
• Holding an ownership, investment, or other financial interest in more than one cultivator, processor, or retail dispensary license issued pursuant to this chapter.

 

FEES

The board of Commerce will establish and adopt application procedures and fees for licenses it issues.

 

LICENSE REQUIREMENTS

An entity that seeks to cultivate, dispense marijuana at retail, or process marijuana or to conduct laboratory testing of marijuana shall file an application. The department shall issue a license to an applicant if all of the following conditions are met:

 

• The report of the criminal records check conducted with respect to the application demonstrates that the person subject to the criminal records check requirement has not been convicted of or pleaded guilty to any of the disqualifying offenses specified in rules adopt.
• The applicant demonstrates that it does not have an ownership or investment interest in or compensation arrangement with any of the following:
  • A laboratory licensed under this chapter;
  • An applicant for a license to conduct laboratory testing.
• The applicant demonstrates that it does not share any corporate officers or employees with any of the following:
  • A laboratory licensed under this chapter;
  • An applicant for a license to conduct laboratory testing.
• The applicant demonstrates that it will not be located within five hundred feet of a school, church, public library, public playground, or public park.

Applicants will be subject to criminal record checks & must not have been convicted of a list of disqualifying criminal offenses to be determined by the board of pharmacy.

 

• Must submit proof of having been a resident of OH for the five-year period immediately prior to the date the criminal records check is requested or provide evidence that within that five-year period the superintendent of the bureau of criminal identification and investigation has requested information about the person from the federal bureau of investigation in a criminal records check

 

• the department or board shall request that the person obtain through the superintendent a criminal records request from the federal bureau of investigation as part of the criminal records check of the person. Even if a person presents proof of having been a resident of this state for the five-year period, the department or board may request that the person obtain information through the superintendent from the federal bureau of investigation in the criminal records check.

 

Program Timeline

• Beginning two hundred forty days after the bill’s effective date, a retail license may dispense or sell marijuana and paraphernalia to adult consumers.

 

Are you interested in obtaining a cannabis business license in Ohio? Call us to speak with an industry expert at 602-290-9424.

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