Open a Marijuana Dispensary in Ohio

Open a Marijuana Dispensary in Ohio

Admin
MAY 10TH, 2021

How to open a marijuana dispensary in Ohio?

The state of Ohio passed House Bill 523, effective on September 8, 2016, legalizing  medical marijuana in Ohio. The Ohio Medical Marijuana Control Program (OMMCP) will allow people with certain medical conditions, upon the recommendation of an Ohio-licensed physician certified by the State Medical Board, to purchase and use medical marijuana. Access to medical cannabis is through state licensed businesses that are allowed to grow, manufacture and sell medical cannabis. In 2017 Ohio opened its licensing period for cannabis businesses. Between 2017 and 2018, 57 dispensaries were issued provisional licenses and 52 out of the 57 have been issues certificates to operate. As the number of registered patients have steadily increased over the years, the Ohio state Board of pharmacy approved to issue 73 additional dispensary licenses to cater to the increasing demand. This will bring the total of statewide dispensaries to 130. 

In Ohio, marijuana dispensaries are allowed to obtain medical marijuana from one or more processors and dispense or sell it to patients. The application process is expected to be announced this spring or summer, pending final rule changes by the Board.

Overview of Ohio’s Medical Marijuana Program 

Medical Marijuana Program Overview

The state of Ohio passed House Bill 523, effective on September 8, 2016, legalizing  medical marijuana in Ohio. The Ohio Medical Marijuana Control Program (OMMCP) will allow people with certain medical conditions, upon the recommendation of an Ohio-licensed physician certified by the State Medical Board, to purchase and use medical marijuana. Access to medical cannabis is through state licensed businesses that are allowed to grow, manufacture and sell medical cannabis.

Qualifying Medical Conditions:

  • Acquired immune deficiency syndrome
  • Alzheimer’s disease
  • Amyotrophic lateral sclerosis
  • Cancer
  • Chronic traumatic encephalopathy
  • Crohn’s disease
  • Epilepsy or another seizure disorder
  • Fibromyalgia
  • Glaucoma
  • Hepatitis C
  • Inflammatory bowel disease
  • Multiple sclerosis
  • Pain that is either of the following: Chronic and severe; Intractable
  • Parkinson’s disease
  • Positive status for HIV
  • Post-traumatic disorder
  • Sickle cell anemia
  • Spinal cord disease or injury
  • Tourette’s syndrome
  • Traumatic brain injury
  • Ulcerative colitis
  • Cachexia 

 

Regulating Department:

Under House Bill 523, the Department of Commerce is responsible for the licensure of cultivators, processors, and testing laboratories, while the Board of Pharmacy is charged with the licensure of retail dispensaries and the registration of patients and caregivers. In the case of physicians, the State Medical Board is to issue certificates to those seeking to recommend treatment with medical marijuana. On April 19, 2021 The State of Ohio Board of Pharmacy has approved increasing the number of state dispensary licenses by 73, bringing the total allowed to 130 statewide. The application process will be released this spring or summer, pending changes to the rules by the Board of pharmacy. When the application process is announced, the OMMCP will post more information regarding the application process on its website.

Marijuana Business Overview

Types of Marijuana Businesses:

Ohio Medical Cannabis Cultivator: 

  • Allowed to grow medical marijuana and deliver or sell it to one or more processors 
  • Level I cultivators are permitted to operate an initial marijuana cultivation area up to 25,000 square feet. 
    • The state issued 20 Level I cultivators’ provisional licenses, and 15 have been issued Certificates of operation.
  • Level II cultivators are permitted to operate an initial marijuana cultivation area of 3,000 square feet. Licensees may submit an expansion request pursuant to the cultivators’ rules. 
    • The state issued 14 Level II cultivators’ provisional licenses and 12  have been issued Certificates of operation.
  • The current application period for cultivators is closed.

 

Ohio Medical Cannabis Processor:

  • A processor manufactures medical marijuana products. There are three types of processors 
    • Standalone
    • Vertically integrated facilities
    • Plant-only processor (cultivator who distributes plant material directly to dispensaries)
  • The holder of a processor license may do any of the following: 
    • Obtain medical marijuana from one or more licensed cultivators. 
    • Process medical marijuana obtained from a cultivator into a form that may be dispensed.
    • Deliver or sell processed medical marijuana to one or more licensed retail dispensary. 
  • When processing medical marijuana, a licensed processor must package it according to federal child-resistant effectiveness standards in effect in the bill’s effective date. 
  • A processor must also label the packaging with the product’s tetrahydrocannabinol and cannabidiol content and comply with any packaging or labeling requirements established in rules adopted by the Department of Commerce.
  • The state issued 48 Processor provisional licenses and 30 have been issued Certificates of operation.
  • The current application period for processors is closed. 

 

Ohio Medical Cannabis Testing Labs: 

  • Allowed to obtain medical marijuana from licensed cultivators, processors, and retail dispensaries and may conduct testing on the marijuana.
  • When testing, a licensed laboratory must test for potency, homogeneity, and contamination and prepare a report of test results. 
  • There is no limit to the number of testing lab licenses that may be awarded by the department. 
  • Testing laboratories include both universities and private labs 

 

Ohio Medical Cannabis Dispensary: 

  • Allowed to obtain medical marijuana from one or more processors and may dispense or sell it to patients. 
  • The state issued 57 Dispensary provisional licenses and 52 have been issued Certificates of operation.
  • There will be 73 additional dispensary licenses released in 2021 to accommodate the growing number of patients. The application process is expected to be announced this spring or summer, pending final rule changes by the Board. 

 

Program Timeline

  • 2016 – Governor John Kasich signed House Bill 523 to legalize the medicinal use of cannabis in Ohio. 
  • 2017 – Ohio licensing period for cannabis businesses. 
  • 2019 – First Ohio medical cannabis businesses opened, and medical cannabis sales began. 
  • 2020 – Ohio State Medical Board approved adding cachexia to approved conditions.
  • April 2021 – The board of Pharmacy approved increasing the number of state dispensary licenses by 73, now totaling 130. 
  • TBD – The Ohio Medical Marijuana Control Program will be releasing details on the application process for additional dispensary licenses in the coming months.

 

We have successfully secured licenses for clients in over 20 markets across the United States. Call (602)-290-9424‬ of email info@thecannabisbusinessadvisors.com for more information on how to help you open a dispensary in Ohio.

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