Ohio Marijuana Laws in 2024

The cannabis industry in Ohio is undergoing significant changes as the state continues to refine its marijuana laws. The cannabis market in Ohio has shown substantial growth since the legalization of medical marijuana: in 2023, the market generated approximately $403 million in sales, and with the introduction of recreational marijuana, it is projected to reach $1.65 billion by 2027. Understanding the current regulatory landscape is crucial for anyone involved in or looking to enter the cannabis market. This comprehensive guide provides an in-depth look at Ohio’s marijuana laws in 2024, covering the latest legislation, licensing processes, regulations for medical and recreational cannabis, and more.

With the passage of new laws in mid-2024, Ohio has expanded its cannabis regulations to include both medical and recreational use. This guide will help you navigate the complexities of Ohio’s cannabis industry, whether you are a business owner, a potential investor, or a consumer. We will cover key topics such as licensing requirements, tax obligations, social equity programs, packaging and labeling standards, and compliance with state regulations.

Legalization Status and Overview 

As of mid-2024, Ohio’s legalization of both medical and recreational marijuana follows a series of legislative changes, culminating in the passage of comprehensive cannabis regulations by the Ohio Senate. The new laws permit adults aged 21 and over to purchase and possess cannabis, marking a significant shift in the state’s approach to marijuana.

Ohio’s marijuana laws are designed to create a well-regulated market that ensures consumer safety and product quality. The Ohio Department of Commerce and the Division of Cannabis Control oversee the implementation and enforcement of these laws. These bodies are responsible for issuing licenses, setting operational standards, and conducting inspections to ensure compliance.

The legalization includes provisions for home cultivation, allowing residents to grow up to 12 plants per household. Additionally, the state has established clear guidelines for possession limits:

• Recreational Possession Limits: the amount of cannabis that may be possessed, transferred, or transported by a non-medical consumer is 15 grams of extract and 2.5 ounces of another form. 
• Medical Possession Limits: patients should not exceed the maximum 90-day possession limit established in law. 90-day recommendation is divided into two 45-day fill periods – First Fill Period: Days 1-45; Second Fill Period: Days 46-90.
  The first fill period starts when the patient receives the recommendation. A patient can purchase up to a 45-day supply of medical marijuana in each 45-day fill period. Purchases can be made at any time within the fill period. If the 45-day supply is exhausted, the patient must wait for the next fill period to buy more. Patients are not required to buy the full 45-day supply and can purchase less. 

The minimum purchase includes 2.83 grams of cannabis, 295 milligrams of THC in topical form, 110 milligrams of THC in ingestible forms like oils, capsules, or edibles (with each edible containing 50 milligrams of THC), or 590 milligrams of THC for vaporization. Cannabis is categorized into two tiers based on THC content: tier-one includes smokable cannabis with up to 23% THC, while tier-two contains cannabis with THC levels above 23% but below 35%. For a 90-day period, the supply limit is up to 8 ounces for tier-one cannabis, 5.3 ounces for tier-two, 26.55 grams of THC in topicals, 9.9 grams in ingestibles, and 53.1 grams of THC in vape oil. Patients with terminal illnesses are granted access to an increased supply, which consists of no more than 10 ounces of tier-one cannabis, 6.6 ounces of tier-two, 33.3 grams of THC in topicals, 11.7 grams in ingestibles, and 65.7 grams of THC in vape oil.

Patient Qualifying Conditions

Medical marijuana is permitted only for patients who are prescribed medical cannabis by a doctor for treatment of these qualifying conditions: 

Cancer, PTSD, traumatic brain injury, chronic or severe pain, CTE, Parkinson’s, Alzheimer’s, HIV/AIDS, amyotrophic lateral sclerosis, Crohn’s disease, epilepsy/seizure disorder, fibromyalgia, glaucoma, hepatitis C, inflammatory bowel disease, multiple sclerosis, sickle cell anemia, spinal cord disease or injury, Tourette’s, and ulcerative colitis.

Only doctors authorized by the State Board of Ohio are allowed to recommend medical marijuana. They must review patients’ prescriptions over the past month and discuss the risks and benefits of treating their conditions with cannabis. As of March 2019, nearly 450 physicians were allowed to make these recommendations.

Medical marijuana patients and caregivers must be authorized to purchase, possess, and use medical cannabis by the State Board of Pharmacy. Authorized patients and caregivers are given registry cards and photo IDs, which they must produce when purchasing cannabis at a licensed Ohio dispensary. They are valid for one year. 

Note: Marijuana laws in Ohio, like those in many other states, are often updated. The information in this document is intended for general knowledge only and should not be taken as legal advice. To ensure you have the most recent details, please consult the official resources provided by the state.

Dispensary Laws and Regulations

Ohio has established comprehensive regulations for the operation of medical and recreational cannabis dispensaries. These are designed to ensure consumer safety, product quality, and compliance with state standards.

• Retail and Dispensaries: The issuance of new adult-use dispensary licenses has the potential to grow businesses substantially. The DCC will issue up to 50 additional dispensary licenses, prioritizing applicants who qualify under the Social Equity and Jobs Program. The DCC issued initial non-medical cannabis licensure applications on June 7, 2024. According to the initiated statute approved by Ohio voters, the initial applications are only open to current medical marijuana license holders. 
• Cultivation and Processing: Ohio will also issue new cultivation and processing licenses, including up to 40 level III adult-use cultivator licenses. This opens up opportunities for businesses to cultivate and produce cannabis products.

General Dispensary Requirements:

• Licensing: Dispensaries must obtain and maintain valid licenses from the Ohio Department of Commerce.
• Security: Dispensaries are required to implement robust security measures, including surveillance cameras, alarm systems, and secure storage for cannabis products.
• Staff Training: Employees must undergo training on state laws, product knowledge, and customer service.

Operational Standards:

• Hours of Operation: Dispensaries are permitted to operate between 7 a.m. and 9 p.m. They must be open for at least 35 hours per week and have at least two employees present during operating hours.
• Product Testing: All cannabis products must undergo testing by state-licensed laboratories to ensure they meet safety and potency standards.
• Inventory Control: Dispensaries must use the METRC system for seed-to-sale tracking and maintain accurate records of all transactions.

Packaging and Labeling Requirements:

• Child-Resistant Packaging: All cannabis products must be sold in child-resistant packaging to prevent accidental ingestion.
• Labeling: Labels must include detailed information about the product, including THC content, ingredients, and health warnings. Additionally, packaging must display the dispensary’s name, license number, and batch number for traceability.

Compliance and Inspections:

• Regular Inspections: The Division of Cannabis Control conducts regular inspections of dispensaries to ensure compliance with state laws and regulations.
• Penalties: Non-compliance can result in fines, license suspension, or revocation, emphasizing the importance of adhering to regulatory standards.

Dispensary Licensing Process and Fees 

Obtaining a license to operate a cannabis business in Ohio involves a detailed application process overseen by the Ohio Department of Commerce and the Division of Cannabis Control. The state has implemented a dual-licensing system, requiring separate licenses for medical and recreational cannabis operations.

Application Process:

1. Pre-Application Preparation:
   • Potential applicants must conduct thorough research and prepare detailed business plans, including security measures, inventory control systems, and financial projections.
   • Applicants must secure a suitable location compliant with zoning regulations.
2. Application Submission:
   • Applications must be submitted through the Ohio Department of Commerce’s online portal.
   • Required documents include proof of financial stability, detailed business plans, security plans, and background checks for all principal officers.
3. Review and Approval:
   • The Division of Cannabis Control reviews applications, which may include site inspections and interviews.
   • Successful applicants are awarded provisional licenses, allowing them to set up operations in compliance with state regulations.

Fees:

• Application Fee: The non-refundable application fee for a dispensary license is $5,000.
• License Fee: Upon approval, the license fee is $70,000 for a two-year period.
• Renewal Fee: Dispensary licenses must be renewed biennially, with a renewal fee of $70,000.
• Real Estate and Build-out Costs: Securing a suitable location and outfitting it to meet regulatory standards can cost between $200,000 and $500,000. This includes expenses for property acquisition or lease, renovations, and installation of the required security systems.
• Operating Capital: At least $500,000 in operating capital is recommended to cover initial inventory, staffing, and operational expenses.

Important Note: Currently, the Ohio Department of Commerce is not accepting applications for new medical marijuana licenses. For updates, visit the Ohio Department of Commerce.

Applying for a Cannabis License 

Applying for a cannabis license in Ohio involves several steps and requires adherence to strict guidelines set by the Ohio Department of Commerce and the Division of Cannabis Control.

Application Steps:

1. Research and Preparation: Applicants must conduct thorough research and prepare comprehensive business plans, including financial projections, security details, and inventory control systems.
2. Secure a Location: Identify and secure a location that complies with local zoning regulations for cannabis businesses.
3. Submit Application: Applications must be submitted through the Ohio Department of Commerce’s online portal, accompanied by the required documentation and fees.
4. Background Checks: All principal officers and stakeholders must undergo background checks as part of the application process.
5. Provisional License: Successful applicants receive a provisional license, allowing them to establish their operations in compliance with state regulations.
6. Final Inspection and Licensing: Once operational, businesses undergo a final inspection before receiving their official license.

Taxes

Ohio has established a comprehensive tax structure for cannabis sales, aimed at generating significant revenue for the state while supporting regulatory efforts.

Tax Rates:

• Excise Tax: Recreational cannabis sales are subject to a 10% excise tax.
• Sales Tax: In addition to the excise tax, all cannabis sales are subject to the state sales tax of 5.75%, plus any applicable local sales taxes.

The revenue generated from these taxes is allocated to various state programs, including public health initiatives, education, and infrastructure projects. A portion of the tax revenue also funds the administration and enforcement of cannabis regulations, ensuring the industry remains well-regulated and compliant with state laws.

Tracking System

Ohio employs a robust seed-to-sale tracking system to ensure compliance and maintain transparency within the cannabis industry. The state uses the METRC (Marijuana Enforcement Tracking Reporting Compliance) system, which is mandatory for all licensed cannabis businesses.

Key Features of METRC:

• Seed-to-Sale Tracking: METRC tracks cannabis from cultivation through processing and distribution to final sale, ensuring all products are accounted for and meet state regulations.
• Compliance Reporting: The system requires businesses to report detailed information about their operations, including plant inventories, product testing results, and sales transactions.
• Security Measures: METRC includes stringent security protocols to prevent diversion and ensure all cannabis products remain within the legal market.

Compliance Requirements:

• Mandatory Use: All licensed cannabis businesses in Ohio must use the METRC system to track their inventory and report compliance data.
• Training: Businesses must complete METRC training programs to ensure proper use of the system and adherence to reporting requirements.

Social Equity and Jobs Program 

Ohio’s cannabis legalization includes a strong focus on social equity and job creation, addressing historical disparities and promoting inclusivity within the industry.

Social Equity Program:

• Eligibility: The program prioritizes communities disproportionately affected by past marijuana prohibition, and offers grants, low-interest loans, and technical assistance to eligible individuals and businesses.
• Support Services: These include business development training, assistance with licensing applications, and access to legal and financial resources.

Jobs Program:

• Job Creation: The legalization of cannabis is expected to create thousands of new jobs across Ohio, from cultivation and processing to retail and ancillary services.
• Workforce Development: The state provides workforce development programs to train individuals for employment in the cannabis industry, focusing on areas such as cultivation techniques, compliance, and customer service.

By investing in social equity and job creation, Ohio aims to build a diverse and inclusive cannabis industry that benefits a wide range of residents and communities.

Ohio’s commitment to a well-regulated cannabis market, combined with its focus on social equity and economic development, sets a strong foundation for the future. As the industry continues to evolve, staying up to date with regulatory changes and compliance requirements will be essential for success.

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Starting a marijuana business in Ohio? With IndicaOnline, your medical marijuana or adult-use retail store will be an intuitive and user-friendly space, and your staff will find the system easy to learn and use. Once you experience the efficiency and time-saving benefits, you’ll be eager to implement it in your workplace. Contact us today to schedule a consultation and start optimizing your workflow immediately.

Note: Marijuana laws in Ohio, like those in many other states, are frequently updated. The information in this document is intended for general knowledge only and should not be taken as legal advice. To ensure you have the most recent details, please consult the official resources provided by the state.