Ohio Real Estate & Cannabis Regulations

The legalization of adult-use cannabis in Ohio marks a significant milestone, and the state has crafted a comprehensive licensing framework that prioritizes existing medical marijuana operators while also introducing provisions for social equity. Notably, each current medical marijuana cultivator, processor, and testing laboratory is granted a non-medical cannabis license for cultivation, processing, and testing, respectively, at their current operating location. This seamless transition ensures that established entities can extend their operations to the adult-use market.

Further, existing medical marijuana level I cultivators are granted three additional dispensary licenses, while level II cultivators receive one dispensary license. Current medical marijuana dispensaries are eligible for a non-medical cannabis dispensary license, and those not commonly owned or controlled by cultivators or processors can secure an extra non-medical cannabis dispensary license for new locations through the application process.

Ohio is prohibiting retailers from setting up shop within a 1-mile radius of each other, constituting one of the most extensive buffers in any U.S. recreational market. Given this considerable setback between dispensaries, the state has devised a method to determine the order new adult-use licenses are awarded existing operators through a lottery system . Applicants looking to establish dispensaries must adhere to this regulation and pay a $5,000 application fee during the application process, underscoring the state’s commitment to a controlled and equitable expansion of the adult-use cannabis market.

Additionally, 40 level III cultivator licenses and 50 dispensary licenses will be made available to new applicants with a preference to participants in the state’s Cannabis Social Equity and Jobs Program. This program, slated to be established by the Department of Development, aims to promote inclusivity and economic opportunities in the cannabis industry.

To facilitate the application process, the state has set clear timelines. Application materials for Dual-Use authorized applicants will be published by June 7, 2024, with provisional licenses expected to be issued by September 7th of the same year. The application window for social equity applicants has yet to be announced.

Looking ahead, the legislation mandates a biannual review of the number of cannabis operator licenses by the Division of Cannabis Control after twenty-four months from the first adult-use license issuance. This provision allows for adaptability, with the possibility of additional application periods being authorized based on the evolving needs and dynamics of the cannabis industry in Ohio. The state’s approach reflects a balance between facilitating business growth and addressing social equity concerns, setting a precedent for responsible and inclusive cannabis regulation.