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Opportunities in the Ohio (O-High-O) Cannabis Market

Ohio has become the latest state to legalize recreational cannabis, becoming the 24th state in the United States to do so. Voters passed Issue 2, which permits adults 21 and over to carry, buy, and grow cannabis.

The law goes into effect on December 7. Adults 21 and over can possess 2.5 ounces of cannabis and 15 grams of extracts. Ohioans are also allowed to grow, with individuals allowed six plants and no more than a dozen in homes with multiple residents. Landlords can ban tenants from growing but said ban must be part of a lease agreement. As for legal cannabis sales in the state, that will take much longer.

Ohio Cannabis Regulations

The Division of Cannabis Control must set specifications on packaging, product standards, and more. Ohio has nine months to issue a preliminary number of licenses to dispensaries, processors, and cultivators.

The Division also must regulate rules for online and mobile delivery for dispensaries, delaying when Ohioans can get their cannabis products delivered. There is still a smoking ban in the state. Smoking cannabis in public would violate the state’s public smoking law, which prohibits smoking plant material in public, enclosed areas.

The Ohio State Legislature will look at factors like the state’s social equity program (which assists disadvantaged groups impacted by cannabis laws) as well as the taxation of THC products. The specifics of the social equity program are yet to be determined.

While the passing of Issue 2 will impact many consumers, Ohio still has a long way to go. Additionally, the governor or legislature can modify or restrict the program; Governor DeWine is open about his concerns with the smell of cannabis.

As Issue 2 is currently written, current medical cannabis businesses will be allowed to convert to adult-use businesses, pursuant to approval by the MMCP. Additionally, craft growers (cultivators) will be able to open up to three dispensaries using their cultivation licenses. 40 new Level III cultivator licenses and 50 new dispensary licenses will be issued. The method of determining who receives these licenses is not settled, but preference will be given to applicants who are participants under the cannabis social equity and jobs program. While a merit-based process was used in 2017, the last two rounds for dispensary licenses were lotteries.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical and recreational cannabis businesses in 36 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!