Ohio Retail Cannabis Laws Explained

The good news is, Ohio has become the 24^th state in the United States to legalize recreational cannabis.

On November 7, 2023, Ohio voters approved a ballot proposal to legalize recreational marijuana for adults over the age of 21, advancing cannabis culture in the state. Now you’re able to use it for non-medical purposes too.

There are still updates to look out for, concerning when cannabis dispensaries in Ohio are going to be able to make the transition from selling med to rec. It could take a few months before Ohio state pass licence laws for dispensaries to be able to sell weed legally.

That is why understanding retail cannabis laws in Ohio is noteworthy if you’re in the cannabis or retail business. Laws are one thing, but compliance is another we need to keep in mind when it comes to selling weed in Ohio.

Current legislation is introducing detailed regulations to govern the cultivation, distribution, and usage of weed.

How much cannabis can be bought in Ohio?

Since December 7, 2023, adults in Ohio who are 21 and older are allowed to have up to 2.5 ounces of marijuana in its plant form or up to 15 grams in extract form. They can also grow up to six marijuana plants per adult, with a maximum of 12 plants per household. Retail cannabis products will be subject to a 10% tax.

Current Medical Cannabis Laws in Ohio

Medical cannabis, legalized in 2016, is exclusively available to registered patients or caregivers in the Ohio Marijuana Control Program, diagnosed with qualifying medical conditions.

But adults 21 and older can grow marijuana at home. They can also give up to six plants to someone who isn't a medical user if they don't get paid for it and don't advertise the transfer to the public. Some key facts about medical cannabis in Ohio are:

• In Ohio, the State Board of Pharmacy controls medical marijuana stores. They use a system called Metrc to keep track of all the cannabis.
• These dispensaries can give medical marijuana to people who are 18 or older and have permission.
• When they sell medical marijuana, the store must send certain details to the pharmacy board electronically within five minutes.
• People in Ohio are only allowed to have a 90 days’ supply of medical cannabis according to their medical needs and prescription.

Can I open a recreational cannabis dispensary in Ohio?

The simple answer is not yet. But keep an eye on movements and news. The Division of Cannabis Control isn’t set to start processing retailer applications until June 2024, which means you likely won’t be able to legally sell adult-use marijuana until late summer or early fall.

Section 3780.03 sets up a Division of Cannabis Control under the Ohio Department of Commerce. This division will manage the adult-use cannabis industry. It will create rules for applying, getting licenses, and renewing them for cannabis businesses and testing labs.

The law will let existing medical cannabis businesses switch to recreational licenses first. The division must give licenses to eligible applicants within nine months of the law being passed.

The division will also give out 40 licenses for growing recreational cannabis and 50 licenses for selling it. They'll give preference to people in the state's social equity and jobs program once it starts.

Every two years after the first recreational business is approved, the division will check the licenses and might give out more in the future.

How much weed can I have in Ohio?

As written, the law allows anyone over 21 to have 2.5 ounces of cannabis flower and 15 grams of extract.

Licensing and Permits for Recreational Cannabis in Ohio

If you’re thinking of obtaining a licence to sell recreational weed in Ohio, then for now, remember, the Pharmacy Board isn't accepting new applications for adult-use dispensaries. You can sign up for updates on their website to know when they will.

When you get news that they are accepting applications, then below is what you’ll need to present for your dispensary application:

• Name of the person or company applying, as it appears in official documents
• Type of business (like sole proprietorship or corporation)
• Proof of registration with the Ohio Secretary of State
• Copies of important legal papers
• Address of the planned dispensary and any related marijuana places
• Mailing address, phone number, and email of the applicant
• Proof of owning or leasing the property where marijuana will be sold
• A survey showing the dispensary is at least 500 feet away from certain places like treatment centers
• Following local rules and laws
• Signature of someone authorized to sign

Dispensary licenses in Ohio end every odd-numbered year on July 1, no matter when they were renewed. For example, if you were granted a licence in 2022, it will end in July 1 2023 (odd number).

To renew, send these to the state board of pharmacy at least 45 days before it ends:

• Renewal application
• List of employee names and license numbers
• Proof of paying taxes
• Fee for renewal

You can start renewing 90 days before your license ends. If you rent your space, say you'll keep renting for the next two years.

The board might say no to renewing if:

• You didn't pay fees
• You didn't follow rules before
• You broke laws running the dispensary
• You got in trouble for breaking rules

If you don't renew the dispensary licence by the end date, your license is over, and you can't sell anymore. Make sure all the info in your Dispensary Business Plan follows Ohio laws.

What's the limit on buying marijuana in Ohio?

In Ohio, medical marijuana patients can buy these amounts each day:

• 2.83 grams (which is 1/10 of an ounce) of the plant
• 295 milligrams of THC in lotion, cream, or ointment
• 110 milligrams of THC in oil, tincture, capsule, or edible to swallow
• 590 milligrams of THC in oil to vape

How to advertise your dispensary cannabis in Ohio

Ohio wants to make sure that ads for medical marijuana only talk about its medical use, not using it for fun.

Ads for marijuana can't be near:

• Places for addiction help
• Arcades where kids go
• Places kids like

You can't use these ways to advertise marijuana:

• Big signs on the road
• Ads on radio or TV
• Signs you hold
• Giving out flyers in public without asking
• Ads on buses or bus stops
• Ads in places owned by the public

Good ads shouldn't:

• Have pictures of cartoons or fake characters that kids like
• Try to sell stuff to people under 18
• Lie or trick people
• Say bad things about other shops
• Be gross or bad
• Say things about marijuana being safe or good without proof
• If a dispensary wants to advertise, they need to show their ads to the pharmacy board and pay a fee.

Ohio Dispensaries need to send:

• How the ad looks
• Proof that they didn't use real patients in the ad
• Correct translations if needed
• Proof that what they say about treatment works
• The final ad in the right form

Cannabis Taxation in Ohio

It's important for businesses in Ohio's growing cannabis industry to think about how taxes affect them. Starting from 2023, the state puts taxes on cannabis sales. Medical cannabis has a 5.75% tax, and recreational cannabis has a 10% tax.

These tax rates affect how much things cost and how businesses plan their money. Knowing about Ohio's tax system, with its different rates for medical and recreational cannabis, is important for making financial plans.

Key Takeaways for Understanding Ohio Retail Cannabis Laws

• Ohio legalized recreational cannabis on November 7, 2023, becoming the 24th state to do so.
• Adults over 21 can now use cannabis for non-medical reasons in Ohio.
• Updates are expected regarding when cannabis dispensaries in Ohio can transition to selling recreational cannabis legally.
• Understanding Ohio's retail cannabis laws will help businesses in the cannabis industry follow the laws
• Ohio has detailed regulations governing the cultivation, distribution, and usage of cannabis.
• The legal limit for cannabis possession in Ohio is 2.5 ounces of plant material or 15 grams of extract for adults over 21.
• Medical cannabis laws in Ohio allow registered patients or caregivers to access cannabis for medical use.
• Recreational cannabis dispensaries are not open yet in Ohio, but they are expected to start processing retailer applications by June 2024.
• Ohio's Division of Cannabis Control manages the adult-use cannabis industry and issues licenses to qualified applicants.
• Dispensary licenses in Ohio expire every odd-numbered year on July 1, and renewal must be done at least 45 days before expiration.
• Ohio imposes different taxes on medical and recreational cannabis sales: 5.75% for medical cannabis and 10% for recreational cannabis.
• Advertisements for cannabis in Ohio must adhere to strict regulations, avoiding targeting children and making false claims.
• Dispensaries must get their ads approved by the state board of pharmacy and pay a fee.
• Ohio's cannabis dispensaries should understand and plan for the impact of taxation on their finances.

Thinking of transitioning your medical cannabis dispensary in Ohio to recreational one?

If you're thinking about transitioning your medical cannabis dispensary in Ohio to a recreational one, then keep an eye on when you can start applying for the new licenses.

The Division of Cannabis Control isn't set to start processing retailer applications until June 2024, so you'll need to be patient until then. Once applications open, you'll want to be ready to submit yours promptly to ensure you're among the first to receive approval.

Additionally, while you're waiting to submit your application, it's a good idea to start thinking about your advertising strategy. Ohio has strict rules about how cannabis can be advertised, including restrictions on where ads can be placed and what they can say.

Seed Technology can help with that – We’re here to help you by providing in-store digital engagement software for cannabis retailers. When the time comes to sell adult-use weed in Ohio, we’re best placed to advise you on self-service kiosks and TV menus. Check out our dispensary digital signage which helps dispensaries become more profitable by streamlining the customer flow and influencing buyer behavior.

By planning and familiarizing yourself with these regulations, you'll be better prepared to launch effective advertising campaigns once you receive your recreational cannabis license in Ohio.