Ohio Cannabis Regulators Release Adult-Use Industry Draft Rules

Ohio cannabis regulators this week released the draft rules for the state’s adult-use cannabis industry that was approved by voters last year. Officials are also asking for public feedback on the proposed rules, which outline application costs and detail the state’s plan for a lottery-based licensing system.

Under the proposed rules, medical cannabis retailers would be able to apply for a dual-use license — which enables serving both the medical and adult-use cannabis markets — at no additional cost. Meanwhile, vertically integrated companies in the state including Level 2 and Level 1 cultivators would be granted respectively either one or three retail licenses. Applications for new dispensaries in the state will cost $5,000 for either an adult-use or dual-use license. License renewals would be priced at $200,000 for Level 1 cultivators, $50,000 for cannabis processors, and $20,000 for Level 2 cultivators and cannabis testing labs.

Officials also confirmed their intent to hold an application period “for which preference shall be given to applicants certified as cannabis social equity and jobs program participants,” which was a requirement of the legalization initiative passed overwhelmingly by voters last year.

Notably, cannabis dispensaries in the state will be required to maintain a one-mile buffer between themselves and other cannabis retailers.

Members of the public are invited to submit feedback on the draft rules to officials through February 9. Applications will be available by June 7 with provisional licenses to be awarded by September 7.

A report published ahead of November’s election found that legalizing adult-use cannabis in Ohio would likely generate about $260 million in “net benefits for society.”