How to Get a Dispensary License in Ohio – 2024 Guide

Ohio is the 24th state to legalize cannabis completely, but this decision took time and effort.

In June 2016, Ohio joined the ranks of states allowing medical marijuana, making it the 25th to do so. Governor John Kasich signed H.B. 523, setting up the groundwork. This law kicked in on September 8th, 2016, and put these groups in charge:

This law put three groups in charge.

1. The Department of Commerce was made in charge of rules for cultivators, processors, and testing labs.
2. The Board of Pharmacy would handle the patient and caregiver registry and license retail dispensaries.
3. The State Medical Board would supervise physicians and give them a “certificate to recommend” patients.

Residents looking to use marijuana for medical reasons are required to meet the following criteria:

• Must be 18 or older
• Must be an Ohio resident
• Must have a qualifying condition like AIDS/HIV, Alzheimer’s, epilepsy, cancer, Huntington’s disease, and other conditions specified by the medical board.

During the 2023 election, Issue 2 was brought to the table by the Coalition to Regulate Marijuana Like Alcohol and was approved. Now, if you’re 21 or older, you can legally enjoy recreational marijuana in Ohio.

The Division of Cannabis Control (DCC) oversees the Medical Marijuana Control Program Patient & Caregiver Registry and licenses and regulates medical marijuana cultivators, processors, dispensaries, and testing laboratories to ensure compliance.

Ohio has four kinds of cannabis business licenses:

• Cultivator License
• Processor License
• Dispensary License
• Laboratory testing License

Current Status of the Cannabis Market in State

Ever since Ohio gave the green light to give out Ohio Dispensary License, people’s interest in marijuana has shot up. Back in April 2019, the state saw a hefty $5.2 million in marijuana sales.

By the end of December 2019 and 2020, the total sales for medical marijuana had stacked up to a whopping $56 million and $277.2 million, respectively. That’s quite a leap in demand, showing how things have been buzzing since legalization.

The state reached the $1 billion mark in September 2022, just 41 months after medical marijuana had started being sold legally. According to the Ohio Department of Commerce Medical Marijuana Control Program, total medical marijuana product sales had reached $1.5 billion by November 2023. As of September 2024, the combined sales of medical and non-medical marijuana have surpassed $2 billion.

The Ohio Division of Cannabis Control issues two types of licenses:

• Dual-use cannabis licenses are available to current medical marijuana dispensaries that want to enter the recreational cannabis market at their present location.
• 10(B) dispensary licenses are issued to medical marijuana dispensaries with a certification of operation or provisional license, with no common ownership or control with any marijuana cultivator or processor.

Research and Prepare

Before you begin filling out an application for an Ohio dispensary license, you must do your research. You need to find out all the requirements and criteria to be fulfilled for successfully obtaining an Ohio dispensary license and opening up a dispensary.

Before applying for an Ohio dispensary license, it’s essential to conduct thorough research. You need to understand all the requirements and criteria for obtaining a dispensary license in the state. It’s also important to comprehend the financial expenses associated with obtaining the license, as well as future business expenses.

That’s why it’s vital to approach your application with thorough preparation and understand all the efforts and steps needed to be taken to get an Ohio dispensary license.

No new applications are being accepted for an Ohio dispensary license at the moment. So, you need to regularly visit the official website and be prepared with all the requirements so that you can apply as soon as the application period begins.

Develop a Solid Business Plan

Not only is developing an in-depth business plan important for the success of your business, but it is also a mandatory requirement to be attached to the application.

Your business plan should include:

• The physical location of your dispensary
• Funding plan, or the source of your startup and ongoing capital
• Sourcing plan for procuring cannabis products
• Revenue projections
• Estimate or actual number of employees
• Diversity and equity plans
• Marketing plan
• Safety and security plan
• Technology plan
• The insurance company you will be opting for
• Other relevant information you want to document

Overall, while developing your business plan, ensure you follow Ohio dispensary laws and do not include anything that goes against the rules and regulations.

You can also get help from consulting companies to help you design a business plan that adheres to the State of Ohio Board of Pharmacy requirements. This will reduce the chances of your application getting rejected and will also help you grow your business in the long term.

Assemble the Necessary Documentation

We have worked in the cannabis industry for a long time and understand that an individual should assemble all the necessary documentation before submitting the application. Here is a list of some of the necessary documents you must have to complete the application:

• Proof of identification and residency in Ohio
• A financial plan and proof of liquid assets that can cover all the expenses of the first year of business
• Property and lease agreements for the dispensary compliant with Ohio’s regulations
• A business plan
• A plan to educate and train the staff after conducting thorough background checks
• An operational plan
• Security plans such as operational CCTV cameras and warning signs
• Application materials based on the type of dispensary license

Submitting the Application

Pay the non-refundable application fee of $5000 (if applicable) and recheck your application along with all the documents attached before submitting it. Make sure that there are no mistakes or any false promises in your application.

Ensure that your background knowledge about the cannabis industry in Ohio is reflected through your application. This will increase the chances of successfully getting an Ohio dispensary license.

You have two options for submitting your application: you can either send it directly via email to [email protected], or you can drop your complete application packet in the State of Ohio File Drop (cloud) and then notify the Department of Commerce using the same email address.

Application Review and Compliance Inspection

Dual-Use License

The Division will review applications in the order in which complete applications are received. If an application is incomplete, the Division will notify the application of the deficiencies and they will have 10 business days to cure the deficiencies and submit the complete application packet.

Upon submission of a complete application, a provisional license will be issued via DCC eLicense. This provisional license will then be accessible in your eLicense Account Administrators and Account Managers.

Before issuing a Certificate of Operation, the Division will review documents and conduct inspections to ensure compliance. Some of the items that will be checked during the inspection include individual badging and background checks, point-of-sale updates, the correct execution of sales to both medical patients and non-medical consumers, security and surveillance measures, and Standard Operating Procedures (SOPs). The dispensary’s method of record keeping and employee training records will also be checked.

The video surveillance and alarm systems should work when the inspecting officer visits and the staff should be properly trained and aware of the METRC system. Ensure following the landscaping guidelines; otherwise, your application will be rejected.

Note: These are just some of the guidelines that need to be followed, and a proper list is available on the official website. 

10(B) License 

Upon submission of a complete application by the specified due date for that application period, the applicant will be entered into the drawing with the number of entries corresponding to their selection of dual-use or adult-use-only license. For complete information on the application and drawing process, you can refer to the 10(B) License Application Instructions.

If an application is incomplete, the Division will notify the application of the deficiencies and they will have 10 business days to cure the deficiencies and submit the complete application packet.

Once a dispensary site location is approved in Phase One or Phase Two of the drawing, the Division will review the necessary information for compliance with Division rules prior to issuing a provisional license.

Remaining Compliant with Ohio’s Rules and Regulations

Once you have obtained the Ohio dispensary license, make sure to regularly renew it on time and follow all the guidelines specified by the Ohio Department of Commerce Division of Cannabis Control (DCC).

Some guidelines include, but are not limited to:

1. Ensure proper record keeping and training of the staff at all times.
2. Ensure all employees have a license to work at the dispensary and are insured
3. Ensure that the CCTV cameras are working 24/7.
4. Dispensaries must sell medical marijuana in the original, sealed containers or packaging provided by designated processors
5. The cannabis dispensary must maintain adequate lighting, ventilation, temperature, humidity control, and necessary equipment, including personal protective equipment for employees

If any incident takes place at the dispensary, inform the Ohio Department of Commerce Division of Cannabis Control (DCC). Similarly, if there are any changes, update the DCC through the appropriate form, and if you cannot find a form for it, email them. Ensure to read all the latest Ohio dispensary licensee newsletters released to stay updated.

Failure to comply with the guidelines results in cancellation or non-renewal of your license.

Getting insurance for your dispensary is essential for state compliance and helps businesses financially recover from accidents such as fires and lawsuits.

Types of Policies

There are several types of insurance plans for a cannabis dispensary. This includes:

• General Liability
• Product Liability Insurance
• Property Insurance
• Directors and Officers Insurance
• Workers’ Compensation Insurance

As Ohio evolves its rules and regulations, teaming up with experts will boost long-term success and ensure your cannabis business is protected from unforeseen risks, legal challenges, and operational setbacks, allowing you to focus on growth with peace of mind.

Running a licensed dispensary in Ohio comes with high costs. You need substantial funds to kickstart your business and a steady income to keep your license, which needs renewal annually or biannually, depending on the license type.

Application and License Fees

The application fee for a 10(B) dispensary license is $5,000, whereas the Certificate of Operation fee is $70,000. Apart from the first application and license fees, there is the biennial renewal fee, which is $70,000 when it comes to a dispensary license.

While there are no fees associated with applying for a dual-use license, only current medical marijuana cultivators, processors, testing laboratories, and dispensaries may apply to convert their existing medical marijuana. No one is permitted to cultivate, process, test, or sell non-medical cannabis without a dual-use license Certificate of Operation is issued.

Taxes and Fees

The Ohio Department of Taxation is responsible for Ohio’s local and state taxes for cannabis sales and cultivation. According to H.B. 523, all medical marijuana is subject to a 5.75% sales tax. Local authorities can also collect cannabis sales tax varying from 0.25% to 2.25%.

Non-medical cannabis is subject to regular state and local sales tax as you would expect. On top of that, there is a 10% excise tax on non-medical cannabis buys.

This extra tax revenue will be allocated to support social equity, job programs, mental health and addiction services, local governments, and the expenses of the Ohio Department of Taxation and the Division of Cannabis Control.

How much does opening and running a dispensary cost?

The entire cost of opening up a dispensary and running it can cost between $250,000 to $2,000,000 approximately. The application fee for running a dispensary in Ohio costs $5,000, and the license fee is $70,000. An employee licensing fee ranges from $100 to $500 per employee.

What are the location requirements for a dispensary?

A dispensary in Ohio must be at least 500 feet from a school, church, public library, public playground, or public park.

What types of insurance policies are required for a dispensary?

Various insurance policies are required, including general liability, product liability insurance, property insurance, workers’ compensation insurance, and lastly, directors and officers insurance.

How long does it take to obtain a dispensary license in Ohio?

Based on the timetable from the Division of Cannabis Control, the application process takes approximately 3 months from when the application period begins to when provisional licenses are awarded. After receiving provisional selection, licensees have 6 months to obtain a Certificate of Operation.

What are the regulations for advertising a dispensary in Ohio?

To advertise a dispensary in Ohio, the licensee must get approval from the State Board of Pharmacy before they begin advertising. There is a proper checklist and guidelines on the Ohio Medical Marijuana Control Program’s website that must be followed throughout the advertising process.

Can I have more than one dispensary location in Ohio?

Yes, you can have up to 8 Ohio dispensary licenses at a time, but they must all be approved.

Additional Resources

Visit the official websites of regulatory authorities and learn of the ever-evolving marijuana landscape in Ohio.

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