As Introduced

136th General Assembly

Regular Session H. B. No. 611

2025-2026

To amend sections 3780.10, 3780.13, 3796.07, 3796.14, 3796.19, and 3796.21 of the Revised Code to issue cultivation and dispensary licenses for certain medical marijuana processors.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3780.10, 3780.13, 3796.07, 3796.14, 3796.19, and 3796.21 of the Revised Code be amended to read as follows:

Sec. 3780.10. Adult use cannabis operator and adult use testing laboratory licenses.

(A) No person shall operate as an adult use cannabis operator or adult use testing laboratory without a license issued pursuant to this chapter.

(B) The following licenses shall be issued by the division of cannabis control within nine months of December 7, 2023, if the license applicant is in compliance with section 3780.11 of the Revised Code and this chapter, and the license applicant has, or the same owners of the license applicant have, a certificate of operation or medical provisional license issued as of December 7, 2023:

(1) A dispensary issued a certificate of operation or medical provisional license shall be issued an adult use dispensary license under this chapter for the current location of the dispensary;

(2) A level I cultivator issued a certificate of operation or medical provisional license shall be issued under this chapter three adult use dispensary licenses at locations designated in a license application, and one level I adult use cultivator license for the current location of the level I cultivation facility;

(3) A level II cultivator issued a certificate of operation or medical provisional license shall be issued under this chapter one adult use dispensary license at a location designated in the license application, and one level II adult use cultivator license for the current location of the level II cultivation facility;

(4) A dispensary issued a certificate of operation or medical provisional license shall be issued under this chapter one adult use dispensary license at a different location as designated in the license application if the dispensary does not have any common ownership or control with any level I adult use cultivator, level II adult use cultivator, or adult use processor license applicant or licensee;

(5) A processor issued a certificate of operation or medical provisional license shall be issued under this chapter one adult use processor license for the current location of the processor; and

(6) A testing laboratory issued a certificate of operation shall be issued under this chapter one adult use testing laboratory license for the current location of the testing laboratory.

(1) The division of cannabis control shall issue the following licenses to an applicant that meets all of the requirements described in division (C)(2) of this section:

(a) One adult use dispensary license, at a location designated in the license application;

(b) One dispensary license, at a location designated in the license application;

(2) The division of cannabis control shall issue the licenses described in division (C)(1) of this section to an applicant that meets all of the following:

(a) The applicant is a processor that was issued a certificate of operation on or before December 7, 2023;

(b) The applicant has not and does not transfer the processor license or control of processing operations at any point after December 7, 2023, and before the date the respective license is issued under this section;

(D) Notwithstanding anything in this section, a license shall not be issued pursuant to division (B) or (C) of this section to a license applicant holding only a related medical provisional license unless the medical provisional license holder is issued a certificate of operation within two years of December 7, 2023.

~~(C)~~(E) The division of cannabis control shall issue up to forty level III adult use cultivator licenses consistent with this chapter. No person may have any ownership or control in more than one level III adult use cultivator license under this chapter. No ~~adult use cultivator or adult use~~ processor issued a level III adult use cultivator license under this section may have any ownership or control in a level ~~III~~ I adult use cultivator license or level II adult use cultivator license.

~~(D)~~(F) The division of cannabis control shall issue up to fifty additional adult use dispensary licenses in conformity with this chapter.

~~(E)~~(G) Following twenty-four months from the first date of issuance of an adult use operator license, the division of cannabis control shall review the number of adult use cannabis operator licenses on a biannual basis and may authorize additional licenses after considering:

(1) The current and anticipated market growth and consumer demand, including the number of adult use consumers seeking adult use cannabis;

(2) The current and projected supply of adult use cannabis produced by licensed adult use cultivators, level III adult use cultivators, and adult use processors; and

(3) The geographic distribution of adult use dispensary sites in an effort to ensure adult use customer access to adult use cannabis.

~~(F)(1)~~(H)(1) The division of cannabis control shall provide a report and recommendation within ninety days of the conclusion of the requirements in division ~~(E)~~(G) of this section to the director for consideration.

(2) The division of cannabis control may adopt rules as necessary to implement this division.

(3) The division of cannabis control shall adopt a rule regarding the number of licenses a license holder may hold for each type of license consistent with this chapter. As of December 7, 2023, and notwithstanding any other provision of this chapter, no person shall be issued more than eight adult use dispensary licenses, not more than one adult use cultivator license, and not more than one adult use processor license at any time, unless authorized by the division of cannabis control after an analysis supporting the licensing pursuant to rule.

~~(G)~~(I) The division of cannabis control may authorize additional adult use testing laboratory licenses at any time.

Sec. 3780.13. Level III adult use cultivator license.

(A) Notwithstanding any conflicting provision of the Revised Code, and except as provided in ~~division~~ divisions (B) and (C) of this section, the holder of a current and valid level III adult use cultivator license issued under this chapter may do any of the following:

(1) Cultivate adult use cannabis;

(2) Distribute, transfer, and sell adult use cannabis to other adult use cannabis operators; and

(3) Acquire seeds, clones, plants, and other genetic material.

(B) A level III adult use cultivator license holder shall not cultivate any adult use cannabis for personal, family, or household use under the license.

(C) Notwithstanding any provision of the Revised Code to the contrary, in addition to the authority granted under division (A) of this section, the holder of a current and valid level III adult use cultivator license issued under division (C) of section 3780.10 of the Revised Code may do any of the following:

(1) Cultivate medical marijuana;

(2) Deliver or sell medical marijuana to one or more licensed processors.

Sec. 3796.07. The department of commerce shall establish and maintain an electronic database to monitor medical marijuana from its seed source through its cultivation, processing, testing, and dispensing. The department may contract with a separate entity to establish and maintain all or any part of the electronic database on behalf of the department.

The electronic database shall allow for information regarding medical marijuana to be updated instantaneously. Any cultivator, processor, retail dispensary, or laboratory licensed under this chapter, and any level III adult use cultivator issued a license under division (C) of section 3780.10 of the Revised Code, shall submit to the department any information the department determines is necessary for maintaining the electronic database.

The department and any entity under contract with the department shall not make public any information reported to or collected by the department under this division that identifies or would tend to identify any specific patient.

Sec. 3796.14. (A) The division of marijuana control may do any of the following for any reason specified in rules adopted under section 3796.03 of the Revised Code:

(1) Suspend, suspend without prior hearing, revoke, or refuse to renew a license it issued under this chapter or a license or a registration the state board of pharmacy issued prior to the transfer of regulatory authority over the medical marijuana control program to the division;

(2) Refuse to issue a license;

(3) Impose on a license holder a civil penalty in an amount to be determined by the division.

(4) With respect to a suspension of a retail dispensary license without prior hearing, the division may utilize a telephone conference call to review the allegations and take a vote. The division shall suspend a license without prior hearing only if it finds clear and convincing evidence that continued distribution of medical marijuana by the license holder presents a danger of immediate and serious harm to others. The suspension shall remain in effect, unless lifted by the division, until the division issues its final adjudication order. If the division does not issue the order within ninety days after the adjudication hearing, the suspension shall be lifted on the ninety-first day following the hearing.

The division's actions under division (A) of this section shall be taken in accordance with Chapter 119. of the Revised Code.

(B) The division may inspect all of the following for any reason specified in rules adopted under section 3796.03 of the Revised Code without prior notice to the applicant or license holder:

(1) The premises of an applicant for licensure or holder of a current, valid cultivator, processor, retail dispensary, or laboratory license issued under this chapter or a level III adult use cultivator license issued under division (C) of section 3780.10 of the Revised Code;

(2) All records maintained pursuant to this chapter by a holder of a current license.

(C) Whenever it appears to the division, from its files, upon complaint, or otherwise, that any person or entity has engaged in, is engaged in, or is about to engage in any practice declared to be illegal or prohibited by this chapter or the rules adopted under this chapter, or when the division believes it to be in the best interest of the public or patients, the division may do any of the following:

(1) Investigate the person or entity as authorized pursuant to this chapter or the rules adopted under this chapter;

(2) Issue subpoenas to any person or entity for the purpose of compelling either of the following:

(a) The attendance and testimony of witnesses;

(b) The production of books, accounts, papers, records, or documents.

(D) If a person or entity fails to comply with any order of the division or a subpoena issued by the division pursuant to this section, a judge of the court of common pleas of the county in which the person resides or the entity may be served, on application of the division, shall compel obedience by attachment proceedings as for contempt, as in the case of disobedience with respect to the requirements of a subpoena issued from such court or a refusal to testify in such court.

Sec. 3796.19. (A) Notwithstanding any conflicting provision of the Revised Code, the holder of a current, valid processor license issued under this chapter may do any of the following:

(1) Obtain medical marijuana from one or more cultivators licensed under this chapter or level III adult use cultivators issued a license under division (C) of section 3780.10 of the Revised Code;

(2) Subject to division (B) of this section, process medical marijuana obtained ~~from one or more licensed cultivators~~ in accordance with division (A)(1) of this section into a form described in section 3796.06 of the Revised Code;

(3) Deliver or sell processed medical marijuana to one or more licensed retail dispensaries.

(B) When processing medical marijuana, a licensed processor shall do both of the following:

(1) Package the medical marijuana in accordance with child-resistant effectiveness standards described in 16 C.F.R. 1700.15(b) on September 8, 2016;

(2) Label the medical marijuana packaging with the product's tetrahydrocannabinol and cannabidiol content;

(3) Comply with any packaging or labeling requirements established in rules adopted by the division of marijuana control under section 3796.03 of the Revised Code.

Sec. 3796.21. (A) Notwithstanding any conflicting provision of the Revised Code, the holder of a current, valid laboratory license issued under this chapter may do both of the following:

(1) Obtain medical marijuana from one or more cultivators, processors, and retail dispensaries licensed under this chapter or level III adult use cultivators issued a license under division (C) of section 3780.10 of the Revised Code;

(2) Conduct medical marijuana testing in the manner specified in rules adopted under section 3796.03 of the Revised Code.

(B) When testing medical marijuana, a licensed laboratory shall do both of the following:

(1) Test the marijuana for potency, homogeneity, and contamination;

(2) Prepare a report of the test results.

Section 2. That existing sections 3780.10, 3780.13, 3796.07, 3796.14, 3796.19, and 3796.21 of the Revised Code are hereby repealed.