CANNABIS Banking and financial services iN

Cannabis Legalization and Regulation in Ohio

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Ohio legalized adult-use cannabis in November 2023 through a voter-approved ballot initiative. Adults 21 and older may legally possess up to 2.5 ounces of cannabis flower and up to 15 grams of concentrates. Home cultivation is permitted, with each adult allowed to grow up to six plants, capped at 12 per household. Public consumption is prohibited, and driving under the influence remains illegal.

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The Division of Cannabis Control, within the Ohio Department of Commerce, is responsible for overseeing licensing and regulation of the new adult-use market. Retail sales are expected to begin in 2025 as cultivators, processors, testing labs, and dispensaries are licensed. The program includes provisions to prioritize social equity applicants, with a focus on communities disproportionately impacted by prohibition.

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Ohio’s medical cannabis program, established in 2016, continues to operate alongside adult-use. Medical patients may purchase higher amounts than recreational users and access products such as oils, tinctures, edibles, and plant material from licensed dispensaries across the state. Registered patients benefit from broader product availability and medical-use protections.

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Hemp and hemp-derived CBD products remain legal, provided they contain no more than 0.3% THC. Intoxicating hemp-derived cannabinoids, such as delta-8 THC, are restricted and subject to the same rules as regulated cannabis products when intended for human consumption. Testing, labeling, and licensing requirements apply to ensure consumer safety.

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For cannabis operators, banking and financial services in Ohio require rigorous compliance. Licensed operators seeking accounts or financing must provide state license documentation, tax IDs, ownership records, operating agreements, and financial statements. Financial institutions expect secure cash-management systems, including armored transport, deposit scheduling, reconciled accounting, and AML/BSA reporting. Operators should also prepare for transaction monitoring and detailed tax compliance, as Ohio imposes both excise and sales taxes on cannabis sales.

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The Division of Cannabis Control regulates Ohio’s adult-use and medical cannabis programs. For official rules, licensing information, and compliance updates, visit:
Division of Cannabis Control (DCC) | Ohio Department of Commerce