Ohio does have a social equity program for adult-use cannabis—established through Issue 2 in November 2023—but it is still in development and has yet to fully launch. A recent legislative push, however, threatens to dismantle many of its core components.

Social equity framework under Issue 2

Ohio’s Issue 2 created the Cannabis Social Equity and Jobs Program, funded by a 10% recreational cannabis excise tax—which dedicates 36% of proceeds to equity initiatives. The law directs the state Department of Development to certify applicants who:

• Demonstrate social disadvantage (e.g., membership in racial minorities, disability, residency in high-unemployment areas, or past cannabis convictions).
• Show economic disadvantage, including meeting wealth and census-tract criteria.
• Once certified, participants could access fee waivers (at least 50% reduction), priority access to licenses, and financial/technical assistance.

Specifically, up to 40 adult-use cultivator licenses and 50 dispensary licenses were set aside to recipients of equity certification.

Implementation: still in progress

• Ohio’s division of cannabis control released initial licensing rules in early 2024, explaining how equity candidates would be notified and prioritized during lottery draws.
• Cannabis experts have praised the program’s ambition and potential to “eliminate long-standing barriers” faced by impacted communities.
• Recreational sales officially launched in August 2024, but equity provisions—including licensing and assistance programs—have not yet been fully activated.

Emerging legislative reversal

Recent statehouse developments cast doubt on the program’s future. Under bills like S.B. 56, lawmakers are seeking to:

• Repeal the Cannabis Social Equity and Jobs Program entirely.
• Remove fee waivers, set-aside licenses, and any formal equity framework.
• Redirect tax revenues previously allocated to equity and addiction treatment to other areas.

As of April–May 2025, the program remains in a legislative limbo—its authority established by public ballot yet threatened by legislative action.

Why Ohio hadn’t had equity pre-existingly—and why now?

Historically, Ohio’s 2016 medical cannabis law included no statewide social equity measures for medical licensees—aside from a struck-down 15% racial-minority ownership rule. Equity wasn’t built into the framework until adult-use legalization in 2023, when advocates successfully packaged it into Issue 2.

The inclusion of equity was driven by public support for redressing disproportionate marijuana enforcement; the ballot initiative was clear on directing revenue and creating assistance programs for impacted individuals.

Current outlook

• Legal framework: The equity program is law under Issue 2; certification criteria and rules have been drafted by regulators.
• Operational readiness: No participants have been certified yet; first cultivator and dispensary set-aside lotteries are expected later in 2025.
• Legislative risk: Active repeal efforts could dismantle equity funding and licensing preferences entirely.

Summary

Ohio’s adult-use law formally includes a social equity program—with criteria, funding, and licensing set-asides built in. However:

• No equity licenses have yet been issued.
• Financial assistance programs are not operational.
• Legislative efforts in 2025 may nullify or significantly weaken the program.

So, while the framework is legally in place, true implementation remains incomplete and uncertain.

Possible outcomes

1. Full rollout: Regulators certify participants, hold equity lotteries, and begin funding assistance.
2. Partial rollback: Funding continues, but licensing set-asides are eliminated.
3. Full repeal: Legislature removes the program entirely—making Ohio one of the few legal markets with no active equity tools.