House Bill 611 would grant cultivation and dispensary licenses to orphaned cannabis processors in Ohio, Rep. Jamie Callender told the House Judiciary Committee during sponsor testimony. The bill, co-sponsored by Rep. Stewart, seeks to align 14 independent processors with the licensing structure held by most other cannabis businesses in the state.
Background: separation and vertical integration Ohio established its medical marijuana framework in 2016 under House Bill 523. The law created three license categories: dispensaries for retail sales, cultivators for growing plant material, and processors for converting raw cannabis into consumer products. Since then, state law evolved to permit the sale of products without processor involvement, and most cultivators acquired processors and dispensaries, becoming vertically integrated operations. That consolidation left 14 stand-alone processors without affiliated cultivators or retail outlets; industry stakeholders call them orphaned processors.
What House Bill 611 would do House Bill 611 would allow orphaned processors, after an approved application to the Division of Cannabis Control, to receive: – A cultivation license permitting up to 5,000 square feet of canopy for indoor or mixed cultivation; and – A dispensary license to operate at retail.
The bill defines the administrative steps for application and licensing through the Division of Cannabis Control and limits cultivation expansion to the specified 5,000 sq. ft per accepted processor license. Proponents say the change would give those processors direct access to product and a retail channel, rather than relying on contracts with vertically integrated firms.
Industry reaction and expected effects Jason Kabbes, co-founder and CEO of Diamon Science LLC, said the bill corrects an imbalance that left certain Ohio-based small businesses paying the same fees as vertically integrated operators while lacking dependable access to supply and demand. He described the measure as a targeted fix to allow long-standing market participants to compete for market share.
Emilie Kelleher (Ramach), Vice President of Business and Government Affairs at Beneleaves, said giving processors cultivation and retail licenses would let small, local businesses control their supply chain, reduce operating costs and expand product variety for consumers and patients. Both industry representatives testified that the change should increase legal product supply and lower consumer prices by expanding the number of independent producers supplying the market.
Legislative context House Bill 611 is the first General Assembly hearing focused on adult-use industry changes since the passage of Senate Bill 56 in the 136th General Assembly. The bill builds on the regulatory framework created by HB523, the recent SB56 modifications, and Issue 2 provisions that shaped Ohio’s adult-use rollout.
Rep. Callender summarized the bill as a continuation of prior efforts to structure a legal cannabis market in Ohio. He told committee members HB611 targets a narrow group of businesses that have participated in Ohio’s program since its inception and would keep jobs in-state while increasing legal supply. The bill now awaits further hearings in the House Judiciary Committee.
Concrete numbers and immediate impacts – Number of orphaned processors affected: 14. – Maximum cultivation area per granted license: 5,000 sq. ft. – Licensing changes proposed: addition of cultivation and dispensary authorizations for standalone processors.
If lawmakers approve the bill, those 14 processors could apply to the Division of Cannabis Control and — if approved — begin establishing cultivation sites and retail operations within the limits set by the statute. Industry sources expect this could raise available legal product volume from those businesses within 12–18 months of final approval, depending on build-out timelines, permitting and local zoning.
Challenges and considerations Opponents may raise questions about market competition, local zoning for new cultivation and retail locations, and oversight capacity at the Division of Cannabis Control. The bill directs the Division to process applications, but timelines and staffing for implementation were not detailed in the sponsor testimony.
Next steps House Bill 611 remains under consideration in the House Judiciary Committee and must pass additional hearings before moving to the full House. If approved by the legislature and signed by the governor, the Division of Cannabis Control would establish application procedures and begin licensing orphaned processors under the bill’s limits.
Bottom line House Bill 611 targets a small group of 14 independent processors by granting them cultivation and dispensary licenses and capping their cultivation at 5,000 sq. ft. Sponsors and industry backers say the change will expand legal supply, reduce costs for consumers, and let long-standing Ohio businesses operate across the supply chain. The bill is pending further committee review.
