New Third-Party Certification Requirements Could Catch Businesses Off Guard—Are You Ready?
Ohio’s cannabis industry is no stranger to regulatory change—but the newest mandate from the Division of Cannabis Control (DCC) may be the most impactful yet for license holders. Beginning with the 2025 renewal cycle, all cannabis businesses in Ohio must obtain an independent third-party certification as part of their annual license renewal.
This isn’t just a formality. The new requirement introduces a complex layer of financial and ownership scrutiny that could significantly affect how cannabis businesses operate—and how quickly they can renew their licenses.
What Changed?
Ohio Admin. Code 1301:18-3-04(B) introduces a mandatory third-party certification for all license holders, to be performed by a licensed auditor or certified public accountant (CPA) with no ownership, control, or financial interest in your business.
This is meant to ensure full transparency and independence in verifying business structures and financial disclosures.
What the Certification Must Include:
Ownership documentation
Control structure and decision-making authority
Financial interest disclosures
Confirmation that no material facts are omitted or misstated
The CPA or auditor must also certify their independence from your company, including:
No ownership or investment ties
No control over operations
No financial interest whatsoever
Why It Matters: The Risks of Non-Compliance
Failing to meet these new requirements could mean:
Delays in license renewal
Regulatory penalties or increased scrutiny
Interrupted business operations
This regulation adds both financial and operational pressure on cannabis businesses in an already tightly regulated industry. It’s no longer enough to have your documents in order—you must now prove it to a third-party professional who meets strict independence standards.
What Cannabis Businesses Should Do Now
With the 2025 renewal season approaching, here’s how to get ahead of the curve:
Review Your Documentation
Start by reviewing your:
Ownership records
Financial interest disclosures
Internal control structures
Related-party transactions
Any discrepancies or missing records could slow down the certification process.
Find the Right CPA or Auditor
Not just any CPA will do. You need someone who:
Has no prior or current relationship with your business
Understands cannabis industry regulations
Is qualified to certify independence under Ohio law
Start this search early—qualified professionals will be in high demand as the deadline nears.
Build Internal Systems for Ongoing Compliance
Treat this not as a one-time task, but an annual requirement. That means:
Maintaining audit-ready records year-round
Keeping clear logs of ownership and financial changes
Assigning internal compliance responsibilities
The Bigger Picture: A Push for Transparency
Ohio’s move aligns with a broader national trend: regulators want clearer oversight and less opacity in cannabis business structures. These new certification rules are a signal—expect more scrutiny, not less, in the years ahead.
As a result, building strong internal processes and professional relationships now will pay off long-term.
Final Thoughts: Preparation is Protection
The sooner your business adapts to these new standards, the better positioned you’ll be—not just to maintain compliance, but to operate confidently in Ohio’s evolving cannabis landscape.
At HBK Cannabis Solutions Group, we combine regulatory expertise with hands-on industry experience to help cannabis businesses meet these new challenges head-on. Our team is equipped to provide the required third-party certifications while helping you build the systems and processes needed for smooth renewals year after year.
Don’t let compliance slow you down.Start preparing for your 2025 renewal today.
