Ohio officials have approved the state’s first adult-use marijuana business licenses, teeing up the launch of recreational sales.
About a month after the Department of Cannabis Control (DCC) signed off on dozens of provisional dual licenses for existing medical marijuana dispensaries, cultivators, processors and testing labs, regulators issued a first round of certificates of operation that will allow some of those businesses to begin dual-use operations to serve both the medical and adult-use markets.
So far, DCC has approved the certificates for four cultivators and six processors. There are over 200 provisional licensees, and no dispensaries or testing facilities have received the certificates to begin operations yet. But regulators have continuously said that they would be prioritizing applications for cultivators and processors to ensure that there’s enough supply for businesses to serve both markets.
“As we have consistently said, there are several factors that must be satisfied before a Certificate of Operation is issued,” DCC said on Friday. “Given the fact that cultivators, processors and testing labs are less complicated than dispensaries—and to ensure an efficient supply chain—cultivators, processes and labs receive some priority over dispensaries when it comes to issuance of Certificates of Operation to help ensure that, once Certificates of Operation are issued to dispensaries, there is non-medical product available for adult consumers to purchase.”
“This is necessary because dispensaries are not able to sell non-medical product unless the cultivator, processor and lab that have touched that particular product have received their non-medical cannabis Certificate of Operation,” it said.
DCC said that so far it has received 230 applications for dual licenses, and it’s granted 226 provisional licenses (10 of which were approved for certificates of operation). The majority of provisional licenses have been issued to existing medical cannabis dispensaries (133).
Before opening applications, the department released informational materials to prepare prospective applicants, outlining regulatory requirements they must satisfy in order to be eligible for the hybrid license.
In order for a dispensary to obtain a certificate of operation, applicants that received a provisional licenses must first prove that they’ve met various requirements, which includes updating point-of-sale technology to distinguish between medical cannabis and adult-use sales, enhancing security and verifying that they will be able to maintain an adequate supply for patients.
The expectation is that dispensaries that are in compliance with the updated rules could become operational imminently, though the latest they can be issued under state law is September 7.
“As a reminder, there will be no one singular day when sales begin,” DCC said. “We will start issuing licenses and it will be up to the retailer based on staffing, stock and other considerations as to which day they will begin sales.”
“Given the foundation already laid through the Medical Marijuana Control Program, current medical permit holders positioned to apply for dual-use status who have already undergone many of the comprehensive checks are anticipated to have a much quicker turnaround for issuance of licenses over the summer,” it said.Recently, DCC Superintendent James Canepa has said that the exact timeline for approving certificates remains unclear. However, he previously suggested that businesses with dual licenses approved could begin selling to patients and recreational consumers as early as this month.
An FAQ posted by regulators notes that “applications from cultivators, processors, and testing laboratories will receive priority” in order to “help ensure an efficient supply chain.”
Applications for the dual licenses opened about a month after the legislature’s Joint Committee On Agency Rule Review (JCARR) gave final approval to the proposed cannabis regulations for the adult-use market under the legalization law voters passed last November.
Gov. Mike DeWine (R) doesn’t personally support legalization, but he’s repeatedly criticized the delay in access to regulated products since voters made that choice and possession became legal in December.
Legislative leaders had separately discussed putting together a bill to make various changes to the law, including expediting sales, but the plans have largely fallen apart amid disagreement within the GOP-controlled legislature.
The Senate did pass an amendment package just prior to legalization taking effect, but the House has not taken it up, nor has it moved to advance a different proposal that originate in the House. Senators also recently filed a separate bill to change various marijuana rules.
Meanwhile, as regulators have worked to finalize regulations for the adult-use market, it already implemented a change in February that allows medical marijuana patients and caregivers to obtain or renew their registrations for only one penny. That fee was then totally eliminated with the adoption of a new rule at last month’s JCARR meeting.
The fee elimination is part of an initial package of rules that DCC released in February to implement adult-use legalization.
Following voter approval of legalization at the ballot, the Department of Commerce was quick to publish an FAQ guide for residents to learn about the new law and timeline for implementation.
The governor, meanwhile, has previously pressed the legislature to enact changes to expedite recreational marijuana sales. But he’s indicated that his more immediate concern is regulating the sale of intoxicating hemp-derived cannabinoids such as delta-8 THC.
“This is time for the legislature to move,” the governor, who also raised the issue during his State of the State address in April, said. “We can’t do it ourselves.”
