Ohio Approves First Provisional Dual Licenses, Paving the Way for Dispensary Rollout

COLUMBUS, Ohio — As Ohio inches closer to opening its doors to recreational cannabis sales, the state has taken a significant step forward by issuing the first provisional dual licenses to medical marijuana dispensaries. This development marks the beginning of a carefully orchestrated process that will eventually allow these dispensaries to serve both medical and adult-use customers.

Regulatory Progress and Delays

Since applications opened on June 7, no dispensaries have yet received their Certificates of Operation, the final authorization needed to begin sales. However, dozens of medical marijuana dispensaries have obtained provisional dual licenses and are now navigating the remaining regulatory requirements.

The delay in issuing these certificates stems from the stringent criteria set by the Initiated Statute approved by voters last November. The Ohio Department of Commerce’s Division of Cannabis Control (DCC) is meticulously vetting applicants to ensure they meet all necessary standards. Jamie Crawford, spokesperson for the DCC, emphasized that the division is working diligently to identify qualified applicants and issue licenses in a timely manner.

 The Application Process

Eligible entities had to submit their applications by June 14 to be considered for the first phase of site selection. Unlike other states, Ohio’s process does not impose a cap on the number of application rounds within this phase, allowing ample opportunity for applicants to secure a location.

Interestingly, the initial application did not require facility specifications or building plans, which are typically crucial in such processes. These details will be mandated before issuing a Certificate of Operation, ensuring that all dispensaries meet Ohio’s regulatory standards.

 Local Moratoriums and Their Impact

A significant hurdle for many applicants has been local moratoriums on adult-use cannabis businesses. As of mid-June, 55 municipalities had enacted such bans. Dispensaries must demonstrate that their proposed locations are not subject to these restrictions or show active efforts to have them lifted.

 Current Status of Dual Licenses

To date, over 20 provisional dual licenses have been issued to medical marijuana dispensaries. These dispensaries must now comply with additional operational requirements to receive their Certificates of Operation by the September 7 deadline. Priority is given to applications from cultivators, processors, and testing laboratories to ensure a stable supply chain for the market.

As of June 21, the DCC reported receiving 235 conversion applications from active medical licensees and 191 new dispensary applications. Of these, 46 facilities have been notified of their provisional status, including four testing labs, 12 cultivators, 10 processors, and 20 dispensaries.

 Moving Forward: Compliance and Inspections

Holding a provisional dual license does not yet permit sales. Dispensaries must meet a series of regulatory requirements, including employee badging, surveillance standards, and inspection protocols, before receiving their Certificate of Operation. The timeline for these steps varies based on each applicant’s readiness and compliance.

 Gradual Rollout of Sales

Ohio’s rollout strategy does not hinge on a singular launch day. Instead, each dispensary will begin sales as soon as it receives its Certificate of Operation and is fully prepared to meet customer demand. This staggered approach aims to prevent supply chain bottlenecks and ensure a smooth transition into the adult-use market.

The DCC will update the public on the status of each dispensary through its website, mirroring the transparency of the state’s Medical Marijuana Control Program.

Preparing for Adult-Use Transactions

Dispensaries like Nar Reserve in Columbus are already gearing up for dual operations, integrating systems to handle both medical and recreational transactions. Key changes include ensuring correct tax application and processing anonymous transactions, addressing privacy concerns for adult-use customers.

Looking Ahead

While the exact opening dates for adult-use dispensaries remain fluid, the groundwork is being laid for a functional and compliant market. The gradual, store-by-store rollout reflects a cautious yet optimistic approach, aiming to balance regulatory compliance with consumer access.

As Ohio prepares for this significant shift, further updates on the readiness of cannabis producers, sellers, and ancillary businesses will be forthcoming, providing a comprehensive view of the evolving landscape.

For those eager to find out when the first adult-use dispensaries will open near them, the answer lies in the diligent process each dispensary must follow to meet the state’s high standards.