No Ohio dispensaries have yet earned their Certificates of Operation to begin selling non-medical cannabis since they opened applications June 7th. However, dozens of Ohio MMJ dispensaries have now earned their provisional dual licenses and await the final steps before receiving the go-ahead to sell to adults.
What’s Taking So Long?
The Initiated Statute that voters approved last November 7th set June 7th as the deadline to start accepting applications and September 7 as the deadline to start issuing Certificates of Operation. Jamie Crawford, spokesperson for the Ohio Department of Commerce’s Division of Cannabis Control (DCC) told MedicateOH on Friday that starting on June 7, the Division of Cannabis Control has been and will continue to identify qualified applicants for issuance of dual-use provisional licenses.
To be entered into the drawing and Phase One of site selection for the dual-use license 10(B) application, eligible entities had to submit by 5:00pm on June 14, 2024. The DCC has not placed a limit on the number of rounds there will be within Phase One site selection. They intend to allow time for applicants who wish to get their first site selected during Phase One to do so.
Facility specifications and building plans were not required as part of the 10(B) application or site selection process. However, the DCC will require these plans prior to the issuance of a Certificate of Operation.
Moratoriums Could Delay Progress
Dispensaries vying for adult-use licenses need to prove that no local moratoriums or other limitations would prevent them from occupying their proposed site. The applicant can also qualify if they can prove they are actively working with the local jurisdiction to lift the moratorium or limitation. They need to provide written communication with the local jurisdiction evidencing that lifting the moratorium or limitation has a likelihood of success. As of June 13, 2024, 55 Ohio municipal corporations or townships passed moratoriums prohibiting adult-use cannabis businesses, according to research by Ohio State University.
Provisional Dual-Use Licenses For Dispensaries
So far, more than 20 provisional applications have been issued to medical marijuana dispensaries across the state who applied to sell to adults.
Next, the DCC will require provisional licensees to validate compliance with operational requirements before receiving their respective Certificates of Operation on or before September 7. Explains Crawford: “Prior to this week, initial dual-use provisional licenses were issued to testing labs, cultivators and processors with qualifying applications. The Division is still processing dual-use provisional licenses for the initial license types, and as of this week, the Division has begun to issue dual-use provisional licenses to dispensaries.”
How Many Facilities Qualified for Dual Licenses So Far?
The DCC reports that they continue to review and process applications “roughly in the order in which completed applications have been received. However, the Division previously reported that applications from cultivators, processors, and testing laboratories will receive priority in order to help ensure an efficient supply chain.
As of June 21, 2024 at 12:00pm:
- The Division of Cannabis Control has received 235 applications to convert active Medical Marijuana licensees to dual-use cannabis licensees.
- The Division of Cannabis Control has received 191 10(B) dispensary applications. These are additional dispensary licenses authorized to be issued by the initiated statute.
- The Division has notified 46 facilities that they have qualified for a provisional license. They are broken down as follows:
- 4 Testing labs
- 12 Cultivators
- 10 Processors
- 20 Dispensaries (Our list here – updated to 31 on 6/23/24)
Provisional License Does Not Mean Ready to Sell to Public
Crawford reminds Ohioans that a dual-use provisional license does not permit them to sell non-medical cannabis. He explains that it’s a placeholder while the provisional licensee works to meet the necessary requirements to obtain a Certificate of Operation and the Division processes all required documents. Following successful completion of that process, Certificates of Operation will be issued based on roughly the order in which completed applications were received.
“It would be difficult to assign a number of days between the issuance of applications and the granting of licenses,” says Crawford. “Because the turnaround time is dependent on whether the applicant files a complete application, if employee badging is complete, if surveillance standards are met, and when any inspection requirements are complete, including the required standards for points-of-sale.
Rollout to Occur Store-by-Store: “No One Singular Day When Sales Begin”
Crawford notes that current medical marijuana licensees who have already met the requirements for dual-use licensure and have their points-of-sale properly configured are anticipated to have a much quicker turnaround for issuance of a Certificate of Operation.
After a Certificate of Operation has been issued, the Division of Cannabis Control will publish this information on its website to ensure this information is made available in an equitable manner – similar to the approach taken for those facilities participating in the state’s Medical Marijuana Control Program. You can see that map here: Medical Marijuana Dispensary Map | Ohio Department of Commerce
“As a reminder, there will be no one singular day when sales begin,” explains Crawford. “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.”
Ohio Updates Drug-Free Workplace Policy for State Employees
State employees aged 21 and older can use recreational marijuana while they’re off duty, but only if they work in positions not subject to random drug testing, according to Ohio’s updated Drug-Free Workplace policy.
Dispensaries Prepare for Multiple Transaction Types
Ohio is the very first market in the US that will have “adult use-only” products. Nar Reserve Dispensary in Columbus was among the stores that met with menu/payment processor Dutchie last week to learn the process for transacting both MMJ and adult-use customers. Representatives from Dutchie walked employees through the new processes, ensuring they would be ready. They noted that the DCC will be checking receipts to ensure that it has the correct tax information, and that an excise tax of 10 percent is applied to recreational transactions, but not medical transactions by default.”
“For now, you will be able to maintain one menu, and your medical customers will have the option to enter their medical information at checkout. This may change in September, when rec only products are available,” Dutchie noted during the training.
Processing anonymous transactions was another key need for dispensary adult-use customers. The DCC clarified to Dutchie that a dispensary cannot deny a sale to a consumer if they refuse to have a consumer profile created.
Dutchie reps explained that dispensaries also cannot require customers to sign up for store loyalty programs as a contingent requirement of making a sale. “We do have the ability to process a completely anonymous transaction. Instead of a customer name and any customer identifying information, it will assign a random number to this order. This number will print out on a receipt, so if you need to process a return or a void, as long as they have their receipt, you’ll be able to find this transaction again and process that as you would with a standard medical transaction, return or void allotment information is still pulling in for our anonymous transaction.”
A problem that every recreational market has, is that a customer can go to multiple stores because there is no requirement for someone to create a profile. METRC does not track customer data for any adult-use purchases. A person could buy their max allotment and walk down the street to purchase more. According to Dutchie, “What we have been told by the Division of Cannabis Control is that is a criminal matter that will be handled on the behalf or in regards to that purchaser. It’s not something that a dispensary can be penalized for, since there is no way to ensure that someone hasn’t already purchased in another location.”
More details about how cannabis producers, sellers and ancillaries are preparing for the adult-use market will be covered in future articles.
When Will Adult-Use Dispensaries Near Me Open?
Adult-use dispensaries will open in Ohio when they’ve completed the requirements of the DCC. MedicateOH will report when the first Ohio dispensaries open to all adults. Subscribe here to get our newsletter every Monday in your email inbox.
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