Ohio Inches Closer To Adult-Use: First Dual Dispensary Licenses Could Be Issued As Soon As Summer

Last week, the Ohio Division of Cannabis Control (DCC) released more draft administrative rules outlining details for adult-use dispensary licenses that could be issued as soon as this summer, although exact dates remain fuzzy. Here’s the latest:

When will adult-use dispensaries open? 

According to the DCC website, “currently there are no individuals or entities licensed to sell non-medical cannabis in the state of Ohio, and any sale of marijuana prior to non-medical licenses being issued may be subject to criminal penalties.” The first dispensaries to open to adult-use customers will likely be sometime this summer, but that remains unclear.

Rep. Jamie Callender (R-Concord), an active Ohio legislator in this area, took to the media last week to update citizens. “We could have retailers — recreational licensed retailers — in Ohio by mid-June,” Callender announced to News 5 Cleveland. “We should begin to see legal recreational sales of marijuana in Ohio certainly before July 4th weekend.”

Despite Rep. Callendar’s predictions, the Division of Cannabis Control reported to MedicateOH yesterday that they remain on schedule to make dual-use permit applications available to current medical permit holders no later than June 7, and to begin awarding permits no later than Sept. 7, as laid out in the voter-initiated statute. (They must adopt rules necessary to initially implement the initiated statute within nine months of the effective date.)

But those dates could change if the legislature were to act, said Jamie Crawford, Department of Commerce spokesperson. “It would be inappropriate for us to engage in hypotheticals as it relates to what the final timeline might look like, since it could be accelerated in the event of legislative action,” Crawford noted.

Although the administrative rules reflect the details voters approved in Issue 2, further review still needs to occur before they’re finalized. The rulemaking process provides multiple opportunities for stakeholders to provide feedback, including a hearing on April 23rd (more details below). 

New Rules to Govern Both MMJ and Adult-Use Dispensaries Proposed

The Division is proposing several new rules pursuant to O.R.C. 3780; however, they will replace other rules currently in effect under O.R.C. 3796, which were specific to the regulation of the Medical Marijuana Control Program. The new rules apply to both medical and non-medical cannabis.

Some of these suggested changes would loosen some of the restrictions that stymied MMJ license holders. Cases in point: 

• Mantraps and secured delivery bays no longer required. (The required Mantraps deemed unsafe by some municipalities’ fire departments, leaving dispensary operators in a no-win situation.)
• Expanded acceptable hours for dispensaries until 11 pm. (Previously 9 p.m.) 
• Adjustment of licensee fees so that they are levied more relative to their size and potential for profit. 

Additionally, three conveniences already available to MMJ patients at some dispensaries now allowed for both adult use and MMJ patients. These conveniences include online ordering, curbside pickup and drive-up windows. Delivery service not addressed yet in the rulemaking process. Full proposed rules here.

DeWine Urges Legislators to Clarify Rules on Delta-8 Products, Public Smoking Areas

The rulemaking process continues amid ongoing pleas from Gov Dewine and Republicans to take more action legislatively to refine the details of Issue 2. The official position of the DeWine administration and the Department of Commerce has been that the General Assembly should amend the initiated statute to allow legal sales sooner at medical dispensaries, but no action seems to be moving forward on that.

During his 2024 state of the state address on Tuesday, Governor DeWine called on the General Assembly to pass legislation that would restrict the sale of Delta-8 products. DeWine previously endorsed legislation that would require Delta-8 products to be sold under the same restrictions as the medical cannabis program. The Governor called on legislators to make clear that cannabis cannot be smoked in public places, “especially places where smoking it would interfere with children and other Ohioans who should not or would not want to be around such smoke”.

Seventeen states have banned delta-8, according to the National Cannabis Industry Association.

MMJ Licenses Issued for Dispensaries in Columbus and Delphos

As the dual-license date lingers, Ohio issued its 121st and 122st medical marijuana dispensary Certificates of Operation last week. Parkland Ventures LLC, located at 2765 Gender Rd. in Columbus and Ohio Holistic Health LLC, located at 215 W 5th St in Delphos, received their certificates and are now able to open to patients. 

Who Will Get the Dual Licenses?

Each current medical marijuana cultivator, processor, testing laboratory, and dispensary will receive a non-medical cannabis cultivation, processing, testing, and dispensing license, respectively. Those licenses are for the same location at which they are currently operating.

Each current medical marijuana level I cultivator will receive three dispensary licenses, while current medical marijuana level II cultivators will receive one dispensary license. Each medical marijuana dispensary that is not commonly owned or controlled by a cultivator or processor will receive an additional non-medical cannabis dispensary license at new locations selected during the application process. Additionally, 50 social equity licenses will be up for grabs at a later date. 

Will There Be Enough Cannabis When Adult-Use Dispensaries Open? 

Because the DCC won’t process applications for retailers until at least June, there’s no way to tell the exact date that cultivators and processors will need to begin provide product to dispensaries for the consumer market. Cultivators and processors MedicateOH spoke to plan to stockpile product now to be ready in hopes of a rollout earlier than September. One processor told us their research on similar states’ adult-use rollout indicates the size of the adult-use market may be up to 3 million Ohioans. 

How Can I Be Part of the Process?

The DCC will conduct a public hearing regarding proposed rule adoptions and rescissions on April 23, 2024, at 10:00 A.M. at the Riffe Center, 77 South High Street, 19th Floor, Room 1932, Columbus, Ohio 43215.

The DCC proposes to adopt new rules: 1301:18-1-01 Definitions, 1301:18-2-01 Applications Generally, 1301:18-2-02 Authorized Initial Application Periods, 1301:18-2-05 Application to Convert Chapter 3796 Licensed to Dual-Use Cannabis License, 1301:18-2-03 Cannabis Social Equity & Jobs Program, 1301:18-2-04 Additional Cannabis Operator License, 1301:18-2-06 10(B) Dispensaries

The DCC also proposes to rescind:

• OAC 3796:6-3-10 Dispensary reporting into the prescription monitoring program. The rule is proposed for rescission because it is duplicative of new rule OAC 4729:8-5-01.

The proposed rules may be accessed on the Register of Ohio or on the DCC website. The full text of the proposed rules is also available at the office of the Division of Cannabis Control in printed form. 

Rules Public Hearing and Written Arguments

At the public hearing, any person affected by the proposed actions may appear and be heard in person, by the person’s attorney, or both, may present the person’s position, arguments, or contentions, orally or in writing, offer and examine witnesses, and present evidence tending to show that the proposed rule or amendments, if adopted or effectuated, will be unreasonable or unlawful.

Any person who wishes to present his or her position, arguments or contentions in writing may do so by electronic mail to DCCRules@com.ohio.gov, CSIPublicComments@governor.ohio.gov or write to Ohio Division of Cannabis Control, 77 South High Street, 20th Floor, Columbus, OH 43215. Written comments may also be submitted at the hearing. Submit all written comments must to the Division no later than 5:00 p.m. on April 23, 2024.

Annual Survey Open: Ohio State University DEPC

Again this year, the Ohio State University Drug Enforcement and Policy Center (DEPC) requests patients and potential patients to evaluate their experiences and satisfaction with the Ohio Medical Marijuana Control Program (OMMCP). Participants should fill out an anonymous online survey. Anyone can take it, but they are especially interested in responses from adults who use or have interest in using medical marijuana. 

See our interview with OSU’s Jana Hrdinová about the 2022 survey. 

MedicateOH Patient Survey

We also encourage Ohio MMJ patients to share their experiences as part of our 2024 MMJ Patient Project. We may use anonymous responses in upcoming stories. 

Subscribe today to get the latest news about Cannabis in Ohio and beyond. Every Monday in your inbox. 

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