Ohio Regulators Issue Provisional Marijuana Licenses To Dozens Of Businesses, Readying Imminent Launch Of Adult-Use Sales

Ohio marijuana regulators have approved dozens of provisional licenses for existing medical marijuana operators to convert to dual-use licenses, setting the stage for a potentially imminent launch of the state’s recreational market.

As of Friday afternoon, the Division of Cannabis Control (DCC) has signed off on 62 provisional dual licenses for dispensaries, cultivators, processors and testing labs, just two weeks after regulators started accepting applications.

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.

Applicants that receive the provisional licenses can’t start selling to adult consumers just yet. They 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. If they meet those standards, and when any inspection requirements are complete, applicants will be able to obtain a certificate of operation to begin dual sales.

“It’s important to keep in mind that a dual-use provisional license does not permit the holder to sell non-medical cannabis; it is issued as 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,” a Department of Commerce spokesperson told Marijuana Moment on Friday. “Following successful completion of that process, Certificates of Operation will be issued based on roughly the order in which completed applications were received.”

“As a reminder, there will be no one singular day when sales begin. 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,” they said. “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.”

Considering how quickly regulators issued the provisional licenses after opening up applications, the expectation is that dispensaries that are in compliance with the updated rules could become operations within weeks, though the latest they can be issued under state law is September 7.

Jason Erkes, chief communications officer at the multi-state operator Cresco Labs, which secured provisional dispensary, cultivator and processor licenses in this first round of approvals in Ohio, told Marijuana Moment that “the speed that the state of Ohio is working at is a testament to their priorities.”

“We’ve worked with municipalities all over the country, and Ohio seems to be working at lightning-fast speed, issuing provisional licenses a week after applications were submitted,” he said. “We’ve never seen that anywhere.”

“We’re obviously very excited—and so are the consumers across the state,” Erkes said. “We’re ready to flip the switch and welcome people into our stores.”

Here’s a list of the currently approved provision dual licensees as of Friday afternoon:

As of noon on Friday, regulators had received 235 applications from existing medical cannabis businesses seeking to covert to dual-use licensees.

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.

—
Marijuana Moment is tracking more than 1,500 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
—

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 last month, said. “We can’t do it ourselves.”

New Hampshire Residents Support Marijuana Legalization Bill That Lawmakers Killed Last Week, Poll Shows