Ohio Marijuana Officials Send Guidance To Dispensaries On Rules For Opening Day Sales Events, Advertising And More Ahead Of Market Launch

As Ohio moves closer to launching its adult-use marijuana market, regulators have distributed supplemental guidance on the rules for opening day events, advertising and more.

The Division of Cannabis Control (DCC) has been issuing the state’s first dual certificates of operation for marijuana growers, processors and testing labs in recent weeks so they can begin working with both medical and recreational cannabis. Numerous existing retail dispensaries have been granted provisional licenses as well, but so far none of them have been certified to begin operations

Things are moving forward, however, as regulators have commenced inspections of certain marijuana dispensaries to ensure they’re meeting updated compliance requirements as one of the final steps before they’re able to open shop. And in anticipation of those first openings, DCC sent applicants new guidance materials to “prepare for dual-use operations.”

One way that the division is preparing prospective dual licensees is by reminding them of what they can and can’t do to mark their opening day. For example, businesses cannot allow on-site consumption, offer samples (infused or non-infused), have music or food trucks outside the shop, promote the opening with celebratory decor on the exterior or hold a ribbon cutting ceremony outside.

However, they are permitted to have music inside as long as it’s not a live performance. They can also offer complimentary non-alcoholic beverages and promote the opening by holding a ribbon cutting ceremony inside the dispensary.

DCC also advised applicants that, until new advertising rules are enacted, all businesses must still adhere to the existing regulations in place under the state’s medical marijuana law. To help dual licensees, the division provided a template for what they can post without requiring independent approval.

Advertising material for dual licensees may include the opening date, approved dispensary name, dispensary logo, a note about adults 21 years being allowed to access the shop, location and hours of operation, the business website and social media handles and information about whether online orders, drive-thru services and curbside pickup are available.

Via DCC.

“In order to be used without prior approval, the advertisements using the above elements must utilize a solid background,” DCC said. “You are not required to use all of the elements listed above for the advertisement to be considered compliant with the template; however, any elements not listed above must comply with [state rules] and be submitted for Division review and approval prior to use.”

Regulators also reminded businesses that they will need to update their license number after receiving a certificate of operation and display a label identifying them as licensed by the division.

“This seal benefits entities licensed by the Division of Cannabis Control by distinguishing licensee products from other unlicensed, unregulated products, and helps protect patients and consumers who can know by seeing this seal on packaging that the product is tested and regulated,” it said.

Additionally, DCC provided guidance on media access to cannabis businesses, which will likely be a key consideration for licensees on opening day as news outlets prepare to cover the market launch.

The guidance emphasized that any photography or video must not feature security systems or show any identifying information about patients, caregivers or adult-use consumers. At dispensaries, people must have given consent if they’re photographed or recorded for media purposes.

It remains unclear when the first dispensaries will be certified or when sales will officially launch, but the expectation is that it’s imminent, especially given that regulators have started inspecting the provisional licensees. The latest they can be issued under state law is September 7.

DCC has made clear that it would be prioritizing the non-dispensary license types first to ensure that the infrastructure and supply of cannabis would be sufficient to meet demand of both patients and adult consumers.

In order for a dispensary to secure a certification, applicants that received a provisional licenses must first prove that they’ve updated their point-of-sale technology to distinguish between medical cannabis and adult-use sales, enhance security and verify that they will be able to maintain an adequate supply for patients.

Before opening applications, regulators released informational materials to prepare prospective applicants, outlining regulatory requirements they must satisfy in order to be eligible for the hybrid license.

“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.

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.

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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 May’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.”

Read DCC’s guidance for marijuana businesses below: 

Marijuana Businesses Could Advertise In Newspapers And Magazines If Rescheduling Is Approved, Congressional Researchers Say

Photo courtesy of Mike Latimer.