Ohio Regulators Begin Marijuana Dispensary Inspections To Certify Them For Imminent Recreational Sales Launch

As Ohio regulators certify additional marijuana growers, processors and testing labs for dual licenses to prepare for the launch of recreational cannabis sales, inspections of dispensaries have officially commenced—one of the final steps before the market can open.

The Division of Cannabis Control (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.

To that end, the division has issued certificates of operation for 15 growers, 15 processors and four testing labs as of Thursday morning, allowing them to work with both medical and recreational marijuana products.

But while none of the 133 dispensaries with provisional licenses have received certificates of operation yet, regulators have begun conducting inspections of certain facilities to determine whether they’ve met the enhanced standards required in order to obtain a dual license.

“Inspections are happening and have been going on through the week for many of the dispensaries that have applied for dual use licenses,” a DCC spokesperson told Marijuana Moment. “There are multiple phases to this process—from point-of-sale compliance inspections to documentary licensing and legal reviews that are all running concurrently.”

Because dispensaries are “likely in different phases of that process,” the spokesperson said it wouldn’t be feasible to provide “an accurate count on how many have completed the process at this point.”

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.

The expectation is that dispensaries that are in compliance with the updated rules could become operational imminently, though the latest they can be issued under state law is September 7.

“The state is working in order of the supply chain as they’ve begun to issue Level I and Level II operational certificates for cultivators and labs, and have started the process of inspecting dispensaries to make sure everything meets the strict regulatory requirements and is compliant,” Jason Erkes, chief communications officer of Cresco Labs, told Marijuana Moment.

Cresco is among the major cannabis companies that have secured certificates of operation for hybrid cultivator and processor licenses, as it awaits the outcome of the inspections for their dual dispensary licenses to be certified.

Here are the businesses that received the certificates of operation as of Thursday:

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.”

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