Ohio Medical Cannabis Operators Could Launch Adult-Use Sales in June

A state committee cleared proposed regulations for established businesses to convert to adult-use sales, and once applications launch, lawmakers predict a swift approval process.

Rep. Jamie Callender, R-Concord, during a JCARR meeting May 13.

May 13, 2024

Applications for medical cannabis operators in Ohio wishing to cultivate, process and sell in the adult-use market will be available by June 7, which may mean that licensed sales could begin next month.

During an administrative hearing May 13, a group of state lawmakers that are part of the Joint Committee on Agency Rule Review accepted multiple proposed regulations from the state's Division of Cannabis Control, including rules for licensed medical cannabis operators converting to the adult-use program, known as “dual-use” licenses.

Ohio Rep. Jamie Callender, R- Concord, thanked the Department of Commerce, which oversees the Division of Cannabis Control (DCC), during the brief hearing, emphasizing that the rules are in line with what voters approved in Issue 2, which legalized adult-use cannabis in Ohio at the end of 2023.

“Thank you very much for the work you’ve put in on this, for doing this timely and to help move forward the will of the voters, and we look forward to watching these rules go into effect in a couple of weeks,” said Callender, who also serves as JCARR’s house chairperson.

Ohio Sen. Bill DeMora, D-Columbus, who is also part of the JCARR panel, asked Jim Canepa, superintendent of the DCC, to clarify and confirm that the rules were in fact in line with the proposed law Ohio voters approved by a more than 57% margin in November 2023, and that no changes were made.

“Senator, it doesn’t change anything. It facilities the initiated statute and all of the administrative processes that are required to accommodate and stand up what is put in place by the initiated statute,” Canepa said during the hearing. “Our role is to make the rules that drive what the initiated statute put in place.”

The rules were reviewed without objection, and with JCARR giving the green light, there are no more administrative hurdles ahead from the agency, a spokesperson for Callender’s office confirmed. JCARR only takes a vote when there is an objection or issue with a rule.

The stated deadline for initial license applications to be available is June 7, 2024, and medical cannabis companies already operating in the program should be able to receive license approval relatively quickly, Jamie Crawford, a spokesperson for the DCC told CBT in April, though he did not specify a time frame.

“If applicants are not making any changes to their ownership structure or modifying their facilities prior to beginning adult-use sales, then it should be a relatively quick licensing process,” Crawford told CBT in April.

Callender told News 5 Cleveland in April that if the DCC rules were approved in May and applications launched by June 7, medical dispensaries could start selling to the adult use market as early as a week after the applications open.

Although the statute includes a timeline for adult-use licensing applications to be available and a goal for when those will be awarded, there isn’t a set date for exactly when sales will launch. According to the statute, the DCC’s goal to issue provisional licenses for nonmedical facilities is Sept. 7, with the rules and regulatory framework for a new adult-use market in place.

However, that limbo period for when cannabis is legal but sales are not in place can fuel the unregulated market, which has taken hold in other states where there is a long delay between legalization and the launch of adult-use sales. New York City is one of the most infamous examples, where unlicensed stores have flourished as the state has struggled to roll out more licensed dispensaries.

There are 37 cultivators and 120 licensed retailers serving Ohio’s 167,153 registered and active patients now. The statute allows for Level I cultivators to receive up to three additional adult-use dispensary licenses and Level II cultivators to receive one dispensary license. Independent retailers can also get up to one additional adult-use dispensary license.

The DCC is also tasked with issuing 40 additional Level III cultivation licenses and 50 dispensary licenses to new market entrants. By September, Canepa said that he anticipates approving about 300 adult-use licenses, according to Columbus CBS-affiliate 10 WBNS.