On June 7, Ohio opened the application process for state medical marijuana dispensaries to sell recreational products. Published on the Division of Cannabis Control’s website, the dual-use license permits would allow existing businesses to conduct non-medical sales with adults aged 21 and older.
“Existing businesses” is the key phrase, as permit applications are not currently available to the general public. The state will consider patient and consumer demand during a 24-month review period before giving would-be cannabis entrepreneurs a shot at recreational ownership, said James Crawford, public information officer for the Ohio Department of Commerce, which oversees the Division of Cannabis Control.
“We want to make sure there is fair access to Ohio consumers, and do everything we can to eliminate the illicit market,” Crawford said in an email. “And so the division will be mindful of where dispensaries are located to avoid large pockets where an illicit market can flourish in the absence of legal facilities. The division also wants to avoid an over-concentration of facilities in the same geographic region, which could lead to a higher failure rate of facilities.”
Medical companies enrolled in a state-run caregiver registry, meanwhile, are eligible for a10(B) license, with Level I growers eligible for up to three licenses, and Level II growers qualified for one. Cultivation license types are classified into two categories based on production size. Level I cultivators are currently allowed 25,000 square feet of growing space, while a Level II license designates 3,000 square feet of production capacity.
However, non-medical licensees may submit an expansion request under the Issue 2 initiative approved by voters in November 2023. Level I growers will be given up to 100,000 square feet of cultivation area, with Level II cultivators permitted 15,000 square feet once a non-medical license is issued.
Applicants for either dual-use or recreational licenses must pay a non-refundable $5,000 fee – businesses selected in a June 21 license lottery could then proceed to site selection starting on July 1.
Future licensing rounds will hinge, in part, on a cannabis social equity and jobs program outlined in Issue 2. The program, to be established and managed by the Ohio Department of Development, will eventually issue 40 Level III cultivator licenses – which permit 5,000 square feet of growing space – and 50 additional dispensary licenses.
In the meantime, the Division of Cannabis Control must review the number of permits in circulation. This process will take place on a biannual basis following 24 months from the date the first non-medical license is issued, said Crawford.
The state has not given a specific timeline for the social equity program, instead stating that it will “provide notice in advance of the application period for which preference will be given to participants.”