Ohio has taken a step towards the launch of its adult-use marijuana market. With the state’s Department of Cannabis Control (DCC) approving the first wave of licenses for cultivators and processors, the countdown to recreational sales has officially begun.
The move to approve these licenses follows months of anticipation and preparation. Just a month after the DCC issued dozens of provisional dual licenses to existing medical marijuana businesses, the first round of certificates of operation has been granted.
What is a Dual-Use License?
A dual-use license allows businesses to operate in both the medical and recreational markets. This means that the same cultivators, processors, and eventually dispensaries will be able to serve a broader range of consumers. This approach ensures that there is a seamless transition from medical-only sales to a more inclusive market that serves all adults aged 21 and older.
To ensure an efficient supply chain, the DCC has prioritized applications for cultivators and processors. This strategic move is crucial because dispensaries cannot sell non-medical products unless the entire production and testing pipeline is certified for recreational use. By focusing on these two segments first, Ohio is laying the groundwork for a stable and reliable supply of cannabis products once sales commence.
The First Wave of Approved Licenses
The DCC has approved certificates for four cultivators and six processors so far, reported first by Marijuana Moment. These businesses can now begin their dual-use operations, producing and preparing products for both medical patients and recreational consumers.
| Business | Type Of License | City |
| Pure Ohio Wellness, LLC | Dual Use Cultivator Level I | Springfield |
| GTI Ohio, LLC Dual Use Cultivator Level I Toledo | Dual Use Cultivator Level I | Toledo |
| Farkas Farms, LLC | Dual Use Cultivator Level II | Grafton |
| AT-CPC of Ohio, LLC | Dual Use Cultivator Level I | Akron |
| Riviera Creek Holdings II, LLC | Dual Use Processor | Youngstown |
| One Orijin, LLC | Dual Use Processor | Columbus |
| One Orijin, LLC | Dual Use Processor | Columbus |
| Pure Ohio Wellness, LLC | Dual Use Processor | Springfield |
| AT-CPC of Ohio, LLC | Dual Use Processor | Akron |
| FN Group Holdings, LLC | Dual Use Processor | Ravenna Township |
Still Preparing for Dispensary Licenses
While cultivators and processors have received their certificates, dispensaries are still in the queue. The DCC has stated that it will soon begin issuing licenses to dispensaries, pending their compliance with updated regulatory requirements. These include enhanced security measures, updated point-of-sale systems, and the ability to distinguish between medical and recreational sales.
For a business to obtain a certificate of operation, it must meet several regulatory requirements. These include notifying local officials and law enforcement, training employees, and ensuring that security equipment meets state standards. The Ohio DCC has emphasized that while the timeline for dispensary approvals remains uncertain, businesses that are already in compliance with these rules can expect a quicker turnaround.
Although the exact timeline for the start of recreational sales is still unclear, Ohio officials have hinted that it could happen as early as this month. However, according to state law, the latest possible date for the issuance of these licenses is September 7. Once licenses are issued, it will be up to individual retailers to decide when they will begin sales based on factors such as staffing and stock availability.
The launch of recreational sales in Ohio is expected to have a significant economic impact. By expanding the market to include adult-use consumers, businesses can anticipate increased revenue and job creation. An Ohio State study found that the potential annual tax revenue from adult-use cannabis ranges from $276 million in year five of an operational market to $403 million in year five of operations.
The Long Road to Adult-Use Legalization in Ohio
The journey toward the legalization of adult-use marijuana in Ohio has been extensive and fraught with challenges. Governor Mike DeWine, while not a traditional cannabis advocate, has consistently pushed for an expedited regulatory process to address the pressing need for clear guidelines.
In the lead-up to the Ohio Senate’s crucial vote on proposed marijuana regulations in December, Gov. DeWine publicly highlighted the urgency of implementing effective rules to mitigate potential issues. During a press conference prior to the Senate’s decision, he expressed strong concerns about the risk of an expanding black market and the confusion that could arise from ambiguous regulations.
“What we don’t want is a situation where the black market grows and we don’t want a situation really where people don’t know what the rules are, and we just need to get this done,” DeWine said, underscoring the importance of swift legislative action to ensure a smooth transition into Ohio’s new realm of legal recreational marijuana sales.
Ohio’s move to grant its first recreational marijuana licenses is a landmark moment for the state. By prioritizing cultivators and processors, the DCC has laid the foundation for a potentially stable and efficient supply chain. While the timeline for dispensary approvals remains fluid, the groundwork has been laid for a successful launch of recreational sales. As Ohio continues to roll out its adult-use program, the economic benefits and opportunities for community engagement will begin to take shape.
