Regulatory Delays Stall Ohio Recreational Cannabis Sales

Ohio Dispensaries Prepare for Recreational Cannabis Sales

Over 100 Ohio medical cannabis dispensaries are on their way to selling recreational marijuana but still have some steps to complete. The Division of Cannabis Control began accepting applications last month from medical marijuana businesses wanting to participate in the adult-use market. Ohioans voted last year to legalize recreational marijuana for adults 21 and older, but the licensing process for operators couldn’t begin until the division finalized those rules.

Current Licensing Status

As of Thursday, the state had issued 112 provisional dual-use licenses to dispensaries and 78 to either cultivators, processors, or testing labs. Businesses with a provisional license must fulfill several requirements before regulators grant final approval. Dispensaries must also pass a test to demonstrate they can properly distinguish and sell medical and adult-use products.

Timeline and Industry Expectations

The exact timeline for the process remains unclear. Some industry officials initially predicted a June or early July launch, but that timeframe has passed. Division of Cannabis Control spokesman Jamie Crawford noted that the turnaround depends on how quickly applicants meet the various requirements. Business owners still expect recreational sales at existing dispensaries to begin sometime this summer. The state is required by law to approve dual-use licenses for medical marijuana operators by September.

Preparations and Compliance

Dispensaries anticipate being busy once recreational sales launch and have increased staffing to meet the demand. Cresco Labs spokesman Jason Erkes highlighted the state’s quick pace compared to other launches, stating, “This is a big effort with a lot of compliance and regulatory requirements and while it might seem like hurry up and wait, I know the Commerce Department wants to make sure it’s done right instead of done quickly.”

New Dispensary Applications

Separately, the Division of Cannabis Control has received nearly 200 applications for new dispensaries known as 10(B) licenses. Under the law passed last year, large cultivators can apply for three dispensary licenses at new locations, while smaller growers get one. Medical dispensaries not affiliated with a cultivator or processor are eligible for another dispensary license. These new stores may not open until next year.

Ohio’s medical cannabis dispensaries are progressing toward selling recreational marijuana, but various regulatory and compliance steps remain. The state’s swift approach aims to ensure a proper launch, with final approvals expected by September. New dispensaries may take longer to establish, potentially opening next year.