Ohio is taking another step closer to the launch of adult-use marijuana sales, with regulators approving the state’s first certificate of operations for a dual use testing lab as well as granting additional certifications for hybrid grower and processor licensees.
As the state works to bring a recreational market online following voter approval of legalization last year, the Division of Cannabis Control (DCC) has been processing dozens of applications for existing medical marijuana businesses to convert to serve both patients and adult consumers.
After approving numerous provisional licenses to applicants, DCC issued the first 10 certificates of operation to growers and processors last week. As of Wednesday afternoon, there are 12 growers, 12 processors and one testing lab that have received the dual certification.
Regulators have not yet approved a dispensary to begin adult-use sales, but that could happen any time. DCC has made clear it wanted to prioritize the other license types first in order to ensure a smooth rollout that accounts for increased demand.
“As we have consistently said, there are several factors that must be satisfied before a Certificate of Operation is issued,” DCC said last week. “Given the fact that cultivators, processors and testing labs are less complicated than dispensaries—and to ensure an efficient supply chain—cultivators, processes and labs receive some priority over dispensaries when it comes to issuance of Certificates of Operation to help ensure that, once Certificates of Operation are issued to dispensaries, there is non-medical product available for adult consumers to purchase.”
“This is necessary because dispensaries are not able to sell non-medical product unless the cultivator, processor and lab that have touched that particular product have received their non-medical cannabis Certificate of Operation,” it said.
Here are the businesses that received the certificates of operation as of Wednesday:
BUSINESS NAME
LICENSE TYPE
CITY
Cresco Labs Ohio, LLC
Dual Use Cultivator Level I
Yellow Springs
Riviera Creek Holdings LLC
Dual Use Cultivator Level I
Youngstown
CannaMed Therapeutics LLC
Dual Use Cultivator Level I
Columbus
FN Group Holdings, LLC
Dual Use Cultivator Level II
Ravenna Township
Pure Ohio Wellness, LLC
Dual Use Cultivator Level I
Springfield
Grow Ohio, LLC
Dual Use Cultivator Level I
East Fultonham
GTI Ohio, LLC
Dual Use Cultivator Level I
Toledo
Mother Grows Best, LLC
Dual Use Cultivator Level II
Canton
Fire Rock Cultivation Ohio, Ltd.
Dual Use Cultivator Level II
Akron
Farkas Farms, LLC
Dual Use Cultivator Level II
Grafton
AT-CPC of Ohio, LLC
Dual Use Cultivator Level I
Akron
Greenleaf Gardens LLC
Dual Use Cultivator Level I
Middlefield
Pinnacle Testing and Specialty Lab
Dual Use Testing Laboratory
Akron
Cresco Labs Ohio, LLC
Dual Use Processor
Yellow Springs
Riviera Creek Holdings II, LLC
Dual Use Processor
Youngstown
Beneleaves Limited
Dual Use Processor
Columbus
Certified Cultivators Corporation
Dual Use Processor
Dayton
One Orijin, LLC
Dual Use Processor
Columbus
Grow Ohio, LLC
Dual Use Processor
East Fultonham
GTI Ohio, LLC
Dual Use Processor
Toledo
Pure Ohio Wellness, LLC
Dual Use Processor
Springfield
Mother Grows Best, LLC
Dual Use Processor
Canton
AT-CPC of Ohio, LLC
Dual Use Processor
Akron
Fire Rock Processing Ohio, Ltd.
Dual Use Processor
Columbus
FN Group Holdings, LLC
Dual Use Processor
Ravenna Township
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.
In order for a dispensary to obtain a certificate of operation, applicants that received a provisional licenses must first prove that they’ve met various requirements, which includes updating point-of-sale technology to distinguish between medical cannabis and adult-use sales, enhancing security and verifying 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.
“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.
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.”
Photo courtesy of Mike Latimer.
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