Today, May 13, 2024, Ohio’s Joint Committee on Agency Rule Review (JCARR) approved eleven rules previously submitted by the Division of Cannabis Control (DCC) for administrative rule review. Under Ohio law, JCARR is the final committee that must approve the proposed rules.

Now what?

Next, the DCC will file the approved rules in the State’s Electronic Rule Filing (ERF) System and set their effective dates. The rules cannot become effective before the tenth day after DCC has filed them in the ERF System. Per Marijuana Moment, Ohio Representative Jamie Callender, Vice Chair of JCARR, believes the rules will go into effect in the next couple of weeks.

When will applications be available?

Per the rules, DCC is required to provide advance notice of its intent to accept license applications on its website. Eligible applicants should check the site regularly.

Dual-use and 10(B) licenses

The first licenses to be issued by DCC will be available only to currently licensed medical cannabis operators. The statute and rules categorize these as “dual-use” and “10(B)” licenses. The DCC must make applications available for these licenses no later than June 7, 2024, and must issue the first license no later than September 7, 2024. The DCC has previously stated that it hopes to begin issuing dual-use licenses prior to the July 4th holiday.

Dual-use licenses

The first licenses to be issued will be the dual-use licenses. Dual-use licenses will permit currently licensed medical cultivators, processors, testing labs, and dispensaries to convert to a “dual-use facility,” allowing those licensees to cultivate, process, test, and dispense both medical and adult-use products.

10(B) licenses

In addition to the issuance of dual-use licenses, the DCC will also permit currently licensed cultivators and dispensaries to apply for 10(B) licenses. These licenses will be allocated as follows:

  • Level I medical marijuana cultivators with a certificate of operation or provisional license may apply for the issuance of up to three (3) dispensary licenses per entity at locations designated in their license application.
  • Level II medical marijuana cultivators with a certificate of operation or provisional license may apply for the issuance of one (1) dispensary license per entity at a location designated in its license application.
  • Medical marijuana dispensaries with a certificate of operation or provisional license, which does not have any common ownership or control with any cultivator or processor may apply for one (1) dispensary license per entity at a location designated in its license application.

For a more detailed explanation of the process for DCC issuance of 10(B) licenses, please read our February 7, 2024, alert. Please feel free to contact the authors or McGlinchey’s Cannabis team with any questions.

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Photo of Daniel Shortt Daniel Shortt

Daniel is a Seattle-based corporate and regulatory attorney who works extensively with entrepreneurs in the cannabis industry. He advises clients on matters related to both hemp and marijuana and frequently speaks on legal issues relating to cannabis across the country and abroad. Daniel…

Daniel is a Seattle-based corporate and regulatory attorney who works extensively with entrepreneurs in the cannabis industry. He advises clients on matters related to both hemp and marijuana and frequently speaks on legal issues relating to cannabis across the country and abroad. Daniel is quoted as an authority on cannabis law in dozens of publications, including Marijuana Moment, Hemp Industry Daily, the Washington Post, and Bloomberg, to name a few.

Photo of David Waxman David Waxman

David Waxman is a highly sought-after advisor to the cannabis industry. With more than three decades of experience counseling clients related to real estate development, zoning, acquisitions, and financing, as well as corporate transactions and environmental regulatory compliance, David Waxman helps clients both…

David Waxman is a highly sought-after advisor to the cannabis industry. With more than three decades of experience counseling clients related to real estate development, zoning, acquisitions, and financing, as well as corporate transactions and environmental regulatory compliance, David Waxman helps clients both translate business goals into results and also protect their interests. He applies his knowledge and experience to advising cannabis industry clients on financial services and investments, operational compliance and best practices, and real estate matters, and is a veteran of Benzinga Cannabis Capital Conference, MJBizCon, and other cannabis industry events.