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Navigating Ohio’s Recently Proposed License Application Rules

Ohio's cannabis market is looking at a promising future with new proposed rules. Dual-use licenses give medical marijuana facilities a cost free path into the adult-use market. Cultivators can open at least one dispensary. New two-phase dispensary location application process.

Ohio’s cannabis market is on the brink of exciting changes with the Division of Cannabis Control (DCC) revealing its latest proposed rules for adult-use cannabis license applications available June 7, 2024. This release marks a significant opportunity for Ohio medical marijuana facility owners to pivot into the retail market by introducing dual-use applications with no attached fees. Similarly, any party interested in opening a dispensary can also apply for a dual-use license which will double their chances of having their submission accepted in the DCC’s application lottery system. The proposed rules will give cultivators the chance to expand into the retail market by allowing them to open at least one dispensary location.

For those interested in taking advantage of these changes or opening a dispensary in Ohio, it’s crucial to begin preparing as soon as possible. Ohio’s new two-phase system operates on a lottery basis and has specific location requirements. Meeting the necessary requirements and being successful in the first phase of applications will allow you to open your dispensary at an ideal location. On the other hand, securing a location will be a lot more challenging if you’re moved to the second phase. Starting preparation early and with professional guidance is the key to navigating this process effectively.

Be sure to follow CannDelta or get in-touch using our online form or toll-free number for all the answers to your Ohio cannabis license application questions.

What can you do with a Dual-use License?

The DCC has created a massive opportunity for Ohio medical marijuana facilities by introducing dual-use license applications. These licenses enable participation in both the medical and adult-use cannabis markets, allowing businesses to function as medical marijuana facilities and retail dispensaries at the same location. The application for this license is completely free for medical marijuana facilities integrating adult-use into their business. In other words, this is a straightforward path to boost profits and forge valuable industry connections.

Level 1 cultivators can now operate up to three dispensaries at specified locations, while Level 2 cultivators are limited to one. Additionally, medical marijuana dispensaries without links to cultivators or processors can apply to open one dispensary at a designated location.

Understanding the Lottery System and Application Structure: What's Important?

Selection for Ohio dispensary licenses is conducted through a lottery system managed by a third-party organization. Each applicant is entered into all eligible license lotteries applicable to their application, with dual-use applicants subjected to twice the chance of selection for each license applied for. The application process is also becoming more structured. Applicants must  provide key information such as primary points of contact, ownership details, and the type of dispensary they intend to operate.

New dispensary applicants who do not currently operate a medical marijuana facility will be subject to a $5,000 fee. Having a successful application submission will be crucial for those looking to open a new dispensary location with the DCC’s new two-phase application process.

What’s new About Ohio’s Dispensary Location Application Process?

Applying for dispensary locations has transitioned into a two-phase system. In phase one, applicants must select a location for their dispensary before a deadline, which is yet to be determined. This step aims to prevent new dispensaries from being constructed within a one-mile radius of existing licensed ones. The DCC then evaluates the chosen sites and disqualifies those that fail to meet the guidelines. Approved site locations are made public, and no new dispensaries can open within a one-mile radius. Unsuccessful applicants will be moved to phase two. Here, the DCC releases a list of successful phase one applicants and available dispensary licenses. Regional districts are established and publicly disclosed, along with the total number of licenses for each district. Phase two applicants must submit their six preferred districts for consideration, with district assignments based on the initial lottery ranking. Following this, applicants can request locations adhering to the one-mile radius rule outlined in phase one. CannDelta stands ready to assist applicants in maximizing their chances of being selected through strategic guidance and support.

Will There be Additional Considerations for Social Equity & Jobs Program Participants?

The answer is yes! Some form of priority will be given to participants in the Cannabis Social Equity & Jobs Program and to emphasize diversity and fair opportunities, and those that qualify will be notified at a later date. The DCC’s commitment to regular reviews and assessments of the licensing process hints at potential regulatory adjustments in response to industry dynamics.

CannDelta as your Guide to Success in Ohio Cannabis

As pioneers in Ohio’s cannabis market, CannDelta offers unparalleled expertise in navigating the DCC application process. From crafting bulletproof applications to providing guidance on site selection and competitive strategies, we equip businesses with the tools needed to thrive in Ohio’s developing cannabis landscape.

Ohio’s cannabis industry is on track for unprecedented growth. By leveraging the expertise and support available through CannDelta, both aspiring entrepreneurs and established cannabis business owners can become very successful in this dynamic market. To learn more about starting a cannabis business in Ohio, visit CannDelta’s website or contact us by calling our toll-free number provided below.