This week, one Ohio agency completed its review of new rules, finalizing the process for some Ohio dispensaries to open to adults. The applications for dual licenses for current medical marijuana dispensaries will go live between May 27th and June 7th. Once current MMJ dispensaries submit their applications and receive approved status, sales to the general public may begin.
JCARR Review Done, Rules to be Finalized by May 27th
The Joint Committee on Agency Rule Review (JCARR) completed its review of the new licensure rules for dual-use cannabis on May 13th. JCARR approved rules 1301:18-1-01 through 1301:18-2-06, with only one testimony submitted from Parkland Ventures, an Ohio-based minority-owned small business.
This review allows the Division of Cannabis Control (DCC) to finalize the rules by May 27, 2024. Existing medical marijuana facilities may apply for licenses to sell adult-use cannabis under the new 10(B) license. Applications for dual licenses for existing medical dispensaries to sell cannabis to adults will be made available sometime between May 27 and June 7.
Department of Commerce Issues Statement
James Crawford, Public Information Officer for the Ohio Department of Commerce issued this statement to MedicateOH today regarding what patients of the program might consider as adult-use dispensaries open:
“It’s important to the Division that patients in the Medical Marijuana Control Program continue to have access to the products they need. As such, our proposed rules for dispensaries selling both medical and non-medical cannabis would require them to do all of the following:
- Equally serve and accommodate medical patients and non-medical consumers alike.
- Ensure an ongoing inventory sufficient to maintain an adequate supply of medical marijuana to meet the current demand and projected patient and caregiver population.
- Provide accommodations to medical patients and caregivers.
Although the state is preparing for the rollout of non-medical cannabis sales later this year, we encourage patients currently in the MMCP to remain with the program since doing so:
- Ensures the patient is speaking with a physician about their qualifying condition and maintains access to medical marijuana at current operational medical marijuana dispensaries.
- Provides medical marijuana patients access to discounts that may be offered at a dispensary.
- Ensures continued access to medical marijuana and exempts medical marijuana sales from the 10% excise tax that will be levied on non-medical cannabis sales per the approved statute.
Additionally, employers have discretion to establish their own drug-free workplace policies. Some individual employers have chosen to take the status of an employee as a medical marijuana patient into consideration. Similar considerations have been given for individuals under court supervision who are a medical marijuana patient.”
Will State Dispensaries be Ready?
The state’s MMJ industry and patients on Reddit express concerns about supplies dwindling and prices increasing in coming months. Specifically, fears reflected that half ounce and ounce flower options will be harder to come by, with mostly only “Ohio tenths” (2.83 g) available. Packaging more flower individually in tenths could cause considerable packaging waste, among other concerns.
We spoke to several licensed operators on both the supply side and customer side to dispel rumors.
Pete Nischt, Vice President, Compliance and Communications for Klutch Cannabis and The Citizen by Klutch dispensaries said that since the passage of Issue 2, Klutch has been working around the clock to prepare for Ohio’s new adult use market. They are excited to hear sales are starting next month. “A lot of the changes we’ve been implementing have been about finding ways to scale without sacrificing the high levels of quality and consistency we’re known for in the market. We’ve been working on ways to increase production capacity, both in the short term and long term, staffing up, re-training, and investing in areas where we think we can improve and streamline operations. We’ve been looking at our product portfolio and making sure that we are still delivering the best products we can in every product line we offer. We’ve been doing a lot of R&D on new tech and hardware, and we’ve been participating in opportunities to provide comments on rule proposals where we think we can be helpful.”
“I’ll also add that, when we built out our stores, we believed we’d get here someday. So, we put a lot of time and energy into dispensary design and layout – adding oversized waiting rooms, sales floors, and vaults to ensure that we had capacity to serve people in a much larger market when it finally arrived. Ultimately, all of this translates into Klutch being ready for Adult Use sales on day one.”
Nar Reserve Also Ready for Rec
Nar Reserve Dispensary’s Ali Bazzi commented that they are also going to be ready on day one. “Our dispensary is fully prepared to welcome adult-use customers by the deadline. We have been working diligently to ensure that our infrastructure, staffing, and inventory management systems are robust and scalable. We believe our current team has the skills and training to handle the increased customer volume and to provide a seamless and positive experience for all our patrons. As we continue to hire, our staff will undergo more extensive training to meet these new demands. We are committed to meeting the needs of both our new adult-use customers and our loyal MMJ patients.”
We asked how Nar Reserve will prioritize MMJ patients once they begin serving adult-use customers, too. Bazzi said that Nar Reserve highly values their MMJ patients and recognizes their unique needs, as the whole program would not be possible without their participation. “Our goal is to provide uninterrupted service and support to our MMJ patients, even as we expand our offerings to adult-use customers. To achieve this, we are working closely with our vendors to maintain a steady supply chain and to keep costs as low as possible.
“The State has taken steps to prioritize MMJ patients by simplifying the process for dispensaries to manage medical and recreational transactions at the point of sale (POS). Unlike other states, such as Michigan, where separate licenses were required for medical and recreational products, Ohio allows all products to be sold to both MMJ patients and adult-use customers. This flexibility helps ensure that our MMJ patients have continuous access to the products they need, without the necessity of earmarking specific inventory.
“Furthermore, the state’s initiative to apply the marijuana tax only to adult-use patrons and to make medical renewals free further supports our efforts to prioritize MMJ patients. These measures help us maintain affordability and accessibility for our valued MMJ patients while we expand to serve the recreational market,” Bazzi said.
We asked what a dispensary like Nar Reserve, located in busy downtown Columbus, expects in terms of inventory levels and traffic. Bazzi said, “We anticipate a substantial increase in both inventory levels and customer traffic. With the transition to a recreational market, we expect the customer base to potentially grow up to tenfold in the future. Our vendors are currently increasing production and holding inventory and adjusting prices in anticipation of this demand surge. While this may lead to some short-term price increases, we are committed to balancing supply and demand effectively. By earmarking products for MMJ patients and collaborating with vendors to ensure supply, we aim to manage this transition smoothly. Our team is prepared to handle the increased traffic, and we are implementing strategies to streamline operations and enhance the customer experience for all our patrons.”
Bazzi added, “We believe these changes will ultimately benefit both our MMJ patients and new adult-use customers, fostering a thriving and sustainable cannabis market in Ohio.”
Ohio MMJ Patients: Should I Stock Up?
Where operators like Klutch and Nar say they are prepared to handle both patients and the influx of adult-use consumers, your experience at your favorite Ohio dispensary may vary. Medical patients who rely on cannabis as their daily medicine might consider stocking up on their chosen products ahead of the switchover.
Talk to your local dispensaries about what to expect at the store(s) where you frequently purchase. In most cases, budtenders can work with you to develop a plan so you’ll have enough product to manage your condition safely and be able to receive it in a timely manner.
Any complaints can be made to the Division of Cannabis Control via this online form.
Adult-Use Dispensary Moratoriums
As of March 31, 2024, 47 Ohio municipal corporations or townships passed moratoriums prohibiting adult-use cannabis businesses. The Ohio State University’s Drug Enforcement and Policy Center collected the language of 43 of these moratoriums and compiled this very detailed report.
The report notes that localities that prohibit adult-use operators may forego potentially significant tax revenue stemming from cannabis businesses setting up shop within their boundaries. Though tax revenues won’t accrue until the second half of 2024, revenues soon thereafter expect to be considerable.
Ohio MMJ Program News
On May 8th, the state Medical Board examined female org*smic dysfunction (FOD) and autism spectrum disorder (ASD) for their potential to be added to the state’s qualifying conditions for medical marijuana cards based on petitions accepted for further review in February. At the May 8th meeting, the Board received expert third-party reports for the petitions to add these two new conditions. The Board may issue its decision to accept or reject the inclusion of these as qualifying conditions at its next meeting in June.
On May 15, the Division of Cannabis Control officially eliminated the medical marijuana patient and caregiver registration fees. Previously, patients paid $50 annually while caregivers paid $25, until the Division reduced the fee to one cent on March 4. The reduction to $0.01 acted as a quick-fix, but the fee has now been eliminated entirely.
Federal News
Federally, the DEA issued its rule proposal last week to move cannabis to Schedule 3. Additionally, President Joe Biden on Thursday announced that his administration took a “major step” to reclassify marijuana as a less dangerous substance, a seismic shift in the country’s drug policy. Learn more about how reclassification could complicate an already complicated cannabis industry, both in Ohio and across the United States.
Follow MedicateOH for updates on cannabis in Ohio.
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Gabrielle Dion Medicate OH's Founder and Publisher is a native of Cincinnati, Ohio and holds an undergraduate degree in journalism and a master's degree in public administration, both from Northern Kentucky University. She has more than 20 years of experience writing and editing professionally for the medical and wellness industries, including positions with The Journal of Pediatrics, Livestrong, The Cincinnati Enquirer, and Patient Pop. View all posts
