Ohio Unveils Proposed Rules for Dual-Use Licenses, Allowing Medical Marijuana Businesses to Expand into Adult-Use Market

Ohio regulators have released proposed rules facilitating the transition of medical marijuana businesses and provisional license holders into dual-use licenses, enabling them to serve both the medical and adult-use cannabis markets. The draft rules, disclosed by the state’s Division of Cannabis Control (DCC), primarily concentrate on the application process, qualifications, and administrative procedures to meet the September 7 deadline for issuing adult-use provisional licenses, as reported by Youngstown TV station WKBN.

In January, the DCC issued initial rules that outlined specific requirements, including licensing fees and time constraints. The application process for converting to a dual-use license is expected to be “simple” and require “minimal time,” as outlined in the DCC's nine-page proposal. Notably, Ohio stands apart from other recreational markets by not imposing an application fee.

The rules also provide clarity on qualifications and disqualifications related to various criminal offenses. Applicants with a first-degree misdemeanor conviction or guilty plea within five years of filing an application will be denied a license. However, those with first-degree misdemeanors beyond the five-year timeframe will not face automatic disqualification. This includes offenses related to marijuana possession, marijuana trafficking, illegal cannabis cultivation, illegal use or possession of drug or cannabis paraphernalia, and other marijuana-related crimes.

Public comments on the proposed rules are invited until 5 p.m. ET on February 27. Business applications for the expanded licenses are set to be available by June 7. Ohio voters overwhelmingly approved the legalization of recreational marijuana cultivation and sale in November.