Ohio Administrative Code
Title 1301:18 - Division of Cannabis Control
Chapter 1301:18-2 - License Application Requirements
Section 1301:18-2-06 - 10(B) dispensaries
Universal Citation: OH Admin Code 1301:18-2-06
Current through all regulations passed and filed through September 16, 2024
(A) For purposes of this rule, the following definitions apply:
(1)
"10(B) applicant" means any cultivator or dispensary who is
eligible pursuant to division (B) of section
3780.10 of the Revised Code to
apply, and submits an application for, a 10(B) license in accordance with this
rule.
(2)
"10(B) license" means a dispensary license issued
pursuant to division (B) of section
3780.10 of the Revised Code and
this rule.
(3)
"Facility site location application" means an
application for selection of a facility site for a 10(B)
license.
(B) All 10(B) applicants authorized to apply for 10(B) licensure shall abide by all application requirements outlined under this rule.
(C) An applicant that fails to abide by all application requirements may have its application eligibility adjusted, or its application abandoned, by the division.
(D) Distribution of 10(B) application materials shall occur on the division's internet website located at www.com.ohio.gov/divisions-and-programs/cannabis-control.
(1)
Any and all updates and ongoing public notices shall be
conspicuously posted on the division's internet website.
(2)
All 10(B)
applicants have a duty to regularly monitor and review all notices provided on
the division's internet website throughout the application
process.
(E) Determination of authorized 10(B) applicants.
(1)
Prior to
publishing 10(B) application materials, the division shall determine which
entities are authorized to apply for 10(B) licensure.
(a)
The division
shall notify all authorized entities in writing of the following:
(i)
That the entity
is authorized to apply for 10(B) licensure;
(ii)
The total number
of 10(B) licenses for which the entity may apply;
(iii)
The number of
licenses an entity is authorized to apply for that are eligible for the phase
one site selection process; and
(iv)
The number of
licenses an entity is authorized to apply for which are eligible for the phase
two site selection process.
(b)
Each entity
authorized to apply shall have one 10(B) license eligible for the phase one
site selection process.
Any additional
10(B) licenses issued to the same entity shall be eligible for the phase two
site selection process.
(2)
Upon receipt of
its authorization to apply, all eligible 10(B) applicants may submit an initial
application as outlined by paragraph (F) of this rule.
(F) Submission of initial application
(1)
All 10(B) initial
applications shall be completed on a form prescribed by the division that
demonstrates or attests the following:
(a)
The applicant's
designated point of contact that shall serve as the main contact for the
division for the duration of the application period.
The following information for the applicant's point of
contact:
(i)
Full legal name;
(ii)
Telephone number
that may be utilized during normal business hours;
(iii)
Electronic mail
address;
(iv)
Mailing address; and
(v)
All information
provided must be in working order and readily available to receive voice
messages, electronic messages, or other communication as
applicable.
(b)
The identity of
all of following associated with the applicant:
(i)
All current
owners, officers, and board members;
(ii)
All proposed
owners, officers, and board members;
(iii)
All
institutional or private investors;
(iv)
Any individual
with a financial interest in the applicant; and
(v)
Any individual
with significant influence or control over the applicant.
(c)
Applicant does not have an ownership or investment interest
in, or compensation arrangement with:
(i)
An adult use
testing laboratory licensed pursuant to Chapter 3780. of the Revised Code;
or
(ii)
An applicant for a license to conduct adult use
laboratory testing.
(d)
Applicant does
not share any corporate officers or employees with:
(i)
An adult use
testing laboratory licensed pursuant to Chapter 3780. of the Revised Code;
or
(ii)
An applicant for a license to conduct adult use
laboratory testing.
(e)
All of the
following individuals associated with applicant do not have a disqualifying
offense as defined by rule 1301:18-1-01 of the Administrative Code which would
preclude individual licensure:
(i)
Any administrator or individual responsible for the
daily operation of the proposed facility;
(ii)
All owners,
officers, and board members, of the applicant seeking licensure;
and
(iii)
All employees and agents of the proposed
facility.
(f)
Applicant will not operate within five hundred feet of
a prohibited facility as defined by division (A)(35) of section
3780.01 of the Revised
Code.
(g)
Compliance with all applicable tax laws within the
state of Ohio;
(h)
Applicant is not contemporaneously employed by a
regulatory agency or governmental entity within the state of Ohio that within
that role may significantly influence or control entities licensed under
Chapter 3796. or 3780. of the Revised Code.
(i)
Selection of one
of the following categories for licensure:
(i)
Dual-use cannabis
dispensary license
(a)
For purposes of this rule, a dual-use license has the
same meaning as defined by rule 1301:18-1-01 of the Administrative
Code.
(b)
Applicants who choose to apply for a dual-use license
shall:
(i)
Adhere to all dual-use licensing requirements for a period
of four years.
(ii)
Ensure that its facility equally serves and
accommodates medical patients and caregivers and non-medical consumers
alike.
(iii)
Ensure ongoing inventory sufficient to maintain an
adequate supply of medical marijuana to meet the current demand and projected
patient and caregiver population.
(iv)
Provide
accommodations to medical cannabis patients and caregivers that may include,
but is not limited to, the following:
(A)
Dedicated hours
of operation limited to medical- only patients and caregivers during which
adult- use consumers are prohibited from the facility.
(B)
Expanded options
for medical cannabis delivery and online ordering.
(C)
Efficient
point-of-sale accommodations that similarly and expeditiously serve medical
patients, caregivers, and adult-use consumers.
(ii)
Adult-use only dispensary license.
An adult-use only dispensary license may engage in all
permissible activities outlined under section
3780.15 of the Revised
Code.
(j)
Payment of the
non-refundable application fee in the amount of five- thousand dollars, to be
submitted via a method approved by the division.
(2)
Deficiencies in
applications:
(a)
Upon determination by the division that a 10(B)
applicant failed to meet all requirements of paragraph (F) of this rule, the
division shall notify the applicant in writing of all deficiencies contained
within the application.
(b)
Within ten business days of receipt of written
notification from the division, the applicant shall alleviate all deficiencies
outlined and submit any further documentation requested by the
division.
(c)
Should an applicant fail to cure all application
deficiencies, the application shall be deemed abandoned.
(3)
The
division shall establish a date and time by which all 10(B) initial
applications must be submitted. Any application submitted to the division after
the deadline shall be ineligible for licensure and returned to the applicant at
the mailing address outlined in the application.
(G) The 10(B) application drawing.
(1)
The division shall contract with a third-party operator
to randomly rank all 10(B) applications.
(2)
10(B) applicants
that choose to apply for a dual-use license shall have two times the number of
opportunities of selection in the drawing.
(3)
Drawing
process.
(a)
The
third-party operator shall randomly rank all 10(B) applicants, beginning with
one and continuing sequentially.
(b)
All 10(B)
applicants shall be ranked numerically in the order in which the application
was drawn by the third-party operator.
(c)
The third-party
operator shall not have access to any information, including the initial
applications, that would allow the operator to correlate a 10(B) applicant with
its randomly assigned rank.
(H) Facility site selection process.
(1)
After the drawing as outlined in paragraph (G) of this
rule, the division shall proceed with the facility site selection
process.
(2)
The site selection process shall occur in two
phases.
(I) Phase one facility site selection.
(1)
Applicants who
are eligible for phase one facility site selection process shall submit their
materials on a form prescribed by the division.
(2)
The division
shall establish a date and time by which all phase one facility site selection
applications must be submitted. Should an eligible 10(B) applicant fail to
comply with all requirements of this paragraph, or fail to submit an initial
facility site application that meets all required criteria by the deadline, the
division may modify the applicant's rank or move the applicant into the phase
two site selection process.
(3)
Throughout the
facility site selection process, the division shall establish one or more days
to publish to all applicants all phase one facility site business addresses
received and approved by the division up to the date of
publication.
(4)
A 10(B) applicant that is eligible for phase one
facility site selection may submit up to three facility sites per phase one
application that shall demonstrate the following for each facility site:
(a)
The business
address for the proposed facility;
(b)
The proposed
facility site will not be located within one mile of
(i)
An existing
licensed dispensary; or
(ii)
The proposed facility site of another phase one
applicant as published under paragraph (I)(3) of this rule.
(c)
The
proposed facility site is not located within five hundred feet of the end
boundaries of a parcel of real estate having situated on it a prohibited
facility as defined by division (A)(35) of section
3780.01 of the Revised
Code;
(d)
The proposed facility site is not subject to any local
ordinances or prohibitions from operation as outlined under section
3780.25 of the Revised
Code;
(e)
The proposed facility site meets all zoning or other
local requirements for operation of a dispensary at the proposed facility
site;
(f)
If more than one facility site was submitted, the
preferred order of selection; and
(g)
Any other
information required by the division.
(5)
In the event that
more than one 10(B) applicant submits the same facility site, the applicant
issued the lower rank pursuant to paragraph (G) of this rule, will be required
to select a different facility site and will be authorized to submit a
substitute location site application.
If an applicant is required to select a different facility
site and submitted more than one phase one facility site, the division will
immediately review that applicant's additional facility sites in the order the
applicant selected pursuant to paragraph (I)(4)(a) of this
rule.
(6)
In the event a 10(B) applicant submits a facility site
that is within one mile of another phase one facility site as published by the
division pursuant to paragraph (I)(3) of this rule, the 10(B) applicant issued
the lower rank pursuant paragraph (G) of this rule, will be required to select
a different facility site and will be authorized to submit a substitute
location site application.
If an
applicant is required to select a different facility site and submitted more
than one phase one facility site, the division will immediately review that
applicant's additional facility sites in the order the applicant selected
pursuant to paragraph (I)(5)(a) of this rule.
(J) Phase two site selection.
(1)
After the phase one site selection process, the
division will establish and publish regional districts for the phase two site
selection process.
(2)
Applicants who are eligible for the phase two site
selection process will submit their preferred regional districts on a form
prescribed by the division.
The division
shall establish a date and time by which all regional preference forms must be
submitted. Any phase two applicant who fails to submit a regional preference
form pursuant to this paragraph will have their preferences determined by the
division.
(3)
After receipt and review of the regional preference
forms, the division shall notify each phase two applicant of its assigned
regional district for its 10(B) license. The assigned regional district shall
be based upon the applicant's:
(a)
Regional preference form pursuant to paragraph (J)(2)
of this rule; and
(b)
Assigned pursuant to the drawing outlined under
paragraph (G) of this rule.
(4)
Upon receipt of
its regional district pursuant to paragraph (J)(3) of this rule, phase two
applicants may submit a phase two facility site location application on a form
prescribed by the division.
(5)
The facility site
location application for phase two site selection shall demonstrate the
following:
(a)
The business address for the proposed
facility;
(b)
The proposed facility site will not be located within
one mile of:
(i)
An existing licensed dispensary; or
(ii)
The proposed
facility site of another phase two applicant as published under paragraph
(J)(6) of this rule.
(c)
The proposed
facility site is not located within five hundred feet of the end boundaries of
a parcel of real estate having situated on it a prohibited facility as defined
by division (A)(35) of section
3780.01 of the Revised
Code;
(d)
The proposed facility site is located within the
regional district assigned to the 10(B) applicant pursuant to paragraph (J)(3)
of this rule.
(e)
The proposed facility site is not subject to any local
ordinances or prohibitions from operation as outlined under section
3780.25 of the Revised
Code;
(f)
The proposed facility site meets all zoning or other
local requirements for operation of a dispensary at the proposed facility site;
and
(g)
Any other information required by the
division.
(6)
Throughout the phase two facility site selection
process, the division shall establish one or more days to publish to all
applicants all phase one facility site business addresses received and approved
by the division up to the date of publication.
(7)
In the event that
more than one 10(B) applicant submits the same phase two facility site, the
10(B) applicant issued the lower rank pursuant to paragraph (G) of this rule,
will be required to select a different facility site and will be authorized to
submit a substitute facility site location application.
(8)
In the event a
10(B) applicant submits a facility site that is within one mile of another
phase two facility site as published by the division pursuant to paragraph
(J)(6) of this rule, the 10(B) applicant issued the lower rank pursuant
paragraph (G) of this rule, will be required to select a different facility
site and will be authorized to submit a substitute facility site location
application.
(K) Provisional licenses. After receiving a facility site location application from a 10(B) applicant and determining that the applicant has met all requirements for provisional licensure established in Chapter 3780. of the Revised Code and division 1301:18 of the Administrative Code, the division shall issue a provisional 10(B) license to the applicant for the facility site identified in the facility site location application.
(L) Change of location. The division may consider a request to change the location of a provisional 10(B) license due to circumstances outside the control of the applicant.
(1)
Circumstances
outside the control of the applicant include, but are not limited to:
(a)
Enactment of a
local moratorium as outlined under section
3780.25 of the Revised Code
subsequent to the facility site selection process;
(b)
Unilateral
revocation by a property owner for use of the licensed premises of the facility
site selected;
(c)
Establishment of a prohibited facility as defined by
division (A)(35) of section
3780.01 of the Revised Code
within five hundred feet of the proposed facility site subsequent to the
facility site selection process.
(2)
If the division
approves a relocation, the applicant must submit a new facility site for
approval that meets the criteria established in paragraph (I) or (J) of this
rule, as applicable.
(M) Certificate of operation. All 10(B) licenses must obtain a certificate of operation within twelve months of receipt of its provisional license.
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