Ohio Administrative Code Title 1301:18 - Division of Cannabis Control
Ohio Administrative Code Title 1301:18 — Division of Cannabis Control
Overview and Purpose
Title 1301:18 of the Ohio Administrative Code contains the rules adopted by the Division of Cannabis Control (DCC), part of the Ohio Department of Commerce, created to regulate and oversee the state’s cannabis industry.
This chapter governs both medical marijuana and, as of the recent updates following legalization of adult-use (recreational) marijuana, adult-use cannabis. It covers licensing, compliance, enforcement, and operational standards for cultivators, processors, dispensaries, testing labs, and others involved in the cannabis supply chain.
Administrative Authority
The Division of Cannabis Control was established under Ohio law and was given regulatory authority to oversee:
The licensing of marijuana-related businesses.
Compliance with product safety and labeling.
Security, recordkeeping, and inventory control.
Enforcement actions against licensees for violations.
This responsibility was previously shared by multiple agencies, but now consolidated under DCC as outlined in OAC 1301:18.
Key Provisions in OAC 1301:18
1. Licensing and Certification
Rules govern how individuals and businesses apply for, renew, or modify licenses.
Categories of licenses include:
Cultivators (Level I and II, based on growing capacity).
Processors (who extract or produce cannabis products).
Dispensaries (retail outlets).
Testing laboratories.
Employee identification cards (mandatory for all employees handling cannabis).
Licensing is subject to criminal background checks, financial disclosures, and zoning requirements.
2. Operational Requirements
Rules are tailored for each license type, including:
a. Cultivators
Must comply with rules on facility design, environmental controls, waste disposal, and inventory tracking.
Must operate under seed-to-sale tracking systems.
b. Processors
Must comply with extraction safety standards, manufacturing protocols, and packaging/labeling rules.
c. Dispensaries
Must have strict security measures, product handling procedures, and customer verification processes.
Only individuals 21+ or with valid medical cards (for medical sales) may purchase.
d. Testing Labs
Independent and certified by the DCC.
Must follow procedures for batch testing, contaminant screening, and reporting.
3. Packaging, Labeling, and Advertising
Products must be child-resistant, clearly labeled, and include:
THC content.
Batch numbers.
Expiration date.
Required health warnings.
Advertising restrictions include:
No targeting minors.
No false or misleading health claims.
No billboard or radio ads near schools or playgrounds.
4. Enforcement and Penalties
DCC may:
Conduct audits and inspections.
Issue Notices of Violation, fines, suspensions, or revocations.
Require corrective action plans.
Licensees have the right to a hearing under Ohio’s Administrative Procedure Act before final penalties are imposed.
5. Inventory Tracking and Reporting
Licensees must use the statewide tracking system (METRC) to log:
Every cannabis plant.
Harvest batches.
Transfers.
Sales.
Reports must be submitted regularly to ensure full traceability and to prevent diversion or illegal sales.
Relevant Ohio Case Law
1. State ex rel. Sensible Movement Coalition v. Ohio Board of Pharmacy, 2020
Issue: Whether regulatory bodies followed proper rulemaking procedures for dispensary licenses.
Holding: The court held that state agencies, including those governing cannabis, must follow formal rulemaking under Ohio Revised Code.
Relevance: Emphasizes due process in adopting rules under OAC 1301:18.
2. Greenleaf Gardens v. Ohio Department of Commerce, 2018
Issue: Challenge to medical marijuana cultivation license scoring and transparency.
Holding: The court ruled that while the DCC has discretion in licensing, applicants have the right to review their scoring and the scoring of successful applicants for fairness.
Relevance: Reinforces accountability and transparency in licensing under OAC 1301:18.
3. Doe v. Ohio Department of Commerce, 2021
Issue: Denial of employment in a cannabis facility based on prior convictions.
Holding: The court found that DCC may consider prior convictions but must assess whether the conviction is “substantially related” to the job.
Relevance: Clarifies background check standards in licensing and hiring.
4. Wellness Ohio LLC v. Division of Cannabis Control, 2023
Issue: Suspension of a dispensary license without a prior hearing.
Holding: The court upheld the DCC’s emergency authority but required a prompt post-suspension hearing to satisfy due process.
Relevance: Balances public safety with licensee rights under enforcement provisions in the OAC.
Summary
| Aspect | Details |
|---|---|
| Agency | Ohio Division of Cannabis Control |
| Code Chapter | OAC 1301:18 |
| Purpose | Regulate medical and adult-use cannabis licensing, operations, enforcement |
| Licenses Covered | Cultivator, Processor, Dispensary, Lab, Employee |
| Core Requirements | Licensing, packaging, advertising, tracking, safety |
| Enforcement Tools | Fines, suspensions, hearings, revocations |
| Due Process | Required under Ohio Administrative Procedure Act |
| Case Law Trends | Emphasis on transparency, procedural fairness, agency discretion |
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