Ohio Administrative Code Title 3796:3 - Processors
Ohio Administrative Code
Title 3796:3 — Processors
1. Overview and Purpose
OAC Title 3796:3 regulates the processing of medical marijuana in the State of Ohio. The rules set forth requirements for individuals and businesses that wish to become licensed medical marijuana processors, outlining operational standards, licensing criteria, security, quality control, and compliance with state law.
This title is part of Ohio’s broader regulatory framework under the Ohio Medical Marijuana Control Program, established by Ohio Revised Code Chapter 3796, aiming to ensure safe, effective, and legal production and processing of medical cannabis products.
2. Definitions
Processor: An entity licensed to transform raw medical marijuana into consumable products such as oils, tinctures, edibles, topicals, or other forms authorized under Ohio law.
Licensee: An approved entity holding a processor license.
Medical Marijuana: Cannabis products used for medical purposes pursuant to Ohio law.
3. Licensing Requirements
3.1 Application and Approval
Applicants must submit a detailed application including:
Business ownership and control disclosures.
Security and operational plans.
Quality control and product safety procedures.
Background checks for principals and key employees.
The State Medical Marijuana Control Program reviews applications and grants licenses to those meeting all statutory and administrative requirements.
3.2 License Types
Processing licenses are specific and do not authorize cultivation or dispensary operations.
Licenses must be renewed periodically, subject to compliance.
4. Operational Standards
4.1 Facility Requirements
Processors must maintain secure premises to prevent unauthorized access.
Facilities must meet safety and sanitation standards consistent with food and pharmaceutical manufacturing.
Recordkeeping of all medical marijuana products from receipt through processing, packaging, and distribution is mandatory.
4.2 Security Measures
Surveillance systems, access controls, and inventory tracking must be implemented.
Transportation of processed products must follow secure protocols.
4.3 Quality Control
Processors must test products for potency, contaminants (e.g., pesticides, heavy metals), and microbiological safety.
Products must be accurately labeled with ingredient, dosage, and warning information.
4.4 Compliance and Reporting
Licensees must submit regular reports to the State Program documenting inventory, product destruction, and compliance issues.
Any adverse events or product recalls must be reported promptly.
5. Enforcement and Penalties
The State Program may inspect processing facilities without prior notice.
Violations of rules can lead to:
License suspension or revocation.
Civil fines.
Referral for criminal prosecution in cases of fraud or unlawful distribution.
Processors may appeal adverse actions through administrative hearings.
6. Relevant Legal Principles and Case Law
While specific Ohio case law on Title 3796:3 processors is emerging, key legal principles from administrative and regulatory law apply:
Case Principle 1: Regulatory Authority
Courts uphold the State Medical Marijuana Control Program’s authority to license and regulate processors under statutory mandates.
Licenses may be conditioned on strict compliance with safety and security standards.
Case Principle 2: Due Process in Licensing Actions
Licensees are entitled to notice and opportunity to respond before adverse license actions.
Courts have overturned agency decisions when procedural safeguards were not observed.
Case Principle 3: Public Safety and Health Priority
Regulatory agencies are granted wide discretion to enforce standards protecting public health.
Challenges to enforcement must show agency actions are arbitrary, capricious, or exceed authority.
Illustrative Case: Medical Marijuana Processor v. Ohio State Program (Hypothetical)
A licensed processor challenged a license suspension based on alleged security violations.
The court upheld the suspension, citing clear evidence of failure to meet regulatory standards and due process.
7. Practical Implications
Businesses seeking processor licenses must develop robust security, quality control, and recordkeeping systems.
Compliance with testing and labeling standards is critical to market products legally.
Licensees should prepare for routine inspections and maintain documentation.
Understanding and exercising due process rights in administrative enforcement is essential.
8. Summary
| Aspect | Details |
|---|---|
| Regulatory Authority | Ohio Medical Marijuana Control Program |
| License Type | Medical marijuana processor license |
| Application Criteria | Ownership disclosures, security plans, background checks |
| Operational Standards | Facility security, quality control, labeling, recordkeeping |
| Enforcement | Inspections, penalties, license revocation |
| Legal Protections | Due process in licensing and enforcement actions |
| Public Health Focus | Product safety, contamination testing, consumer protection |
9. Conclusion
OAC Title 3796:3 provides a detailed regulatory framework to ensure that medical marijuana processors operate safely, securely, and transparently in Ohio. The licensing requirements, operational standards, and enforcement mechanisms protect patients and the public while facilitating a regulated medical cannabis industry. Courts recognize the State Program’s authority to enforce these rules, provided procedural fairness is maintained.
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