The Division of Cannabis Control (“DCC” or “the Division”) is submitting the following proposed rules to the Common Sense Initiative and seeking public comment by Wednesday, April 17, 2024.

The Division is proposing several new rules pursuant to O.R.C. 3780; however, they will replace other rules currently in effect under O.R.C. 3796, which were specific to the regulation of the Medical Marijuana Control Program. The new rules apply to both medical and non-medical cannabis.

OAC 1301:18-1-01 DEFINITIONS (Amended)

• The Division is adding definitions related to the rules in this package for church, control, facility visitor, financial interest, ownership, person, prohibited facility, public library, public park, public playground, and school.

OAC 1301:18-3-01 CANNABIS ENTITY DISTANCE FROM PROHIBITED FACILITIES (New)

• Cannabis facilities must be at least 500 feet away from a prohibited facility, pursuant to O.R.C. 3796 and 3780. The distance is measured linearly and the measurement shall occur at the shortest distance between the property line of the prohibited facility and the physical structure under the control of the cannabis facility.

OAC 1301:18-3-03 OWNERSHIP, FINANCIAL INTEREST, CONTROL (New)

• This rule provides that no person may own, control, or have financial interest in more than one cultivator, more than one processor, more than one testing lab, or more than eight dispensaries.

OAC 1301:18-3-04 DISCLOSURE OF OWNERSHIP, FINANCIAL INTEREST, CONTROL (New)

• Prior to the issuance of a provisional license and the issuance or renewal of a certificate of operation, each applicant or licensee must submit records to the Division regarding their ownership, control, and financial interest.

OAC 1301:18-3-05 NOTICE OF INTENT (New)

• This rule requires a licensee to notify the Division prior to entering into any agreement that would make certain modifications that must be reported to the Division.

OAC 1301:18-3-06 CHANGE OF OWNERSHIP (New)

• A licensee must obtain prior approval from the Division before modifying its ownership, provided modifications involving less than ten per cent of the ownership in a licensee do not require prior approval.

OAC 1301:18-3-07 CHANGE OF ENTITY NAME OR REGISTERED TRADE NAME (New)

• A licensee must obtain prior approval from the Division before modifying its entity name or registered trade name.

OAC 1301:18-3-08 FINANCIAL RESPONSIBILITY (New)

• The rule establishes the evidence of financial responsibility required by the Division. This is initially a bond or escrow in the amount of $750,000 for level I cultivators, $75,000 for level II cultivators, $250,000 for processors, testing laboratories $75,000, and dispensaries $50,000. Licensees may request to reduce their bond or escrow in increments over a few years of the rule requirements to do so are met and may ultimately be able to cancel the bond or escrow account.

OAC 1301:18-3-15 FACILITY VISITORS (New)

• This rule requires that visitors to a facility who are going to access areas other than the public retail floor be signed in on a visitor log and escorted in those non-public areas by an employee.

OAC 1301:18-3-16 WASTE DISPOSAL (New)

• This rule sets out the requirements of disposing cannabis waste, including that it be rendered unusable, as well as how it must be tracked in the state’s seed-to-sale tracking system.

OAC 1301:18-7-01 DISPENSARY CERTIFICATE OF OPERATION (New)

• This rule lays out the permissible activities of a dispensary with a certificate of operation.

OAC 1301:18-7-02 OPERATING PROCEDURES AND QUALITY ASSURANCE (New)

• Dispensaries are required to establish, maintain, and comply with written policies and procedures for the daily operation and distribution of cannabis. Any major modifications must be submitted to the Division for review and approval. Dispensaries must establish areas in the facility that are compartmentalized based upon function, which at a minimum include the designated retail space and the secure limited access area. The rule also establishes permissible hours of operation, points of sale requirements, and standards for drive-through windows and curbside pick-up.

OAC 1301:18-7-03 DISPENSARY DESIGNTED RESPONSIBLE PARTY (New)

• Dispensaries must designate between 1-3 responsible parties. At least one of the designated responsible parties must be on the premises at least 20 hours per week.

OAC 1301:18-7-05 MINIMUM SECURITY AND SURVEILLANCE REQUIREMENTS (New)

• Each dispensary must establish, maintain, and comply with written policies and procedures that ensure adequate security, surveillance, and control of the licensed premises that prevent diversion, theft, or loss and meet the minimum requirements outlined under this rule.

The Division is also proposing to rescind several of the current medical marijuana rules under Chapter 3796 which the new rules under Chapter 1301 in this package will replace. Those include 3796 rules regarding waste disposal, financial responsibility, dispensary designated representatives, dispensary surveillance, and dispensary change of ownership.

The Division will review and consider the comments received prior to submitting the proposed rules to the Joint Committee on Agency Rule Review in accordance with Chapter 119 of the Ohio Revised Code.