Ohio’s Division of Cannabis Control (DCC), established under Issue 2 of the November 7, 2023 ballot, within the Department of Commerce, is the primary licensee and regulator overseeing the cannabis supply chain—including cultivators, processors, laboratories, and dispensaries—for both medical and recreational adult‑use markets.

Licensing and Licensing Categories

Distributors in Ohio must coordinate licensing through the DCC. Existing medical dispensaries transitioned to a dual‑license model, permitting the sale of recreational (adult‑use) cannabis to adults age 21+ on August 6, 2024. Distributors must hold valid licenses for handling and selling both medical and adult‑use products.

Product Limits, THC Caps, and Quality Assurance

Under state law, medical cannabis plant material cannot exceed 35% THC, and concentrated extracts must not exceed 70% THC. Distributors must procure products from licensed cultivators or processors and ensure quality compliance by verifying THC limits, packaging, and labeling standards prior to distribution. Deliveries must be accompanied by child‑resistant, tamper‑evident, light‑resistant packaging approved by the Department.

Inventory Tracking: METRC

All cannabis inventory must be tracked using Ohio’s METRC system—an RFID‑based state‑wide traceability program. Distributors and dispensaries must upload detailed electronic records of product receipt, internal transfers, sales, and disposal. This real‑time inventory tracking prevents diversion and ensures product traceability.

Packaging and Labeling

Processor and distributor compliance extends beyond THC limits; products must be packaged according to child‑resistant, tamper‑evident, and light‑protective requirements approved by regulators. Labeling must include potency, batch/lot numbers, expiration dates, and legally mandated warnings.

Security and Surveillance Obligations

Distributors must comply with strict security protocols under Chapter 3796:6‑3. This includes:

• Secure storage in approved vaults or safes within restricted access areas
• 24/7 surveillance of delivery, storage, and sales zones, with video footage stored or live‑streamed, and motion detection systems with minimum six‑second delay
• Physical barriers and locks separating public and restricted zones, and alarm systems monitored separately by dispensary key employees.
  Authorized personnel must wear visible credentials, and only authorized staff can handle cannabis inventory.

Operating Hours, Staffing, and Engagement Requirements

Distributors (and co‑located dispensaries) must maintain at least 35 open hours per week and operate between 7 a.m. and 9 p.m. Transactions must be face‑to‑face; direct delivery services are not allowed. At least two employees must be on site during business hours; one must be a licensed key employee with alarm system access privileges.

Compliance and Reporting

Distributors are mandated to develop and maintain written Standard Operating Procedures (SOPs) covering receipt, storage, packaging, labeling, handling, tracking, dispensing, and destruction of cannabis products. They must also ensure staff training with documented attendance, and promptly report and respond to unauthorized access or security breaches. Non-compliance can result in suspension or revocation of licenses.

Summary

To operate legally, cannabis distribution entities in Ohio must hold proper dual licenses, comply with THC potency limits, package and label products correctly, implement METRC tracking, enforce robust security and surveillance infrastructure, adhere to specified operating hours and staffing, maintain comprehensive SOPs and staff training, and implement immediate reporting protocols for breaches or irregularities. These measures ensure conformity with Ohio’s regulatory standards set to manage cannabis responsibly across both medical and adult-use markets.