Module 1: Introduction to Adult Use Program

Ohio voters approved Issue 2 in November 2023, creating Chapter 3780 which establishes the framework for adult use cannabis. This module covers the fundamental differences between medical and adult use programs.

Learning Objectives

  • Understand the structure of Ohio's adult use program
  • Identify key differences from medical program
  • Learn timeline for implementation
  • Recognize new compliance obligations

Program Overview

Chapter 3780 creates a regulated adult use cannabis market with significant differences from the medical program:

Aspect Medical (3796) Adult Use (3780)
Age Requirement 18+ with recommendation 21+ no recommendation needed
Purchase Limits 90-day supply 2.5 oz flower per day
Tax Rate 5.75% sales tax 10% excise + 5.75% sales
Registration Required (MMCP card) None required
Home Cultivation Prohibited 6 plants per adult

Key Provisions of 3780

Division of Cannabis Control

New unified regulatory body overseeing all cannabis operations

Social Equity

Mandated programs for communities impacted by prohibition

Local Control

Municipalities can prohibit or limit adult use operations

Tax Distribution

Revenue allocated to equity, education, and treatment

Implementation Timeline

December 7, 2023

Personal possession and cultivation legal

September 7, 2024

DCC begins accepting applications

Q4 2024

First adult use sales expected

2025

Full program implementation

⚠️ Critical Changes for Dispensaries

  • Must obtain dual-use license to serve adult use customers
  • Separate tracking required for medical vs adult use
  • Different tax collection procedures
  • Enhanced age verification protocols
  • New advertising restrictions

Regulatory Structure

The Division of Cannabis Control (DCC) consolidates oversight previously split between three agencies:

DCC Responsibilities

  • Licensing all cannabis businesses
  • Establishing and enforcing rules
  • Conducting inspections
  • Managing seed-to-sale tracking
  • Overseeing social equity programs
  • Collecting and distributing tax revenue

Module 2: Dual-Use Operations

Dual-use dispensaries can serve both medical patients and adult use customers. This module covers the operational requirements and best practices for managing both customer types.

Dual-Use License Requirements

Medical dispensaries seeking to serve adult use customers must:

  • Submit dual-use application to DCC
  • Pay additional licensing fees
  • Demonstrate separate inventory tracking
  • Update security and surveillance systems
  • Train staff on both programs
  • Implement dual POS capabilities
  • Establish separate record keeping

Operational Segregation

Physical Separation Options

Separate Facilities

Different locations for medical and adult use

  • Clearest compliance
  • Higher overhead
  • Duplicate staffing
Separate Areas

Divided spaces within same facility

  • Cost effective
  • Shared infrastructure
  • Clear boundaries required
Time Separation

Different hours for each program

  • Minimal physical changes
  • Complex scheduling
  • Limited hours

Inventory Management

Dual-use operations must maintain strict separation of inventory:

Requirement Medical Adult Use
METRC Tags Medical-designated tags Adult use-designated tags
Storage Separate vault/area Separate vault/area
Display Medical section Adult use section
Transfers Between programs prohibited Must be retagged if converting

Best Practices for Dual-Use

  • Color-code storage areas (e.g., green for medical, blue for adult use)
  • Use separate POS terminals or clearly marked modes
  • Train staff to ask "medical or adult use?" first
  • Implement daily inventory reconciliation
  • Conduct regular internal audits

Customer Experience Management

Recommended Customer Flow

  1. Entry: Age verification at door
  2. Check-in: Determine medical or adult use
  3. Waiting: Separate areas if possible
  4. Consultation: Program-specific information
  5. Purchase: Appropriate limits and taxes
  6. Exit: Receipt shows program type

Compliance Considerations

Key Compliance Points

  • Medical patients receive priority access
  • Cannot convert medical inventory to adult use without approval
  • Separate advertising for each program
  • Different purchase limits must be enforced
  • Tax collection varies by customer type

Module 3: Age Verification Requirements

Strict age verification is critical for adult use operations. This module covers the comprehensive requirements for verifying customer age and preventing underage access.

Age Requirements by Program

Medical Cannabis

  • 18+ with valid recommendation
  • Under 18 with caregiver
  • Must have MMCP registration

Adult Use

  • 21+ only
  • No exceptions for younger
  • Valid ID required

Acceptable Forms of ID

ID Type Acceptable Notes
Driver's License ✓ Must be valid, not expired
State ID Card ✓ From any US state
Passport ✓ US or foreign with photo
Military ID ✓ Active or retired
Temporary License ✓ With photo, not expired
Foreign Driver's License ✗ Not acceptable alone

Verification Process

Step-by-Step Verification

  1. Visual Inspection
    • Check expiration date
    • Verify photo matches person
    • Look for signs of tampering
  2. Electronic Scanning
    • Scan ID barcode/magnetic strip
    • Verify data matches visual
    • Check against fraud database
  3. Age Calculation
    • System calculates exact age
    • Flags if under 21
    • Records verification

⚠️ Red Flags for Fake IDs

  • Lamination peeling or bubbling
  • Font inconsistencies
  • Photo appears glued on
  • Missing security features
  • Information doesn't match when questioned
  • Nervous behavior when ID examined

Technology Requirements

ID Scanning Systems Must:

  • Capture and store ID data
  • Calculate age automatically
  • Flag expired IDs
  • Integrate with POS system
  • Maintain audit trail
  • Alert for underage attempts

Penalties for Violations

Violation First Offense Subsequent
Sale to minor $10,000 fine + suspension Revocation
Failure to check ID $5,000 fine $10,000 + suspension
Accepting fake ID $2,500 fine $5,000 fine

Age Verification Best Practices

  • Check ID for every customer, every time
  • Use both manual and electronic verification
  • Train staff on fake ID detection regularly
  • Post signs about ID requirements
  • Refuse service if any doubt about age
  • Document all refused sales

Module 4: Purchase Limits & Tracking

Adult use cannabis has different purchase limits than medical. This module covers the specific limits, tracking requirements, and compliance considerations for adult use sales.

Adult Use Purchase Limits

Daily Limits for Adults 21+

Product Type Daily Limit Notes
Flower 2.5 ounces Includes pre-rolls
Concentrates 15 grams Extract equivalency
Edibles No specific limit Based on THC content
Topicals No limit Non-intoxicating

Tracking Requirements

Adult Use vs Medical Tracking

  • No patient registry for adult use
  • ID scanning required for age verification
  • Daily limits tracked per individual
  • No 90-day supply calculation
  • Separate METRC tags for adult use inventory

Compliance Considerations

Preventing Limit Violations

  • POS must track daily purchases
  • Check for multiple visits same day
  • Cannot combine medical and adult use limits
  • Refuse sales that exceed limits
  • Document all limit-related refusals

⚠️ Common Violations

  • Selling over daily limits
  • Not tracking cumulative daily sales
  • Mixing medical and adult use purchases
  • Failure to check ID properly
  • Not maintaining purchase records

Record Keeping

Required Records for Adult Use

  • Customer ID verification logs
  • Daily sales summaries
  • Limit exceedance attempts
  • Security footage of all sales
  • METRC transaction records

Module 5: Tax Compliance

Adult use cannabis is subject to additional taxes beyond standard sales tax. This module covers tax calculation, collection, and remittance requirements.

Tax Structure

Adult Use Tax Components

Tax Type Rate Applies To
Excise Tax 10% All adult use sales
State Sales Tax 5.75% All sales
Local Sales Tax Varies Based on location
Total Tax 15.75%+ Combined rate

Tax Collection Process

Step-by-Step Collection

  1. Calculate product price
  2. Add 10% excise tax
  3. Add applicable sales tax
  4. Display total to customer
  5. Collect payment
  6. Record in POS system
  7. Issue detailed receipt

Tax Remittance

Filing Requirements

  • Excise Tax: Monthly to DCC
  • Sales Tax: Per normal schedule to ODT
  • Due Date: 23rd of following month
  • Late Penalties: 10% plus interest

Receipt Requirements

Must Show on Receipt

  • Subtotal before taxes
  • Excise tax amount
  • Sales tax amount
  • Total amount paid
  • License number
  • Transaction date/time

Tax Compliance Best Practices

  • Use automated tax calculation in POS
  • Reconcile daily tax collections
  • Set aside tax funds immediately
  • File returns on time even if no sales
  • Keep detailed tax records for 7 years

Module 6: Product Requirements

Adult use products have specific requirements for packaging, labeling, and potency. This module covers all product-related compliance requirements.

Packaging Requirements

Child-Resistant Packaging

  • Must meet ASTM D3475 standards
  • Opaque or translucent material
  • Resealable for multiple use products
  • No appeal to children
  • Tamper-evident features

Labeling Requirements

Mandatory Label Information

  • Universal cannabis symbol
  • "FOR ADULT USE" in bold
  • THC and CBD content per serving and package
  • List of all ingredients
  • Allergen warnings
  • Batch/lot number
  • Harvest/production date
  • Expiration date
  • Dispensary license number
  • Net weight or volume

Warning Statements

Required Warnings

  • "Keep out of reach of children and pets"
  • "For use only by adults 21 and older"
  • "Do not drive or operate machinery"
  • "May be habit forming"
  • "Not for pregnant or breastfeeding women"

Potency Limits

THC Limits by Product Type

Product Type Per Serving Per Package
Edibles 10mg THC 110mg THC
Beverages 10mg THC 50mg THC
Concentrates N/A 70% THC max

⚠️ Product Violations

  • Exceeding potency limits
  • Missing required warnings
  • Appealing to children
  • Health claims on labels
  • Non-compliant packaging

Module 7: Marketing Restrictions

Adult use cannabis marketing is heavily regulated to prevent youth exposure and false claims. This module covers advertising rules and compliant marketing strategies.

Advertising Prohibitions

Cannot Advertise

  • On TV, radio, or billboards
  • In locations where >30% audience is under 21
  • Within 1,000 feet of schools or playgrounds
  • Using false or misleading statements
  • Making health or therapeutic claims
  • Depicting consumption
  • Using cartoons or youth appeal

Permitted Marketing

Allowed Channels

  • Age-gated websites
  • Email to opted-in adults
  • Inside dispensary
  • Trade publications
  • Direct mail with age verification
  • Sponsorships (with restrictions)

Social Media Compliance

Signage Requirements

Exterior Signage

  • Business name only
  • No cannabis imagery
  • No products visible from outside
  • Professional appearance
  • Comply with local ordinances

Marketing Best Practices

  • Focus on education over promotion
  • Verify age for all marketing
  • Document compliance efforts
  • Review all content before posting
  • Monitor for unauthorized use of brand

Module 8: Social Equity Provisions

Ohio's adult use program includes social equity provisions to address the impacts of cannabis prohibition. This module covers requirements and opportunities.

Social Equity Goals

Program Objectives

  • Provide opportunities for impacted communities
  • Reduce barriers to entry
  • Support minority-owned businesses
  • Reinvest in affected areas
  • Expunge prior convictions

Qualifying for Social Equity

Eligibility Requirements

  • Prior cannabis conviction (applicant or family)
  • Residence in disproportionately impacted area
  • Income below area median
  • At least 51% ownership by qualified individuals

Social Equity Benefits

Available Support

Benefit Description
Fee Reduction 50% reduction in licensing fees
Technical Assistance Free compliance training and support
Priority Processing Expedited application review
Loan Programs Access to low-interest financing

Compliance Requirements

Ongoing Obligations

  • Maintain 51% qualifying ownership
  • Submit annual reports
  • Participate in mentorship programs
  • Hire from impacted communities
  • Report on community benefits

Supporting Social Equity

  • Partner with equity applicants
  • Provide mentorship opportunities
  • Source from equity businesses
  • Hire from affected communities
  • Support expungement efforts

Module 9: Local Control & Zoning

Municipalities have significant control over adult use cannabis operations. This module covers local regulations, zoning requirements, and community relations.

Municipal Authority

What Cities Can Do

  • Prohibit adult use dispensaries entirely
  • Limit number of dispensaries
  • Set operating hours
  • Impose additional zoning restrictions
  • Require local licenses
  • Levy additional taxes (up to 3%)

Zoning Requirements

Common Restrictions

Buffer Zone Distance
Schools (K-12) 1,000 feet minimum
Daycares 500-1,000 feet
Parks/Playgrounds 500-1,000 feet
Churches Varies by municipality
Other Dispensaries 500-1,500 feet

Local Licensing

Additional Requirements

  • Local operating permit
  • Conditional use permit
  • Public hearings
  • Community benefit agreements
  • Annual renewals

Community Relations

Best Practices

  • Attend city council meetings
  • Join business associations
  • Establish good neighbor policies
  • Address community concerns proactively
  • Support local causes
  • Maintain property aesthetics

⚠️ Local Compliance

  • State license doesn't override local bans
  • Must comply with all local ordinances
  • Local violations can affect state license
  • Monitor changing local regulations

Module 10: Operational Differences

Operating an adult use dispensary differs significantly from medical-only operations. This module covers key operational distinctions and requirements.

Customer Experience Differences

Medical vs Adult Use

Aspect Medical Adult Use
Entry Requirements MMCP card + ID Valid ID only
Consultation Medical focused General education
Product Selection Condition-based Preference-based
Atmosphere Clinical Retail

Staffing Considerations

Additional Training Topics

  • Recreational vs medical mindset
  • Responsible use education
  • Tourism and visitor handling
  • Impairment detection
  • Social consumption laws

Product Mix Strategy

Adult Use Preferences

  • Higher demand for convenience products
  • Interest in lower potency options
  • Preference for familiar formats
  • Price sensitivity higher
  • Brand awareness important

Security Enhancements

Additional Measures

  • Increased customer volume planning
  • Queue management systems
  • Enhanced ID verification
  • Crowd control procedures
  • Tourist safety protocols

Operational Excellence

  • Streamline checkout process
  • Implement appointment systems
  • Offer online ordering
  • Create education materials
  • Monitor wait times

Module 11: Compliance Monitoring

Adult use operations require enhanced compliance monitoring. This module covers monitoring systems, reporting requirements, and audit preparation.

Enhanced Monitoring Requirements

Key Monitoring Areas

  • Real-time sales tracking
  • Tax collection accuracy
  • Age verification compliance
  • Purchase limit enforcement
  • Inventory segregation
  • Marketing compliance

Reporting Obligations

Required Reports

Report Type Frequency Due Date
Sales Summary Monthly 10th of month
Tax Report Monthly 23rd of month
Compliance Audit Quarterly 30 days after
Social Equity Annual January 31

Internal Audit Program

Regular Audit Schedule

  • Daily: Cash reconciliation, limit compliance
  • Weekly: Inventory audit, tax review
  • Monthly: Full compliance check
  • Quarterly: Third-party audit

Technology Solutions

Compliance Software

  • Automated age verification systems
  • Real-time limit tracking
  • Tax calculation engines
  • Inventory management platforms
  • Compliance dashboards

⚠️ Red Flags

  • Unusual sales patterns
  • Inventory discrepancies
  • Tax collection gaps
  • Multiple limit violations
  • Customer complaints

Module 12: Transition Planning

Successfully transitioning to adult use operations requires careful planning. This final module provides a roadmap for implementation.

Pre-Launch Checklist

90 Days Before Launch

  • Submit dual-use application
  • Update security systems
  • Order adult use inventory
  • Develop training program
  • Create marketing materials

60 Days Before Launch

  • Train all staff
  • Test POS updates
  • Implement ID systems
  • Finalize tax procedures
  • Update signage

30 Days Before Launch

  • Conduct mock inspections
  • Test all systems
  • Soft launch preparation
  • Community outreach
  • Final compliance review

Launch Strategy

Phased Approach

  1. Soft Launch: Limited hours, appointment only
  2. Gradual Expansion: Extend hours, walk-ins
  3. Full Operations: All services available
  4. Optimization: Refine based on data

Success Metrics

Key Performance Indicators

  • Compliance violation rate
  • Customer wait times
  • Tax accuracy rate
  • Inventory accuracy
  • Customer satisfaction
  • Staff retention

Continuous Improvement

Ongoing Optimization

  • Regular customer feedback
  • Staff suggestions program
  • Compliance trend analysis
  • Technology updates
  • Best practice sharing

🎯 Keys to Success

Congratulations on completing the ORC 3780 course! Remember:

  • Compliance comes first, always
  • Invest in staff training
  • Build strong community relationships
  • Stay current with regulations
  • Focus on responsible sales
  • Celebrate milestones

Additional Resources

Legal Documents

Operational Tools

Training Materials