Module 1: Overview of Chapter 3796

Ohio Revised Code Chapter 3796 establishes the legal framework for Ohio's Medical Marijuana Control Program. This comprehensive statute governs all aspects of medical cannabis operations in the state.

Learning Objectives

  • Understand the structure and purpose of ORC 3796
  • Identify key regulatory bodies and their roles
  • Learn the scope of regulations covered
  • Recognize how 3796 interacts with other laws

Legislative Background

House Bill 523, enacted in 2016, created Ohio's Medical Marijuana Control Program. Chapter 3796 codifies the comprehensive regulatory framework governing:

Cultivation

Growing and harvesting cannabis plants

Processing

Manufacturing cannabis products

Testing

Laboratory analysis for safety and potency

Dispensing

Retail sale to qualified patients

Regulatory Structure

Three state agencies share oversight responsibilities:

Agency Responsibility Key Sections
Department of Commerce Cultivators, Processors, Testing Labs 3796.02-3796.04
State Board of Pharmacy Dispensaries, Patient Registry 3796.05-3796.08
State Medical Board Physician Recommendations 3796.09-3796.11

Key Definitions (3796.01)

Medical Marijuana
Marijuana used for medical purposes in accordance with this chapter
Dispensary
Entity licensed to dispense medical marijuana
Qualifying Medical Condition
Conditions approved by the State Medical Board
THC
Delta-9-tetrahydrocannabinol content

Chapter Structure

Major Sections for Dispensaries

  • 3796.06: Dispensary licensing requirements
  • 3796.07: Patient and caregiver registry
  • 3796.08: Dispensing limitations and procedures
  • 3796.14: Record keeping requirements
  • 3796.15: Security requirements
  • 3796.17: Advertising restrictions
  • 3796.18: Prohibited activities
  • 3796.22: Violations and penalties

Compliance Philosophy

Chapter 3796 emphasizes:

  • Patient Safety: Ensuring safe access to tested products
  • Preventing Diversion: Strict tracking and security measures
  • Professional Standards: Operating like a pharmacy
  • Community Protection: Limiting access to qualified patients only

⚠️ Critical Compliance Areas

Dispensaries must pay special attention to:

  • Daily purchase limits (3796.08)
  • Security camera requirements (3796.15)
  • Employee licensing (3796.03)
  • Advertising restrictions (3796.17)
  • Record retention (3796.14)

Module 2: Licensing Requirements

Section 3796.06 establishes comprehensive licensing requirements for dispensaries. Understanding these requirements is essential for initial licensing and ongoing compliance.

License Types and Limitations

Ohio strictly limits the number of dispensary licenses:

60

Maximum dispensary licenses statewide (initially)

31

Dispensary districts across Ohio

5

Maximum licenses per entity

Application Requirements

Essential Components

  • Business plan demonstrating viability
  • Security plan meeting state standards
  • Financial statements and funding proof
  • Local approval or zoning compliance
  • Operating procedures manual
  • Employee training program
  • Patient care protocols
  • Record keeping systems
  • Insurance documentation
  • Background checks for all owners

Ownership Requirements

Requirement Details
Financial Interest Disclosure All persons with ≥1% ownership must be disclosed
Background Checks BCI & FBI for all owners and key employees
Prohibited Persons No ownership by physicians recommending cannabis
Residency No specific Ohio residency requirement
Financial Capability Must demonstrate $250,000 liquid assets

License Renewal Process

Licenses must be renewed annually with the State Board of Pharmacy:

90 Days Before

Renewal notice sent by Board

60 Days Before

Submit renewal application

30 Days Before

Pay renewal fees

Expiration Date

Must cease operations if not renewed

⚠️ License Restrictions

  • Licenses are NOT transferable
  • Change in ownership requires Board approval
  • Cannot hold cultivation AND dispensary licenses
  • Must operate within 210 days of licensure

Maintaining Good Standing

Ongoing Requirements

  • Maintain all insurance coverages
  • Update ownership changes within 10 days
  • Report any criminal charges immediately
  • Keep all fees and taxes current
  • Comply with all inspection requests
  • Submit required reports timely

Module 3: Facility Requirements

Ohio imposes strict facility requirements to ensure dispensaries operate safely and professionally. These requirements cover everything from location to layout to environmental controls.

Location Requirements

Prohibited Locations (500 feet from):

  • Schools (K-12)
  • Churches
  • Public libraries
  • Public playgrounds
  • Public parks
  • Drug treatment facilities

Note: Some localities may have additional restrictions

Physical Layout Requirements

Dispensing Area

  • Professional pharmacy-like appearance
  • Consultation area for patient privacy
  • ADA compliant access
  • Adequate lighting (min 20 foot-candles)

Storage Area

  • Limited access (authorized personnel only)
  • Climate controlled
  • Locked vault or safe for products
  • Separate quarantine area

Security Room

  • Dedicated space for surveillance equipment
  • Restricted access
  • UPS backup power
  • Environmental controls

Environmental Controls

Parameter Requirement Monitoring
Temperature 60-70°F for storage Continuous logging required
Humidity 30-50% RH Daily recording
Lighting Adequate for cameras Regular inspection
Ventilation Prevent odor escape HVAC maintenance logs

Signage Requirements

Exterior Signage

  • Business name only (no cannabis imagery)
  • No products visible from exterior
  • Professional appearance
  • Compliant with local ordinances

Required Interior Signage

  • "For Use By Qualifying Patients Only"
  • "No One Under 18 Allowed" (unless patient)
  • Camera surveillance notice
  • License display
  • Patient rights poster

Facility Modifications

Any significant changes to the facility require Board approval:

  • Expansion or reduction of dispensing area
  • Changes to security layout
  • Relocation of vault/safe
  • Modifications affecting camera coverage

Maintenance Requirements

Regular Maintenance Tasks

  • Daily cleaning and sanitization
  • Weekly security system tests
  • Monthly HVAC filter changes
  • Quarterly pest control service
  • Annual fire system inspection
  • Biannual security audit

Module 4: Security Standards

Ohio mandates comprehensive security measures to prevent diversion and ensure public safety. This module covers all security requirements under Chapter 3796.

Video Surveillance Requirements

Camera Coverage Areas

  • All entrances and exits
  • Sales floor and point-of-sale areas
  • Storage rooms and vaults
  • Areas where cannabis is handled
  • Parking areas and perimeter
  • Loading/unloading zones

Technical Specifications

  • Minimum 720p resolution
  • 24/7 continuous recording
  • 30-day minimum retention
  • Date/time stamp on all footage
  • Battery backup for power outages
  • Remote access capability

Physical Security

Required Security Features

Feature Requirement
Alarm System Commercial grade, motion detection, silent alarm
Locks Commercial grade on all entrances
Safe/Vault For overnight storage of products
Lighting Adequate exterior lighting, motion activated
Panic Buttons Multiple locations, direct police connection

Access Control

Restricted Access Procedures

  • Limited access areas clearly marked
  • Employee badges required
  • Visitor log and escort requirements
  • Key card or biometric systems recommended
  • Regular access audit reviews

⚠️ Security Violations

Common violations that result in penalties:

  • Cameras not recording or poor quality
  • Failure to retain footage for 30 days
  • Unsecured storage areas
  • Allowing unauthorized access
  • Failure to report security breaches

Module 5: Employee Requirements

All dispensary employees must meet specific requirements and maintain compliance with state regulations. This module covers licensing, training, and conduct standards.

Employee Licensing

Key Employee License

Required for owners, officers, and board members:

  • FBI and BCI background checks
  • Financial disclosure
  • No disqualifying offenses
  • Ohio residency not required

Support Employee License

Required for all other employees:

  • BCI background check
  • Must be 21 or older
  • No drug-related felonies
  • Annual renewal required

Prohibited Persons

Cannot Work in Dispensaries

  • Physicians who recommend cannabis
  • Law enforcement officers
  • Individuals with certain criminal convictions
  • Anyone under 21 years of age

Training Requirements

Mandatory Training Topics

  • Ohio cannabis laws and regulations
  • Patient verification procedures
  • METRC and OARRS systems
  • Security protocols
  • Product knowledge
  • Customer service standards
  • Emergency procedures
  • Responsible dispensing practices

Employee Conduct

Professional Standards

  • No consumption of cannabis on premises
  • No impairment while working
  • Professional appearance required
  • Confidentiality of patient information
  • No gifts or gratuities from patients

Employee Best Practices

  • Maintain detailed training records
  • Conduct regular performance reviews
  • Update employee handbooks annually
  • Implement progressive discipline policies
  • Document all incidents thoroughly

Module 6: Inventory Management

Accurate inventory management is essential for compliance with Chapter 3796. This module covers state requirements for tracking, storage, and inventory control.

Inventory Tracking Requirements

State Mandates

  • All inventory must be in METRC
  • Daily reconciliation required
  • Package tags on all products
  • Real-time updates for all transactions
  • Quarterly physical inventory audits

Storage Requirements

Product Storage Standards

Storage Area Requirements
Display Area Limited quantities, locked cases for high-value items
Back Stock Limited access room, organized by category
Vault/Safe All products secured nightly, cash storage
Quarantine Separate area for recalled/damaged products

Inventory Limits

Maximum On-Site Inventory

While Ohio doesn't set specific limits, consider:

  • Insurance coverage limits
  • Security capabilities
  • Storage capacity
  • Cash on hand limits
  • Local ordinances

Loss Prevention

Strategies to Prevent Loss

  • Limit employee access to inventory
  • Dual control for high-value products
  • Regular cycle counts
  • Investigation procedures for discrepancies
  • Clear policies on employee purchases

⚠️ Inventory Compliance Issues

  • Untagged products in inventory
  • METRC not matching physical count
  • Failure to report theft/loss
  • Commingling medical and adult use inventory
  • Expired products not properly disposed

Module 7: Patient Interactions

Professional and compliant patient interactions are fundamental to dispensary operations. This module covers patient rights, consultation requirements, and service standards.

Patient Rights

Protected Rights Under 3796

  • Privacy and confidentiality
  • Access to product information
  • Consultation with knowledgeable staff
  • Safe and professional environment
  • Non-discrimination
  • Complaint procedures

Consultation Requirements

Required Consultation Elements

  • Review of patient's condition (if disclosed)
  • Discussion of product options
  • Dosing guidance
  • Potential effects and onset times
  • Storage and safety information
  • Drug interaction warnings

Patient Privacy

HIPAA Considerations

While dispensaries aren't covered entities, best practices include:

  • Private consultation areas
  • Secure storage of patient records
  • Limited access to patient information
  • No discussion of patient conditions in public
  • Encrypted electronic communications

Special Populations

Additional Considerations

Population Special Requirements
Minors (with caregiver) Caregiver must be present, private area recommended
Elderly patients Extra time for consultation, clear labeling
Veterans Discount verification, trauma-informed care
Indigent patients Discount programs, payment options

Patient Service Excellence

  • Train staff in compassionate care
  • Maintain professional boundaries
  • Provide educational materials
  • Follow up on patient concerns
  • Create welcoming environment

Module 8: Record Keeping

Chapter 3796 requires extensive record keeping for all aspects of dispensary operations. This module covers what records to keep, how long to keep them, and best practices for organization.

Required Records

Business Records (5 years minimum)

  • Financial statements and tax returns
  • Banking records and cash logs
  • Vendor agreements and invoices
  • Employee records and timesheets
  • Insurance policies

Compliance Records (5 years minimum)

  • METRC reports and manifests
  • Lab test results
  • Inventory audits
  • Security footage (30 days minimum)
  • Inspection reports
  • Incident reports

Patient Records (5 years minimum)

  • Transaction receipts
  • ID verification logs
  • Patient agreements
  • Consultation notes

Electronic vs. Paper Records

Type Advantages Requirements
Electronic Searchable, space-saving, backup capable Secure storage, regular backups, access controls
Paper No technical issues, original signatures Fireproof storage, organized filing, secure location

Inspection Readiness

Records Organization for Inspections

  • Create inspection binder with key documents
  • Maintain current licenses and permits
  • Organize records by category and date
  • Ensure quick access to 30 days of records
  • Designate records custodian

⚠️ Record Keeping Violations

  • Missing or incomplete records
  • Failure to retain for required period
  • Altered or falsified documents
  • Inaccessible during inspection
  • No backup of critical records

Best Practices

Document Management System

  • Implement consistent naming conventions
  • Regular backup schedule (daily recommended)
  • Off-site backup storage
  • Annual records review and purge
  • Clear retention policy

Module 9: Advertising Restrictions

Ohio imposes strict limitations on cannabis advertising to prevent youth exposure and misleading claims. This module covers compliant marketing practices.

Prohibited Advertising

Cannot Advertise

  • On radio or television
  • In print media with >30% youth readership
  • On billboards or public transit
  • Within 500 feet of schools
  • Using cartoons or youth-appealing imagery
  • False or misleading statements
  • Health claims without FDA approval

Permitted Marketing

Allowed with Restrictions

  • Dispensary website (with age gate)
  • Direct mail to registered patients
  • Inside dispensary materials
  • Medical journals
  • Business-to-business communications
  • Sponsorships (with approval)

Required Disclaimers

All Advertising Must Include

  • "For use only by medical marijuana patients"
  • "Keep out of reach of children"
  • License number of dispensary
  • Age restriction notice

Social Media Guidelines

⚠️ Advertising Violations

Common violations resulting in fines:

  • Unapproved health claims
  • Youth-targeted content
  • Missing disclaimers
  • Promotion of overconsumption
  • Comparative claims about competitors

Module 10: Prohibited Activities

Chapter 3796 explicitly prohibits certain activities to maintain the integrity of Ohio's medical cannabis program. This module covers what dispensaries cannot do.

Prohibited Sales Activities

Cannot Sell or Provide

  • To anyone without valid MMCP registration
  • More than daily purchase limits
  • Products not tested and approved
  • Cannabis for on-site consumption
  • Products manufactured on-site
  • Non-cannabis products (with limited exceptions)

Operational Prohibitions

Dispensaries Cannot

  • Operate outside approved hours
  • Allow minors without caregivers
  • Cultivate or process cannabis
  • Share patient information (except as required)
  • Provide medical advice
  • Allow consumption on premises

Financial Prohibitions

Cannot Engage In

  • Kickbacks to physicians
  • Free samples to patients
  • Loyalty programs with free product
  • Credit sales (cash only)
  • Investment from prohibited persons

Relationship Restrictions

Prohibited Relationships

Cannot Have Reason
Financial interest in testing lab Conflict of interest
Ownership by recommending physician Patient protection
Unlicensed investors Background check requirement

⚠️ Severe Penalties

Prohibited activities can result in:

  • Immediate license suspension
  • Criminal charges
  • Permanent revocation
  • Personal liability for owners
  • Federal prosecution risk

Module 11: Inspection Procedures

Regular inspections ensure compliance with Chapter 3796. This module prepares you for successful inspections and ongoing compliance monitoring.

Types of Inspections

Inspection Categories

  • Routine: Scheduled annual inspections
  • Compliance: Follow-up on violations
  • Complaint-Based: Response to reports
  • Random: Unannounced spot checks
  • Pre-Opening: Before initial operation

Inspector Authority

Inspectors May

  • Enter facility during business hours
  • Review all records
  • Take photographs
  • Interview employees
  • Test products
  • Review security footage
  • Issue citations

Inspection Checklist

Common Inspection Points

Area Items Reviewed
Security Cameras, alarms, locks, footage retention
Inventory METRC accuracy, physical count, storage
Records Sales, manifests, employee files, training
Facility Cleanliness, organization, restricted areas
Operations Sales process, ID checking, consultation

Preparing for Inspection

Best Practices

  • Conduct monthly self-inspections
  • Maintain inspection readiness daily
  • Designate inspection liaison
  • Keep records organized and accessible
  • Train all staff on inspection procedures
  • Address issues immediately

During the Inspection

  • Be cooperative and professional
  • Provide requested documents promptly
  • Answer questions honestly
  • Take notes of inspector comments
  • Ask for clarification if needed
  • Don't volunteer unnecessary information

Module 12: Violations & Penalties

Understanding potential violations and their consequences helps prevent compliance issues. This module covers enforcement actions and penalty structures.

Violation Categories

Minor Violations

  • Incomplete records
  • Minor labeling errors
  • Procedural mistakes
  • First-time infractions

Major Violations

  • Sales to unauthorized persons
  • Security breaches
  • Inventory diversion
  • Operating outside scope

Critical Violations

  • Falsifying records
  • Criminal activity
  • Repeated major violations
  • Imminent public safety risk

Penalty Structure

Violation Level First Offense Subsequent
Minor Warning - $500 $1,000 - $5,000
Major $5,000 - $25,000 $25,000 - $50,000 + suspension
Critical Suspension/Revocation Permanent revocation

Enforcement Process

Typical Progression

  1. Notice of violation issued
  2. Response period (usually 30 days)
  3. Hearing if requested
  4. Final order issued
  5. Appeal rights (if applicable)
  6. Compliance monitoring

Mitigation Strategies

Reducing Penalties

  • Immediate corrective action
  • Cooperation with investigators
  • Strong compliance history
  • Voluntary disclosure
  • Comprehensive remediation plan

⚠️ Avoiding Violations

  • Regular compliance audits
  • Ongoing staff training
  • Clear policies and procedures
  • Documentation of all activities
  • Prompt correction of issues

Module 13: Administrative Rules

Ohio Administrative Code (OAC) Chapter 3796 provides detailed rules implementing the statutory requirements. This module covers key administrative rules affecting dispensaries.

Key Administrative Rules

OAC 3796:6 Series (Dispensaries)

  • 3796:6-2: Licensing procedures
  • 3796:6-3: Operational requirements
  • 3796:6-4: Security and surveillance
  • 3796:6-5: Inventory tracking
  • 3796:6-6: Patient care standards

Rule Updates Process

How Rules Change

  1. Board proposes rule change
  2. Public comment period
  3. Stakeholder input
  4. Final rule adoption
  5. Effective date (usually 30 days)

Staying Current

Resources for Updates

  • Board of Pharmacy website
  • Email notifications
  • Industry associations
  • Legal counsel
  • Compliance consultants

Interpretive Guidance

When Rules Are Unclear

  • Request written clarification
  • Review enforcement history
  • Consult legal counsel
  • Document interpretation basis
  • Monitor for updates

Rule Compliance Tips

  • Subscribe to regulatory updates
  • Attend Board meetings when possible
  • Participate in rule-making process
  • Update SOPs when rules change
  • Train staff on new requirements

Module 14: Recent Updates

Ohio's cannabis regulations continue to evolve. This module covers recent changes and anticipated updates to help you stay ahead of compliance requirements.

2024 Regulatory Changes

Key Updates

  • Adult use program implementation
  • Dual-use licensing requirements
  • Updated security standards
  • Electronic verification systems
  • Expanded qualifying conditions
  • Home delivery regulations

Transition to DCC

Division of Cannabis Control

The new unified regulatory structure brings changes:

  • Single licensing authority
  • Streamlined inspections
  • Updated fee structures
  • New reporting requirements
  • Consolidated enforcement

Technology Updates

System Improvements

  • METRC interface updates
  • Enhanced OARRS integration
  • Electronic manifests
  • Real-time compliance monitoring
  • Mobile inspection tools

Future Considerations

Anticipated Changes

  • Interstate commerce possibilities
  • Social equity programs
  • Consumption lounge regulations
  • Banking reform impacts
  • Federal policy shifts

🎯 Staying Compliant

Success in Ohio's evolving cannabis market requires:

  • Continuous learning and adaptation
  • Strong compliance foundation
  • Proactive approach to changes
  • Investment in systems and training
  • Commitment to best practices

Course Completion

Congratulations on completing the Ohio Revised Code Chapter 3796 course! You now have comprehensive knowledge of Ohio's medical marijuana regulations. Remember to:

  • Apply this knowledge daily
  • Stay updated on changes
  • Share knowledge with colleagues
  • Maintain compliance excellence

Additional Resources

Legal References

Compliance Tools

Regulatory Contacts