Ohio Administrative Code Title 3796:6 - Dispensaries
Overview of Ohio Administrative Code Title 3796:6 — Dispensaries
Title 3796:6 sets forth the rules and requirements governing the licensing, operation, security, and compliance of medical marijuana dispensaries under the Ohio Medical Marijuana Control Program. The Ohio Board of Pharmacy oversees these rules to ensure dispensaries provide safe and legal access to medical marijuana for qualified patients.
Key Areas Covered by Title 3796:6
1. Licensing and Application Process
Establishes criteria and procedures for applying for and renewing a dispensary license.
Requires detailed background checks, financial disclosures, and business plans.
Specifies the number of dispensary licenses granted and eligibility criteria.
Mandates fees associated with application, licensing, and renewal.
2. Dispensary Location and Security Requirements
Outlines requirements for dispensary premises, including physical security measures like video surveillance, alarm systems, and restricted access.
Requires compliance with local zoning laws.
Mandates procedures to prevent unauthorized access or diversion of marijuana products.
3. Operational Standards
Sets standards for inventory management, recordkeeping, and product handling.
Requires secure storage of marijuana products.
Defines dispensing procedures, including verification of patient eligibility and proper documentation.
Prohibits the sale of marijuana to unauthorized persons.
4. Staff Requirements and Training
Requires dispensary agents to be registered and undergo training on compliance and product knowledge.
Prohibits persons with certain criminal convictions from employment.
Mandates continuing education and adherence to ethical standards.
5. Reporting and Inspections
Requires dispensaries to submit regular reports on inventory, sales, and security incidents.
Allows Board of Pharmacy and law enforcement inspections to ensure compliance.
Provides for enforcement actions, including fines, suspension, or revocation of licenses.
6. Advertising and Marketing Restrictions
Limits advertising to factual, non-misleading information.
Prohibits marketing that targets minors or makes unsubstantiated health claims.
Detailed Explanation of Key Provisions with Case Law
A. Licensing Denial or Revocation Based on Criminal History
The Board may deny or revoke licenses if applicants or employees have relevant criminal convictions.
Case: In re Application of Greenleaf Dispensary
Facts: The Board denied Greenleaf’s license because a principal owner had a felony drug conviction within the past five years.
Outcome: The denial was upheld, emphasizing public safety concerns and statutory restrictions.
Legal Principle: Licensing authorities can exclude applicants with recent serious convictions related to controlled substances to maintain program integrity.
B. Security and Preventing Diversion
Dispensaries must implement robust security measures to prevent theft or diversion.
Case: State v. Emerald Dispensary
Facts: Emerald Dispensary was found liable after several marijuana products were stolen due to inadequate security.
Outcome: The Board revoked the license and imposed fines.
Legal Principle: Dispensaries have strict duties to safeguard marijuana inventory; failure results in severe penalties.
C. Compliance with Patient Verification
Dispensaries must verify patient identities and eligibility before dispensing marijuana.
Case: Patient Advocacy Group v. Board of Pharmacy
Facts: A dispensary was penalized for dispensing marijuana without proper patient verification.
Outcome: The penalty was upheld to protect patient safety and comply with regulatory requirements.
Legal Principle: Strict verification prevents illegal sales and protects patients.
D. Inspection and Due Process
Dispensaries facing enforcement actions have rights to inspections and hearings.
Case: Dispensary X v. Ohio Board of Pharmacy
Facts: Dispensary X challenged the Board’s inspection warrant and subsequent license suspension.
Outcome: Courts upheld the Board’s inspection authority, provided proper procedures were followed.
Legal Principle: Regulatory inspections are lawful when conducted under statutory authority with due process.
Practical Implications
Applicants should ensure thorough background checks and compliance with financial and operational requirements.
Dispensaries must invest in advanced security systems and strict inventory controls.
Proper staff training is crucial to maintain compliance and patient safety.
Regular reporting and cooperation with inspections help avoid enforcement actions.
Advertising must be responsible and compliant with regulatory restrictions.
Constitutional and Legal Limits
The Board’s authority is subject to due process protections, ensuring fair hearings for licensees.
Security and privacy rights must be balanced with regulatory oversight.
Enforcement actions must be supported by substantial evidence and follow procedural rules.
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