Chapter 1301:18-6 | Processor Certification and Requirements

Rule 1301:18-6-01 | Processor Certificate of Operation.

• Effective: December 20, 2024
• Promulgated Under: 119.03

(A) Unless otherwise authorized by the division of cannabis control, each processor is prohibited from engaging in any activity authorized under these rules until the division issues the processor a certificate of operation.

(B) The division shall not issue a provisional processor a certificate of operation unless and until the processor meets all requirements outlined under division 1301:18 of the Administrative Code.

(C) Each processor shall have twelve months from the date the processor is issued a provisional license pursuant to these rules to obtain a certificate of operation.

(D) Upon receipt of its certificate of operation, a processor may engage in the following activities:

(1) Obtain cannabis from a cultivator, processor, or dispensary licensed pursuant to division 1301:18 of the Administrative Code;

(2) Process cannabis into a form authorized under rule 1301:18-4-03 of the Administrative Code;

(3) Distribute, transfer, and sell cannabis to a cultivator, processor, or other dispensary licensed pursuant to division 1301:18 of the Administrative Code; and

(4) Transfer cannabis for research and development or state-required testing to a laboratory licensed pursuant to division 1301:18 of the Administrative Code.

(E) A certificate of operation shall be issued to, and valid only for, the designated business entity, owners, and licensed premises specified within the processor's initial application for licensure pursuant to rule 1301:18-2-02 of the Administrative Code.

Last updated December 20, 2024 at 7:43 AM

Supplemental Information

Authorized By: 3780.03, 3796.03
Amplifies: 3780.03, 3780.14, 3796.03, 3796.09, 3796.19
Five Year Review Date: 12/20/2029

Rule 1301:18-6-02 | Processor Uninterrupted Supply of Cannabis.

• Effective: December 20, 2024
• Promulgated Under: 119.03

(A) Each processor shall conduct its daily business and manufacturing activities in a manner that ensures a consistent supply of cannabis is available for sale to customers.

Evidence of a processor's consistent supply pursuant to this rule is shown by:

(1) Not more than thirty calendar days elapsing without extracting or manufacturing at least two hundred fifty grams of cannabis concentrate; or

(2) Not more than thirty calendar days elapsing between sale or transfer of at least one lot of cannabis products to a dispensary.

(B) A processor may petition on a form prescribed by the division to toll computation of the timeframes provided in paragraph (A) of this rule and include the following:

(1) An explanation of the facts and circumstances that prevent the processor's compliance with paragraph (A) of this rule; and

(2) A written plan, outlined in specific detail with the processor's intended actions and projected timeline, to ensure the processor complies with this rule.

(3) Upon receipt of a petition under this paragraph, the division may stay the requirement of paragraph (A) of this rule for the processor. A division order staying the requirement of paragraph (A) of this rule will state the date upon which the stay is lifted.

Last updated December 20, 2024 at 7:43 AM

Supplemental Information

Authorized By: 3780.03, 3796.03
Amplifies: 3780.03, 3780.14, 3796.03, 3796.09, 3796.19
Five Year Review Date: 12/20/2029

Rule 1301:18-6-03 | Processor Operating Procedures and Quality Assurance.

• Effective: August 28, 2025
• Promulgated Under: 119.03

(A) Each processor shall establish, maintain, and comply with written policies and procedures for the daily operation and processing of cannabis. The processor's standard operating policies and procedures shall ensure the safe processing, extracting, manufacturing, and distribution and compliance with all mandates under division 1301:18 of the Administrative Code.

(B) Major modifications

(1) Any proposed major renovation or modification of the licensed premises shall be submitted to the division prior to implementation.

(2) The division of cannabis control will review the proposed modification and may do any of the following:

(a) Approve the submission;

(b) Deny the submission; or

(c) Mandate updates to the submission to ensure compliance with this chapter.

(3) The division may inspect the licensed premises pursuant to any proposed major renovation or modification.

(4) A processor shall not proceed with any major modification unless and until the division provides the processor written approval to do so.

(C) Each processor shall ensure the licensed premises:

(1) Conforms with all relevant local ordinances, zoning and planning requirements, and fire codes;

(2) Complies with all applicable OSHA regulations, fire, safety, and building codes pertaining to the use and storage of the equipment and solvents used in the manufacture of cannabis products and pass all associated inspections;

(3) Prominently displays its certificate of operation and license seal issued by the division;

(4) Contains sufficient lighting to ensure visibility, security, and proper surveillance;

(5) Maintains proper cleanliness, ventilation, temperature control, and sanitation of the facility to ensure safe and consistent inventory;

(6) Conducts routine calibration of all scales, balances, or other weight or mass measuring devices using "National Institute of Standards and Technology" (NIST)-traceable reference weights, at least annually, by an independent third party approved by the division.

(7) In accordance with rule 1301:18-3-14 of the Administrative Code, documents the following processes utilized at the licensed premises:

(a) The form and types of cannabis maintained at the facility on a daily basis;

(b) Production records, including extraction, refining, manufacturing, records;

(c) All ingredients used in the production of each lot of cannabis products, documented in a manner that reconciles the identity and amount of cannabis and all other ingredients used with each lot; and

(d) The vendor name, part number and lot identifier of the vaporization units for each lot of vaporization solution that is manufactured.

(D) Designated areas within the facility.

(1) Each processor shall designate areas within the facility that are compartmentalized based upon function and restricts movement between the different production areas by personnel based on access credentials assigned by the facility.

(2) Each processor shall maintain the following designated, secure limited access areas accessible only by authorized registered employees:

(a) A cannabis extraction area;

(b) A storage area for all cannabis;

(c) A security area for all security and surveillance systems and equipment;

(d) A preparation and packaging area for all cannabis intended for distribution;

(e) A cannabis destruction and disposal area that complies with rule 1301:18-3-14 of the Administrative Code; and

(f) An area for receipt of all deliveries to the facility.

(E) Employees

(1) Prior to commencing employment, each processor shall ensure all employees registered with the division pursuant to rule 1301:18-3-09 of the Administrative Code and receive adequate education and training on standard operating procedures and as mandated by rule 1301:18-3-10 of the Administrative Code.

(2) All registered employees are to display their employee badge at all times during working hours.

(3) A registered responsible party as outlined by rule 1301:18-3-09 of the Administrative Code is to be present at the licensed premises at least twenty hours per week.

Last updated August 28, 2025 at 7:34 AM

Supplemental Information

Authorized By: 3780.03, 3796.03
Amplifies: 3780.03, 3780.20, 3796.09
Five Year Review Date: 8/28/2030

Rule 1301:18-6-04 | Processor Minimum Security and Surveillance Requirements.

• Effective: December 20, 2024
• Promulgated Under: 119.03

(A) Each processor shall 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.

Pursuant to rule 1301:18-6-02 of the Administrative Code each processor shall petition the division prior to implementing any major modification to the facility's security procedures, systems, or equipment.

(B) Prior to the commencement of business, each processor shall meet the following security and surveillance requirements that ensure compliance with all standards established by the division:

(1) Designate a secure, limited access area for all equipment maintained pursuant to this rule that is accessible only by authorized registered processor employees with foundational training in security and surveillance;

(2) Maintain or construct fencing to prevent unauthorized entry or access to waste disposal containers, disposal areas or compost areas located outside the facility.

(3) Install a security alarm system with commercial grade equipment that includes the following:

(a) An access alarm on all entry points and windows;

(b) Motion detectors that identify unauthorized access into the facility; and

(c) A silent alarm, which may be utilized during instances of duress that sends a pre-recorded voice message to the facility's designated security personnel and law enforcement, public safety, or emergency services requesting dispatch, which includes the capability to enter a designated code into an arming station to signal that the alarm user is being forced to turn off the system.

(4) Install a video surveillance system that complies with the following:

(a) Is capable of electronic monitoring of the facility and real-time access by the division;

(b) Collects twenty-four-hour live video feed with motion-activated recording capabilities for all video cameras that record in at least fifteen frames per second;

(c) Archives and retains recordings for at least forty-five calendar days;

(d) Contains a display monitor with a minimum screen size of twelve inches;

(e) Exports still images in an industry standard format that guarantees authentication and prevents alteration of the recorded images;

(f) Produces clear color still photographs that are a minimum of 600 x 600 dpi from any camera image, live or recorded;

(g) Embeds a date and time stamp on all recordings; and (h) Includes a failure notification system that provides an audible and visual notification of any failure in the electronic monitoring system.

(5) Install unobstructed cameras in a manner that prevents tampering, captures the entirety of the licensed premises, and clearly identifies all individuals and activities within the surveilled area;

(6) Install cameras at all the following locations:

(a) All points of ingress and egress;

(b) All secure, limited access areas;

(c) Any area where cannabis is manufactured, processed, extracted, stored, or handled;

(d) Any area that stores cannabis or facility inventory;

(e) The facility's cannabis destruction and disposal area; and

(f) All areas where sales proceeds are stored or transferred.

(7) Daily records of all registered employees' access to any secure, limited access area;

(8) Develop emergency policies and procedures for securing all inventory and currency in the event of diversion, theft, or loss;

(9) Any other requirements the division deems necessary to maintain proper security and surveillance and ensure public safety.

(C) Each processor shall inspect and test all security and surveillance equipment at least once per month to ensure functionality.

(1) Pursuant to rule 1301:18-3-17 of the Administrative Code, each processor shall record and maintain evidence of all security and surveillance equipment tests pursuant to this paragraph.

(2) Each processor shall immediately notify the division of any failure in the facility's security and surveillance system or any associated equipment.

Any necessary repair or replacement shall occur within twenty-four hours of identification.

(3) Each processor shall keep all security equipment in good-working order and the systems shall be inspected and all devices tested on an annual basis by a third party.

(D) In the event a processor is made aware of any pending criminal, civil, or administrative investigations or legal proceedings for which a video recording may contain relevant information, the processor shall retain an unaltered copy of the recording until the investigation or proceeding is closed or the entity conducting the investigation or proceeding notifies the processor that it is not necessary to retain the recording.

Last updated December 20, 2024 at 7:43 AM

Supplemental Information

Authorized By: 3780.03, 3796.03
Amplifies: 3780.03, 3780.20, 3796.03
Five Year Review Date: 12/20/2029

Rule 1301:18-6-05 | Processor Inventory Control and Storage.

• Effective: August 28, 2025
• Promulgated Under: 119.03

(A) Each processor shall establish, maintain, and comply with written policies and procedures for proper and secure inventory control of all cannabis maintained at the licensed premises. The processor's inventory control policies and procedures shall mitigate the risk of theft, loss, and diversion of cannabis and ensure the following:

(1) Before accepting a delivery of cannabis, a responsible party must oversee and ensure the delivery:

(a) Meets all relevant packaging and labeling requirements; and

(b) The contents within the shipment conform with all representations outlined in the transfer manifest from the originating entity.

(c) In the event the shipment fails to meet the requirements outlined under paragraph (A)(1) of this rule, the processor shall:

(i) Refuse to accept the non-conforming batch or lot;

(ii) Immediately document the rejection in the state inventory tracking system and outline the reason for rejecting the non-conforming batch or lot; and

(iii) Return the batch or lot to the originating entity

(2) All information related to the cannabis maintained at the licensed premises is accurately and contemporaneously recorded in the state inventory tracking system from the time of receipt until distribution or disposal.

(3) All inventory is stored in a secure, limited access storage area that meets the requirements of rule 1301:18-6-05 of the Administrative Code accessible only by registered employees.

(4) Ongoing, regular, and comprehensive inventories of all cannabis maintained at the licensed premises that includes the following:

(a) Upon completion of each iteration of an extraction process, the processor attaches a label to the container of cannabis extract that includes the following information:

(i) The processor's name and license number;

(ii) The batch numbers of any batches of plant material used in the extraction;

(iii) The registered strain names of any plant material used during the extraction;

(iv) The lot number assigned to the lot of cannabis extract;

(v) The date of extraction; and

(vi) The net weight and volume of cannabis extract.

(b) Upon completion of each iteration of a manufacturing process, the processor attaches a label to the container of cannabis products that includes the following information:

(i) The processor's name and license number;

(ii) The registered product name;

(iii) The lot numbers of any lots of extract used in the manufacturing process;

(iv) The date of manufacture; and

(v) The net weight and unit count of cannabis products prepared or packaged for sale.

(c) A registered responsible party shall oversee a weekly inventory to ensure the physical inventory matches the information documented in the cultivator's internal inventory system and state inventory tracking system. The weekly inventory is to include the following:

(i) The date of the inventory;

(ii) The amount of cannabis at the licensed premises and include:

(a) The net weight of plant material;

(b) The net weight and volume of cannabis extract;

(c) The net weight and unit count of cannabis products prepared or packaged for sale or distribution;

(d) The results from a testing laboratory indicating the amounts of tetrahydrocannabinol (THC) and cannabidiol, if available; and

(e) The registered strain or product names and batch or lot numbers of plant material, cannabis extract, and cannabis products.

(iii) The amount of cannabis sold or distributed since the previous weekly inventory, and include the following:

(a) The date of sale or distribution;

(b) The license number and name of the licensed entity to which the cannabis was sold; and

(c) The batch or lot number, registered product name, and quantity of cannabis sold.

(d) The date, quantity, and method of disposal of cannabis, if applicable;

(e) A summary of the inventory findings; and

(f) The name, signature, and title of the employees who conducted the inventory and oversaw the inventory.

(d) Prior to the renewal of its certificate of operation, a registered responsible party for each processor shall do the following:

(i) Create an annual inventory report generated by the state inventory tracking system; and

(ii) Conduct a full, comprehensive, manual inventory of the cannabis at the licensed premises and compare the findings to the annual inventory report created pursuant to paragraph (A)(4)(a) of this rule.

(e) Upon discovery, each processor shall notify the division in writing of any discrepancies and submit a written plan of corrective action prior to making any adjustments to the state inventory tracking system.

(5) In accordance with rule 1301:18-3-16 of the Administrative Code, prior to any transfer, sale, or distribution to another licensed entity, the licensee prepares a transfer manifest utilizing the state inventory tracking system for each transfer; and

(6) Any and all information the division determines necessary for maintaining and tracking cannabis is documented and submitted into the state inventory tracking system.

(7) All inventories, procedures, and other documents required by this rule are maintained at the licensed premises and pursuant to rule 1301:18-3-14 of the Administrative Code and available for immediate review and duplication upon the division's request.

(B) [Reserved.]

Last updated August 28, 2025 at 7:34 AM

Supplemental Information

Authorized By: 3780.03, 3796.03
Amplifies: 3780.07, 3780.03, 3780.20, 3780.12, 3796.03
Five Year Review Date: 8/28/2030