Rule 1301:18-5-06 | Cultivator Inventory Control and Storage.
(A) Each cultivator 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 cultivator'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) of this rule, the cultivator 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 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 1301:18-5-05 of the Administrative Code accessible only by authorized registered employees.
(4) Ongoing, regular, and comprehensive inventories of all cannabis maintained at the licensed premises that includes the following:
(a) Upon discovery, each cultivator 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.
(b) Prior to commencing business, each cultivator shall conduct an initial comprehensive inventory of all cannabis at the licensed premises.
If the cultivator commences business with no cannabis at the licensed premises, the cultivator shall record this fact as the initial inventory.
(c) When a cannabis plant reaches twelve inches in height or is transplanted from a cloning medium or apparatus into a growth medium or apparatus intended for the vegetative or flowering stages of growth cycle, whichever occurs sooner, securely attach a state inventory tracking system tag to the plant or the plant's container that includes the following information:
(i) The cultivator's business name and license number;
(ii) The cannabis strain name filed with the division; and
(iii) The unique plant identifier.
(d) 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 maintained at the licensed premises, and include the following:
(a) The total number of cannabis plants, whether in the flowering, vegetative, or clone phase of growth, organized by the room in which the plants are grown;
(b) Each batch of plant material including the associated batch number, weight, and strain name quarantined for:
(i) State-required testing as outlined under these rules;
(ii) Research and development;
(iii) Destruction or disposal in accordance with rule 1301:18-3-12 of the Administrative Code;
(iv) Packaged, labeled, and prepared for transfer, distribution, or sale; and
(v) The total number of plants and every unique plant identifier that have been harvested, but are not yet associated with a batch.
(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 number, registered product name, and quantity of cannabis sold.
(iv) The date, quantity, and method of disposal of cannabis, if applicable;
(v) A summary of the inventory findings; and
(vi) The name, signature, and title of the employees who conducted the inventory and the registered responsible party that oversaw the review.
(e) Prior to the renewal of its certificate of operation, a registered responsible party for each cultivator 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.
(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 deems necessary for maintaining and tracking cannabis is documented and submitted into the state inventory tracking system.
(7) In accordance with rule 1301:18-3-14 of the Administrative Code, all inventories, procedures, and other documents required by this rule are maintained at the licensed premises and available for immediate review and duplication upon the division's request.
(B) [Reserved.]
Last updated August 28, 2025 at 7:33 AM
Supplemental Information