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