OH SB254

Changes the director of commerce authority from discretionary ("may") to mandatory ("shall") to adopt rules establishing a closed-loop payment processing system for medical marijuana entities and registered patients and caregivers.

Requires all medical marijuana entities to deposit non-marijuana revenue into authorized financial institutions and use closed-loop debit cards for all financial transactions, including payroll and goods/services payments.

Requires registered patients and caregivers to deposit money into authorized financial institutions and use closed-loop cards to purchase medical marijuana products at licensed dispensaries.

Establishes the system's purpose as preventing criminal enterprises from receiving marijuana sales revenue, preventing interstate marijuana diversion, preventing distribution to minors, and preventing use of marijuana activity as cover for other illegal drugs or activities.

Transfers oversight authority from the state board of pharmacy to the department of commerce for system administration and grants full information access to state and federal law enforcement agencies, including the U.S. Treasury's Financial Crimes Enforcement Network.