The state of Ohio sued the city of Toledo on Tuesday to overturn parts of its new marijuana decriminalization law, alleging it will encourage drug cartels to set up distribution operations in the city.

Ohio Attorney General Mike DeWine and the Lucas County prosecutor and sheriff filed the lawsuit in Lucas County Common Pleas court against the "Sensible Marijuana Ordinance" passed in last month's Toledo municipal election.

The ordinance eliminated fine and jail penalties for marijuana-related offenses in Ohio's fourth-largest city, according to DeWine. The northeastern Ohio city was the first in the state to enact a local ordinance decriminalizing marijuana.

The lawsuit objects to four provisions of the ordinance as unconstitutionally conflicting with Ohio general laws, including a "gag-rule" which prohibits Toledo Police from reporting marijuana crimes to authorities other than the city attorney.

It also protests provisions that make felony marijuana possession and trafficking a "negligible" municipal offense,...