New restrictions approved by GOP legislators in Ohio have officially taken effect, altering the state’s voter-backed cannabis framework and introducing fresh criminal penalties. The measure, Senate Bill 56, also bans intoxicating hemp products, including drinks containing THC or CBD.
The law moved forward after a campaign to place a repeal measure on the November ballot fell short of the required signatures.
For many in the hemp industry, the shift brings uncertainty. Hemp grower Joey Ellwood noted that most of his customers rely on hemp products for relief from anxiety, pain, and sleep issues rather than for intoxication. He warned that some may now turn to prescription medication or travel outside the state to find alternatives. He estimates roughly 6,000 businesses across Ohio will feel the impact, raising concerns about job losses.
Some operators are already preparing to leave. Mark Fashian, formerly head of Midwest Analytical Solutions, said continuing operations in Ohio is no longer viable. He worked with hundreds of retailers that stocked hemp-derived products and said many are scrambling to remove inventory to avoid legal risk.
Several companies, including Saucy Seltzer and Uncle Arnie’s, joined a lawsuit in Franklin County seeking to halt enforcement. They argue that without immediate court action, their Ohio operations could collapse and expose them to serious criminal liability.
Supporters of the law, such as the Ohio Cannabis Coalition, argue the measure gives authorities clearer power to keep intoxicating products away from minors and reduce the spread of unregulated goods.
The legislation also reshapes Ohio’s broader marijuana framework, which voters approved in 2023. It lowers allowable THC concentrations in certain products, restricts public consumption, and introduces rules on storage and transport. Bringing marijuana across state lines into Ohio is now prohibited, even if it was legally purchased elsewhere.
Governor Mike DeWine removed a provision that would have temporarily allowed low-dose THC beverages, prompting another lawsuit from beverage makers and distributors. Cincinnati-based Fifty West Brewing, which produces a popular THC seltzer, reported strong sales leading up to the ban and said demand reflects a growing market for alternatives to alcohol.
Hemp advocates, including NORML’s Morgan Fox, argue the changes could push consumers toward unregulated markets, where product safety is less certain. He also warned that many residents may not realize certain actions are now illegal, increasing the risk of arrests tied to behavior voters previously approved.
Federal lawmakers recently approved limits on THC content in hemp products, though enforcement is delayed for a year. States, however, retain the authority to impose stricter rules sooner. Firms like Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY) will be studying how the changes in U.S. federal drug laws impact or influence regulations at the state level.
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