COLUMBUS, OH – Ohio lawmakers have taken significant steps to reshape the state’s burgeoning cannabis and hemp markets, advancing legislation that will impose new restrictions on recreational marijuana and strictly regulate intoxicating hemp-derived products. The proposed changes, spearheaded by Senate Bill 56 (SB 56), aim to clarify regulations, enhance public safety, and align state law with evolving federal definitions, potentially altering the landscape for consumers and businesses across Ohio.
Background: The Dawn of Legal Cannabis in Ohio
In November 2023, Ohio voters overwhelmingly approved Issue 2, legalizing recreational marijuana for adults 21 and older. This landmark decision permitted the possession of up to 2.5 ounces of cannabis plant material or 15 grams of cannabis extract, allowed home cultivation of up to six plants per individual (12 per household), and established a 10% excise tax on sales. A new state agency, the Division of Cannabis Control within the Department of Commerce, was tasked with licensing and regulating the industry. However, the implementation of Issue 2 has been closely followed by legislative efforts to amend its provisions.
Revising the Voter-Approved Cannabis Law
SB 56 seeks to introduce several modifications to the voter-approved law. While preserving the core tenets of legalization, the bill includes provisions to prohibit public consumption of cannabis, limiting use strictly to private residences. Possession limits remain at 2.5 ounces of flower, with stricter regulations on extracts. The legislation also proposes to reduce THC potency caps for cannabis extracts, from a maximum of 90% down to 70%, and for plant material to 35%. Furthermore, protections for employees against discrimination based solely on lawful personal cannabis use are set to be repealed, restoring employers’ authority to enforce drug-free workplace policies, including testing and disciplinary actions for off-duty use.
Cracking Down on Intoxicating Hemp
A major focus of the legislative push is the regulation of intoxicating hemp-derived products, such as delta-8 THC gummies and beverages, which have proliferated in convenience stores and gas stations. Governor Mike DeWine has actively pursued bans on these products through executive orders, citing concerns about child safety and the unregulated nature of sales. The new legislation aims to codify these restrictions into state statute.
Under SB 56, the sale of most intoxicating hemp products will be restricted to licensed marijuana dispensaries. This move is intended to ensure these products are sold only to adults 21 and older and are subject to regulatory oversight, similar to recreational cannabis. However, an exception is being made for THC-infused beverages, which will be permitted to be sold at mainstream retailers, bars, and restaurants at least through the end of 2026. These beverages will have specific THC per serving and per container limits clearly labeled. This regulatory shift aligns with a recent redefinition of hemp under federal law, aiming to close the “hemp loophole” that allowed these potent products to bypass traditional cannabis regulations.
Key Provisions of the New Legislation
Beyond the core changes to recreational cannabis and hemp products, SB 56 includes several other notable provisions:
* Public Consumption Ban: Smoking or vaping cannabis in public outdoor spaces is prohibited.
* Possession Limits: While home grow allowances are maintained, the bill could re-criminalize possessing cannabis not purchased from a state-licensed dispensary or legally home-grown, potentially affecting purchases made in neighboring states.
* THC Potency Caps: New limits are set for THC concentration in cannabis products.
* Employment Policies: Employers can continue to discipline or terminate employees for marijuana use, even off-duty.
* Tax Revenue: Changes are proposed for the distribution of tax revenue generated from cannabis sales, with a portion being redirected to municipalities hosting dispensaries and potentially other state funds.
* Expungement: The bill may offer a pathway for individuals with past low-level marijuana possession convictions to have their records expunged if the amounts match current legal limits.
Broader Implications and Industry Reactions
While proponents argue that these measures are necessary for public safety and to protect children from appealingly packaged products and unregulated potent substances, critics contend that the legislation undermines the will of Ohio voters who approved Issue 2. Some industry stakeholders have raised concerns about the impact on small businesses and the potential for over-regulation. The ongoing debate reflects a broader trend across the nation as states grapple with effectively regulating a rapidly evolving cannabis and hemp market. Celebrity comments, such as those from Seth Rogen highlighting the expansion of the THC beverage market and the perceived threats to established industries, underscore the cultural and economic shifts at play.
As the trending news in cannabis regulation continues to unfold, Ohio’s legislative journey with SB 56 highlights the complex process of balancing voter intent with public health concerns and market dynamics. The bill now awaits further consideration and a final vote in the Ohio Senate before potentially heading to Governor DeWine’s desk for his signature, marking a significant chapter in the state’s approach to cannabis and hemp policy.
