Ohio Enacts New Cannabis and Hemp Regulations After Referendum Effort Fails

COLUMBUS – Updated rules for Ohio’s recreational Cannabis market and a statewide ban on most intoxicating hemp products outside licensed dispensaries took effect, closing the chapter on a citizen campaign to reverse legislative tweaks to the 2023 voter-approved program.

Senate Bill 56, signed by Gov. Mike DeWine in December, introduced the changes after months of debate in the Statehouse. The legislation adjusts elements of Issue 2 [the measure that passed with 57% support and launched adult-use sales in August 2024] while redirecting hemp-derived THC sales into the regulated channel.

Under the new framework, maximum THC levels drop to 70% in adult-use extracts, down from 90%, and flower carries a 35% cap. Public smoking or vaping is restricted to private residences, products must remain in original packaging, and possession of Cannabis purchased out of state becomes illegal. Drivers must store Cannabis in a vehicle’s trunk, and the state limits total dispensary licenses to 400. Home cultivation stays at six plants per adult and 12 per household.

For hemp, items exceeding 0.4 mg of total THC per container [a category that includes many beverages, edibles and concentrates sold at smoke shops, gas stations and breweries] can now be offered only through licensed Cannabis retailers. DeWine line-item vetoed language that would have permitted low-dose hemp THC drinks through the end of 2026, stating the carve-out risked consumer confusion and misalignment with federal standards.

Advocates with Ohioans for Cannabis Choice mounted a referendum drive to place the law on the November ballot but fell short of the required 248,000 valid signatures across 44 counties by the March 19 deadline. The group pointed to a compressed timeline following Attorney General approval of ballot language in early February.

Recreational Cannabis sales reached $836 million in 2025, the first full year of operation. The Division of Cannabis Control reported total product sales of $3.569 billion as of February 28, with adult-use accounting for $1.247 billion.

Hemp retailers and producers are clearing shelves, with some operators reporting inventory losses and staff reductions. Licensed Cannabis businesses gain a clearer path for higher-THC products but must navigate potency caps, location buffers near schools and churches, and stricter transport rules. A separate lawsuit by several breweries challenging the veto remains pending in the Ohio Supreme Court but did not delay implementation.

Photo: blimburnseeds.com