When Ohio voters passed Issue 2 in November 2023, the message was clear: legal, accessible cannabis was the will of the people. But as with many voter-approved initiatives, the journey from the ballot box to the law books is rarely a straight line. The Ohio legislature has now sent Senate Bill 56 to Governor Mike DeWine’s desk, a piece of legislation that seeks to significantly overhaul the framework voters approved just over a year ago.
While lawmakers argue these changes are necessary for public safety and alignment with new federal guidelines, many see it as an encroachment on the will of the voters. If signed, SB 56 won’t just tweak administrative rules; it will fundamentally alter how cannabis is taxed, transported, and consumed in Ohio, while simultaneously dropping the hammer on the intoxicating hemp market.
Major Changes to Voter-Approved Cannabis Laws
The most contentious aspect of Senate Bill 56 is how it modifies the statutes originally approved by voters. While the core of legalization remains—adults can still purchase and possess cannabis—the new bill introduces stricter regulations that some argue were never part of the deal.
One of the most significant shifts involves the potency of products. The bill lowers the allowable THC cap on extracts from 90% down to 70% and caps flower potency at 35%. While 35% is a high ceiling for flower that few strains reach, the reduction in concentrate potency limits consumer choice for those who rely on high-strength extracts for medical or recreational use.
Furthermore, the bill imposes a hard cap of 400 dispensaries statewide, potentially limiting access and stifling market competition compared to the more open market voters envisioned.
Perhaps most concerning to privacy advocates are the new criminal penalties associated with possession and transportation. The bill criminalizes possessing cannabis that is not in its original packaging—a rule that could easily entrap law-abiding citizens who transfer their legal product into a different container at home.
Additionally, it reintroduces criminal penalties for passengers with open containers and mandates that drivers store cannabis in the trunk, treating it with a severity that critics argue mirrors the old prohibitionist mindset rather than a modern, regulated market.
The End of the Intoxicating Hemp Era?
While the changes to marijuana laws are restrictive, the impact on the hemp industry is existential. Senate Bill 56 moves to align Ohio law with recent federal shifts, effectively banning the sale of “intoxicating hemp products” outside of licensed marijuana dispensaries.
This targets products containing Delta-8 THC and other synthesized cannabinoids that have flourished in gas stations and smoke shops under the loopholes of the 2018 Farm Bill.
Under the new legislation, hemp products would be prohibited if they exceed 0.4 milligrams of total THC per container or contain cannabinoids not naturally produced by the plant. This is a massive blow to the hemp industry, which has operated in a gray area for years.
Business owners argue that they are unfairly penalized because of bad actors in the industry. They say they would prefer regulations like age-gating and testing over an outright ban, which would give licensed cannabis dispensaries full control of the market.
There is, however, a temporary lifeline for one specific segment of the market. The bill includes a “carve-out” that allows liquor-licensed establishments to sell THC-infused beverages with up to 5mg of THC until the end of 2026.
This exception acknowledges the growing popularity of social tonics but sets a definitive expiration date, leaving the future of the hemp beverage sector in limbo beyond that timeframe.
Where Do the Taxes Go?
Voters didn’t just approve legalization; they approved a specific plan for where the tax revenue would go. Issue 2 directs a significant portion of tax dollars to social equity programs and job funds, aiming to support communities disproportionately harmed by the War on Drugs. Senate Bill 56 rewrites this.
The new bill shifts tax revenue away from social equity initiatives and redirects it to the state’s general fund and law enforcement training. While it maintains the 36% allocation for host communities allowing dispensaries, many see the removal of social equity funding as a betrayal of the social justice promises tied to legalization.
And now, with taxes funding the very systems that once worked to incarcerate individuals for cannabis-related offenses, the irony is hard to ignore. How can true progress be made when the funds meant to repair past harm are funneled elsewhere?
Why This Matters for Ohioans
The potential passage of Senate Bill 56 highlights a recurring tension in American politics: the tug-of-war between direct democracy and legislative intervention. When 57% of Ohioans voted “Yes” on Issue 2, they voted for a specific set of rules. By rewriting those rules, the legislature is effectively saying they know better than the electorate.
For consumers, the immediate impact will be stricter rules on where they can consume and how they transport their products. The bill explicitly bans public consumption, and carrying a joint outside its original dispensary packaging could technically land someone in trouble.
For the industry, it means a tighter, more restricted market with fewer licenses and lower potency caps. And for the hemp sector, it signals a near-total shutdown of their current business model.
As Governor DeWine reviews the bill, the cannabis community waits with anticipation. The Governor has long expressed concerns about intoxicating hemp products and public safety, making it likely he will sign the bill. If he does, Ohio will enter a new phase of legalization—one that is legal, yes, but perhaps not quite as free as the voters intended.
