Ohio Moves Toward Major Cannabis Policy Changes as Lawmakers Advance SB 56

20 November 2025

Ohio’s shifting cannabis rules appear set for another large update. The change is tied to new federal hemp policy and to state efforts to narrow parts of the marijuana law that voters approved in 2023.

In an early morning vote, the Ohio House passed the conference committee version of Senate Bill 56 by a count of 52 to 34. The bill now returns to the Senate for a final decision. Senators had already passed an earlier version this year, but they rejected the House’s first round of changes. That sent both chambers into weeks of negotiation. During the final committee meeting, Democrats, including Senator Bill DeMora of Columbus, offered several amendments. None were accepted.

Hemp Rules Tighten Under Federal Alignment

A major section of SB 56 deals with hemp. The bill would bring Ohio law in line with a new federal statute that defines hemp more narrowly than before. Under these rules, intoxicating hemp products with more than 0.4 milligrams of total THC per container, or containing synthetic cannabinoids, could not be sold outside licensed Ohio marijuana dispensaries.

Representative Brian Stewart said lawmakers decided to “cut to the chase” by moving these products into the regulated dispensary system or removing them from store shelves. Retailers would have a 90-day transition period, after which affected products could be sold only in licensed dispensaries or not at all.

One temporary exception covers hemp beverages. Drinks containing five milligrams of THC could be made, shipped and sold in Ohio until December 31, 2026. Lawmakers added language stating that if the federal government changes direction and allows higher-THC beverages, the General Assembly intends to revisit the issue and consider a long-term structure. DeMora, who opposed the bill overall, said the delay may offer some relief to a hemp drink sector he believes employs around 2,000 Ohioans.

Ohio is already dealing with uncertainty around hemp. On October 8, Governor Mike DeWine issued a 90-day executive order banning intoxicating hemp products starting October 14. A Franklin County judge paused the order through December 2 after a legal challenge. For Senator Stephen Huffman and other Republicans, the new federal law, which comes with a one-year implementation period, made it clear that Ohio needed to set its own rules ahead of that timeline.

Marijuana Provisions Would Narrow Parts of Issue 2

The other half of SB 56 addresses marijuana, and this part has sparked the sharpest debate. Voters passed Issue 2 in 2023 with 57 percent support. Adult-use sales began in August 2024. During the first year, recreational sales totaled about 702 to 703 million dollars, and combined medical and adult-use sales passed three billion dollars.

Supporters of SB 56 say they are not reversing legalization. They say the bill adjusts certain areas that may need clearer limits. The proposal would lower the THC cap in adult-use extracts from 90 percent to 70 percent and would set a 35 percent THC limit on cannabis flower. Smoking cannabis in most public places, including sidewalks and outdoor bar patios, would be banned. Landlords could prohibit marijuana vaping at rental properties. A violation of a vaping ban, even in a tenant’s backyard, would count as a misdemeanor.

The bill also changes several legal protections. Current anti-discrimination language for lawful cannabis use would be removed. That language applies to areas such as child custody, organ transplant decisions and professional licensing. Another section makes it illegal to possess cannabis from any source other than an Ohio dispensary or a lawful homegrow. Cannabis bought legally in Michigan, for example, could again lead to charges inside Ohio. Some of the probable-cause language around marijuana was softened in conference, but Huffman said behavior such as drifting across the center line while driving, paired with signs of impairment, could still trigger enforcement.

• Democratic lawmakers, including Representative Bride Rose Sweeney and Senator DeMora, said the proposal conflicts with what voters approved. They argued that Issue 2 promised a public-health approach and reduced criminal penalties, not new ones. They also said adults should be able to consume cannabis in private businesses or among neighbors, as voters understood.
• Republican leaders disagree. Huffman notes that Issue 2 amended the Revised Code, not the state constitution, which means lawmakers always had authority to adjust it. He and House Speaker Matt Huffman say the bill respects core parts of the law, such as the 10 percent tax rate and homegrowing rights, while adding what they describe as guardrails for minors and limits on public use. Stewart says the measure bans products that resemble fruit snacks or gummies, and blocks advertising that appears to target youth.

Funding and Local Issues

The bill releases money that municipalities have been waiting for. About 36 percent of adult-use marijuana tax revenue would go to cities and townships that host recreational dispensaries. Localities with cannabis operators would also receive a share of the broader tax pool. David Bowling, executive director of the Ohio Cannabis Coalition, called the Host Community Fund a long-promised way for operators to support the neighborhoods where they work.

The rule changes come as the Division of Cannabis Control works on packaging and labeling updates and as lawmakers debate how cannabis tax revenue should be used. Governor DeWine has suggested directing more funds to police training, local jails and behavioral health services. A survey earlier this year, found municipal leaders clearly opposed earlier ideas that would have removed some of their expected funding.

With the Senate scheduled to return on December 9, the future of SB 56 may be decided soon. If lawmakers pass the bill and the governor signs it before year’s end, hemp and marijuana businesses, along with patients and consumers, will have a short timeline to adjust to rules that more closely match new federal policy.