Ohio’s cannabis industry is facing new regulatory scrutiny as lawmakers move to tighten restrictions on hemp-derived intoxicants. On March 4, 2025, the Ohio Senate General Government Committee held its first hearing for Senate Bill 86 (S.B. 86), a proposal that would restrict the sale of intoxicating hemp products, such as delta-8 and delta-10 THC, to licensed dispensaries only.
Supporters argue the bill will close loopholes allowing unregulated THC products to be sold in gas stations and smoke shops, ensuring strict testing and oversight. However, critics worry it could limit access to affordable hemp alternatives and increase consumer costs.
Key Provisions of Senate Bill 86
Regulation of Intoxicating Hemp Products
- Defines intoxicating hemp products as those containing more than 0.5 mg of delta-9 THC per serving or 2 mg per package.
- Limits sales exclusively to licensed medical and adult-use dispensaries.
- Imposes felony penalties for repeat violations or sales to minors.
Restrictions on Drinkable Cannabinoid Products (DCPs)
- Limits DCPs to less than 0.3% THC and 0.4 mg per fluid ounce, capped at 48 ounces per package.
- Allows sales at dispensaries, bars, grocery stores and micro-distilleries.
- Requires manufacturers and retailers to comply with registration, testing and labeling regulations.
Taxation and Compliance Costs
- Introduces a 15% retail tax on intoxicating hemp products.
- Imposes a $3.50 per gallon excise tax on DCP manufacturers.
Industry Impact: What’s at Stake?
If enacted, S.B. 86 could significantly alter Ohio’s cannabis and hemp industries. The legislation aims to:
- Eliminate unregulated THC sales outside dispensaries, ensuring products meet safety and compliance standards.
- Level the playing field for state-licensed dispensaries, which operate under strict regulations and testing requirements.
- Increase costs for small hemp businesses, as new taxes and compliance fees could threaten their viability.
- Limit consumer access to affordable alternatives, driving demand for higher-priced dispensary cannabis products.
Could a Medical Marijuana Card Be the Best Option for Consumers?
With hemp-derived THC products facing new restrictions and taxation, obtaining an Ohio medical marijuana card may offer a more cost-effective and reliable alternative for consumers seeking safe, regulated THC products.
Benefits of having an Ohio medical marijuana card include:
- Tax Savings – Medical cannabis is exempt from excise taxes, which can significantly reduce costs compared to adult-use and hemp-derived THC products.
- Exclusive Dispensary Deals – Many state-licensed dispensaries offer discounts and promotions exclusively for medical patients.
- Access to Safe, Lab-Tested Products – Medical marijuana is subject to stricter quality control standards than unregulated hemp products.
As S.B. 86 moves forward, consumers affected by the potential tax hikes and restrictions on hemp-derived products may want to explore getting a medical marijuana card as an option to maintain affordable and safe access to THC products.
A Divided Debate Over Hemp Regulation
Supporters argue that S.B. 86 will:
- Ensure product safety by mandating rigorous testing and compliance.
- Prevent underage access to intoxicating hemp-derived products.
- Protect Ohio’s licensed dispensary system by eliminating unregulated competition.
Opponents warn that S.B. 86 will:
- Push small hemp businesses out of the market, leading to less competition and higher prices.
- Limit consumer access to affordable alternatives, forcing them to purchase higher-priced dispensary products.
- Disproportionately impact low-income consumers, who may no longer be able to afford hemp-derived THC products.
The Future of Ohio’s Cannabis Laws
With S.B. 86 under review, further legislative changes may follow, including:
- Possible adjustments to pre-roll sales in dispensaries.
- Discussions on legalizing cannabis consumption lounges.
- Potential tax increases on both cannabis and hemp products.
As Ohio’s cannabis laws continue to evolve, staying informed is crucial for consumers and businesses alike.
