This week, hearings continue to discuss banning certain hemp products in Ohio. Senate Bill 326 continues being examined, with a possible vote this week. The bill has been advancing quickly through the legislative process during the Lame Duck session and could significantly impact Ohio’s hemp industry.
Ohio Senate Bill 326: Banning Certain Hemp Products
Our recent story outlines just what’s at stake for those who participate in the Ohio hemp industry. Below we provide a summary of the key arguments for and against Ohio Senate Bill 326, based on committee testimony.
Proponents’ Testimonies
On November 19th, proponents for SB 326 were heard by the General Government Committee. Supporters focus on the dangers of intoxicating hemp products, particularly Delta-8 THC, which they argue poses risks to public health. They believe the lack of regulation has led to unsafe products being sold and marketed, especially to minors. One argument highlighted concerns about inconsistent labeling and the potential for misuse, which can lead to health emergencies or accidental consumption by children.
Mike Getlin of Nectar Markets, a dispensary chain with locations across Ohio, was among the proponents of the bill. He argued that if dispensaries like Nectar have to follow the rules, so should the rest of the market. “Some parent could very well come home to find their child sick or dead from THC they purchased at any one of the many thousands of retailers selling intoxicating cannabis products around this state today, with no license or training on how to do so safely. He argued that if these products, which can sometimes have the same intoxicating effect as the products sold at adult use dispensaries, are to continue being sold and consumed in Ohio, they must fall under the same regulatory framework.
Chris Linsey, Director of State Advocacy and Public Policy for the American Trade Association for Cannabis and Hemp also gave proponent testimony. He warns, “These products are not marijuana lite—in fact they aren’t cannabis at all—and they aren’t feeding Ohio farmers. These are modern designer drugs that go by the name hemp. The bottom line is, if folks in that industry want to sell intoxicants from this plant, then they need to get a license through DCC.”
Neal Karkhanis of multi-state cannabis operator Verano also supports the bill. He explained, “The 2018 Farm Bill loophole has led to the proliferation and sale of unregulated and untested intoxicating hemp products that pose a danger to the public, especially children. These products do not go through the level of scrutiny required of the legal marijuana market in Ohio, which require rigorous product testing, product tracking, packaging, and exclusive sale in adult-only establishments. Short of regulating intoxicating hemp products at the same or more stringent levels of the regulated marijuana industry to ensure the public’s health, it is vital that intoxicating hemp products be prohibited for sale.”
Opponents’ Testimonies
At a third hearing on December 3rd, opponents of the bill were heard. Many argued that banning these products will harm small businesses and hemp farmers who rely on the sale of hemp-derived cannabinoids. They point out that responsible businesses already adhere to safety guidelines and that a complete prohibition is excessive. Many advocate for stricter regulation and testing standards rather than an outright ban.
Opposition noted the economic contributions of Ohio’s hemp-derived cannabinoid market, which generates:
- $704,782,000 in annual revenue
- 8,157 jobs with $327,448,000 in wages
- Approximately $40,524,970 in annual sales tax receipts (source: 2023 Economic Impact Report on the United States Cannabinoid Industry)
One opponent was The U.S. Hemp Roundtable, a coalition of more than 100 leading companies and organizations in Ohio and across the country committed to safe hemp and CBD products. The bill would mean almost all of the hemp product market in Ohio would be prohibited, and not just intoxicating products. Common hemp products such as CBD oils, hemp containing beverages, and even some topical hemp products would be likely to be banned under this proposal.
Opponents argue strict bans will only support illicit sales of these products, with no enforceable safety or age restrictions, which does nothing to address the issues legislators have cited as the need for new hemp legislation.
Hemp Beverages in Ohio Bars
Bobby Slattery, owner of 50 West Brewing Company with locations across Ohio, opposed the hemp bill for a different reason. He noted that “We’ve witnessed firsthand how hemp-based beverages are filling a critical gap for consumers seeking a safe, regulated alternative to alcohol.” Slatterly said that while he fully supports creating guidelines to ensure proper age restrictions, labeling, and testing, he believes the language in Senate Bill 326 is overly restrictive and fails to address the unique needs of small businesses and consumers in Ohio.
More Commentary Last Week
On December 10th, SB326 received a fourth hearing with more commentary taken from those who support, oppose, and are interested parties to this bill.
One of those interested parties was Alexander Beck, Manager of Extraction and Artisanal Infusion Processes at Ohio licensed processor Innovative Healing Solutions. Beck noted: “While I understand the intent behind Senate Bill 326, prohibiting intoxicating hemp cannabinoids outright is not the solution. Such a move risks driving these products into unregulated markets, creating safety concerns while denying patients, wellness professionals, and responsible consumers access to valuable therapeutic tools. We have an opportunity here to strike a balance! One that protects public safety, preserves access for those in need, and upholds accountability across the industry.”
Making Your Voice Heard on SB 326
SB 326 is due to continue to be discussed and possibly voted on this week in the Ohio Senate. The bill has been advancing quickly through the legislative process during the Lame Duck session and could significantly impact Ohio’s hemp and CBD industries. Our recent story outlines just what’s at stake.
Proponents, opponents, and interested parties may call or write to the Committee to express their opinions or plan to appear in person during a future session. For future hearing times, full testimonies and committee documents, go here: SB 326 Committee Activity.
Ohio Cannabis Rules Package Up for Review
In related cannabis news, the DCC is proposing several new rules pursuant to Ohio Revised Code (O.R.C.) 3780; however, they will replace other rules currently in effect under O.R.C. 3796, which were specific to the regulation of the Medical Marijuana Control Program. The new rules apply to both medical and non-medical cannabis. Major updates include licensing requirements for cultivators, processors, dispensaries, and testing labs. It also introduces new compliance standards, security protocols, application processes, and operational guidelines. Additional details cover product labeling, record-keeping, and enforcement policies.
Some key changes include modifications to application processes, updates to tracking systems for cannabis products, and clarification of rules for medical marijuana patients and providers. These changes aim to improve the accessibility, accountability, and safety of the state’s cannabis system. The DCC submitted the proposed rules to the Common Sense Initiative and seeks public comment by Monday, December 23, 2024. Comments may be emailed to DCCRules@com.ohio.gov and CSIPublicComments@governor.ohio.gov.
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