Ohio Cannabis Industry at Risk? Anti-Cannabis Rep up for Speaker, SB 326 Gets Third Hearing this Week

Significant uncertainty and potential upheaval swirl in the Ohio statehouse this week as political leaders propose drastic changes to the state’s medical and adult use cannabis policies. Recent legislative and political developments suggest that the strides made in legalizing and regulating cannabis may be at risk of being reversed or restricted. Here’s what’s happening:

Leadership and Legislative Shifts

State Rep-Elect Matt Huffman (R, Lima) was recently voted by House Republicans to become the Ohio House Speaker. He has openly stated his intention to revisit cannabis policies. A vocal critic of cannabis legalization, he has suggested limiting THC levels in products and potentially making adult-use cannabis illegal. He argues that voters were misinformed when approving legalization. However, Huffman’s stance faces opposition even within his party, with State Representative Ron Ferguson emphasizing the importance of respecting the voters’ decisions with respect to cannabis.

Huffman’s leadership hinges on a final vote in January, which will require input from Democratic legislators. Advocacy efforts are already underway to encourage Democratic representatives to oppose Huffman’s speakership, highlighting the importance of maintaining policies aligned with voter intent.

Crackdown on Hemp and Cannabis Derivatives: Ohio SB 326

Simultaneously, Ohio Senate Bill 326 (SB326) introduces another layer of complexity. The bill proposes significant restrictions on hemp-derived products such as Delta-8 THC and hemp–derived Delta-9 THCA, which have grown in popularity since the legalization of adult-use cannabis. Provisions in the bill would:

• Creates Section 3779.02 of the Ohio Revised Code: “No person shall sell an intoxicating hemp product in this state.”
• Defines intoxicating hemp products as: “a hemp product containing more than five-tenths of a milligram of delta-9 thc per serving, two milligrams of delta-9 thc per package, or five-tenths of a milligram of total non-delta-9 thc per package.”
• Impose hefty fines and potential criminal penalties for violations: “$10,000 for a first violation; $25,000 for a second violation; $50,000 for a third or subsequent violation.

Supporters such as Verano, Dayton Children’s Hospital, and the American Trade Association for Cannabis & Hemp argue these measures are necessary to address the public health risks associated with unregulated products. Opponents of the bill warn of job losses and economic harm to small businesses reliant on these markets.

Read proponent testimonies here.

Consumers of these products will be impacted along with the businesses that serve them. Some Ohio adults have said they use psychoactive hemp products as a way to find relief without risking employment or being listed in a database. The hemp industry has grown to serve those who do not fit into the regulated market for various reasons. Those patrons are concerned about the impending legislation.

Industry and Public Response

With a third critical hearing for SB 326 scheduled tomorrow (December 3rd, 2024), cannabis advocates have expressed the need to stay vigilant. Advocates are mobilizing to counter these legislative threats via grassroots efforts. They urge the public to contact their representatives, emphasizing the economic and social consequences of these proposals. Advocacy groups, consumers, and industry stakeholders with opinions on SB 326 and the upcoming Speaker election should:

• Participate in person in public hearings, such as the Senate General Government Committee’s session on December 3, 2024 at 3:30pm in the North Hearing Room of the Ohio Statehouse. Be a part of the audience in-person or online at ohiochannel.org.
• If you oppose changes to the hemp program, submit your written testimonies and completed witness forms against SB 326 by the end of business day December 2, 2024 to the chair (Shane Wilkin – wilkin@ohiosenate.gov) and vice chair (Bill Reineke – reineke@ohiosenate.gov) of the Senate General Government Committee.
• Contact state legislators to express concerns about the soon-to-be Speaker of the House and defend voter-approved cannabis policies.

Ohio’s cannabis future may depend on collective action to uphold the progress made and resist regressive policies that threaten the industry and consumer choice. Follow MedicateOH on our social channels and subscribe to our weekly newsletter to get the latest news on this developing story. 

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