Ohio’s long battle over cannabis and hemp came to a turning point on December 9th. After clearing both chambers of the legislature, Senate Bill 56 (SB 56) was delivered to Governor Mike DeWine late Wednesday for his signature. The measure reshapes Ohio’s legal cannabis landscape, tightening oversight of intoxicating hemp products, refining some adult-use cannabis rules and reducing patient and citizen protections, and consolidating the regulatory structure.
Key Provisions of SB 56
Intoxicating hemp now limited to dispensaries
SB 56 reclassifies many hemp-derived THC products—including delta-8, delta-10, and synthesized delta-9—as “intoxicating hemp products.” These items may now only be sold through licensed dispensaries to adults 21 and over after the one-year grace period expires next December.
THC limits reduced
The bill lowers maximum THC potency for adult-use extracts and concentrates. Adult-use extracts will be capped at 70% THC, while cannabis flower will be limited to 35% THC. Patients and consumers that rely on high-dose products may see a reduction or elimination of products they currently use.
Local revenue share kept in tact
For the adult-use sales tax revenue, SB 56 continues to allocate a portion to local communities: 36 % of cannabis excise-tax revenue is directed to municipalities and townships that host dispensaries (the “Host Community Fund”). Lawmakers noted during hearings that this provision is designed to share legalization’s economic benefits more equitably with local governments.
Regulatory changes and consolidation
Adult-use and medical cannabis will now operate under a unified regulatory umbrella, creating a standardized licensing, testing, and compliance framework. According to the Ohio House’s bill summary, the goal is to simplify oversight and eliminate inconsistencies between the two systems. The bill also eliminates the Division of Cannabis Control’s (DCC) authority to approve new forms of adult-use cannabis.
Meager Public Protections
A criticism of the bill is how few protections there are for citizens. The passed bill only notes that “an adult-use consumer shall not be subject to arrest or criminal prosecution for cultivating, growing, possessing, processing, storing, or using homegrown marijuana, or possessing paraphernalia or accessories that may be used in the administration of adult-use or homegrown marijuana.”
Use Restrictions
The bill also puts massive new restrictions on where cannabis can be used. No cannabis may be smoked in public places and the operators of public spaces cannot allow cannabis smoking in those public spaces. All cannabis must be purchased in Ohio and stay in Ohio to be consumed, according to the new law. A previous proposal to except concerts from that did not make it into the final bill.
SB 56 imposes restrictions on adult-use transport and possession. Adults 21+ may legally possess up to 2.5 ounces (≈ 70 grams) of cannabis plant material (flower or other non-extract form). For cannabis extracts/concentrates (e.g. oils, hash, wax), adults may possess up to 15 grams. All cannabis products must remain in its original packaging when transported and remain locked in the trunk or out of reach.
No home protections exist in the new law. Unless you own your home, someone else can dictate whether or not you have permission to smoke there. Landlords now have the ability to ban vaping (not just smoking) in leases.
Home-grow preserved
SB 56 leaves Ohio’s existing home-grow rules intact: six plants per adult, up to 12 per residence. These provisions were preserved after significant public input and remain unchanged. People growing their own cannabis at home have to be at least 21 years old, and cannot sell it or share it. Home growers also may not cultivate, grow, or possess homegrown plants on behalf of another person. Plant limits (and any home-grown plants) are legally separate from the 2.5-ounce/15-gram limit for possessable cannabis material.
Licensing caps & revised taxation/revenue distribution
The bill imposes limits on the number of active dispensaries statewide (i.e., licensing caps), which critics say concentrates the market in larger operators’ hands.
Reaction Across Ohio
Supporters: “Clarity,” “safety,” and “order”
Supporters of SB 56 argue that the state needed consistent rules after a patchwork of unregulated hemp-derived THC products entered the market.
According to Senate Majority Leader Rob McColley, intoxicating hemp items “are going to be off the shelves immediately upon the effectiveness of this bill,” a move he says prioritizes consumer safety and ends confusion about which products are legally allowed.
Local governments also welcomed the additional tax revenue. David Bowling, executive director of the Ohio Cannabis Coalition, said the measure will finally open up “long-promised Host Community Fund dollars,” according to previous reporting from the Ohio Capital Journal.
Advocates for tighter regulation say the new rules ensure proper testing, labeling, and age-verification. According to a policy breakdown from the Libertarian Party of Ohio, supporters believe SB 56 creates a more predictable, controlled market.
Critics: “Rollbacks” and harm to small businesses
Opponents of SB 56 describe it as a partial rollback of the legalization initiative Ohio voters approved in 2023.
According to NORML, the bill “imposes new arbitrary limits” and grants an advantage to large, well-capitalized operators. NORML advocates argues that capping dispensary numbers and consolidating market control undermines voter intent when they passed Issue 2 in 2023.
Small hemp retailers—especially convenience stores, smoke shops, and specialty CBD shops—say they will lose the ability to sell many of their top-selling products. As several store owners told the Dayton Daily News, the law could force widespread closures across the state.
Other advocates and groups also expressed concern that strict potency limits and reduced retail access could push some users back toward unregulated sources. According to Signal Cleveland, portions of the bill may also create new legal risks for ordinary cannabis users, especially around transportation and packaging rules.
Online communities reacted strongly as well. One user on a widely shared Reddit thread wrote that SB 56 “narrows what counts as ‘legal’ cannabis,” adding that cannabis purchased legally in nearby states like Michigan “can now be treated as contraband under Ohio law.” Another poster described the changes as “a slap in the face” to Ohio voters.
One vocal advocate said: “I am sickened and enraged by Ohio state government’s new marijuana regulations under SB 56. The only thing it does is push cannabis revenue deeper into the state’s sanctioned marijuana mafia by banning hemp products that are not sold in dispensaries.”
What Happens Next
State regulators will begin issuing guidance and drafting administrative rules to implement the new law. According to early estimates shared in committee hearings, some provisions—particularly those affecting hemp-derived products—may take effect within 90 days, while others will be phased in as rulemaking progresses.
Dispensaries, hemp retailers, and cultivators will need to adapt quickly as the Division of Cannabis Control issues new guidance on product testing, packaging, licensing, and enforcement.
Legal challenges or business-community pushback remain possible, especially from affected hemp retailers and advocacy groups concerned about market contraction. Attorneys following the legislation say the new clarity in statute may actually pave the way for lawsuits. According to several industry analysts quoted in recent coverage, hemp companies are expected to challenge the reclassification of their products and the shift to dispensary-only sales as the rulemaking process unfolds. Observers widely anticipate this litigation to begin soon after the first set of administrative rules is published.
What SB 56 Means for Consumers and the Market
SB 56 marks the beginning of a more heavily regulated cannabis landscape in Ohio. Consumers can expect fewer unregulated hemp-THC options and more standardized, state-tested products. Home-grow remains legal, while adult-use dispensaries will operate under tightened rules.
For local governments, the law promises significant revenue. For many small hemp businesses, however, the transition may be difficult and could reshape the entire retail ecosystem.
MedicateOH will continue tracking these developments closely—especially as new rules are drafted and businesses begin to adjust to Ohio’s new cannabis reality. Subscribe to receive one (just one!) email weekly in your inbox.
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[…] Once enacted, SB 56 would make substantial changes to Ohio’s adult-use cannabis framework and hemp regulations, altering key aspects of the voter-approved program. We’ve outlined those here. […]