What’s Going On with Cannabis Laws in Ohio? Your Summer Update

Ohio’s cannabis community got some welcome news as lawmakers broke for summer recess, hitting pause on some major proposed changes while quietly slipping one into the state budget. If you’ve been following the ongoing fight to preserve details of the voter-approved law, here’s what you need to know—and what we’re watching this fall:

SB 56: On Hold (For Now)

Senate Bill 56, the proposed overhaul to Issue 2 (the voter-passed adult-use cannabis law), has been officially tabled until lawmakers return in the fall. The bill would cap THC levels in extracts, limit dispensary licenses, and impose penalties for public use. It’s sparked fierce backlash, especially from patients, industry, and advocacy organizations.

The bill was pulled from the House Judiciary Committee’s schedule twice in June before the plug was officially pulled last week.

“We are going to push pause,” said Rep. Brian Stewart (R-Ashville) in an interview with Ohio Capital Journal. “We’re going to take the summer and come back and potentially take another crack at it.”

That means there’s still time to make your voice heard. Many worry that SB 56, as written, doesn’t reflect the will of voters or the spirit of equity built into the original ballot measure.

Host Community Taxes Under Threat

Both SB 56 and HB 160 proposed eliminating or decreasing the tax revenue that communities would receive for hosting at least two dispensaries in their towns. Gary Daniels of the ACLU of Ohio noted that “SB 56… eviscerates the Cannabis Social Equity and Jobs Program.”

Communities including Anderson Township lifted moratoriums to welcome new dispensaries to town in anticipation of getting some of the tax dollars. Anderson trustee Lexi Lausten testified earlier this year during HB 160’s hearings that the change would negatively impact their township and other municipalites that chose in 2023 to welcome new dispensaries amid the promise of receiving back 36 percent of tax revenue.

In a surprise to many, Ohio’s new two-year state budget that passed Wednesday included a provision to make sure 36 percent of the state’s cannabis excise tax revenue stays in the communities that host dispensaries. That’s a big deal for towns that have welcomed cannabis businesses and were hoping to use that revenue to improve services or invest in local wellness programs.

“We’re extremely excited to see the legislators listen … and follow through with what the people voted for back in November,” said Austintown Trustee Robert Santos in a statement to WFMJ.

Still, there’s a bit of a wait involved. Lawmakers included the framework in the budget, but a separate bill needs to pass this fall before those funds can actually start flowing.

“The soonest the House bill could pass is October, so the earliest host communities can expect to see those funds … in the fall of 2025,” explained Rep. Tex Fischer.

Equity Still in the Crosshairs

While funding for the Social Equity & Jobs Program remains intact in the budget, advocates remain concerned that SB 56 or other legislation could unravel those gains in the fall, especially since some of its original language aimed to roll back liberties such as home grow and allowing of sharing.

What does that mean for cannabis consumers and caregivers? It means this fall’s legislative session could be a turning point. Ohio’s lawmakers are officially out of session for the summer, but cannabis advocates aren’t taking a break. Between now and fall:

• Expect new details around SB 56. Will lawmakers rewrite the bill or scrap it altogether?
• Watch for movement on the excise tax bill. Communities like Austintown and Anderson Township are eager to see those funds land in their budgets.
• Keep fighting for equity. Groups like the Cannabis Consumers Coaltion are urging supporters to stay loud, stay engaged, and demand policy that reflects justice.

In the meantime, MedicateOH will continue to monitor, report, and echo the voices of patients, caregivers, advocates, and small businesses shaping Ohio’s cannabis story. Want to get involved? Reach out to volunteer your time or talents.

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