Ohio Senate Passes Bill to Limit Hemp Product Sales to Licensed Dispensaries, Liquor Stores

The Ohio Senate unanimously passed legislation on April 30 that would remove intoxicating hemp products from corner stores and require that they be sold exclusively in licensed cannabis dispensaries, with some exceptions for liquor establishments.

The legislation, Senate Bill 86, comes as Gov. Mike DeWine and Ohio’s lawmakers in Columbus continue to warn about the dangers of unregulated and untested hemp-derived THC products—such as delta-8 THC gummies—that are often sold in gas stations, vape or smoke shops, and convenience stores throughout the state.

Under S.B. 86, sponsored by Sen. Steve Huffman, R-Tipp City, intoxicating hemp products are defined as containing more than 0.5 milligrams per serving or 2 milligrams per package of delta-9 THC—a naturally occurring compound in cannabis and hemp—or any amount of a synthetic THC, such as delta-8 THC.

In addition, any product containing more than 0.5 milligrams per package of “total non-delta-9 THC” would be considered an intoxicating hemp product—an effort by lawmakers to close what some refer to as a THC acid (THCA) loophole.

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Intoxicating hemp products that can be ingested, inhaled, snorted, sniffed or used sublingually would be restricted to licensed cannabis dispensaries exclusively under the bill.

Meanwhile, topicals and “drinkable cannabinoid products” (aka infused beverages) could be sold by retailers with state liquor licenses—in addition to licensed dispensaries. The legislation defines a drinkable cannabinoid product as containing no more than 0.3% THC and no more than:

• 0.42 milligrams of THC per fluid ounce
• 0.5 milligrams of delta-9 THC per serving
• 12 fluid ounces per serving
• 2 milligrams of delta-9 THC per container
• 48 total fluid ounces in all containers included in a package
• 4 servings per container

These infused beverage products could not contain any amount of synthetic THC, such as delta-8, under the bill.

“Due to the lack of regulation, the intoxicating hemp industry has been able to confuse Ohio consumers and law enforcement by marking themselves as dispensaries with recreational marijuana,” Huffman said before a 33-0 floor vote to pass his legislation on Wednesday.

Huffman pointed to a VIP Smoke Shop that law enforcement officials raided in March in Norwood, located just outside of Cincinnati, after the Warren County Drug Task Force executed a search warrant. The shop’s co-owners, brothers Wael Sharaydeh and Ismail Sharida, were indicted on 60 criminal counts in October 2024, WKRC reported.

“The raid was part of an ongoing investigation involving the same two brothers who owned more than a hundred VIP Smoke Shops that were charged with drug trafficking in Butler County,” Huffman said. “These types of places are becoming more and more prevalent, causing consumers to think they’re buying well-tested, well-regulated marijuana that supports Ohio’s economy when they’re not.”

To suppress the illicit market, the senator said his bill prohibits hemp products that are not sold in licensed dispensaries.

S.B. 86 would also establish a 10% tax on intoxicating hemp products to create parity with Ohio’s 10% excise tax on adult-use cannabis sales. In addition, it would establish testing lab standards, packaging and labeling requirements, and age-verification regulations. The bill also would levy an excise tax on a manufacturer’s sale of an infused beverage to distributors or retailers equal to $3.50 for each gallon sold.

Sen. Shane Wilkin, R-Hillsboro, the bill’s other primary sponsor, said S.B. 86 aims to close loopholes that have allowed intoxicating hemp products to land in the hands of Ohio’s youth. Wilkin explained during this week’s floor session that unregulated intoxicating hemp products are sometimes packaged to resemble popular cereal or candy brands that have cartoon characters attractive to kids.  

“It is marketed to kids,” Wilkin said. “They’re not tested. We don’t know what’s in them. And, unfortunately, they are without question ending up in our kids’ hands. And that’s not right.”

Sen. Bill DeMora, D-Columbus, voted in favor of passing S.B. 86 during April 30’s floor session, explaining that he supports the common-sense public safety measures included in the bill. However, he said he hopes the Ohio House amends the bill.

Specifically, DeMora said he has reservations with the legislation’s “strict” limits on infused beverages, which represent one of the fast-growing product segments in the industry.

“Many people have invested in these growing industries, and I think our bill is a little too regulatory when it comes to these drinks,” DeMora said. “I have several constituents in my district that are in these businesses who were worried that their businesses were going to be put out completely by what these regulations were going to do.”

The legislation also establishes that selling an intoxicating hemp product or a drinkable cannabinoid product in violation of the regulatory standards outlined in the bill would constitute a first-degree misdemeanor on the first offense and a fifth-degree felony on each subsequent offense.