COLUMBUS, OH — Cannabis advocates in Ohio are mobilizing a ballot referendum campaign aimed at overturning Senate Bill 56 (SB 56) — a sweeping legislative package that restricts hemp sales, reverses parts of the state’s voter-approved marijuana law, and tightens penalties on marijuana possession. The campaign would pause implementation of the law if advocates collect enough signatures and win majority support at the ballot box.
Proponents of the referendum, organized under , argue the law undermines the will of voters who legalized recreational marijuana in 2023. They contend SB 56 goes beyond regulating intoxicating hemp and instead reverses key protections and freedoms voters approved at the polls.
What Senate Bill 56 Does
Signed by Gov. Mike DeWine and set to take effect in about 90 days, SB 56 significantly reshapes Ohio’s cannabis and hemp marketplace. It:
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Bans intoxicating hemp sales outside licensed marijuana dispensaries, forcing many hemp-derived THC products out of convenience stores, smoke shops and similar retail outlets.
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Aligns state policy with a recent federal ban on hemp products with more than 0.4 mg total THC per package, which was included in the federal appropriations bill. Ohio’s law implements similar restrictions sooner than the federal timeline.
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Removes some legal protections enshrined in the original 2023 legalization initiative, including anti-discrimination protections for cannabis consumers and prohibitions on penalizing users in employment or family law contexts.
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Introduces new criminal penalties for conduct such as transporting legally purchased cannabis from other states and possession of marijuana outside original packaging.
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Allocates tax revenue from adult-use marijuana to local governments hosting dispensaries — money that was promised under the 2023 legalization amendment but previously unavailable due to statutory gaps.
The law’s broad overhaul reflects lawmakers’ stated intent to protect public health and safety, but it has sparked fierce debate over voter rights, small business survival, and regulatory overreach.
Hemp Industry Outrage and Small Business Pain
One of the most controversial aspects of SB 56 is the restriction of intoxicating hemp products — goods derived from hemp with enough THC to produce effects similar to low-strength marijuana. These products, including gummies, flowers, tinctures and beverages, proliferated after the 2018 federal farm bill removed hemp with trace THC from Schedule I classification.
Under SB 56, such products may only be sold in licensed dispensaries alongside marijuana. This change has decimated the previously booming hemp retail sector, forcing many smoke shops and wellness retailers to close or shift operations.
Small-business owners say the move amounts to a regulatory “one-two punch” — hitting them first with federal THC limits and then with state restrictions that leave them no viable market. Some businesses plan to expand into neighboring states with more permissive policies rather than struggle under Ohio’s new regime.
Why Advocates Are Fighting Back
Advocates want to delay the law’s implementation and bring its provisions before voters. A successful referendum would:
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Pause enforcement of SB 56 until after a statewide vote
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Allow voters to decide whether to keep, modify or repeal the policy
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Reaffirm the 2023 legalization initiative on which many Ohio consumers and businesses invested
Organizers argue that the legislature ignored voter intent — particularly by rolling back legal protections and dramatically altering the hemp market. Whether activists can gather the required signatures in time remains a major logistical hurdle.
How SB 56 Fits Into Larger State and Federal Cannabis Policy Shifts
SB 56 did not emerge in isolation. It builds on a string of policy debates over intoxicating hemp that began with Gov. DeWine’s emergency order banning such products earlier this year — a move later blocked by courts. Lawmakers then sought to give permanent regulatory teeth to those concerns, culminating in the newly signed bill.
The federal government’s recent redefinition of legal hemp to products with less than 0.4 mg total THC has added fuel to state-level efforts to redraw the line between hemp and marijuana, leaving producers and retailers scrambling.
Michigan Impact: Signals for the Cannabis Industry
Even though SB 56 is an Ohio law, its ripples are being felt in neighboring states like Michigan — especially among multi-state cannabis and hemp operators that serve or consider entering the broader Midwest market.
Market Signals and Regulatory Caution
Michigan’s legal cannabis ecosystem is watching SB 56 closely as a cautionary tale: tightening hemp and marijuana regulations in response to public safety or political pressure can dramatically alter business models and retail viability. Michigan producers that sell hemp-derived products beyond dispensaries may reevaluate inventory strategies if similar policy debates intensify in Lansing.
Interstate Trade and Compliance
While Michigan allows legal adult-use cannabis and a thriving hemp market, divergent regulatory regimes across state lines complicate inventory sourcing and distribution planning. SB 56’s restrictions on out-of-state marijuana products — mirroring new criminal penalties in Ohio — highlight the dangers of inconsistent regional policies. Michigan firms that ship or sell across borders will need to monitor regulatory divergence closely.
Small Business Concerns
Michigan hemp shops and small processors that rely on THC-containing hemp products face a stark reminder: legislative shifts can eliminate retail avenues almost overnight. Industry groups in Michigan have emphasized the importance of distinct definitions for intoxicating hemp versus marijuana and clear pathways for compliance — lessons underscored by Ohio’s crackdown.
Policy Lessons for Advocates and Regulators
SB 56’s pushback against voter-backed cannabis policy illustrates the risk that legislature-driven rollbacks can spur activism and legal challenges. Michigan cannabis advocates may view Ohio’s referendum effort as a template for resisting future regulatory rollbacks that diminish voter-approved reforms.
A Referendum That Could Reset Cannabis Policy in Ohio — and Beyond
Ohio’s cannabis policy battle is far from settled. If activists succeed in qualifying a referendum for the ballot, voters may have the opportunity to reject or reshape the law that critics say undermines 2023’s legalization victory. The outcome could reverberate beyond Ohio, influencing cannabis and hemp debates in Michigan and throughout the region.
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