Organizers Move to Overturn Ohio’s Marijuana Law as SB 56 Raises Red Flags for Dispensaries and Consumers

The group Ohioans for Cannabis Choice has begun collecting signatures for a 2026 ballot referendum that would repeal key provisions of SB 56, which lawmakers passed in late 2025 to reshape Ohio’s marijuana and hemp markets following adult-use legalization.

Supporters of the referendum say the law goes far beyond regulating untested hemp products and instead rewrites the economic rules of Ohio’s cannabis industry — with consequences that will be felt most by dispensaries, small retailers, and consumers.

“This law doesn’t just regulate hemp — it reshapes the entire cannabis retail market, and consumers will feel it at the register.”

What SB 56 Changes in Ohio’s Cannabis Market

SB 56 introduces sweeping changes that alter where cannabis products can be sold, how strong they can be, and how much compliance retailers must absorb.

Key provisions include:

• Restricting intoxicating hemp products (such as delta-8 and hemp-derived THC gummies) to licensed marijuana dispensaries only

• Banning THC beverages from bars, breweries, and general retail

• Capping THC potency for flower and concentrates

• Tightening packaging, testing, and transport rules

• Making it illegal to bring cannabis purchased in other states (including Michigan) into Ohio

Lawmakers argue the changes close regulatory loopholes. Cannabis advocates counter that the law forces low-cost hemp products into a higher-cost retail system, driving up prices.

Why Dispensaries Say Prices Will Rise

Dispensaries operate under far stricter rules than convenience stores or smoke shops.

Licensed cannabis retailers must pay for:

• Mandatory lab testing

• Security systems

• State and local licensing fees

• Inventory tracking

• Higher taxes and compliance costs

When hemp-derived THC products move from unregulated retail into dispensaries, those costs get passed directly to consumers.

How SB 56 Impacts Dispensaries

Dispensary owners say SB 56 creates a paradox: more products to sell, but less pricing flexibility.

Key impacts include:

• Higher operating costs tied to expanded product compliance

• Lower margins as price-sensitive customers push back

• Product mix disruption, especially for high-potency items now capped by law

• Increased competition as former hemp sellers seek dispensary partnerships or licenses

Some dispensaries also worry that higher prices will push customers toward illicit or out-of-state markets, undermining Ohio’s legal framework.

“You can’t move a $10 product into a dispensary and expect it to stay $10.”

Retail Price Comparison

Even after Michigan’s new 24% wholesale cannabis tax, typical retail prices remain lower than projected Ohio prices under SB 56, according to illustrative midpoint estimates.

The Michigan Effect

SB 56 also criminalizes bringing cannabis from other states into Ohio, a direct response to cross-border shopping from Michigan — where prices are often significantly lower.

Industry analysts warn that:

• Ohio prices could rise faster than Michigan’s

• Enforcement challenges may persist

• Consumers near the border may simply shift behavior rather than stop purchasing

Why Advocates Say SB 56 Undermines Voter Intent

Cannabis reform groups argue that Ohio voters approved legalization to:

• Expand access

• Lower prices through competition

• Create a stable, regulated market

They say SB 56 re-centralizes control, raises barriers, and limits product choice — all without voter approval.

What Happens Next

To qualify for the 2026 ballot, organizers must gather nearly 250,000 valid signatures. If successful, Ohio voters would decide whether to repeal SB 56’s most controversial provisions.

If the referendum fails, the law’s full impact — including higher retail prices, tighter margins, and reduced product diversity — will roll out in 2026.