COLUMBUS – A last-minute referendum effort in Ohio is turning into a high-stakes economic fight, with thousands of hemp-related jobs potentially hanging in the balance.

Backers of the repeal effort are racing to block a new state law that would ban intoxicating hemp products unless they are sold through Ohio’s regulated marijuana system. If petitioners collect roughly 248,000 valid signatures across at least 44 counties by the statutory deadline, the law would be suspended and sent to voters in November. If they fall short, the ban takes effect.

At issue are hemp-derived products containing psychoactive cannabinoids such as delta-8 THC and other hemp-derived compounds that gained popularity following passage of the federal 2018 Farm Bill.

How Many Jobs Are At Risk?

Industry-backed economic analyses estimate that Ohio’s hemp-derived cannabinoid market supports approximately 8,100 direct jobs statewide, spanning cultivation, processing, retail and ancillary services.

Breakdown by sector:

Cultivation: ~2,000+ jobs

Processing & Manufacturing: ~2,500+ jobs

Retail & Distribution: ~3,600+ jobs

Retail appears most exposed. Many smoke shops and specialty retailers report intoxicating hemp products represent a significant share of sales. If removed, layoffs could follow quickly.

Some industry advocates argue that when indirect jobs — including logistics, packaging, testing labs and marketing — are included, as many as 20,000 positions could be impacted. That larger figure is an industry estimate rather than a verified state labor statistic, but it underscores the breadth of the ecosystem tied to hemp-derived cannabinoids.

The Referendum Explained

The repeal effort aims to pause Senate Bill 56, which folds intoxicating hemp products into Ohio’s regulated cannabis framework. Supporters of the law argue intoxicating hemp was operating in a regulatory gray zone and should be subject to the same rules, testing and age restrictions as marijuana.

Republican Gov. Mike DeWine has supported tighter controls, saying voters already approved a regulated adult-use marijuana system in 2023.

Opponents counter that the law effectively pushes small hemp operators out of the market in favor of larger, licensed marijuana companies that have the capital and infrastructure to comply with stricter regulations.

If the referendum qualifies:

  • The law is suspended.

  • Voters decide in November.

  • The current hemp marketplace remains intact until that vote.

If it fails:

  • The ban proceeds.

  • Intoxicating hemp products largely disappear from convenience stores and specialty shops.

  • Many small businesses must either pivot into marijuana licensing — an expensive process — or shut down.

Federal Pressure Adds Another Layer

Ohio’s battle does not exist in a vacuum.

Under the Agriculture Improvement Act of 2018,

hemp was legalized federally as long as it contained less than 0.3% delta-9 THC. That opened the door to an explosion of CBD and later intoxicating hemp derivatives.

However, Congress has since moved to tighten definitions and close what many lawmakers describe as loopholes allowing psychoactive hemp products to proliferate outside marijuana regulatory systems.

Pending federal appropriations language narrows allowable THC calculations and restricts synthetic and chemically converted cannabinoids. If implemented fully, many intoxicating hemp products currently sold nationwide could become federally prohibited.

In short:

  • Even if Ohio voters overturn the state ban, federal action could still limit product availability.

  • If Ohio enforces its ban and federal rules tighten further, the hemp-derived intoxicant market could shrink dramatically nationwide.

What Happens Next?

For business owners, the timeline matters.

If the referendum qualifies for the ballot, the market receives temporary stability. If it fails, businesses must make immediate decisions — pursue marijuana licensure, shift to non-intoxicating CBD products, or close.

For workers, particularly in retail and processing, the outcome may determine whether their jobs remain viable in 2026.

This is not simply a cannabis policy fight. It is a labor and small-business issue with measurable employment exposure.

And with signature collectors racing the clock, Ohio voters may soon decide whether thousands of hemp-related jobs survive — or whether the industry contracts sharply under new state and federal rules.