Ohio AG Clears Referendum to Reverse Cannabis, Hemp Restrictions

Ohio Attorney General Dave Yost certified petition language Tuesday that would let voters decide whether to repeal recent legislative changes to the state's cannabis and hemp laws, setting the stage for a potential November ballot fight.

The approved referendum targets House Bill 86, which lawmakers passed in December to modify Ohio's voter-approved adult-use cannabis program before it could fully launch. That same legislation imposed new restrictions on the state's hemp industry, including stricter testing requirements and product limitations.

Yost's office confirmed in a letter that the petition's title and summary language meet Ohio's legal standards for ballot measures. The certification doesn't indicate support for the proposal itself—the attorney general noted his approval "should not be construed as a determination" on the measure's merits.

What's at Stake

Ohio voters approved adult-use cannabis legalization in November 2023 through Issue 2, which passed with 57% support. But before dispensaries could begin recreational sales, state legislators stepped in with HB 86 to impose additional restrictions beyond what voters approved.

The bill lowered THC limits for certain products, added new testing requirements, and gave local governments expanded authority to ban cannabis businesses. Industry advocates argued these changes contradicted voter intent and would delay market launch while adding compliance costs.

The same legislation also targeted Ohio's hemp industry, which had operated with relatively light regulation since the 2018 Farm Bill legalized hemp nationwide. HB 86 introduced mandatory testing for contaminants, restricted where hemp products could be sold, and imposed new licensing requirements on manufacturers.

The Path Forward

With Yost's certification secured, petition organizers can now begin collecting signatures to place the referendum on the November 2025 ballot. They'll need to gather valid signatures from 6% of voters who participated in the most recent gubernatorial election—roughly 425,000 signatures—within 90 days.

If the petition qualifies for the ballot and voters approve it, HB 86 would be repealed in its entirety. That would restore the original parameters of Issue 2 and remove the new hemp restrictions lawmakers added.

The Ohio Cannabis Coalition, which led the successful Issue 2 campaign, hasn't publicly announced whether it will back the referendum effort. But hemp industry groups have expressed frustration with the new regulations, arguing they impose unnecessary costs on small businesses.

Industry Response

Cannabis retailers and cultivators have already invested millions preparing for Ohio's recreational market launch, which finally began in August 2024 after months of regulatory delays. Many operators say the additional restrictions in HB 86 have complicated their expansion plans and created confusion about compliance requirements.

Hemp retailers face a different challenge: many small shops selling CBD products and hemp-derived cannabinoids now need new licenses and testing protocols they say will force some out of business. Industry groups estimate the new requirements could cost individual retailers $10,000 to $20,000 annually in compliance expenses.

State lawmakers defended HB 86 as necessary to protect public health and prevent youth access. But critics note that Ohio voters specifically chose to regulate cannabis through the ballot rather than trust the legislature to design the program.

What Happens Next

Petition organizers must now decide whether to launch a signature-gathering campaign. The 90-day window creates a tight timeline, and hiring professional signature collectors typically costs $2 to $4 per signature—potentially $1 million or more for a statewide effort.

If they succeed in reaching the ballot, Ohio voters would face a choice between maintaining legislative changes or returning to the original voter-approved framework. Either way, the referendum represents the latest chapter in Ohio's ongoing debate over cannabis regulation and legislative authority versus direct democracy.

The certification comes as Ohio's adult-use market continues to expand, with sales reaching $400 million in the first six months since recreational dispensaries opened. Industry analysts project the market could reach $3 billion annually within five years, making the regulatory framework a high-stakes question for businesses and consumers alike.

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This article is based on original reporting by ganjapreneur.com.