Ohio Cannabis Groups Clash Over Referendum to Block Hemp Restrictions

A coalition called Ohioans for Cannabis Choice has received approval to begin gathering signatures for a referendum that would block recent legislative changes to Ohio's recreational marijuana program and ban on intoxicating hemp products.

The referendum effort has exposed deep divisions within Ohio's cannabis industry. On one side, advocates argue the new restrictions protect consumers and licensed operators. On the other, critics say the law unfairly targets hemp businesses and undermines voter intent.

"The referendum effort is about putting profits from unregulated intoxicating hemp and gas station weed sales above people," said opponents of the signature drive, according to reporting by Megan Henry of the Ohio Capital Journal.

What Changed

The contested legislation modifies Issue 2, the voter-approved recreational marijuana initiative that passed in November 2023. Among other changes, the new law bans intoxicating hemp products like delta-8 THC, which have proliferated in gas stations and smoke shops across Ohio.

Lawmakers also adjusted regulations for the state's licensed cannabis market, including provisions that industry groups say deviate from what voters approved. The changes have sparked debate about legislative authority to amend citizen-initiated laws.

Hemp retailers argue the restrictions will devastate their businesses, many of which invested heavily in product lines containing delta-8 and other hemp-derived cannabinoids. These products existed in a legal gray area—technically legal under federal hemp law but operating outside Ohio's regulated cannabis framework.

The Divide

Licensed cannabis operators largely support the new restrictions, viewing unregulated hemp products as unfair competition. These businesses have invested millions in compliance, testing, and licensing fees that hemp retailers avoid.

But hemp industry representatives counter that their products serve consumers who can't access or afford licensed dispensaries. They also note that many hemp businesses are small, locally-owned operations that predate Ohio's recreational market.

The referendum would need roughly 124,000 valid signatures from registered Ohio voters to qualify for the ballot. Organizers have 90 days from approval to collect those signatures, setting up a tight timeline for what promises to be a contentious campaign.

What's Next

If the referendum qualifies, Ohio voters would decide whether to uphold or reject the legislative changes. A successful referendum would restore the original language of Issue 2 and potentially revive the intoxicating hemp market.

The outcome could have implications beyond Ohio. Several states are grappling with similar questions about how to regulate hemp-derived intoxicants that emerged following the 2018 Farm Bill's legalization of hemp.

Meanwhile, Ohio's Division of Cannabis Control continues implementing the state's recreational program, with adult-use sales having launched in August 2024. The regulatory uncertainty adds another layer of complexity for businesses trying to navigate Ohio's evolving cannabis landscape.

Industry observers will be watching closely to see whether signature gatherers can mobilize enough support—and whether Ohio voters ultimately side with licensed operators or the hemp industry.

This article is based on original reporting by www.marijuanamoment.net.