Bill On Ohio Governor’s Desk Will Put Hemp Companies Out Of Business, Owners Say

Ohioans in the intoxicating hemp industry fear a bill heading to Ohio Gov. Mike DeWine’s (R) desk will put them out of business.

Ohio Senate Bill 56 is on its way to DeWine after Ohio Senate Republicans passed the bill Tuesday. The Ohio House passed the bill last month after it went to conference committee.

Ohio’s bill complies with recent federal changes by banning intoxicating hemp products from being sold outside of a licensed marijuana dispensary. If DeWine signs the bill into law before the new year, the ban could take effect as soon as March.

“This bill is going to put businesses like me and families like me out of business,” said Ahmad Khalil, one of the owners of Hippie Hut Smoke Shop, with locations in Ohio and Washington.

“Overnight, we’re going to see tens of thousands of people directly impacted, which will ripple effect into 50,000 of families that are also dependent on this person.”

Khalil has been in the hemp industry for nine years.

“This was my American dream, so to see it get taken away from you, kind of hurts,” he said.

Jason Friedman, owner of Ohio CBD Guy in Cincinnati, said this is extremely frustrating.

“My tentative plan will involve eventually closing my East Walnut Hills location resulting in less hours and likely loss of jobs for some of my employees,” he said.

Instead of a ban, Friedman wants regulations for the hemp industry such as age-gating, packaging restrictions, and testing requirements.

“For the state to say that they are changing their stance to banning from regulating because of what the federal government has done in banning intoxicating hemp in the recent spending bill, makes no sense because marijuana has been illegal federally the whole time,” he said.

Mark Fashian, president of hemp product wholesaler Midwest Analytical Solutions in Delaware, Ohio, said this will put him, and hundreds of others out of business, if this becomes law.

He works with more than 500 stores around Ohio that sell intoxicating hemp products.

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Ohio Lawmakers Pass Bill To Roll Back Voter-Approved Marijuana Law And Impose Hemp Restrictions, Sending It To Governor

The Ohio Senate has voted to concur with a House-amended bill to scale back the state’s voter-approved marijuana law and ban the sale of hemp products that fall outside of a recently revised federal definition for the crop unless they’re sold at licensed cannabis dispensaries.

The measure from Sen. Stephen Huffman (R) was substantively revised in the House last month, but the originating chamber voted 22-7 on Tuesday to accept those changes and send the legislation to Gov. Mike DeWine’s (R) desk.

The legislation now pending the governor’s signature would recriminalize certain marijuana activity that was legalized under a ballot initiative that passed in 2023  as well as remove anti-discrimination protections for cannabis consumers that were enacted under that law.

After the House revised the initial Senate-passed legislation, removing certain controversial provisions, the Senate quickly rejected those changes in October. That led to the appointment of a bicameral conference committee to resolve outstanding differences between the chambers. That panel then approved a negotiated form of the bill, which passed the House last month and has now cleared the Senate.

To advocates’ disappointment, the final version of the measure now heading to the governor’s desk would eliminate language in current statute providing anti-discrimination protections for people who lawfully use cannabis. That includes protections meant to prevent adverse actions in the context of child custody rights, the ability to qualify for organ transplants and professional licensing.

It would also recriminalize possessing marijuana from any source that isn’t a state-licensed dispensary in Ohio or from a legal homegrow. As such, people could be charged with a crime for carrying cannabis they bought at a legal retailer in neighboring Michigan.

Additionally, it would ban smoking cannabis at outdoor public locations such as bar patios—and it would allow landlords to prohibit vaping marijuana at rented homes. Violating that latter policy, even if it involves vaping in a person’s own backyard at a rental home, would constitute a misdemeanor offense.

The legislation would also replace what had been a proposed regulatory framework for intoxicating hemp that the House had approved with a broad prohibition on sales outside marijuana dispensaries following a recent federal move to recriminalize such products.

“In short, this bill leaves the crux of Issue 2 and marijuana access intact, while providing for several important public safety concerns and also regulations that protect Ohio children,” Huffman argued on the Senate floor ahead of Tuesday’s vote.

Sen. Bill DeMora (D), however, said the legislation undermines the will of voters.

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Amid Raging Drug War Trump’s Hemp Ban Will Further Empower Cartels

During his first term, the Trump Administration’s legalization of hemp in the 2018 Farm Bill was seen as a fantastic win in the crusade to legalize cannabis across the country. Thanks to the bill, not only was hemp cultivation legalized for industrial use, but an additional loophole also paved the way for the legalization of a psychoactive cannabinoid known as Delta-8-THC, which has received high praise for its numerous medicinal uses without the accompanying intensity that comes with a typical cannabis high.

According to the National Cancer Institute, delta-8-THC can be defined as:

“An analogue of tetrahydrocannabinol (THC) with antiemetic, anxiolytic, appetite-stimulating, analgesic, and neuroprotective properties. [Delta-8-THC] binds to the cannabinoid G-protein coupled receptor CB1, located in the central nervous system…This agent exhibits a lower psychotropic potency than [delta-9-THC], the primary form of THC found in cannabis.”

Hemp cultivation has a long history in the United States marred by restrictive prohibition at the behest of industrial tycoons of the early 20th century who were threatened by hemp’s capability to replace the petrochemical industry due to its potential to create more effective, cleaner, and safer alternatives for thousands of products; capable of replacing oil, plastic, lumber, paper, and cotton.

The passage of the 2018 bill presented a promising future for the cultivation of hemp in the United States to potentially revolutionize domestic infrastructure, in addition to serving as a victory for advocates of personal freedom. However, new legislation threatens to change all of that.

The recently passed federal spending bill includes a provision intended to close the aforementioned loophole, banning hemp derived THC products in a move that CNBC notes threatens a growing 28 billion dollar industry.

“What this ban is going to do is it’s going to force all those little players right now into the illegal market. Companies have got way too much money invested in this and the demand is still there and growing. They [companies] aren’t just going to go away, they’re just going to go into the illicit market and put more people at risk.” Said Boris Jordan, CEO of cannabis company Curaleaf.

The move, spearheaded by Kentucky senator Mitch McConnell, who led the charge to pass the original 2018 bill and said to be his final major act in Congress before his retirement next year has been sharply criticized by colleagues such as senator Rand Paul, who worked with McConnell on the original legislation.

“This is the most thoughtless, ignorant proposal to an industry that I’ve seen in a long, long time,” Paul said after the ban was passed. 

This move represents the latest ridiculous folly in the failed war on drugs, as Congress attempts to legislate morality over the rights of individuals self ownership, prohibition will only continue to do what it has always done and fuel the growth of illicit market industry.

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It’s ‘Unclear’ How Feds Will Enforce Hemp THC Product Ban, Congressional Researchers Say, Citing Limited FDA And DEA Resources

Congressional researchers say it “remains unclear” how the federal government might enforce a newly enacted law that takes effect next year banning hemp THC products—flagging concerns about a potential lack of resources on the part of the Food and Drug Administration (FDA) and Drug Enforcement Administration (DEA).

After President Donald Trump signed appropriations legislation late last month that included language that effectively “reimposes” hemp criminalization, the Congress Research Service (CRS) published an analysis about the policy change on Wednesday.

“While the change to the hemp definition will seemingly alter the legal status of many hemp products currently available on the market, it remains unclear if and how federal law enforcement will enforce the new prohibitions when the new definition goes into effect,” the researchers said.

Part of the uncertainty around hemp is related to the federal approach to marijuana, which has been legalized in some form in the vast majority of states but remains federally illegal as a Schedule I drug under the Controlled Substances Act (CSA).

“In marijuana’s case, the federal response has largely been to allow states to implement their own marijuana laws despite the fact that state-regulated activities may violate the [Controlled Substances Act],” CRS said. “If intoxicating hemp products persist on the market after the change to their legal status, it is possible they could be subject to the same criminal and collateral issues as marijuana.”

The analysis added, however, that it “remains to be seen” whether FDA will “pursue additional options to remove these [hemp] items from the market.

FDA and the Drug Enforcement Administration “may lack the resources to broadly enforce the laws prohibiting intoxicating hemp products on the market,” it said, adding that congressional lawmakers may also “choose to exercise oversight over federal enforcement priorities regarding state-regulated cannabis activities.”

FDA and DEA, “in coordination with the Department of Justice, have a range of civil and criminal remedies they may use in efforts to exercise control over these activities,” the report says.

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Chicago Council Committee to Consider Ordinance Restricting Hemp THC Sales to Licensed Dispensaries

On Wednesday, a Chicago council committee will discuss and potentially vote on an ordinance that would prohibit all non-dispensary businesses from selling hemp-derived cannabinoid products, limiting sales exclusively to state-licensed cannabis stores.

The measure, sponsored by Alderman Marty Quinn, would repeal the city’s existing cannabinoid ordinance and replace it with a stricter framework. The proposal creates a broad definition of “hemp-derived cannabinoid product,” covering any intermediate or final product made from hemp that contains cannabinoids of any kind, whether natural, synthetic, or manufactured. It includes items intended for inhalation, ingestion, or topical use. It also defines “concealment” as knowingly hiding or preventing the discovery of these products.

Under the proposed language, no licensed business—except for state-licensed cannabis establishments—would be allowed to possess, sell, give away, barter, exchange, or furnish any hemp-derived cannabinoid product on their premises. The ordinance also bans any act of concealment involving these products. Violations would carry fines between $2,000 and $5,000 per offense, with each day the violation continues counted as a separate offense. Repeated violations could trigger license suspension or revocation.

The Illinois Healthy Alternatives Association announced its opposition ahead of Wednesday’s hearing, arguing that the measure goes too far and would disrupt businesses offering non-intoxicating hemp products.

“We all recognize the importance of implementing responsible regulations to prevent these products from reaching minors,” said Craig Katz, President of the Board for the Illinois Healthy Alternatives Association. “Our members are actively collaborating at both the state and federal levels to create a regulatory framework that safeguards minors and ensures product safety. We can achieve these objectives while still enabling our members to offer their customers the healthy alternatives they require. We are eager to partner with the City Council to find effective solutions.”

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They Built a Hemp Business in Good Faith but Washington Is About To Crush It

As the Senate prepared to vote on the funding bill to reopen the federal government earlier this month, Sen. Rand Paul (R–Ky.) warned that passing the legislation would “regulate the hemp industry to death.” Buried deep inside the continuing resolution was a provision that would completely reverse nearly seven years of industry progress—and potentially wipe out small hemp-based businesses.

In 2019, after the 2018 Farm Bill removed hemp from the Controlled Substances Act, cousins Jim Higdon and Eric Zipperle founded Cornbread Hemp. The Kentucky-based company manufactures and sells hemp-related products directly to consumers nationwide, and it stands out in a highly competitive market thanks to the quality of its organic hemp.

Cornbread pioneered a flower-only production model that uses only cannabis flowers in extraction, yielding higher-quality products. It also enforces a strict set of growing standards.

“We’re farming land that has not had pesticides on it for three years—verified. We’re using non-GMO seeds, no pesticides, and no synthetic fertilizers,” said Higdon. “The only fertilizer input we use is chicken litter…from a certified organic chicken farm.”

That quality has earned Cornbread a loyal and growing customer base, 60 percent of whom are over 66 years old and rely on these products to relieve chronic pain.

It is estimated that the number of licensed growers rose from about 3,500 in 2018 to over 21,000 in 2020. The rush subsided, and by 2021, the market steadied and licenses fell to about 9,700. Even with that correction, the economic impact of industrial hemp is undeniable. Industry estimates suggest the hemp market supports hundreds of thousands of jobs, with one model putting the number at roughly 325,000 workers in farming, biomass processing, product manufacturing, distribution, and retail nationwide. According to Department of Agriculture data, the value of U.S. industrial hemp production was about $824 million in 2021 and approximately $445 million in 2024.

And yet, even before the most recent move by Congress, many small companies, including Cornbread, have been hit by a wave of new state regulations threatening their survival. In 2025, Tennessee passed a law placing the hemp industry under the jurisdiction of the state’s Alcoholic Beverage Commission. The state’s longstanding three-tier system for policing liquor sales now extends to hemp products as well.

Beginning in January 2026, out-of-state hemp companies, such as Cornbread, wanting to do business in Tennessee must first sell their product to a Tennessee-licensed wholesaler, which must then sell it to a Tennessee retail shop. Only then can customers visit the physical store and purchase the product.

While Cornbread can set up its own wholesaler and retail facilities in Tennessee, doing so would be impractical and prohibitively expensive.

Beyond its practical business burdens, Tennessee’s law infringes on Cornbread and other companies’ fundamental right to earn a living. The law also violates the U.S. Constitution’s Commerce Clause by discriminating against out-of-state businesses and shielding in-state interests from legitimate competition. 

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Tennessee Officials Reach Agreement With Hemp Industry To Temporarily Allow THCA Sales

Tennessee’s hemp industry has reached an agreement with state agencies, dismissing a lawsuit and enabling some businesses to keep selling hemp-derived products such as THCA for a short time after new restrictions take effect.

The Tennessee Healthy Alternatives Association announced it entered an order with the state Agriculture and Revenue Departments allowing businesses with licenses issued before December 31, 2025 to continue using a 2023 regulatory framework until their licenses expire June 30, 2026. Such a move allows stores to keep selling many products that will be banned after a new law takes effect January 1.

Because of the agreement, a pending declaratory judgment against the Agriculture and Revenue departments has been dismissed, the association said in a statement.

Part of the new law adopted by the legislature this year transfers regulatory authority over hemp products and beverages from the state Agriculture Department to the Tennessee Alcoholic Beverage Commission.

The new law also bans the hemp derivative, THCA, which converts into delta-9 THC–an illegal substance in Tennessee in greater than trace amounts–when smoked or heated. The synthetic cannabinoid, THCP, is also banned under the law.

Hemp industry representative Clint Palmer, who testified before lawmakers this year, said about 75 percent of the market will be considered illegal under the new ban, which includes THCA flower and vapes. The new law will push consumers to synthetic cannabinoids, he said.

“If you ask your typical consumer, they’re gonna say gross,” Palmer said.

Palmer told lawmakers early this year hemp businesses will be forced to shut down despite spending millions of dollars to comply with state regulations.

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Rand Paul Slams Alcohol And Marijuana Interests Over Federal Hemp Ban, Announcing He’ll File A Bill To Reverse It Next Week

A GOP senator says he’ll be filing a bill next week to protect the hemp industry from an impending federal ban on most cannabinoid products. He’s also calling out alcohol and marijuana interests for allegedly “join[ing] forces” to lobby in favor of the prohibitionist policy change, which will restrict access to a plant and its derivatives that are often used therapeutically—including by members of his Senate colleagues’ families.

In an interview on “The Chris Cuomo Project” podcast that was posted on Thursday, Sen. Rand Paul (R-KY) previewed his plan to push back against the hemp ban that was included in major spending legislation President Donald Trump signed into law last week.

Paul has been sounding the alarm for weeks about the potential consequences of the hemp recriminalization provisions, which he says would cause mass job losses and a $25 billion industry to be “wiped out.”

As he previewed during a separate webinar organized by the Kentucky Hemp Association on Wednesday, the senator told Cuomo that he intends to introduce legislation next week that would make it so state policy regulating hemp cannabinoid products—with basic safeguards in place to prevent youth access, for example—”supersedes the federal law.”

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Nancy Mace Circulates Bill To Block Hemp THC Ban That Trump Signed Into Law

A GOP congresswoman is circulating a bill that would stop the implementation of a federal hemp THC product ban that’s part of spending legislation signed by President Donald Trump last week. And she’s pledging to spend the next year fighting to prevent the implementation of the ban.

The draft bill from Rep. Nancy Mace (R-SC)—who has also separately championed legislation to legalize marijuana—seeks to strike a section of the recently enacted appropriations package that hemp stakeholders say would effective eradicate the market by imposing severe restrictions on the types of consumable cannabinoid products that could be legally sold.

Hemp businesses and industry groups have warned about the potential ramifications of the ban, but despite his support for states’ rights for cannabis and a recent social media post touting the benefits of CBD, Trump signed the underlying spending measure into law without acknowledging the hemp provisions.

Mace’s bill, titled “The American Hemp Protection Act of 2025,” would prevent that ban from taking effect, which would happen around this time next year, but it wouldn’t on its own accomplish what many advocates have pled for: Regulations.

Rather than outright prohibit consumable hemp products with small amounts of THC, the industry has generally pushed for a regulatory model that addresses issues with intoxicating cannabinoids that have become widely available since the crop and its derivatives were federally legalized under the 2018 Farm Bill that Trump signed during his first term.

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Pets Will ‘Suffer Needlessly’ If Federal Hemp Ban Takes Effect And Limits CBD Access, Veterinarian Says

The federal hemp ban that was included in a spending bill President Donald Trump signed last week could inadvertently hurt a patient demographic that isn’t usually associated with cannabis: Dogs, cats and other pets who’ve come to rely on cannabinoids as part of their veterinary medical care.

As certain GOP lawmakers in Congress pressed for a policy change to prevent the sale of consumable hemp products, the narrative often revolved around the idea that a strict ban would close a “loophole” in the 2018 Farm Bill that legalized the crop, leading to the expansion of an often unregulated market for intoxicating cannabinoids.

But while there’s broad consensus that gas station THC vapes and copycat hemp edibles appealing to youth should be addressed, stakeholders and advocates say that narrative paints an incomplete picture, as the language included in appropriations legislation that’s set to take effect next year threatens to upend legitimate enterprises as well—including those that provide access to CBD for pets.

Sen. Mitch McConnell (R-KY) attempted to distance himself from that argument before Congress passed the bill with the hemp provisions. He said that the Farm Bill and hemp legalization provisions he championed were always meant to be about industrial uses, and CBD products would be spared even with a ban on intoxicating elements of the plant.

The way the law is written, however, will permit such limited concentrations of THC that most growers and manufacturers say the idea of a CBD carve-out is infeasible. And for companies marketing such non-intoxicating products, that could spell doom—or at least force them to take on the significant added cost of extracting CBD isolates so as not to run afoul of the law.

Tim Shu, founder and CEO of the company VetCBD, tells Marijuana Moment that the passage of the appropriations legislation is cause for concern for animal companions, many of which have found relief from conditions such as arthritis, epilepsy, pain and other health conditions with the help of CBD.

Just like the 0.3 percent THC by dry weight limit that currently defines hemp, the more restrictive THC limit prescribed under the newly enacted law is “arbitrary,” Shu said. He also stressed the importance of the “entourage effect” for cannabis that makes it so having the plant’s natural ingredients—THC, CBD, terpenes and other compounds—work together often enhances their therapeutic efficacy.

“If the rule stays unchanged, then essentially anyone that’s producing CBD products from hemp are going to have to use CBD isolate,” he said. “And the problem with that is that we know from increasing evidence that the entourage effect does have benefits—it does appear to be a real thing.”

“This is something that people tend to forget about. Everyone’s thinking about intoxicating hemp properties, right? The delta-9, delta-8 THC stuff that you can find at gas stations. But the reality is that there are a lot of people and animals that rely on full-spectrum CBD products from hemp to not suffer,” Shu said. “And as usual, the neediest suffer the most.”

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