In a significant legislative pivot, Ohio is moving to regulate and allow hemp-derived THC beverages and other “intoxicating hemp” products under a newly emerging framework. While still in flux, these law changes mark a major step for the state’s cannabis and hemp sectors, and carry implications for consumers, businesses and regulators alike.

Timeline: How We Got Here

• November 7, 2023: Ohio voters approved Issue 2 legalizing adult-use cannabis for those 21 and older.
• August 6, 2024: Licensed adult-use cannabis sales officially began in Ohio.
• October, 2025: Ohio Governor Mike DeWine issued an executive order declaring a “public-health emergency” over intoxicating hemp products—chiefly hemp-derived THC products such as delta-8, delta-9 outside traditional cannabis channels. READ MORE: MedicateOhio
• October 23, 2025: The Ohio House passed Senate Bill 56 (in its 18th version), which explicitly regulates intoxicating hemp products and allows for hemp-THC beverages under defined limits. READ MORE: Ohio Capital Journal
• October 27, 2025: A Franklin County judge extended a temporary restraining order blocking the governor’s ban on “intoxicating hemp” sales until December 2, meaning the products can continue to be sold for now. READ MORE: The Statehouse News Bureau

What’s the Deal with Hemp-THC Beverages?

Under the proposed legislation (SB 56), Ohio would create a regulated pathway for hemp-derived beverages and other intoxicating hemp products. Key provisions include:

• Beverages made from hemp-derived THC would be allowed:
  • Up to 5 mg THC per drink for on-site consumption (e.g., in bars or restaurants).
  • Up to 10 mg THC per container for off-site purchase in retail stores. READ MORE: MJBizDaily
• The bill defines “intoxicating hemp product” as a product containing more than 0.5 mg delta-9 THC per serving, or more than 2 mg delta-9 THC per package, or more than 0.5 mg total non-delta-9 THC per package.
• Only licensed hemp dispensaries would be permitted to sell these products to adults 21+, subject to testing, packaging, advertising and tax (10% tax on intoxicating hemp sales).
• The legislation would limit the number of active hemp dispensary licenses to 400 statewide, with grandfathering provisions for certain existing operations.

Why This Matters for Ohio

Industry Opportunities

The new framework opens fresh revenue streams. Hemp-derived THC beverages are a fast-emerging category nationally, and Ohio would position itself to tap that market directly rather than leaving it to unregulated storefronts. With adult-use cannabis established, the beverage category adds a complementary, lower-threshold consumption method.

Consumer Access & Diversification

For consumers, legal access to regulated THC beverages means alternative consumption methods beyond flower, edibles and vaping. Lower-dose beverages may appeal to new users or those seeking discreet usage with manageable effects.

Regulatory Clarity & Safety

The bill brings order to what had become a largely unregulated “gray market” for intoxicating hemp. By defining limits, licensing sellers, and taxing products, the state aims to enhance public safety—especially regarding youth access, labeling and product potency. As one report noted: the quick availability of high-THC hemp products raised concerns about child exposures.

State Revenue

Imposing a 10% tax on intoxicating hemp products and licensing requirements adds to the state’s fiscal toolkit. While the adult-use cannabis tax regime is established, these changes help expand the regulatory base to another consumption category.

What’s the Catch?

Legal & Regulatory Hurdles

The framework is not yet law. SB 56 still needs Senate concurrence and the governor’s signature, then rule-making will take time. Meanwhile, the governor’s temporary ban (now blocked) and litigation add uncertainty.

Industry Disruption

Some hemp businesses fear the changes will squeeze them. One critic put it bluntly: “This bill effectively kills large swaths of Ohio’s hemp industry.” MORE HERE: Ohio Capital Journal Small CBD shops and gas-station retailers may find the new licensing, location and product restrictions expensive or untenable.

Federal Context & Interplay

While the 2018 Farm Bill legalized hemp (≤ 0.3% delta-9 THC), many states are now contending with newer “intoxicating hemp” cannabinoids. Ohio’s push mirrors national efforts to clarify what constitutes hemp vs. regulated cannabis.

Market Transition

Retailers will need to adjust: re-formulate products, obtain new licenses, align packaging with child-safe standards. Consumers may see availability change, product offerings shift, and price fluctuations during the transition.

What Happens Next for Ohio?

• Senate Consideration: SB 56 must return to the Ohio Senate for concurrence. Changes could still be made, and passage is not guaranteed in its current form. READ MORE: The Statehouse News Bureau
• Rule-Making: Once law is passed, agencies (such as the Division of Cannabis Control in the Ohio Department of Commerce and the Division of Liquor Control for beverages) must develop regulations—testing, packaging, signage, age verification.
• Business Planning: Hemp producers, beverage manufacturers, dispensary operators and gas-station retailers must assess whether to pursue licensing, adjust product lines, or exit the intoxicating-hemp category.
• Consumer Education: With new product forms and dosage limits, the state will likely need to educate adults about responsible use, effects of THC beverages, and safe storage (especially to protect minors).
• Monitoring & Enforcement: Regulators will need to ensure only licensed sellers distribute intoxicating hemp beverages and that products meet potency and packaging standards—especially since a key concern driving reform was youth access to unregulated gummies and vapes.

Bottom Line

For the Buckeye State, regulating hemp-derived THC beverages is more than a niche policy move—it’s a strategic alignment of the hemp market with the state’s broader adult-use and cannabis regulatory regime. By carving out clear rules for beverages, licensing sellers and imposing dosage limits, Ohio is positioning itself to capture growth, protect public health and bring order to a previously opaque market.

At the same time, the pathway is paved with challenges: legislative approval is still pending, industry adaptation may be disruptive, and federal-state interplay remains complex. But if Ohio executes this shift well, the state could become a strong model for how to integrate hemp-derived THC products into a regulated framework—balancing consumer access, business growth and safety.