Cannabis operator challenges are bountiful. Heavy taxation, overregulation, and complicated marketing are a few, but one problem remains glaring. Many licensed weed dispensaries and brands are concerned about hemp THC products stealing customers from the adult-use market. There is no concrete evidence, but seventeen states have passed or introduced bills to bar the sale and possession of these technically Farm Bill-compliant products.
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Senate Bill 326 is an emergency measure sponsored by Ohio State Senator Steve Huffman to get hemp THC out of the Buckeye State.
“This act is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, and safety,” the bill reads. “The reason for such necessity is to protect Ohioans, especially Ohio’s youth, from untested, unregulated dangerous tetrahydrocannabinol products.”
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Ohio legalized cannabis in 2023, with recreational sales following in August 2024. Sales have topped over $140M in that time. This bill seeks to keep weed dollars in the licensed space by empowering the Ohio Investigative Unit to shut down the intoxicating hemp space.
As it’s currently written, under the proposed law the Ohio Department of Commerce could impose fines against sellers. The first infraction for selling the illicit products starts at $10,000 and rises as high as $50,000 for repeat offenders. The first violation would be a misdemeanor, but each following hemp THC sales infraction would incur a fifth-degree felony.
This bill joins two others in the state seeking to ban this type of hemp product. S.B. 278 would ban the sale of these gummies, drinks, vapes, and flower to those under 21. Stores would also require them to be kept behind the counter. House Bill 642 seeks to create a barrier, proposing the Ohio Director of Agriculture ban the purchase of intoxicating THC products.
Ohio is not the only state taking action against this market. New Jersey is also in its crackdown era.
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New Jersey issues hemp THC warcry
New Jersey is slowly bringing its adult-use industry online. This week, the Garden State announced the crackdown against hemp THC is set to begin. Governor Phil Murphy signed a bill into law in September that grants the New Jersey Cannabis Regulatory Commission (CRC) authority over the market. However, it has remained largely unenforced before now.
The bill was packaged as a way to bar consumers under age 21 from buying these gummies and such at corner stores and gas stations. Now, the CRC announced that it will begin enforcing other aspects of the law, seeking to stop all sales of “non-naturally derived” compounds. First-time offenses for selling hemp THC products will result in a $100 fine that goes up to $10,000 for those who continue after that.
These states filed or began enforcing hemp THC bills seeking to keep the space from infringing on licensed cannabis operators. While the New Jersey crackdown is underway, the Ohio attempt is going to the general government committee. Whether hemp can be blamed for the current state of weed or not–at least this state reform will remove one dominating boogeyman from the sphere.
