COLUMBUS, Ohio — Lawmakers are pushing forward with a new regulatory framework for Ohio’s hemp industry as Senate Bill 86, introduced on February 4, 2025, seeks to impose stricter oversight on cultivation, processing, and THC content in hemp-derived products. The legislation, if passed, would reshape the state’s hemp market with new restrictions and compliance measures.
The bill’s key provisions target hemp cultivation setbacks, THC concentration regulations, and new reporting mandates for businesses. Supporters argue it’s necessary for maintaining industry integrity, while critics worry it could add burdensome red tape to an already regulated market.
Stricter THC Limits and Licensing Oversight
One of the most notable changes in S.B. 86 is its revised definition of “hemp products,” which now includes byproducts of hemp processing with more than 0.3% delta-9 THC. This means that any hemp derivative exceeding this limit would face tighter regulations for storage, disposal, and production compliance.
Additionally, the bill establishes annual reporting and recordkeeping requirements for license holders in the hemp industry, ensuring compliance with state and federal laws. Ohio’s Department of Agriculture will also share licensing data with the USDA, increasing federal oversight on local growers.
New Restrictions on Where Hemp Can Be Grown
To prevent cross-contamination between different types of cannabis, hemp growers must maintain a specific setback distance from medical marijuana and recreational cannabis cultivation sites. However, the bill does offer protection for existing hemp operations: if a medical marijuana cultivator moves closer to a hemp farm, the hemp grower would not be forced to relocate.
Testing Fees and Processing Restrictions
Under the proposed legislation, laboratory testing fees for hemp plants and products will be clearly outlined, ensuring all hemp undergoes safety and THC compliance checks. Additionally, hemp processing will be banned in personal residences and land zoned for residential use, a move designed to keep hemp production in properly regulated facilities.
Industry Reactions and Next Steps
While the bill aims to bring clarity and structure to Ohio’s hemp industry, some stakeholders worry about the added cost and complexity of compliance. Others argue the bill is necessary to maintain public safety, protect consumer interests, and align Ohio’s hemp market with federal standards.
As S.B. 86 moves through the legislative process, its impact on Ohio’s rapidly expanding hemp industry will be closely watched.