Certain intoxicating hemp-derived THC beverages are returning to the shelves at Ohio liquor stores and other mainstream retailers as a court challenge continues.
A federal judge on June 15 temporarily blocked enforcement of a new law restricting hemp THC products to state-licensed marijuana stores, giving a group of hemp companies a short-term win as their lawsuit against Ohio officials moves forward, according to the Akron Beacon Journal.
The 14-day temporary restraining order applies only to the 10 plaintiffs who sued 96 county and municipal prosecutors’ offices, arguing the new licensing system is unconstitutional, according to WCPO.
The ruling does not reopen the hemp THC market across Ohio, according to WCPO. It just blocks enforcement against the companies in the case while the court considers their broader claims.
What does the ruling mean for covered operators?
The plaintiffs say the new law, Senate Bill 56, unfairly favors Ohio’s licensed cannabis system. Their argument is based on a requirement that products be sourced, manufactured and distributed only in Ohio – a provision they argue unconstitutionally disfavors out-of-state producers.
United States District Court Judge Jeffrey Helmick said the plaintiffs are likely to succeed on their claim that the law violates the U.S. Constitution’s dormant Commerce Clause.
The order is set to expire June 30 unless the court extends it.
For operators covered by the order, the ruling offers relief but not certainty.
Urban Artifact co-owner Scotty Hunter, a plaintiff in the case, told WCPO the pause gives the brewery a chance to bring the THC drinks back to customers who had embraced them. Still, he said, the company plans to move carefully.
“It was such a growing part of the business that it slowed down some of our goals,” Hunter told WCPO. “We had to lay off some folks on the production side of things.”
What is the White House asking Congress to do concerning hemp?
SB 56 is one piece of a much larger fight over intoxicating hemp products, which quickly grew in popularity after the 2018 Farm Bill. These products are due to become illegal under federal law in November when a new definition of hemp becomes law.
In a supplemental funding request sent to Congress this week, the Trump White House asked lawmakers to revisit federal hemp rules.
The White House asked Congress to consider “revising the Federal regulation of hemp to ensure the fair treatment of hemp products… or, at minimum” delay implementation of the ban.
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In a statement, the U.S. Hemp Roundtable, a major lobby group, called the request a clear signal that the administration wants regulation rather than a ban.
“We are excited to see the president take such a strong public stance in favor of replacing the hemp ban with a strong regulatory framework, or at a minimum, securing an extension of the hemp ban moratorium to give Congress more time to develop regulations,” U.S. Hemp Roundtable General Counsel Jonathan Miller said.
“This is an important step in honoring Congress’ promise to help farmers and consumers.”
