To amend sections 131.02, 715.013, 928.01, 928.03, 4506.01, 5502.01, 5502.13, 5502.14, 5703.052, 5703.053, 5703.19, 5703.263, 5703.50, 5703.70, and 5703.77 and to enact sections 3779.01, 3779.02, 3779.03, 3779.04, 3779.05, 3779.06, 3779.21, 3779.22, 3779.23, 3779.24, 3779.25, 3779.26, 3779.27, 3779.28, 3779.29, 3779.40, 3779.41, 3779.42, 3779.43, 3779.431, 3779.44, 3779.45, 3779.451, 3779.46, 3779.47, 3779.48, and 3779.99 of the Revised Code to generally prohibit the sale of intoxicating hemp products, except for sales at licensed dispensaries; to regulate drinkable cannabinoid products, and to levy taxes on drinkable cannabinoid products and other intoxicating hemp products that may be sold.
SB86 would create a new regulatory and tax framework for hemp-derived intoxicating products in Ohio. The bill defines “intoxicating hemp products” and generally bans their retail sale, except through licensed adult-use cannabis dispensaries or medical marijuana dispensaries to adults age 21 and older. It also creates a separate category for “drinkable cannabinoid products,” which are hemp-derived beverages with tightly capped THC content, and allows those products to be sold only through licensed or registered channels subject to testing, labeling, age-verification, distribution, and advertising rules.
The bill directs the Department of Commerce, the Department of Agriculture, the Ohio Investigative Unit, and the Department of Public Safety to adopt and enforce rules covering licensing, testing, product standards, inspections, recordkeeping, and penalties. It also adds criminal and administrative penalties for unlawful sales, false labeling, and tax evasion. In addition, SB86 imposes a 10% tax on intoxicating hemp product receipts sold by dispensaries and a $3.50-per-gallon excise tax on drinkable cannabinoid products sold by manufacturers, with related refund, assessment, collection, and enforcement provisions added to Ohio tax law.
SB86 would add a new Chapter 3779 to the Revised Code and amend multiple existing sections to integrate intoxicating hemp products and drinkable cannabinoid products into Ohio’s tax, enforcement, and administrative systems. It would expand the state’s hemp definitions, limit municipal taxation authority by adding Chapter 3779 to the list of state taxes preempting local equivalents, and authorize state agencies to regulate, inspect, test, and penalize participants in the hemp-derived intoxicant market. The bill also amends tax collection and refund statutes to cover the new taxes, including assessment procedures, liens/judgments, refunds, offsets, and collection by the attorney general.
The available voting history suggests strong support and little visible opposition in the Senate: the bill advanced 7-0 in committee and passed the Senate 33-0. No committee transcript was provided, so there is no recorded debate to indicate substantive dissent or amendments in the materials supplied. Overall, the bill appears to have been received favorably as a public-safety, regulatory, and tax measure rather than a controversial legalization bill.
The main policy tension in SB86 is between restricting intoxicating hemp products and preserving a legal market for certain hemp-derived beverages. Supporters appear to favor tighter controls, age limits, testing, and channeling sales through licensed dispensaries, while the bill’s structure could concern hemp businesses that currently sell intoxicating products outside the dispensary system. Potential points of contention also include the new tax burden, the use of criminal penalties for unlawful retail sales, and the extent of state preemption over local regulation and taxation. The bill’s carve-outs for dispensaries and its detailed agency enforcement scheme suggest an effort to balance consumer access, public safety, and market control.