A federal judge has granted a preliminary injunction barring Ohio officials from enforcing portions of the state’s new hemp restrictions against a group of major hemp companies and anyone possessing, selling, distributing or consuming their federally lawful products.
U.S. District Judge Jeffrey J. Helmick issued the order September 4 in Delta Beverages Inc. et al. v. Canepa et al., pending in the U.S. District Court for the Northern District of Ohio.
The plaintiffs include Delta Beverages, Crescent Canna, Cheech & Chong’s Beverages, Torch Drinks, Fifty West Brewing Company, Great Lakes Brewing Company, Seventh Son Brewing, Rhinegeist, Uncle Arnie’s, Hometown Hero and several other hemp businesses.
The lawsuit challenges provisions of Senate Bill 56, which took effect March 20 and substantially narrowed what qualifies as hemp under Ohio law. Among other provisions, the law excludes final hemp-derived cannabinoid products containing more than 0.4 milligrams of combined total THC per container, as well as certain products containing synthesized cannabinoids.
Products falling outside Ohio’s new hemp definition are treated as marijuana and generally must be sold through the state-licensed marijuana system. At the same time, Ohio regulations prohibit licensed marijuana dispensaries from obtaining marijuana from locations outside the state.
The plaintiffs, which are either based outside Ohio, use hemp sourced from outside the state or both, argue that the combined rules effectively prevent them from participating in Ohio’s market even when their products remain legal hemp under federal law.
Helmick concluded that the companies have demonstrated a likelihood of succeeding on their claim that the restrictions violate the U.S. Constitution’s Dormant Commerce Clause by improperly discriminating against interstate commerce.
The preliminary injunction bars Ohio, its cannabis regulators and other defendants from taking criminal, civil, administrative or regulatory enforcement action against the plaintiffs or anyone possessing, selling, distributing or consuming their products when the action depends on Senate Bill 56’s amended definition of hemp and the product qualifies as hemp under federal law.
The ruling does not permanently invalidate Senate Bill 56 or resolve the lawsuit. Instead, it preserves the companies’ ability to sell federally lawful hemp products while the constitutional challenge moves forward.
The lawsuit was filed July 30. Helmick initially issued a temporary restraining order on August 7 providing substantially similar protection, which was later extended through September 4. The new preliminary injunction replaces that temporary relief and remains in place as the litigation proceeds.
The case is docketed as 3:26-cv-01793.
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