Judge Issues TRO Protecting Hemp Companies from Ohio’s New Licensing Law

A federal judge has temporarily shielded 10 hemp companies from Ohio’s enforcement of new restrictions on intoxicating hemp products and beverages. The ruling gives the businesses a 14-day window to continue selling items that meet federal hemp standards.

U.S. District Judge Jeffrey Helmick issued the temporary restraining order on Monday. It bars state officials from taking enforcement steps against the companies during that period, as long as the products qualify as hemp or hemp-derived under the 2018 Farm Bill. Both Ohio-based businesses and companies located outside the state are covered by the order.

The decision responds to a lawsuit the companies filed against Senate Bill 56. That law, signed by Governor Mike DeWine in December, directs the sale of many intoxicating hemp items exclusively through Ohio’s licensed cannabis dispensary network. The companies contend the measure conflicts with federal rules by reclassifying products that the Farm Bill treats as hemp rather than cannabis.

Under the 2018 Farm Bill, hemp remains legally distinct from marijuana when delta-9 THC content stays at or below 0.3 percent on a dry-weight basis. Senate Bill 56 takes a different approach by moving higher-potency hemp-derived beverages and similar products into the state’s cannabis regulatory system. The companies argue this shift improperly limits who can sell these items and creates barriers for businesses that operate across state lines.

In granting the order, Judge Helmick found the companies had shown a reasonable chance of prevailing on their claims and would face significant harm without immediate relief. The temporary measure preserves the companies’ ability to sell qualifying products while the court examines the case in greater detail.

For the affected businesses, the ruling prevents sudden disruptions to inventory and sales channels that had been operating under federal hemp guidelines. Consumers who purchase hemp beverages and related products from these sellers will continue to have access during the two-week period. The order does not apply to all hemp companies in Ohio, only the 10 parties involved in this specific legal action.

The temporary restraining order is not a final ruling on whether Senate Bill 56 is constitutional. It simply keeps conditions stable for these companies until the court can hold a hearing on a longer preliminary injunction. Such hearings typically allow both sides to present more extensive arguments and evidence.

Cases like this reflect the ongoing challenge of aligning state cannabis licensing systems with the federal hemp market created by the 2018 Farm Bill. Several states have faced similar questions about how to regulate hemp-derived products that produce intoxicating effects while still complying with federal definitions.

The 14-day protection period gives the companies time to prepare for the next stage of litigation. It also provides a brief period for regulators and lawmakers to assess how state rules interact with the federal framework that has supported legal hemp production and sales since 2018. The court is expected to schedule further proceedings soon.