Ohio Judge Temporarily Blocks Hemp Ban Enforcement, Calls Law “Discriminatory”

Key Points
  • An Ohio judge has issued a temporary restraining order blocking enforcement of a new law banning certain hemp-derived products, citing potential unfair advantages for the regulated marijuana industry over federally legal hemp businesses.
  • The order, issued by Judge Jeremiah Ray, prevents local authorities from enforcing Senate Bill 56, which took effect on March 20, until April 28 and extends to third-party businesses supporting hemp product distribution.
  • The judge highlighted that the law appears discriminatory since licensed marijuana businesses can sell similar products that hemp companies are barred from, with a likely successful legal challenge under the Commerce Clause.
  • The lawsuit was filed by North Fork Distribution I LLC (Cycling Frog), which also contests the governor’s veto of a provision allowing certain hemp beverages to stay on the market until the end of 2026, and the case may be certified as a class action; Ohio’s Attorney General has filed to intervene.

An Ohio judge has temporarily halted enforcement of a new state law banning certain hemp-derived products, finding the policy may unfairly favor the regulated marijuana industry over federally legal hemp businesses.

In an order issued in late-March, Sandusky County Common Pleas Court Judge Jeremiah Ray granted a temporary restraining order preventing the Fremont Police Department, and others acting with them, from enforcing the ban created under Senate Bill 56, which took effect March 20.

Ray said the law appears to let licensed marijuana businesses sell products similar to ones that hemp companies are now barred from selling, even though many hemp-derived products remain federally legal until a separate federal change takes effect on November 12. In the order, he described the law’s effects as discriminatory and said the challenge under the dormant Commerce Clause is likely to succeed.

The lawsuit was brought by North Fork Distribution I LLC, the Seattle-based company that does business as Cycling Frog. The company makes hemp-derived THC and CBD products, including beverages. It is also challenging Governor Mike DeWine’s veto of a provision that would have allowed certain hemp beverages to remain on the market through the end of 2026.

According to the order, the restraining order remains in place until April 28 and also covers third-party businesses that help facilitate Cycling Frog’s operations, including distribution and logistics firms.

The company’s attorney has also asked the court to certify the case as a class action, a move that could have broader statewide consequences for enforcement of the law. Ohio Attorney General Dave Yost filed a motion to intervene on April 3. A hearing is scheduled for April 9.