On Sept. 25, a federal appeals court let Ohio enforce much of its stricter hemp law against hemp companies that sued, but kept a block on its in-state sourcing rule

On Sept. 25, 2026, the U.S. Court of Appeals for the Sixth Circuit partly stayed a federal judge's preliminary injunction that had shielded a group of hemp companies from Ohio's stricter hemp law, Senate Bill 56, according to a later federal court order describing the ruling. The appeals court found the injunction overbroad and left it in effect "as to the named Plaintiffs only," and only insofar as it blocks enforcement of Ohio Administrative Code 3796:6-3-01(C)'s geographic sourcing restriction or "any other requirement that conditions Plaintiffs' market participation on cultivation or processing operations taking place in Ohio." The injunction was stayed "in all other respects pending appeal," the order said. The case is Titan Logistics Group LLC v. Tischler, No. 26-3648.

Bloomberg Law reported that the Sept. 25 order means companies behind hemp-derived drinks and other products can no longer sell in Ohio without a license from the state's marijuana authorities, while the state cannot deny approvals to sell based on geography. The order said the state's geographic restrictions on sellers of intoxicating hemp products raise problems under the dormant Commerce Clause, which bars states from favoring in-state businesses over out-of-state ones, according to Bloomberg Law.

Senate Bill 56 was passed by the Ohio General Assembly on Dec. 9, 2025, signed by Gov. Mike DeWine on Dec. 19, 2025, and took effect March 20, 2026, according to a Sept. 4, 2026, opinion by U.S. District Judge Jeffrey J. Helmick of the Northern District of Ohio. The law narrowed Ohio's definition of hemp to account for intoxicating THC compounds beyond delta-9 THC, and substances above the 0.3% THC threshold are treated as marijuana under state law, the opinion said. Ohio's licensed marijuana businesses may not obtain marijuana from, or transfer it to, a location outside the state, according to the opinion. Out-of-state hemp companies and companies using out-of-state hemp sued, arguing the law burdens interstate commerce in federally legal hemp products.

Later developments: In a similar case brought by companies that make and sell intoxicating hemp-derived products, including The Great Lakes Brewing Company and Rhinegeist, Helmick had entered a preliminary injunction on Sept. 4. On Oct. 7, he granted Ohio's motion to stay that injunction except for the same geographic sourcing and in-state cultivation or processing provisions, saying he saw "no reason to think the Sixth Circuit will take a different view" in that case. The Marijuana Herald reported that on Oct. 5, Helmick also modified an injunction in a third case, brought by California-based Fresh Farms E Liquid LLC, barring Ohio from enforcing the geographic sourcing restriction against that company. The Sixth Circuit's Sept. 25 order addressed a stay request and is not a final ruling on the merits; the appeal remains pending. The Sixth Circuit also covers Michigan, Kentucky and Tennessee.

This report is not legal advice.