Four companies in Ohio’s hemp-derived beverage industry have filed an emergency lawsuit with the Supreme Court of Ohio, challenging what they describe as an unconstitutional veto by Mike DeWine that could effectively ban hemp THC beverages in the state later this month.
The lawsuit, filed March 6 by the Cincinnati-based law firm Ashbrook Byrne Kresge Flowers LLC, seeks to invalidate the governor’s line-item veto of key provisions in Ohio Senate Bill 56 that would have allowed hemp-derived beverage products to remain on the market through Dec. 31, 2026.
The plaintiffs include Fifty West Brewing Company, Urban Artifact, Cycling Frog, and Sarene Craft Beer Distributors Ohio. Together, they argue the governor’s veto unlawfully rewrote legislation that had been negotiated and approved by the Ohio Legislature.
The Dispute Over Senate Bill 56
When Ohio lawmakers passed Senate Bill 56 in late 2025, the intent was to update the state’s hemp laws and prepare for a potential federal ban on intoxicating hemp products. Originally, lawmakers considered establishing a permanent regulatory program for hemp-derived beverages.
However, legislators ultimately opted for a temporary regulatory framework allowing beverages containing up to 5 milligrams of THC to remain on the market until the end of 2026. The measure was designed to provide businesses with a one-year transition period to move existing inventory through the supply chain and adapt to potential federal changes.
That compromise was removed when Gov. DeWine issued a sweeping line-item veto upon signing the bill in December. By eliminating the sections that created the temporary program, the veto effectively accelerates a ban on hemp-derived THC beverages in Ohio, with enforcement expected to begin March 20, 2026.
In his veto message, DeWine argued that allowing hemp beverages to remain available through 2026 would create confusion and undermine alignment with federal policy. He also raised concerns about products being marketed as alcohol alternatives.
“A carve-out to allow the further sale of intoxicating hemp beverages for most of 2026 will create confusion for consumers and a lack of conformity with federal law,” DeWine wrote.
Four Companies Claim Veto Is Unconstitutional
The companies behind the lawsuit argue that the governor’s action goes far beyond the authority granted by the Ohio Constitution. Under Article II, Section 16, the governor can veto individual “items” in appropriations bills, but the plaintiffs claim DeWine deleted entire sections of law instead.
According to the complaint, the veto removed 17 sections spanning roughly 15 pages of legislation, eliminating the entire regulatory framework lawmakers had created for hemp-derived beverages.
“The veto is pure policymaking and executive overreach,” the plaintiffs argued in their filing. “Governor DeWine turned a sales window into a ban.”
The lawsuit asks the court to issue a writ of mandamus compelling Frank LaRose, Ohio’s Secretary of State, to enforce the law as it was originally passed by the legislature. The case also names Ohio Division of Cannabis Control Superintendent James Canepa and Ohio Division of Liquor Control Superintendent Jackie DeGenova as respondents, requesting that regulators begin developing policies for the temporary hemp beverage program.
Ohio Industry Warns of Major Economic Impact
The plaintiffs say the governor’s decision threatens millions of dollars in investments and could trigger layoffs across Ohio’s craft beverage sector.
Cincinnati-based Fifty West Brewing Company alone invested more than $500,000 to launch its hemp beverage brand, Sunflower, including facility upgrades, distribution vehicles, and specialized equipment.
Founder Bobby Slattery said removing the product from the market could jeopardize the company’s brewery in Chillicothe.
“If Fifty West’s Sunflower brand is removed from the market, the likelihood of being forced to shut down our Chillicothe brewery becomes more of a reality,” Slattery said.
Other companies report similar financial impacts. Urban Artifact’s CFO Scotty Hunter said the business has already lost $1.7 million in annual revenue and laid off several employees following the veto. If its remaining inventory cannot be sold, the company estimates losses of up to $250,000.
For Seattle-based Cycling Frog, Ohio represents roughly 20% of its national sales, meaning the ban could significantly disrupt operations.
Distributors are also feeling the impact. Sarene Craft Beer Distributors said it has already experienced layoffs and millions in lost revenue as the market uncertainty continues.
Ohio Businesses Face Potential Criminal Liability
Adding urgency to the lawsuit, guidance from the Ohio Division of Cannabis Control reportedly warns that once the vetoed version of Senate Bill 56 takes effect, transporting hemp beverage inventory out of the state could be considered felony drug trafficking.
As a result, companies have reportedly been told they may need to destroy existing inventory or risk criminal enforcement.
Industry stakeholders say those warnings highlight the stakes of the case, particularly for businesses that made investments based on the law passed by the legislature.
“This isn’t just about policy – it’s about the rule of law,” said attorney James Kresge of Ashbrook Byrne Kresge Flowers.
What Happens Next
The plaintiffs have asked the Supreme Court of Ohio to intervene before the March 20 enforcement deadline. If the court grants the requested writ, regulators could be required to implement the temporary hemp beverage framework originally included in Senate Bill 56.
Lawmakers had also signaled their intent to revisit the issue if federal policy changes. Proposals currently under consideration in Congress could delay a federal ban on intoxicating hemp products until 2028, which could further complicate the regulatory landscape for hemp-derived beverages nationwide.
For now, the court’s decision could determine whether Ohio businesses receive the transition period lawmakers originally intended – or face an immediate ban that reshapes the state’s hemp beverage market.
If your cannabis or hemp business is navigating complex and rapidly changing regulations, expert guidance can make all the difference. Canna Business Services helps operators stay compliant, manage risk, and adapt to evolving state and federal policies. From regulatory strategy to operational consulting, our team works with cannabis and hemp businesses across the country to build sustainable, compliant operations.
