Kentucky Senate Passes Bill to Regulate Hemp-Derived Drinks

The Kentucky Senate has passed a bill aimed at regulating hemp-derived beverages, including those containing compounds like delta-8 THC. Originally proposed as a temporary ban, Senate Bill 202 was amended to focus on establishing rules for the growing industry rather than prohibiting sales. The measure passed with a 29-6 vote and now moves to the House of Representatives for further consideration.

Why the Bill Was Introduced

Hemp-infused drinks, which can have mild intoxicating effects, have been gaining popularity in Kentucky. However, the lack of regulations has raised concerns among lawmakers about safety, proper labeling, and the risk of minors gaining access. Senator Julie Raque Adams (R-Louisville) introduced the bill to address these issues, initially calling for a ban until 2026 to allow time for research and regulatory development.

Key Changes and Provisions

Following pushback from industry leaders and business owners, the proposal was modified to allow sales to continue under stricter regulations rather than banning the products. The bill includes several key measures:

  • THC Limits: Hemp beverages must contain no more than 5 milligrams of THC per serving to control potency.
  • Oversight by the Alcoholic Beverage Control (ABC) Board: The ABC will regulate the industry, ensuring compliance with safety standards.
  • Licensing Requirements: Businesses selling these drinks will need proper licensing, similar to alcohol retailers.
  • University Study: The University of Kentucky will conduct research on the manufacturing, effects, and safety of these beverages, with findings due by 2026.

Reactions from the Industry

The hemp industry has had mixed reactions to the bill. Some businesses welcome regulation, arguing that clear guidelines will ensure consumer safety and maintain credibility for hemp-derived products.

However, others feel the regulations may be too restrictive. The Kentucky Hemp Association has criticized lawmakers for not consulting industry stakeholders more thoroughly. Jim Higdon, co-founder of Cornbread Hemp, expressed concerns over the THC cap and taxation policies, arguing that hemp drinks should be taxed more like beer rather than liquor.

What’s Next?

The bill will now be reviewed by the Kentucky House of Representatives, where lawmakers may suggest further revisions before a final vote. If passed, Kentucky will join other states in setting clear rules for hemp-infused beverages, aiming to balance public safety with the growth of a rapidly expanding industry.

As the debate continues, industry leaders, consumers, and lawmakers will be watching closely to see how the regulations shape the future of hemp-derived drinks in Kentucky.