We are simply putting a moratorium until we establish regulations to protect Kentucky’s consumers.
Liam Niemeyer of the Kentucky Lantern
Kentucky lawmakers introduced a “shell’ bill on Wednesday evening that would ban hemp-derived beverage sales in Kentucky until 2026. This move, according to supporters, will provide time for the state to learn how the intoxicating versions are affecting consumers.
The hemp industry has criticized the moratorium proposed on hemp-derived drinks as crippling small businesses that try to sell, market or distribute the cans of beverages which are becoming popular across the nation and appearing in convenience stores.
Senate Bill 202, sponsored by Sen. Julie Raque Adams of Louisville (R), aims to understand intoxicating hemp-derived drinks and regulate them in a manner similar to other intoxicating liquors or beers.
She spoke to lawmakers alongside Rep. Matthew Koch (R- Paris) with a line of cans on a desk featuring various flavors and amounts of infused non-intoxicating cannabidiol, known as CBD, and other cannabinoids, which can include intoxicating tetrahydrocannabinol, or THC.
Adams explained: “We’re simply putting a moratorium in place on the sale of these products until such time that we establish robust regulations to protect Kentucky consumer and children, which is most important.” We have, in my opinion, a serious consumer protection problem right now. Kentucky needs to get this right.
On the 22nd of this 30-day legislative session, concerns over regulating hemp-derived drinks came to light. Senate legislation was due by 18 February.
SB 202 initially made minor technical changes to Kentucky law, but was rewritten by the Kentucky Senate Licensing and Occupations Committee through a substitute Bill adopted on Wednesday.
Kentucky League of Women Voters criticizes the practice of writing “shell bills” to change state laws with minimal notice. The League also criticizes other legislative maneuvers which they say exclude the public’s participation in legislative processes. The Kentucky League of Women Voters has criticized the practice of rewriting seemingly unimportant bills, known as “shell bills,” with little notice in order to make significant changes to state law. They have also criticized other legislative maneuvers that they say exclude the public from participating in the legislative process.
What is the current Senate Bill 202?
SB 202 prohibits the sale and distribution of hemp-derived drinks from the moment the bill becomes law until the first day of July 2026. The bill requires the Cabinet for Health and Family Services (CHFS) to develop regulations for drinks containing CBD and cannabinoids that are not intoxicating, such as THC.
SB 202 also directs the University of Kentucky Cannabis Center (UKC) to conduct a study on the effects of these beverages, including the manufacturing, distribution and sales, and the impact of the products themselves, and to present a final report to the Legislative Research Commission before January 1, 2026.
Adams stated that given the buzz the SB 202 version has generated in the hemp industry of the state, it is more likely a “starting point” for finding the appropriate regulation to regulate a nascent sector. She stated that she wants to involve stakeholders in determining how hemp should be regulated.
SB 202 passed the Senate Licensing and Occupations Committee. Seven Republicans voted in favor of the legislation, while two Republicans voted against it. Two Democrats backed the measure. The committee was concerned with both the impact a state-wide moratorium would have on business. Both Republicans and Democrats were worried about this, but some Republicans did vote to pass the bill knowing it would be amended.
Stephen Meredith, R-Leitchfield Senator who supported the Bill said: “By imposing a complete ban in 2026 we punish the players that are doing a good job.” It will shut down their income stream, and they may not exist.
Various people representing the hemp products industry strongly opposed the current version of the legislation implementing a moratorium, though those who testified to lawmakers disagreed over how the beverages should be regulated—whether there should be a cap on the amount of milligrams of intoxicating THC in each beverage and what that cap should be.
Jim Higdon told lawmakers that the Moratorium, which would affect his rapidly growing business, Cornbread Hemp (which makes various hemp-derived products such as gummies, oils and balms), could “put at risk” a THC infused beverage launch planned by the company for April.
Hidgon stated, “I do not understand the difference between a moratorium and a ban.” As a small company, it is our hope that we will not be forced into a ban. And as a small business that’s growing and being successful—successful in Kentucky—we would like to help the General Assembly to continue to grow and employ Kentuckians.”
Higdon told the Lantern that his company had spent about $1.2 million for the launch. The beverage would have fruity flavors, and each can will contain approximately five milligrams (mg) of THC. He said to the Lantern, canceling the planned product launch could have an impact on his employees and hemp farmers.
The father of Cornbread Hemp’s co-founder and Sen. Jimmy Higdon, R-Lebanon, has voted to stop the bill from moving out of the committee. Republican Senator Jimmy Higdon (R-Lebanon), father of Cornbread Hemp co-founder, voted against the bill advancing out of committee.
What happens to hemp-derived drinks?
In the 2018 Farm Bill, federal legislators legalized the cultivation of industrial hemp. This federal legislation removed the ban on the production of delta-8 THC – a hemp version of THC that is found in marijuana and can produce a similar high.
Kentucky has been focusing on non-intoxicating CBD hemp products for a while, before deciding to legalize delta-8 THC hemp products.
The Kentucky Hemp Association sued the state in 2021 after a series of police raids of delta-8 THC products, arguing delta-8 THC was made legal under a past federal farm bill. The association won a 2022 court case in Boone County Circuit Court to have the products legalized in Kentucky.
Kentucky legislators passed into law in 2023 a law that directed the Cabinet for Health and Family Services (Cabinet for Health and Family Services) to regulate delta-8-THC products. The Cabinet for Health and Family Services created regulations to regulate the sale of delta-8 THC products.
Intoxicating beverages derived from hemp with delta-8-THC have been created since, and state legislatures are now taking a more serious look at how to regulate such beverages.
Higdon is the co-founder of the hemp product company and told lawmakers that he prefers SB 202 amended so there’s a cap of milligrams THC per drink. Dee Taylor is the owner and president of the Kentucky Hemp Association. She also owns a hemp business in Louisville.
Taylor stated that her husband is a seizure sufferer and requires a greater amount of THC. Anecdotally, she has had people come to her shop who drink the drinks instead of alcohol.
Hidgon described the hemp industry as an “island of misfits toys” because it includes individuals from different backgrounds. It’s therefore “difficult” to reach a consensus on the best way to regulate these beverages.
All industry players agree that a moratorium will not help the situation.
Hidgon stated that “States regulate this sector vigorously, with many states coming up different solutions.” A moratorium is a prohibition.
This article was originally published in Kentucky Lantern.
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