Kentucky's New Cannabis Drink Rules: What It Means for You

13 March 2025

Kentucky lawmakers are making big changes to the sale of hemp-derived beverages, and it's causing a stir among small businesses and consumers alike. Senate Bill 202, which just passed the House with a strong 77-17 vote, puts new limits on THC-infused drinks while also increasing state oversight.

What’s Changing?

If SB 202 becomes law, here’s what you need to know:

• THC Limit: These beverages can contain no more than 5 mg of THC per 12-ounce serving—far lower than neighboring states like Tennessee, where the cap is 25 mg.
• Retailer Rules: Stores selling these drinks will need an Alcoholic Beverage Control (ABC) license, just like liquor stores.
• Oversight Shift: Regulation moves from the Department of Public Health to ABC, which oversees alcohol sales.
• Who Can Buy? Only 21+ adults will be allowed to purchase cannabis-infused beverages.

Why Does This Matter?

Supporters say the bill protects public safety by preventing unregulated high-THC drinks from reaching minors. But those in the hemp industry argue the new rules will hurt local businesses, limit consumer choice, and drive sales out of state.

• Kentucky’s hemp industry is worth $330 million, and some worry the restrictions will force small shops to shut down.
• Over 1,300 retailers might have to apply for new licenses, which could be costly and time-consuming.
• Some medical cannabis users say the low THC cap could make these drinks less effective for pain and anxiety relief.

Another Controversial Bill: Taxing Hemp Drinks Like Liquor

Lawmakers are also considering House Bill 775, which would tax hemp drinks at the same rate as hard liquor instead of beer. The hemp industry argues this is unfair and could make these beverages too expensive for consumers.

What Happens Next?

Before becoming law, SB 202 must go back to the Senate for approval. Then, it heads to Governor Andy Beshear, who could veto it—but the Republican-led legislature might have the votes to override any veto.

Key Takeaways:

• If you buy hemp-based drinks, expect stricter rules and lower THC limits.
• If you own a business selling these drinks, you may need a new ABC license.
• If you prefer higher-THC beverages, you might have to look outside Kentucky.

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