Senate committee approves bill to regulate THC-infused beverages in Kentucky

A Kentucky Senate committee on Thursday voted 9-2 to advance Senate Bill 223 (as amended by PSS 2), a bill that would establish a regulatory framework treating hemp-derived THC-infused beverages in a manner similar to alcoholic drinks.

Sponsor Senator Steve Meredith (5th District) told the committee the bill places regulation with the Department of Alcohol Beverages Control (ABC), requires sales be limited to adults 21 and older, restricts sales to wet territories or authorized precincts, creates an open-container offense for THC beverages in vehicles, and directs ABC to promulgate regulations and a license fee schedule by July under an emergency clause. "This legislation ensures that as an emerging industry takes shape, Kentucky leads with a balanced approach that protects public health, supports responsible business practices, and promotes transparency," Meredith said.

Cofounder Jim Higdon, speaking in support, described the bill as building on last year’s SB 202 and said it creates on-premise pathways for bars, restaurants and events while recognizing dedicated hemp retailers that derive at least 70% of revenue from hemp products. He told the committee the authors support testing requirements, labeling standards, age restrictions and reasonable taxation.

Opponents said the bill raises public-safety and federal-preemption concerns. Jean Cole, executive director and president of the Kentucky Ethics League and the Kentucky League on Alcohol and Gambling and Substance Use Disorders, urged the committee to reject the measure, saying first responders are already stretched by drunk driving and that adding another intoxicating beverage risks harm. Cole also said an executive order banning certain hemp-derived products will take effect in November and warned of potential consequences.

Jack Mazarach of the Kentucky Distillers Association urged lawmakers to use caution, saying the hemp THC beverage industry lacks a sufficient federal regulatory framework and currently pays no federal tax comparable to the distilled-spirits industry. "FDA, TTB, all these agencies that regulate the alcohol industry, need to be aligned on regulations for hemp at the federal level," he said.

Committee members raised several practical questions during discussion. Senator Mays Bledsoe asked whether federal oversight exists; Meredith replied federal action is possible but not yet tangible and that Kentucky has authority now. Senator Berg offered an "explain" for an aye vote, saying in her view some people in long-term recovery use these products as a safer alternative to alcohol. Senator McDaniel explained his no vote, citing concerns about expanding intoxicating products and parallels to gambling and vaping that had unanticipated social effects.

The committee approved SB 223 as amended by PSS 2 by voice and roll call. The clerks recorded 9 yays and 2 nays; the committee will advance the bill to the next stage in the legislative process.

What’s next: The bill now moves from committee for further consideration by the full Senate; if passed, sponsors said they may adjust the statute if and when federal rules are finalized.