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LOUISVILLE, Ky. — A bill putting more restrictions on the sale of hemp-infused beverages is working its way through the Kentucky legislature causing alarm in the industry.
Initially, Senate Bill 202 temporarily banned the sale of THC seltzers and other beverage products, but things have been changing quickly in the first week of March.
In addition to running Cornbread Hemp and its 75 employees, cofounder Jim Higdon is advocating for an industry facing the possibility of new regulations. “I have learned not to be surprised by things that happen in the legislature. I was surprised by how this process took place,” Higdon told Spectrum News.
With little notice, Higdon and other hemp business were facing down SB 202 and a provision which included a ban on hemp and THC beverage sales until July 2026.
Proponents of the bill suggest the THC beverage industry needs more guardrails and could pose a public health risk, especially to children. On March 7, the language, including the temporary ban, was dropped before passing out of the Senate.
“It caused a lot of anxiety and consternation over nothing and got a lot of people’s attention, a lot of negative reaction with something that could have happened in a much more regular-order kind of way, and instead we got this chaotic approach that we got this week,” Higdon added.
In its revised form, SB 202 includes a cap on how much cannabinoid can be in beverages.
Higdon also has concerns as lawmakers consider whether to tax these beverages as spirits. Spirits are taxed significantly more per gallon than beer in Kentucky.
“Passed with a five-milligram cap in the Senate, passed over to the House, we’re asking friendly representatives in the House for an amendment to increase that cap from 5 milligrams to 10 milligrams and to tax these products like beer not like spirits,” Higdon explained. “Hemp beverages that are single serving in a can at 5 or 10 milligrams are more like a beer than a spirit and should be taxed like a beer, not a spirit.”
As Higdon points out, the hemp industry, including beverages, is already regulated by the state since Gov. Andy Beshear, D-Ky., signed House Bill 544, two years ago this month. “This is a manufactured emergency by vested interests in the beverage space to bring us to heel,” Higdon said.
“}]] A cofounder of a local hemp beverage company is concerned about tax implications and the plan to lower THC content in the drinks. Read More
