7 p.m. update: Senate Bill 202 cleared a Kentucky Senate committee Wednesday evening shortly after its language was entirely replaced to ban the sale of any low-THC hemp beverages until the summer of 2026.
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A newly-amended bill to be taken up by a Kentucky Senate committee Wednesday would ban the sale of any hemp-derived beverage in the state, putting the brakes on a growing market.
Senate Bill 202 is what’s known as a “shell bill” — legislation with original language that typically makes a small technical correction to a statute, only to be replaced by more significant regulation when it comes up for a vote.
Originally a bill changing “Web site” to “website” in an unrelated statute, the substitute language the Senate Licensing and Occupations committee will take up Wednesday would instead ban all hemp and cannabinoid-derived beverages once it becomes law, until at least July 1, 2026. The substitute bill was distributed to committee members Tuesday afternoon, when they were informed the committee would have a special meeting to take up SB 202 the following day.
Jim Higdon, the owner of the Kentucky-based Cornbread Hemp, says his company was set to launch a new hemp beverage in stores next month, but his plans would be wiped out if the new version of SB 202 passes into law.
“We've invested over $1 million in this beverage launch, and with less than 24 hours notice, they're springing a bill on us that would make it impossible for us to recoup that investment,” Higdon said.
Hemp-derived beverages, also known as THC seltzers, have been in Kentucky stores over the past two years, with numerous products now available for sale in many liquor stores for those 21 years and older.
Sen. Julie Raque Adams, a Louisville Republican who chairs the committee and is the lead sponsor of SB 202, did not return a request for comment on the bill.
Higdon says those in the hemp industry have been in many discussions with lawmakers over the past year about concerns over how hemp-derived, low-THC beverages are regulated and were expecting legislation in the House chamber with adjustments — but there was never previously any discussion about an outright ban.
In an interim licensing committee meeting in September, alcohol distributors sought to move regulation over intoxicating hemp and Delta-9 beverages to Alcoholic Beverage Control agencies. In 2023, legislation was passed to limit the sale of hemp-derived products to those aged 21 and older and put the Cabinet for Health and Family Services in charge of their regulation, testing and labeling.
Higdon said the hemp industry has discussed the potential for bills limiting the sale of the beverages to liquor stores, bars and restaurants, different taxation schemes and THC milligram caps on products, but a bill to ban the products entirely came out of nowhere.
He also takes no solace in the new version of SB 202 stating that the ban would last until the summer of 2026.
“I think it's naive to think that a product ban will be lifted by the legislature, it's just not feasible,” Higdon said. “If it gets banned, it's going to stay banned.”
With the market share of hemp beverages growing, Higdon says the industry has faced new pressure against it in several state legislatures, led by a lobbying push from the alcoholic beverages industry.
In Texas, a bill is advancing to ban all hemp and low-THC products, while legislation increasing regulations on hemp beverages has been filed in Florida, Missouri, Ohio and Georgia. Last year, California Gov. Gavin Newsom enacted regulations to ban the sale of any intoxicating hemp products.
The Wine & Spirits Wholesalers of Kentucky reported lobbying the General Assembly on issues related to “intoxicating hemp” in January.
Asked about their lobbying efforts on SB 202 and hemp beverages, Charles George, the executive director of the alcohol wholesalers advocacy group, said they “simply want intoxicating hemp beverages regulated in the same manner as alcoholic beverages.”
Higdon is hopeful the bill will not advance without significant changes.
“This is a manufactured emergency generated by special interests trying to keep Kentucky in the past,” Higdon said. “We will fight this until the last day of the session.”
This is a developing story and may be updated.
State government and politics reporting is supported in part by the Corporation for Public Broadcasting.
