Kentucky

SB 223 (Support) 

Kentucky lawmakers introduced two different approaches to regulating hemp-derived products.

SB 223 would have created lawful retail and distribution opportunities for cannabis-infused beverages by integrating these products into the state’s existing alcohol regulatory framework. The bill authorized supplemental licenses allowing qualified retailers, including hemp retail establishments, to sell cannabis-infused beverages and establishes a clear regulatory pathway under the Department of Alcoholic Beverage Control. SB 223 will  also outlaw open containers of THC beverages in motor vehicles, which is a critical aspect of responsibly regulating these products. 
 

HB 9 (Formerly HB 612, Support if Amended)

Meanwhile, legislation previously introduced as HB 612 was filed as HB 9 and proposed a 1.6% tax structure on hemp-derived cannabinoid products. The proposal also reduced certain licensing fees, which is a step in the right direction.

However, HB 9 would have benefited from several targeted amendments to ensure the framework is fair, workable, and properly tailored to the types of hemp products on the market today.

Specifically, improvements were needed to:

• Eliminate the double taxation of THC beverages at both the wholesale and retail levels.
• Reduce the retailer license fee from $2,000 to $570 to align with alcohol retail licensing.
• Exempt non-intoxicating hemp products, as determined by the Cabinet for Health and Family Services, from cannabinoid licensing fees and requirements.
• Tax THC by the milligram rather than by milliliter, ensuring a more accurate and equitable taxation structure.
   

With these improvements, HB 9 could have become a workable framework for Kentucky businesses and consumers while supporting responsible regulation of intoxicating cannabinoid products.