Katie Moyer
Kentucky Hemp Association
kentuckyhempworks@gmail.com
270-305-4057
KENTUCKY HEMP ASSOCIATION DENOUNCES RESTRICTIVE HEMP BEVERAGE BILL
(Frankfort, KY — ) Kentucky lawmakers and media have been misled about hemp beverage regulations. While some have suggested that a deal has been reached between lawmakers and the hemp industry, no such agreement exists. In reality, since the passage of Rep Raymer’s HB 544, hemp stakeholders have spent years developing safety and testing protocols—protocols now being disregarded in favor of rushed legislation that would hand control of the industry to Big Alcohol.
SB 202 was introduced late in the session without input from Kentucky’s hemp industry, imposing an unnecessary moratorium on hemp beverages. The floor amendment to SB 202 — which was not discussed with the state’s leading hemp trade organization — ignores prior agreements and legislative processes, instead handing regulatory control to the Alcoholic Beverage Commission (ABC)
“The amendment to SB202 undermines the entrepreneurial spirit that drives innovation in the beverage market. It hands a fast-growing, popular, and profitable new product to the ABC and Big Alcohol. There are few consumer protections in this amendment, but it does serve to protect the special interests that view hemp beverages as a threat to their bottom line,” said KYHA board member Katie Moyer, owner of Kentucky Hemp Works.
Kentucky’s hemp beverage industry contributes $330M to the state’s economy and employs over 3,000 people. This amendment would cripple local businesses while giving out-of-state competitors an unfair advantage in direct-to-consumer sales.
Kentucky hemp farmer Michael Adair, a board member for KYHA said “If this model is adopted, other states will likely follow suit, causing the sales of hemp products to shrink across the country. The more limited the distribution, the fewer outlets will exist to sell the products, which in turn impacts the livelihoods of Kentucky’s hemp farmers.”
The timeline of events shows a pattern of exclusion and rushed decision-making, ignoring the very stakeholders who helped build the industry:
- Sept 26, 2024 – KYHA leaders testified against ABC control in Senator Adams’ committee hearing.
- Feb 18, 2025 – KYHA met with Chairman Matt Koch to discuss hemp beverage regulation; concessions were made but ignored.
- March 4, 2025 – Senator Adams introduced SB 202, placing a moratorium on hemp beverages until 2026.
- March 7, 2025 – A surprise floor amendment (SFA2) was introduced, forcing hemp beverages under Big Alcohol control.
What This Legislation Does Wrong:
- Removes existing oversight from CHFS (which has already regulated 146 compliant hemp beverages), replacing it with ABC control, despite ABC having zero funding allocated for hemp regulation.
- Violates federal commerce law by restricting hemp beverage sales across state lines, blocking Kentucky businesses from selling products that remain legal elsewhere.
- Eliminates consumer choice by forcing hemp beverages into alcohol distribution channels, requiring hemp retailers to obtain a quota retail package license despite those licenses being strictly limited and already allocated. (See: Page 35, (2)(c))
- Bans in-house service of hemp beverages for businesses that sell them in retail, further restricting small business operations. (See: Page 36, (4))
- Hinders research and development by capping THC levels based on arbitrary limits rather than established industry standards or ongoing university research (See: Section 35)
- Forces rapid product disposal, giving businesses just 30 days to liquidate inventory, resulting in significant financial losses and waste. (See: Page 47 (2))
- Restricts delivery options, banning hemp beverages from being shipped to dry counties, further limiting accessibility for consumers and businesses. (See: Page 37 (2)(b))
Kentucky’s hemp industry has followed every regulation set forth by the CHFS, investing millions in compliance and safety standards. This legislation undermines that progress, disrupts an entire industry, and serves corporate interests over Kentucky small businesses. The KYHA urges lawmakers and their constituents to oppose SB 202 and any amendments that hand control of hemp beverages to Big Alcohol.
Dee Dee Taylor, President 502-409-2292 Chris Ware, Vice President 205-960-8009
