Senate Bill 202 Takes Effect in Kentucky, Regulating Cannabis Beverages

Image | adobe.stock/Dasha Petrenko

On June 1, 2025, Senate Bill (SB) 202 took effect in Kentucky, prohibiting the sale of certain cannabis beverages in the state in certain establishments such as restaurants. The Act, titled “an act relating to regulated beverages and declaring an emergency,” was signed by Kentucky Governor Andy Beshear on March 25, 2025 (1). With the new law, cannabis beverages may only be sold by the package in liquor stores in certain areas. Additionally, individuals under 21 may not purchase or consume cannabis-infused beverages.

In this bill, a cannabis-infused beverage is defined as (1): “a properly permitted adult-use cannabinoid liquid product intended for human consumption that has intoxicating properties that change the function of the nervous system and results in alterations of perception, cognition, or behavior and shall not contain more than five (5) milligrams of intoxicating adult-use cannabinoids per twelve (12) ounce serving.”

Regulated medical cannabis and nonintoxicating cannabinoids are not included in this definition (1). Also outlined in the bill are licensing types and fees.

The Department of Alcoholic Beverage Control will regulate the sale and distribution of cannabis beverages and will issue a report to Legislative Research Commission by November 2026 on cannabis beverage sale and distribution (1).

Also included in the bill is direction for the University of Kentucky to report on cannabis beverages (1): “The University of Kentucky Cannabis Center shall report its work on the various aspects of the manufacture, testing procedures, and consumer effects of beverages containing cannabidiol or other cannabinoid products to the Legislative Research Commission by January 31, 2026. The center may consult with other entities as a part of its report.”

Sponsored by Senator Julie Raque Adams, SB 202 was introduced in the Senate in February 2025 (2).

“This legislation ensures that as this emerging industry takes shape, Kentucky leads with a balanced approach that protects public health, supports responsible business practices, and promotes transparency,” stated Adams in a March 26 press release (3) “I’m grateful to my colleagues and the administration for recognizing the importance of thoughtful regulation in this space.”

The press release stated that the bill had been passed with bipartisan support.

“This is a fast-evolving area, and SB 202 positions Kentucky to approach it with clarity, caution, and a commitment to smart policy,” Adams added.

Holders of licenses including cannabis-infused beverage retail package license, a cannabis-infused beverage distributor’s license, or a cannabis-infused beverage manufacturer license are able to sell and serve complimentary samples of cannabis beverages at fairs, festivals, and similar events in designated regions until January 1, 2026 (1).

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