Kentucky Republicans File Bill to Allow Cannabis-Infused Beverages at Bars, Restaurants and Festivals

Key Points
  • The Kentucky Senate introduced Senate Bill 223 to create a regulatory framework allowing cannabis-infused beverages to be sold and served in venues like bars, restaurants, fairs, and festivals.
  • The bill authorizes new retail, distributor, and sampling licenses, permitting businesses including grocery stores and convenience stores to sell cannabis-infused beverages by package or drink in wet territories.
  • The Department of Alcoholic Beverage Control would regulate the distribution and retail sales, establish licensing fees by mid-2026, and enforce age restrictions prohibiting sales to individuals under 21.
  • SB 223 aligns cannabis-infused beverage regulations with alcohol laws, including shipping limits, labeling, and open container rules, and would take effect immediately upon passage as an emergency measure.

A new proposal filed yesterday in the Kentucky Senate would create a comprehensive regulatory framework for cannabis-infused beverages, allowing them to be sold and served in many of the same venues as alcohol. Senate Bill 223, sponsored by State Senators Stephen Meredith (R) and Jimmy Higdon (R), was introduced on February 23 and referred to the Committee on Committees.

The measure would create new sections within KRS Chapter 243 to authorize holders of cannabis-infused beverage retail package and distributor licenses to sell and serve these products at bars, restaurants, fairs and festivals in wet territories. With a sampling license, businesses could offer complimentary samples of up to 12 ounces per person, per day.

Manufacturers approved by the Department for Public Health would also be allowed to sell beverages by the drink and by the package on licensed premises, as well as at fairs and festivals. The legislation establishes new nonquota supplemental licenses for retailers, including grocery stores, convenience stores and hemp retail establishments, to sell cannabis-infused beverages by the package.

Under the proposal, the Department of Alcoholic Beverage Control would regulate the distribution and retail sale of cannabis-infused beverages, with authority to promulgate regulations and establish licensing fees by July 1, 2026. The bill also sets age restrictions, prohibiting those under 21 from purchasing or consuming cannabis-infused beverages, and applies existing alcohol-related minor restrictions to these products.

SB 223 further aligns cannabis-infused beverages with alcohol in areas such as direct shipping, open container laws and special temporary event licensing. It limits direct shipments to no more than 10 cases per customer per month and requires adult-use labeling and age verification upon delivery.

The legislation declares an emergency, meaning it would take effect immediately upon passage and approval by the Governor, or upon otherwise becoming law.

If approved, the measure would significantly expand where cannabis-infused beverages can be sold in Kentucky, integrating them into the state’s existing alcohol regulatory structure while establishing specific licensing and compliance requirements for manufacturers, distributors and retailers.