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SB 164

Regulation of Lawful Tetrahydrocannabinol Beverages

2026 Regular Session

Colorado will regulate lawful hemp-derived THC beverages with strict labeling, testing, packaging, and wholesaler-only distribution to ensure safety and youth protection.

Senate Committee on Finance Postpone Indefinitely
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Bill Summary · SB 164

Summary of Bill SB 164 (2026A) – Regulation of Lawful THC Beverages (Colorado)

Purpose and intent

  • The bill creates a comprehensive, state-regulated framework for the manufacture, distribution, sale, and consumption of “lawful THC beverages” in Colorado.
  • Aims to set uniform statewide rules for these products to ensure safety, labeling, testing, and proper separation from other cannabis products and alcohol.

Key definitions

  • Lawful THC beverage: A nonalcoholic beverage infused with THC derived from a legal hemp source, containing no more than 10 mg total THC per serving.
  • Approved source of hemp: A defined set of acceptable hemp sources (e.g., state-approved hemp programs, GRAS-listed ingredients, testing-compliant suppliers, etc.), with criteria for out-of-state suppliers to demonstrate compliance and equivalency.
  • Registrant: A person registered with the Department of Public Health and Environment (CDPHE) to manufacture hemp products.
  • Lawful THC beverage permit: A permit issued by the State Licensing Authority to sell/distribute lawful THC beverages.

Major provisions

Manufacturing and registration (Section 25-5-427.5)

  • Establishes requirements for manufacturing lawful THC beverages by registrants:
    • Use of an approved source of hemp.
    • Compliance with CDPHE labeling, production, and transportation rules.
    • Sale only to licensed wholesalers (no direct sales to retailers or consumers by manufacturers).
  • Defines product formats:
    • Single-serving containers: max 50 mL; cap/pull-tab allowed; up to 10 mg THC per container; up to 1 serving per container; pack sizes of 24 or fewer.
    • Multi-serving beverages: min 370 mL, max 1.375 L; resealable containers; up to 1.5 oz (per serving) and max 10 mg THC per serving.
  • Requires adherence to CDPHE testing standards and labeling/packaging rules for hemp products.
  • Prohibits synthetic or semi-synthetic cannabinoids in lawful THC beverages.

Sale and distribution (Section 25-5-427.5)

  • Manufacturers may sell only to wholesalers with a WHolesale THC beverage permit (44-8-103) and may use licensed transporters.
  • Manufacturers cannot sell directly to consumers or to retailers licensed under alcohol or marijuana regimes.

Labeling, packaging, testing (Section 25-5-427.5(4))

  • Labels must include:
    • A statement that the product is not FDA-approved.
    • Expiration date.
    • Total milligrams of hemp-derived intoxicating cannabinoids per serving and number of servings per container.
    • Total milligrams of cannabinoids in the entire product/package.
    • Nutrition Facts panel.
  • Packaging must avoid imagery attractive to under-21 consumers; certain design restrictions apply to ensure youth protection.
  • Testing requirements to verify potency, homogeneity, and compliance with variance (10% allowed); corrective actions for misrepresentations; testing standards likened to hemp products.

Rules and enforcement (Section 25-5-427.5(5))

  • By Jan 1, 2028, CDPHE, in consultation with the State Licensing Authority, must adopt rules for:
    • Manufacturing, sale, testing, labeling, and packaging.
    • Transportation, inventory, recalls, and safe storage/traceability.
    • Safe handling and enforcement mechanisms.

Local regulation

  • Local governments may prohibit the sale of lawful THC beverages within their jurisdiction, but cannot impose more burdensome requirements than state law (with some exceptions for timing and allowances).

Retail sale and licensing (Title 44 and Title 44-3)

  • Establishes a parallel framework under the Liquor and Tobacco/Alcohol authorities for lawful THC beverage permits and sales through liquor-licensed establishments, retail marijuana hospitality/sales businesses, and retail marijuana transporters.
  • Requires compliance with Article 8 provisions and relevant rules; permits align with on-premises or off-premises sale, including on-site consumption options for certain license types.
  • Fees: The State Licensing Authority will set fees for lawful THC beverage permits, with allocations to support administration and enforcement.

Effective date and implementation

  • Core sections (including 25-5-427.5 and related regulatory structure) take effect January 1, 2028.
  • Other provisions become effective on a timing tied to the bill’s final adjournment, with certain sections contingent on voter referendum outcomes.

Potential impact

  • Creates a regulated market for lawful THC beverages, separating hemp-derived THC products from regulated marijuana products.
  • Establishes explicit labeling, testing, packaging, and youth-protection standards to enhance consumer safety and transparency.
  • Enables licensed wholesalers, retailers, and transporters to participate, while restricting direct-to-consumer sales by manufacturers.
  • Provides local governments with authority to restrict or prohibit lawful THC beverage sales within their jurisdiction.
  • Introduces a comprehensive enforcement and recall framework to address noncompliance and product safety concerns.

Compiled from official sources — confirm details with the bill’s official record.

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