The article below was originally posted by Theodore J. Zeller III, Chair of the Norris McLaughlin’s Liquor Law Practice Group, General Counsel of the Brewers Of Pennsylvania – a trade group representing brewers in Pennsylvania (not to be confused with our blog Breweries In PA), on the Liquor Law Blog.
Recently, Ted wrote about how the Pennsylvania Liquor Control Board (“PLCB”) amended Advisory Notice No. 9 dealing with CBD. We spoke with Ted to understand the changes, as well as what is allowed with CBD in general, at breweries in the state.
“The amended Advisory Notice No. 9 now allows for beer distributors or importing distributors to sell various cannabidiol (“CBD”) products to both the general public and other licensees of the PLCB. While not specified, the new Advisory Notice should permit “other licensees” like restaurants, hotels, and grocery stores to sell CBD products on licensed premises.”, Ted states in his post.
Previously the PLCB has stated that the sale of CBD products alone is the operation of another business, and license holders were prohibited from it. The new law changes this, allowing distributors and importing distributors to now sell the product. Not only non-licensees but to licensees of the board. This means restaurants, taverns, grocery stores, on licensed premises, and of course, breweries can now sell CBD – oils, drops, CBD water, etc.
In order for a brewery to actually brew with CBD and have it “infused” in a beer, they need formula approval/lab analysis from the TTB (Alcohol and Tobacco Tax and Trade Bureau). Technically, it’s still not legal to sell food or beverages with CBD in them, in the state of Pennsylvania. This amended law is in regards to 3rd party CBD products.
Below is the full text of Ted’s post on the Liquor Law Blog.
Recently, the Pennsylvania Liquor Control Board (“PLCB”) amended Advisory Notice No. 9, which establishes guidelines relating to the provisions of the liquor code and PLCB regulations authorizing what a distributor or importing distributor may sell or rent. This amendment now allows for beer distributors or importing distributors to sell various cannabidiol (“CBD”) products to both the general public and other licensees of the PLCB. While not specified, the new Advisory Notice should permit “other licensees” like restaurants, hotels, and grocery stores to sell CBD products on licensed premises.
Sale of CBD Products
Pennsylvania has been swifter, overall, than some other states in allowing CBD sales to be legalized. Pennsylvania even took the lead before the federal government legalized industrial hemp through the 2018 Farm Bill. The bill made the cultivation of hemp and hemp-based products federally legal, and essentially brought a revolution for hemp and hemp-derived products. This was because hemp containing less than 0.3% THC by weight was removed from the schedule I list of controlled substances due to the 2018 Farm Bill.
Pennsylvania’s Industrial Hemp Pilot Program launched in 2016 through House Bill 967. The bill made the cultivation and processing of industrial hemp — defined as hemp that doesn’t exceed 0.3% tetrahydrocannabinol (“THC”) content by weight — legal. This includes CBD. The sale of CBD then became widespread throughout the state after the federal government legalized CBD in the 2018 Farm Bill. And while no license is required to use CBD in Pennsylvania, the customer must be at least 18 years old to purchase CBD. Importantly, non-alcohol-based CBD beverages can be sold only to persons aged 21 or older. The Pennsylvania Department of Agriculture was appointed to oversee the program, and the United States Drug Administration approved Pennsylvania’s hemp production plans in 2020. No longer in its pilot stage, the program is now the Pennsylvania Hemp Program.
PLCB Regulations Amended
The PLCB has now acted to amend its regulations to reflect the changing landscape of the laws in this area relating to CBD. CBD products now allowed to be sold by distributors and importing distributors of malt or brewed beverages include edible gummies and CBD-containing non-alcoholic beverages including non-alcoholic wine, non-alcoholic malt beverages, soft drinks, juices, water, milk, non-alcoholic drink mixes, carbonic and non-carbonic mixes, including ice teas (prepared or mix form), and coffee and tea (prepared or unprepared forms). Again, these are allowed to be sold to both the general public and other licensees of the PLCB.
For information about national and state liquor law matters or general manufacturing and distribution advice, please contact our Liquor Law, Licensing, Manufacturing, and Distribution Practice Group: Liquor Law Department Chair Theodore J. Zeller III, Esquire (tzeller@norris-law.com); David C. Berger, Esquire (dberger@norris-law.com) for Pennsylvania and New Jersey retail and manufacturing licensing; Brandon J. Lee, Esquire (bjlee@norris-law.com) for general Pennsylvania liquor license advice; or contact our offices at 610-391-1800. Anthony M. Brichta, Esquire (ambrichta@norris-law.com) for federal manufacturing, distribution, formula, and labeling issues.
