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AN ACT relating to medicinal cannabis and making an appropriation therefor. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 3
READ AS FOLLOWS: 4
For the purposes of Sections 1 to 30 of this Act, unless the context otherwise requires: 5
(1) "Bona fide practitioner-patient relationship" means a treating or consulting 6
relationship, during the course of which a medicinal cannabis practitioner: 7
(a) Has completed an initial in-person examination and assessment of the 8
patient's medical history and current medical condition; 9
(b) Has consulted with the patient with respect to the possible medical, 10
therapeutic, and palliative properties of medicinal cannabis; 11
(c) Has advised the patient of the possible risks and side effects associated with 12
the use of medicinal cannabis, including possible interactions between 13
medicinal cannabis and any other drug or medication that the patient is 14
taking at that time; and 15
(d) Has established an expectation that he or she will provide follow-up care 16
and treatment to the patient; 17
(2) "Cannabis business" means an entity licensed under this chapter as a cultivator, 18
dispensary, processor, producer, or safety compliance facility; 19
(3) "Cannabis business agent" means a principal officer, board member, employee, 20
volunteer, or agent of a cannabis business; 21
(4) "Cardholder" means: 22
(a) A registered qualified patient, designated caregiver, or visiting qualified 23
patient who has applied for, obtained, and possesses a valid registry 24
identification card issued by the department as required by this chapter; or 25
(b) A visiting qualified patient who has obtained and possesses a valid out-of-26
state registry identification card; 27 UNOFFICIAL COPY 23 RS BR 953
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(5) "Cultivator" means an entity licensed as such under Sections 16, 17, and 18 of 1
this Act; 2
(6) "Cultivator agent" means a principal officer, board member, employee, 3
volunteer, or agent of a cultivator; 4
(7) "Department" means the Department of Alcoholic Beverage and Cannabis 5
Control or its successor agency; 6
(8) "Designated caregiver" means a person who has registered as such with the 7
department as required by this chapter; 8
(9) "Dispensary" means an entity licensed as such under Sections 16, 17, and 18 of 9
this Act; 10
(10) "Dispensary agent" means a principal officer, board member, employee, 11
volunteer, or agent of a dispensary; 12
(11) "Disqualifying felony offense" means: 13
(a) A felony offense that would classify the person as a violent offender under 14
KRS 439.3401; or 15
(b) A violation of a state or federal controlled substance law that was classified 16
as a felony in the jurisdiction where the person was convicted, except: 17
1. An offense for which the sentence, including any term of probation, 18
incarceration, or supervised release, was completed five (5) or more 19
years earlier; or 20
2. An offense that consisted of conduct for which Sections 1 to 30 of this 21
Act would likely have prevented a conviction, but the conduct either 22
occurred prior to the enactment of Sections 1 to 30 of this Act or was 23
prosecuted by an authority other than the Commonwealth of 24
Kentucky; 25
(12) "Diversion" or "divert" means the act of dispensing, selling, or otherwise 26
transferring possession of medicinal cannabis from a licensed cannabis business 27 UNOFFICIAL COPY 23 RS BR 953
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or cardholder to any person or entity not authorized under the provisions of 1
Sections 1 to 30 of this Act to legally possess or use medicinal cannabis; 2
(13) "Enclosed, locked facility" means: 3
(a) An indoor growing space such as a room, greenhouse, building, or other 4
indoor enclosed area that is maintained and operated by a cultivator or 5
producer and is equipped with locks and other security devices that permit 6
authorized access only by agents of the cultivator or producer, as required 7
by the department; or 8
(b) An outdoor growing space that is maintained and operated by a cultivator 9
or producer and is secured and electronically monitored to permit 10
authorized access only by agents of the cultivator or producer, as required 11
by the department; 12
(14) "Gross receipts" means the total amount or consideration, including cash, credit, 13
property, and services for which medicinal cannabis is sold, valued in money, 14
whether received in money or otherwise; 15
(15) "Growth area" means the same as an enclosed, locked facility; 16
(16) "Marijuana" has the same meaning as in Section 34 of this Act; 17
(17) "Medicinal cannabis" means marijuana as defined in Section 34 of this Act 18
when cultivated, harvested, processed, produced, transported, dispensed, 19
distributed, sold, possessed, or otherwise used in accordance with Sections 1 to 30 20
of this Act. The term "medicinal cannabis" includes medicinal cannabis products 21
and raw plant material. The term "medicinal cannabis" does not include 22
industrial hemp or industrial hemp products as defined in KRS 260.850, and 23
nothing in Sections 1 to 30 of this Act shall be construed or interpreted as 24
applying to industrial hemp or industrial hemp products; 25
(18) "Medicinal cannabis accessories" means any equipment, product, or material of 26
any kind which is used, intended for use, or designed for use in the preparing, 27 UNOFFICIAL COPY 23 RS BR 953
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storing, using, or consuming medicinal cannabis in accordance with Sections 1 to 1
30 of this Act; 2
(19) "Medicinal cannabis practitioner" means a physician or an advanced practice 3
registered nurse who is authorized by his or her state licensing board to provide 4
written certifications for the use of medicinal cannabis in accordance with 5
Section 9 of this Act; 6
(20)_"Medicinal cannabis product" means any compound, manufacture, salt, 7
derivative, mixture, or preparation of any part of the plant Cannabis sp., its seeds 8
or its resin; or any compound, mixture, or preparation which contains any 9
quantity of these substances when cultivated, harvested, processed, produced, 10
transported, dispensed, distributed, sold, possessed, or used in accordance with 11
Sections 1 to 30 of this Act. The term "medicinal cannabis product" does not 12
include industrial hemp products as defined in KRS 260.850; 13
(21) "Minor" means a person less than eighteen (18) years of age; 14
(22) "Out-of-state registry identification card" means a registry identification card, or 15
an equivalent document, that was issued pursuant to the laws of another state, 16
district, territory, commonwealth, or insular possession of the United States that 17
allows the person to use medicinal cannabis in the jurisdiction of issuance; 18
(23) "Pharmacist" has the same meaning as in KRS 315.010; 19
(24) "Processor" means an entity licensed as such under Sections 16, 17, and 18 of 20
this Act; 21
(25) "Processor agent" means a principal officer, board member, employee, 22
volunteer, or agent of a processor; 23
(26) "Producer" means an entity licensed as such under Sections 16, 17, and 18 of 24
this Act; 25
(27) "Producer agent" means a principal officer, board member, employee, volunteer, 26
or agent of a producer; 27 UNOFFICIAL COPY 23 RS BR 953
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(28) "Qualified patient" means a person who has obtained a written certification for 1
the use of medicinal cannabis from a medicinal cannabis practitioner with whom 2
he or she has a bona fide practitioner-patient relationship; 3
(29) "Raw plant material" means the trichome-covered part of the female plant 4
Cannabis sp. or any mixture of shredded leaves, stems, seeds, and flowers of the 5
Cannabis sp. plant. The term "raw plant material" does not include plant 6
material obtained from industrial hemp as defined in KRS 260.850; 7
(30) "Registered qualified patient" means a qualified patient who has applied for, 8
obtained, and possesses a valid registry identification card or provisional 9
licensure receipt issued by the department; 10
(31) "Registry identification card" means a document issued by the department that 11
identifies a person as a registered qualified patient, visiting qualified patient, or 12
designated caregiver; 13
(32) "Safety compliance facility" means an entity licensed as such under Sections 16, 14
17, and 18 of this Act; 15
(33) "Safety compliance facility agent" means a principal officer, board member, 16
employee, volunteer, or agent of a safety compliance facility; 17
(34) "Seedling" means a medicinal cannabis plant that has no flowers and is not 18
taller than eight (8) inches; 19
(35) "Serious violation" means: 20
(a) Any violation of Sections 1 to 30 of this Act or any administrative regulation 21
promulgated thereunder that is capable of causing death or which causes 22
serious and prolonged disfigurement, prolonged impairment of health, or 23
prolonged use or impairment of the function of any bodily organ; 24
(b) Diversion of medicinal cannabis; or 25
(c) Any act that would constitute a violation of Section 37 of this Act; 26
(36) "Smoking" means the inhalation of smoke produced from the combustion of raw 27 UNOFFICIAL COPY 23 RS BR 953
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plant material when ignited by a flame; 1
(37) "State licensing board" means, respectively, any of the following: 2
(a) The Kentucky Board of Medical Licensure; or 3
(b) The Kentucky Board of Nursing; 4
(38) "Telehealth" has the same meaning as in KRS 211.332; 5
(39) "Use of medicinal cannabis" includes the acquisition, administration, possession, 6
transfer, transportation, or consumption of medicinal cannabis or medicinal 7
cannabis accessories by a cardholder in accordance with Sections 1 to 30 of this 8
Act. The term "use of medicinal cannabis" does not include: 9
(a) Cultivation of marijuana by a cardholder; 10
(b) The use or consumption of marijuana by smoking; or 11
(c) The use of industrial hemp or industrial hemp products as defined in KRS 12
260.850; 13
(40) "Visiting qualified patient" means a person who has registered as such through 14
the department as required under Section 11 of this Act or who possess a valid 15
out-of-state registry identification card; and 16
(41) "Written certification" means a document dated and signed by a medicinal 17
cannabis practitioner, that: 18
(a) States, that in the medicinal cannabis practitioner's professional opinion, 19
the patient may receive medical, therapeutic, or palliative benefit from the 20
use of medicinal cannabis; 21
(b) Specifies the medical condition or conditions for which the medicinal 22
cannabis practitioner believes that the patient may receive medical, 23
therapeutic, or palliative benefit; and 24
(c) Affirms that the medicinal cannabis practitioner has a bona fide 25
practitioner-patient relationship with the patient. 26
SECTION 2. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 27 UNOFFICIAL COPY 23 RS BR 953
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READ AS FOLLOWS: 1
Notwithstanding any provision of law to the contrary: 2
(1) The use of medicinal cannabis by a cardholder shall be considered lawful if done 3
in accordance with Sections 1 to 30 of this Act and any administrative regulations 4
promulgated thereunder; 5
(2) A registered qualified patient or visiting qualified patient shall not be considered 6
to be under the influence of medicinal cannabis solely because of the presence of 7
tetrahydrocannabinol metabolites, including but not limited to cannabinoid 8
carboxy THC, which is also known as THC-COOH; 9
(3) The acquisition, blending, cultivation, delivery, distribution, manufacturing, 10
manipulation, packaging for sale, preparation, possession, sale, testing, 11
transportation, or transfer of medicinal cannabis or medicinal cannabis 12
accessories by a cannabis business or cannabis business agent shall be 13
considered lawful if done in accordance with Sections 1 to 30 of this Act and any 14
administrative regulations promulgated thereunder; 15
(4) A medicinal cannabis practitioner shall not be subject to arrest, prosecution, or 16
penalty in any manner, or denied any right or privilege, including but not limited 17
to a civil penalty or disciplinary action by a state licensing board or by any other 18
occupational or professional licensing board, solely for providing written 19
certifications or for otherwise stating that, in the medicinal cannabis 20
practitioner's professional opinion, a patient may receive medical, therapeutic, or 21
palliative benefit from the use of medicinal cannabis, if done in accordance with 22
Sections 1 to 30 of this Act; 23
(5) An attorney shall not be subject to arrest, prosecution, or penalty in any manner, 24
or denied any right or privilege, including but not limited to a civil penalty or 25
disciplinary action by the Kentucky Court of Justice, Kentucky Bar Association, 26
or by any other professional licensing board, solely for providing an individual or 27 UNOFFICIAL COPY 23 RS BR 953
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cannabis business with legal assistance related to activity that is no longer subject 1
to criminal penalties under state law pursuant to Sections 1 to 30 of this Act; 2
(6) A pharmacist shall not be subject to arrest, prosecution, or penalty in any 3
manner, or denied any right or privilege, including but not limited to a civil 4
penalty or disciplinary action by the Kentucky Board of Pharmacy or by any 5
other professional licensing board, solely for consulting with or providing 6
information with respect to the possible risks or side effects of medicinal 7
cannabis, including any potentially harmful or dangerous interactions between 8
medicinal cannabis and any other drug; 9
(7) No person shall be subject to arrest, prosecution, or penalty in any manner, or 10
denied any right or privilege, including but not limited to a civil penalty or 11
disciplinary action by an occupational or professional licensing board, solely for 12
providing assistance or services, including but not limited to accounting services, 13
security services, or business consulting services, to any individual or cannabis 14
business related to activity that is no longer subject to criminal penalties under 15
state law pursuant to Sections 1 to 30 of this Act; 16
(8) Nothing in subsections (2) to (7) of this section shall be interpreted to prohibit the 17
arrest, prosecution, or imposition of any other penalty arising from but not 18
limited to breach of contract, breach of fiduciary duty, negligence, or engaging in 19
criminal activity that would constitute a felony or misdemeanor; and 20
(9) A registered qualified patient who is injured or defrauded, including by theft or 21
deprivation of the use and benefit of any money, personal property including 22
medicinal cannabis, or articles of value of any kind, by his or her designated 23
caregiver shall have a civil cause of action in Circuit Court to recover the actual 24
damages sustained, together with the cost of the lawsuit, including reasonable 25
fees for the individual's attorney of record. 26
SECTION 3. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 27 UNOFFICIAL COPY 23 RS BR 953
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READ AS FOLLOWS: 1
(1) The Department of Alcoholic Beverage and Cannabis Control is hereby charged 2
with the implementation, operation, oversight, and regulation of the medicinal 3
cannabis program established in Sections 1 to 30 of this Act, and there is hereby 4
created within the department a Division of Medicinal Cannabis and a Division 5
of Alcoholic Beverage and Cannabis Enforcement. The Division of Medicinal 6
Cannabis shall consist of a director and the necessary staff to fulfill its statewide 7
regulatory responsibilities. The director of the Division of Alcoholic Beverage 8
and Cannabis Enforcement shall be responsible for the detection, investigation, 9
and enforcement of infractions of administrative regulations and laws associated 10
with Sections 1 to 30 of this Act. 11
(2) The department shall develop and implement a biennial accreditation process 12
based on evolving continuous quality improvement metrics to ensure best-practice 13
standards. The renewal of cannabis business licenses shall be contingent upon 14
successfully demonstrating certain minimal performance standards through the 15
accreditation process. 16
(3) (a) There is hereby established within the department a Board of Physicians 17
and Advisors which for administrative purposes shall be attached to the 18
department. 19
(b) The board shall consist of: 20
1. Five (5) physicians who are knowledgeable about the medicinal use of 21
cannabis and certified by the appropriate board in one (1) of the 22
following specialties: 23
a. Addiction medicine; 24
b. Anesthesiology; 25
c. Gastroenterology; 26
d. Obstetrics and gynecology; 27 UNOFFICIAL COPY 23 RS BR 953
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e. Ophthalmology; 1
f. Optometry; 2
g. Infectious disease; 3
h. Neurology; 4
i. Oncology; 5
j. Pain management; 6
k. Pain medicine; 7
l. Pediatrics; 8
m. Physical medicine and rehabilitation; or 9
n. Psychiatry; 10
2. Three (3) advanced practice registered nurses who are authorized to 11
prescribe controlled substances under KRS 314.042; 12
3. One (1) pharmacist licensed by the Kentucky Board of Pharmacy; 13
4. Six (6) patient advocates; 14
5. The commissioner of the department, who shall serve as a non-voting 15
ex officio member; and 16
6. The director of the Division of Medicinal Cannabis, who shall serve as 17
a non-voting ex officio member. 18
(c) 1. The commissioner of the department shall appoint members to the 19
board and shall select a chairperson from among the physicians 20
appointed to the board. 21
2. Eight (8) of the members first appointed shall serve for a term of three 22
(3) years, and seven (7) of the members first appointed shall serve for 23
a term of four (4) years. Thereafter, members of the board shall serve 24
for a term of four (4) years and shall be eligible for reappointment. A 25
member of the board whose term has expired may continue to serve 26
until a successor has been appointed. 27 UNOFFICIAL COPY 23 RS BR 953
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3. Members of the board shall serve without compensation, but each 1
member of the board not otherwise compensated for his or her time or 2
expense shall be entitled to reimbursement for his or her actual and 3
necessary expenses in carrying out his or her duties with 4
reimbursement for expenses being made in accordance with 5
administrative regulations relating to travel expenses. 6
(d) The board shall: 7
1. Review and recommend to the department protocols for determining 8
the amount of medicinal cannabis that shall constitute a daily supply 9
of medicinal cannabis, an uninterrupted ten (10) day supply of 10
medicinal cannabis, and an uninterrupted thirty (30) day supply of 11
medicinal cannabis, as well as the amount of raw plant material that 12
medicinal cannabis products are considered equivalent to; 13
2. Review and recommend to the department protocols, evolving 14
continuous quality improvement metrics, and minimal performance 15
standards for the biennial accreditation process of licensed cannabis 16
businesses; 17
3. Review relevant scientific data related to the delta -9 18
tetrahydrocannabinol content limits established in subsection (2)(b) of 19
Section 19 of this Act and make recommendations to the General 20
Assembly regarding revisions to the limits as the board deems 21
appropriate; 22
4. Review relevant scientific data related to the various methods of use 23
and consumption of medicinal cannabis and make recommendations 24
to the General Assembly to approve or restrict certain methods as the 25
board deems appropriate; and 26
5. Perform other duties related to the use of medicinal cannabis upon 27 UNOFFICIAL COPY 23 RS BR 953
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request by the commissioner of the department or the director of the 1
Division of Medicinal Cannabis. 2
(4) No later than March 1 of each year beginning in 2025, the department, in 3
consultation with the University of Kentucky College of Medicine shall submit an 4
annual report to the Legislative Research Commission. The report submitted by 5
the department shall, at a minimum, include: 6
(a) The number of applications and renewals received by the department for 7
registry identification cards for registered qualified patients, visiting 8
qualified patients, and designated caregivers, individually and collectively; 9
(b) The number of applications and renewals for registry identification cards 10
that were approved and denied by the department; 11
(c) The number of registry identification cards revoked by the department for 12
misconduct and the nature of the misconduct; 13
(d) The number of physicians and advanced practice registered nurses 14
authorized to provide written certifications; 15
(e) The number of pharmacists authorized to provide consultation to 16
cardholders; 17
(f) The nature of the medical conditions for which medicinal cannabis 18
practitioners have provided written certifications; 19
(g) The number of applications and renewals received by the department for 20
cannabis business licenses; the number of cannabis business licenses issued 21
for each business type and tier; and the number of cannabis business 22
license applications and renewals that were denied by the department; 23
(h) The number of cannabis business agents associated with each type of 24
cannabis business; 25
(i) An assessment of: 26
1. The ability of cardholders in all areas of the state to obtain timely 27 UNOFFICIAL COPY 23 RS BR 953
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affordable access to medicinal cannabis; 1
2. The evolving continuous quality improvement metrics and minimal 2
performance standards for the biennial accreditation process of 3
licensed cannabis businesses; 4
3. The effectiveness of the cultivators, processors, and producers licensed 5
under this chapter, individually and collectively, in serving the needs 6
of processors, dispensaries, and cardholders, the reasonableness of 7
their fees, whether they are generating any complaints or security 8
problems, and the sufficiency of the number operating to serve 9
processors, dispensaries, and cardholders in the Commonwealth; 10
4. The effectiveness of the dispensaries licensed under this chapter, 11
individually and collectively, in serving the needs of cardholders, 12
including the provision of educational and support services, the 13
reasonableness of their fees, whether they are generating any 14
complaints or security problems, and the sufficiency of the number 15
operating to serve cardholders in the Commonwealth; and 16
5. The effectiveness of the licensed safety compliance facilities licensed 17
under this chapter, individually and collectively, in serving the needs 18
of other cannabis businesses, including the provision of testing and 19
training services, the reasonableness of their fees, whether they are 20
generating any complaints or security problems, and the sufficiency of 21
the number operating to serve other cannabis businesses and 22
cardholders in the Commonwealth; 23
(j) The profits and expenditures by cannabis businesses, individually and 24
collectively; 25
(k) The amount of medicinal cannabis sold per month in the Commonwealth; 26
(l) The total amount of revenue generated from cannabis business licensure 27 UNOFFICIAL COPY 23 RS BR 953
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and cardholder fees for each calendar year and aggregated by prior years; 1
(m) The total cost of enforcement for the medicinal cannabis program at the 2
time of the report, by city, county, and overall; 3
(n) The sufficiency of the regulatory and security safeguards contained in 4
Sections 1 to 30 of this Act and adopted by the department through 5
administrative regulations to ensure that access to and use of medicinal 6
cannabis cultivated and processed in this state are provided only to 7
cardholders; 8
(o) Any recommended additions or revisions to Sections 1 to 30 of this Act or 9
administrative regulations promulgated thereunder, including those relating 10
to security, safe handling, labeling, and nomenclature; 11
(p) The results of any peer-reviewed, scientific research studies regarding the 12
health effects of cannabis; and 13
(q) Any other data requested by the Legislative Research Commission relating 14
to the medicinal cannabis program and Sections 1 to 30 of this Act. 15
(5) The department shall provide the University of Kentucky College of Medicine 16
with all information necessary to allow collaboration with the department on the 17
preparation of this report. The University of Kentucky College of Medicine may 18
also produce its own report regarding the medicinal cannabis program 19
established in Sections 1 to 30 of this Act which, if produced, shall be submitted 20
upon completion to the Legislative Research Commission, the department, and 21
the Governor. 22
(6) The information contained in the report described in subsection (4) of this section 23
shall be presented in a manner that does not disclose any identifying information 24
about cardholders or licensed cannabis businesses. 25
(7) Nothing in Sections 1 to 30 of this Act shall require the department to assume 26
duties in relation to the medicinal cannabis program that are more than 27 UNOFFICIAL COPY 23 RS BR 953
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administrative in nature if federal law or a current and clear directive from the 1
federal government indicates that duties assumed by the department that are 2
more than administrative could result in federal prosecution or invalidation of 3
the medicinal cannabis program established in Sections 1 to 30 of this Act. 4
(8) (a) If the department makes a determination that it is required by Sections 1 to 5
30 of this Act to conduct duties that are more than administrative in nature, 6
then it shall continue to conduct duties that are administrative in nature 7
and designate or enter into a contract, in accordance with KRS Chapter 8
45A, with a qualified nongovernmental entity to conduct any duties required 9
by Sections 1 to 30 of this Act that are more than administrative in nature. 10
The department may reimburse the state for any costs involved in working 11
with outside consultants to implement the program. 12
(b) Notwithstanding paragraph (a) of this subsection, the department may 13
contact with any other government or nongovernmental agency to 14
implement, operate, oversee, and regulate the medicinal cannabis program 15
established in Sections 1 to 30 of this Act. 16
(c) A nongovernmental entity contract pursuant to this subsection shall not 17
own, in part or in whole, any cannabis business in this state or any other, or 18
be owned, in part or in whole, by any cannabis business in this state or any 19
other. 20
SECTION 4. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 21
READ AS FOLLOWS: 22
(1) A registered qualified patient, except as provided in subsection (4) of this section, 23
shall not be subject to arrest, prosecution, or denial of any right or privilege, 24
including but not limited to a civil penalty or disciplinary action by a court or 25
occupational or professional licensing board, for the use of medicinal cannabis, 26
if the registered qualified patient does not possess more than: 27 UNOFFICIAL COPY 23 RS BR 953
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(a) An amount of medicinal cannabis determined by the department to 1
constitute an uninterrupted thirty (30) day supply at his or her residence; 2
(b) An amount of medicinal cannabis in excess of a thirty (30) day supply at his 3
or her residence, in accordance with administrative regulations 4
promulgated pursuant to subsection (1)(c)6. of Section 28 of this Act; or 5
(c) An amount of medicinal cannabis determined by the department to 6
constitute an uninterrupted ten (10) day supply on his or her person, except 7
that an amount greater than a ten (10) day supply may be transported by a 8
registered qualified patient from a dispensary to his or her residence if the 9
medicinal cannabis is contained in a sealed package that requires at least a 10
two (2) step process for initial opening. 11
(2) A visiting qualified patient shall not be subject to arrest, prosecution, or denial of 12
any right or privilege, including but not limited to civil penalty or disciplinary 13
action by a court or occupational or professional licensing board, for the use of 14
medicinal cannabis, if the visiting qualified patient does not possess more than an 15
amount of medicinal cannabis determined by the department to constitute an 16
uninterrupted ten (10) day supply on his or her person. 17
(3) A designated caregiver shall not be subject to arrest, prosecution, or denial of any 18
right or privilege, including but not limited to civil penalty or disciplinary action 19
by a court or occupational or professional licensing board, for: 20
(a) Assisting a registered qualified patient to whom the designated caregiver is 21
connected through the department's registration process with the use of 22
medicinal cannabis if the designated caregiver does not possess more than: 23
1. An amount of medicinal cannabis determined by the department to 24
constitute an uninterrupted thirty (30) day supply at his or her 25
residence for each registered qualified patient to whom the caregiver 26
is connected through the department's registration process; 27 UNOFFICIAL COPY 23 RS BR 953
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2. An amount of medicinal cannabis in excess of a thirty (30) day supply 1
at his or her residence for each registered qualified patient to whom 2
the caregiver is connected through the department's registration 3
process, in accordance with administrative regulations promulgated 4
pursuant to subsection (1)(c)6. of Section 28 of this Act; or 5
3. An amount of medicinal cannabis determined by the department to 6
constitute an uninterrupted ten (10) day supply on his or her person 7
for each registered qualified patient to whom the caregiver is 8
connected through the department's registration process, except that 9
an amount greater than a ten (10) day supply may be transported by a 10
designated caregiver from a dispensary to his or her residence if the 11
medicinal cannabis is contained in a sealed package that requires at 12
least a two (2) step process for initial opening; or 13
(b) Receiving compensation for reasonable costs associated with assisting a 14
registered qualified patient in the use of medicinal cannabis if the 15
designated caregiver is connected to the registered qualified patient through 16
the department's registration process. 17
(4) A registered qualified patient who is under eighteen (18) years of age shall not be 18
permitted to possess, purchase, or acquire medicinal cannabis and shall only 19
engage in the use of medicinal cannabis with the assistance of a designated 20
caregiver who is the registered qualified patient's parent or legal guardian 21
responsible for providing consent for medical treatment. 22
(5) (a) All medicinal cannabis possessed by a cardholder in accordance with 23
subsections (1), (2), and (3) of this section shall be kept in the original 24
container in which the cardholder received the medicinal cannabis from a 25
dispensary. 26
(b) An individual who violates paragraph (a) of this subsection may be a fined 27 UNOFFICIAL COPY 23 RS BR 953
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up to one hundred dollars ($100) per violation. 1
(6) Notwithstanding subsections (1), (2), and (3) of this section and except as 2
provided in administrative regulations promulgated pursuant to subsection 3
(1)(c)6. of Section 28 of this Act: 4
(a) A registered qualified patient shall not be permitted to purchase more 5
medicinal cannabis than the amount determined by the department to 6
constitute an uninterrupted thirty (30) day supply of medicinal cannabis 7
during a given twenty-five (25) day period; 8
(b) A designated caregiver shall not be permitted to purchase more medicinal 9
cannabis than the amount determined by the department to constitute an 10
uninterrupted thirty (30) day supply of medicinal cannabis for each 11
registered qualified patient to whom the caregiver is connected through the 12
department's registration process during a given twenty-five (25) day 13
period; and 14
(c) A visiting qualified patient shall not be permitted to purchase more 15
medicinal cannabis than the amount determined by the department to 16
constitute an uninterrupted ten (10) day supply of medicinal cannabis 17
during a given eight (8) day period. 18
(7) A cardholder shall not be subject to arrest, prosecution, or denial of any right or 19
privilege, including but not limited to a civil penalty or disciplinary action by a 20
court or occupational or professional licensing board, for: 21
(a) Possession of medicinal cannabis that is incidental to the use of medicinal 22
cannabis; 23
(b) Possession of medicinal cannabis accessories; or 24
(c) Transferring medicinal cannabis to a safety facility for testing. 25
(8) No person shall be subject to arrest, prosecution, or denial of any right or 26
privilege, including but not limited to a civil penalty or disciplinary action by a 27 UNOFFICIAL COPY 23 RS BR 953
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court or occupational or professional licensing board, solely for: 1
(a) Selling medicinal cannabis accessories to a cardholder, who is over 2
eighteen (18) years of age, upon presentation of a valid registry 3
identification card issued by the department or, for a visiting qualified 4
patient, a valid out-of-state registry identification card; 5
(b) Being in the presence or vicinity of the use of medicinal cannabis as 6
allowed under Sections 1 to 30 of this Act; or 7
(c) Assisting a registered qualified patient or visiting qualified patient with 8
using or administering medicinal cannabis. For purposes of illustration and 9
not limitation, this includes preparing raw plant material or brewing tea for 10
a registered qualified patient or visiting qualified patient. This does not 11
include providing medicinal cannabis to a patient that the patient did not 12
already possess. 13
SECTION 5. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 14
READ AS FOLLOWS: 15
(1) (a) Any medicinal cannabis, medicinal cannabis accessories, lawful property, 16
or interest in lawful property that is possessed, owned, or used in connection 17
with the use of medicinal cannabis or acts incidental to that use shall not be 18
subject to seizure or forfeiture under KRS 218A.405 to 218A.460. 19
(b) Sections 1 to 30 of this Act shall not prevent the seizure or forfeiture of 20
marijuana exceeding the amounts allowed under Section 4 of this Act or 21
administrative regulations promulgated pursuant to subsection (1)(c)6. of 22
Section 28 of this Act, nor shall it prevent seizure or forfeiture if the basis 23
for that action is unrelated to the use of medicinal cannabis in accordance 24
with Sections 1 to 30 of this Act and any administrative regulation 25
promulgated thereunder. 26
(2) Possession of, or application for, a registry identification card, out-of-state 27 UNOFFICIAL COPY 23 RS BR 953
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registry identification card, or cannabis business license shall not constitute 1
probable cause or reasonable suspicion, nor shall it be used to support the search 2
of the person, property, or home of the person possessing or applying for the 3
registry identification card, out-of-state registry identification card, or cannabis 4
business license. The possession of, or application for, a registry identification 5
card, out-of-state registry identification card, or cannabis business license shall 6
not preclude the existence of probable cause or reasonable suspicion if probable 7
cause or reasonable suspicion exists on other grounds. 8
(3) (a) There shall be a rebuttable presumption that a cardholder is engaged in the 9
lawful use of medicinal cannabis, or in the case of a designated caregiver, 10
assisting with the lawful use of medicinal cannabis, if the cardholder: 11
1. Possesses a valid registry identification card or, in the case of a 12
visiting qualified patient, a valid out-of-state registry identification 13
card; and 14
2. Possesses an amount of medicinal cannabis that does not exceed the 15
amount allowed under Section 4 of this Act or administrative 16
regulations promulgated pursuant to subsection (1)(c)6. of Section 28 17
of this Act. 18
(b) This presumption may be rebutted by a preponderance of evidence that 19
conduct was unrelated to the use of medicinal cannabis or was otherwise in 20
violation of Sections 1 to 30 of this Act. 21
(4) No law enforcement officer employed by an agency which receives state or local 22
government funds shall expend any state or local resources, including the 23
officer’s time, to effect any arrest or seizure of medicinal cannabis, or conduct 24
any investigation, on the sole basis of activity the officer believes to constitute a 25
violation of the federal Controlled Substances Act, 21 U.S.C. sec. 801 et seq., if 26
the officer should have reason to believe that such activity is in compliance with 27 UNOFFICIAL COPY 23 RS BR 953
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Sections 1 to 30 of this Act. 1
SECTION 6. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 2
READ AS FOLLOWS: 3
(1) Sections 1 to 30 of this Act do not authorize any person to engage in, and shall 4
not prevent the imposition of any civil, criminal, or other penalties, including but 5
not limited to criminal prosecution or disciplinary action by the department or an 6
occupational or professional licensing board, for engaging in, the following 7
conduct: 8
(a) Operating, navigating, or being in actual physical control of any aircraft, 9
vehicle, vessel, or any other device known, or hereafter invented, that is 10
powered by machinery and that is or may be used to transport persons or 11
property while under the influence of medicinal cannabis; 12
(b) Consuming medicinal cannabis while operating, navigating, or being in 13
actual physical control of an aircraft, vehicle, vessel, or any other device 14
known, or hereafter invented, that is powered by machinery and that is or 15
may be used to transport persons or property; 16
(c) Possessing medicinal cannabis that is within the operator's arm's reach or 17
that is not contained in a package that requires at least a two (2) step 18
process for initial opening, in accordance with administrative regulations 19
promulgated pursuant to subsection (1)(c)13.a. of Section 28 of this Act, 20
while operating, navigating, or being in actual physical control of an 21
aircraft, vehicle, vessel, or any other device known, or hereafter invented, 22
that is powered by machinery and that is or may be used to transport 23
persons or property; 24
(d) Undertaking any task under the influence of medicinal cannabis, when 25
doing so would constitute negligence or professional malpractice; 26
(e) Possessing medicinal cannabis, or otherwise engaging in the use of 27 UNOFFICIAL COPY 23 RS BR 953
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medicinal cannabis: 1
1. On the grounds of any preschool or primary or secondary school, 2
except as permitted in accordance with policies enacted pursuant to 3
subsection (4)(c) of Section 8 of this Act; 4
2. In any correctional facility; or 5
3. On any property of the federal government; 6
(f) Using marijuana, if that person is not a registered qualified patient or 7
visiting qualified patient; 8
(g) Using or consuming marijuana by smoking; or 9
(h) Cultivating marijuana unless that person is licensed by the department as a 10
cannabis cultivator or cannabis producer pursuant to Sections 16, 17, and 11
18 of this Act or is a cultivator or producer agent. 12
(2) Sections 1 to 30 of this Act shall not prevent enforcement of current laws 13
pertaining to the operation of any aircraft, vehicle, or vessel, including under 14
KRS Chapters 183, 189, 189A, and 235. 15
(3) If a cardholder violates subsection (1)(a) or (b) of this section, in addition to 16
penalties that may be imposed under KRS Chapters 183, 189, 189A, or 235, the 17
cardholder's registry identification card shall be revoked. 18
(4) (a) An individual who violates subsection (1)(g) of this section shall not be 19
considered to be in possession of medicinal cannabis or engaged in the use 20
of medicinal cannabis and may not benefit from the legal protections 21
afforded by Sections 1 to 30 of this Act. 22
(b) The odor or smell of cannabis without other observable indicators shall not 23
constitute conclusive evidence of use or consumption of cannabis by 24
smoking. 25
(c) Notwithstanding paragraph (a) of this subsection: 26
1. If an individual violates subsection (1)(g) of this subsection by using 27 UNOFFICIAL COPY 23 RS BR 953
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or consuming marijuana by smoking while on any form of public 1
transportation, in any public place as defined in KRS 525.010, or in 2
any place of public accommodation, resort, or amusement as defined 3
in KRS 344.130: 4
a. The department may suspend or revoke the individual's registry 5
identification card; and 6
b. The individual may be subject to prosecution under Section 40 of 7
this Act. 8
2. Any individual who violates subsection (1)(g) of this section by using 9
or consuming marijuana by smoking on residential property owned or 10
leased by that individual or with the permission of the owner or lessee 11
of residential property may be fined not more than one hundred 12
dollars ($100) per violation. 13
(5) As used in this section: 14
(a) "Aircraft" has the same meaning as in KRS 183.011; 15
(b) "Vehicle" has the same meaning as in KRS 189.010; and 16
(c) "Vessel" has the same meaning as in KRS 235.010. 17
SECTION 7. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 18
READ AS FOLLOWS: 19
(1) Nothing in Sections 1 to 30 of this Act shall: 20
(a) Require an employer to permit or accommodate the use, consumption, 21
possession, transfer, display, transportation, distribution, sale, or growing of 22
medicinal cannabis in the workplace; 23
(b) Prohibit an employer from implementing policies promoting workplace 24
health and safety by: 25
1. Restricting the use of medicinal cannabis by employees; or 26
2. Restricting or prohibiting the use of equipment, machinery, or power 27 UNOFFICIAL COPY 23 RS BR 953
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tools by an employee who is a registered qualified patient, if the 1
employer believes that the use of such equipment, machinery, or 2
power tools by an employee who is a registered qualified patient poses 3
an unreasonable safety risk; 4
(c) Prohibit an employer from including in any contract provisions that 5
prohibit the use of medicinal cannabis by employees; 6
(d) Subject an employer to liability for wrongful discharge or discrimination; 7
(e) Except as provided in Section 8 of this Act, prohibit a person, employer, 8
corporation, or any other entity who occupies, owns, or controls a property 9
from prohibiting or otherwise regulating the use, consumption, possession, 10
transfer, display, transportation, sale, or growing of medicinal cannabis on 11
or in that property; or 12
(f) Prohibit an employer from establishing and enforcing a drug testing policy, 13
drug-free workplace, or zero-tolerance drug policy. 14
(2) An employee who is discharged from employment for consuming medicinal 15
cannabis in the workplace, working while under the influence of medicinal 16
cannabis, or testing positive for a controlled substance shall not be eligible to 17
receive benefits under KRS Chapter 341, if such actions are in violation of an 18
employment contract or established personnel policy. 19
(3) An employer shall not be penalized or denied any benefit under state law for 20
employing a cardholder. 21
SECTION 8. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 22
READ AS FOLLOWS: 23
(1) Except as provided in Section 7 of this Act, a registered qualified patient or 24
visiting qualified patient who uses medicinal cannabis shall be afforded all the 25
same rights under state and local law, including those guaranteed under KRS 26
Chapter 344, as the individual would have been afforded if he or she were solely 27 UNOFFICIAL COPY 23 RS BR 953
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prescribed pharmaceutical medications, as they pertain to drug testing required 1
by any state or local law. 2
(2) A cardholder otherwise entitled to custody of or visitation time or parenting time 3
with a minor child shall not be denied that right, and there shall be no 4
presumption of dependency, neglect, or abuse, for conduct permitted under 5
Sections 1 to 30 of this Act unless the person's actions in relation to medicinal 6
cannabis created an unreasonable danger to the safety of the minor child as 7
established by clear and convincing evidence. 8
(3) (a) For the purposes of medical care, including organ transplants, a patient’s 9
authorized use of medicinal cannabis is the equivalent of the authorized use 10
of any other medication used at the direction of a practitioner, and shall not 11
constitute the use of an illicit substance or otherwise disqualify a patient 12
from needed medical care. 13
(b) A health facility as defined in KRS 216B.015 may develop policies to allow a 14
patient who is a registered qualified patient or visiting qualified patient to 15
use medicinal cannabis on the premises of the health facility. 16
(4) (a) A school shall not refuse to enroll, or otherwise penalize, a person solely for 17
his or her status as a cardholder, unless failing to do so would violate 18
federal law or regulations and cause the school to lose a monetary or 19
licensing-related benefit under federal law or regulations. 20
(b) A school shall not be penalized or denied any benefit under state law for 21
enrolling a cardholder. 22
(c) Each local board of education and each board of directors of a public 23
charter school shall, within ninety (90) days after the effective date of this 24
section, establish policies to permit a pupil who is a registered qualified 25
patient to consume medicinal cannabis on school property as deemed 26
necessary by the pupil's parent or legal guardian. Policies enacted pursuant 27 UNOFFICIAL COPY 23 RS BR 953
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to this paragraph shall require that medicinal cannabis be administered by 1
a school nurse or under the supervision of appropriate school staff. 2
(5) (a) A landlord shall not refuse to lease to, or otherwise penalize, a person solely 3
for his or her status as a cardholder, unless failing to do so would violate 4
federal law or regulations and cause the landlord to lose a monetary or 5
licensing-related benefit under federal law or regulations. 6
(b) No landlord may be penalized or denied any benefit under state law for 7
leasing to a cardholder. 8
(c) A landlord shall not include in a rental agreement terms and conditions that 9
prohibit the use of medicinal cannabis by a cardholder. 10
SECTION 9. A NEW SECTION OF KRS CHAPTER 218A IS CREATED TO 11
READ AS FOLLOWS: 12
(1) Except as provided in subsection (11) of this section, a physician or an advanced 13
practice registered nurse seeking to become a medicinal cannabis practitioner 14
and provide written certifications for the use of medicinal cannabis shall apply to 15
the same state licensing board that issued his or her professional practice license, 16
on a form prescribed by the state licensing board, for authorization to provide 17
written certifications for the use of medicinal cannabis. 18
(2) (a) A state licensing board shall approve an application for authorization to 19
provide written certifications for the use of medicinal cannabis if the 20
application is complete and meets the requirements established in 21
administrative regulations promulgated by the state licensing board. 22
(b) A state licensing board shall deny an application for authorization to 23
provide written certifications for the use of medicinal cannabis if the 24
applicant has an ownership or investment interest in or compensation 25
agreement with a cannabis business licensed under this chapter. A state 26
licensing board may consult with the department to determine if an 27 UNOFFICIAL COPY 23 RS BR 953
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applicant has an ownership or investment interest in or compensation 1
agreement with a cannabis business. 2
(3) Authorization to provide written certifications for the use of medicinal cannabis 3
granted under this section shall expire and may be renewed in accordance with 4
administrative regulations promulgated by a state licensing board. 5
(4) A medicinal cannabis practitioner may provide a patient with a written 6
certification only after the medicinal cannabis practitioner has: 7
(a) Established a bona fide practitioner-patient relationship with the patient; 8
(b) Diagnosed the patient, or confirmed a diagnosis provided by another health 9
care provider, with a medical condition for which the medicinal cannabis 10
practitioner believes that the patient may receive medical, therapeutic, or 11
palliative benefit from the use of medicinal cannabis; 12
(c) Reviewed a report of information from the electronic system for monitoring 13
controlled substances established in KRS 218A.202 related to the patient for 14
a period of time that covers at least the twelve (12) months immediately 15
preceding the date of the report; 16
(d) Consulted with the patient, or the patient's custodial parent or legal 17
guardian responsible for providing consent to treatment if the patient is a 18
minor child, with respect to the possible risks and side effects associated 19
with medicinal cannabis, including possible interactions between medicinal 20
cannabis and any other drug or medication that the patient is taking at that 21
time; and 22
(e) Obtained the consent of the patient's custodial parent or legal guardian 23
responsible for providing consent to treatment, if the patient is a minor 24
child. 25
(5) A bona fide practitioner-patient relationship may be established following a 26
referral from the patient's primary care provider and may be maintained via 27 UNOFFICIAL COPY 23 RS BR 953
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telehealth. However, a bona fide practitioner-patient relationship shall not be 1
established via telehealth. 2
(6) (a) When issuing a written certification for the use of medicinal cannabis to a 3
patient, the medicinal cannabis practitioner shall use a form prescribed by 4
the department. 5
(b) An initial written certification for the use of medicinal cannabis shall be 6
provided during the course of an in-person examination of the patient by 7
the medicinal cannabis practitioner. Subsequent written certifications, 8
including for the purpose of renewing a registry identification card, may be 9
provided electronically or during the course of a telehealth consultation. 10
(c) For the purpose of applying for a registry identification card, a written 11
certification provided under this section shall be valid for a period of ninety 12
(90) days after the date of issuance by a medicinal cannabis practitioner. 13
The medicinal cannabis practitioner may renew a written certification for 14
not more than three (3) additional periods of not more than ninety (90) days 15
each. Thereafter, the medicinal cannabis practitioner may issue another 16
certification to the patient only after conducting an additional examination 17
of the patient in person or via telehealth. 18
(d) Within twenty-four (24) hours of providing a patient with a written 19
certification for the use of medicinal cannabis, a medicinal cannabis 20
practitioner shall record the issuance of the written certification in the 21
electronic system developed by the department pursuant to subsection (1)(a) 22
of Section 28 of this Act. 23
(7) A medicinal cannabis practitioner shall not: 24
(a) Dispense medicinal cannabis; or 25
(b) Provide a written certification for the use of medicinal cannabis to a family 26
member or to himself or herself. 27 UNOFFICIAL COPY 23 RS BR 953
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(8) Nothing in Sections 1 to 30 of this Act shall prevent a medicinal cannabis 1
practitioner from being sanctioned for: 2
(a) Issuing a written certification without first obtaining authorization to 3
provide written certifications from a state licensing board; 4
(b) Issuing a written certification to a patient with whom the medicinal 5
cannabis practitioner does not have a bona fide practitioner-patient 6
relationship; 7
(c) Failing to properly evaluate a patient's medical history and current medical 8
condition prior to issuing a written certification; 9
(d) Otherwise failing to use good faith in his or her treatment of the patient; or 10
(e) Any other violation of this section or any administrative regulation 11
promulgated thereunder. 12
(9) A state licensing board may suspend or revoke a medicinal cannabis 13
practitioner's authorization to provide written certification for the use of 14
medicinal cannabis and practice license for multiple violations or a serious 15
violation of this section or administrative regulations promulgated thereunder. 16
(10) The state licensing boards shall: 17
(a) No later than January 1, 2024, promulgate administrative regulations, in 18
accordance with KRS Chapter 13A, to establish the following: 19
1. The procedures for applying for authorization to provide written 20
certifications; 21
2. The conditions that must be met to be eligible for authorization to 22
provide written certifications. Administrative regulations promulgated 23
pursuant to this paragraph shall require that an advanced practice 24
registered nurse be authorized to prescribe controlled substances 25
under KRS 314.042 to be eligible to apply for authorization to provide 26
written certifications; 27 UNOFFICIAL COPY 23 RS BR 953
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3. The process and procedures for renewing authorization to provide 1
written certifications; 2
4. Continuing education requirements for medicinal cannabis 3
practitioners who are authorized to provide written certifications; 4
5. The reasons for which authorization to provide written certifications 5
for the use of medicinal cannabis may be suspended or revoked; and 6
6. The minimal standards of care when providing written certifications; 7
(b) On a regular basis, provide the department with the names of all medicinal 8
cannabis practitioners authorized by the state licensing board; and 9
(c) Immediately provide the department with the name of any medicinal 10
cannabis practitioner whose authorization to provide written certifications 11
is suspended or revoked. 12
(11) This section does not apply to a medicinal cannabis practitioner who recommends 13
treatment with cannabis or a drug derived from cannabis under any of the 14
following that are approved by an investigational review board or equivalent 15
entity, the United States Food and Drug Administration, or the National 16
Institutes for Health or any of its cooperative groups or centers under the United 17
States Department of Health and Human Services: 18
(a) A research protocol; 19
(b) A clinical trial; 20
(c) An investigational new drug application; or 21
(d) An expanded access submission. 22
(12) As used in this section, "telehealth" has the same meaning as in KRS 211.332. 23
SECTION 10. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 24
TO READ AS FOLLOWS: 25
(1) Except as provided in subsection (2) of this section, prior to making an initial 26
purchase of medicinal cannabis in this state and at least annually thereafter, a 27 UNOFFICIAL COPY 23 RS BR 953
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cardholder shall be required to complete a consultation with a pharmacist who is 1
authorized by the Kentucky Board of Pharmacy to provide medicinal cannabis 2
consultation services to cardholders. The consultation shall at a minimum cover 3
the possible risk and side effects of medicinal cannabis and any potential drug 4
interactions between medicinal cannabis and any other drug that the registered 5
qualified patient or visiting qualified patient is taking. 6
(2) (a) A designated caregiver shall be permitted to complete the consultation 7
required by subsection (1) of this section on behalf of any registered 8
qualified patient to whom the designated caregiver is connected through the 9
department's registration process. 10
(b) If a registered qualified patient is under eighteen (18) years of age, the 11
registered qualified patient's parent or legal guardian who is responsible for 12
providing consent for medical treatment shall be present for the 13
consultation required by subsection (1) of this section and may complete the 14
consultation on behalf of the registered qualified patient. 15
(3) A pharmacist who wishes to be authorized by the Kentucky Board of Pharmacy to 16
provide medicinal cannabis consultation services to cardholders or to enter into a 17
collaborative agreement with dispensaries, as required by Section 22 of this Act, 18
shall apply to the board on a form prescribed by the board. 19
(4) No later than January 1, 2024, the Kentucky Board of Pharmacy shall, in 20
accordance with KRS Chapter 13A, promulgate administrative regulations to: 21
(a) Establish the application and renewal process and fee for authorization to 22
provide medicinal cannabis consultation services and to enter into a 23
collaborative agreement with dispensaries; 24
(b) Establish continuing education and training requirements for pharmacists 25
who are authorized to provide medicinal cannabis consultation services and 26
to enter into a collaborative agreement with dispensaries; 27 UNOFFICIAL COPY 23 RS BR 953
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(c) Define the standards of care for medicinal cannabis consultation services; 1
(d) Define the nature and scope of a collaborative agreement between a 2
pharmacist and a dispensary, including the process by which a pharmacist 3
and dispensary shall establish a collaborative agreement. The nature and 4
scope of the collaborative agreement shall not require a pharmacist to be 5
present at a dispensary; 6
(e) Establish a fee for medicinal cannabis consultation services which shall not 7
exceed forty dollars ($40) per consultation; and 8
(f) Establish a fee for collaborative agreements between a dispensary and a 9
pharmacist. 10
(5) Members of the Kentucky Board of Pharmacy, its agents, its employees, and any 11
pharmacist authorized by the board to provide medicinal cannabis consultation 12
services to cardholders or to enter into a collaborative agreement with 13
dispensaries shall be immune from suit in any action, civil or criminal, which is 14
based upon any act that is conducted in accordance with this section and 15
administrative regulations promulgated thereunder. 16
SECTION 11. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 17
TO READ AS FOLLOWS: 18
(1) Except as provided in subsection (5) of this section, no person shall possess, 19
purchase, acquire, or otherwise engage or assist in the use of medicinal cannabis 20
in Kentucky without first applying for and receiving a registry identification card 21
for registered qualified patients, designated caregivers, or visiting qualified 22
patients issued by the department. 23
(2) A person shall be eligible to apply for a registry identification card as a registered 24
qualified patient if he or she is a resident of Kentucky, has obtained a written 25
certification issued by a medicinal cannabis practitioner in accordance with 26
Section 9 of this Act and administrative regulations promulgated thereunder, and 27 UNOFFICIAL COPY 23 RS BR 953
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has not been convicted of a disqualifying felony offense. 1
(3) A person shall be eligible to apply for a registry identification card as a 2
designated caregiver if he or she is a resident of Kentucky, is at least twenty-one 3
(21) years of age, has been identified as a designated caregiver on a qualified 4
patient's or registered qualified patient's registry identification card application 5
or renewal form, has not been convicted of a disqualifying felony offense, and 6
has agreed to assist no more than three (3) registered qualified patients with the 7
use of medicinal cannabis. 8
(4) A person shall be eligible to apply for a registry identification card as a visiting 9
qualified patient if he or she is not a resident of Kentucky or has been a resident 10
of Kentucky for less than thirty (30) days, is at least twenty-one (21) years of age, 11
has not been convicted of a disqualifying felony offense, and possesses a valid 12
out-of-state registry identification card. 13
(5) A person with a valid out-of-state registry identification card may use that 14
registry identification card for all purposes established in Sections 1 to 30 of this 15
Act and shall not be required to apply for or receive a visiting qualified patient 16
registry identification card from the department. 17
(6) To apply for or renew a registry identification card, a qualified patient who is 18
eighteen (18) years of age or older shall submit the following, in accordance with 19
administrative regulations promulgated by the department: 20
(a) The name, address, and date of birth of the qualified patient, except that if 21
the applicant is homeless an address where the applicant may be reached 22
shall be provided to the department; 23
(b) A valid written certification issued by a medicinal cannabis practitioner to 24
the qualified patient; 25
(c) The name, address, and telephone number of the qualified patient's 26
medicinal cannabis practitioner; 27 UNOFFICIAL COPY 23 RS BR 953
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(d) The name, address, and date of birth of not more than two (2) individuals 1
chosen by the qualified patient to be designated as a caregiver, if the 2
qualified patient chooses to designate a caregiver; 3
(e) A statement, signed by the qualified patient, pledging not to divert medicinal 4
cannabis to anyone who is not permitted to possess medicinal cannabis 5
pursuant to Sections 1 to 30 of this Act. The statement shall contain a listing 6
of potential penalties, including criminal prosecution, for diverting 7
medicinal cannabis; 8
(f) A statement, signed by the individuals chosen by the qualified patient to be 9
designated as a caregiver, if any, agreeing to be designated as the patient's 10
designated caregiver and pledging not to divert medicinal cannabis to 11
anyone other than the registered qualified patient to whom the caregiver is 12
connected through the department's registration process. The statement 13
shall contain a listing of potential penalties, including criminal prosecution, 14
for diverting medicinal cannabis; and 15
(g) The application or renewal fee for a registry identification card for a 16
qualified patient and the application or renewal fee for a registry 17
identification card for any designated caregiver chosen by the qualified 18
patient. 19
(7) To apply for or renew a registry identification card, for a qualified patient who is 20
under eighteen (18) years of age, the qualified patient's custodial parent or legal 21
guardian with responsibility for health care decisions shall, in addition to the 22
information required under subsection (6) of this section, submit a statement 23
signed by the custodial parent or legal guardian with responsibility for health 24
care decisions attesting to the fact that the custodial parent or legal guardian 25
agrees to: 26
(a) Allow the qualified patient to use medicinal cannabis; 27 UNOFFICIAL COPY 23 RS BR 953
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(b) Serve as the qualified patient's designated caregiver; and 1
(c) Control the acquisition, dosage, and frequency of use of medicinal cannabis 2
by the qualified patient. 3
(8) To apply for or renew a registry identification card, a visiting qualified patient 4
shall submit the following, in accordance with administrative regulations 5
promulgated by the department: 6
(a) The name, address, and date of birth of the visiting qualified patient, except 7
that if the applicant is homeless an address where the applicant may be 8
reached shall be provided to the department; 9
(b) A copy of his or her valid registry identification card or its equivalent that 10
was issued pursuant to the laws of the jurisdiction of the person’s residence; 11
(c) The application or renewal fee for a registry identification card for a 12
visiting qualified patient; and 13
(d) A statement, signed by the visiting qualified patient, pledging not to divert 14
medicinal cannabis to anyone who is not permitted to possess medicinal 15
cannabis pursuant to Sections 1 to 30 of this Act. The statement shall 16
contain a listing of potential penalties, including criminal prosecution, for 17
diverting medicinal cannabis. 18
(9) A registered qualified patient applying to renew a registry identification card 19
issued by the department shall be required to submit to the department a valid 20
written certification issued by a medicinal cannabis practitioner in accordance 21
with Section 9 of this Act and administrative regulations promulgated thereunder. 22
SECTION 12. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 23
TO READ AS FOLLOWS: 24
(1) The department shall establish, implement, and operate a registry identification 25
card program for registered qualified patients, visiting qualified patients, and 26
designated caregivers. 27 UNOFFICIAL COPY 23 RS BR 953
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(2) Registry identification cards shall contain the following: 1
(a) The name of the cardholder; 2
(b) A designation of whether the cardholder is a registered qualified patient, 3
visiting qualified patient, or designated caregiver; 4
(c) The date of issuance and expiration date of the registry identification card; 5
(d) A random alphanumeric identification number of at least ten (10) 6
characters, containing at least four (4) numbers and at least four (4) letters, 7
that is unique to the cardholder; 8
(e) A bar code or other marking that can be scanned electronically; 9
(f) A photograph of the cardholder, if the department’s administrative 10
regulations require one; 11
(g) The telephone number and website address for the electronic verification 12
system developed by the department pursuant to subsection (1)(a) of Section 13
28 of this Act; 14
(h) If the cardholder is a designated caregiver, the random alphanumeric 15
identification number of the registered qualified patient the designated 16
caregiver is receiving the registry identification card to assist; and 17
(i) If the cardholder is under eighteen (18) years of age, a clear and obvious 18
designation or identifier indicating that the cardholder is under eighteen 19
(18) years of age. 20
(3) (a) Except as provided in this subsection, the expiration date for registry 21
identification cards shall be one (1) year after the date of issuance. 22
(b) If a medicinal cannabis practitioner states in the written certification that 23
the qualified patient would benefit from the use of medicinal cannabis until 24
a specified earlier date, then the registry identification card shall expire on 25
that date. 26
(4) The department may, at its discretion, electronically store in the card all of the 27 UNOFFICIAL COPY 23 RS BR 953
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information listed in subsection (2) of this section, along with the address and 1
date of birth of the cardholder, to allow it to be read electronically by law 2
enforcement agents and licensed cannabis businesses. 3
(5) The registry identification card application and renewal fees shall be as follows: 4
(a) A registry identification card for a qualified patient who is a Kentucky 5
resident shall be sixty dollars ($60); 6
(b) A registry identification card for a visiting qualified patient shall be sixty 7
dollars ($60); and 8
(c) A registry identification card for a designated caregiver shall be twenty 9
dollars ($20) per registered qualified patient to whom the designated 10
caregiver is connected unless the designated caregiver is the parent, legal 11
guardian, spouse, or adult child of the qualified patient, in which case there 12
shall be no fee for a registry identification card. 13
(6) (a) The department shall operate a provisional licensure receipt system for 14
registered qualified patients, designated caregivers, and visiting qualified 15
patients that shall be valid for forty-five (45) days, or until a permanent card 16
can be issued, as if it is a registry identification card issued pursuant to this 17
section and Sections 11 and 13 of this Act. This program shall be 18
implemented and operational simultaneously with the department's 19
implementation of the registry identification card program established in 20
this section. A provisional licensure receipt shall contain the following: 21
1. A temporary identification number; 22
2. A bar code or other marking that can be scanned electronically; 23
3. The name of the applicant; 24
4. A designation of whether the cardholder is a registered qualified 25
patient, visiting qualified patient, or designated caregiver; 26
5. If the cardholder is under eighteen (18) years of age, a clear and 27 UNOFFICIAL COPY 23 RS BR 953
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obvious designation or identifier indicating that the cardholder is 1
under eighteen (18) years of age; 2
6. The effective date of the receipt; 3
7. The expiration date of the receipt; 4
8. An indication that the cardholder fee has been paid; 5
9. An indication that the application has been submitted and is 6
apparently complete; and 7
10. The name of the qualified patient's medicinal cannabis practitioner. 8
(b) The licensure receipt system shall be designed so that this provisional 9
licensure receipt shall be produced by the application website upon 10
completion of an application that includes a valid written certification for 11
the use of medicinal cannabis and payment of the cardholder fee. To reduce 12
application errors and processing time, a recommending practitioner or a 13
dispensary may offer a service that allows an applicant to use a computer 14
and printer on the premises of the practitioner's office or dispensary to 15
complete an application and receive a provisional licensure receipt pursuant 16
to this subsection. 17
(c) Notwithstanding any other provision of Sections 1 to 30 of this Act, a valid 18
provisional licensure receipt issued pursuant to this subsection shall convey 19
to the individual whose name appears on the provisional licensure receipt 20
all of the same rights and privileges as a registry identification card issued 21
pursuant to this section and Sections 11 and 13 of this Act and shall be 22
accepted by a cannabis business in place of a registry identification card. 23
(7) All registry identification card fees collected by the department pursuant to 24
subsection (5) of this section shall be forwarded to the medicinal cannabis trust 25
fund established in Section 31 of this Act. 26
SECTION 13. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 27 UNOFFICIAL COPY 23 RS BR 953
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TO READ AS FOLLOWS: 1
(1) Except as provided in subsections (2) to (5) of this section, the department shall: 2
(a) Acknowledge receipt of an application or renewal within fifteen (15) days of 3
receipt, and approve or deny an application or renewal within thirty (30) 4
days of receiving a completed application or renewal application; and 5
(b) Issue registry identification cards to a qualified patient and any individual 6
designated by the qualified patient as a designated caregiver, or a visiting 7
qualified patient within five (5) days of approving the application or 8
renewal. An individual designated as a caregiver shall be issued a 9
designated caregiver registry identification card for each registered 10
qualified patient to whom he or she is connected through the department's 11
registration process. 12
(2) The department shall not issue a registry identification card to a qualified patient 13
who is younger than eighteen (18) years of age unless: 14
(a) The custodial parent or legal guardian with responsibility for health care 15
decisions for the qualified patient consents in writing to: 16
1. Allow the qualified patient's use of medicinal cannabis; 17
2. Serve as the qualified patient's designated caregiver; and 18
3. Control the acquisition of the medicinal cannabis, the dosage, and the 19
frequency of the use by the qualified patient; and 20
(b) The designated caregiver application for the custodial parent or legal 21
guardian with responsibility for health care decisions for the qualified 22
patient is approved. 23
(3) The department may deny an application or renewal for a qualified patient’s or 24
visiting qualified patient's registry identification card for any reason that the 25
department, in the exercise of sound discretion, deems sufficient, including but 26
not limited to if the applicant: 27 UNOFFICIAL COPY 23 RS BR 953
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(a) Did not provide the information or materials required by Section 11 of this 1
Act; 2
(b) Previously had a registry identification card revoked; 3
(c) Provided false or falsified information; or 4
(d) Does not meet the eligibility requirements established in Section 11 of this 5
Act. 6
(4) The department may deny an application or renewal for a designated caregiver's 7
registration card for any reason that the department, in the exercise of sound 8
discretion, deems sufficient, including but not limited to if the applicant: 9
(a) Is already registered as a designated caregiver for three (3) registered 10
qualified patients; 11
(b) Does not meet the eligibility requirements established in Section 11 of this 12
Act; 13
(c) Did not provide the information or materials required by Section 11 of this 14
Act; 15
(d) Previously had a registry identification card revoked; 16
(e) Provided false or falsified information; 17
(f) Was previously convicted of a disqualifying felony offense; or 18
(g) Has applied as a designated caregiver for a qualified patient whose 19
application or renewal for a registry identification card was denied. 20
(5) The department may deny an application or renewal for a visiting qualified 21
patient's registration card for any reason that the department, in the exercise of 22
sound discretion, deems sufficient, including but not limited to if the applicant: 23
(a) Did not provide the information or materials required by Section 11 of this 24
Act; 25
(b) Previously had a registry identification card revoked; 26
(c) Provided false or falsified information; or 27 UNOFFICIAL COPY 23 RS BR 953
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(d) Does not meet the eligibility requirements established in Section 11 of this 1
Act. 2
(6) The department may conduct a criminal background check of any applicant if the 3
criminal background check is conducted solely to determine whether the 4
applicant was previously convicted of a disqualifying felony offense. 5
(7) The department shall notify the registered qualified patient who has designated 6
someone to serve as his or her designated caregiver if the individual designated as 7
a caregiver is denied a registry identification card. 8
(8) The department shall notify the applicant in writing of the denial and reasons for 9
the denial by registered or certified mail at the address given in the application or 10
supplement. The applicant may, within thirty (30) days after the date of the 11
mailing of the department's notice, file a written request for an administrative 12
hearing on the application. The hearing shall be conducted on the application in 13
compliance with the requirements of KRS Chapter 13B. 14
(9) Final orders of the department after administrative hearings shall be subject to 15
judicial review. Jurisdiction and venue for judicial review are vested in the 16
Franklin Circuit Court or the Circuit Court of the county in which the appealing 17
party resides in accordance with KRS 13B.140. 18
SECTION 14. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 19
TO READ AS FOLLOWS: 20
(1) Cardholders shall be required to make the following notifications to the 21
department: 22
(a) A cardholder shall notify the department of any change in his or her name 23
or address; 24
(b) A registered qualified patient shall notify the department within thirty (30) 25
days if he or she ceases to suffer from the medical condition for which a 26
medicinal cannabis practitioner provided a written certification; 27 UNOFFICIAL COPY 23 RS BR 953
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(c) A registered qualified patient shall immediately notify the department if he 1
or she wishes to terminate a designated caregiver relationship with an 2
individual who has been designated as his or her caregiver; 3
(d) A designated caregiver shall notify the department within thirty (30) days if 4
he or she becomes aware that a registered qualified patient to whom the 5
caregiver is connected through the department's registration process has 6
died or has ceased to suffer from the medical condition for which a 7
medicinal cannabis practitioner provided a written certification; and 8
(e) If a cardholder loses his or her registry identification card, he or she shall 9
notify the department within ten (10) days of becoming aware the card has 10
been lost. 11
(2) When a cardholder notifies the department of items listed in paragraphs (b) or (d) 12
of subsection (1) of this section, the cardholder shall, within ten (10) days of 13
notification, return any unused medicinal cannabis products to a licensed 14
dispensary for destruction. 15
(3) When a cardholder notifies the department of items listed in subsection (1) of this 16
section, but remains eligible under Sections 1 to 30 of this Act, the department 17
shall issue the cardholder a new registry identification card with a new random 18
ten (10) character alphanumeric identification number. If the department issues 19
a new registry identification card to a registered qualified patient, the department 20
shall also issue a new registry identification card with a new ten (10) character 21
alphanumeric number to the registered qualified patient's designated caregiver. 22
New registry identification cards issued under this subsection shall be issued by 23
the department within ten (10) days of receiving the updated information and a 24
twenty dollar ($20) fee for each new registry identification card to be issued. 25
(4) If a registered qualified patient ceases to be a registered qualified patient or 26
changes his or her designated caregiver, the department shall promptly notify the 27 UNOFFICIAL COPY 23 RS BR 953
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designated caregiver in writing. The designated caregiver's protections under 1
Sections 1 to 30 of this Act as to that registered qualified patient shall expire 2
fifteen (15) days after notification by the department. 3
(5) If a medicinal cannabis practitioner who provided a written certification notifies 4
the department in writing either that the registered qualified patient has died, 5
ceased to suffer from the medical condition for which a medicinal cannabis 6
practitioner provided a written certification, or that the medicinal cannabis 7
practitioner no longer believes the patient might receive medical, therapeutic, or 8
palliative benefit from the use of medicinal cannabis, the department shall 9
promptly notify the registered qualified patient in writing. The registered 10
qualified patient's protections under Sections 1 to 30 of this Act shall expire 11
fifteen (15) days after notification by the department, and the registered qualified 12
patient shall have fifteen (15) days to dispose of or donate his or her medicinal 13
cannabis to a dispensary. 14
(6) A cardholder who fails to make a notification to the department that is required 15
by this section is subject to a violation, punishable by a penalty of no more than 16
one hundred fifty dollars ($150). 17
(7) All fees and penalties collected pursuant to this section shall be forwarded to the 18
medicinal cannabis trust fund established in Section 31 of this Act. 19
SECTION 15. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 20
TO READ AS FOLLOWS: 21
(1) Any cardholder who sells, distributes, dispenses, or otherwise diverts medicinal 22
cannabis to a person who is not permitted to possess or use medicinal cannabis 23
under Sections 1 to 30 of this Act shall have his or her registry identification card 24
revoked and shall be subject to other penalties, including but not limited to 25
criminal prosecution under this chapter and KRS 138.870 to 138.889. 26
(2) The department may revoke the registry identification card of any cardholder 27 UNOFFICIAL COPY 23 RS BR 953
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who knowingly commits multiple violations or a serious violation of Sections 1 to 1
30 of this Act. 2
(3) The department shall provide notice of revocation, fine, or any other 3
administrative penalty by mailing, via certified mail, the same in writing to the 4
cardholder. The cardholder may, within thirty (30) days after the date of the 5
mailing of the department's notice, file a written request for an administrative 6
hearing regarding the revocation, fine, or other penalty. The hearing shall be 7
conducted in compliance with the requirements of KRS Chapter 13B. 8
(4) Final orders of the department after administrative hearings shall be subject to 9
judicial review. Jurisdiction and venue for judicial review are vested in the 10
Franklin Circuit Court or the Circuit Court of the county in which the appealing 11
party resides in accordance with KRS 13B.140. 12
SECTION 16. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 13
TO READ AS FOLLOWS: 14
(1) No person shall cultivate, process, produce, possess, test, transfer, transport, or 15
sell medicinal cannabis or otherwise operate a cannabis business in this state 16
without first obtaining a license under this section. 17
(2) The department shall create separate licenses allowing persons to operate a 18
cannabis business, pursuant to Sections 1 to 30 of this Act and any administrative 19
regulations promulgated thereunder, as: 20
(a) A cannabis cultivator, for which the license shall be tiered as follows: 21
1. Tier I, for which the initial licensing fee shall be five thousand dollars 22
($5,000); 23
2. Tier II, for which the initial licensing fee shall be ten thousand dollars 24
($10,000); 25
3. Tier III, for which the initial licensing fee shall be twenty-five 26
thousand dollars ($25,000); and 27 UNOFFICIAL COPY 23 RS BR 953
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4. Tier IV, for which the initial licensing fee shall be fifty thousand 1
dollars ($50,000); 2
(b) A cannabis dispensary, for which the initial licensing fee shall be ten 3
thousand dollars ($10,000); 4
(c) A cannabis processor, for which the initial licensing fee shall be twenty 5
thousand dollars ($20,000); 6
(d) A cannabis producer, for which the initial licensing fee shall be seventy-five 7
thousand dollars ($75,000); or 8
(e) A cannabis safety compliance facility, for which the initial licensing fee 9
shall be two thousand five hundred dollars ($2,500). 10
(3) (a) Except as provided in paragraph (b) of this subsection, a cannabis business 11
shall be required to apply for and obtain from the department a separate 12
license for each location it intends to operate. 13
(b) A cannabis business licensed as a producer may operate cultivation and 14
processing activities at separate locations, but shall not operate more than 15
one (1) cultivation and one (1) processing facility per license. 16
(4) (a) A cannabis business license issued under this section and Sections 17 and 17
18 of this Act shall be valid for one (1) year from the date of issuance. The 18
department shall notify each licensee ninety (90) days prior to the date on 19
which the license expires to allow the licensee to begin the renewal process 20
established by the department pursuant to Section 28 of this Act. 21
(b) The renewal of a cannabis business license shall be contingent upon 22
successful achievement of minimal performance standards established by 23
the department as part of the biennial accreditation process established by 24
the department pursuant to Section 3 of this Act. 25
(c) Cannabis business licensure renewal fees shall be: 26
1. Five hundred dollars ($500) plus one percent (1%) of all gross receipts 27 UNOFFICIAL COPY 23 RS BR 953
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during the previous calendar year for a cannabis business that, upon 1
applying for renewal of a cannabis business license, had no more than 2
two million dollars ($2,000,000) of gross receipts during the previous 3
calendar year; 4
2. Two thousand dollars ($2,000) plus one and one-half percent (1.5%) 5
of all gross receipts during the previous calendar year for a cannabis 6
business that, upon applying for renewal of a cannabis business 7
license, had more than two million dollars ($2,000,000) but not more 8
than eight million dollars ($8,000,000) of gross receipts during the 9
previous calendar year; and 10
3. Four thousand dollars ($4,000) plus two percent (2%) of all gross 11
receipts during the previous calendar year for a cannabis business 12
that, upon applying for renewal of a cannabis business license, had 13
over eight million dollars ($8,000,000) of gross receipts during the 14
previous calendar year. 15
(5) All licensure fees collected pursuant to this section shall be forwarded to the 16
medicinal cannabis trust fund established in Section 31 of this Act. 17
(6) The department shall approve a license holder's transfer of a license issued 18
pursuant to this section and Sections 17 and 18 of this Act if the purchaser and 19
any new facilities meet the requirements of Sections 1 to 30 of this Act and any 20
administrative regulations promulgated thereunder. 21
SECTION 17. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 22
TO READ AS FOLLOWS: 23
(1) The department shall create a uniform application form for each of the cannabis 24
business licenses established in Section 16 of this Act. 25
(2) When applying for a license, the applicant shall submit the following in 26
accordance with the department's administrative regulations: 27 UNOFFICIAL COPY 23 RS BR 953
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(a) The proposed legal name of the cannabis business; 1
(b) The proposed physical address of the cannabis business and the global 2
positioning system coordinates for any proposed cultivation activities; 3
(c) The name, address, and date of birth of each principal officer and board 4
member of the cannabis business; 5
(d) Any instances in which a business or not-for-profit entity that any of the 6
prospective board members managed or served on the board of was 7
convicted, fined, censured, or had a registration or license suspended or 8
revoked in any administrative or judicial proceeding; 9
(e) Any other information required by the department to evaluate the applicant 10
pursuant to the competitive application process described in Section 18 of 11
this Act; and 12
(f) A nonrefundable licensure application fee of one hundred dollars ($100). 13
(3) The application fee required under subsection (2) of this section shall be applied 14
to the initial licensing fee if the license is approved; otherwise it shall be retained 15
by the department for administrative purposes. 16
(4) If a cannabis business license application is approved: 17
(a) The cannabis business shall, before it begins operations: 18
1. Submit the initial license fee established in Section 16 of this Act, 19
minus the one hundred dollars ($100) application fee, to the 20
department; and 21
2. If a physical address or the global positioning system coordinates for 22
any cultivation activities had not been finalized when it applied, 23
submit its complete physical address and the global positioning system 24
coordinates for any cultivation activities; and 25
(b) The department shall issue a copy of the license that includes the business’s 26
identification number. The department shall also provide each licensed 27 UNOFFICIAL COPY 23 RS BR 953
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dispensary with contact and access information for the cardholder 1
verification system. 2
SECTION 18. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 3
TO READ AS FOLLOWS: 4
(1) The department shall: 5
(a) Acknowledge receipt of an application for a cannabis business license 6
within fifteen (15) days of receipt; and 7
(b) Provide notification to the cannabis business license applicant as to whether 8
the application for a cannabis business license has been approved or denied 9
within forty-five (45) days of receiving a completed application. 10
(2) The department may deny an application for a cannabis business license for any 11
reason that the department, in the exercise of sound discretion, deems sufficient, 12
including but not limited to: 13
(a) The applicant failed to submit the materials required by Section 17 of this 14
Act, including if the applicant’s plans do not satisfy the security, oversight, 15
or recordkeeping administrative regulations promulgated by the 16
department; 17
(b) The applicant falsifies information on the licensure application; 18
(c) The applicant would not be in compliance with local cannabis business 19
prohibitions enacted pursuant to Section 26 of this Act; 20
(d) The applicant does not meet the requirements of Section 19 of this Act; 21
(e) One (1) or more of the prospective principal officers or board members: 22
1. Has been convicted of a disqualifying felony offense, the provisions of 23
KRS 335B.020 and 335B.030 notwithstanding; 24
2. Has served as a principal officer or board member for a cannabis 25
business that has had its license revoked; 26
3. Is younger than twenty-one (21) years of age; or 27 UNOFFICIAL COPY 23 RS BR 953
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4. Is a practitioner who has been authorized by a state licensing board to 1
provide patients with a written certification; or 2
(f) 1. For a safety compliance facility, one (1) or more of the prospective 3
principal officers or board members is a principal officer or board 4
member of a cultivator, processor, producer, or dispensary licensed to 5
operate in Kentucky. 6
2. For a cultivator, processor, producer, or dispensary, one (1) or more 7
of the prospective principal officers or board members is a principal 8
officer or board member of a safety compliance facility licensed to 9
operate in Kentucky. 10
(3) (a) The department shall not be required to issue more cannabis business 11
licenses than market pressures dictate, except that the department shall not 12
place a limit on the number of licenses issued for safety compliance 13
facilities. 14
(b) If the department receives a greater number of cannabis business license 15
applications in any cannabis business category than it deems necessary to 16
meet the demonstrated or anticipated needs for current or anticipated 17
cardholders, the department shall use an impartial and numerically scored 18
competitive application process developed by the department to evaluate 19
cannabis business license applications. The competitive application process 20
shall, at a minimum, consider the following criteria: 21
1. The suitability of the proposed location or locations, including 22
compliance with any local zoning laws and the geographic 23
convenience to patients throughout the Commonwealth should the 24
applicant be approved; 25
2. The principal officers' and board members’ relevant experience, 26
including any training or professional licensing related to medicine, 27 UNOFFICIAL COPY 23 RS BR 953
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pharmaceuticals, natural treatments, botany, or medicinal cannabis 1
cultivation and preparation, and their experience running any other 2
business or not-for-profit entity; 3
3. The proposed cannabis business's plan for operations and services, 4
including: 5
a. Staffing and training plans; 6
b. A plan to provide employees with a safe, healthy, and 7
economically sustainable working environment; 8
c. Whether it has sufficient capital to operate; and 9
d. The ability to assist with the provision of an adequate supply of 10
medicinal cannabis to the cardholders in its locality, area 11
development district, or the state; 12
4. The sufficiency of the applicant’s plans for recordkeeping; 13
5. The sufficiency of the applicant’s plans for safety, security, and the 14
prevention of diversion, including proposed locations and security 15
devices employed; 16
6. The applicant’s plan for making medicinal cannabis available on an 17
affordable basis to registered qualified patients who are veterans, or 18
who are enrolled in Medicaid or receiving Supplemental Security 19
Income or Social Security disability insurance; 20
7. The applicant’s plan for safe and accurate packaging and labeling of 21
medicinal cannabis, including the applicant’s plan for ensuring that 22
all medicinal cannabis is free of contaminants; and 23
8. The absence of violations by the applicant or one (1) or more of its 24
principal officers of any local, state, or federal tax, criminal, public 25
safety, food safety, discrimination, workplace safety, employment, or 26
other laws relevant to the operation of its business. 27 UNOFFICIAL COPY 23 RS BR 953
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(4) Notwithstanding subsection (1)(b) of this section, if the department utilizes the 1
competitive application process described in subsection (3) of this section, the 2
department shall provide notification to the cannabis business license applicant 3
as to whether the application for a cannabis business license has been approved 4
or denied within ninety (90) days of receiving a completed application. 5
(5) Notwithstanding subsection (3)(a) of this section: 6
(a) No later than one (1) year after the effective date of this section, if a 7
sufficient number of cannabis business license applications has been 8
submitted to the department, the department shall: 9
1. Approve and issue at least: 10
a. Fifteen (15) cannabis cultivator licenses; 11
b. Twenty-five (25) cannabis dispensary licenses; 12
c. Five (5) cannabis processor licenses; and 13
d. Three (3) cannabis producer licenses; and 14
2. Approve and issue a cannabis business license for at least one (1) 15
cannabis dispensary in each of the area development districts as 16
established in KRS 147A.050 on the effective date of this section; and 17
(b) After reviewing a report issued pursuant to Section 3 of this Act, if the 18
department determines that additional cannabis businesses are needed to 19
meet the needs of cardholders either within an area development district or 20
throughout the state, the department shall expand the number of cannabis 21
business licenses issued within an area development district, city, or county 22
and shall issue an appropriate number of cannabis business licenses to 23
ensure that the needs of cardholders can be adequately met. 24
(6) The department shall notify the applicant in writing of a license denial and 25
reasons by registered or certified mail at the address given in the application or 26
supplement. Except for license denials based upon subsection (3)(a) of this 27 UNOFFICIAL COPY 23 RS BR 953
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section, the applicant may, within thirty (30) days after the mailing of the 1
department's notice, file a written request for an administrative hearing on the 2
application. The hearing shall be conducted on the application in compliance 3
with the requirements of KRS Chapter 13B. 4
(7) Final orders of the department after administrative hearings shall be subject to 5
judicial review as provided in KRS 13B.140. Jurisdiction and venue for judicial 6
review are vested in the Franklin Circuit Court or the Circuit Court of the county 7
in which the applicant's business would be located in accordance with KRS 8
13B.140. 9
SECTION 19. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 10
TO READ AS FOLLOWS: 11
(1) A cannabis business licensed under this chapter shall: 12
(a) Comply with Sections 1 to 30 of this Act and any administrative regulations 13
promulgated thereunder by the department; 14
(b) Conduct a criminal background check into the criminal history of each 15
person seeking to become a principal officer, board member, agent, 16
volunteer, or employee before that person begins work. A cannabis business 17
shall not employ, accept as a volunteer, or have as a board member, 18
principal officer, or agent any person who: 19
1. Was convicted of a disqualifying felony offense; or 20
2. Is under twenty-one (21) years of age; 21
(c) Implement appropriate security measures required pursuant to 22
administrative regulations promulgated by the department in accordance 23
with Section 28 of this Act to deter and prevent the theft or diversion of 24
medicinal cannabis and unauthorized entrance into areas containing 25
medicinal cannabis; 26
(d) Demonstrate sufficient capital such that it can establish its business and 27 UNOFFICIAL COPY 23 RS BR 953
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meet the needs for its type of cannabis business; 1
(e) Display its license on the premises at all times; and 2
(f) Only acquire, possess, cultivate, process, manufacture, deliver, transfer, 3
transport, supply, sell, or dispense medicinal cannabis: 4
1. For the purposes of distributing medicinal cannabis to cardholders 5
who possess a valid registry identification card issued by the 6
department, or for visiting qualified patients, a valid out-of-state 7
registry identification card; and 8
2. Cultivated and processed by a cannabis business licensed under this 9
chapter. 10
(2) A cannabis business licensed under Section 16, 17, and 18 of this Act shall not: 11
(a) Be located within one thousand (1,000) feet of an existing elementary or 12
secondary school or a day-care center; 13
(b) Acquire, possess, cultivate, process, manufacture, deliver, transfer, 14
transport, supply, dispense, or sell: 15
1. Raw plant material with a delta-9 tetrahydrocannabinol content of 16
more than thirty-five percent (35%); 17
2. Medicinal cannabis products intended for oral consumption as an 18
edible, oil, or tincture with more than ten (10) milligrams of delta-9 19
tetrahydrocannabinol per serving; 20
3. Any medicinal cannabis product not described in subparagraph 1. or 21
2. of this paragraph with a delta-9 tetrahydrocannabinol content of 22
more than seventy percent (70%); or 23
4. Any medicinal cannabis product that contains vitamin E acetate; 24
(c) Permit a person under eighteen (18) years of age to enter or remain on the 25
premises of a cannabis business; 26
(d) Permit a person who is not a cardholder to enter or remain on the premises 27 UNOFFICIAL COPY 23 RS BR 953
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of a cannabis business, except in accordance with subsection (6) of this 1
section; 2
(e) Employ, have as a board member, or be owned by, in part or in whole, a 3
medicinal cannabis practitioner who has been authorized by a state 4
licensing board to provide patients with written certifications; 5
(f) Advertise medicinal cannabis sales in print, broadcast, online, by paid in-6
person solicitation of customers, or by any other advertising device as 7
defined in KRS 177.830, except that this paragraph shall not prevent 8
appropriate signs on the property of a licensed cannabis business, listings in 9
business directories including phone books, listings in trade or medical 10
publications, or sponsorship of health or not-for-profit charity or advocacy 11
events; or 12
(g) Conduct any other business on the licensed premises. 13
(3) The operating documents of a cannabis business shall include procedures for its 14
oversight and procedures to ensure accurate recordkeeping and inventory 15
control. 16
(4) When transporting medicinal cannabis on behalf of a cannabis business that is 17
permitted to transport it, a cannabis business agent shall have: 18
(a) A copy of the cannabis business license for the business that employs the 19
agent; 20
(b) Documentation that specifies the amount of medicinal cannabis being 21
transported and the date on which it is being transported; and 22
(c) The cannabis business license number and telephone number of any other 23
cannabis business receiving or otherwise involved in the transportation of 24
the medicinal cannabis. 25
(5) The cultivation of medicinal cannabis for cannabis businesses licensed in this 26
state shall only be done by cultivators and producers licensed under this chapter 27 UNOFFICIAL COPY 23 RS BR 953
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and shall take place in an enclosed, locked facility which can be accessed by only 1
cannabis business agents working on behalf of the cultivator or producer at the 2
physical address or global positioning system coordinates provided to the 3
department during the license application process. 4
(6) A person who is at least eighteen (18) years of age but not a cardholder may be 5
allowed to enter and remain on the premises of a cannabis business if: 6
(a) The person is present at the cannabis business to perform contract work, 7
including but not limited to electrical, plumbing, or security maintenance, 8
that does not involve handling medicinal cannabis; or 9
(b) The person is a government employee and is at the cannabis business in the 10
course of his or her official duties. 11
SECTION 20. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 12
TO READ AS FOLLOWS: 13
(1) Cannabis businesses shall be subject to reasonable inspection by the department 14
pursuant to the department's procedures or administrative regulations. The 15
department may inspect any licensed cannabis business premises without having 16
to first obtain a search warrant. 17
(2) Except as provided in Section 22 of this Act, the department may issue a civil fine 18
of up to ten thousand dollars ($10,000) to a cannabis business for a violation of 19
Sections 1 to 30 of this Act or any administrative regulations promulgated 20
thereunder. All fines collected pursuant to this section shall be forwarded to the 21
medicinal cannabis trust fund established in Section 31 of this Act. 22
(3) The department may, on its own motion or on complaint, after investigation and 23
opportunity for a public hearing at which the cannabis business has been 24
afforded an opportunity to appear and be heard pursuant to KRS Chapter 13B, 25
suspend or revoke a cannabis business license for multiple violations or a serious 26
violation of Sections 1 to 30 of this Act or any administrative regulations 27 UNOFFICIAL COPY 23 RS BR 953
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promulgated thereunder by the licensee or any of its agents. A suspension shall 1
not be for a period of time longer than six (6) months. 2
(4) The department shall provide notice of suspension, revocation, fine, or other 3
penalty, as well as the required notice of the hearing, by mailing, via certified 4
mail, the same in writing to the cannabis business at the address on the license. 5
The cannabis business may, within thirty (30) days after the date of the mailing of 6
the department's notice, file a written request for an administrative hearing 7
regarding the suspension, revocation, fine, or other penalty. The hearing shall be 8
conducted in compliance with the requirements of KRS Chapter 13B. 9
(5) Final orders of the department after administrative hearings shall be subject to 10
judicial review. Jurisdiction and venue for judicial review are vested in the 11
Circuit Court of the county in which the cannabis business is physically located. 12
(6) A cultivator may continue to cultivate and possess cannabis plants during a 13
suspension, but it shall not transfer or sell medicinal cannabis during a 14
suspension. 15
(7) A dispensary may continue to possess its existing medicinal cannabis inventory 16
during a suspension, but it shall not acquire additional medicinal cannabis, or 17
dispense, transfer, or sell medicinal cannabis during a suspension. 18
(8) A processor may continue to process and possess its existing medicinal cannabis 19
inventory during a suspension, but it shall not acquire additional medicinal 20
cannabis, or dispense, transfer, or sell medicinal cannabis products during a 21
suspension. 22
(9) A producer may continue to cultivate, process, and possess cannabis plants and 23
its existing medicinal cannabis inventory during a suspension, but it shall not 24
acquire additional medicinal cannabis, or dispense, transfer, or sell medicinal 25
cannabis during a suspension. 26
(10) A safety compliance facility may continue to possess medicinal cannabis during a 27 UNOFFICIAL COPY 23 RS BR 953
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suspension, but it shall not receive any new medicinal cannabis, test or otherwise 1
analyze medicinal cannabis, or transfer or transport medicinal cannabis during a 2
suspension. 3
SECTION 21. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 4
TO READ AS FOLLOWS: 5
(1) A cultivator or cultivator agent acting on behalf of a cultivator shall not be 6
subject to prosecution under state or local law, to search or inspection except by 7
the department pursuant to Section 20 of this Act, or to seizure or penalty in any 8
manner, or be denied any right or privilege, including but not limited to civil 9
penalty or disciplinary action by a court or business licensing board, for acting 10
pursuant to Sections 1 to 30 of this Act and the department's administrative 11
regulations promulgated thereunder for: 12
(a) Acquiring, possessing, planting, cultivating, raising, harvesting, trimming, 13
or storing cannabis seeds, seedlings, plants, or raw plant material; 14
(b) Delivering, transporting, transferring, supplying, or selling raw plant 15
material or related supplies to other licensed cannabis businesses in this 16
state; or 17
(c) Selling cannabis seeds or seedlings to similar entities that are licensed to 18
cultivate cannabis in this state or in any other jurisdiction. 19
(2) Cultivators and cultivator agents acting on behalf of a cultivator shall: 20
(a) Only deliver raw plant material to a licensed processor, licensed producer, 21
licensed safety compliance facility, or licensed dispensary for fair market 22
value; 23
(b) Only deliver raw plant material to a licensed dispensary, processor, or 24
producer after it has been checked by a safety compliance facility agent for 25
cannabinoid contents and contaminants in accordance with administrative 26
regulations promulgated by the department; 27 UNOFFICIAL COPY 23 RS BR 953
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(c) Not supply a dispensary with more than the amount of raw plant material 1
reasonably required by a dispensary; and 2
(d) Not deliver, transfer, or sell raw plant material with a delta-9 3
tetrahydrocannabinol content of more than thirty-five percent (35%) to a 4
licensed dispensary, processor, or producer. 5
(3) (a) A Tier I cultivator shall not exceed a growth area of two thousand five 6
hundred (2,500) square feet. 7
(b) A Tier II cultivator shall not exceed a growth area of ten thousand (10,000) 8
square feet. 9
(c) A Tier III cultivator shall not exceed a growth area of twenty-five thousand 10
(25,000) square feet. 11
(d) A Tier IV cultivator shall not exceed a growth area of fifty thousand 12
(50,000) square feet. 13
SECTION 22. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 14
TO READ AS FOLLOWS: 15
(1) A dispensary or dispensary agent acting on behalf of a dispensary shall not be 16
subject to prosecution under state or local law, to search or inspection except by 17
the department pursuant to Section 20 of this Act, to seizure or penalty in any 18
manner, or be denied any right or privilege, including but not limited to a civil 19
penalty or disciplinary action by a court or business licensing board, for acting 20
pursuant to Sections 1 to 30 of this Act and the department's administrative 21
regulations for: 22
(a) Acquiring or possessing medicinal cannabis from a cultivator, processor, or 23
producer in this state; 24
(b) Acquiring or possessing medicinal cannabis accessories or educational 25
material; 26
(c) Supplying, selling, dispensing, distributing, or delivering medicinal 27 UNOFFICIAL COPY 23 RS BR 953
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cannabis, medicinal cannabis accessories, and educational material to 1
cardholders or other dispensaries; 2
(d) Selling cannabis seeds to similar entities that are licensed to cultivate 3
cannabis in this state or in any other jurisdiction; or 4
(e) Acquiring, accepting, or receiving medicinal cannabis products from a 5
cardholder, except that a dispensary may not offer anything of monetary 6
value in return for medicinal cannabis received from a cardholder. Any 7
medicinal cannabis received by a dispensary under this paragraph or 8
pursuant to Section 14 of this Act shall be destroyed by the dispensary or its 9
agents and shall not be sold, dispensed, or distributed to another 10
cardholder. 11
(2) A dispensary or dispensary agent acting on behalf of a dispensary shall: 12
(a) Maintain records that include specific notations of the amount of medicinal 13
cannabis being dispensed to a cardholder and whether it was dispensed 14
directly to a registered qualified patient or visiting qualified patient, or to a 15
registered qualified patient's designated caregiver. Each entry shall include 16
the date and time the medicinal cannabis was dispensed. The data required 17
to be recorded by this paragraph shall be entered into the electronic system 18
developed by the department pursuant to subsection (1)(a) of Section 28 of 19
this Act in accordance with administrative regulations promulgated by the 20
department for the record of medicinal cannabis dispensing; 21
(b) Only dispense or sell medicinal cannabis after it has been checked by a 22
safety compliance facility agent for cannabinoid contents and contaminants 23
in accordance with administrative regulations promulgated by the 24
department; 25
(c) Only dispense or sell medicinal cannabis to a registered qualified patient, 26
visiting qualified patient, or designated caregiver after making a diligent 27 UNOFFICIAL COPY 23 RS BR 953
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effort to verify: 1
1. That the registry identification card, or its equivalent for a visiting 2
qualified patient, presented to the dispensary is valid, including by 3
checking the verification system, if it is operational, or other 4
department-designated databases; 5
2. That the person presenting the registry identification card, or its 6
equivalent for a visiting qualified patient, is at least eighteen (18) 7
years of age and is the person identified on the registry identification 8
card, or its equivalent, by examining at least one (1) other form of 9
government-issued photo identification; 10
3. That the person presenting the registry identification card, or its 11
equivalent for a visiting qualified patient, has consulted with a 12
pharmacist as required by Section 10 of this Act; and 13
4. The amount of medicinal cannabis the person is legally permitted to 14
purchase at the time of verification pursuant to subsection (3) of 15
Section 4 of this Act by checking the electronic system developed by 16
the department pursuant to subsection (1)(a) of Section 28 of this Act, 17
if it is operational, or other department-designated databases; 18
(d) Not acquire, possess, dispense, sell, offer for sale, transfer, or transport: 19
1. Raw plant material with a delta-9 tetrahydrocannabinol content of 20
more than thirty-five percent (35%); 21
2. Medicinal cannabis products intended for oral consumption as an 22
edible, oil, or tincture with more than ten (10) milligrams of delta-9 23
tetrahydrocannabinol per serving; 24
3. Any medicinal cannabis product not described in subparagraph 1. or 25
2. of this paragraph with a delta-9 tetrahydrocannabinol content of 26
more than seventy percent (70%); or 27 UNOFFICIAL COPY 23 RS BR 953
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4. Any medicinal cannabis product that contains vitamin E acetate; 1
(e) Not acquire medicinal cannabis from any person other than a cannabis 2
business licensed under this chapter, or an agent thereof, a registered 3
qualified patient, or a designated caregiver; 4
(f) Not sell or dispense medicinal cannabis products intended for consumption 5
by vaporizing to a cardholder who is less than twenty-one (21) years of age; 6
(g) Not dispense or sell medicinal cannabis to a minor; 7
(h) Not dispense or sell more medicinal cannabis to a cardholder than he or she 8
is legally permitted to purchase at the time of the transaction; 9
(i) Not rent office space to a practitioner; and 10
(j) Not conduct any business unrelated to dispensing or selling medicinal 11
cannabis and medicinal cannabis accessories on the licensed premises. 12
(3) A dispensary shall be required to establish and maintain a collaborative 13
agreement, as described in Section 10 of this Act, with a pharmacist authorized by 14
the Kentucky Board of Pharmacy to engage in a collaborative agreement with a 15
dispensary. 16
(4) (a) A dispensary may operate a delivery service for cardholders and may deliver 17
medicinal cannabis, medicinal cannabis accessories, and educational 18
material to cardholders at the address identified on the cardholder's registry 19
identification. 20
(b) All delivery services operated or offered by a dispensary shall comply with 21
administrative regulations promulgated by the department pursuant to this 22
section and Section 28 of this Act. 23
(5) If a dispensary fails to comply with subsection (2)(c) of this section, the 24
department may issue the dispensary a civil fine of up to fifty thousand dollars 25
($50,000), except that the fine shall be one hundred thousand dollars ($100,000) 26
if the person purchasing or attempting to purchase medicinal cannabis is a 27 UNOFFICIAL COPY 23 RS BR 953
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minor. All fines collected pursuant to this subsection shall be forwarded to the 1
medicinal cannabis trust fund established in Section 31 of this Act. 2
(6) If a dispensary or dispensary agent fails to comply with subsection (2)(c), (d), (e), 3
(f), or (g) of this section, the dispensary and dispensary agent are liable in a civil 4
action for compensatory and punitive damages and reasonable attorney's fees to 5
any person or the representative of the estate of any person who sustains injury, 6
death, or loss to person or property as a result of the failure to comply with 7
subsection (2)(c), (d), (e), (f) or (g) of this section. In any action under this 8
subsection, the court may also award any injunctive or equitable relief that the 9
court considers appropriate. 10
SECTION 23. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 11
TO READ AS FOLLOWS: 12
(1) A processor or processor agent acting on behalf of a processor shall not be 13
subject to prosecution under state or local law, to search or inspection except by 14
the department pursuant to Section 20 of this Act, to seizure or penalty in any 15
manner, or be denied any right or privilege, including but not limited to civil 16
penalty or disciplinary action by a court or business licensing board, for acting 17
pursuant to Sections 1 to 30 of this Act and the department's administrative 18
regulations for: 19
(a) Acquiring or purchasing raw plant material from a cultivator, processor, or 20
producer in this state; 21
(b) Possessing, processing, preparing, manufacturing, manipulating, blending, 22
preparing, or packaging medicinal cannabis; 23
(c) Transferring, transporting, supplying, or selling medicinal cannabis and 24
related supplies to other cannabis businesses in this state; or 25
(d) Selling cannabis seeds or seedlings to similar entities that are licensed to 26
cultivate cannabis in this state or in any other jurisdiction. 27 UNOFFICIAL COPY 23 RS BR 953
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(2) A processor licensed under this section shall not possess, process, produce, or 1
manufacture: 2
(a) Raw plant material with a delta-9 tetrahydrocannabinol content of more 3
than thirty-five percent (35%); 4
(b) Medicinal cannabis products intended for oral consumption as an edible, 5
oil, or tincture with more than ten (10) milligrams of delta-9 6
tetrahydrocannabinol per serving; 7
(c) Any medicinal cannabis product not described in paragraph (a) or (b) of 8
this subsection with a delta-9 tetrahydrocannabinol content of more than 9
seventy percent (70%); or 10
(d) Any medicinal cannabis product that contains vitamin E acetate. 11
SECTION 24. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 12
TO READ AS FOLLOWS: 13
(1) A producer or producer agent acting on behalf of a producer shall not be subject 14
to prosecution under state or local law, to search or inspection except by the 15
department pursuant to Section 20 of this Act, to seizure or penalty in any 16
manner, or be denied any right or privilege, including but not limited to civil 17
penalty or disciplinary action by a court or business licensing board, for acting 18
pursuant to Sections 1 to 30 of this Act and the department's administrative 19
regulations for: 20
(a) Acquiring, possessing, planting, cultivating, raising, harvesting, trimming, 21
or storing cannabis seeds, seedlings, plants, or raw plant material; 22
(b) Delivering, transporting, transferring, supplying, or selling raw plant 23
material, medicinal cannabis products, or related supplies to other licensed 24
cannabis businesses in this state; 25
(c) Selling cannabis seeds or seedlings to similar entities that are licensed to 26
cultivate cannabis in this state or in any other jurisdiction; 27 UNOFFICIAL COPY 23 RS BR 953
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(d) Acquiring or purchasing raw plant material from a cultivator in this state; 1
or 2
(e) Possessing, processing, preparing, manufacturing, manipulating, blending, 3
preparing, or packaging medicinal cannabis; 4
(2) Producers and producer agents acting on behalf of a producer shall: 5
(a) Only deliver raw plant material to a licensed processor, licensed producer, 6
licensed safety compliance facility, or licensed dispensary for fair market 7
value; 8
(b) Only deliver raw plant material to a licensed dispensary, processor, or 9
producer after it has been checked by a safety compliance facility agent for 10
cannabinoid contents and contaminants in accordance with administrative 11
regulations promulgated by the department; 12
(c) Not supply a dispensary with more than the amount of raw plant material 13
reasonably required by a dispensary; and 14
(d) Be limited to an indoor cannabis growth area of fifty thousand (50,000) 15
square feet. 16
(3) A producer licensed under this section shall not possess, process, produce, or 17
manufacture: 18
(a) Raw plant material with a delta-9 tetrahydrocannabinol content of more 19
than thirty-five percent (35%); 20
(b) Medicinal cannabis products intended for oral consumption as an edible, 21
oil, or tincture with more than ten (10) milligrams of delta-9 22
tetrahydrocannabinol per serving; 23
(c) Any medicinal cannabis product not described in paragraph (a) or (b) of 24
this subsection with a delta-9 tetrahydrocannabinol content of more than 25
seventy percent (70%;) or 26
(d) Any medicinal cannabis product that contains vitamin E acetate. 27 UNOFFICIAL COPY 23 RS BR 953
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SECTION 25. A NEW SECTION OF KRS CHAPTER 218A IS CREAT ED 1
TO READ AS FOLLOWS: 2
A safety compliance facility or safety compliance facility agent acting on behalf of a 3
safety compliance facility shall not be subject to prosecution, search except by the 4
department pursuant to Section 20 of this Act, seizure, or penalty in any manner, or be 5
denied any right or privilege, including but not limited to civil penalty or disciplinary 6
action by a court or business licensing board, for acting in accordance with Sections 1 7
to 30 of this Act and the department's administrative regulations to provide the 8
following services: 9
(1) Acquiring or possessing medicinal cannabis obtained from cardholders or 10
cannabis businesses in this state; 11
(2) Returning the medicinal cannabis to cardholders or cannabis businesses in this 12
state; 13
(3) Transporting medicinal cannabis that was produced by cannabis businesses in 14
this state; 15
(4) The production or sale of approved educational materials related to the use of 16
medicinal cannabis; 17
(5) The production, sale, or transportation of equipment or materials other than 18
medicinal cannabis, including but not limited to lab equipment and packaging 19
materials that are used by cannabis businesses and cardholders, to cardholders or 20
cannabis businesses licensed under this chapter; 21
(6) Testing of medicinal cannabis produced in this state, including testing for 22
cannabinoid content, pesticides, mold, contamination, vitamin E acetate, and 23
other prohibited additives; 24
(7) Training cardholders and cannabis business agents. Training may include but 25
need not be limited to: 26
(a) The safe and efficient cultivation, harvesting, packaging, labeling, and 27 UNOFFICIAL COPY 23 RS BR 953
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distribution of medicinal cannabis; 1
(b) Security and inventory accountability procedures; and 2
(c) Up-to-date scientific and medical research findings related to medicinal use 3
of cannabis; 4
(8) Receiving compensation for actions allowed under this section; and 5
(9) Engaging in any non-cannabis-related business activities that are not otherwise 6
prohibited or restricted by state law. 7
SECTION 26. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 8
TO READ AS FOLLOWS: 9
(1) For the purposes of this section, "local government" means a city, county, urban-10
county government, consolidated local government, charter county government, 11
or unified local government. 12
(2) A local government may: 13
(a) Enact ordinances, not in conflict with Sections 1 to 30 of this Act or with 14
the department's administrative regulations, regulating the time, place, and 15
manner of cannabis business operations, except that a local government 16
shall not enact ordinances that impose an undue burden or make cannabis 17
business operations unreasonable or impractical; 18
(b) Prohibit all cannabis business operations within its territory through the 19
passage of an ordinance; or 20
(c) Enact resolutions directing that the question of prohibiting cannabis 21
businesses from operating within its territory be submitted to the voters of 22
its territory at the next regular election pursuant to subsection (5)(j) of this 23
section. 24
(3) If a county, urban-county government, consolidated local government, charter 25
county government, or unified local government prohibits all cannabis business 26
operations, the legislative body of a city located within the county, urban-county 27 UNOFFICIAL COPY 23 RS BR 953
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government, consolidated local government, charter county government, or 1
unified local government may: 2
(a) Approve cannabis business operations within the limits of the city through 3
the passage of an ordinance; or 4
(b) Enact resolutions directing that the question of allowing cannabis 5
businesses to operate within the limits of the city be submitted to the voters 6
who are eligible to vote in that city's elections at the next regular election 7
pursuant to subsection (5)(j) of this section. 8
(4) If a local government legislative body with jurisdiction prohibits cannabis 9
business operations through the passage of an ordinance, a public question that 10
is initiated by petition and that proposes allowing a cannabis business to operate 11
within the affected territory is authorized. 12
(5) A public question that is initiated by petition and is authorized by subsection (4) 13
of this section shall be submitted to the voters within the affected territory at the 14
next regular election by complying with the following requirements: 15
(a) Before a petition for submission of the proposal may be presented for 16
signatures, an intent to circulate the petition, including a copy of the 17
unsigned petition, shall be filed with the county clerk of the affected 18
territory by any person or group of persons seeking the submission of the 19
public question. The statement of intent shall include the addresses of the 20
person or group of persons and shall specify the person or group of persons, 21
as well as the address, to whom all notices are to be sent. Within ten (10) 22
days after the intent to circulate the petition is filed, the county clerk shall 23
deliver a copy of the intent to circulate the petition, including a copy of the 24
unsigned petition, to the legislative body of the affected territory; 25
(b) The petition shall set out in full the following question: "Are you in favor of 26
the sale of medicinal cannabis at a licensed dispensary and the operation of 27 UNOFFICIAL COPY 23 RS BR 953
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other cannabis businesses in (affected territory)?"; 1
(c) The petition for the submission of the proposal shall be signed by a number 2
of constitutionally qualified voters of the territory to be affected equal to five 3
percent (5%) of registered voters for the affected territory; 4
(d) Each signature shall be executed in ink or indelible pencil and shall be 5
followed by the legibly printed name of each voter, followed by the voter's 6
residence address, year of birth, and the correct date upon which the voter's 7
name was signed; 8
(e) No petition for the submission of the proposal shall be circulated for more 9
than six (6) months prior to its filing; 10
(f) After a petition for the submission of the proposal has received no fewer 11
than the number of qualifying signatures required by paragraph (c) of this 12
subsection, the signed petition shall be filed with the county clerk. When it 13
is filed, each sheet of the petition shall have an affidavit executed by the 14
circulator stating that he or she personally circulated the sheet, the number 15
of signatures thereon, that all signatures were affixed in his or her 16
presence, that he or she believes them to be the genuine signatures of 17
registered voters within the affected territory, and that each signer had an 18
opportunity before signing to read the full text of the proposal; 19
(g) No signer of the petition may withdraw his or her name or have it taken 20
from the petition after the petition has been filed. If the name of any person 21
has been placed on the petition for submission of the public question 22
without that person's authority, the person may, at any time prior to 23
certification of sufficiency of the petition by the county clerk as required by 24
paragraph (h) of this subsection, request the removal of his or her name by 25
the county board of elections and, upon proof that the person's name was 26
placed on the petition without his or her authority, the person's name and 27 UNOFFICIAL COPY 23 RS BR 953
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personal information shall be eliminated, and he or she shall not be counted 1
as a petitioner; 2
(h) Within thirty (30) days after the petition is filed, the county clerk shall 3
complete a certificate as to its sufficiency or, if it is insufficient, specifying 4
the particulars of the insufficiency, and shall send a copy to the person or 5
persons specified in the statement of intent to receive all notices and to the 6
legislative body of the affected territory, all by registered mail. A petition 7
certified insufficient for lack of the required number of valid signatures 8
may be amended once by filing a supplemental petition upon additional 9
sheets within thirty (30) days after receiving the certificate of insufficiency. 10
The supplemental petition shall comply with the requirements applicable to 11
the original petition and, within ten (10) days after it is filed, the county 12
clerk shall complete a certificate as to the sufficiency of the petition as 13
amended and promptly send a copy of the certificate to the person or 14
persons specified to receive all notices and to the legislative body of the 15
affected territory by registered mail; 16
(i) A final determination as to the sufficiency of a petition shall be subject to 17
review in the Circuit Court of the county of the affected territory and shall 18
be limited to the validity of the county clerk's determination. A final 19
determination of insufficiency shall not prejudice the filing of a new 20
petition for the same purpose; and 21
(j) If, not later than the second Tuesday in August preceding the day 22
established for a regular election, the county clerk has certified that a 23
petition is sufficient or has received a local government resolution pursuant 24
to subsection (2) or (3) of this section, the county clerk shall have prepared 25
to place before the voters of the affected territory at the next regular election 26
the question, which shall be "Are you in favor of the sale of medicinal 27 UNOFFICIAL COPY 23 RS BR 953
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cannabis at a licensed dispensary and the operation of other cannabis 1
businesses in (affected territory)? Yes....No....". The county clerk shall 2
cause to be published in accordance with KRS Chapter 424, at the same 3
time as the remaining voter information, the full text of the proposal. The 4
county clerk shall cause to be posted in each polling place one (1) copy of 5
the full text of the proposal. 6
(6) If the question submitted to the voters under subsection (3) or (5) of this section 7
fails to pass, three (3) years shall elapse before the question of medicinal 8
cannabis sales and cannabis business operations may be included on a regular 9
election ballot for the affected territory. 10
(7) If the question submitted to the voters under subsection (3) or (5) of this section 11
passes, medicinal cannabis sales and cannabis business operations may be 12
conducted in the affected territory, notwithstanding any local government 13
ordinances which prohibit all cannabis business operations within its territory. 14
(8) In circumstances where a county, urban-county government, consolidated local 15
government, charter county government, or unified local government prohibits 16
cannabis business operations but a city within that county, urban-county 17
government, consolidated local government, charter county government, or 18
unified local government approves cannabis business operations either through 19
the adoption of an ordinance or following the affirmative vote of a public 20
question allowing cannabis business operations, then: 21
(a) The cannabis business operations may proceed within the limits of the city; 22
and 23
(b) The county, urban-county government, consolidated local government, 24
charter county government, or unified local government may assess an 25
additional reasonable fee to compensate for any additional corrections 26
impact caused by the approval of cannabis business operations. Any 27 UNOFFICIAL COPY 23 RS BR 953
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additional fees collected pursuant to this subsection shall not exceed the 1
additional corrections impact caused by the approval of cannabis business 2
operations. 3
(9) In circumstances where neither a city nor the county, urban-county government, 4
consolidated local government, charter county government, or unified local 5
government in which the city is located prohibit cannabis business operations, a 6
cannabis business that is located within the jurisdiction of both the city and the 7
county shall only pay the reasonable established local fees of either the city or the 8
county. The fee shall be established, assessed, collected, and shared between the 9
city and the county, in a manner to be negotiated between the city and the county. 10
(10) The provisions of general election law shall apply to public questions submitted to 11
voters under this section. 12
SECTION 27. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 13
TO READ AS FOLLOWS: 14
(1) The department shall maintain a confidential list of the persons to whom the 15
department has issued registry identification cards and their addresses, telephone 16
numbers, and registry identification numbers. 17
(2) The department shall, only at a cardholder’s request, confirm his or her status as 18
a registered qualified patient, visiting qualified patient, or designated caregiver to 19
a third party, such as a landlord, employer, school, medical professional, or 20
court. 21
(3) The following information received and records kept pursuant to the 22
department's administrative regulations promulgated for purposes of 23
administering Sections 1 to 30 of this Act shall be confidential and exempt from 24
the Open Records Act, KRS 61.870 to 61.884, and shall not be subject to 25
disclosure to any individual or public or private entity, except as necessary for 26
authorized employees of the department to perform official duties pursuant to 27 UNOFFICIAL COPY 23 RS BR 953
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Sections 1 to 30 of this Act: 1
(a) Applications and renewals, their contents, and supporting information 2
submitted by qualified patients, visiting qualified patients, and designated 3
caregivers in compliance with Section 11 of this Act, including information 4
regarding their designated caregivers and practitioners; 5
(b) The individual names and other information identifying persons to whom 6
the department has issued registry identification cards; 7
(c) Any dispensing information required to be kept under Section 22 of this Act 8
or the department's administrative regulations which shall only identify 9
cardholders by their registry identification numbers and shall not contain 10
names or other personal identifying information; and 11
(d) Any department hard drives or other data-recording media that are no 12
longer in use and that contain cardholder information. These hard drives 13
and other media shall be destroyed after a reasonable time or after the data 14
is otherwise stored. 15
(4) Nothing in this section shall preclude the following: 16
(a) Notification by the department's employees to state or local law enforcement 17
about falsified or fraudulent information submitted to the department or of 18
other apparently criminal violations of Sections 1 to 30 of this Act if the 19
employee who suspects that falsified or fraudulent information has been 20
submitted has conferred with his or her supervisor and both agree that 21
circumstances exist that warrant reporting; 22
(b) Notification by the department's employees to a state licensing board if the 23
department has reasonable suspicion to believe a practitioner did not have a 24
bona fide practitioner-patient relationship with a patient for whom he or she 25
signed a written certification, if the department has reasonable suspicion to 26
believe the practitioner violated the standard of care, or for other suspected 27 UNOFFICIAL COPY 23 RS BR 953
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violations of Sections 1 to 30 of this Act by a practitioner; 1
(c) Notification by dispensary agents to the department of a suspected violation 2
or attempted violation of Sections 1 to 30 of this Act or the administrative 3
regulations promulgated thereunder; 4
(d) Verification by the department of registry identification cards issued 5
pursuant to Sections 11, 12, and 13 of this Act; and 6
(e) The submission of the report required by Section 3 of this Act to the 7
General Assembly. 8
(5) It shall be a misdemeanor punishable by up to one hundred eighty (180) days in 9
jail and a one thousand dollar ($1,000) fine for any person, including an 10
employee or official of the department or another state agency or local 11
government, to knowingly breach the confidentiality of information obtained 12
pursuant to Sections 1 to 30 of this Act. 13
SECTION 28. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 14
TO READ AS FOLLOWS: 15
(1) No later than January 1, 2024, the department shall: 16
(a) Establish, maintain, and operate an electronic system for monitoring the 17
medicinal cannabis program. The electronic system established pursuant to 18
this paragraph shall be designed to enable: 19
1. Practitioners to record the issuance of written certifications to 20
qualified patients, as required by Section 9 of this Act; 21
2. Pharmacists to perform and record the completion of consultations 22
with cardholders as required under Section 10 of this Act; 23
3. The department and state licensing board to monitor the issuance of 24
written certifications by practitioners to qualified patients; 25
4. Department personnel, law enforcement personnel, and dispensary 26
agents to verify the validity of registry identification cards issued by 27 UNOFFICIAL COPY 23 RS BR 953
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the department by entering a registry identification number to 1
determine whether or not the identification number corresponds with 2
a current, valid registry identification card. The system shall only 3
disclose whether the identification card is valid and whether the 4
cardholder is a registered qualified patient, visiting qualified patient, 5
or designated caregiver; 6
5. Law enforcement personnel and dispensary agents to access medicinal 7
cannabis sales data record by dispensary agents pursuant to Section 8
22 of this Act; 9
6. Dispensary agents to record the amount of medicinal cannabis that is 10
dispensed to a cardholder during each transaction as required by 11
Section 22 of this Act; and 12
7. The sharing of dispensing data recorded by dispensary agents 13
pursuant to Section 22 of this Act with all dispensaries in real time; 14
(b) Establish, maintain, and operate an electronic inventory tracking system 15
that is capable of tracking medicinal cannabis from the point of cultivation 16
to the point of sale to cardholders; and 17
(c) Promulgate administrative regulations to establish: 18
1. Procedures for the issuance, renewal, suspension, and revocation of 19
registry identification cards, including the creation of a standardized 20
written certification form and a uniform application form; 21
2. Procedures for the issuance and revocation of registry identification 22
cards; 23
3. Procedures for the issuance, renewal, suspension, and revocation of 24
cannabis business licenses, including the creation of a uniform 25
licensure application form and the competitive application process 26
described in Section 18 of this Act, with all such procedures subject to 27 UNOFFICIAL COPY 23 RS BR 953
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the requirements of KRS Chapters 13A and 13B; 1
4. A convenience fee to be assessed and collected by dispensaries for 2
visiting qualified patients who do not possess a valid registry 3
identification card issued by the department and who purchase 4
medicinal cannabis with a registry identification card or its equivalent 5
issued pursuant to the laws of another state, district, territory, 6
commonwealth, or insular possession of the United States that allows 7
the person to use medicinal cannabis in the jurisdiction of issuance. 8
The convenience fee established pursuant to this subparagraph shall 9
not exceed fifteen dollars ($15) per transaction; 10
5. In collaboration with the Board of Physicians and Advisors, as 11
required by Section 3 of this Act: 12
a. A definition of the amount of medicinal cannabis or delta-9 13
tetrahydrocannabinol that constitutes a daily supply, a ten (10) 14
day supply, and a thirty (30) day supply; and 15
b. The amount of raw plant material that medicinal cannabis 16
products are considered to be equivalent to; 17
6. A process by which a practitioner may recommend, and a registered 18
qualified patient or his or her designated caregiver may legally 19
purchase and possess, an amount of medicinal cannabis in excess of 20
the thirty (30) day supply of medicinal cannabis, if the practitioner 21
reasonably believes that the standard thirty (30) day supply would be 22
insufficient in providing the patient with uninterrupted therapeutic or 23
palliative relief; 24
7. Provisions governing the following matters related to cannabis 25
businesses with the goal of protecting against diversion and theft, 26
without imposing any undue burden that would make cannabis 27 UNOFFICIAL COPY 23 RS BR 953
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business operations unreasonable or impractical on cannabis 1
businesses or compromising the confidentiality of cardholders: 2
a. Recordkeeping and inventory control requirements, including 3
the use of the electronic systems developed by the department 4
pursuant to paragraphs (a) and (b) of this subsection; 5
b. Procedures for the verification and validation of a registry 6
identification card, or its equivalent, that was issued pursuant to 7
the laws of another state, district, territory, commonwealth, or 8
insular possession of the United States that allows for the use of 9
medicinal cannabis in the jurisdiction of issuance; 10
c. Security requirements for safety compliance facilities, 11
processors, producers, dispensaries, and cultivators, which shall 12
include at a minimum lighting, video security, alarm 13
requirements, on-site parking, and measures to prevent loitering; 14
d. Procedures for the secure transportation, including delivery 15
services provided by dispensaries, and storage of medicinal 16
cannabis by cannabis business licensees and their employees or 17
agents; 18
e. Employment and training requirements for licensees and their 19
agents, including requiring each licensee to create an 20
identification badge for each of the licensee's agents or 21
employees; 22
f. Restrictions on visits to licensed cultivation and processing 23
facilities, including requiring the use of visitor logs; and 24
g. Limitations on the size of outdoor cultivation operations; 25
8. Procedures to establish, publish, and annually update a list of varieties 26
of cannabis that possess a low but effective level of 27 UNOFFICIAL COPY 23 RS BR 953
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tetrahydrocannabinol, including the substance cannabidiol, by 1
comparing percentages of chemical compounds within a given variety 2
against other varieties of cannabis; 3
9. A rating system that tracks the terpene content of at least the twelve 4
(12) major terpenoids within each strain of cannabis available for 5
medicinal use within the Commonwealth; 6
10. Requirements for random sample testing of medicinal cannabis to 7
ensure quality control, including testing for cannabinoids, terpenoids, 8
residual solvents, pesticides, poisons, toxins, mold, mildew, insects, 9
bacteria, and any other dangerous adulterant; 10
11. Requirements for licensed cultivators, producers, and processors to 11
contract with an independent safety compliance facility to test the 12
medicinal cannabis before it is sold at a dispensary. The department 13
may approve the safety compliance facility chosen by a cultivator, 14
producer, or processor and require that the safety compliance facility 15
report test results for a designated quantity of medicinal cannabis to 16
the cultivator, producer, or processor and department; 17
12. Standards for the operation of safety compliance facilities which may 18
include: 19
a. Requirements for equipment; 20
b. Personnel qualifications; and 21
c. Requiring facilities to be accredited by a relevant certifying 22
entity; 23
13. Standards for the packaging and labeling of medicinal cannabis sold 24
or distributed by cannabis businesses which shall comply with 15 25
U.S.C. sec. 1471 to 1476 and shall include: 26
a. Standards for packaging that requires at least a two (2) step 27 UNOFFICIAL COPY 23 RS BR 953
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process of initial opening; 1
b. A warning label which may include the length of time it typically 2
takes for the product to take effect, how long the effects of the 3
product typically last, and any other information deemed 4
appropriate or necessary by the department; 5
c. The amount of medicinal cannabis the product is considered the 6
equivalent to; 7
d. Disclosing ingredients, possible allergens, and certain bioactive 8
components, including cannabinoids and terpenoids, as 9
determined by the department; 10
e. A nutritional fact panel; 11
f. Opaque, child-resistant packaging; 12
g. A requirement that all raw plant material packaged or sold in 13
this state be marked or labeled as "NOT APPROVED OR 14
INTENDED FOR CONSUMPTION BY SMOKING"; 15
h. A requirement that medicinal cannabis products be clearly 16
marked with an identifiable and standardized symbol indicating 17
that the product contains cannabis; 18
i. A requirement that all medicinal cannabis product packaging 19
include an expiration date; and 20
j. A requirement that medicinal cannabis products and their 21
packaging not be visually reminiscent of major brands of edible 22
noncannabis products or otherwise present an attractive 23
nuisance to minors; 24
14. Health and safety requirements for the processing of medicinal 25
cannabis and the indoor cultivation of medicinal cannabis by 26
licensees; 27 UNOFFICIAL COPY 23 RS BR 953
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15. Restrictions on: 1
a. Additives to medicinal cannabis that are toxic, including vitamin 2
E acetate, or increase the likelihood of addiction; and 3
b. Pesticides, fertilizers, and herbicides used during medicinal 4
cannabis cultivation which pose a threat to human health and 5
safety; 6
16. Standards for the safe processing of medicinal cannabis products 7
created by extracting or concentrating compounds from raw plant 8
material; 9
17. Standards for determining the amount of unprocessed raw plant 10
material that medicinal cannabis products are considered the 11
equivalent to; 12
18. Restrictions on advertising, marketing, and signage in regard to 13
operations or establishments owned by licensees necessary to prevent 14
the targeting of minors; 15
19. The requirement that evidence-based educational materials regarding 16
dosage and impairment be disseminated to registered qualified 17
patients, visiting qualified patients, and designated caregivers who 18
purchase medicinal cannabis products; 19
20. Policies governing insurance requirements for cultivators, 20
dispensaries, processors, producers, and safety compliance facilities; 21
and 22
21. Standards, procedures, or restrictions that the department deems 23
necessary to ensure the efficient, transparent, and safe operation of 24
the medicinal cannabis program, except that the department shall not 25
promulgate any administrative regulation that would impose an undue 26
burden or make cannabis business operations unreasonable or 27 UNOFFICIAL COPY 23 RS BR 953
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impractical. 1
(2) The department shall perform all acts necessary or advisable for the purpose of 2
contracting with a third party for the development and maintenance of the 3
electronic systems described in subsection (1)(a) and (b) of this section. 4
(3) If a need for additional cannabis cultivation in this state is demonstrated by 5
cannabis businesses or the department's own analysis, the department may 6
through the promulgation of administrative regulations increase the cultivation 7
area square footage limits for either cultivators or producers, or both by up to 8
three (3) times the limits established in Sections 21 and 24 of this Act. Any 9
increase in the cultivation square footage limits adopted by the department 10
pursuant to this section shall not result in an increase in the licensure application 11
or renewal fees established in Section 16 of this Act. 12
(4) When promulgating administrative regulations under this section, the department 13
shall consider standards, procedures, and restrictions that have been found to be 14
best practices relative to the use and regulation of medicinal cannabis. 15
SECTION 29. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 16
TO READ AS FOLLOWS: 17
Nothing in Sections 1 to 30 of this Act shall require a government medical assistance 18
program, private health insurer or workers' compensation carrier, or self-funded 19
employer providing workers' compensation benefits to reimburse a person for costs 20
associated with the medicinal use of cannabis. 21
SECTION 30. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 22
TO READ AS FOLLOWS: 23
The provisions of KRS 138.870 to 138.889 shall not apply to any individual or entity 24
for: 25
(1) Any amount of medicinal cannabis that is necessary or reasonably necessary for 26
use of a license or registry identification card issued pursuant to Sections 1 to 30 27 UNOFFICIAL COPY 23 RS BR 953
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of this Act; or 1
(2) Any use of medicinal cannabis that complies with Sections 1 to 30 of this Act and 2
any administrative regulations promulgated thereunder. 3
SECTION 31. A NEW SECTION OF KRS CHAPTER 218A IS CREATED 4
TO READ AS FOLLOWS: 5
(1) The medicinal cannabis trust fund is hereby created within the State Treasury. 6
The fund shall consist of moneys collected from registration fees, licensing fees, 7
fines, and penalties established pursuant to Sections 1 to 30 of this Act, excluding 8
Section 27 of this Act, and any administrative regulations promulgated 9
thereunder, and any proceeds from grants, contributions, appropriations, or other 10
moneys made available for purposes of this fund. 11
(2) The medicinal cannabis trust fund shall be administered by the Department of 12
Alcoholic Beverage and Cannabis Control. 13
(3) Notwithstanding KRS 45.229, moneys in the fund not expended at the close of the 14
fiscal year shall not lapse. 15
(4) Any interest earnings of the trust fund shall become part of the fund and shall 16
not lapse. 17
(5) Moneys transferred to the fund are hereby appropriated for the purposes 18
operating, administering, and regulating the medicinal cannabis program 19
established in Sections 1 to 30 of this Act. 20
Section 32. KRS 342.815 is amended to read as follows: 21
(1) The authority may provide coverage for insurance, authorized in KRS 342.803, to 22
any employer in the Commonwealth, and who tenders the required premium for 23
coverage and comply with other conditions and qualifications for obtaining and 24
maintaining coverage adopted by the authority to protect and ensure its actuarial 25
soundness and solvency. 26
(2) The authority shall provide coverage to any employer who is unable to secure 27 UNOFFICIAL COPY 23 RS BR 953
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coverage in the voluntary market unless: 1
(a) The employer owes undisputed premiums to a previous workers' 2
compensation carrier or to a workers' compensation residual market 3
mechanism; or 4
(b) Providing coverage to the employer would subject the authority or its 5
employees to a violation of federal or state law. 6
Section 33. KRS 139.470 is amended to read as follows: 7
There are excluded from the computation of the amount of taxes imposed by this chapter: 8
(1) Gross receipts from the sale of, and the storage, use, or other consumption in this 9
state of, tangible personal property or digital property which this state is prohibited 10
from taxing under the Constitution or laws of the United States, or under the 11
Constitution of this state; 12
(2) Gross receipts from sales of, and the storage, use, or other consumption in this state 13
of: 14
(a) Nonreturnable and returnable containers when sold without the contents to 15
persons who place the contents in the container and sell the contents together 16
with the container; and 17
(b) Returnable containers when sold with the contents in connection with a retail 18
sale of the contents or when resold for refilling; 19
As used in this section the term "returnable containers" means containers of a kind 20
customarily returned by the buyer of the contents for reuse. All other containers are 21
"nonreturnable containers"; 22
(3) Gross receipts from occasional sales of tangible personal property or digital 23
property and the storage, use, or other consumption in this state of tangible personal 24
property or digital property, the transfer of which to the purchaser is an occasional 25
sale; 26
(4) Gross receipts from sales of tangible personal property to a common carrier, 27 UNOFFICIAL COPY 23 RS BR 953
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shipped by the retailer via the purchasing carrier under a bill of lading, whether the 1
freight is paid in advance or the shipment is made freight charges collect, to a point 2
outside this state and the property is actually transported to the out-of-state 3
destination for use by the carrier in the conduct of its business as a common carrier; 4
(5) Gross receipts from sales of tangible personal property sold through coin-operated 5
bulk vending machines, if the sale amounts to fifty cents ($0.50) or less, if the 6
retailer is primarily engaged in making the sales and maintains records satisfactory 7
to the department. As used in this subsection, "bulk vending machine" means a 8
vending machine containing unsorted merchandise which, upon insertion of a coin, 9
dispenses the same in approximately equal portions, at random and without 10
selection by the customer; 11
(6) Gross receipts from sales to any cabinet, department, bureau, commission, board, or 12
other statutory or constitutional agency of the state and gross receipts from sales to 13
counties, cities, or special districts as defined in KRS 65.005. This exemption shall 14
apply only to purchases of tangible personal property, digital property, or services 15
for use solely in the government function. A purchaser not qualifying as a 16
governmental agency or unit shall not be entitled to the exemption even though the 17
purchaser may be the recipient of public funds or grants; 18
(7) (a) Gross receipts from the sale of sewer services, water, and fuel to Kentucky 19
residents for use in heating, water heating, cooking, lighting, and other 20
residential uses if the sewer services, water, and fuel are purchased and 21
declared by the resident as used in his or her place of domicile. 22
(b) As used in this subsection: 23
1. "Fuel" shall include but not be limited to natural gas, electricity, fuel oil, 24
bottled gas, coal, coke, and wood; and 25
2. "Place of domicile" means the place where an individual has his or her 26
legal, true, fixed, and permanent home and principal establishment, and 27 UNOFFICIAL COPY 23 RS BR 953
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to which, whenever the individual is absent, the individual has the 1
intention of returning. 2
(c) Determinations of eligibility for the exemption shall be made by the 3
department. 4
(d) The exemption shall apply if charges for sewer service, water, and fuel are 5
billed to an owner or operator of a multi-unit residential rental facility or 6
mobile home and recreational vehicle park if the sewer services, water, and 7
fuel are purchased for and declared by the Kentucky resident as used in his or 8
her place of domicile. 9
(e) The exemption shall apply also to residential property which may be held by 10
legal or equitable title, by the entireties, jointly, in common, as a 11
condominium, or indirectly by the stock ownership or membership 12
representing the owner's or member's proprietary interest in a corporation 13
owning a fee or a leasehold initially in excess of ninety-eight (98) years if the 14
sewer services, water, and fuel are purchased for and declared by the 15
Kentucky resident as used in his or her place of domicile; 16
(8) Gross receipts from sales to an out-of-state agency, organization, or institution 17
exempt from sales and use tax in its state of residence when that agency, 18
organization, or institution gives proof of its tax-exempt status to the retailer and the 19
retailer maintains a file of the proof; 20
(9) (a) Gross receipts derived from the sale of tangible personal property, as provided 21
in paragraph (b) of this subsection, to a manufacturer or industrial processor if 22
the property is to be directly used in the manufacturing or industrial 23
processing process of: 24
1. Tangible personal property at a plant facility; 25
2. Distilled spirits or wine at a plant facility or on the premises of a 26
distiller, rectifier, winery, or small farm winery licensed under KRS 27 UNOFFICIAL COPY 23 RS BR 953
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243.030 that includes a retail establishment on the premises; or 1
3. Malt beverages at a plant facility or on the premises of a brewer or 2
microbrewery licensed under KRS 243.040 that includes a retail 3
establishment; 4
and which will be for sale. 5
(b) The following tangible personal property shall qualify for exemption under 6
this subsection: 7
1. Materials which enter into and become an ingredient or component part 8
of the manufactured product; 9
2. Other tangible personal property which is directly used in the 10
manufacturing or industrial processing process, if the property has a 11
useful life of less than one (1) year. Specifically these items are 12
categorized as follows: 13
a. Materials. This refers to the raw materials which become an 14
ingredient or component part of supplies or industrial tools exempt 15
under subdivisions b. and c. below; 16
b. Supplies. This category includes supplies such as lubricating and 17
compounding oils, grease, machine waste, abrasives, chemicals, 18
solvents, fluxes, anodes, filtering materials, fire brick, catalysts, 19
dyes, refrigerants, and explosives. The supplies indicated above 20
need not come in direct contact with a manufactured product to be 21
exempt. "Supplies" does not include repair, replacement, or spare 22
parts of any kind; and 23
c. Industrial tools. This group is limited to hand tools such as jigs, 24
dies, drills, cutters, rolls, reamers, chucks, saws, and spray guns 25
and to tools attached to a machine such as molds, grinding balls, 26
grinding wheels, dies, bits, and cutting blades. Normally, for 27 UNOFFICIAL COPY 23 RS BR 953
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industrial tools to be considered directly used in the manufacturing 1
or industrial processing process, they shall come into direct 2
contact with the product being manufactured or processed; and 3
3. Materials and supplies that are not reusable in the same manufacturing 4
or industrial processing process at the completion of a single 5
manufacturing or processing cycle. A single manufacturing cycle shall 6
be considered to be the period elapsing from the time the raw materials 7
enter into the manufacturing process until the finished product emerges 8
at the end of the manufacturing process. 9
(c) The property described in paragraph (b) of this subsection shall be regarded as 10
having been purchased for resale. 11
(d) For purposes of this subsection, a manufacturer or industrial processor 12
includes an individual or business entity that performs only part of the 13
manufacturing or industrial processing activity, and the person or business 14
entity need not take title to tangible personal property that is incorporated 15
into, or becomes the product of, the activity. 16
(e) The exemption provided in this subsection does not include repair, 17
replacement, or spare parts; 18
(10) Any water use fee paid or passed through to the Kentucky River Authority by 19
facilities using water from the Kentucky River basin to the Kentucky River 20
Authority in accordance with KRS 151.700 to 151.730 and administrative 21
regulations promulgated by the authority; 22
(11) Gross receipts from the sale of newspaper inserts or catalogs purchased for storage, 23
use, or other consumption outside this state and delivered by the retailer's own 24
vehicle to a location outside this state, or delivered to the United States Postal 25
Service, a common carrier, or a contract carrier for delivery outside this state, 26
regardless of whether the carrier is selected by the purchaser or retailer or an agent 27 UNOFFICIAL COPY 23 RS BR 953
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or representative of the purchaser or retailer, or whether the F.O.B. is retailer's 1
shipping point or purchaser's destination. 2
(a) As used in this subsection: 3
1. "Catalogs" means tangible personal property that is printed to the special 4
order of the purchaser and composed substantially of information 5
regarding goods and services offered for sale; and 6
2. "Newspaper inserts" means printed materials that are placed in or 7
distributed with a newspaper of general circulation. 8
(b) The retailer shall be responsible for establishing that delivery was made to a 9
non-Kentucky location through shipping documents or other credible 10
evidence as determined by the department; 11
(12) Gross receipts from the sale of water used in the raising of equine as a business; 12
(13) Gross receipts from the sale of metal retail fixtures manufactured in this state and 13
purchased for storage, use, or other consumption outside this state and delivered by 14
the retailer's own vehicle to a location outside this state, or delivered to the United 15
States Postal Service, a common carrier, or a contract carrier for delivery outside 16
this state, regardless of whether the carrier is selected by the purchaser or retailer or 17
an agent or representative of the purchaser or retailer, or whether the F.O.B. is the 18
retailer's shipping point or the purchaser's destination. 19
(a) As used in this subsection, "metal retail fixtures" means check stands and 20
belted and nonbelted checkout counters, whether made in bulk or pursuant to 21
specific purchaser specifications, that are to be used directly by the purchaser 22
or to be distributed by the purchaser. 23
(b) The retailer shall be responsible for establishing that delivery was made to a 24
non-Kentucky location through shipping documents or other credible 25
evidence as determined by the department; 26
(14) Gross receipts from the sale of unenriched or enriched uranium purchased for 27 UNOFFICIAL COPY 23 RS BR 953
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ultimate storage, use, or other consumption outside this state and delivered to a 1
common carrier in this state for delivery outside this state, regardless of whether the 2
carrier is selected by the purchaser or retailer, or is an agent or representative of the 3
purchaser or retailer, or whether the F.O.B. is the retailer's shipping point or 4
purchaser's destination; 5
(15) Amounts received from a tobacco buydown. As used in this subsection, "buydown" 6
means an agreement whereby an amount, whether paid in money, credit, or 7
otherwise, is received by a retailer from a manufacturer or wholesaler based upon 8
the quantity and unit price of tobacco products sold at retail that requires the retailer 9
to reduce the selling price of the product to the purchaser without the use of a 10
manufacturer's or wholesaler's coupon or redemption certificate; 11
(16) Gross receipts from the sale of tangible personal property or digital property 12
returned by a purchaser when the full sales price is refunded either in cash or credit. 13
This exclusion shall not apply if the purchaser, in order to obtain the refund, is 14
required to purchase other tangible personal property or digital property at a price 15
greater than the amount charged for the property that is returned; 16
(17) Gross receipts from the sales of gasoline and special fuels subject to tax under KRS 17
Chapter 138; 18
(18) The amount of any tax imposed by the United States upon or with respect to retail 19
sales, whether imposed on the retailer or the consumer, not including any 20
manufacturer's excise or import duty; 21
(19) Gross receipts from the sale of any motor vehicle as defined in KRS 138.450 which 22
is: 23
(a) Sold to a Kentucky resident, registered for use on the public highways, and 24
upon which any applicable tax levied by KRS 138.460 has been paid; or 25
(b) Sold to a nonresident of Kentucky if the nonresident registers the motor 26
vehicle in a state that: 27 UNOFFICIAL COPY 23 RS BR 953
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1. Allows residents of Kentucky to purchase motor vehicles without 1
payment of that state's sales tax at the time of sale; or 2
2. Allows residents of Kentucky to remove the vehicle from that state 3
within a specific period for subsequent registration and use in Kentucky 4
without payment of that state's sales tax; 5
(20) Gross receipts from the sale of a semi-trailer as defined in KRS 189.010(12) and 6
trailer as defined in KRS 189.010(17); 7
(21) Gross receipts from the collection of: 8
(a) Any fee or charge levied by a local government pursuant to KRS 65.760; 9
(b) The charge imposed by KRS 65.7629(3); 10
(c) The fee imposed by KRS 65.7634; and 11
(d) The service charge imposed by KRS 65.7636; 12
(22) Gross receipts derived from charges for labor or services to apply, install, repair, or 13
maintain tangible personal property directly used in manufacturing or industrial 14
processing process of: 15
(a) Tangible personal property at a plant facility; 16
(b) Distilled spirits or wine at a plant facility or on the premises of a distiller, 17
rectifier, winery, or small farm winery licensed under KRS 243.030; or 18
(c) Malt beverages at a plant facility or on the premises of a brewer or 19
microbrewery licensed under KRS 243.040; 20
that is not otherwise exempt under subsection (9) of this section or KRS 21
139.480(10), if the charges for labor or services are separately stated on the invoice, 22
bill of sale, or similar document given to purchaser; 23
(23) (a) For persons selling services included in KRS 139.200(2)(g) to (p) prior to 24
January 1, 2019, gross receipts derived from the sale of those services if the 25
gross receipts were less than six thousand dollars ($6,000) during calendar 26
year 2018. When gross receipts from these services exceed six thousand 27 UNOFFICIAL COPY 23 RS BR 953
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dollars ($6,000) in a calendar year: 1
1. All gross receipts over six thousand dollars ($6,000) are taxable in that 2
calendar year; and 3
2. All gross receipts are subject to tax in subsequent calendar years. 4
(b) For persons selling services included in KRS 139.200(2)(q) to (ay) prior to 5
January 1, 2023, gross receipts derived from the sale of those services if the 6
gross receipts were less than six thousand dollars ($6,000) during calendar 7
year 2021. When gross receipts from these services exceed six thousand 8
dollars ($6,000) in a calendar year: 9
1. All gross receipts over six thousand dollars ($6,000) are taxable in that 10
calendar year; and 11
2. All gross receipts are subject to tax in subsequent calendar years. 12
(c) The exemption provided in this subsection shall not apply to a person also 13
engaged in the business of selling tangible personal property, digital property, 14
or services included in KRS 139.200(2)(a) to (f);[ and] 15
(24) (a) For persons that first begin making sales of services included in KRS 16
139.200(2)(g) to (p) on or after January 1, 2019, gross receipts derived from 17
the sale of those services if the gross receipts are less than six thousand dollars 18
($6,000) within the first calendar year of operation. When gross receipts from 19
these services exceed six thousand dollars ($6,000) in a calendar year: 20
1. All gross receipts over six thousand dollars ($6,000) are taxable in that 21
calendar year; and 22
2. All gross receipts are subject to tax in subsequent calendar years. 23
(b) For persons that first begin making sales of services included in KRS 24
139.200(2)(q) to (ay) on or after January 1, 2023, gross receipts derived from 25
the sale of those services if the gross receipts are less than six thousand dollars 26
($6,000) within the first calendar year of operation. When gross receipts from 27 UNOFFICIAL COPY 23 RS BR 953
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these services exceed six thousand dollars ($6,000) in a calendar year: 1
1. All gross receipts over six thousand dollars ($6,000) are taxable in that 2
calendar year; and 3
2. All gross receipts are subject to tax in subsequent calendar years. 4
(c) The exemption provided in this subsection shall not apply to a person that is 5
also engaged in the business of selling tangible personal property, digital 6
property, or services included in KRS 139.200(2)(a) to (f); and 7
(25) Gross receipts from the sale of medicinal cannabis as defined in Section 1 of this 8
Act. 9
Section 34. KRS 138.870 is amended to read as follows: 10
As used in KRS 138.870 to 138.889, unless the context requires otherwise: 11
(1) "Marijuana" means marijuana, whether real or counterfeit, as defined in KRS 12
218A.010 and does not include medicinal cannabis as defined in Section 1 of this 13
Act. 14
(2) "Controlled substance" means any controlled substance, whether real or counterfeit, 15
as defined in KRS 218A.010 or any regulation promulgated thereunder, except that 16
it shall not include marijuana. 17
(3) "Offender" means a person who engages in this state in a taxable activity as defined 18
in subsection (4) of this section. 19
(4) "Taxable activity" means producing, cultivating, manufacturing, importing, 20
transporting, distributing, acquiring, purchasing, storing, selling, using, or otherwise 21
possessing, in violation of KRS Chapter 218A, more than five (5) marijuana plants 22
with foliation, 42.5 grams of marijuana which has been detached from the plant on 23
which it grew, seven (7) grams of any controlled substance, or fifty (50) or more 24
dosage units of any controlled substance which is not sold by weight. The weight or 25
dosage units in this subsection shall include the weight of marijuana or the weight 26
or dosage units of the controlled substance, whether pure, impure, or diluted. A 27 UNOFFICIAL COPY 23 RS BR 953
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quantity of a controlled substance is diluted if it consists of a detectable quantity of 1
a pure controlled substance and any excipients or fillers. 2
(5) "Dosage unit" means a tablet, capsule, vial, or ampule of a controlled substance or, 3
in cases of mass volume or diluted quantities, the proper dose or quantity of a 4
controlled substance to be taken all at one (1) time or in fractional amounts within a 5
given period, as defined and adopted by the United States Pharmacopeia. 6
(6) "Possessing" includes either actual possession or constructive possession, or a 7
combination of both actual and constructive possession. Mere possession or 8
ownership of real estate or an interest therein does not establish constructive 9
possession. 10
Section 35. KRS 216B.402 is amended to read as follows: 11
(1) When a person is admitted to a hospital emergency department or hospital 12
emergency room for treatment of a drug overdose: 13
(a)[(1)] The person shall be informed of available substance use disorder 14
treatment services known to the hospital that are provided by that hospital, 15
other local hospitals, the local community mental health center, and any other 16
local treatment programs licensed pursuant to KRS 222.231; 17
(b)[(2)] The hospital may obtain permission from the person when stabilized, or 18
the person's legal representative, to contact any available substance use 19
disorder treatment programs offered by that hospital, other local hospitals, the 20
local community mental health center, or any other local treatment programs 21
licensed pursuant to KRS 222.231, on behalf of the person to connect him or 22
her to treatment; and 23
(c)[(3)] The local community mental health center may provide an on-call 24
service in the hospital emergency department or hospital emergency room for 25
the person who was treated for a drug overdose to provide information about 26
services and connect the person to substance use disorder treatment, as funds 27 UNOFFICIAL COPY 23 RS BR 953
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are available. These services, when provided on the grounds of a hospital, 1
shall be coordinated with appropriate hospital staff. 2
(2) When a person who is a registered qualified patient or a visiting qualified patient 3
as defined in Section 1 of this Act is admitted to a hospital emergency department 4
or a hospital emergency room for treatment of cannabinoid hyperemesis 5
syndrome, the hospital shall notify the Department of Alcoholic Beverage and 6
Cannabis Control within forty-eight (48) hours. Notification shall include the 7
registered qualified patient's or a visiting qualified patient's name and registry 8
identification card number, if available. The department shall record all cases of 9
cannabinoid hyperemesis syndrome in the electronic monitoring system described 10
in Section 28 of this Act. 11
Section 36. KRS 218A.010 is amended to read as follows: 12
As used in this chapter, unless the context otherwise requires: 13
(1) "Administer" means the direct application of a controlled substance, whether by 14
injection, inhalation, ingestion, or any other means, to the body of a patient or 15
research subject by: 16
(a) A practitioner or by his or her authorized agent under his or her immediate 17
supervision and pursuant to his or her order; or 18
(b) The patient or research subject at the direction and in the presence of the 19
practitioner; 20
(2) "Anabolic steroid" means any drug or hormonal substance chemically and 21
pharmacologically related to testosterone that promotes muscle growth and includes 22
those substances classified as Schedule III controlled substances pursuant to KRS 23
218A.020 but does not include estrogens, progestins, and anticosteroids; 24
(3) "Cabinet" means the Cabinet for Health and Family Services; 25
(4) "Carfentanil" means any substance containing any quantity of carfentanil, or any of 26
its salts, isomers, or salts of isomers; 27 UNOFFICIAL COPY 23 RS BR 953
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(5) "Certified community based palliative care program" means a palliative care 1
program which has received certification from the Joint Commission; 2
(6) "Child" means any person under the age of majority as specified in KRS 2.015; 3
(7) "Cocaine" means a substance containing any quantity of cocaine, its salts, optical 4
and geometric isomers, and salts of isomers; 5
(8) "Controlled substance" means methamphetamine, or a drug, substance, or 6
immediate precursor in Schedules I through V and includes a controlled substance 7
analogue; 8
(9) (a) "Controlled substance analogue," except as provided in paragraph (b) of this 9
subsection, means a substance: 10
1. The chemical structure of which is substantially similar to the structure 11
of a controlled substance in Schedule I or II; and 12
2. Which has a stimulant, depressant, or hallucinogenic effect on the 13
central nervous system that is substantially similar to or greater than the 14
stimulant, depressant, or hallucinogenic effect on the central nervous 15
system of a controlled substance in Schedule I or II; or 16
3. With respect to a particular person, which such person represents or 17
intends to have a stimulant, depressant, or hallucinogenic effect on the 18
central nervous system that is substantially similar to or greater than the 19
stimulant, depressant, or hallucinogenic effect on the central nervous 20
system of a controlled substance in Schedule I or II. 21
(b) Such term does not include: 22
1. Any substance for which there is an approved new drug application; 23
2. With respect to a particular person, any substance if an exemption is in 24
effect for investigational use for that person pursuant to federal law to 25
the extent conduct with respect to such substance is pursuant to such 26
exemption; or 27 UNOFFICIAL COPY 23 RS BR 953
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3. Any substance to the extent not intended for human consumption before 1
the exemption described in subparagraph 2. of this paragraph takes 2
effect with respect to that substance; 3
(10) "Counterfeit substance" means a controlled substance which, or the container or 4
labeling of which, without authorization, bears the trademark, trade name, or other 5
identifying mark, imprint, number, or device, or any likeness thereof, of a 6
manufacturer, distributor, or dispenser other than the person who in fact 7
manufactured, distributed, or dispensed the substance; 8
(11) "Dispense" means to deliver a controlled substance to an ultimate user or research 9
subject by or pursuant to the lawful order of a practitioner, including the packaging, 10
labeling, or compounding necessary to prepare the substance for that delivery; 11
(12) "Dispenser" means a person who lawfully dispenses a Schedule II, III, IV, or V 12
controlled substance to or for the use of an ultimate user; 13
(13) "Distribute" means to deliver other than by administering or dispensing a controlled 14
substance; 15
(14) "Dosage unit" means a single pill, capsule, ampule, liquid, or other form of 16
administration available as a single unit; 17
(15) "Drug" means: 18
(a) Substances recognized as drugs in the official United States Pharmacopoeia, 19
official Homeopathic Pharmacopoeia of the United States, or official National 20
Formulary, or any supplement to any of them; 21
(b) Substances intended for use in the diagnosis, care, mitigation, treatment, or 22
prevention of disease in man or animals; 23
(c) Substances (other than food) intended to affect the structure or any function of 24
the body of man or animals; and 25
(d) Substances intended for use as a component of any article specified in this 26
subsection. 27 UNOFFICIAL COPY 23 RS BR 953
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It does not include devices or their components, parts, or accessories; 1
(16) "Fentanyl" means a substance containing any quantity of fentanyl, or any of its 2
salts, isomers, or salts of isomers; 3
(17) "Fentanyl derivative" means a substance containing any quantity of any chemical 4
compound, except compounds specifically scheduled as controlled substances by 5
statute or by administrative regulation pursuant to this chapter, which is structurally 6
derived from 1-ethyl-4-(N-phenylamido) piperadine: 7
(a) By substitution: 8
1. At the 2-position of the 1-ethyl group with a phenyl, furan, thiophene, or 9
ethyloxotetrazole ring system; and 10
2. Of the terminal amido hydrogen atom with an alkyl, alkoxy, cycloalkyl, 11
or furanyl group; and 12
(b) Which may be further modified in one (1) or more of the following ways: 13
1. By substitution on the N-phenyl ring to any extent with alkyl, alkoxy, 14
haloalkyl, hydroxyl, or halide substituents; 15
2. By substitution on the piperadine ring to any extent with alkyl, allyl, 16
alkoxy, hydroxy, or halide substituents at the 2-, 3-, 5-, and/or 6- 17
positions; 18
3. By substitution on the piperadine ring to any extent with a phenyl, 19
alkoxy, or carboxylate ester substituent at the 4- position; or 20
4. By substitution on the 1-ethyl group to any extent with alkyl, alkoxy, or 21
hydroxy substituents; 22
(18) "Good faith prior examination," as used in KRS Chapter 218A and for criminal 23
prosecution only, means an in-person medical examination of the patient conducted 24
by the prescribing practitioner or other health-care professional routinely relied 25
upon in the ordinary course of his or her practice, at which time the patient is 26
physically examined and a medical history of the patient is obtained. "In-person" 27 UNOFFICIAL COPY 23 RS BR 953
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includes telehealth examinations. This subsection shall not be applicable to hospice 1
providers licensed pursuant to KRS Chapter 216B; 2
(19) "Hazardous chemical substance" includes any chemical substance used or intended 3
for use in the illegal manufacture of a controlled substance as defined in this section 4
or the illegal manufacture of methamphetamine as defined in KRS 218A.1431, 5
which: 6
(a) Poses an explosion hazard; 7
(b) Poses a fire hazard; or 8
(c) Is poisonous or injurious if handled, swallowed, or inhaled; 9
(20) "Heroin" means a substance containing any quantity of heroin, or any of its salts, 10
isomers, or salts of isomers; 11
(21) "Hydrocodone combination product" means a drug with: 12
(a) Not more than three hundred (300) milligrams of dihydrocodeinone, or any of 13
its salts, per one hundred (100) milliliters or not more than fifteen (15) 14
milligrams per dosage unit, with a fourfold or greater quantity of an 15
isoquinoline alkaloid of opium; or 16
(b) Not more than three hundred (300) milligrams of dihydrocodeinone, or any of 17
its salts, per one hundred (100) milliliters or not more than fifteen (15) 18
milligrams per dosage unit, with one (1) or more active, nonnarcotic 19
ingredients in recognized therapeutic amounts; 20
(22) "Immediate precursor" means a substance which is the principal compound 21
commonly used or produced primarily for use, and which is an immediate chemical 22
intermediary used or likely to be used in the manufacture of a controlled substance 23
or methamphetamine, the control of which is necessary to prevent, curtail, or limit 24
manufacture; 25
(23) "Industrial hemp" has the same meaning as in KRS 260.850; 26
(24) "Industrial hemp products" has the same meaning as in KRS 260.850; 27 UNOFFICIAL COPY 23 RS BR 953
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(25) "Intent to manufacture" means any evidence which demonstrates a person's 1
conscious objective to manufacture a controlled substance or methamphetamine. 2
Such evidence includes but is not limited to statements and a chemical substance's 3
usage, quantity, manner of storage, or proximity to other chemical substances or 4
equipment used to manufacture a controlled substance or methamphetamine; 5
(26) "Isomer" means the optical isomer, except the Cabinet for Health and Family 6
Services may include the optical, positional, or geometric isomer to classify any 7
substance pursuant to KRS 218A.020; 8
(27) "Manufacture," except as provided in KRS 218A.1431, means the production, 9
preparation, propagation, compounding, conversion, or processing of a controlled 10
substance, either directly or indirectly by extraction from substances of natural 11
origin or independently by means of chemical synthesis, or by a combination of 12
extraction and chemical synthesis, and includes any packaging or repackaging of 13
the substance or labeling or relabeling of its container except that this term does not 14
include activities: 15
(a) By a practitioner as an incident to his or her administering or dispensing of a 16
controlled substance in the course of his or her professional practice; 17
(b) By a practitioner, or by his or her authorized agent under his supervision, for 18
the purpose of, or as an incident to, research, teaching, or chemical analysis 19
and not for sale; or 20
(c) By a pharmacist as an incident to his or her dispensing of a controlled 21
substance in the course of his or her professional practice; 22
(28) "Marijuana" means all parts of the plant Cannabis sp., whether growing or not; the 23
seeds thereof; the resin extracted from any part of the plant; and every compound, 24
manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin 25
or any compound, mixture, or preparation which contains any quantity of these 26
substances. The term "marijuana" does not include: 27 UNOFFICIAL COPY 23 RS BR 953
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(a) Industrial hemp that is in the possession, custody, or control of a person who 1
holds a license issued by the Department of Agriculture permitting that person 2
to cultivate, handle, or process industrial hemp; 3
(b) Industrial hemp products that do not include any living plants, viable seeds, 4
leaf materials, or floral materials; 5
(c) The substance cannabidiol, when transferred, dispensed, or administered 6
pursuant to the written order of a physician practicing at a hospital or 7
associated clinic affiliated with a Kentucky public university having a college 8
or school of medicine; 9
(d) For persons participating in a clinical trial or in an expanded access program, 10
a drug or substance approved for the use of those participants by the United 11
States Food and Drug Administration; 12
(e) A cannabidiol product derived from industrial hemp, as defined in KRS 13
260.850; 14
(f) For the purpose of conducting scientific research, a cannabinoid product 15
derived from industrial hemp, as defined in KRS 260.850;[ or] 16
(g) A cannabinoid product approved as a prescription medication by the United 17
States Food and Drug Administration; or 18
(h) Medicinal cannabis as defined in Section 1 of this Act; 19
(29) "Medical history," as used in KRS Chapter 218A and for criminal prosecution only, 20
means an accounting of a patient's medical background, including but not limited to 21
prior medical conditions, prescriptions, and family background; 22
(30) "Medical order," as used in KRS Chapter 218A and for criminal prosecution only, 23
means a lawful order of a specifically identified practitioner for a specifically 24
identified patient for the patient's health-care needs. "Medical order" may or may 25
not include a prescription drug order; 26
(31) "Medical record," as used in KRS Chapter 218A and for criminal prosecution only, 27 UNOFFICIAL COPY 23 RS BR 953
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means a record, other than for financial or billing purposes, relating to a patient, 1
kept by a practitioner as a result of the practitioner-patient relationship; 2
(32) "Methamphetamine" means any substance that contains any quantity of 3
methamphetamine, or any of its salts, isomers, or salts of isomers; 4
(33) "Narcotic drug" means any of the following, whether produced directly or indirectly 5
by extraction from substances of vegetable origin, or independently by means of 6
chemical synthesis, or by a combination of extraction and chemical synthesis: 7
(a) Opium and opiate, and any salt, compound, derivative, or preparation of 8
opium or opiate; 9
(b) Any salt, compound, isomer, derivative, or preparation thereof which is 10
chemically equivalent or identical with any of the substances referred to in 11
paragraph (a) of this subsection, but not including the isoquinoline alkaloids 12
of opium; 13
(c) Opium poppy and poppy straw; 14
(d) Coca leaves, except coca leaves and extracts of coca leaves from which 15
cocaine, ecgonine, and derivatives of ecgonine or their salts have been 16
removed; 17
(e) Cocaine, its salts, optical and geometric isomers, and salts of isomers; 18
(f) Ecgonine, its derivatives, their salts, isomers, and salts of isomers; and 19
(g) Any compound, mixture, or preparation which contains any quantity of any of 20
the substances referred to in paragraphs (a) to (f) of this subsection; 21
(34) "Opiate" means any substance having an addiction-forming or addiction-sustaining 22
liability similar to morphine or being capable of conversion into a drug having 23
addiction-forming or addiction-sustaining liability. It does not include, unless 24
specifically designated as controlled under KRS 218A.020, the dextrorotatory 25
isomer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan). It does 26
include its racemic and levorotatory forms; 27 UNOFFICIAL COPY 23 RS BR 953
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(35) "Opium poppy" means the plant of the species papaver somniferum L., except its 1
seeds; 2
(36) "Person" means individual, corporation, government or governmental subdivision 3
or agency, business trust, estate, trust, partnership or association, or any other legal 4
entity; 5
(37) "Physical injury" has the same meaning it has in KRS 500.080; 6
(38) "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing; 7
(39) "Pharmacist" means a natural person licensed by this state to engage in the practice 8
of the profession of pharmacy; 9
(40) "Practitioner" means a physician, dentist, podiatrist, veterinarian, scientific 10
investigator, optometrist as authorized in KRS 320.240, advanced practice 11
registered nurse as authorized under KRS 314.011, physician assistant as authorized 12
under KRS 311.858, or other person licensed, registered, or otherwise permitted by 13
state or federal law to acquire, distribute, dispense, conduct research with respect to, 14
or to administer a controlled substance in the course of professional practice or 15
research in this state. "Practitioner" also includes a physician, dentist, podiatrist, 16
veterinarian, or advanced practice registered nurse authorized under KRS 314.011 17
who is a resident of and actively practicing in a state other than Kentucky and who 18
is licensed and has prescriptive authority for controlled substances under the 19
professional licensing laws of another state, unless the person's Kentucky license 20
has been revoked, suspended, restricted, or probated, in which case the terms of the 21
Kentucky license shall prevail; 22
(41) "Practitioner-patient relationship," as used in KRS Chapter 218A and for criminal 23
prosecution only, means a medical relationship that exists between a patient and a 24
practitioner or the practitioner's designee, after the practitioner or his or her 25
designee has conducted at least one (1) good faith prior examination; 26
(42) "Prescription" means a written, electronic, or oral order for a drug or medicine, or 27 UNOFFICIAL COPY 23 RS BR 953
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combination or mixture of drugs or medicines, or proprietary preparation, signed or 1
given or authorized by a medical, dental, chiropody, veterinarian, optometric 2
practitioner, or advanced practice registered nurse, and intended for use in the 3
diagnosis, cure, mitigation, treatment, or prevention of disease in man or other 4
animals; 5
(43) "Prescription blank," with reference to a controlled substance, means a document 6
that meets the requirements of KRS 218A.204 and 217.216; 7
(44) "Presumptive probation" means a sentence of probation not to exceed the maximum 8
term specified for the offense, subject to conditions otherwise authorized by law, 9
that is presumed to be the appropriate sentence for certain offenses designated in 10
this chapter, notwithstanding contrary provisions of KRS Chapter 533. That 11
presumption shall only be overcome by a finding on the record by the sentencing 12
court of substantial and compelling reasons why the defendant cannot be safely and 13
effectively supervised in the community, is not amenable to community-based 14
treatment, or poses a significant risk to public safety; 15
(45) "Production" includes the manufacture, planting, cultivation, growing, or harvesting 16
of a controlled substance; 17
(46) "Recovery program" means an evidence-based, nonclinical service that assists 18
individuals and families working toward sustained recovery from substance use and 19
other criminal risk factors. This can be done through an array of support programs 20
and services that are delivered through residential and nonresidential means; 21
(47) "Salvia" means Salvia divinorum or Salvinorin A and includes all parts of the plant 22
presently classified botanically as Salvia divinorum, whether growing or not, the 23
seeds thereof, any extract from any part of that plant, and every compound, 24
manufacture, derivative, mixture, or preparation of that plant, its seeds, or its 25
extracts, including salts, isomers, and salts of isomers whenever the existence of 26
such salts, isomers, and salts of isomers is possible within the specific chemical 27 UNOFFICIAL COPY 23 RS BR 953
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designation of that plant, its seeds, or extracts. The term shall not include any other 1
species in the genus salvia; 2
(48) "Second or subsequent offense" means that for the purposes of this chapter an 3
offense is considered as a second or subsequent offense, if, prior to his or her 4
conviction of the offense, the offender has at any time been convicted under this 5
chapter, or under any statute of the United States, or of any state relating to 6
substances classified as controlled substances or counterfeit substances, except that 7
a prior conviction for a nontrafficking offense shall be treated as a prior offense 8
only when the subsequent offense is a nontrafficking offense. For the purposes of 9
this section, a conviction voided under KRS 218A.275 or 218A.276 shall not 10
constitute a conviction under this chapter; 11
(49) "Sell" means to dispose of a controlled substance to another person for 12
consideration or in furtherance of commercial distribution; 13
(50) "Serious physical injury" has the same meaning it has in KRS 500.080; 14
(51) "Synthetic cannabinoids or piperazines" means any chemical compound which is 15
not approved by the United States Food and Drug Administration or, if approved, 16
which is not dispensed or possessed in accordance with state and federal law, that 17
contains Benzylpiperazine (BZP); Trifluoromethylphenylpiperazine (TFMPP); 1,1-18
Dimethylheptyl-11-hydroxytetrahydrocannabinol (HU-210); 1-Butyl-3-(1-19
naphthoyl)indole; 1-Pentyl-3-(1-naphthoyl)indole; dexanabinol (HU-211); or any 20
compound in the following structural classes: 21
(a) Naphthoylindoles: Any compound containing a 3-(1-naphthoyl)indole 22
structure with substitution at the nitrogen atom of the indole ring by an alkyl, 23
haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-24
piperidinyl)methyl, or 2-(4-morpholinyl)ethyl group, whether or not further 25
substituted in the indole ring to any extent and whether or not substituted in 26
the naphthyl ring to any extent. Examples of this structural class include but 27 UNOFFICIAL COPY 23 RS BR 953
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are not limited to JWH-015, JWH-018, JWH-019, JWH-073, JWH-081, JWH-1
122, JWH-200, and AM-2201; 2
(b) Phenylacetylindoles: Any compound containing a 3-phenylacetylindole 3
structure with substitution at the nitrogen atom of the indole ring by an alkyl, 4
haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-5
piperidinyl)methyl, or 2-(4-morpholinyl)ethyl group whether or not further 6
substituted in the indole ring to any extent and whether or not substituted in 7
the phenyl ring to any extent. Examples of this structural class include but are 8
not limited to JWH-167, JWH-250, JWH-251, and RCS-8; 9
(c) Benzoylindoles: Any compound containing a 3-(benzoyl)indole structure with 10
substitution at the nitrogen atom of the indole ring by an alkyl, haloalkyl, 11
alkenyl, cycloalkylmethyl, cycloalkylethyl, 1 -(N-methyl-2-12
piperidinyl)methyl, or 2-(4-morpholinyl)ethyl group whether or not further 13
substituted in the indole ring to any extent and whether or not substituted in 14
the phenyl ring to any extent. Examples of this structural class include but are 15
not limited to AM-630, AM-2233, AM-694, Pravadoline (WIN 48,098), and 16
RCS-4; 17
(d) Cyclohexylphenols: Any compou nd containing a 2 -(3-18
hydroxycyclohexyl)phenol structure with substitution at the 5-position of the 19
phenolic ring by an alkyl, haloalkyl, alkenyl, cycloalkylmethyl, 20
cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl, or 2-(4-morpholinyl)ethyl 21
group whether or not substituted in the cyclohexyl ring to any extent. 22
Examples of this structural class include but are not limited to CP 47,497 and 23
its C8 homologue (cannabicyclohexanol); 24
(e) Naphthylmethylindoles: Any compound containing a 1H-indol-3-yl-(1-25
naphthyl)methane structure with substitution at the nitrogen atom of the 26
indole ring by an alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 27 UNOFFICIAL COPY 23 RS BR 953
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1-(N-methyl-2-piperidinyl)methyl, or 2-(4-morpholinyl)ethyl group whether 1
or not further substituted in the indole ring to any extent and whether or not 2
substituted in the naphthyl ring to any extent. Examples of this structural class 3
include but are not limited to JWH-175, JWH-184, and JWH-185; 4
(f) Naphthoylpyrroles: Any compound containing a 3-(1-naphthoyl)pyrrole 5
structure with substitution at the nitrogen atom of the pyrrole ring by an alkyl, 6
haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-7
piperidinyl)methyl, or 2-(4-morpholinyl)ethyl group whether or not further 8
substituted in the pyrrole ring to any extent and whether or not substituted in 9
the naphthyl ring to any extent. Examples of this structural class include but 10
are not limited to JWH-030, JWH-145, JWH-146, JWH-307, and JWH-368; 11
(g) Naphthylmethylindenes: Any compound containing a 1 -(1-12
naphthylmethyl)indene structure with substitution at the 3-position of the 13
indene ring by an alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 14
1-(N-methyl-2-piperidinyl)methyl, or 2-(4-morpholinyl)ethyl group whether 15
or not further substituted in the indene ring to any extent and whether or not 16
substituted in the naphthyl ring to any extent. Examples of this structural class 17
include but are not limited to JWH-176; 18
(h) Tetramethylcyclopropanoylindoles: Any compound containing a 3-(1-19
tetramethylcyclopropoyl)indole structure with substitution at the nitrogen 20
atom of the indole ring by an alkyl, haloalkyl, cycloalkylmethyl, 21
cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl, or 2-(4-morpholinyl)ethyl 22
group, whether or not further substituted in the indole ring to any extent and 23
whether or not further substituted in the tetramethylcyclopropyl ring to any 24
extent. Examples of this structural class include but are not limited to UR-144 25
and XLR-11; 26
(i) Adamantoylindoles: Any compound containing a 3-(1-adamantoyl)indole 27 UNOFFICIAL COPY 23 RS BR 953
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structure with substitution at the nitrogen atom of the indole ring by an alkyl, 1
haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-2
piperidinyl)methyl, or 2-(4-morpholinyl)ethyl group, whether or not further 3
substituted in the indole ring to any extent and whether or not substituted in 4
the adamantyl ring system to any extent. Examples of this structural class 5
include but are not limited to AB-001 and AM-1248; or 6
(j) Any other synthetic cannabinoid or piperazine which is not approved by the 7
United States Food and Drug Administration or, if approved, which is not 8
dispensed or possessed in accordance with state and federal law; 9
(52) "Synthetic cathinones" means any chemical compound which is not approved by 10
the United States Food and Drug Administration or, if approved, which is not 11
dispensed or possessed in accordance with state and federal law (not including 12
bupropion or compounds listed under a different schedule) structurally derived from 13
2-aminopropan-1-one by substitution at the 1-position with either phenyl, naphthyl, 14
or thiophene ring systems, whether or not the compound is further modified in one 15
(1) or more of the following ways: 16
(a) By substitution in the ring system to any extent with alkyl, alkylenedioxy, 17
alkoxy, haloalkyl, hydroxyl, or halide substituents, whether or not further 18
substituted in the ring system by one (1) or more other univalent substituents. 19
Examples of this class include but are not limited to 3,4-20
Methylenedioxycathinone (bk-MDA); 21
(b) By substitution at the 3-position with an acyclic alkyl substituent. Examples 22
of this class include but are not limited to 2-methylamino-1-phenylbutan-1-23
one (buphedrone); 24
(c) By substitution at the 2-amino nitrogen atom with alkyl, dialkyl, benzyl, or 25
methoxybenzyl groups, or by inclusion of the 2-amino nitrogen atom in a 26
cyclic structure. Examples of this class include but are not limited to 27 UNOFFICIAL COPY 23 RS BR 953
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Dimethylcathinone, Ethcathinone, and -Pyrrolidinopropiophenone (-PPP); 1
or 2
(d) Any other synthetic cathinone which is not approved by the United States 3
Food and Drug Administration or, if approved, is not dispensed or possessed 4
in accordance with state or federal law; 5
(53) "Synthetic drugs" means any synthetic cannabinoids or piperazines or any synthetic 6
cathinones; 7
(54) "Telehealth" has the same meaning it has in KRS 311.550; 8
(55) "Tetrahydrocannabinols" means synthetic equivalents of the substances contained 9
in the plant, or in the resinous extractives of the plant Cannabis, sp. or synthetic 10
substances, derivatives, and their isomers with similar chemical structure and 11
pharmacological activity such as the following: 12
(a) Delta 1 cis or trans tetrahydrocannabinol, and their optical isomers; 13
(b) Delta 6 cis or trans tetrahydrocannabinol, and their optical isomers; and 14
(c) Delta 3, 4 cis or trans tetrahydrocannabinol, and its optical isomers; 15
(56) "Traffic," except as provided in KRS 218A.1431, means to manufacture, distribute, 16
dispense, sell, transfer, or possess with intent to manufacture, distribute, dispense, 17
or sell a controlled substance; 18
(57) "Transfer" means to dispose of a controlled substance to another person without 19
consideration and not in furtherance of commercial distribution; and 20
(58) "Ultimate user" means a person who lawfully possesses a controlled substance for 21
his or her own use or for the use of a member of his or her household or for 22
administering to an animal owned by him or her or by a member of his or her 23
household. 24
Section 37. KRS 218A.1421 is amended to read as follows: 25
(1) A person is guilty of trafficking in marijuana when he or she knowingly and 26
unlawfully traffics in marijuana, and the trafficking is not in compliance with, or 27 UNOFFICIAL COPY 23 RS BR 953
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otherwise authorized by, Sections 1 to 30 of this Act. 1
(2) Unless authorized by Sections 1 to 30 of this Act, trafficking in less than eight (8) 2
ounces of marijuana is: 3
(a) For a first offense a Class A misdemeanor. 4
(b) For a second or subsequent offense a Class D felony. 5
(3) Unless authorized by Sections 1 to 30 of this Act, trafficking in eight (8) or more 6
ounces but less than five (5) pounds of marijuana is: 7
(a) For a first offense a Class D felony. 8
(b) For a second or subsequent offense a Class C felony. 9
(4) Unless authorized by Sections 1 to 30 of this Act, trafficking in five (5) or more 10
pounds of marijuana is: 11
(a) For a first offense a Class C felony. 12
(b) For a second or subsequent offense a Class B felony. 13
(5) Unless authorized by Sections 1 to 30 of this Act, the unlawful possession by any 14
person of eight (8) or more ounces of marijuana shall be prima facie evidence that 15
the person possessed the marijuana with the intent to sell or transfer it. 16
(6) This section does not apply to: 17
(a) A cannabis business or a cannabis business agent, as defined in Section 1 18
of this Act, when acting in compliance with Sections 1 to 30 of this Act; or 19
(b) A cardholder, as defined in Section 1 of this Act, whose medicinal use of 20
cannabis is in compliance with Sections 1 to 30 of this Act. 21
Section 38. KRS 218A.1422 is amended to read as follows: 22
(1) A person is guilty of possession of marijuana when he or she knowingly and 23
unlawfully possesses marijuana, and the possession is not in compliance with, or 24
otherwise authorized by, Sections 1 to 30 of this Act. 25
(2) Possession of marijuana is a Class B misdemeanor, except that, KRS Chapter 532 26
to the contrary notwithstanding, the maximum term of incarceration shall be no 27 UNOFFICIAL COPY 23 RS BR 953
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greater than forty-five (45) days. 1
(3) This section does not apply to: 2
(a) A cannabis business or a cannabis business agent, as defined in Section 1 3
of this Act, when acting in compliance with Sections 1 to 30 of this Act; or 4
(b) A cardholder, as defined in Section 1 of this Act, whose medicinal use of 5
cannabis is in compliance with Sections 1 to 30 of this Act. 6
Section 39. KRS 218A.1423 is amended to read as follows: 7
(1) A person is guilty of marijuana cultivation when he or she knowingly and 8
unlawfully plants, cultivates, or harvests marijuana with the intent to sell or transfer 9
it, and the cultivation is not in compliance with, or otherwise authorized by, 10
Sections 1 to 30 of this Act. 11
(2) Unless authorized by Sections 1 to 30 of this Act, marijuana cultivation of five (5) 12
or more plants of marijuana is: 13
(a) For a first offense a Class D felony. 14
(b) For a second or subsequent offense a Class C felony. 15
(3) Unless authorized by Sections 1 to 30 of this Act, marijuana cultivation of fewer 16
than five (5) plants is: 17
(a) For a first offense a Class A misdemeanor. 18
(b) For a second or subsequent offense a Class D felony. 19
(4) Unless authorized by Sections 1 to 30 of this Act, the planting, cultivating, or 20
harvesting of five (5) or more marijuana plants shall be prima facie evidence that 21
the marijuana plants were planted, cultivated, or harvested for the purpose of sale or 22
transfer. 23
(5) This section does not apply to a cannabis business or a cannabis business agent, 24
as defined in Section 1 of this Act, when acting in compliance with Sections 1 to 25
30 of this Act. 26
Section 40. KRS 218A.500 is amended to read as follows: 27 UNOFFICIAL COPY 23 RS BR 953
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As used in this section and KRS 218A.510: 1
(1) "Drug paraphernalia" means all equipment, products and materials of any kind 2
which are used, intended for use, or designed for use in planting, propagating, 3
cultivating, growing, harvesting, manufacturing, compounding, converting, 4
producing, processing, preparing, testing, analyzing, packaging, repackaging, 5
storing, containing, concealing, injecting, ingesting, inhaling, or otherwise 6
introducing into the human body a controlled substance in violation of this chapter. 7
The term "drug paraphernalia" does not include medicinal cannabis accessories 8
as defined in Section 1 of this Act. It includes but is not limited to: 9
(a) Kits used, intended for use, or designed for use in planting, propagating, 10
cultivating, growing, or harvesting of any species of plant which is a 11
controlled substance or from which a controlled substance can be derived; 12
(b) Kits used, intended for use, or designed for use in manufacturing, 13
compounding, converting, producing, processing, or preparing controlled 14
substances; 15
(c) Isomerization devices used, intended for use, or designed for use in increasing 16
the potency of any species of plant which is a controlled substance; 17
(d) Testing equipment used, intended for use, or designed for use in identifying, 18
or in analyzing the strength, effectiveness or purity of controlled substances; 19
(e) Scales and balances used, intended for use, or designed for use in weighing or 20
measuring controlled substances; 21
(f) Diluents and adulterants, such as quinine hydrochloride, mannitol, mannite, 22
dextrose and lactose, used, intended for use, or designed for use in cutting 23
controlled substances; 24
(g) Separation gins and sifters used, intended for use, or designed for use in 25
removing twigs and seeds from, or in otherwise cleaning or refining 26
marijuana; 27 UNOFFICIAL COPY 23 RS BR 953
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(h) Blenders, bowls, containers, spoons, and mixing devices used, intended for 1
use, or designed for use in compounding controlled substances; 2
(i) Capsules, balloons, envelopes, and other containers used, intended for use, or 3
designed for use in packaging small quantities of controlled substances; 4
(j) Containers and other objects used, intended for use, or designed for use in 5
storing or concealing controlled substances; 6
(k) Hypodermic syringes, needles, and other objects used, intended for use, or 7
designed for use in parenterally injecting controlled substances into the human 8
body; and 9
(l) Objects used, intended for use, or designed for use in ingesting, inhaling, or 10
otherwise introducing marijuana, cocaine, hashish, or hashish oil into the 11
human body, such as: metal, wooden, acrylic, glass, stone, plastic, or ceramic 12
pipes with or without screens, permanent screens, hashish heads, or punctured 13
metal bowls; water pipes; carburetion tubes and devices; smoking and 14
carburetion masks; roach clips which mean objects used to hold burning 15
material, such as marijuana cigarettes, that have become too small or too short 16
to be held in the hand; miniature cocaine spoons, and cocaine vials; chamber 17
pipes; carburetor pipes; electric pipes; air-driven pipes; chillums; bongs; ice 18
pipes or chillers. 19
(2) It is unlawful for any person to use, or to possess with intent to use, drug 20
paraphernalia for the purpose of planting, propagating, cultivating, growing, 21
harvesting, manufacturing, compounding, converting, producing, processing, 22
preparing, testing, analyzing, packing, repacking, storing, containing, concealing, 23
injecting, ingesting, inhaling, or otherwise introducing into the human body a 24
controlled substance in violation of this chapter. 25
(3) It is unlawful for any person to deliver, possess with intent to deliver, or 26
manufacture with intent to deliver, drug paraphernalia, knowing, or under 27 UNOFFICIAL COPY 23 RS BR 953
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circumstances where one reasonably should know, that it will be used to plant, 1
propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, 2
process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, 3
inhale, or otherwise introduce into the human body a controlled substance in 4
violation of this chapter. 5
(4) It is unlawful for any person to place in any newspaper, magazine, handbill, or 6
other publication any advertisement, knowing, or under circumstances where one 7
reasonably should know, that the purpose of the advertisement, in whole or in part, 8
is to promote the sale of objects designed or intended for use as drug paraphernalia. 9
(5) (a) This section shall not prohibit a local health department from operating a 10
substance abuse treatment outreach program which allows participants to 11
exchange hypodermic needles and syringes. 12
(b) To operate a substance abuse treatment outreach program under this 13
subsection, the local health department shall have the consent, which may be 14
revoked at any time, of the local board of health and: 15
1. The legislative body of the first or home rule class city in which the 16
program would operate if located in such a city; and 17
2. The legislative body of the county, urban-county government, or 18
consolidated local government in which the program would operate. 19
(c) Items exchanged at the program shall not be deemed drug paraphernalia under 20
this section while located at the program. 21
(6) (a) Prior to searching a person, a person's premises, or a person's vehicle, a peace 22
officer may inquire as to the presence of needles or other sharp objects in the 23
areas to be searched that may cut or puncture the officer and offer to not 24
charge a person with possession of drug paraphernalia if the person declares 25
to the officer the presence of the needle or other sharp object. If, in response 26
to the offer, the person admits to the presence of the needle or other sharp 27 UNOFFICIAL COPY 23 RS BR 953
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object prior to the search, the person shall not be charged with or prosecuted 1
for possession of drug paraphernalia for the needle or sharp object or for 2
possession of a controlled substance for residual or trace drug amounts 3
present on the needle or sharp object. 4
(b) The exemption under this subsection shall not apply to any other drug 5
paraphernalia that may be present and found during the search or to controlled 6
substances present in other than residual or trace amounts. 7
(7) (a) This section shall not prohibit the retail sale of hypodermic syringes and 8
needles without a prescription in pharmacies. 9
(b) Hypodermic syringe and needle inventory of a pharmacy shall not be deemed 10
drug paraphernalia under this section. 11
(8) Any person who violates any provision of this section shall be guilty of a Class A 12
misdemeanor. 13
Section 41. KRS 12.020 is amended to read as follows: 14
Departments, program cabinets and their departments, and the respective major 15
administrative bodies that they include are enumerated in this section. It is not intended 16
that this enumeration of administrative bodies be all-inclusive. Every authority, board, 17
bureau, interstate compact, commission, committee, conference, council, office, or any 18
other form of organization shall be included in or attached to the department or program 19
cabinet in which they are included or to which they are attached by statute or statutorily 20
authorized executive order; except in the case of the Personnel Board and where the 21
attached department or administrative body is headed by a constitutionally elected 22
officer, the attachment shall be solely for the purpose of dissemination of information and 23
coordination of activities and shall not include any authority over the functions, 24
personnel, funds, equipment, facilities, or records of the department or administrative 25
body. 26
I. Cabinet for General Government - Departments headed by elected officers: 27 UNOFFICIAL COPY 23 RS BR 953
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(1) The Governor. 1
(2) Lieutenant Governor. 2
(3) Department of State. 3
(a) Secretary of State. 4
(b) Board of Elections. 5
(c) Registry of Election Finance. 6
(4) Department of Law. 7
(a) Attorney General. 8
(5) Department of the Treasury. 9
(a) Treasurer. 10
(6) Department of Agriculture. 11
(a) Commissioner of Agriculture. 12
(b) Agricultural Development Board. 13
(c) Kentucky Agricultural Finance Corporation. 14
(7) Auditor of Public Accounts. 15
II. Program cabinets headed by appointed officers: 16
(1) Justice and Public Safety Cabinet: 17
(a) Department of Kentucky State Police. 18
1. Office of Administrative Services. 19
a. Division of Operational Support. 20
b. Division of Management Services. 21
2. Office of Operations. 22
a. Division of West Troops. 23
b. Division of East Troops. 24
c. Division of Special Enforcement. 25
d. Division of Commercial Vehicle Enforcement. 26
3. Office of Technical Services. 27 UNOFFICIAL COPY 23 RS BR 953
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a. Division of Forensic Sciences. 1
b. Division of Information Technology. 2
(b) Department of Criminal Justice Training. 3
(c) Department of Corrections. 4
(d) Department of Juvenile Justice. 5
(e) Office of the Secretary. 6
(f) Office of Drug Control Policy. 7
(g) Office of Legal Services. 8
(h) Office of the Kentucky State Medical Examiner. 9
(i) Parole Board. 10
(j) Kentucky State Corrections Commission. 11
(k) Office of Legislative and Intergovernmental Services. 12
(l) Office of Human Resource Management. 13
1. Division of Human Resource Administration. 14
2. Division of Employee Management. 15
(m) Department of Public Advocacy. 16
(n) Office of Communications. 17
1. Information Technology Services Division. 18
(o) Office of Financial Management Services. 19
1. Division of Financial Management. 20
(p) Grants Management Division. 21
(2) Energy and Environment Cabinet: 22
(a) Office of the Secretary. 23
1. Office of Legislative and Intergovernmental Affairs. 24
2. Office of Legal Services. 25
a. Legal Division I. 26
b. Legal Division II. 27 UNOFFICIAL COPY 23 RS BR 953
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3. Office of Administrative Hearings. 1
4. Office of Communication. 2
5. Mine Safety Review Commission. 3
6. Office of Kentucky Nature Preserves. 4
7. Kentucky Public Service Commission. 5
(b) Department for Environmental Protection. 6
1. Office of the Commissioner. 7
2. Division for Air Quality. 8
3. Division of Water. 9
4. Division of Environmental Program Support. 10
5. Division of Waste Management. 11
6. Division of Enforcement. 12
7. Division of Compliance Assistance. 13
(c) Department for Natural Resources. 14
1. Office of the Commissioner. 15
2. Division of Mine Permits. 16
3. Division of Mine Reclamation and Enforcement. 17
4. Division of Abandoned Mine Lands. 18
5. Division of Oil and Gas. 19
6. Division of Mine Safety. 20
7. Division of Forestry. 21
8. Division of Conservation. 22
9. Office of the Reclamation Guaranty Fund. 23
(d) Office of Energy Policy. 24
1. Division of Energy Assistance. 25
(e) Office of Administrative Services. 26
1. Division of Human Resources Management. 27 UNOFFICIAL COPY 23 RS BR 953
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2. Division of Financial Management. 1
3. Division of Information Services. 2
(3) Public Protection Cabinet. 3
(a) Office of the Secretary. 4
1. Office of Communications and Public Outreach. 5
2. Office of Legal Services. 6
a. Insurance Legal Division. 7
b. Charitable Gaming Legal Division. 8
c. Alcoholic Beverage and Cannabis Control Legal Division. 9
d. Housing, Buildings and Construction Legal Division. 10
e. Financial Institutions Legal Division. 11
f. Professional Licensing Legal Division. 12
3. Office of Administrative Hearings. 13
4. Office of Administrative Services. 14
a. Division of Human Resources. 15
b. Division of Fiscal Responsibility. 16
(b) Office of Claims and Appeals. 17
1. Board of Tax Appeals. 18
2. Board of Claims. 19
3. Crime Victims Compensation Board. 20
(c) Kentucky Boxing and Wrestling Commission. 21
(d) Kentucky Horse Racing Commission. 22
1. Office of Executive Director. 23
a. Division of Pari-mutuel Wagering and Compliance. 24
b. Division of Stewards. 25
c. Division of Licensing. 26
d. Division of Enforcement. 27 UNOFFICIAL COPY 23 RS BR 953
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e. Division of Incentives and Development. 1
f. Division of Veterinary Services. 2
(e) Department of Alcoholic Beverage and Cannabis Control. 3
1. Division of Distilled Spirits. 4
2. Division of Malt Beverages. 5
3. Division of Medicinal Cannabis. 6
4. Division of Alcohol and Cannabis Enforcement. 7
(f) Department of Charitable Gaming. 8
1. Division of Licensing and Compliance. 9
2. Division of Enforcement. 10
(g) Department of Financial Institutions. 11
1. Division of Depository Institutions. 12
2. Division of Non-Depository Institutions. 13
3. Division of Securities. 14
(h) Department of Housing, Buildings and Construction. 15
1. Division of Fire Prevention. 16
2. Division of Plumbing. 17
3. Division of Heating, Ventilation, and Air Conditioning. 18
4. Division of Building Code Enforcement. 19
(i) Department of Insurance. 20
1. Division of Health and Life Insurance and Managed Care. 21
2. Division of Property and Casualty Insurance. 22
3. Division of Administrative Services. 23
4. Division of Financial Standards and Examination. 24
5. Division of Licensing. 25
6. Division of Insurance Fraud Investigation. 26
7. Division of Consumer Protection. 27 UNOFFICIAL COPY 23 RS BR 953
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(j) Department of Professional Licensing. 1
1. Real Estate Authority. 2
(4) Transportation Cabinet: 3
(a) Department of Highways. 4
1. Office of Project Development. 5
2. Office of Project Delivery and Preservation. 6
3. Office of Highway Safety. 7
4. Highway District Offices One through Twelve. 8
(b) Department of Vehicle Regulation. 9
(c) Department of Aviation. 10
(d) Department of Rural and Municipal Aid. 11
1. Office of Local Programs. 12
2. Office of Rural and Secondary Roads. 13
(e) Office of the Secretary. 14
1. Office of Public Affairs. 15
2. Office for Civil Rights and Small Business Development. 16
3. Office of Budget and Fiscal Management. 17
4. Office of Inspector General. 18
5. Secretary's Office of Safety. 19
(f) Office of Support Services. 20
(g) Office of Transportation Delivery. 21
(h) Office of Audits. 22
(i) Office of Human Resource Management. 23
(j) Office of Information Technology. 24
(k) Office of Legal Services. 25
(5) Cabinet for Economic Development: 26
(a) Office of the Secretary. 27 UNOFFICIAL COPY 23 RS BR 953
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1. Office of Legal Services. 1
2. Department for Business Development. 2
3. Department for Financial Services. 3
a. Kentucky Economic Development Finance Authority. 4
b. Finance and Personnel Division. 5
c. IT and Resource Management Division. 6
d. Compliance Division. 7
e. Incentive Administration Division. 8
f. Bluegrass State Skills Corporation. 9
4. Office of Marketing and Public Affairs. 10
a. Communications Division. 11
b. Graphics Design Division. 12
5. Office of Workforce, Community Development, and Research. 13
6. Office of Entrepreneurship and Small Business Innovation. 14
a. Commission on Small Business Innovation and Advocacy. 15
(6) Cabinet for Health and Family Services: 16
(a) Office of the Secretary. 17
1. Office of the Ombudsman and Administrative Review. 18
2. Office of Public Affairs. 19
3. Office of Legal Services. 20
4. Office of Inspector General. 21
5. Office of Human Resource Management. 22
6. Office of Finance and Budget. 23
7. Office of Legislative and Regulatory Affairs. 24
8. Office of Administrative Services. 25
9. Office of Application Technology Services. 26
10. Office of Data Analytics. 27 UNOFFICIAL COPY 23 RS BR 953
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(b) Department for Public Health. 1
(c) Department for Medicaid Services. 2
(d) Department for Behavioral Health, Developmental and Intellectual 3
Disabilities. 4
(e) Department for Aging and Independent Living. 5
(f) Department for Community Based Services. 6
(g) Department for Income Support. 7
(h) Department for Family Resource Centers and Volunteer Services. 8
(i) Office for Children with Special Health Care Needs. 9
(7) Finance and Administration Cabinet: 10
(a) Office of the Secretary. 11
(b) Office of the Inspector General. 12
(c) Office of Legislative and Intergovernmental Affairs. 13
(d) Office of General Counsel. 14
(e) Office of the Controller. 15
(f) Office of Administrative Services. 16
(g) Office of Policy and Audit. 17
(h) Department for Facilities and Support Services. 18
(i) Department of Revenue. 19
(j) Commonwealth Office of Technology. 20
(k) State Property and Buildings Commission. 21
(l) Office of Equal Employment Opportunity and Contract Compliance. 22
(m) Kentucky Employees Retirement Systems. 23
(n) Commonwealth Credit Union. 24
(o) State Investment Commission. 25
(p) Kentucky Housing Corporation. 26
(q) Kentucky Local Correctional Facilities Construction Authority. 27 UNOFFICIAL COPY 23 RS BR 953
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(r) Kentucky Turnpike Authority. 1
(s) Historic Properties Advisory Commission. 2
(t) Kentucky Higher Education Assistance Authority. 3
(u) Kentucky River Authority. 4
(v) Kentucky Teachers' Retirement System Board of Trustees. 5
(w) Executive Branch Ethics Commission. 6
(x) Office of Fleet Management. 7
(8) Tourism, Arts and Heritage Cabinet: 8
(a) Kentucky Department of Tourism. 9
1. Division of Tourism Services. 10
2. Division of Marketing and Administration. 11
3. Division of Communications and Promotions. 12
(b) Kentucky Department of Parks. 13
1. Division of Information Technology. 14
2. Division of Human Resources. 15
3. Division of Financial Operations. 16
4. Division of Purchasing. 17
5. Division of Facilities. 18
6. Division of Park Operations. 19
7. Division of Sales, Marketing, and Customer Service. 20
8. Division of Engagement. 21
9. Division of Food Services. 22
10. Division of Rangers. 23
(c) Department of Fish and Wildlife Resources. 24
1. Division of Law Enforcement. 25
2. Division of Administrative Services. 26
3. Division of Engineering, Infrastructure, and Technology. 27 UNOFFICIAL COPY 23 RS BR 953
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4. Division of Fisheries. 1
5. Division of Information and Education. 2
6. Division of Wildlife. 3
7. Division of Marketing. 4
(d) Kentucky Horse Park. 5
1. Division of Support Services. 6
2. Division of Buildings and Grounds. 7
3. Division of Operational Services. 8
(e) Kentucky State Fair Board. 9
1. Office of Administrative and Information Technology Services. 10
2. Office of Human Resources and Access Control. 11
3. Division of Expositions. 12
4. Division of Kentucky Exposition Center Operations. 13
5. Division of Kentucky International Convention Center. 14
6. Division of Public Relations and Media. 15
7. Division of Venue Services. 16
8. Division of Personnel Management and Staff Development. 17
9. Division of Sales. 18
10. Division of Security and Traffic Control. 19
11. Division of Information Technology. 20
12. Division of the Louisville Arena. 21
13. Division of Fiscal and Contract Management. 22
14. Division of Access Control. 23
(f) Office of the Secretary. 24
1. Office of Finance. 25
2. Office of Government Relations and Administration. 26
(g) Office of Legal Affairs. 27 UNOFFICIAL COPY 23 RS BR 953
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(h) Office of Human Resources. 1
(i) Office of Public Affairs and Constituent Services. 2
(j) Office of Arts and Cultural Heritage. 3
(k) Kentucky African-American Heritage Commission. 4
(l) Kentucky Foundation for the Arts. 5
(m) Kentucky Humanities Council. 6
(n) Kentucky Heritage Council. 7
(o) Kentucky Arts Council. 8
(p) Kentucky Historical Society. 9
1. Division of Museums. 10
2. Division of Oral History and Educational Outreach. 11
3. Division of Research and Publications. 12
4. Division of Administration. 13
(q) Kentucky Center for the Arts. 14
1. Division of Governor's School for the Arts. 15
(r) Kentucky Artisans Center at Berea. 16
(s) Northern Kentucky Convention Center. 17
(t) Eastern Kentucky Exposition Center. 18
(9) Personnel Cabinet: 19
(a) Office of the Secretary. 20
(b) Department of Human Resources Administration. 21
(c) Office of Employee Relations. 22
(d) Kentucky Public Employees Deferred Compensation Authority. 23
(e) Office of Administrative Services. 24
(f) Office of Legal Services. 25
(g) Governmental Services Center. 26
(h) Department of Employee Insurance. 27 UNOFFICIAL COPY 23 RS BR 953
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(i) Office of Diversity, Equality, and Training. 1
(j) Office of Public Affairs. 2
(10) Education and Labor Cabinet: 3
(a) Office of the Secretary. 4
1. Office of Legal Services. 5
a. Workplace Standards Legal Division. 6
b. Workers' Claims Legal Division. 7
c. Workforce Development Legal Division. 8
2. Office of Administrative Services. 9
a. Division of Human Resources Management. 10
b. Division of Fiscal Management. 11
c. Division of Operations and Support Services. 12
3. Office of Technology Services. 13
a. Division of Information Technology Services. 14
4. Office of Policy and Audit. 15
5. Office of Legislative Services. 16
6. Office of Communications. 17
7. Office of the Kentucky Center for Statistics. 18
8. Board of the Kentucky Center for Statistics. 19
9. Early Childhood Advisory Council. 20
10. Governors' Scholars Program. 21
11. Governor's School for Entrepreneurs Program. 22
12. Foundation for Adult Education. 23
(b) Department of Education. 24
1. Kentucky Board of Education. 25
2. Kentucky Technical Education Personnel Board. 26
3. Education Professional Standards Board. 27 UNOFFICIAL COPY 23 RS BR 953
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(c) Board of Directors for the Center for School Safety. 1
(d) Department for Libraries and Archives. 2
(e) Kentucky Environmental Education Council. 3
(f) Kentucky Educational Television. 4
(g) Kentucky Commission on the Deaf and Hard of Hearing. 5
(h) Department of Workforce Development. 6
1. Career Development Office. 7
2. Office of Vocational Rehabilitation. 8
a. Division of Kentucky Business Enterprise. 9
b. Division of the Carl D. Perkins Vocational Training Center. 10
c. Division of Blind Services. 11
d. Division of Field Services. 12
e. Statewide Council for Vocational Rehabilitation. 13
f. Employment First Council. 14
3. Office of Employer and Apprenticeship Services. 15
a. Division of Apprenticeship. 16
4. Kentucky Apprenticeship Council. 17
5. Division of Technical Assistance. 18
6. Office of Adult Education. 19
7. Office of the Kentucky Workforce Innovation Board. 20
(i) Department of Workplace Standards. 21
1. Division of Occupational Safety and Health Compliance. 22
2. Division of Occupational Safety and Health Education and 23
Training. 24
3. Division of Wages and Hours. 25
(j) Office of Unemployment Insurance. 26
(k) Kentucky Unemployment Insurance Commission. 27 UNOFFICIAL COPY 23 RS BR 953
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(l) Department of Workers' Claims. 1
1. Division of Workers' Compensation Funds. 2
2. Office of Administrative Law Judges. 3
3. Division of Claims Processing. 4
4. Division of Security and Compliance. 5
5. Division of Specialist and Medical Services. 6
6. Workers' Compensation Board. 7
(m) Workers' Compensation Funding Commission. 8
(n) Kentucky Occupational Safety and Health Standards Board. 9
(o) State Labor Relations Board. 10
(p) Employers' Mutual Insurance Authority. 11
(q) Kentucky Occupational Safety and Health Review Commission. 12
(r) Workers' Compensation Nominating Committee. 13
(s) Office of Educational Programs. 14
(t) Kentucky Workforce Innovation Board. 15
(u) Kentucky Commission on Proprietary Education. 16
(v) Kentucky Work Ready Skills Advisory Committee. 17
(w) Kentucky Geographic Education Board. 18
III. Other departments headed by appointed officers: 19
(1) Council on Postsecondary Education. 20
(2) Department of Military Affairs. 21
(3) Department for Local Government. 22
(4) Kentucky Commission on Human Rights. 23
(5) Kentucky Commission on Women. 24
(6) Department of Veterans' Affairs. 25
(7) Kentucky Commission on Military Affairs. 26
(8) Office of Minority Empowerment. 27 UNOFFICIAL COPY 23 RS BR 953
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(9) Governor's Council on Wellness and Physical Activity. 1
(10) Kentucky Communications Network Authority. 2
Section 42. KRS 12.252 is amended to read as follows: 3
(1) There is established within the Public Protection Cabinet a Department of Financial 4
Institutions, a Department of Insurance, a Department of Housing, Buildings and 5
Construction, a Department of Charitable Gaming, a Department of Professional 6
Licensing, and a Department of Alcoholic Beverage and Cannabis Control. Each 7
department shall be headed by a commissioner appointed by the Governor as 8
required by KRS 12.040 and, where appropriate, by KRS 238.510, 241.015, and 9
304.2-020. Commissioners shall be directly responsible to the secretary and shall 10
perform the functions, powers, and duties provided by law and prescribed by the 11
secretary. 12
(2) The secretary of the Public Protection Cabinet shall be appointed by the Governor 13
in accordance with KRS 12.255. The Office of the Secretary shall contain the 14
following entities: 15
(a) The Office of Communications and Public Outreach, which shall be headed 16
by an executive director appointed by the secretary with the approval of the 17
Governor in accordance with KRS 12.050; 18
(b) The Office of Legal Services, which shall be headed by an executive director 19
appointed by the secretary with the approval of the Governor in accordance 20
with KRS 12.050 and 12.210; 21
(c) The Office of Administrative Hearings, which shall be headed by an executive 22
director appointed by the secretary with the approval of the Governor in 23
accordance with KRS 12.050 and 12.210; and 24
(d) The Office of Administrative Services, which shall be headed by an executive 25
director appointed by the secretary with the approval of the Governor in 26
accordance with KRS 12.050. 27 UNOFFICIAL COPY 23 RS BR 953
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(3) There is established within the Public Protection Cabinet the Office of Claims and 1
Appeals pursuant to KRS 49.010. 2
(4) The Kentucky Horse Racing Commission is attached to the Public Protection 3
Cabinet for administrative purposes only, except as provided in KRS 131.330. 4
(5) There is established within the Public Protection Cabinet the Kentucky Boxing and 5
Wrestling Commission, which shall be headed by an executive director appointed 6
by the secretary with the approval of the Governor as required by KRS 12.050. The 7
executive director shall be directly responsible to the secretary and shall perform 8
the functions, powers, and duties provided by law and prescribed by the secretary. 9
Section 43. KRS 15.300 is amended to read as follows: 10
(1) As used in this section, "consent order" means the consent order of December 21, 11
1998, agreed to in Commonwealth of Kentucky v. Philip Morris Inc. et al., Docket 12
Number 98-CI-01579, Franklin Circuit Court. 13
(2) There is created the Tobacco Master Settlement Agreement Compliance Advisory 14
Board in the Department of Law. The board shall be composed of six (6) members 15
as follows: 16
(a) The Attorney General, or the Attorney General's designee; 17
(b) The secretary of the Cabinet for Health and Family Services, or the secretary's 18
designee; 19
(c) The Commissioner of Agriculture, or the Commissioner's designee; 20
(d) The secretary of the Public Protection Cabinet, or the secretary's designee; 21
and 22
(e) Two (2) citizens at large appointed by the Attorney General. 23
(3) The citizen members of the board shall serve for terms of one (1) year and until 24
their successors are appointed. The citizen members shall be eligible for successive 25
terms on the board. 26
(4) The board shall annually elect a member to serve as its chair and shall meet at least 27 UNOFFICIAL COPY 23 RS BR 953
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quarterly on a date set by the board. Board members shall be reimbursed for 1
necessary expenses incurred in serving on the board. 2
(5) The board may adopt rules governing the conduct of its meetings, the creation of 3
meeting agendas, and other procedural matters it deems necessary. The board may 4
adopt reporting forms, which shall be developed in consultation with participating 5
agencies. 6
(6) The Office of the Attorney General shall: 7
(a) Enter into a memorandum of agreement with the Department of Public Health 8
of the Cabinet for Health and Family Services, the Department of Alcoholic 9
Beverage and Cannabis Control in the Public Protection Cabinet, and the 10
Department of Agriculture to identify and report possible violations of the 11
consent order; 12
(b) Attempt to secure funding under the master settlement agreement to reimburse 13
the agencies specified in paragraph (a) of this subsection for any compliance 14
activity that they perform; and 15
(c) Provide necessary funding and staff for administrative expenses related to the 16
operation of the board. The board may request assistance from other state 17
agencies. 18
(7) The Tobacco Master Settlement Agreement Compliance Advisory Board shall: 19
(a) Identify activities for which training is required for personnel of the state 20
agencies specified in paragraph (a) of subsection (6) of this section that are 21
responsible for identifying and reporting possible violations of the consent 22
order; 23
(b) Determine eligible compliance training costs and seek reimbursement for the 24
costs; and 25
(c) Notify the appropriate tobacco manufacturer, in writing, of any alleged 26
violation of the consent order and request a response and, if applicable, a 27 UNOFFICIAL COPY 23 RS BR 953
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corrective action plan within thirty (30) days from the date of the notice. If the 1
manufacturer fails to respond or to satisfactorily resolve the matter, the board 2
shall review the matter at its next meeting and may refer the matter to the 3
Office of the Attorney General for enforcement action, if warranted. 4
Section 44. KRS 15.380 is amended to read as follows: 5
(1) The following officers employed or appointed as full-time, part-time, or auxiliary 6
officers, whether paid or unpaid, shall be certified: 7
(a) Department of Kentucky State Police officers, but for the commissioner of the 8
Department of Kentucky State Police; 9
(b) City, county, and urban-county police officers; 10
(c) Court security officers and deputy sheriffs, except those identified in KRS 11
70.045 and 70.263(3); 12
(d) State or public university police officers appointed pursuant to KRS 164.950; 13
(e) School resource officers as defined in KRS 158.441 and employed or 14
appointed under KRS 158.4414; 15
(f) Airport safety and security officers appointed under KRS 183.880; 16
(g) Department of Alcoholic Beverage and Cannabis Control investigators 17
appointed under KRS 241.090; 18
(h) Division of Insurance Fraud Investigation investigators appointed under KRS 19
304.47-040; 20
(i) Fire investigators appointed or employed under KRS 95A.100 or 227.220; and 21
(j) County detectives appointed in accordance with KRS 69.360 after July 1, 22
2019. 23
(2) The requirements of KRS 15.380 to 15.404 for certification may apply to all state 24
peace officers employed pursuant to KRS Chapter 18A and shall, if adopted, be 25
incorporated by the Personnel Cabinet for job specifications. 26
(3) Additional training in excess of the standards set forth in KRS 15.380 to 15.404 for 27 UNOFFICIAL COPY 23 RS BR 953
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all peace officers possessing arrest powers who have specialized law enforcement 1
responsibilities shall be the responsibility of the employing agency. 2
(4) The following officers may, upon request of the employing agency, be certified by 3
the council: 4
(a) Deputy coroners; 5
(b) Deputy constables; 6
(c) Deputy jailers; 7
(d) Deputy sheriffs under KRS 70.045 and 70.263(3); 8
(e) Officers appointed under KRS 61.360; 9
(f) Officers appointed under KRS 61.902, except those who are school resource 10
officers as defined in KRS 158.441 and who shall be certified under 11
subsection (1)(e) of this section; 12
(g) Private security officers; 13
(h) Employees of a correctional services division created pursuant to KRS 14
67A.028 and employees of a metropolitan correctional services department 15
created pursuant to KRS 67B.010 to 67B.080; and 16
(i) Investigators employed by the Department of Charitable Gaming in 17
accordance with KRS 238.510; and 18
(j) Commonwealth detectives employed under KRS 69.110 and county 19
detectives employed under KRS 69.360. 20
(5) The following officers shall be exempted from the certification requirements but 21
may upon their request be certified by the council: 22
(a) Sheriffs; 23
(b) Coroners; 24
(c) Constables; 25
(d) Jailers; 26
(e) Kentucky Horse Racing Commission security officers employed under KRS 27 UNOFFICIAL COPY 23 RS BR 953
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230.240; and 1
(f) Commissioner of the State Police. 2
(6) Federal peace officers cannot be certified under KRS 15.380 to 15.404. 3
(7) Local alcoholic beverage control investigators appointed under KRS Chapter 241 4
on or after April 1, 2019, shall be certified by the council if all minimum standards 5
set forth in KRS 15.380 to 15.404 have been met. Local alcoholic beverage control 6
investigators appointed under KRS Chapter 241 before April 1, 2019, shall be 7
exempt from this requirement. 8
Section 45. KRS 15.398 is amended to read as follows: 9
The following Kentucky Revised Statutes and any administrative regulations 10
promulgated thereunder affecting those peace officers required to be certified pursuant to 11
KRS 15.380 to 15.404 shall not be superseded by the provisions of KRS 15.380 to 12
15.404, and in all instances the provisions of all statutes specified below shall prevail: 13
(1) KRS Chapter 16, relating to Department of Kentucky State Police Officers; 14
(2) KRS Chapter 70, relating to sheriffs, and deputy sheriffs; 15
(3) KRS Chapter 78, relating to county police; 16
(4) KRS Chapters 15 and 95, except for KRS 95.955, relating to city and urban-county 17
police; 18
(5) KRS Chapter 183, relating to airport safety and security officers; 19
(6) KRS Chapter 164, relating to State Universities and Colleges; Regional Education 20
and Archaeology officers; 21
(7) KRS Chapter 18A, relating to all state peace officers; 22
(8) KRS 241.090, relating to Department of Alcoholic Beverage and Cannabis Control 23
investigators; 24
(9) KRS 304.47-040, relating to Division of Insurance Fraud Investigators; and 25
(10) Any other statutes affecting peace officers not specifically cited herein. 26
Section 46. KRS 15.420 is amended to read as follows: 27 UNOFFICIAL COPY 23 RS BR 953
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As used in KRS 15.410 to 15.510, unless the context otherwise requires: 1
(1) "Cabinet" means the Justice and Public Safety Cabinet; 2
(2) (a) "Police officer" means: 3
1. A local officer, limited to: 4
a. A full-time: 5
i. Member of a lawfully organized police department of 6
county, urban-county, or city government; or 7
ii. Sheriff or full-time deputy sheriff, including any sheriff 8
providing court security or appointed under KRS 70.030; 9
b. A school resource officer as defined in KRS 158.441; or 10
c. One (1) of the following who is otherwise eligible for an annual 11
supplement established in accordance with KRS 15.460, but who 12
does not receive one: 13
i. An officer serving on a joint task force; 14
ii. A detective employed by a county attorney; 15
iii. A process server for juvenile courts within a consolidated 16
local government; and 17
iv. A local alcoholic beverage control investigator appointed 18
pursuant to KRS Chapter 241; and 19
2. A state officer, limited to: 20
a. A public university police officer; 21
b. A Kentucky state trooper; 22
c. A Kentucky State Police arson investigator; 23
d. A Kentucky State Police hazardous device investigator; 24
e. A Kentucky State Police legislative security specialist; 25
f. A Kentucky vehicle enforcement officer; 26
g. A Kentucky Horse Park mounted patrol officer, subject to KRS 27 UNOFFICIAL COPY 23 RS BR 953
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15.460(1)(f); 1
h. A Kentucky state park ranger, subject to KRS 15.460(1)(f); 2
i. An agriculture investigator; 3
j. A charitable gaming investigator; 4
k. An alcoholic beverage and cannabis control investigator; 5
l. An insurance fraud investigator; 6
m. An Attorney General investigator; 7
n. A Kentucky Department of Fish and Wildlife Resources 8
conservation officer, subject to KRS 15.460(1)(e); and 9
o. Any detective for a Commonwealth's attorney who would 10
otherwise be eligible for a supplement established in accordance 11
with KRS 15.460, but who does not receive one; 12
who is responsible for the prevention and detection of crime and the 13
enforcement of the general criminal laws of the state; 14
(b) "Police officer" does not include any sheriff who earns the maximum 15
constitutional salary for this office, any special deputy sheriff appointed under 16
KRS 70.045, any constable, deputy constable, district detective, deputy 17
district detective, special local peace officer, auxiliary police officer, or any 18
other peace officer not specifically authorized in KRS 15.410 to 15.510; 19
(3) "Police department" means the employer of a police officer; 20
(4) "Retirement plan" means a defined benefit plan consisting of required employer 21
contributions pursuant to KRS 61.565, 61.702, or any other provision of law; 22
(5) "Unit of government" means any city, county, combination of cities and counties, 23
public university, state agency, local school district, or county sheriff's office of the 24
Commonwealth; and 25
(6) "Validated job task analysis" means the core job description that describes the 26
minimum entry level requirements, qualifications, and training requirements for 27 UNOFFICIAL COPY 23 RS BR 953
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peace officers in the Commonwealth, and that is based upon an actual survey and 1
study of police officer duties and responsibilities conducted by an entity recognized 2
by the council as being competent to conduct such a study. 3
Section 47. KRS 15A.340 is amended to read as follows: 4
(1) As used in this section and KRS 15A.342 and 15A.344, "KY-ASAP" means the 5
Kentucky Agency for Substance Abuse Policy. 6
(2) The Office of Drug Control Policy shall administer an endowment from interest 7
generated through funds appropriated or gifts, donations, or funds received from 8
any source. The Office of Drug Control Policy may expend endowment principal, if 9
necessary in its discretion, to carry out the purposes of this section and KRS 10
15A.342 and 15A.344. These expenditures from the endowment principal are 11
hereby appropriated for this purpose. 12
(3) (a) The Office of Drug Control Policy shall oversee the activities specified in this 13
section and KRS 15A.342 and 15A.344 and provide administrative support to 14
the seventeen (17) member KY-ASAP Board, which is created to oversee the 15
activities of KY-ASAP. Membership of the board shall be appointed by the 16
Governor and shall consist of the following: 17
1. One (1) member representing the Kentucky Family Resource Youth 18
Services Coalition, or a designee; 19
2. One (1) member representing the Kentucky Health Department 20
Association, or a designee; 21
3. The secretary of the Cabinet for Health and Family Services, or 22
designee; 23
4. The secretary of the Justice and Public Safety Cabinet, or a designee; 24
5. One (1) member representing the Division of Behavioral Health within 25
the Department for Behavioral Health, Developmental and Intellectual 26
Disabilities, Cabinet for Health and Family Services, or a designee; 27 UNOFFICIAL COPY 23 RS BR 953
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6. The commissioner of the Department for Public Health, Cabinet for 1
Health and Family Services, or a designee; 2
7. The commissioner of the Department of Alcoholic Beverage and 3
Cannabis Control, or a designee; 4
8. The commissioner of the Department of Education; 5
9. The director of the Administrative Office of the Courts, or a designee; 6
10. One (1) member representing the Kentucky Association of Regional 7
Programs, or a designee; 8
11. One (1) member representing the Kentucky Heart Association, or a 9
designee; 10
12. One (1) member representing the Kentucky Lung Association, or a 11
designee; 12
13. One (1) member representing the Kentucky Cancer Society, or a 13
designee; 14
14. Two (2) members representing local tobacco addiction and substance 15
abuse advisory and coordination boards; and 16
15. Two (2) members representing private community-based organizations, 17
whether for-profit or nonprofit, with experience in programs involving 18
smoking cessation or prevention or alcohol or substance abuse 19
prevention and treatment. 20
(b) Members shall serve for a term of four (4) years, may be reappointed, and 21
may serve no more than two (2) consecutive terms. Members shall not be 22
compensated but shall receive reimbursement for expenses incurred while 23
performing board business. 24
(c) The board shall meet at least quarterly. A quorum of nine (9) members shall 25
be required for the transaction of business. Meetings shall be held at the call 26
of the chair, or upon the written request of two (2) members to the chair. 27 UNOFFICIAL COPY 23 RS BR 953
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(d) The board shall: 1
1. Oversee deposits and expenditures from the endowment; 2
2. Request, in its discretion, an audit relating to the expenditure of 3
endowment funds; 4
3. Receive quarterly reports from the commissioner of the Department of 5
Alcoholic Beverage and Cannabis Control regarding KY-ASAP's 6
activities; 7
4. Progress toward development and implementation of the strategic plan; 8
5. Recommend to KY-ASAP the most efficient means for using public 9
funds to coordinate, supplement, and support high quality and ongoing 10
programs of all public agencies and private service providers related to 11
smoking cessation and prevention and alcohol and substance abuse 12
prevention and treatment; 13
6. Recommend matters for review and analysis by KY-ASAP; and 14
7. Perform other duties as necessary for the oversight of KY-ASAP. 15
(4) The Office of Drug Control Policy and KY-ASAP shall promote the 16
implementation of research-based strategies that target Kentucky's youth and adult 17
populations. 18
(5) The Office of Drug Control Policy and KY-ASAP shall vigorously pursue the 19
philosophy that tobacco in the hands of Kentucky's youth is a drug abuse problem 20
because of the addictive qualities of nicotine, and because tobacco is the most 21
prevalent gateway drug that leads to later and escalated drug and alcohol abuse. 22
Section 48. KRS 61.592 (Effective April 1, 2023) is amended to read as 23
follows: 24
(1) (a) "Hazardous position" for employees participating in the Kentucky Employees 25
Retirement System means: 26
1. Any position whose principal duties involve active law enforcement, 27 UNOFFICIAL COPY 23 RS BR 953
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including the positions of probation and parole officer and 1
Commonwealth detective, active fire suppression or prevention, or other 2
positions, including but not limited to pilots of the Transportation 3
Cabinet and paramedics and emergency medical technicians, with duties 4
that require frequent exposure to a high degree of danger or peril and 5
also require a high degree of physical conditioning; 6
2. Positions in the Department of Corrections in state correctional 7
institutions and the Kentucky Correctional Psychiatric Center with 8
duties that regularly and routinely require face-to-face contact with 9
inmates; and 10
3. Positions of employees who elect coverage under KRS 196.167(3)(b)2. 11
and who continue to provide educational services and support to inmates 12
as a Department of Corrections employee. 13
(b) The effective date of participation under hazardous duty coverage for 14
positions in the Department of Alcoholic Beverage and Cannabis Control 15
shall be April 1, 1998. The employer and employee contributions shall be paid 16
by the employer and forwarded to the retirement system for the period not 17
previously reported. 18
(2) Each employer may request of the board hazardous duty coverage for those 19
positions as defined in subsection (1) of this section. Upon request, each employer 20
shall certify to the system, in the manner prescribed by the board, the names of all 21
employees working in a hazardous position as defined in subsection (1) of this 22
section for which coverage is requested. The certification of the employer shall bear 23
the approval of the agent or agency responsible for the budget of the department or 24
county indicating that the required employer contributions have been provided for 25
in the budget of the employing department or county. The system shall determine 26
whether the employees whose names have been certified by the employer are 27 UNOFFICIAL COPY 23 RS BR 953
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working in positions meeting the definition of a hazardous position as provided by 1
subsection (1) of this section. This process shall not be required for employees who 2
elect coverage under KRS 196.167(3)(b)2. 3
(3) (a) An employee who elects coverage under KRS 196.167(3)(b)2., and an 4
employee participating in the Kentucky Employees Retirement System who is 5
determined by the system to be working in a hazardous position in accordance 6
with subsection (2) of this section, shall contribute, for each pay period for 7
which he or she receives compensation, eight percent (8%) of his or her 8
creditable compensation. 9
(b) Each employer shall pay employer contributions based on the creditable 10
compensation of the employees determined by the system to be working in a 11
hazardous position at the employer contribution rate as determined by the 12
board. The rate shall be determined by actuarial methods consistent with the 13
provisions of KRS 61.565. 14
(c) If the employer participated in the system prior to electing hazardous duty 15
coverage, the employer may pay to the system the cost of converting the 16
nonhazardous service to hazardous service from the date of participation to 17
the date the payment is made, or the employer may establish a payment 18
schedule for payment of the cost of the hazardous service above that which 19
would be funded within the existing employer contribution rate. The employer 20
may extend the payment schedule to a maximum of thirty (30) years. 21
Payments made by the employer under this subsection shall be deposited to 22
the retirement allowance account of the proper retirement system and these 23
funds shall not be considered accumulated contributions of the individual 24
members. If the employer elects not to make the additional payment, the 25
employee may pay the cost of converting the service and provide payment for 26
the cost as provided by KRS 61.552(9). Payments made by the employee 27 UNOFFICIAL COPY 23 RS BR 953
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under this subsection shall not be picked up, as described in KRS 61.560(4), 1
by the employer. If neither the employer nor employee makes the payment, 2
the service prior to hazardous coverage shall remain nonhazardous. The 3
provisions of this paragraph shall not apply to members who begin 4
participating in the systems administered by Kentucky Retirement Systems on 5
or after January 1, 2014. 6
(4) The normal retirement age, retirement allowance, hybrid cash balance plans except 7
as provided by KRS 16.583(2)(b)2. and 16.584, other benefits, eligibility 8
requirements, rights, and responsibilities of a member in a hazardous position, as 9
prescribed by subsections (1), (2), and (3) of this section, and the responsibilities, 10
rights, and requirements of his or her employer shall be as prescribed for a member 11
and employer participating in the State Police Retirement System as provided for by 12
KRS 16.505 to 16.652. 13
(5) Any person employed in a hazardous position after July 1, 1972, shall be required 14
to undergo a thorough medical examination by a licensed physician, and a copy of 15
the medical report of the physician shall be retained on file by the employee's 16
department or county and made available to the system upon request. 17
(6) If doubt exists regarding the benefits payable to a hazardous position employee 18
under this section, the board shall determine the benefits payable under KRS 61.510 19
to 61.705 or 16.505 to 16.652. 20
Section 49. KRS 62.160 is amended to read as follows: 21
(1) The state officers elected by the voters of the state at large, except the Governor and 22
the Lieutenant Governor, the heads of departments, offices, and cabinets of the state 23
government, the adjutant general, the members of the Public Service Commission, 24
the members of the State Fair Board and Fish and Wildlife Resources Commission, 25
and the members of the Board of Tax Appeals, Board of Claims, Crime Victims 26
Compensation Board, and the Alcoholic Beverage Control Board, shall each give 27 UNOFFICIAL COPY 23 RS BR 953
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bond. The amounts of the bonds shall be fixed by the Governor, which amounts as 1
to those offices set forth in subsection (2) of this section shall be not less than the 2
amounts set forth for the respective offices. At any time when it appears to be to the 3
interest of the Commonwealth, the Governor may increase the penal sum of any 4
bond or require a renewal of the bond with other or additional surety. 5
(2) The minimum sum of the bond for the following offices shall be as follows: 6
Secretary of State .............................................................................................$10,000 7
Attorney General................................................................................................10,000 8
State Treasurer .................................................................................................300,000 9
Secretary for economic development ................................................................10,000 10
Commissioner of Agriculture ............................................................................10,000 11
Secretary of education and labor .......................................................................10,000 12
Auditor of Public Accounts ...............................................................................25,000 13
Adjutant general .................................................................................................10,000 14
Secretary of finance and administration ..........................................................100,000 15
Commissioner of revenue ..................................................................................50,000 16
Secretary of transportation .................................................................................50,000 17
Commissioner of highways ...............................................................................50,000 18
Secretary of justice and public safety ................................................................50,000 19
Secretary of corrections .....................................................................................25,000 20
Commissioner for public health services ...........................................................10,000 21
Commissioner for natural resources ..................................................................50,000 22
State librarian .......................................................................................................5,000 23
Commissioner of alcoholic beverage and cannabis control .............................10,000 24
Commissioner of financial institutions ..............................................................25,000 25
Secretary for energy and environment ...............................................................50,000 26
Commissioner of insurance ...............................................................................50,000 27 UNOFFICIAL COPY 23 RS BR 953
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Commissioner of vehicle regulation ..................................................................10,000 1
Commissioner of fish and wildlife resources ......................................................5,000 2
Secretary for health and family services ............................................................20,000 3
Commissioner of environmental protection ......................................................10,000 4
Secretary of public protection ............................................................................10,000 5
Secretary of tourism, arts and heritage ..............................................................25,000 6
Commissioner for community based services ...................................................20,000 7
Member of the Public Service Commission ......................................................10,000 8
Member of State Fair Board ..............................................................................10,000 9
Member of Fish and Wildlife Resources Commission ........................................1,000 10
Member of Board of Tax Appeals .....................................................................10,000 11
Member of Board of Claims ..............................................................................10,000 12
Member of Crime Victims Compensation Board ..............................................10,000 13
Associate member of Alcoholic Beverage Control Board ...................................5,000 14
Commissioner of local government .................................................................100,000 15
Section 50. KRS 131.1815 is amended to read as follows: 16
(1) Whenever it is determined that a taxpayer, who holds a license under KRS Chapter 17
243, is a delinquent taxpayer as defined in subsection (2) of this section, the 18
department may, after giving notice as provided in subsection (3) of this section, 19
submit the name of the taxpayer to the Department of Alcoholic Beverage and 20
Cannabis Control for revocation of any license issued under KRS Chapter 243. 21
(2) Any of the following situations shall be sufficient to cause a taxpayer to be 22
classified as a "delinquent taxpayer" for purposes of this section: 23
(a) When a taxpayer has an overdue state tax liability arising directly or indirectly 24
from the manufacture, sale, transportation, or distribution of alcoholic 25
beverages, for which all protest and appeal rights granted by law have 26
expired, and the taxpayer has been contacted by the department concerning 27 UNOFFICIAL COPY 23 RS BR 953
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the overdue tax liability. This does not include a taxpayer who is making 1
current timely installment payments on the overdue tax liability under 2
agreement with the department; 3
(b) When a taxpayer has not filed a required tax return as of ninety (90) days after 4
the due date or after the extended due date, and the taxpayer has been 5
contacted by the department concerning the delinquent return; or 6
(c) When an owner, partner, or corporate officer of a proprietorship, partnership, 7
or corporation holding a license under KRS Chapter 243 held a similar 8
position in a business whose license was revoked as a "delinquent taxpayer," 9
and the tax liability remains unpaid as of ninety (90) days after the due date. 10
(3) At least twenty (20) days before submitting a taxpayer's name to the Department of 11
Alcoholic Beverage and Cannabis Control as provided in subsection (1) of this 12
section, the department shall notify the taxpayer by certified mail that the action is 13
to be taken. The notice shall state the reason for the action and shall set out the 14
amount of any tax liability including any applicable penalties and interest and any 15
other area of noncompliance that must be satisfied in order to prevent the 16
submission of his name to the Department of Alcoholic Beverage and Cannabis 17
Control as a delinquent taxpayer. 18
Section 51. KRS 211.285 is amended to read as follows: 19
(1) There is hereby created the malt beverage educational fund which shall provide 20
moneys on a matching basis for educational information and materials that deter or 21
eliminate underage drinking. The fund shall consist of moneys generated from one 22
percent (1%) of the excise tax collected from the sale and distribution of malt 23
beverages under KRS 243.720 and one percent (1%) of the wholesale tax collected 24
from distributors of malt beverages and microbreweries under KRS 243.884. 25
(2) The malt beverage educational fund shall be established in the State Treasury as a 26
trust and revolving account under KRS 45.253. Moneys in the account shall be 27 UNOFFICIAL COPY 23 RS BR 953
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distributed by the State Treasurer to the Malt Beverage Educational Corporation, a 1
nonprofit organization that is organized under the laws of this state, upon the 2
authorization of the secretary of the Cabinet for Health and Family Services. The 3
moneys shall be awarded to the corporation solely to fund educational programs to 4
deter or eliminate underage drinking. 5
(3) The secretary of the Cabinet for Health and Family Services shall authorize that 6
moneys from the fund be disbursed to the corporation upon the secretary's receipt of 7
a certification from the corporation showing the moneys the corporation has 8
received from malt beverage distributors, microbreweries, and other private sources 9
since the last certification. The moneys disbursed from the fund shall be equal to 10
the contributions that the corporation has received from its members and other 11
private sources during that period. The moneys in the fund shall be disbursed in 12
accordance with a schedule established by the secretary, and shall be disbursed until 13
the moneys in the fund are exhausted or until the moneys in the fund lapse in 14
accordance with subsection (4) of this section, whichever comes first. 15
(4) Moneys that are credited to the fund and not issued to the corporation shall lapse at 16
the end of the fiscal year and shall be returned to the general fund. 17
(5) As a condition of receiving the governmental funds, the corporation's board of 18
directors shall include the following among its directors: 19
(a) The Governor or his or her designee; 20
(b) The Attorney General or his or her designee; 21
(c) The President of the Senate or his or her designee; 22
(d) The Speaker of the House or his or her designee; 23
(e) The secretary of the Cabinet for Health and Family Services or his or her 24
designee; and 25
(f) The commissioner of the Department of Alcoholic Beverage and Cannabis 26
Control or his or her designee. 27 UNOFFICIAL COPY 23 RS BR 953
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(6) All expenditures of moneys from the fund shall be approved by a majority of those 1
persons set out in subsection (5)(a) to (f) of this section. If the moneys from the 2
fund are not expended in their entirety, any moneys that remain unused by the 3
corporation at the end of the fiscal year shall be returned to the general fund. 4
(7) Any moneys from the fund that are not expended shall be returned to the general 5
fund upon the dissolution of the corporation. 6
(8) Any high school in the Commonwealth of Kentucky that was registered with the 7
Department of Education as of July 1, 1997, may make an application to the Malt 8
Beverage Education Corporation by February 28 of each year and shall be granted a 9
minimum of five hundred dollars ($500) annually from the funds contributed by the 10
malt beverage educational fund for the single purpose of supporting "Project 11
Graduation" events. 12
Section 52. KRS 241.010 is amended to read as follows: 13
As used in KRS Chapters 241 to 244, unless the context requires otherwise: 14
(1) "Alcohol" means ethyl alcohol, hydrated oxide of ethyl or spirit of wine, from 15
whatever source or by whatever process it is produced; 16
(2) "Alcoholic beverage" means every liquid, solid, powder, or crystal, whether 17
patented or not, containing alcohol in an amount in excess of more than one percent 18
(1%) of alcohol by volume, which is fit for beverage purposes. It includes every 19
spurious or imitation liquor sold as, or under any name commonly used for, 20
alcoholic beverages, whether containing any alcohol or not. It does not include the 21
following products: 22
(a) Medicinal preparations manufactured in accordance with formulas prescribed 23
by the United States Pharmacopoeia, National Formulary, or the American 24
Institute of Homeopathy; 25
(b) Patented, patent, and proprietary medicines; 26
(c) Toilet, medicinal, and antiseptic preparations and solutions; 27 UNOFFICIAL COPY 23 RS BR 953
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(d) Flavoring extracts and syrups; 1
(e) Denatured alcohol or denatured rum; 2
(f) Vinegar and preserved sweet cider; 3
(g) Wine for sacramental purposes; and 4
(h) Alcohol unfit for beverage purposes that is to be sold for legitimate external 5
use; 6
(3) (a) "Alcohol vaporizing device" or "AWOL device" means any device, machine, 7
or process that mixes liquor, spirits, or any other alcohol product with pure 8
oxygen or by any other means produces a vaporized alcoholic product used 9
for human consumption; 10
(b) "Alcohol vaporizing device" or "AWOL device" does not include an inhaler, 11
nebulizer, atomizer, or other device that is designed and intended by the 12
manufacturer to dispense a prescribed or over-the-counter medication or a 13
device installed and used by a licensee under this chapter to demonstrate the 14
aroma of an alcoholic beverage; 15
(4) "Automobile race track" means a facility primarily used for vehicle racing that has a 16
seating capacity of at least thirty thousand (30,000) people; 17
(5) "Barrel-aged and batched cocktail" means an alcoholic beverage that is: 18
(a) Composed of: 19
1. Distilled spirits that have been dispensed from their original sealed 20
container; and 21
2. Other ingredients or alcoholic beverages; 22
(b) Placed into a barrel or container on the premises of a retail licensee; and 23
(c) Dispensed from the barrel or container as a retail sale by the drink; 24
(6) "Bed and breakfast" means a one (1) family dwelling unit that: 25
(a) Has guest rooms or suites used, rented, or hired out for occupancy or that are 26
occupied for sleeping purposes by persons not members of the single-family 27 UNOFFICIAL COPY 23 RS BR 953
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unit; 1
(b) Holds a permit under KRS Chapter 219; and 2
(c) Has an innkeeper who resides on the premises or property adjacent to the 3
premises during periods of occupancy; 4
(7) "Board" means the State Alcoholic Beverage Control Board created by KRS 5
241.030; 6
(8) "Bottle" means any container which is used for holding alcoholic beverages for the 7
use and sale of alcoholic beverages at retail; 8
(9) "Brewer" means any person who manufactures malt beverages or owns, occupies, 9
carries on, works, or conducts any brewery, either alone or through an agent; 10
(10) "Brewery" means any place or premises where malt beverages are manufactured for 11
sale, and includes all offices, granaries, mash rooms, cooling rooms, vaults, yards, 12
and storerooms connected with the premises; or where any part of the process of the 13
manufacture of malt beverages is carried on; or where any apparatus connected with 14
manufacture is kept or used; or where any of the products of brewing or 15
fermentation are stored or kept; 16
(11) "Building containing licensed premises" means the licensed premises themselves 17
and includes the land, tract of land, or parking lot in which the premises are 18
contained, and any part of any building connected by direct access or by an 19
entrance which is under the ownership or control of the licensee by lease holdings 20
or ownership; 21
(12) "Caterer" means a person operating a food service business that prepares food in a 22
licensed and inspected commissary, transports the food and alcoholic beverages to 23
the caterer's designated and inspected banquet hall or to an agreed location, and 24
serves the food and alcoholic beverages pursuant to an agreement with another 25
person; 26
(13) "Charitable organization" means a nonprofit entity recognized as exempt from 27 UNOFFICIAL COPY 23 RS BR 953
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federal taxation under section 501(c) of the Internal Revenue Code (26 U.S.C. sec. 1
501(c)) or any organization having been established and continuously operating 2
within the Commonwealth of Kentucky for charitable purposes for three (3) years 3
and which expends at least sixty percent (60%) of its gross revenue exclusively for 4
religious, educational, literary, civic, fraternal, or patriotic purposes; 5
(14) "Cider" means any fermented fruit-based beverage containing seven percent (7%) 6
or more alcohol by volume and includes hard cider and perry cider; 7
(15) "City administrator" means city alcoholic beverage control administrator; 8
(16) "Commercial airport" means an airport through which more than five hundred 9
thousand (500,000) passengers arrive or depart annually; 10
(17) (a) "Commercial quadricycle" means a vehicle equipped with a minimum of ten 11
(10) pairs of fully operative pedals for propulsion by means of human 12
muscular power and which: 13
1. Has four (4) wheels; 14
2. Is operated in a manner similar to that of a bicycle; 15
3. Is equipped with a minimum of thirteen (13) seats for passengers; 16
4. Has a unibody design; 17
5. Is equipped with a minimum of four (4) hydraulically operated brakes; 18
6. Is used for commercial tour purposes; 19
7. Is operated by the vehicle owner or an employee of the owner; and 20
8. Has an electrical assist system that shall only be used when traveling to 21
or from its storage location while not carrying passengers. 22
(b) A "commercial quadricycle" is not a motor vehicle as defined in KRS 186.010 23
or 189.010; 24
(18) "Commissioner" means the commissioner of the Department of Alcoholic Beverage 25
and Cannabis Control; 26
(19) "Consumer" means a person, persons, or business organization who purchases 27 UNOFFICIAL COPY 23 RS BR 953
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alcoholic beverages and who: 1
(a) Does not hold a license or permit issued by the department; 2
(b) Purchases the alcoholic beverages for personal consumption only and not for 3
resale; 4
(c) Is of lawful drinking age; and 5
(d) Receives the alcoholic beverages in territory where the alcoholic beverages 6
may be lawfully sold or received; 7
(20) "Convention center" means any facility which, in its usual and customary business, 8
provides seating for a minimum of one thousand (1,000) people and offers 9
convention facilities and related services for seminars, training and educational 10
purposes, trade association meetings, conventions, or civic and community events 11
or for plays, theatrical productions, or cultural exhibitions; 12
(21) "Convicted" and "conviction" means a finding of guilt resulting from a plea of 13
guilty, the decision of a court, or the finding of a jury, irrespective of a 14
pronouncement of judgment or the suspension of the judgment; 15
(22) "County administrator" means county alcoholic beverage control administrator; 16
(23) "Department" means the Department of Alcoholic Beverage and Cannabis Control; 17
(24) "Dining car" means a railroad passenger car that serves meals to consumers on any 18
railroad or Pullman car company; 19
(25) "Discount in the usual course of business" means price reductions, rebates, refunds, 20
and discounts given by wholesalers to distilled spirits and wine retailers pursuant to 21
an agreement made at the time of the sale of the merchandise involved and are 22
considered a part of the sales transaction, constituting reductions in price pursuant 23
to the terms of the sale, irrespective of whether the quantity discount was: 24
(a) Prorated and allowed on each delivery; 25
(b) Given in a lump sum after the entire quantity of merchandise purchased had 26
been delivered; or 27 UNOFFICIAL COPY 23 RS BR 953
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(c) Based on dollar volume or on the quantity of merchandise purchased; 1
(26) "Distilled spirits" or "spirits" means any product capable of being consumed by a 2
human being which contains alcohol in excess of the amount permitted by KRS 3
Chapter 242 obtained by distilling, mixed with water or other substances in 4
solution, except wine, hard cider, and malt beverages; 5
(27) "Distiller" means any person who is engaged in the business of manufacturing 6
distilled spirits at any distillery in the state and is registered in the Office of the 7
Collector of Internal Revenue for the United States at Louisville, Kentucky; 8
(28) "Distillery" means any place or premises where distilled spirits are manufactured 9
for sale, and which are registered in the office of any collector of internal revenue 10
for the United States. It includes any United States government bonded warehouse; 11
(29) "Distributor" means any person who distributes malt beverages for the purpose of 12
being sold at retail; 13
(30) "Dry" means a territory in which a majority of the electorate voted to prohibit all 14
forms of retail alcohol sales through a local option election held under KRS Chapter 15
242; 16
(31) "Election" means: 17
(a) An election held for the purpose of taking the sense of the people as to the 18
application or discontinuance of alcoholic beverage sales under KRS Chapter 19
242; or 20
(b) Any other election not pertaining to alcohol; 21
(32) "Horse racetrack" means a facility licensed to conduct a horse race meeting under 22
KRS Chapter 230; 23
(33) "Hotel" means a hotel, motel, or inn for accommodation of the traveling public, 24
designed primarily to serve transient patrons; 25
(34) "Investigator" means any employee or agent of the department who is regularly 26
employed and whose primary function is to travel from place to place for the 27 UNOFFICIAL COPY 23 RS BR 953
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purpose of visiting licensees, and any employee or agent of the department who is 1
assigned, temporarily or permanently, by the commissioner to duty outside the main 2
office of the department at Frankfort, in connection with the administration of 3
alcoholic beverage statutes; 4
(35) "License" means any license issued pursuant to KRS Chapters 241 to 244; 5
(36) "Licensee" means any person to whom a license has been issued, pursuant to KRS 6
Chapters 241 to 244; 7
(37) "Limited restaurant" means: 8
(a) A facility where the usual and customary business is the preparation and 9
serving of meals to consumers, which has a bona fide kitchen facility, which 10
receives at least seventy percent (70%) of its food and alcoholic beverage 11
receipts from the sale of food, which maintains a minimum seating capacity of 12
fifty (50) persons for dining, which has no open bar, which requires that 13
alcoholic beverages be sold in conjunction with the sale of a meal, and which 14
is located in a wet or moist territory under KRS 242.1244; or 15
(b) A facility where the usual and customary business is the preparation and 16
serving of meals to consumers, which has a bona fide kitchen facility, which 17
receives at least seventy percent (70%) of its food and alcoholic beverage 18
receipts from the sale of food, which maintains a minimum seating capacity of 19
one hundred (100) persons of dining, and which is located in a wet or moist 20
territory under KRS 242.1244; 21
(38) "Local administrator" means a city alcoholic beverage administrator, county 22
alcoholic beverage administrator, or urban-county alcoholic beverage control 23
administrator; 24
(39) "Malt beverage" means any fermented undistilled alcoholic beverage of any name 25
or description, manufactured from malt wholly or in part, or from any substitute for 26
malt, and includes weak cider; 27 UNOFFICIAL COPY 23 RS BR 953
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(40) "Manufacture" means distill, rectify, brew, bottle, and operate a winery; 1
(41) "Manufacturer" means a winery, distiller, rectifier, or brewer, and any other person 2
engaged in the production or bottling of alcoholic beverages; 3
(42) "Minor" means any person who is not twenty-one (21) years of age or older; 4
(43) "Moist" means a territory in which a majority of the electorate voted to permit 5
limited alcohol sales by any one (1) or a combination of special limited local option 6
elections authorized by KRS Chapter 242; 7
(44) "Population" means the population figures established by the federal decennial 8
census for a census year or the current yearly population estimates prepared by the 9
Kentucky State Data Center, Urban Studies Center of the University of Louisville, 10
Louisville, Kentucky, for all other years; 11
(45) "Premises" means the land and building in and upon which any business regulated 12
by alcoholic beverage statutes is operated or carried on. "Premises" shall not 13
include as a single unit two (2) or more separate businesses of one (1) owner on the 14
same lot or tract of land, in the same or in different buildings if physical and 15
permanent separation of the premises is maintained, excluding employee access by 16
keyed entry and emergency exits equipped with crash bars, and each has a separate 17
public entrance accessible directly from the sidewalk or parking lot. Any licensee 18
holding an alcoholic beverage license on July 15, 1998, shall not, by reason of this 19
subsection, be ineligible to continue to hold his or her license or obtain a renewal, 20
of the license; 21
(46) "Primary source of supply" or "supplier" means the distiller, winery, brewer, 22
producer, owner of the commodity at the time it becomes a marketable product, 23
bottler, or authorized agent of the brand owner. In the case of imported products, 24
the primary source of supply means either the foreign producer, owner, bottler, or 25
agent of the prime importer from, or the exclusive agent in, the United States of the 26
foreign distiller, producer, bottler, or owner; 27 UNOFFICIAL COPY 23 RS BR 953
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(47) "Private club" means a nonprofit social, fraternal, military, or political organization, 1
club, or nonprofit or for-profit entity maintaining or operating a club room, club 2
rooms, or premises from which the general public is excluded; 3
(48) "Private selection event" means a private event with a licensed distiller during 4
which participating consumers, retail licensees, wholesalers, distributors, or a 5
distillery's own representatives select a single barrel or a blend of barrels of the 6
distiller's products to be specially packaged for the participants; 7
(49) "Private selection package" means a bottle of distilled spirits sourced from the 8
barrel or barrels selected by participating consumers, retail licensees, wholesalers, 9
distributors, microbreweries that hold a quota retail drink or quota retail package 10
license, or a distillery's own representatives during a private selection event; 11
(50) "Public nuisance" means a condition that endangers safety or health, is offensive to 12
the senses, or obstructs the free use of property so as to interfere with the 13
comfortable enjoyment of life or property by a community or neighborhood or by 14
any considerable number of persons; 15
(51) "Qualified historic site" means: 16
(a) A contributing property with dining facilities for at least fifty (50) persons at 17
tables, booths, or bars where food may be served within a commercial district 18
listed in the National Register of Historic Places; 19
(b) A site that is listed as a National Historic Landmark or in the National 20
Register of Historic Places with dining facilities for at least fifty (50) persons 21
at tables, booths, or bars where food may be served; 22
(c) A distillery which is listed as a National Historic Landmark and which 23
conducts souvenir retail package sales under KRS 243.0305; or 24
(d) A not-for-profit or nonprofit facility listed on the National Register of Historic 25
Places; 26
(52) "Rectifier" means any person who rectifies, purifies, or refines distilled spirits, 27 UNOFFICIAL COPY 23 RS BR 953
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malt, or wine by any process other than as provided for on distillery premises, and 1
every person who, without rectifying, purifying, or refining distilled spirits by 2
mixing alcoholic beverages with any materials, manufactures any imitations of or 3
compounds liquors for sale under the name of whiskey, brandy, gin, rum, wine, 4
spirits, cordials, bitters, or any other name; 5
(53) "Repackaging" means the placing of alcoholic beverages in any retail container 6
irrespective of the material from which the container is made; 7
(54) "Restaurant" means a facility where the usual and customary business is the 8
preparation and serving of meals to consumers, that has a bona fide kitchen facility, 9
and that receives at least fifty percent (50%) of its food and alcoholic beverage 10
receipts from the sale of food at the premises; 11
(55) "Retail container" means any bottle, can, barrel, or other container which, without a 12
separable intermediate container, holds alcoholic beverages and is suitable and 13
destined for sale to a retail outlet, whether it is suitable for delivery or shipment to 14
the consumer or not; 15
(56) "Retail sale" means any sale of alcoholic beverages to a consumer, including those 16
transactions taking place in person, electronically, online, by mail, or by telephone; 17
(57) "Retailer" means any licensee who sells and delivers any alcoholic beverage to 18
consumers, except for manufacturers with limited retail sale privileges and direct 19
shipper licensees; 20
(58) "Riverboat" means any boat or vessel with a regular place of mooring in this state 21
that is licensed by the United States Coast Guard to carry one hundred (100) or 22
more passengers for hire on navigable waters in or adjacent to this state; 23
(59) "Sale" means any transfer, exchange, or barter for consideration, and includes all 24
sales made by any person, whether principal, proprietor, agent, servant, or 25
employee, of any alcoholic beverage; 26
(60) "Service bar" means a bar, counter, shelving, or similar structure used for storing or 27 UNOFFICIAL COPY 23 RS BR 953
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stocking supplies of alcoholic beverages that is a workstation where employees 1
prepare alcoholic beverage drinks to be delivered to customers away from the 2
service bar; 3
(61) "Sell" includes solicit or receive an order for, keep or expose for sale, keep with 4
intent to sell, and the delivery of any alcoholic beverage; 5
(62) "Small farm winery" means a winery whose wine production is not less than two 6
hundred fifty (250) gallons and not greater than five hundred thousand (500,000) 7
gallons in a calendar year; 8
(63) "Souvenir package" means a special package of distilled spirits available from a 9
licensed retailer that is: 10
(a) Available for retail sale at a licensed Kentucky distillery where the distilled 11
spirits were produced or bottled; or 12
(b) Available for retail sale at a licensed Kentucky distillery but produced or 13
bottled at another of that distiller's licensed distilleries in Kentucky; 14
(64) "State administrator" or "administrator" means the distilled spirits administrator or 15
the malt beverages administrator, or both, as the context requires; 16
(65) "State park" means a state park that has a: 17
(a) Nine (9) or eighteen (18) hole golf course; or 18
(b) Full-service lodge and dining room; 19
(66) "Supplemental bar" means a bar, counter, shelving, or similar structure used for 20
serving and selling distilled spirits or wine by the drink for consumption on the 21
licensed premises to guests and patrons from additional locations other than the 22
main bar; 23
(67) "Territory" means a county, city, district, or precinct; 24
(68) "Urban-county administrator" means an urban-county alcoholic beverage control 25
administrator; 26
(69) "Valid identification document" means an unexpired, government-issued form of 27 UNOFFICIAL COPY 23 RS BR 953
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identification that contains the photograph and date of birth of the individual to 1
whom it is issued; 2
(70) "Vehicle" means any device or animal used to carry, convey, transport, or otherwise 3
move alcoholic beverages or any products, equipment, or appurtenances used to 4
manufacture, bottle, or sell these beverages; 5
(71) "Vintage distilled spirit" means: 6
(a) A private selection package; or 7
(b) A package or packages of distilled spirits that: 8
1. Are in their original manufacturer's unopened container; 9
2. Are not owned by a distillery; and 10
3. Are not otherwise available for purchase from a licensed wholesaler 11
within the Commonwealth; 12
(72) (a) "Vintage distilled spirits seller" means a nonlicensed person at least twenty-13
one (21) years of age who is: 14
1. An administrator, executor, receiver, or other fiduciary who receives and 15
sells vintage distilled spirits in execution of the person's fiduciary 16
capacity; 17
2. A creditor who receives or takes possession of vintage distilled spirits as 18
security for, or in payment of, debt, in whole or in part; 19
3. A public officer or court official who levies on vintage distilled spirits 20
under order or process of any court or magistrate to sell the vintage 21
distilled spirits in satisfaction of the order or process; or 22
4. Any other person not engaged in the business of selling alcoholic 23
beverages. 24
(b) "Vintage distilled spirits seller" does not mean: 25
1. A person selling alcoholic beverages as part of an approved KRS 26
243.630 transfer; or 27 UNOFFICIAL COPY 23 RS BR 953
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2. A person selling alcoholic beverages as authorized by KRS 243.540; 1
(73) "Warehouse" means any place in which alcoholic beverages are housed or stored; 2
(74) "Weak cider" means any fermented fruit-based beverage containing more than one 3
percent (1%) but less than seven percent (7%) alcohol by volume; 4
(75) "Wet" means a territory in which a majority of the electorate voted to permit all 5
forms of retail alcohol sales by a local option election under KRS 242.050 or 6
242.125 on the following question: "Are you in favor of the sale of alcoholic 7
beverages in (name of territory)?"; 8
(76) "Wholesale sale" means a sale to any person for the purpose of resale; 9
(77) "Wholesaler" means any person who distributes alcoholic beverages for the purpose 10
of being sold at retail, but it shall not include a subsidiary of a manufacturer or 11
cooperative of a retail outlet; 12
(78) "Wine" means the product of the normal alcoholic fermentation of the juices of 13
fruits, with the usual processes of manufacture and normal additions, and includes 14
champagne and sparkling and fortified wine of an alcoholic content not to exceed 15
twenty-four percent (24%) by volume. It includes sake, cider, hard cider, and perry 16
cider and also includes preparations or mixtures vended in retail containers if these 17
preparations or mixtures contain not more than fifteen percent (15%) of alcohol by 18
volume. It does not include weak cider; and 19
(79) "Winery" means any place or premises in which wine is manufactured from any 20
fruit, or brandies are distilled as a by-product of wine or other fruit, or cordials are 21
compounded, except a place or premises that manufactures wine for sacramental 22
purposes exclusively. 23
Section 53. KRS 241.015 is amended to read as follows: 24
There is created a Department of Alcoholic Beverage and Cannabis Control, which shall 25
constitute a statutory administrative department of the state government within the 26
meaning of KRS Chapter 12. The department consists of the commissioner of alcoholic 27 UNOFFICIAL COPY 23 RS BR 953
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beverage and cannabis control, [and ]the Alcoholic Beverage Control Board, the 1
Division of Medicinal Cannabis, and the Division of Alcohol and Cannabis 2
Enforcement. The commissioner shall head the department, shall be its executive officer, 3
and shall have charge of the administration of the department and perform all functions of 4
the department not specifically assigned to the board or division. The Governor shall 5
appoint as commissioner a person with administrative experience in the field of alcoholic 6
beverage or cannabis control. 7
Section 54. KRS 241.030 is amended to read as follows: 8
The Alcoholic Beverage Control Board shall consist of the commissioner[ of alcoholic 9
beverage control] and two (2) persons appointed by the secretary of the Public Protection 10
Cabinet with the approval of the Governor, who shall be persons with administrative 11
experience in the field of alcoholic beverage or cannabis control. One (1) of these 12
persons shall serve as administrator of the Division of Distilled Spirits, and the other shall 13
serve as administrator of the Division of Malt Beverages. The commissioner shall be 14
chairman of the board. 15
Section 55. KRS 243.025 is amended to read as follows: 16
(1) All of the fees paid into the State Treasury for state licenses shall be credited to a 17
revolving trust and agency account, as provided in KRS 45.253, for the Department 18
of Alcoholic Beverage and Cannabis Control. 19
(2) All fees associated with the department's server training program shall be collected 20
on a cost recovery basis and shall be credited to the revolving trust and agency 21
account established under subsection (1) of this section. 22
(3) These moneys shall be used solely for the administration and enforcement of KRS 23
Chapters 241 to 244. The moneys in the account shall not lapse at the close of the 24
fiscal year. 25
Section 56. KRS 243.0307 is amended to read as follows: 26
(1) A sampling license may be issued to the holder of: 27 UNOFFICIAL COPY 23 RS BR 953
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(a) A quota retail drink license; 1
(b) A quota retail package license; 2
(c) A nonquota retail malt beverage package license; 3
(d) An NQ1 license; 4
(e) An NQ2 license; 5
(f) An NQ4 retail malt beverage drink license; or 6
(g) A distiller's license. 7
(2) A sampling license shall authorize the licensee to allow customers to sample, free 8
of charge, distilled spirits, wine, and malt beverages under the following conditions: 9
(a) Sampling shall be permitted only on licensed premises and by licensees 10
holding a sampling license, during regular business hours; 11
(b) A distillery shall provide samples as authorized by KRS 243.0305; 12
(c) All other licensees shall limit a customer to: 13
1. One (1) ounce of distilled spirits samples per day; 14
2. Six (6) ounces of wine samples per day; or 15
3. Twelve (12) ounces of malt beverage samples per day; and 16
(d) A brewer, microbrewery, or out-of-state malt beverage supplier may conduct 17
a sampling of malt beverages as permitted by this section at the licensed 18
premises of a retailer licensee holding a sampling license. 19
(3) Retailers holding a sampling license shall: 20
(a) Notify the Department of Alcoholic Beverage and Cannabis Control at least 21
seven (7) days in advance of conducting a free sampling event; and 22
(b) Limit a sampling event to a period not to exceed four (4) consecutive hours 23
between 12 noon and 8 p.m. 24
(4) In addition to free sampling, a quota retail package licensee holding a sampling 25
license may also sell sample distilled spirits and wine under the following 26
conditions: 27 UNOFFICIAL COPY 23 RS BR 953
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(a) Paid samples may be sold only on licensed premises and by licensees holding 1
a sampling license, during regular business hours; and 2
(b) A licensee shall limit a customer to purchased samples totaling no more than: 3
1. Two (2) ounces of distilled spirits per day; and 4
2. Nine (9) ounces of wine per day. 5
(5) A quota retail package licensee holding both a sampling license and a nonquota 6
retail malt beverage package license may also sell samples of malt beverages under 7
the following conditions: 8
(a) Paid samples may be sold only on licensed premises and by licensees holding 9
a sampling license, during regular business hours; 10
(b) A licensee shall limit a customer to no more than sixteen (16) ounces of malt 11
beverages per day; and 12
(c) The retail price of a sample shall not be less than a licensee's purchase cost of 13
the sample. 14
(6) No customer shall be allowed to receive a combination of free and purchased 15
samples totaling more than: 16
(a) Two (2) ounces of distilled spirits per day; and 17
(b) Nine (9) ounces of wine per day. 18
(7) Free and paid samples provided under this section shall not constitute drink sales. 19
Section 57. KRS 243.038 is amended to read as follows: 20
(1) The Department of Alcoholic Beverage and Cannabis Control shall not issue a 21
license to an applicant authorized to apply for a license to sell alcoholic beverages 22
by the drink under KRS 243.039 unless the applicant and the golf course, if 23
different from the applicant, agree to voluntarily comply with the provisions of 24
KRS Chapter 344, whether or not the applicant and the golf course would otherwise 25
be covered by the provisions of KRS Chapter 344. 26
(2) The department shall revoke or suspend any license issued under KRS 243.039 if 27 UNOFFICIAL COPY 23 RS BR 953
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the department or the Kentucky Commission on Human Rights makes a finding that 1
the applicant or the golf course, if different from the applicant, has violated a 2
requirement specified in this section. 3
Section 58. KRS 243.090 is amended to read as follows: 4
(1) All licenses issued by the department, except special event licenses, temporary 5
licenses, or licenses listed in subsection (5) of this section, shall be valid for a 6
period of no more than a year. The board shall promulgate administrative 7
regulations establishing the year-round system for renewal of licenses. The system 8
shall be designed to distribute the workload as uniformly as possible within the 9
offices of the local administrators and the Department of Alcoholic Beverage and 10
Cannabis Control. 11
(2) (a) Except for licenses listed in paragraph (b) of this subsection, all licenses 12
issued after January 1, 2017, by a local administrator shall be valid for a 13
period of no more than a year and shall be renewable upon the date 14
established by the department for the expiration of state licenses issued for 15
premises located in that county or city. During the first year following July 16
15, 2016, if the new date for renewal for the licensee does not occur on the 17
date established by the department for the expiration of the licensee's state 18
license, the local administrator shall either: 19
1. Prorate the cost of the renewed license by proportionally reducing the 20
cost of the renewed license if the new date for the renewal occurs prior 21
to the expiration of a previous license; or 22
2. Provide a prorated provisional local license to cover any period of time 23
between the expiration of the previous license and the new date for 24
renewal if the new date for renewal occurs after the expiration of the 25
licensee's previous license. 26
(b) Paragraph (a) of this subsection shall not apply to licenses issued by a 27 UNOFFICIAL COPY 23 RS BR 953
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consolidated local government, special event licenses, temporary licenses, or 1
licenses listed in subsection (5) of this section. 2
(3) When any person applies for a new license authorized under KRS Chapters 241 to 3
244, the person shall be charged, if the license is issued, the full fee for the 4
respective license if six (6) months or more remain before the license is due to be 5
renewed and one-half (1/2) the fee if less than six (6) months remain before the 6
license is due to be renewed. No abatement of license fees shall be permitted to any 7
person who held a license of the same kind for the same premises in the preceding 8
license period and who was actually doing business under the license during the last 9
month of the preceding license period. 10
(4) The renewal by the department of any alcoholic beverage license shall not be 11
construed to waive or condone any violation that occurred prior to the renewal and 12
shall not prevent subsequent proceedings against the licensee. 13
(5) All alcoholic beverage producers, wholesalers, or distributors may obtain or renew 14
their licenses for either a one (1) year term or a two (2) year term. 15
(6) The department may deny license renewal if the licensee is a delinquent taxpayer as 16
defined in KRS 131.1815. 17
Section 59. KRS 243.360 is amended to read as follows: 18
(1) All persons shall, before applying for a license, advertise by publication their 19
intention to apply for a license in the newspaper for legal notices under KRS 20
424.120 for the county or city whose local administrator has local jurisdiction over 21
the proposed premises. This requirement shall not apply to an applicant for the 22
same license for the same premises, or an applicant for any of the following 23
licenses: 24
(a) Out-of-state malt beverage supplier's license; 25
(b) Limited out-of-state malt beverage supplier's license; 26
(c) Out-of-state distilled spirits and wine supplier's license; 27 UNOFFICIAL COPY 23 RS BR 953
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(d) Limited out-of-state distilled spirits and wine supplier's license; 1
(e) Supplemental bar license; 2
(f) Extended hours supplemental license; 3
(g) Special agent or solicitor's license; 4
(h) Special nonbeverage alcohol license; 5
(i) Transporter's license; 6
(j) Special Sunday drink license; 7
(k) Hotel in-room license; 8
(l) Sampling license; 9
(m) Direct shipper license; or 10
(n) Special temporary drink license. 11
(2) The notice shall contain the following information: 12
(a) The notice shall state: the name and address of the applicant and the name and 13
address of each principal owner, partner, member, officer, and director if the 14
applicant is a partnership, limited partnership, limited liability company, 15
corporation, governmental agency, or other business entity recognized by law; 16
(b) The notice shall specifically state the location of the premises for which the 17
license is sought, the type of business, and the type of license being requested; 18
and 19
(c) The notice shall state the date the application will be filed and shall contain 20
the following statement: "Any person may protest the approval of the license 21
by writing the Department of Alcoholic Beverage and Cannabis Control 22
within thirty (30) days of the date of legal publication." 23
(3) Any protest received after the thirty (30) day period has expired shall not be 24
considered a valid legal protest by the board. 25
(4) Substantial compliance with the information listed in subsection (2) of this section 26
shall be sufficient to comply with this section. 27 UNOFFICIAL COPY 23 RS BR 953
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Section 60. KRS 438.310 is amended to read as follows: 1
(1) No person shall sell or cause to be sold any tobacco product, alternative nicotine 2
product, or vapor product at retail to any person under the age of twenty-one (21), 3
or solicit any person under the age of twenty-one (21) to purchase any tobacco 4
product, alternative nicotine product, or vapor product at retail. 5
(2) Any person who sells tobacco products, alternative nicotine products, or vapor 6
products at retail shall cause to be posted in a conspicuous place in his or her 7
establishment a notice stating that it is illegal to sell tobacco products, alternative 8
nicotine products, or vapor products to persons under age twenty-one (21). 9
(3) Any person selling tobacco products, alternative nicotine products, or vapor 10
products shall require proof of age from a prospective buyer or recipient if the 11
person has reason to believe that the prospective buyer or recipient is under the age 12
of twenty-one (21). 13
(4) A person who violates subsection (1) or (2) of this section shall be subject to a fine 14
of not less than one hundred dollars ($100) nor more than five hundred dollars 15
($500) for a first violation and a fine of not less than five hundred dollars ($500) 16
nor more than one thousand dollars ($1,000) for any subsequent violation. The fine 17
shall be administered by the Department of Alcoholic Beverage and Cannabis 18
Control using a civil enforcement procedure. 19
Section 61. KRS 438.311 is amended to read as follows: 20
(1) Except for the provisions of KRS 438.330, it shall be unlawful for a person who has 21
not attained the age of twenty-one (21) years to purchase or accept receipt of or to 22
attempt to purchase or accept receipt of a tobacco product, alternative nicotine 23
product, or vapor product, or to present or offer to any person any purported proof 24
of age which is false, fraudulent, or not actually his or her own, for the purpose of 25
purchasing or receiving any tobacco product, alternative nicotine product, or vapor 26
product. It shall not be unlawful for such a person to accept receipt of a tobacco 27 UNOFFICIAL COPY 23 RS BR 953
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product, alternative nicotine product, or vapor product from an employer when 1
required in the performance of the person's duties. 2
(2) All peace officers with general law enforcement authority and employees of the 3
Department of Alcoholic Beverage and Cannabis Control may confiscate the 4
tobacco product, alternative nicotine product, or vapor product of a person under 5
the age of twenty-one (21) who has violated this section. Notwithstanding any 6
provision of law to the contrary, no other penalty shall apply to a person under the 7
age of twenty-one (21) for a violation of this section. 8
Section 62. KRS 438.313 is amended to read as follows: 9
(1) No wholesaler, retailer, or manufacturer of cigarettes, tobacco products, alternative 10
nicotine products, or vapor products may distribute cigarettes, tobacco products, 11
alternative nicotine products, or vapor products, including samples thereof, free of 12
charge or otherwise, to any person under the age of twenty-one (21). 13
(2) Any person who distributes cigarettes, tobacco products, alternative nicotine 14
products, or vapor products, including samples thereof, free of charge or otherwise 15
shall require proof of age from a prospective buyer or recipient if the person has 16
reason to believe that the prospective purchaser or recipient is under the age of 17
twenty-one (21). 18
(3) Any person who violates the provisions of this section shall be fined not less than 19
one thousand dollars ($1,000) nor more than two thousand five hundred dollars 20
($2,500) for each offense. The fine shall be administered by the Department of 21
Alcoholic Beverage and Cannabis Control using a civil enforcement procedure for 22
persons eighteen (18) years of age or older. 23
(4) All peace officers with general law enforcement authority and employees of the 24
Department of Alcoholic Beverage and Cannabis Control may issue a uniform 25
citation, but may not make an arrest, or take a child into custody, for a violation of 26
this section. 27 UNOFFICIAL COPY 23 RS BR 953
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Section 63. KRS 438.315 is amended to read as follows: 1
(1) The sale of tobacco products, alternative nicotine products, or vapor products 2
dispensed through a vending machine is prohibited to any person under the age of 3
twenty-one (21) years. 4
(2) The purchase of tobacco products, alternative nicotine products, or vapor products 5
dispensed through a vending machine is prohibited to any person under the age of 6
twenty-one (21) years. 7
(3) Except for vending machines located in factories or vending machines located in 8
bars or taverns to which minors are not permitted access, any vending machine 9
from which tobacco products, alternative nicotine products, or vapor products are 10
dispensed shall be located in the line of sight of the cashier for the retail 11
establishment. 12
(4) Any owner of a retail establishment violating this section shall be subject to a fine 13
of not less than one hundred dollars ($100) nor more than five hundred dollars 14
($500) for each violation. The fine shall be administered by the Department of 15
Alcoholic Beverage and Cannabis Control using a civil enforcement procedure for 16
persons eighteen (18) years of age or older. 17
(5) All peace officers with general law enforcement authority and employees of the 18
Department of Alcoholic Beverage and Cannabis Control may issue a uniform 19
citation, but may not make an arrest, or take a child into custody, for a violation of 20
this section. 21
Section 64. KRS 438.317 is amended to read as follows: 22
(1) No person shall sell or cause to be sold at retail cigarettes packaged in units of 23
fewer than twenty (20) cigarettes. 24
(2) No resident wholesaler, nonresident wholesaler, or subjobber shall make available 25
to a retail establishment cigarettes packaged for retail sale in units of less than 26
twenty (20) cigarettes. 27 UNOFFICIAL COPY 23 RS BR 953
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(3) Any person violating subsection (1) of this section shall be subject to a fine of not 1
less than one hundred dollars ($100) nor more than five hundred dollars ($500). 2
Any person violating subsection (2) of this section shall be fined not less than one 3
thousand dollars ($1,000) nor more than two thousand five hundred dollars 4
($2,500). These penalties shall be enforced by the Department of Alcoholic 5
Beverage and Cannabis Control through civil enforcement procedures. 6
Section 65. KRS 438.320 is amended to read as follows: 7
Each resident wholesaler, nonresident wholesaler, or subjobber making tobacco products 8
available to a retail establishment for sale or distribution shall report the name and 9
address of the owner of the retail establishment to the Department of Alcoholic Beverage 10
and Cannabis Control in a manner specified by administrative regulations promulgated 11
pursuant to KRS Chapter 13A. 12
Section 66. KRS 438.325 is amended to read as follows: 13
(1) Each owner of a retail establishment selling or distributing tobacco products, 14
alternative nicotine products, or vapor products shall notify each individual 15
employed in the retail establishment as a retail sales clerk that the sale of tobacco 16
products, alternative nicotine products, or vapor products to any person under the 17
age of twenty-one (21) years and the purchase of tobacco products, alternative 18
nicotine products, or vapor products by any person under the age of twenty-one (21) 19
years are prohibited. 20
(2) Each owner of a retail establishment selling or distributing tobacco products, 21
alternative nicotine products, or vapor products shall notify each individual 22
employed in the retail establishment as a retail sales clerk that proof of age is 23
required from a prospective buyer or recipient if the person has reason to believe 24
that the prospective purchaser or recipient is under the age of twenty-one (21). 25
(3) The notice to employees that is required in subsection (1) of this section shall be 26
provided before the person commences work as a retail sales clerk, or, in the case of 27 UNOFFICIAL COPY 23 RS BR 953
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a person employed as a retail sales clerk on March 26, 2020, within thirty (30) days 1
of that date. The employee shall signify receipt of the notice required by this section 2
by signing a form that states as follows: 3
"I understand that under the law of the Commonwealth of Kentucky it is illegal to 4
sell or distribute tobacco products, alternative nicotine products, or vapor products 5
to persons under the age of twenty-one (21) years and that it is illegal for persons 6
under the age of twenty-one (21) years to purchase tobacco products, alternative 7
nicotine products, or vapor products." 8
(4) The owner of the retail establishment shall maintain the signed notice that is 9
required pursuant to subsection (3) of this section in a place and in a manner so as 10
to be easily accessible to any employee of the Department of Alcoholic Beverage 11
and Cannabis Control or the Department of Agriculture conducting an inspection 12
of the retail establishment for the purpose of monitoring compliance in limiting the 13
sale or distribution of tobacco products, alternative nicotine products, or vapor 14
products to persons under the age of twenty-one (21) as provided in KRS 438.305 15
to 438.340. 16
(5) Any owner of the retail establishment violating subsections (1) to (4) of this section 17
shall be subject to a fine of not less than one hundred dollars ($100) nor more than 18
five hundred dollars ($500) for each violation. The fine shall be administered by the 19
Department of Alcoholic Beverage and Cannabis Control in a civil enforcement 20
procedure. 21
Section 67. KRS 438.330 is amended to read as follows: 22
(1) The Department of Alcoholic Beverage and Cannabis Control and the Department 23
of Agriculture shall carry out annually conducted random, unannounced inspections 24
of retail establishments where tobacco products, alternative nicotine products, or 25
vapor products are sold or distributed for the purpose of enforcing the provisions of 26
KRS 438.305 to 438.340. The inspections shall be conducted to the extent 27 UNOFFICIAL COPY 23 RS BR 953
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necessary to assure that the Commonwealth remains in compliance with Public Law 1
102-321 and applicable federal regulations. The Department of Alcoholic Beverage 2
and Cannabis Control and the Department of Agriculture shall also ensure that 3
targeted inspections are conducted at those retail establishments where, and at those 4
times when, persons under the age of twenty-one (21) years are most likely to 5
purchase tobacco products, alternative nicotine products, or vapor products. Persons 6
under the age of twenty-one (21) years may be used to test compliance with the 7
provisions of KRS 438.305 to 438.340 only if the testing is conducted under the 8
direct supervision of the Department of Alcoholic Beverage and Cannabis Control, 9
sheriff, or chief of police, or their employees, and written parental consent has been 10
obtained. The Department of Alcoholic Beverage and Cannabis Control shall 11
prepare annually, for submission by the Governor to the Secretary of the United 12
States Department of Health and Human Services, the report required by Section 13
1926 of Subpart 1 of Part B of Title XIX of the Federal Public Health Service Act. 14
(2) The Department of Alcoholic Beverage and Cannabis Control shall develop and 15
implement the survey sampling methodologies to carry out the inspections as 16
described in this section. 17
Section 68. KRS 438.337 is amended to read as follows: 18
(1) The Department of Alcoholic Beverage and Cannabis Control shall carry out the 19
enforcement provisions of KRS 438.305 to 438.340. 20
(2) The Department of Alcoholic Beverage and Cannabis Control shall be entitled to 21
the revenue produced by one-twentieth of one cent ($0.0005) of the three-cent 22
($0.03) per pack revenue collected by the Finance and Administration Cabinet from 23
the state excise tax on the sale of cigarettes as imposed by KRS 138.140 to be 24
deposited in a trust and agency account created in the State Treasury, and to keep 25
fifty percent (50%) of any fines collected under KRS 438.305 to 438.340 to offset 26
the costs of enforcement of KRS 438.305 to 438.340. 27 UNOFFICIAL COPY 23 RS BR 953
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(3) The Department of Alcoholic Beverage and Cannabis Control shall be responsible 1
for maintaining statistics for compilation of required reports to be submitted to the 2
United States Department of Health and Human Services. 3
(4) The Department of Alcoholic Beverage and Cannabis Control shall devise a plan 4
and time frame for enforcement to determine by random inspection if the 5
percentage of retailers or distributors making illegal sales to persons under the age 6
of twenty-one (21) does or does not exceed federal guidelines preventing tobacco 7
sales to persons under the age of twenty-one (21). 8
Section 69. KRS 438.340 is amended to read as follows: 9
The Department of Alcoholic Beverage and Cannabis Control and the Department of 10
Agriculture are authorized to promulgate administrative regulations pursuant to KRS 11
Chapter 13A as necessary to implement and carry out the provisions of KRS 438.305 to 12
438.340. 13
Section 70. KRS 241.020 is amended to read as follows: 14
(1) The department shall administer statutes relating to, and regulate traffic in, 15
alcoholic beverages, except that the collection of taxes shall be administered by the 16
Department of Revenue. The department is charged with the implementation, 17
operation, oversight, and regulation of the medicinal cannabis program 18
established in Sections 1 to 30 of this Act. The department may issue advisory 19
opinions and declaratory rulings related to KRS Chapters 241 to 244 and the 20
administrative regulations promulgated under those chapters. 21
(2) A Division of Distilled Spirits, under the supervision of the board, shall administer 22
the laws in relation to traffic in distilled spirits and wine. 23
(3) A Division of Malt Beverages, under the supervision of the board, shall administer 24
the laws in relation to traffic in malt beverages. 25
(4) A Division of Medicinal Cannabis shall consist of a director and the necessary 26
staff to fill its statewide regulatory responsibilities under Sections 1 to 30 of this 27 UNOFFICIAL COPY 23 RS BR 953
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Act. 1
(5) A Division of Alcohol and Cannabis Enforcement shall be headed by a director, 2
who shall be responsible for the detection, investigation, and enforcement of 3
infractions of administrative regulations and laws associated with Sections 1 to 4
30 of this Act. 5
Section 71. There is hereby appropriated to the Department of Alcoholic 6
Beverage and Cannabis Control Restricted Funds in the amount of $1,500,000 in fiscal 7
year 2022-2023 for the creation of the Division of Medicinal Cannabis and the Division 8
of Alcoholic Beverage and Cannabis Enforcement and for the initial development and 9
operation of the state's medicinal cannabis program. 10
Section 72. Section 2, Sections 4 to 8, Section 11, Sections 13 to 15, Sections 11
18 to 25, Section 30, and Sections 33 to 40 of this Act take effect July 1, 2024. 12