Kentucky 2023 2023 Regular Session

Kentucky House Bill HB22 Introduced / Bill

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AN ACT relating to the regulation of cannabis and making an appropriation 1 
therefor. 2 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3 
SECTION 1. KRS CHAPTER 245 IS ESTABLISHED AND A NEW 4 
SECTION THEREOF IS CREATED TO READ AS FOLLOWS: 5 
As used in this chapter, unless the context requires otherwise: 6 
(1) "Authorized practitioner" means a physician or an advanced practice registered 7 
nurse who may prescribe controlled substances under KRS 314.042 who is 8 
authorized by a state licensing board to provide written certifications pursuant to 9 
this chapter; 10 
(2) "Board" means the Cannabis Control Board created in Section 3 of this Act; 11 
(3) "Bona fide practitioner-patient relationship" means a treating or consulting 12 
relationship, during the course of which the authorized practitioner has: 13 
(a) Completed an initial in-person examination and assessment of the patient's 14 
medical history and current medical condition; 15 
(b) Consulted with the patient with respect to the possible therapeutic and 16 
palliative properties of medical cannabis; 17 
(c) Advised the patient of the possible risks and side effects associated with the 18 
use of medical cannabis, including possible interactions between medical 19 
cannabis and any other drug or medication that the patient is taking at that 20 
time; and 21 
(d) Established an expectation that the authorized practitioner will provide 22 
follow-up care and treatment to the patient; 23 
(4) "Cannabis" has the same meaning as "marijuana" in KRS 218A.010; 24 
(5) "Cannabis accessory" means any item used for ingestion, inhalation, or storage 25 
of cannabis; 26 
(6) "Cannabis product" means cannabis, concentrated cannabis, and any cannabis-27  UNOFFICIAL COPY  	23 RS BR 238 
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infused product that may contain other ingredients and is intended for use or 1 
consumption; 2 
(7) "Cardholder" means: 3 
(a) A registered qualified patient, designated caregiver, or visiting qualified 4 
patient who has applied for, obtained, and possesses a valid registry 5 
identification card issued by the department as required by this chapter; or 6 
(b) A visiting qualified patient who has obtained and possesses a valid registry 7 
identification card, or its equivalent, that was issued pursuant to the laws of 8 
another state, district, territory, commonwealth, or insular possession of the 9 
United States that allows the person to use cannabis for medical purposes in 10 
the jurisdiction of issuance; 11 
(8) "Certified medical use" means the acquisition, administration, possession, 12 
transfer, transportation, or consumption of medical cannabis or medical 13 
cannabis accessories by a cardholder in accordance with Sections 1 to 14 of this 14 
Act; 15 
(9) "Condition" means a medical condition for which an authorized practitioner 16 
believes that a cardholder patient may receive therapeutic or palliative benefit 17 
from the use of medical cannabis, as certified by the authorized practitioner in 18 
writing; 19 
(10) "Council" means the Social Impact Council established in Section 16 of this Act; 20 
(11) "Department" means the Department of Cannabis Control established in Section 21 
6 of this Act;  22 
(12) "Designated caregiver" means a person who has registered with the department 23 
as providing care to a qualified patient;  24 
(13) "License" means any license issued under this chapter;  25 
(14) "Licensee" means any holder of a license issued by the department under this 26 
chapter; 27  UNOFFICIAL COPY  	23 RS BR 238 
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(15) "Medical cannabis" means cannabis intended for a certified medical use; 1 
(16) "Premises" means the land, buildings, and vehicles in which any business 2 
regulated by this chapter is operated or performed; 3 
(17) "Qualified patient" means a person who has obtained a written certification from 4 
an authorized practitioner with whom the patient has a bona fide practitioner-5 
patient relationship; 6 
(18) "Registry identification card" means a document issued by the department that 7 
identifies a person as a qualified patient, visiting qualified patient, or designated 8 
caregiver; and 9 
(19) "THC" means Delta-9 tetrahydrocannabinol, Delta-8 tetrahydrocannabinol, 10 
Delta-10 tetrahydrocannabinol, and the optical isomer of these substances. 11 
SECTION 2.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 12 
READ AS FOLLOWS: 13 
The Kentucky General Assembly finds and declares that it is in the best interest of the 14 
Commonwealth to legalize and regulate the possession, cultivation, production, 15 
processing, packaging, transportation, testing, marketing, sale, and use of medical 16 
cannabis and adult-use cannabis.   17 
SECTION 3.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 18 
READ AS FOLLOWS: 19 
(1) The Cannabis Control Board is created as an independent agency of state 20 
government within the Public Protection Cabinet. The board is responsible for 21 
the oversight and regulation of the possession, cultivation, production, 22 
processing, packaging, transporting, marketing, testing, sale, and use of cannabis 23 
products and shall contain the following advisory committees: 24 
(a) The Medical Cannabis Usage Advisory Committee; 25 
(b) The Adult Cannabis Usage Advisory Committee; 26 
(c) The Cannabis Cultivation Advisory Committee; and 27  UNOFFICIAL COPY  	23 RS BR 238 
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(d) The Social and Economic Equity Advisory Committee. 1 
(2) The Cannabis Control Board shall be attached to the Public Protection Cabinet 2 
for administrative purposes and shall be served administratively by the 3 
Department of Cannabis Control, established within the Public Protection 4 
Cabinet in Section 6 of this Act. 5 
(3) The board shall consist of seven (7) voting members, with at least one (1) member 6 
representing each of the seven (7) Kentucky Supreme Court districts. All board 7 
members shall be appointed by the Governor, confirmed by the Senate, hold at a 8 
minimum a baccalaureate degree in business or a related field of study, and 9 
possess a minimum of seven (7) years of demonstrated experience or expertise in 10 
the direct management, supervision, or control of business or legal affairs. 11 
(4) (a) The members of the board shall be paid a salary fixed under KRS 64.640 12 
and shall receive the same benefits and reimbursement of expenses as other 13 
employees of the Commonwealth. 14 
(b) A majority of the board members shall elect a chairperson from among the 15 
board's membership for a one (1) year term. A member may serve multiple 16 
terms as chairperson for as long as that person remains eligible to serve as 17 
a member and is reelected by the members of the board. 18 
(5) All members of the board shall have been a resident of the Commonwealth for at 19 
least three (3) years prior to appointment to the board, and shall continue to be a 20 
full-time resident of the Commonwealth while serving on the board. 21 
(6) Members appointed to the board shall reflect the racial, ethnic, gender, and 22 
geographic diversity of the Commonwealth. The members shall be appointed in 23 
equal proportion from the two (2) political parties casting the highest and next 24 
highest number of votes at the last preceding general election in the state. 25 
(7) Members of the board shall be subject to a background check. 26 
(8) (a) Members shall be appointed to serve a term of three (3) years. 27  UNOFFICIAL COPY  	23 RS BR 238 
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(b) A member may not serve more than two (2) consecutive full terms on the 1 
board, but may be reappointed after not serving for at least one (1) full year 2 
following the completion of two (2) full terms. 3 
(c) Members shall continue to serve until their successors are appointed. 4 
(d) Vacancies shall be filled in the same manner as the original appointment, 5 
except that the Governor may temporarily appoint a new board member to 6 
fill a vacancy when the Senate is not in session, and shall appoint an 7 
existing board member to serve as chairperson if that position becomes 8 
vacant until the next meeting of the board where the board shall elect a 9 
chair. All temporary appointments shall be subject to confirmation by the 10 
Senate. If the Senate fails to take action on any temporary appointment, the 11 
appointment shall be deemed confirmed and the board member shall serve 12 
the remainder of the term for which the member was appointed. If the 13 
Senate votes not to confirm a temporary appointment, the Governor shall 14 
make a new appointment which shall be subject to confirmation by the 15 
Senate and subject to the same conditions established in this paragraph. 16 
(9) A member of the board may be removed by the Governor for cause, including the 17 
improper use of police powers, malfeasance, misfeasance, incompetence, 18 
misconduct, neglect of duty, absenteeism, conflict of interest, failure to carry out 19 
the policies of the Commonwealth as established in the Constitution of Kentucky 20 
or by the General Assembly, or refusal to carry out a lawful directive of the 21 
Governor. 22 
(10) In addition to the advisory committees described in Section 5 of this Act, the 23 
board may form other committees or advisory councils which may include 24 
representatives who are not members of the board to explore and study issues 25 
before the board. 26 
(11) A majority of the members of the board shall constitute a quorum for the purpose 27  UNOFFICIAL COPY  	23 RS BR 238 
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of conducting business and for taking action on any measure before the board. 1 
No vacancy in the membership shall impair the right of a quorum to exist or the 2 
board to exercise its authority. 3 
(12) No board member or employee, spouse, or minor child of a member shall: 4 
(a) Have any interest, direct or indirect, either proprietary or by means of any 5 
loan, mortgage, lien, or in any other manner, in or on any premises where a 6 
cannabis business establishment is located; 7 
(b) Own any stock in or have any interest, direct or indirect, in any cannabis 8 
business establishment; 9 
(c) Own any stock in any corporation which has any interest, proprietary or 10 
otherwise, direct or indirect, in any premises where a cannabis business 11 
entity is located; or 12 
(d) Receive any commission or profit whatsoever, direct or indirect, from any 13 
person applying for or receiving any license or permit authorized by this 14 
chapter. 15 
SECTION 4.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 16 
READ AS FOLLOWS: 17 
(1) The board shall have broad authority to establish the conditions under which 18 
cannabis, cannabis products, and cannabis accessories are possessed, cultivated, 19 
produced, processed, tested, packaged, transported, marketed, sold, and used in 20 
the Commonwealth, including but not limited to the following powers and duties 21 
related to this authority to: 22 
(a) Promulgate administrative regulations to implement Sections 1 to 14 of this 23 
Act; 24 
(b) Establish the number of licenses that may be issued within the following 25 
licensing categories:  26 
1. Cultivation; 27  UNOFFICIAL COPY  	23 RS BR 238 
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2. Processing and manufacturing; 1 
3. Testing; 2 
4. Retail sales; 3 
5. Special events; 4 
6. On-site consumption; 5 
7. Transportation; 6 
8. Microbusinesses; and 7 
9. Any other category deemed necessary by the board and as authorized 8 
under this chapter; 9 
(c) Establish jurisdictional, space, and other requirements relating to the 10 
issuance of licenses; 11 
(d) Establish limitations on the number of licenses that may be held by any 12 
person, except that no person shall hold more than two (2) different license 13 
types, and the board shall use its licensing authority to prevent monopolies 14 
and concentration of ownership among a few cannabis business entities, 15 
favoring instead a broad array of licensed cannabis business entities with 16 
different ownership; 17 
(e) Grant, suspend, and revoke licenses; 18 
(f) Establish the standards and requirements, including the types, forms, and 19 
concentration of products that may be processed and sold; 20 
(g) Limit or prohibit, in the event of a declared emergency, and without 21 
previous notice or advertisement, the processing, transportation, testing, or 22 
sale of any or all cannabis, cannabis products, and cannabis accessories 23 
during the period of the declared emergency; 24 
(h) Enforce this chapter; and 25 
(i) Hold hearings, subpoena witnesses, compel witness attendance, administer 26 
oaths, examine any person under oath, and require the production of books 27  UNOFFICIAL COPY  	23 RS BR 238 
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and records relative to an inquiry. 1 
(2) The board shall develop, maintain, and implement a uniform and integrated 2 
seed-to-sale tracking system that tracks cannabis from either the seed or 3 
immature plant stage until the cannabis or cannabis products are sold to a 4 
cannabis consumer or cardholder. 5 
(3) The board shall promulgate administrative regulations that: 6 
(a) Establish requirements for securely transporting cannabis and cannabis 7 
products between cannabis business establishments; 8 
(b) Establish sanitary standards for retail and medical cannabis product 9 
preparation; 10 
(c) Establish a testing program for cannabis and cannabis products;  11 
(d) Establish requirements for health and safety warning labels to be placed on 12 
cannabis and cannabis products to be sold or offered for sale to a 13 
consumer; 14 
(e) Establish a scale of application, licensing, and renewal fees, based upon the 15 
cost of enforcing this chapter and the size and category of the business 16 
being licensed, as follows: 17 
1. The board shall charge each person seeking a license an application 18 
fee, and shall establish initial licensing and renewal fees; 19 
2. Fees may vary depending upon the nature and scope of the activities 20 
licensed; 21 
3. The total application and licensing fees assessed under this chapter 22 
shall be set at an amount that will generate sufficient total revenue to, 23 
at a minimum, fully cover the total costs of administering this chapter; 24 
and 25 
4. All registration and licensure fees shall be set on a scaled basis by the 26 
board, and shall be established based on the size and capacity of the 27  UNOFFICIAL COPY  	23 RS BR 238 
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business. For social and economic equity applicants such fees may be 1 
assessed to accomplish the goals of this chapter;  2 
(f) Establish requirements for the form, content, and all records and accounts 3 
by licensees; 4 
(g) Establish reporting requirements; 5 
(h) In consultation with the Medical Cannabis Usage Advisory Committee 6 
established in Section 5 of this Act, set appropriate dosage, potency, 7 
concentration, packaging, THC content, and serving size limits and 8 
delineate requirements for medical cannabis and adult-use cannabis 9 
products, except that a standardized serving of edible cannabis product or 10 
beverage, other than a medical cannabis product, shall contain not more 11 
than twenty (20) milligrams of THC; 12 
(i) In consultation with the Medical Cannabis Usage Advisory Committee, 13 
establish medical parameters relating to the oversight and governance of 14 
medical cannabis; 15 
(j) Establish labeling and packaging requirements for cannabis sold by a 16 
cannabis business establishment that include but are not limited to: 17 
1. A universal symbol to indicate that cannabis or a cannabis product 18 
contains cannabis, and prescribe how the product and product 19 
packaging shall utilize and exhibit this symbol; 20 
2. A disclosure concerning the length of time it typically takes for the 21 
cannabis to affect an individual, including a statement that certain 22 
forms of cannabis take longer to have an effect; 23 
3. A notation of the amount of cannabis the product is considered the 24 
equivalent to; 25 
4. A list of ingredients and all additives; 26 
5. Child-resistant packaging, including requirements that an edible 27  UNOFFICIAL COPY  	23 RS BR 238 
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product be individually wrapped; 1 
6. A net weight statement; 2 
7. A recommended use-by or expiration date;  3 
8. Labeling that differentiates between medical cannabis products and 4 
adult-use cannabis products; and 5 
9. Standard and uniform packaging and labeling, including but not 6 
limited to requirements regarding branding or logos, and 7 
requirements that all packaging is opaque; 8 
(k) Restrict forms of cannabis, cannabis products, and cannabis product 9 
delivery systems to ensure consumer safety and deter public health 10 
concerns; 11 
(l) Establish reasonable time, place, and manner restrictions on outdoor 12 
advertising of retail cannabis and retail cannabis products consistent with 13 
this chapter; 14 
(m) Establish security and safety requirements and protocols for the places 15 
where cannabis, cannabis products, and cannabis accessories are possessed, 16 
cultivated, produced, tested, packaged, transported, marketed, and sold in 17 
the Commonwealth; 18 
(n) Establish policies and procedures for retail establishments that sell both 19 
adult-use and medical cannabis to separate the two (2) functions 20 
sufficiently so inventory and sales can be tracked separately, and so 21 
cannabis products designed for medical use are not available or sold to 22 
anyone who does not possess a registry identification card; 23 
(o) In consultation with the Cannabis Cultivation Advisory Committee 24 
established in Section 5 of this Act, establish conditions and requirements 25 
for cultivation of cannabis both inside and outside, including canopy 26 
limitations and appropriate distance requirements between facilities; 27  UNOFFICIAL COPY  	23 RS BR 238 
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(p) Establish the system to authorize and track authorized practitioners who 1 
establish bona fide practitioner-patient relationships with and prescribe 2 
medical cannabis to cardholders when allowed by the practitioner licensing 3 
boards; 4 
(q) Establish the process for: 5 
1. A qualified patient to become a cardholder; and 6 
2. The requirements, restrictions, and other details to allow a cardholder 7 
to acquire medical cannabis for a certified medical use through an 8 
authorized practitioner with whom the cardholder has a bona fide 9 
practitioner-patient relationship; and 10 
(r) Annually set the rate of the excise tax assessed under Section 19 of this Act. 11 
SECTION 5.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 12 
READ AS FOLLOWS: 13 
(1) The board shall appoint the members of and oversee the following four (4) 14 
primary advisory committees: 15 
(a) The Medical Cannabis Usage Advisory Committee; 16 
(b) The Adult Cannabis Usage Advisory Committee;  17 
(c) The Cannabis Cultivation Advisory Committee; and 18 
(d) The Social and Economic Equity Advisory Committee. 19 
(2) (a) The purpose of the Medical Cannabis Usage Advisory Committee shall be 20 
to: 21 
1. Advise the board regarding appropriate potency, dosage, packaging, 22 
THC content, and other medical parameters relating to the oversight 23 
and governance of adult-use and medical cannabis; 24 
2. Review relevant scientific data related to the various methods of use 25 
and consumption of medicinal cannabis and make recommendations 26 
to the board to approve or restrict certain methods; and 27  UNOFFICIAL COPY  	23 RS BR 238 
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3. Perform other duties related to medical cannabis as directed by the 1 
board. 2 
(b) The Medical Cannabis Usage Advisory Committee shall consist of a 3 
minimum of five (5) members as follows: 4 
1. One (1) physician; 5 
2. One (1) pharmacist; 6 
3. One (1) mental health expert; 7 
4. One (1) advanced practice registered nurse who can prescribe 8 
controlled substances under KRS 314.042; and 9 
5. One (1) qualified patient who is eligible to be a cardholder. 10 
(3) (a) The purpose of the Adult Cannabis Usage Advisory Committee shall be to: 11 
1. Review and recommend to the board protocols, evolving continuous 12 
quality improvement metrics, and minimal performance standards for 13 
the accreditation of licensed cannabis business establishments; 14 
2. Advise on efficient and effective practices and processes for cannabis 15 
business establishments; 16 
3. Develop strategies to minimize the sale and use of cannabis by persons 17 
and entities that are not licensed cannabis business establishments;  18 
4. Recommend methods to enhance safety, taxation, and the economic 19 
benefits of the sale and adult use of legal cannabis; and 20 
5. Perform other duties related to cannabis business establishments as 21 
directed by the board. 22 
(b) The Adult Cannabis Usage Advisory Committee shall consist of a minimum 23 
of five (5) members as follows: 24 
1. One (1) attorney licensed to practice law in Kentucky who has been 25 
practicing for at least ten (10) years; 26 
2. Two (2) Kentucky citizens with at least ten (10) years of experience in 27  UNOFFICIAL COPY  	23 RS BR 238 
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successfully running a business; 1 
3. One (1) representative from the Cabinet for Economic Development; 2 
and 3 
4. One (1) representative from the Justice and Public Safety Cabinet. 4 
(4) (a) The purpose of the Cultivation Advisory Committee shall be to: 5 
1. Advise the board on practices and processes for cultivating cannabis, 6 
including cultivation establishment locations, space between facilities, 7 
indoor and outdoor operations, canopy size restrictions; and 8 
2. Perform other duties related to cannabis cultivation business 9 
establishments as directed by the board. 10 
(b) The Cultivation Advisory Committee shall consist of a minimum of five (5) 11 
members as follows: 12 
1. The Commissioner of Agriculture or designee; 13 
2. A representative from the University of Kentucky College of 14 
Agriculture, Food and Environment; 15 
3. An attorney with farming or agricultural experience; 16 
4. A representative from Kentucky Farm Bureau; and 17 
5. A person engaged in farming. 18 
(5) (a) The purposes of the Social and Economic Equity Advisory Committee shall 19 
be to advise the board on the development of policies that recognize the 20 
following: 21 
1. The need to establish a legal cannabis industry that is equitable and 22 
accessible to those most adversely impacted by the enforcement of 23 
drug-related laws in the state, including cannabis-related laws; 24 
2. Individuals who have been arrested or incarcerated due to drug laws 25 
relating to cannabis suffer long-lasting negative consequences, 26 
including impacts to employment, business ownership, housing, 27  UNOFFICIAL COPY  	23 RS BR 238 
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health, and long-term financial well-being; 1 
3. Family members, especially children, and communities of those who 2 
have been arrested or incarcerated due to drug laws suffer from 3 
emotional, psychological, and financial harms as a result of these 4 
arrests or incarcerations; 5 
4. Certain communities have disproportionately suffered the harms of 6 
enforcement of cannabis-related laws. Those communities face 7 
greater difficulties accessing traditional banking systems and capital 8 
for establishing businesses; 9 
5. Individuals who have resided in areas of high poverty suffer negative 10 
consequences, including barriers to entry in employment, business 11 
ownership, housing, health, and long-term financial well-being; and 12 
6. Promotion of business ownership by individuals who have resided in 13 
areas of high poverty and high enforcement of cannabis-related laws 14 
furthers an equitable cannabis industry. 15 
(b) The Social and Economic Equity Advisory Committee shall consist of at 16 
least five (5) members as follows: 17 
1. An attorney representative practicing either indigent criminal defense 18 
or legal aid; 19 
2. A representative of an organization that focuses on the civil liberties of 20 
Kentuckians; 21 
3. A person who has lived in a Kentucky high poverty area for at least 22 
five (5) years; 23 
4. The spouse or adult child of a person who is incarcerated for a 24 
cannabis-related conviction; and 25 
5. A person who specializes in business opportunities for individuals 26 
living in high poverty areas. 27  UNOFFICIAL COPY  	23 RS BR 238 
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(6) (a) All advisory committee members shall receive reimbursement of their 1 
expenses incurred in relation to their duties on the advisory committee. 2 
(b) Advisory committee members shall not be limited to specific terms and shall 3 
serve at the pleasure of the board. 4 
(c) The board may appoint additional members to any of the advisory 5 
committees, and shall establish reporting requirements on at least an 6 
annual basis from all advisory committees. 7 
SECTION 6.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 8 
READ AS FOLLOWS: 9 
(1) There is established within the Public Protection Cabinet the Department of 10 
Cannabis Control. The department shall provide administrative support for the 11 
board, the advisory committees established in Section 5 of this Act, and any other 12 
advisory groups or committees formed by the board. The department shall be 13 
responsible for the day-to-day oversight and regulation of the cultivation, 14 
possession, production, processing, testing, packaging, transportation, marketing, 15 
sale, and use in the Commonwealth of cannabis, cannabis products, and 16 
cannabis accessories. In fulfilling these duties and responsibilities, the 17 
department may exercise the powers and duties authorized in this chapter, as 18 
directed by the board. 19 
(2) The department shall be headed by a commissioner appointed by the Governor 20 
and confirmed by the Senate. The commissioner shall serve for a term of three 21 
(3) years and may be reappointed. The commissioner shall have at least ten (10) 22 
years of demonstrated experience or expertise in the direct management, 23 
supervision, and operation of a business. Once confirmed, the commissioner may 24 
be removed only for good cause with appropriate notice. 25 
(3) Specific functions, powers, and duties of the department and the commissioner 26 
include but are not limited to: 27  UNOFFICIAL COPY  	23 RS BR 238 
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(a) Maintaining records of all licenses and permits issued and revoked within 1 
the state. These records shall be current and shall include the identity of all 2 
licensees, including the names of the officers and directors of corporate 3 
licensees and the location of all licensed premises; 4 
(b) Inspecting or providing for the inspection of any premises where medical 5 
cannabis or adult-use cannabis are cultivated, produced, tested, packaged, 6 
transported, or sold; 7 
(c) Prescribing forms of applications for licenses and permits under this 8 
chapter and of all reports deemed necessary by the board; 9 
(d) Delegating the powers granted in this section to other officers or employees 10 
as determined by the commissioner; 11 
(e) Exercising the powers and performing the duties as delegated by the board 12 
in relation to the administration of this chapter, including but not limited to 13 
budgetary and fiscal matters; 14 
(f) Entering into contracts, memoranda of understanding, and agreements to 15 
effectuate the policy and purpose of this chapter; 16 
(g) Advising and assisting the board in carrying out any of its functions, 17 
powers, and duties; 18 
(h) Coordinating across state agencies and departments in order to research 19 
and study any changes in cannabis use and the impact that cannabis use 20 
and the regulated cannabis industries may have on access to cannabis 21 
products, public health, and public safety; and 22 
(i) Issuing guidance and industry advisories. 23 
SECTION 7.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 24 
READ AS FOLLOWS: 25 
(1) No person shall cultivate, process, produce, test, transfer, transport, or sell 26 
cannabis or otherwise operate a cannabis business establishment in this state 27  UNOFFICIAL COPY  	23 RS BR 238 
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without first obtaining a license or permit under this chapter. 1 
(2) (a) A cultivator license shall authorize the licensee to: 2 
1. Cultivate and minimally process cannabis on its licensed premises;  3 
2. Transport or contract to transport cannabis to a testing facility for 4 
testing; 5 
3. Transport or contract to transport cannabis from the cultivator's 6 
licensed premises to another part of the same premises or to another 7 
of the cultivator's licensed premises; and 8 
4. Sell and transport or contract to have transported cannabis to a 9 
processor, retailer, or microbusiness. 10 
(b) Cultivators shall be licensed as either an indoor cultivator or an outdoor 11 
cultivator.  12 
(3) A processor license shall authorize the licensee to: 13 
(a) Purchase cannabis from a cultivator or microbusiness for processing; 14 
(b) Receive cannabis from a cultivator, microbusiness, transporter, testing 15 
facility, or another processor; 16 
(c) Process the cannabis received into consumable cannabis and cannabis 17 
products; 18 
(d) Sell the processed cannabis and cannabis products to a retailer licensee or a 19 
microbusiness licensee; and 20 
(e) Transport or contract to transport the processed cannabis and cannabis 21 
products: 22 
1. To the retailer licensee, microbusiness, or a testing facility; 23 
2. From a testing facility to a retailer or microbusiness; or  24 
3. Between buildings on its own premises. 25 
(4) A transporter license shall authorize the licensee to: 26 
(a) Receive cannabis and cannabis products from a cultivator or microbusiness 27  UNOFFICIAL COPY  	23 RS BR 238 
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and transport the cannabis to a processor or testing facility; 1 
(b) Receive cannabis and cannabis products from a testing facility and 2 
transport to a processor, microbusiness, or retailer; 3 
(c) Receive cannabis products from a processor or microbusiness and transport 4 
the cannabis or cannabis products to a testing facility or retailer; and 5 
(d) Transport between testing facilities, cultivators, or processors. 6 
(5) A retail license shall authorize the licensee to: 7 
(a) Purchase cannabis and cannabis products from a cultivator, processor, or 8 
microbusiness for sale in its place of business; 9 
(b) Receive purchased cannabis and cannabis products from a cultivator, 10 
processor, testing facility, or microbusiness; 11 
(c) Sell cannabis, cannabis products, and cannabis accessories at its store or at 12 
a cannabis event to consumers ages twenty-one (21) and older; 13 
(d) Purchase and receive cannabis accessories; and 14 
(e) Transport cannabis: 15 
1. From a cultivator, processor, or microbusiness to a testing facility; 16 
2. From a testing facility to a retailer; 17 
3. Between retail locations; or 18 
4. To medical cannabis consumers or to a cannabis event. 19 
(6) A testing facility license shall authorize the licensee to obtain and test samples of 20 
cannabis from cultivators and samples of cannabis and cannabis products from 21 
processors in order to determine the amount of THC in the product. 22 
(7) A microbusiness license shall authorize the licensee to perform at least three (3) 23 
of the four (4) following activities: 24 
(a) Cultivation of up to one hundred fifty (150) plants; 25 
(b) Manufacturing processes to include nonvolatile extraction, infusion, 26 
packaging, and labeling; 27  UNOFFICIAL COPY  	23 RS BR 238 
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(c) Transportation or entering a contract for transportation; and 1 
(d) Retail sales. 2 
(8) A cannabis consumption establishment license shall authorize the licensee to 3 
allow patrons to bring their own cannabis, cannabis products, and cannabis 4 
accessories on premises for consumption. 5 
(9) A cannabis event organizer license shall authorize the licensee to host temporary 6 
events related to cannabis, including but not limited to concerts, conferences, 7 
fairs, festivals, and competitions. Each event hosted by a licensed cannabis event 8 
organizer shall require a separate cannabis temporary event license. 9 
(10) A cannabis temporary event license shall authorize the cannabis event organizer 10 
to host events related to cannabis, subject to the following restrictions: 11 
(a) The location shall be designated on the application form to the department; 12 
and 13 
(b) The event shall comply with the requirements of any smoking ban that may 14 
be enacted by a local government. 15 
SECTION 8.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 16 
READ AS FOLLOWS: 17 
(1) If, after a license or permit has been issued, there is a change in any of the 18 
required facts in the application, a verified supplemental statement in writing 19 
giving notice of the change shall be filed with the department within ten (10) days 20 
after the change. 21 
(2) In giving any notice or taking any action in reference to a license or permit, the 22 
department may rely upon the information furnished in the application or in the 23 
supplemental statement connected with the application. This information, as 24 
against the licensee, permittee, or applicant, shall be conclusively presumed to be 25 
correct. The required information stated in the application or supplemental 26 
statement shall be deemed material in any prosecution for perjury. 27  UNOFFICIAL COPY  	23 RS BR 238 
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SECTION 9.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 1 
READ AS FOLLOWS: 2 
(1) All cannabis licenses and permits issued by the department shall be valid for a 3 
period of no more than one (1) year. The board shall promulgate administrative 4 
regulations establishing the system for renewal of licenses. 5 
(2) The renewal of any cannabis license or permit shall not be construed to waive or 6 
condone any violation that occurred prior to the renewal and shall not prevent 7 
subsequent proceedings against the licensee or permittee. 8 
(3) The department may deny a license renewal if the licensee is a delinquent 9 
taxpayer as defined in Section 33 of this Act. 10 
SECTION 10.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 11 
READ AS FOLLOWS: 12 
(1) If the department denies a license or permit application, the commissioner shall 13 
notify the applicant in writing of the denial and the reasons for the denial by 14 
registered or certified mail at the address given in the application. 15 
(2) The applicant may, within thirty (30) days after the date of the mailing of the 16 
notice from the commissioner, file a request with the board for an administrative 17 
hearing on the application. The hearing shall be conducted by the board as a de 18 
novo review of the application in compliance with KRS Chapter 13B. 19 
(3) If the commissioner denies an application and the applicant does not timely 20 
request a board hearing on its application under subsection (2) of this section, the 21 
department shall refund payment of any license or permit fee paid by an 22 
applicant. 23 
SECTION 11.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 24 
READ AS FOLLOWS: 25 
(1) Upon proceedings for the revocation of any license or permit under this chapter, 26 
the board may order a suspension of the license or permit. Subject to the approval 27  UNOFFICIAL COPY  	23 RS BR 238 
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of the board, the licensee or permittee may pay in lieu of part or all of the days of 1 
any suspension period, a sum established in an administrative regulation 2 
promulgated by the board. 3 
(2) Payments in lieu of suspension collected by the board shall be deposited into the 4 
cannabis fund account established in Section 15 of this Act. 5 
(3) Appeals from orders of suspension and the associated procedures shall be the 6 
same as are provided for orders of revocation in KRS Chapter 13B. 7 
SECTION 12.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 8 
READ AS FOLLOWS: 9 
No employer shall refuse to employ and may not discriminate against an individual 10 
with respect to compensation, promotion, or the terms, conditions, or privileges of 11 
employment because the individual legally uses a cannabis product off the employer’s 12 
premises during nonworking hours. This section shall not apply to the use of cannabis 13 
products: 14 
(1) During working hours; or 15 
(2) That affects an individual’s ability to perform job-related employment 16 
responsibilities or compromises the safety of other employees. 17 
SECTION 13.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 18 
READ AS FOLLOWS: 19 
(1) Cannabis, cannabis products, and cannabis accessories shall only be purchased, 20 
possessed, consumed, or used by persons aged twenty-one (21) years or older, and 21 
a retail licensee shall only sell to persons aged twenty-one (21) or older. 22 
(2) A licensee under this chapter shall not sell, give, or provide cannabis to a person 23 
under the age of twenty-one (21). 24 
(3) A person under twenty-one (21) years of age shall not enter any premises licensed 25 
for the sale of cannabis, cannabis products, or cannabis accessories for the 26 
purpose of purchasing or receiving any cannabis, cannabis product, or cannabis 27  UNOFFICIAL COPY  	23 RS BR 238 
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accessory. 1 
(4) A person under twenty-one (21) years of age shall not misrepresent the person's 2 
age for the purpose of inducing any licensee, or the licensee's agent or employee, 3 
to sell any cannabis, cannabis products, or cannabis accessories to the underage 4 
person. 5 
(5) A person under twenty-one (21) years of age shall not use or attempt to use any 6 
false, fraudulent, or altered identification card, paper, or any other document to 7 
purchase or attempt to purchase or otherwise obtain any cannabis, cannabis 8 
products, or cannabis accessories. A person who violates this section shall for the 9 
first offense be guilty of a violation and, for the second and each subsequent 10 
offense, be guilty of a Class B misdemeanor. 11 
(6) Except as provided in subsection (7) of this section, any person who violates 12 
subsections (3), (4), or (5) of this section shall be charged with a violation and 13 
each violation shall constitute a separate offense. 14 
(7) A violation of subsections (3), (4), or (5) of this section shall be deemed a status 15 
offense if committed by a person under the age of eighteen (18) and shall be 16 
under the jurisdiction of the juvenile session of the District Court or the family 17 
division of the Circuit Court, as appropriate. 18 
(8) This section shall not apply to a caregiver aged twenty-one (21) or older who 19 
purchases or receives medical cannabis for a patient who is under twenty-one 20 
(21) years of age if the underage patient is a qualified patient with a registry 21 
identification card. 22 
(9) It shall be an affirmative defense to a charge under subsection (2) of this section 23 
that the sale was induced by the use of false, fraudulent, or altered identification 24 
papers or other documents, and that the appearance and character of the 25 
purchaser were such that the purchaser’s age could not have been ascertained by 26 
any other means, and that the purchaser’s appearance and character indicated 27  UNOFFICIAL COPY  	23 RS BR 238 
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strongly that the purchaser was of legal age to purchase cannabis and cannabis 1 
products. This evidence may be introduced either in mitigation of the charge or 2 
as a defense to the charge itself. 3 
SECTION 14.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 4 
READ AS FOLLOWS: 5 
Every retail licensee shall display signs that are visible to persons entering the premises 6 
that state as follows: 7 
(1) The United States Surgeon General has issued an advisory opinion stating that 8 
smoking or ingesting cannabis by pregnant women may cause harm to the fetus; 9 
and 10 
(2) Minor persons under the age of twenty-one (21) may face criminal penalties if 11 
they attempt to buy cannabis or cannabis products themselves or if they attempt 12 
to have someone else buy cannabis or cannabis products for them. 13 
SECTION 15.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 14 
READ AS FOLLOWS: 15 
(1) (a) There is established in the State Treasury a revolving account which shall 16 
be a permanent and perpetual fund to be known as the cannabis fund to 17 
which shall be credited any amounts collected from license and permit fees 18 
under this chapter, fines in lieu of suspension under this chapter, and 19 
excise taxes pursuant to Section 19 of this Act, in addition to any other 20 
appropriations, gifts, grants, federal funds, or other funds, both public or 21 
private, directed to the fund for the purposes set forth in this section. 22 
(b) Expenses for the operation of the board and department shall first be paid 23 
from the fund in accordance with amounts appropriated by the General 24 
Assembly for such purposes in an enacted budget bill. 25 
(c) After the payment of operating expenses, at least thirty percent (30%) of the 26 
amount remaining shall be retained in the fund and shall be expended as 27  UNOFFICIAL COPY  	23 RS BR 238 
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determined by the Social Impact Council established in Section 16 of this 1 
Act, with the remainder of funds distributed to the General Fund. 2 
(2) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal 3 
year shall not lapse but shall be carried forward into the next fiscal year. 4 
(3) Moneys deposited into the fund are hereby appropriated for the purposes set forth 5 
in this section and shall not be appropriated or transferred by the General 6 
Assembly for any other purposes. 7 
(4) Interest earned from moneys in the fund shall become part of the fund and shall 8 
not lapse. 9 
SECTION 16.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 10 
READ AS FOLLOWS: 11 
(1) The Social Impact Council is created as a political subdivision of the 12 
Commonwealth to perform essential governmental and public functions by 13 
administering funds to provide economic assistance to the Commonwealth. The 14 
council shall be a public agency subject to KRS 61.805 to 61.850, 61.870 to 15 
61.884, and other applicable statutes. The purpose of the council is to directly 16 
address the impact of economic disinvestment, violence, and historical overuse of 17 
criminal justice responses to community and individual needs by providing 18 
resources to support local design and control of community-based responses to 19 
these impacts. 20 
(2) The council shall have a total membership of eighteen (18) voting members that 21 
shall consist of thirteen (13) at-large citizen members and five (5) ex officio 22 
members. The chair of the Cannabis Control Board or designee shall also serve 23 
as a nonvoting ex officio member. At-large citizen members shall be appointed by 24 
the Governor. At-large citizen members of the council shall be citizens of the 25 
Commonwealth and shall include: 26 
(a) A person who has been previously incarcerated or convicted of a cannabis-27  UNOFFICIAL COPY  	23 RS BR 238 
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related crime; 1 
(b) An expert in the field of public health with experience in trauma-informed 2 
care, if possible; 3 
(c) An expert in education with a focus on access to opportunities for youth in 4 
underserved communities; 5 
(d) An expert on Kentucky's foster care system; 6 
(e) An expert in workforce development; 7 
(f) A representative from one (1) of Kentucky's Historically Black Colleges and 8 
Universities; 9 
(g) A veteran of the United States Armed Forces; 10 
(h) An entrepreneur with expertise in emerging industries or access to capital 11 
for small businesses; 12 
(i) A representative from the Department of Public Advocacy; and 13 
(j) Four (4) community-based providers or community development 14 
organization representatives who provide services to address the social 15 
determinants of health and promote community investment in communities 16 
adversely and disproportionately impacted by cannabis prohibitions, 17 
including services such as workforce development, youth mentoring and 18 
educational services, job training and placement services, and reentry 19 
services. 20 
(3) The five (5) ex officio members of the council shall be: 21 
(a) The secretary of the Cabinet for Economic Development or designee; 22 
(b) The secretary of the Cabinet for Health and Family Services or designee; 23 
(c) The secretary of the Justice and Public Safety Cabinet or designee; 24 
(d) The secretary of the Education and Labor Cabinet or designee; and 25 
(e) The Attorney General or designee. 26 
(4) Ex officio members of the council shall serve coincident with their terms of 27  UNOFFICIAL COPY  	23 RS BR 238 
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office. At-large citizen members shall be appointed for a term of four (4) years. 1 
Appointments to fill vacancies, other than by expiration of a term, shall be for the 2 
unexpired terms. Vacancies shall be filled in the same manner as the original 3 
appointments. All members may be reappointed. 4 
(5) (a) Consideration shall be given to racial and gender equity in the appointment 5 
of the at-large citizen members. 6 
(b) The at-large citizen members shall be appointed in equal proportion from 7 
the two (2) political parties casting the highest and next highest number of 8 
votes at the last preceding general election in the state. 9 
(6) A majority of the council shall select a chair and vice-chair from among its 10 
membership. A majority of the members shall constitute a quorum. The council's 11 
first meeting shall convene by August 1, 2025. The council shall meet at least 12 
once every two (2) months and shall meet at the call of the chair or whenever the 13 
majority of the members so request. 14 
(7) Members shall receive no compensation but shall be reimbursed for all 15 
reasonable and necessary expenses incurred in the performance of their duties. 16 
(8) The council shall be attached to the Public Protection Cabinet for administrative 17 
purposes. 18 
SECTION 17.   A NEW SECTION OF KRS CHAPTER 245 IS CREATED TO 19 
READ AS FOLLOWS: 20 
The Social Impact Council's powers and duties shall include: 21 
(1) Developing and implementing scholarship programs and educational and 22 
vocational resources for historically marginalized youth, including youth in 23 
foster care, who have been adversely impacted by substance use individually, in 24 
their families, or in their communities; 25 
(2) Developing and implementing a program to award grants to support workforce 26 
development programs, youth mentoring programs, job training and placement 27  UNOFFICIAL COPY  	23 RS BR 238 
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services, and reentry services that serve communities historically and 1 
disproportionately targeted by drug enforcement; 2 
(3) Administering the cannabis fund established under Section 15 of this Act; 3 
(4) Collaborating with the Cannabis Control Board to implement programs and 4 
provide recommendations consistent with the purposes of this section; 5 
(5) Receiving requests and applications for funds and authorizing the distribution of 6 
funds; 7 
(6) Developing guidelines and criteria for eligibility for and disbursement of funds, 8 
the types of direct and indirect economic assistance to be awarded, and 9 
procedures for applying for funds and reviewing applications for assistance; 10 
(7) Preparing a biennial budget request in accordance with KRS Chapter 48; 11 
(8) Working with other governmental agencies to maximize the financial and 12 
economic impact that the programs implemented by the council will have and to 13 
maximize receipt of federal and other funds to the Commonwealth; 14 
(9) Submitting an annual report and executive summary to the Governor and the 15 
General Assembly for publication. The chair shall submit to the Governor and 16 
the Legislative Research Commission an annual executive summary of the 17 
interim activity and work of the council no later than the first day of each regular 18 
session of the General Assembly; and 19 
(10) Performing any other activities and functions as directed by the Governor. 20 
SECTION 18.   A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 21 
READ AS FOLLOWS: 22 
As used in this chapter, unless the context requires otherwise: 23 
(1) "Cannabis" has the same meaning as in Section 1 of this Act; 24 
(2) "Cultivator" means a licensee with a cultivator license under Section 7 of this 25 
Act; 26 
(3) "Microbusiness" means a licensee with a microbusiness license under Section 7 27  UNOFFICIAL COPY  	23 RS BR 238 
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of this Act; 1 
(4) "Processor" means a licensee with a processor license under Section 7 of this 2 
Act; and 3 
(5) "Retailer" means a licensee with a retail license under Section 7 of this Act. 4 
SECTION 19. A NEW SECTION OF KRS CHAPTER 138 IS CR EATED TO 5 
READ AS FOLLOWS: 6 
(1) Beginning on July 1, 2024, an excise tax is hereby imposed at the time of the first 7 
sale or transfer of harvested cannabis by a: 8 
(a) Cultivator to a processor or retailer; or 9 
(b) Microbusiness to a retailer or consumer. 10 
 The tax shall be paid by the licensee selling or transferring the cannabis and 11 
shall be based on the weight of the cannabis transferred, regardless of any 12 
payment received. 13 
(2) The rate of the tax imposed by subsection (1) of this section shall be set annually 14 
by the Cannabis Control Board established in Section 3 of this Act through the 15 
promulgation of an administrative regulation.  16 
(3) Every cultivator, processor, retailer, and microbusiness shall file an application 17 
for registration with the Department of Revenue. The application shall be in the 18 
form prescribed by the department. The application shall be signed by: 19 
(a) The owner if the applicant is a natural person; 20 
(b) A member or partner if the applicant is an association or partnership; or 21 
(c) An executive officer or some person specifically authorized by the 22 
corporation to sign the application if the applicant is a corporation. 23 
(4) The taxes imposed by this section are due and payable to the Department of 24 
Revenue monthly on or before the twentieth day of the month following each 25 
calendar month. 26 
(5) A return for the preceding calendar month shall be filed with the Department of 27  UNOFFICIAL COPY  	23 RS BR 238 
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Revenue by every cultivator, processor, retailer, and microbusiness, together with 1 
any tax due. For the purpose of facilitating the administration, payment, or 2 
collection of the taxes levied by this section, the Department of Revenue may 3 
permit or require returns to be filed or tax payments to be made other than as 4 
specifically required by this section. 5 
(6) Every cultivator, processor, retailer, and microbusiness shall keep records, 6 
receipts, invoices, and other pertinent papers in the form as the Department of 7 
Revenue may require. Every cultivator, processor, retailer, and microbusiness 8 
who files the returns required under this section shall keep records for not less 9 
than six (6) years from the making of records unless the Department of Revenue 10 
in writing authorizes their destruction at an earlier date. 11 
(7) The Department of Revenue shall establish a method or process that may be a 12 
part of the tracking system required by Section 4 of this Act, to identify cannabis 13 
on which the tax imposed by this section has been paid. 14 
(8) All receipts, interest, and penalties resulting from the taxes imposed under this 15 
section shall be deposited into the cannabis fund created in Section 15 of this Act. 16 
SECTION 20.   A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 17 
READ AS FOLLOWS: 18 
(1) Notwithstanding anything in this chapter to the contrary, the president, vice 19 
president, secretary, treasurer, or any other person holding any equivalent 20 
corporate office of any corporation subject to Sections 1 to 14 of this Act shall be 21 
personally and individually liable, both jointly and severally, for the taxes 22 
imposed by Section 19 of this Act.  23 
(2) Corporate dissolution, withdrawal of the corporation from the state, or the 24 
cessation of holding any corporate office shall not discharge the liability of any 25 
person. The personal and individual liability shall apply to every person holding a 26 
corporate office at the time the tax becomes or became due.  27  UNOFFICIAL COPY  	23 RS BR 238 
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(3) Notwithstanding anything in this chapter, KRS 275.150, 362.1-306(3) or 1 
predecessor law, or 362.2-404(3) to the contrary, the managers of a limited 2 
liability company, the partners of a limited liability partnership, and the general 3 
partners of a limited liability limited partnership or any other person holding any 4 
equivalent office of a limited liability company, limited liability partnership, or 5 
limited liability limited partnership subject to Sections 1 to 14 of this Act shall be 6 
personally and individually liable, both jointly and severally, for the cannabis and 7 
cannabis products taxes. 8 
(4) Dissolution, withdrawal of the limited liability company, limited liability 9 
partnership, or limited liability limited partnership from the state, or the cessation 10 
of holding any office shall not discharge the liability of any person. The personal 11 
and individual liability shall apply to every manager of a limited liability 12 
company, partner of a limited liability partnership, or general partner of a limited 13 
liability limited partnership at the time the tax becomes or became due.  14 
(5) No person shall be personally and individually liable under this section who had 15 
no authority to collect, truthfully account for, or pay over any cannabis and 16 
cannabis product tax at the time the taxes imposed become or became due.  17 
(6) "Taxes" as used in this section include interest accrued at the rate provided by 18 
KRS 131.183, all applicable penalties imposed under this chapter, and all 19 
applicable penalties imposed under KRS 131.180, 131.410 to 131.445, and 20 
131.990. 21 
SECTION 21.   A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 22 
READ AS FOLLOWS: 23 
Any person who violates Section 19 or 20 of this Act shall be subject to the uniform 24 
civil penalties imposed pursuant to KRS 131.180 and interest at the tax interest rate as 25 
provided in KRS 131.183 from the date due until the date of payment. 26 
Section 22.   KRS 139.472 (Effective January 1, 2023) is amended to read as 27  UNOFFICIAL COPY  	23 RS BR 238 
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follows: 1 
(1) Notwithstanding any other provisions of this chapter, the taxes imposed by this 2 
chapter shall not apply to the sale or purchase of: 3 
(a) A drug purchased for the treatment of a human being for which a prescription 4 
is required by state or federal law, whether the drug is dispensed by a licensed 5 
pharmacist, administered by a physician or other health care provider, or 6 
distributed as a free sample to or from a physician's office; 7 
(b) An over-the-counter drug purchased for the treatment of a human being for 8 
which a prescription is issued; 9 
(c) Medical oxygen and oxygen delivery equipment purchased for home use. 10 
Oxygen delivery equipment includes: 11 
1. High pressure cylinders, cryogenic tanks, oxygen concentrators, or 12 
similar medical oxygen delivery equipment including repair and 13 
replacement parts for the equipment; and 14 
2. Tubes, masks, and similar items required for the delivery of oxygen to 15 
the patient; 16 
(d) Insulin and diabetic supplies, including hypodermic syringes, needles, and 17 
sugar (urine and blood) testing materials purchased by an individual for 18 
private use; 19 
(e) Colostomy, urostomy, or ileostomy supplies purchased by an individual for 20 
private use; 21 
(f) Prosthetic devices purchased by any health care provider for use in the 22 
treatment of a specific individual or purchased by an individual as prescribed 23 
by a person authorized under the laws of the Commonwealth to issue 24 
prescriptions; 25 
(g) Prosthetic devices that are individually designed or created for an individual 26 
regardless of the purchaser; 27  UNOFFICIAL COPY  	23 RS BR 238 
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(h) Mobility enhancing equipment for which a prescription is issued;[ and] 1 
(i) Durable medical equipment, including hospital beds for which a prescription 2 
is issued; and 3 
(j) Medical cannabis as defined in Section 1 of this Act and any accessories 4 
used in conjunction with medical cannabis. 5 
(2) Except as specifically provided in subsection (1) of this section, supplies or 6 
equipment used to deliver a drug to a patient are taxable. 7 
(3) As used in this section and KRS 139.480: 8 
(a) "Drug" means a compound, substance, or preparation and any component of a 9 
compound, substance, or preparation, other than food and food ingredients, 10 
dietary supplements, or alcoholic beverages as defined in KRS 139.485, that is 11 
recognized in the official United States Pharmacopoeia, official Homeopathic 12 
Pharmacopoeia of the United States, or official National Formulary, or a 13 
supplement to any of them, or is: 14 
1. Intended for use in the diagnosis, cure, mitigation, treatment, or 15 
prevention of disease; or 16 
2. Intended to affect the structure or any function of the body; 17 
(b) "Grooming and hygiene products" means soaps and cleaning solutions, 18 
shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions, 19 
regardless of whether the items meet the definition of an over-the-counter 20 
drug; 21 
(c) 1. "Over-the-counter drug" means a drug that contains a label that 22 
identifies the product as a drug as required by 21 C.F.R. sec. 201.66. The 23 
"over-the-counter drug" label shall include: 24 
a. A "Drug Facts" panel; or 25 
b. A statement of the active ingredients with a list of those 26 
ingredients contained in the compound, substance, or preparation. 27  UNOFFICIAL COPY  	23 RS BR 238 
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2. "Over-the-counter drug" shall not include grooming and hygiene 1 
products; 2 
(d) "Prescription" means an order, formula, or recipe issued in any form of oral, 3 
written, electronic, or other means of transmission by a person authorized 4 
under the laws of the Commonwealth to prescribe a drug; 5 
(e) 1. "Prosthetic device" means a replacement, corrective, or supportive 6 
device, including repair and replacement parts for the device, worn on or 7 
in the body to: 8 
a. Artificially replace a missing portion of the body; 9 
b. Prevent or correct a physical deformity or malfunction; or 10 
c. Support a weak or deformed portion of the body. 11 
2. "Prosthetic device" shall not include any of the following: 12 
a. Corrective eyeglasses; 13 
b. Contact lenses; or 14 
c. Dental prosthesis; 15 
(f) 1. "Mobility enhancing equipment" means equipment, including repair and 16 
replacements part for same, which: 17 
a. Is primarily and customarily used to provide or increase the ability 18 
to move from one place to another and which is appropriate for use 19 
either in a home or a motor vehicle; 20 
b. Is not generally used by persons with normal mobility; and 21 
c. Does not include any motor vehicle or equipment on a motor 22 
vehicle normally provided by a motor vehicle manufacturer. 23 
2. "Mobility enhancing equipment" shall not include durable medical 24 
equipment; and 25 
(g) 1. "Durable medical equipment" means equipment, including repair and 26 
replacement parts for same, which: 27  UNOFFICIAL COPY  	23 RS BR 238 
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a. Can withstand repeated use; 1 
b. Is primarily and customarily used to serve a medical purpose; 2 
c. Generally is not useful to a person in the absence of illness or 3 
injury; and 4 
d. Is not worn in or on the body. 5 
2. "Durable medical equipment" shall not include mobility enhancing 6 
equipment or oxygen delivery equipment that is not worn in or on the 7 
body. 8 
3. As used in this paragraph, "repair and replacement parts" includes all 9 
components or attachments used in connection with durable medical 10 
equipment. 11 
SECTION 23.   A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 12 
READ AS FOLLOWS: 13 
(1) As used in this section, unless the context requires otherwise: 14 
(a) "Licensee" means a retailer or microbusiness licensed to conduct cannabis 15 
activities under Section 7 of this Act; 16 
(b) "Local government" means any city, county, urban-county government, 17 
consolidated local government, unified local government, or charter county 18 
government; and 19 
(c) "Gross revenue" means all revenues or proceeds derived from the sale, 20 
lease, or rental of goods, services, or property by a business entity reduced 21 
by sales and excise taxes paid and returns and allowances.  22 
(2) Beginning on July 1, 2025, local governments may, by ordinance, levy a licensing 23 
fee on licensees for the privilege of operating within the limits of the local 24 
government as provided in this section. 25 
(3) The maximum license fee that may be levied within a local government is five 26 
percent (5%) of the gross receipts of a licensee from activities conducted within 27  UNOFFICIAL COPY  	23 RS BR 238 
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the local government. Units of local government within other units of local 1 
government may work together to establish a uniform or combined license fee 2 
rate with revenue sharing between the units of local government through an 3 
interlocal agreement entered into pursuant to KRS 65.210 to 65.300. 4 
(4) Absent an agreement between the units of local government: 5 
(a) A city may impose a license fee not to exceed three percent (3%) of gross 6 
revenues received by a licensee within the jurisdiction of the city; 7 
(b) A county, urban-county government, consolidated local government, 8 
unified local government, or charter county government may impose a 9 
license fee not to exceed two percent (2%) of gross revenues received by a 10 
licensee within the jurisdiction of the county, urban-county government, 11 
consolidated local government, unified local government, or charter county 12 
government; and 13 
(c) A local government that does not include any independently incorporated 14 
cities may impose a license fee not to exceed five percent (5%) of gross 15 
revenues received by a retailer licensed under Section 7 of this Act within 16 
the jurisdiction of the county level unit of government. 17 
(5) The revenue received from the imposition of the licensing fee in this section shall 18 
be deposited into the general fund of the local government unit. 19 
Section 24.   KRS 2.015 is amended to read as follows: 20 
Persons of the age of eighteen (18) years are of the age of majority for all purposes in this 21 
Commonwealth except for the purchase of alcoholic beverages, the purchase of 22 
cannabis, cannabis products, and cannabis accessories, and for purposes of care and 23 
treatment of children with disabilities, for which twenty-one (21) years is the age of 24 
majority, all other statutes to the contrary notwithstanding. 25 
SECTION 25.   A NEW SECTION OF KRS CHAPTER 21 8A IS CREATED 26 
TO READ AS FOLLOWS: 27  UNOFFICIAL COPY  	23 RS BR 238 
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(1) Smoking marijuana in public is prohibited. 1 
(2) Smoking marijuana in public shall be a violation subject to a maximum fine of 2 
one hundred dollars ($100). 3 
SECTION 26.   A NEW SECTION OF KRS CHAPTER 218A IS CREATED 4 
TO READ AS FOLLOWS: 5 
(1) A person shall not be subject to arrest, prosecution, or penalty in any manner, or 6 
denied any right or privilege, including but not limited to a civil penalty or 7 
disciplinary action by any occupational or professional licensing board if the 8 
person's actions are authorized by and in compliance with Sections 1 to 14 of this 9 
Act. 10 
(2) A person shall not be subject to arrest, prosecution, or penalty in any manner, or 11 
denied any right or privilege, including but not limited to a civil penalty or 12 
disciplinary action by an occupational or professional licensing board, for 13 
providing assistance or services, including but not limited to legal services, 14 
medical services, accounting services, security services, or business consulting 15 
services, to any individual or marijuana business related to activity that is no 16 
longer subject to criminal penalties under state law pursuant to Sections 1 to 14 17 
of this Act. 18 
Section 27.   KRS 218A.1421 is amended to read as follows: 19 
Subsections (1) to (5) of this section shall not apply if the trafficking or possession of 20 
marijuana is in compliance with or authorized by Sections 1 to 14 of this Act. 21 
(1) A person is guilty of trafficking in marijuana when the person:[he]  22 
(a) Knowingly and unlawfully traffics in marijuana; or 23 
(b) Provides cannabis to another person outside the limitations of the cannabis 24 
license, if licensed under Sections 1 to 14 of this Act. 25 
(2) Trafficking in less than eight (8) ounces of marijuana is: 26 
(a) For a first offense a Class A misdemeanor. 27  UNOFFICIAL COPY  	23 RS BR 238 
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(b) For a second or subsequent offense a Class D felony. 1 
(3) Trafficking in eight (8) or more ounces but less than five (5) pounds of marijuana 2 
is: 3 
(a) For a first offense a Class D felony. 4 
(b) For a second or subsequent offense a Class C felony. 5 
(4) Trafficking in five (5) or more pounds of marijuana is: 6 
(a) For a first offense a Class C felony. 7 
(b) For a second or subsequent offense a Class B felony. 8 
(5) The unlawful possession by any person of eight (8) or more ounces of marijuana 9 
shall be prima facie evidence that the person possessed the marijuana with the intent 10 
to sell or transfer it. 11 
(6) This section shall not apply to transfers of one (1) ounce or less of marijuana 12 
without remuneration between two (2) persons who may legally possess 13 
marijuana. 14 
Section 28.   KRS 218A.1422 is amended to read as follows: 15 
(1) A person is guilty of possession of marijuana when he or she knowingly and 16 
unlawfully possesses more than one (1) ounce of marijuana while in a public place 17 
or knowingly and unlawfully possesses twelve (12) ounces or more of marijuana 18 
in a nonpublic place. 19 
(2) Possession of marijuana is a Class B misdemeanor, except that, KRS Chapter 532 20 
to the contrary notwithstanding, the maximum term of incarceration shall be no 21 
greater than forty-five (45) days. 22 
(3) This section shall not apply if the possession is in compliance with or authorized 23 
by Sections 1 to 14 of this Act. 24 
Section 29.   KRS 218A.1423 is amended to read as follows: 25 
(1) A person is guilty of marijuana cultivation when the person[he] knowingly and 26 
unlawfully plants, cultivates, or harvests marijuana with the intent to sell or transfer 27  UNOFFICIAL COPY  	23 RS BR 238 
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it. 1 
(2) Unless authorized by Sections 1 to 14 of this Act, marijuana cultivation of more 2 
than ten (10) mature[five (5) or more] plants of marijuana is: 3 
[(a) For a first offense a Class D felony. 4 
(b) For a second or subsequent offense a Class C felony. 5 
(3) Marijuana cultivation of fewer than five (5) plants is:] 6 
(a) For a first offense a Class A misdemeanor. 7 
(b) For a second or subsequent offense a Class D felony. 8 
(3)[(4)] The planting, cultivating, or harvesting of ten (10)[five (5)] or more mature 9 
marijuana plants shall be prima facie evidence that the marijuana plants were 10 
planted, cultivated, or harvested for the purpose of sale or transfer. 11 
(4) This section shall not apply to a cultivator or microbusiness holding a license 12 
under Sections 1 to 14 of this Act when the licensee is cultivating marijuana in 13 
compliance with Sections 1 to 14 of this Act. 14 
(5) For purposes of this section, a person may grow ten (10) or fewer mature 15 
marijuana plants without being in violation of this section. A mature plant means 16 
a plant that has produced flowers.  17 
Section 30.   KRS 218A.500 is amended to read as follows: 18 
As used in this section and KRS 218A.510: 19 
(1) "Drug paraphernalia" means all equipment, products and materials of any kind 20 
which are used, intended for use, or designed for use in planting, propagating, 21 
cultivating, growing, harvesting, manufacturing, compounding, converting, 22 
producing, processing, preparing, testing, analyzing, packaging, repackaging, 23 
storing, containing, concealing, injecting, ingesting, inhaling, or otherwise 24 
introducing into the human body a controlled substance in violation of this chapter. 25 
It includes but is not limited to: 26 
(a) Kits used, intended for use, or designed for use in planting, propagating, 27  UNOFFICIAL COPY  	23 RS BR 238 
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cultivating, growing, or harvesting of any species of plant which is a 1 
controlled substance or from which a controlled substance can be derived; 2 
(b) Kits used, intended for use, or designed for use in manufacturing, 3 
compounding, converting, producing, processing, or preparing controlled 4 
substances; 5 
(c) Isomerization devices used, intended for use, or designed for use in increasing 6 
the potency of any species of plant which is a controlled substance; 7 
(d) Testing equipment used, intended for use, or designed for use in identifying, 8 
or in analyzing the strength, effectiveness or purity of controlled substances; 9 
(e) Scales and balances used, intended for use, or designed for use in weighing or 10 
measuring controlled substances; 11 
(f) Diluents and adulterants, such as quinine hydrochloride, mannitol, mannite, 12 
dextrose and lactose, used, intended for use, or designed for use in cutting 13 
controlled substances; 14 
(g) Separation gins and sifters used, intended for use, or designed for use in 15 
removing twigs and seeds from, or in otherwise cleaning or refining 16 
marijuana; 17 
(h) Blenders, bowls, containers, spoons, and mixing devices used, intended for 18 
use, or designed for use in compounding controlled substances; 19 
(i) Capsules, balloons, envelopes, and other containers used, intended for use, or 20 
designed for use in packaging small quantities of controlled substances; 21 
(j) Containers and other objects used, intended for use, or designed for use in 22 
storing or concealing controlled substances; 23 
(k) Hypodermic syringes, needles, and other objects used, intended for use, or 24 
designed for use in parenterally injecting controlled substances into the human 25 
body; and 26 
(l) Objects used, intended for use, or designed for use in ingesting, inhaling, or 27  UNOFFICIAL COPY  	23 RS BR 238 
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otherwise introducing marijuana, cocaine, hashish, or hashish oil into the 1 
human body, such as: metal, wooden, acrylic, glass, stone, plastic, or ceramic 2 
pipes with or without screens, permanent screens, hashish heads, or punctured 3 
metal bowls; water pipes; carburetion tubes and devices; smoking and 4 
carburetion masks; roach clips which mean objects used to hold burning 5 
material, such as marijuana cigarettes, that have become too small or too short 6 
to be held in the hand; miniature cocaine spoons, and cocaine vials; chamber 7 
pipes; carburetor pipes; electric pipes; air-driven pipes; chillums; bongs; ice 8 
pipes or chillers. 9 
(2) It is unlawful for any person to use, or to possess with intent to use, drug 10 
paraphernalia for the purpose of planting, propagating, cultivating, growing, 11 
harvesting, manufacturing, compounding, converting, producing, processing, 12 
preparing, testing, analyzing, packing, repacking, storing, containing, concealing, 13 
injecting, ingesting, inhaling, or otherwise introducing into the human body a 14 
controlled substance in violation of this chapter. 15 
(3) It is unlawful for any person to deliver, possess with intent to deliver, or 16 
manufacture with intent to deliver, drug paraphernalia, knowing, or under 17 
circumstances where one reasonably should know, that it will be used to plant, 18 
propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, 19 
process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, 20 
inhale, or otherwise introduce into the human body a controlled substance in 21 
violation of this chapter. 22 
(4) It is unlawful for any person to place in any newspaper, magazine, handbill, or other 23 
publication any advertisement, knowing, or under circumstances where one 24 
reasonably should know, that the purpose of the advertisement, in whole or in part, 25 
is to promote the sale of objects designed or intended for use as drug paraphernalia. 26 
(5) (a) This section shall not prohibit a local health department from operating a 27  UNOFFICIAL COPY  	23 RS BR 238 
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substance abuse treatment outreach program which allows participants to 1 
exchange hypodermic needles and syringes. 2 
(b) To operate a substance abuse treatment outreach program under this 3 
subsection, the local health department shall have the consent, which may be 4 
revoked at any time, of the local board of health and: 5 
1. The legislative body of the first or home rule class city in which the 6 
program would operate if located in such a city; and 7 
2. The legislative body of the county, urban-county government, or 8 
consolidated local government in which the program would operate. 9 
(c) Items exchanged at the program shall not be deemed drug paraphernalia under 10 
this section while located at the program. 11 
(6) (a) Prior to searching a person, a person's premises, or a person's vehicle, a peace 12 
officer may inquire as to the presence of needles or other sharp objects in the 13 
areas to be searched that may cut or puncture the officer and offer to not 14 
charge a person with possession of drug paraphernalia if the person declares to 15 
the officer the presence of the needle or other sharp object. If, in response to 16 
the offer, the person admits to the presence of the needle or other sharp object 17 
prior to the search, the person shall not be charged with or prosecuted for 18 
possession of drug paraphernalia for the needle or sharp object or for 19 
possession of a controlled substance for residual or trace drug amounts present 20 
on the needle or sharp object. 21 
(b) The exemption under this subsection shall not apply to any other drug 22 
paraphernalia that may be present and found during the search or to controlled 23 
substances present in other than residual or trace amounts. 24 
(7) (a) This section shall not prohibit the retail sale of hypodermic syringes and 25 
needles without a prescription in pharmacies. 26 
(b) Hypodermic syringe and needle inventory of a pharmacy shall not be deemed 27  UNOFFICIAL COPY  	23 RS BR 238 
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drug paraphernalia under this section. 1 
(8) Any person who violates any provision of this section shall be guilty of a Class A 2 
misdemeanor. 3 
(9) This section shall not apply to: 4 
(a) Marijuana accessories that meet the definition of a legal "cannabis 5 
accessory" under Section 1 of this Act; and 6 
(b) Items used in the cultivation or use of marijuana licensed under Sections 1 7 
to 14 of this Act. 8 
SECTION 31.   A NEW SECTION OF KRS CHAPTER 431 IS CREATED TO 9 
READ AS FOLLOWS: 10 
(1) Any person who has been convicted of a misdemeanor for possession of 11 
marijuana or possession, delivery, or manufacture of marijuana-related drug 12 
paraphernalia may petition the court in which that person was convicted for 13 
expungement of the person's record, including a record of any charges for 14 
misdemeanors, violations, or traffic infractions that were dismissed or amended 15 
in the criminal action. 16 
(2) For a petition brought under this section, the court shall order expunged all 17 
records in the custody of the court and any records in the custody of any other 18 
agency or official, including law enforcement records, if the court finds that the 19 
offense was for a misdemeanor possession of marijuana or marijuana-related 20 
drug paraphernalia or the delivery or manufacture of marijuana-related drug 21 
paraphernalia. 22 
(3) Upon the entry of an order to expunge the records: 23 
(a) The proceedings in the case shall be deemed never to have occurred; 24 
(b) The court and other agencies shall cause records to be deleted or removed 25 
from their computer systems so that the matter shall not appear on official 26 
state-performed background checks; 27  UNOFFICIAL COPY  	23 RS BR 238 
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(c) The person and the court may properly reply that no record exists with 1 
respect to the person upon any inquiry in the matter; and 2 
(d) The person whose record is expunged shall not have to disclose the fact of 3 
the record or any related matter on an application for employment, credit, 4 
or other type of application. 5 
(4) There shall be no filing fee or court costs for a petition under this section. 6 
(5) Copies of the order shall be sent to the Department of Kentucky State Police 7 
Criminal Identifications and Records Branch and to each agency or official 8 
named in the order. 9 
(6) Inspection of the records included in the order may thereafter be permitted by the 10 
court only upon petition by the person who is the subject of the records and only 11 
to those persons named in the petition. 12 
(7) This section shall be retroactive. 13 
Section 32.   KRS 431.079 is amended to read as follows: 14 
(1) Every petition or application filed seeking expungement of a conviction, except for 15 
a petition filed under Section 31 of this Act, shall include a certification of 16 
eligibility for expungement. The Department of Kentucky State Police and the 17 
Administrative Office of the Courts shall certify that the agencies have conducted a 18 
criminal background check on the petitioner and whether or not the petitioner is 19 
eligible to have the requested record expunged. The Department of Kentucky State 20 
Police shall promulgate administrative regulations to implement this section, in 21 
consultation with the Administrative Office of the Courts. 22 
(2) Nothing in this section shall be construed to prohibit the expungement of a case 23 
ordered by a court of competent jurisdiction. 24 
(3) For the purposes of this section, KRS 431.073, 431.076, and 431.078, 25 
"expungement" means the removal or deletion of records by the court and other 26 
agencies which prevents the matter from appearing on official state-performed 27  UNOFFICIAL COPY  	23 RS BR 238 
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background checks. 1 
Section 33.   KRS 131.1815 is amended to read as follows: 2 
(1) Whenever it is determined that a taxpayer[,] who holds a license under KRS 3 
Chapter 243 or 245[,] is a delinquent taxpayer as defined in subsection (2) of this 4 
section, the department may, after giving notice as provided in subsection (3) of this 5 
section, submit the name of the taxpayer to:  6 
(a) The Department of Alcoholic Beverage Control for revocation of any license 7 
issued under KRS Chapter 243; or 8 
(b) The Cannabis Control Board for revocation of any license issued under 9 
KRS Chapter 245. 10 
(2) Any of the following situations shall be sufficient to cause a taxpayer to be 11 
classified as a "delinquent taxpayer" for purposes of this section: 12 
(a) When a taxpayer has an overdue state tax liability arising directly or indirectly 13 
from the: 14 
1. Manufacture, sale, transportation, or distribution of alcoholic beverages; 15 
or[,] 16 
2. Cultivation, processing, or sale of cannabis, cannabis products, and 17 
cannabis accessories; 18 
 for which all protest and appeal rights granted by law have expired, and the 19 
taxpayer has been contacted by the department concerning the overdue tax 20 
liability. This does not include a taxpayer who is making current timely 21 
installment payments on the overdue tax liability under agreement with the 22 
department; 23 
(b) When a taxpayer has not filed a required tax return as of ninety (90) days after 24 
the due date or after the extended due date, and the taxpayer has been 25 
contacted by the department concerning the delinquent return; or 26 
(c) When an owner, partner, or corporate officer of a proprietorship, partnership, 27  UNOFFICIAL COPY  	23 RS BR 238 
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or corporation holding a license under KRS Chapter 243 or 245 held a similar 1 
position in a business whose license was revoked as a "delinquent taxpayer," 2 
and the tax liability remains unpaid as of ninety (90) days after the due date. 3 
(3) At least twenty (20) days before submitting a taxpayer's name to the Department of 4 
Alcoholic Beverage Control or the Cannabis Control Board as provided in 5 
subsection (1) of this section, the department shall notify the taxpayer by certified 6 
mail that the action is to be taken. The notice shall state the reason for the action 7 
and shall set out the amount of any tax liability including any applicable penalties 8 
and interest and any other area of noncompliance that shall[must] be satisfied in 9 
order to prevent the submission of the taxpayer's[his] name to the Department of 10 
Alcoholic Beverage Control or the Cannabis Control Board as a delinquent 11 
taxpayer. 12 
Section 34.   KRS 600.020 is amended to read as follows: 13 
As used in KRS Chapters 600 to 645, unless the context otherwise requires: 14 
(1) "Abused or neglected child" means a child whose health or welfare is harmed or 15 
threatened with harm when: 16 
(a) His or her parent, guardian, person in a position of authority or special trust, as 17 
defined in KRS 532.045, or other person exercising custodial control or 18 
supervision of the child: 19 
1. Inflicts or allows to be inflicted upon the child physical or emotional 20 
injury as defined in this section by other than accidental means; 21 
2. Creates or allows to be created a risk of physical or emotional injury as 22 
defined in this section to the child by other than accidental means; 23 
3. Engages in a pattern of conduct that renders the parent incapable of 24 
caring for the immediate and ongoing needs of the child, including but 25 
not limited to parental incapacity due to a substance use disorder as 26 
defined in KRS 222.005; 27  UNOFFICIAL COPY  	23 RS BR 238 
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4. Continuously or repeatedly fails or refuses to provide essential parental 1 
care and protection for the child, considering the age of the child; 2 
5. Commits or allows to be committed an act of sexual abuse, sexual 3 
exploitation, or prostitution upon the child; 4 
6. Creates or allows to be created a risk that an act of sexual abuse, sexual 5 
exploitation, or prostitution will be committed upon the child; 6 
7. Abandons or exploits the child; 7 
8. Does not provide the child with adequate care, supervision, food, 8 
clothing, shelter, and education or medical care necessary for the child's 9 
well-being when financially able to do so or offered financial or other 10 
means to do so. A parent or other person exercising custodial control or 11 
supervision of the child legitimately practicing the person's religious 12 
beliefs shall not be considered a negligent parent solely because of 13 
failure to provide specified medical treatment for a child for that reason 14 
alone. This exception shall not preclude a court from ordering necessary 15 
medical services for a child; 16 
9. Fails to make sufficient progress toward identified goals as set forth in 17 
the court-approved case plan to allow for the safe return of the child to 18 
the parent that results in the child remaining committed to the cabinet 19 
and remaining in foster care for fifteen (15) cumulative months out of 20 
forty-eight (48) months; or 21 
10. Commits or allows female genital mutilation as defined in KRS 508.125 22 
to be committed; or 23 
(b) A person twenty-one (21) years of age or older commits or allows to be 24 
committed an act of sexual abuse, sexual exploitation, or prostitution upon a 25 
child less than sixteen (16) years of age; 26 
(2) "Age or developmentally appropriate" has the same meaning as in 42 U.S.C. sec. 27  UNOFFICIAL COPY  	23 RS BR 238 
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675(11); 1 
(3) "Aggravated circumstances" means the existence of one (1) or more of the 2 
following conditions: 3 
(a) The parent has not attempted or has not had contact with the child for a period 4 
of not less than ninety (90) days; 5 
(b) The parent is incarcerated and will be unavailable to care for the child for a 6 
period of at least one (1) year from the date of the child's entry into foster care 7 
and there is no appropriate relative placement available during this period of 8 
time; 9 
(c) The parent has sexually abused the child and has refused available treatment; 10 
(d) The parent has been found by the cabinet to have engaged in abuse of the 11 
child that required removal from the parent's home two (2) or more times in 12 
the past two (2) years; or 13 
(e) The parent has caused the child serious physical injury; 14 
(4) "Beyond the control of parents" means a child who has repeatedly failed to follow 15 
the reasonable directives of his or her parents, legal guardian, or person exercising 16 
custodial control or supervision other than a state agency, which behavior results in 17 
danger to the child or others, and which behavior does not constitute behavior that 18 
would warrant the filing of a petition under KRS Chapter 645; 19 
(5) "Beyond the control of school" means any child who has been found by the court to 20 
have repeatedly violated the lawful regulations for the government of the school as 21 
provided in KRS 158.150, and as documented in writing by the school as a part of 22 
the school's petition or as an attachment to the school's petition. The petition or 23 
attachment shall describe the student's behavior and all intervention strategies 24 
attempted by the school; 25 
(6) "Boarding home" means a privately owned and operated home for the boarding and 26 
lodging of individuals which is approved by the Department of Juvenile Justice or 27  UNOFFICIAL COPY  	23 RS BR 238 
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the cabinet for the placement of children committed to the department or the 1 
cabinet; 2 
(7) "Cabinet" means the Cabinet for Health and Family Services; 3 
(8) "Certified juvenile facility staff" means individuals who meet the qualifications of, 4 
and who have completed a course of education and training in juvenile detention 5 
developed and approved by, the Department of Juvenile Justice after consultation 6 
with other appropriate state agencies; 7 
(9) "Child" means any person who has not reached his or her eighteenth birthday, 8 
unless otherwise provided; 9 
(10) "Child-caring facility" means any facility or group home other than a state facility, 10 
Department of Juvenile Justice contract facility or group home, or one certified by 11 
an appropriate agency as operated primarily for educational or medical purposes, 12 
providing residential care on a twenty-four (24) hour basis to children not related by 13 
blood, adoption, or marriage to the person maintaining the facility; 14 
(11) "Child-placing agency" means any agency, other than a state agency, which 15 
supervises the placement of children in foster family homes or child-caring facilities 16 
or which places children for adoption; 17 
(12) "Clinical treatment facility" means a facility with more than eight (8) beds 18 
designated by the Department of Juvenile Justice or the cabinet for the treatment of 19 
mentally ill children. The treatment program of such facilities shall be supervised by 20 
a qualified mental health professional; 21 
(13) "Commitment" means an order of the court which places a child under the custodial 22 
control or supervision of the Cabinet for Health and Family Services, Department of 23 
Juvenile Justice, or another facility or agency until the child attains the age of 24 
eighteen (18) unless otherwise provided by law; 25 
(14) "Community-based facility" means any nonsecure, homelike facility licensed, 26 
operated, or permitted to operate by the Department of Juvenile Justice or the 27  UNOFFICIAL COPY  	23 RS BR 238 
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cabinet, which is located within a reasonable proximity of the child's family and 1 
home community, which affords the child the opportunity, if a Kentucky resident, to 2 
continue family and community contact; 3 
(15) "Complaint" means a verified statement setting forth allegations in regard to the 4 
child which contain sufficient facts for the formulation of a subsequent petition; 5 
(16) "Court" means the juvenile session of District Court unless a statute specifies the 6 
adult session of District Court or the Circuit Court; 7 
(17) "Court-designated worker" means that organization or individual delegated by the 8 
Administrative Office of the Courts for the purposes of placing children in 9 
alternative placements prior to arraignment, conducting preliminary investigations, 10 
and formulating, entering into, and supervising diversion agreements and 11 
performing such other functions as authorized by law or court order; 12 
(18) "Deadly weapon" has the same meaning as it does in KRS 500.080; 13 
(19) "Department" means the Department for Community Based Services; 14 
(20) "Dependent child" means any child, other than an abused or neglected child, who is 15 
under improper care, custody, control, or guardianship that is not due to an 16 
intentional act of the parent, guardian, or person exercising custodial control or 17 
supervision of the child; 18 
(21) "Detention" means the safe and temporary custody of a juvenile who is accused of 19 
conduct subject to the jurisdiction of the court who requires a restricted or closely 20 
supervised environment for his or her own or the community's protection; 21 
(22) "Detention hearing" means a hearing held by a judge or trial commissioner within 22 
twenty-four (24) hours, exclusive of weekends and holidays, of the start of any 23 
period of detention prior to adjudication; 24 
(23) "Diversion agreement" means a mechanism designed to hold a child accountable for 25 
his or her behavior and, if appropriate, securing services to serve the best interest of 26 
the child and to provide redress for that behavior without court action and without 27  UNOFFICIAL COPY  	23 RS BR 238 
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the creation of a formal court record; 1 
(24) "Eligible youth" means a person who: 2 
(a) Is or has been committed to the cabinet as dependent, neglected, or abused; 3 
(b) Is eighteen (18) years of age to nineteen (19) years of age; and 4 
(c) Is requesting to extend or reinstate his or her commitment to the cabinet in 5 
order to participate in state or federal educational programs or to establish 6 
independent living arrangements; 7 
(25) "Emergency shelter" is a group home, private residence, foster home, or similar 8 
homelike facility which provides temporary or emergency care of children and 9 
adequate staff and services consistent with the needs of each child; 10 
(26) "Emotional injury" means an injury to the mental or psychological capacity or 11 
emotional stability of a child as evidenced by a substantial and observable 12 
impairment in the child's ability to function within a normal range of performance 13 
and behavior with due regard to his or her age, development, culture, and 14 
environment as testified to by a qualified mental health professional; 15 
(27) "Evidence-based practices" means policies, procedures, programs, and practices 16 
proven by scientific research to reliably produce reductions in recidivism; 17 
(28) "Fictive kin" means an individual who is not related by birth, adoption, or marriage 18 
to a child, but who has an emotionally significant relationship with the child, or an 19 
emotionally significant relationship with a biological parent, siblings, or half-20 
siblings of the child in the case of a child from birth to twelve (12) months of age, 21 
prior to placement; 22 
(29) "Firearm" shall have the same meaning as in KRS 237.060 and 527.010; 23 
(30) "Foster family home" means a private home in which children are placed for foster 24 
family care under supervision of the cabinet or a licensed child-placing agency; 25 
(31) "Graduated sanction" means any of a continuum of accountability measures, 26 
programs, and sanctions, ranging from less restrictive to more restrictive in nature, 27  UNOFFICIAL COPY  	23 RS BR 238 
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that may include but are not limited to: 1 
(a) Electronic monitoring; 2 
(b) Drug and alcohol screening, testing, or monitoring; 3 
(c) Day or evening reporting centers; 4 
(d) Reporting requirements; 5 
(e) Community service; and 6 
(f) Rehabilitative interventions such as family counseling, substance abuse 7 
treatment, restorative justice programs, and behavioral or mental health 8 
treatment; 9 
(32) "Habitual runaway" means any child who has been found by the court to have been 10 
absent from his or her place of lawful residence without the permission of his or her 11 
custodian for at least three (3) days during a one (1) year period; 12 
(33) "Habitual truant" means any child who has been found by the court to have been 13 
reported as a truant as defined in KRS 159.150(1) two (2) or more times during a 14 
one (1) year period; 15 
(34) "Hospital" means, except for purposes of KRS Chapter 645, a licensed private or 16 
public facility, health care facility, or part thereof, which is approved by the cabinet 17 
to treat children; 18 
(35) "Independent living" means those activities necessary to assist a committed child to 19 
establish independent living arrangements; 20 
(36) "Informal adjustment" means an agreement reached among the parties, with 21 
consultation, but not the consent, of the victim of the crime or other persons 22 
specified in KRS 610.070 if the victim chooses not to or is unable to participate, 23 
after a petition has been filed, which is approved by the court, that the best interest 24 
of the child would be served without formal adjudication and disposition; 25 
(37) "Intentionally" means, with respect to a result or to conduct described by a statute 26 
which defines an offense, that the actor's conscious objective is to cause that result 27  UNOFFICIAL COPY  	23 RS BR 238 
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or to engage in that conduct; 1 
(38) "Least restrictive alternative" means, except for purposes of KRS Chapter 645, that 2 
the program developed on the child's behalf is no more harsh, hazardous, or 3 
intrusive than necessary; or involves no restrictions on physical movements nor 4 
requirements for residential care except as reasonably necessary for the protection 5 
of the child from physical injury; or protection of the community, and is conducted 6 
at the suitable available facility closest to the child's place of residence to allow for 7 
appropriate family engagement; 8 
(39) "Motor vehicle offense" means any violation of the nonfelony provisions of KRS 9 
Chapters 186, 189, or 189A, KRS 177.300, 304.39-110, or 304.39-117; 10 
(40) "Near fatality" means an injury that, as certified by a physician, places a child in 11 
serious or critical condition; 12 
(41) "Needs of the child" means necessary food, clothing, health, shelter, and education; 13 
(42) "Nonoffender" means a child alleged to be dependent, neglected, or abused and who 14 
has not been otherwise charged with a status or public offense; 15 
(43) "Nonsecure facility" means a facility which provides its residents access to the 16 
surrounding community and which does not rely primarily on the use of physically 17 
restricting construction and hardware to restrict freedom; 18 
(44) "Nonsecure setting" means a nonsecure facility or a residential home, including a 19 
child's own home, where a child may be temporarily placed pending further court 20 
action. Children before the court in a county that is served by a state operated secure 21 
detention facility, who are in the detention custody of the Department of Juvenile 22 
Justice, and who are placed in a nonsecure alternative by the Department of 23 
Juvenile Justice, shall be supervised by the Department of Juvenile Justice; 24 
(45) "Out-of-home placement" means a placement other than in the home of a parent, 25 
relative, or guardian, in a boarding home, clinical treatment facility, community-26 
based facility, detention facility, emergency shelter, fictive kin home, foster family 27  UNOFFICIAL COPY  	23 RS BR 238 
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home, hospital, nonsecure facility, physically secure facility, residential treatment 1 
facility, or youth alternative center; 2 
(46) "Parent" means the biological or adoptive mother or father of a child; 3 
(47) "Person exercising custodial control or supervision" means a person or agency that 4 
has assumed the role and responsibility of a parent or guardian for the child, but that 5 
does not necessarily have legal custody of the child; 6 
(48) "Petition" means a verified statement, setting forth allegations in regard to the child, 7 
which initiates formal court involvement in the child's case; 8 
(49) "Physical injury" means substantial physical pain or any impairment of physical 9 
condition; 10 
(50) "Physically secure facility" means a facility that relies primarily on the use of 11 
construction and hardware such as locks, bars, and fences to restrict freedom; 12 
(51) "Public offense action" means an action, excluding contempt, brought in the interest 13 
of a child who is accused of committing an offense under KRS Chapter 527 or a 14 
public offense which, if committed by an adult, would be a crime, whether the same 15 
is a felony, misdemeanor, or violation, other than an action alleging that a child 16 
sixteen (16) years of age or older has committed a motor vehicle offense; 17 
(52) "Qualified mental health professional" means: 18 
(a) A physician licensed under the laws of Kentucky to practice medicine or 19 
osteopathy, or a medical officer of the government of the United States while 20 
engaged in the performance of official duties; 21 
(b) A psychiatrist licensed under the laws of Kentucky to practice medicine or 22 
osteopathy, or a medical officer of the government of the United States while 23 
engaged in the practice of official duties, and who is certified or eligible to 24 
apply for certification by the American Board of Psychiatry and Neurology, 25 
Inc.; 26 
(c) A psychologist with the health service provider designation, a psychological 27  UNOFFICIAL COPY  	23 RS BR 238 
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practitioner, a certified psychologist, or a psychological associate licensed 1 
under the provisions of KRS Chapter 319; 2 
(d) A licensed registered nurse with a master's degree in psychiatric nursing from 3 
an accredited institution and two (2) years of clinical experience with mentally 4 
ill persons, or a licensed registered nurse with a bachelor's degree in nursing 5 
from an accredited institution who is certified as a psychiatric and mental 6 
health nurse by the American Nurses Association and who has three (3) years 7 
of inpatient or outpatient clinical experience in psychiatric nursing and who is 8 
currently employed by a hospital or forensic psychiatric facility licensed by 9 
the Commonwealth or a psychiatric unit of a general hospital, a private agency 10 
or company engaged in providing mental health services, or a regional 11 
comprehensive care center; 12 
(e) A licensed clinical social worker licensed under the provisions of KRS 13 
335.100, or a certified social worker licensed under the provisions of KRS 14 
335.080 with three (3) years of inpatient or outpatient clinical experience in 15 
psychiatric social work and currently employed by a hospital or forensic 16 
psychiatric facility licensed by the Commonwealth, a psychiatric unit of a 17 
general hospital, a private agency or company engaged in providing mental 18 
health services, or a regional comprehensive care center; 19 
(f) A marriage and family therapist licensed under the provisions of KRS 335.300 20 
to 335.399 with three (3) years of inpatient or outpatient clinical experience in 21 
psychiatric mental health practice and currently employed by a hospital or 22 
forensic psychiatric facility licensed by the Commonwealth, a psychiatric unit 23 
of a general hospital, a private agency or company engaged in providing 24 
mental health services, or a regional comprehensive care center; 25 
(g) A professional counselor credentialed under the provisions of KRS 335.500 to 26 
335.599 with three (3) years of inpatient or outpatient clinical experience in 27  UNOFFICIAL COPY  	23 RS BR 238 
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psychiatric mental health practice and currently employed by a hospital or 1 
forensic facility licensed by the Commonwealth, a psychiatric unit of a general 2 
hospital, a private agency or company engaged in providing mental health 3 
services, or a regional comprehensive care center; or 4 
(h) A physician assistant licensed under KRS 311.840 to 311.862, who meets one 5 
(1) of the following requirements: 6 
1. Provides documentation that he or she has completed a psychiatric 7 
residency program for physician assistants; 8 
2. Has completed at least one thousand (1,000) hours of clinical experience 9 
under a supervising physician, as defined by KRS 311.840, who is a 10 
psychiatrist and is certified or eligible for certification by the American 11 
Board of Psychiatry and Neurology, Inc.; 12 
3. Holds a master's degree from a physician assistant program accredited 13 
by the Accreditation Review Commission on Education for the 14 
Physician Assistant or its predecessor or successor agencies, is 15 
practicing under a supervising physician as defined by KRS 311.840, 16 
and: 17 
a. Has two (2) years of clinical experience in the assessment, 18 
evaluation, and treatment of mental disorders; or 19 
b. Has been employed by a hospital or forensic psychiatric facility 20 
licensed by the Commonwealth or a psychiatric unit of a general 21 
hospital or a private agency or company engaged in the provision 22 
of mental health services or a regional community program for 23 
mental health and individuals with an intellectual disability for at 24 
least two (2) years; or 25 
4. Holds a bachelor's degree, possesses a current physician assistant 26 
certificate issued by the board prior to July 15, 2002, is practicing under 27  UNOFFICIAL COPY  	23 RS BR 238 
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a supervising physician as defined by KRS 311.840, and: 1 
a. Has three (3) years of clinical experience in the assessment, 2 
evaluation, and treatment of mental disorders; or 3 
b. Has been employed by a hospital or forensic psychiatric facility 4 
licensed by the Commonwealth or a psychiatric unit of a general 5 
hospital or a private agency or company engaged in the provision 6 
of mental health services or a regional community program for 7 
mental health and individuals with an intellectual disability for at 8 
least three (3) years; 9 
(53) "Reasonable and prudent parent standard" has the same meaning as in 42 U.S.C. 10 
sec. 675(10); 11 
(54) "Residential treatment facility" means a facility or group home with more than eight 12 
(8) beds designated by the Department of Juvenile Justice or the cabinet for the 13 
treatment of children; 14 
(55) "Retain in custody" means, after a child has been taken into custody, the continued 15 
holding of the child by a peace officer for a period of time not to exceed twelve (12) 16 
hours when authorized by the court or the court-designated worker for the purpose 17 
of making preliminary inquiries; 18 
(56) "Risk and needs assessment" means an actuarial tool scientifically proven to 19 
identify specific factors and needs that are related to delinquent and noncriminal 20 
misconduct; 21 
(57) "School personnel" means those certified persons under the supervision of the local 22 
public or private education agency; 23 
(58) "Secretary" means the secretary of the Cabinet for Health and Family Services; 24 
(59) "Secure juvenile detention facility" means any physically secure facility used for the 25 
secure detention of children other than any facility in which adult prisoners are 26 
confined; 27  UNOFFICIAL COPY  	23 RS BR 238 
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(60) "Serious physical injury" means physical injury which creates a substantial risk of 1 
death or which causes serious and prolonged disfigurement, prolonged impairment 2 
of health, or prolonged loss or impairment of the function of any bodily member or 3 
organ; 4 
(61) "Sexual abuse" includes but is not necessarily limited to any contacts or interactions 5 
in which the parent, guardian, person in a position of authority or special trust, as 6 
defined in KRS 532.045, or other person having custodial control or supervision of 7 
the child or responsibility for his or her welfare, uses or allows, permits, or 8 
encourages the use of the child for the purposes of the sexual stimulation of the 9 
perpetrator or another person; 10 
(62) "Sexual exploitation" includes but is not limited to a situation in which a parent, 11 
guardian, person in a position of authority or special trust, as defined in KRS 12 
532.045, or other person having custodial control or supervision of a child or 13 
responsible for his or her welfare, allows, permits, or encourages the child to engage 14 
in an act which constitutes prostitution under Kentucky law; or a parent, guardian, 15 
person in a position of authority or special trust, as defined in KRS 532.045, or 16 
other person having custodial control or supervision of a child or responsible for his 17 
or her welfare, allows, permits, or encourages the child to engage in an act of 18 
obscene or pornographic photographing, filming, or depicting of a child as provided 19 
for under Kentucky law; 20 
(63) "Social service worker" means any employee of the cabinet or any private agency 21 
designated as such by the secretary of the cabinet or a social worker employed by a 22 
county or city who has been approved by the cabinet to provide, under its 23 
supervision, services to families and children; 24 
(64) "Staff secure facility for residential treatment" means any setting which assures that 25 
all entrances and exits are under the exclusive control of the facility staff, and in 26 
which a child may reside for the purpose of receiving treatment; 27  UNOFFICIAL COPY  	23 RS BR 238 
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(65) (a) "Status offense action" is any action brought in the interest of a child who is 1 
accused of committing acts, which if committed by an adult, would not be a 2 
crime. Such behavior shall not be considered criminal or delinquent and such 3 
children shall be termed status offenders. Status offenses shall include: 4 
1. Beyond the control of school or beyond the control of parents; 5 
2. Habitual runaway; 6 
3. Habitual truant;[ and] 7 
4. Alcohol offenses as provided in KRS 244.085; and 8 
5. Cannabis offenses as provided in Section 13 of this Act. 9 
(b) Status offenses shall not include violations of state or local ordinances which 10 
may apply to children such as a violation of curfew; 11 
(66) "Take into custody" means the procedure by which a peace officer or other 12 
authorized person initially assumes custody of a child. A child may be taken into 13 
custody for a period of time not to exceed two (2) hours; 14 
(67) "Transitional living support" means all benefits to which an eligible youth is 15 
entitled upon being granted extended or reinstated commitment to the cabinet by the 16 
court; 17 
(68) "Transition plan" means a plan that is personalized at the direction of the youth that: 18 
(a) Includes specific options on housing, health insurance, education, local 19 
opportunities for mentors and continuing support services, and workforce 20 
supports and employment services; and 21 
(b) Is as detailed as the youth may elect; 22 
(69) "Valid court order" means a court order issued by a judge to a child alleged or found 23 
to be a status offender: 24 
(a) Who was brought before the court and made subject to the order; 25 
(b) Whose future conduct was regulated by the order; 26 
(c) Who was given written and verbal warning of the consequences of the 27  UNOFFICIAL COPY  	23 RS BR 238 
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violation of the order at the time the order was issued and whose attorney or 1 
parent or legal guardian was also provided with a written notice of the 2 
consequences of violation of the order, which notification is reflected in the 3 
record of the court proceedings; and 4 
(d) Who received, before the issuance of the order, the full due process rights 5 
guaranteed by the Constitution of the United States; 6 
(70) "Violation" means any offense, other than a traffic infraction, for which a sentence 7 
of a fine only can be imposed; 8 
(71) "Youth alternative center" means a nonsecure facility, approved by the Department 9 
of Juvenile Justice, for the detention of juveniles, both prior to adjudication and 10 
after adjudication, which meets the criteria specified in KRS 15A.320; and 11 
(72) "Youthful offender" means any person regardless of age, transferred to Circuit 12 
Court under the provisions of KRS Chapter 635 or 640 and who is subsequently 13 
convicted in Circuit Court. 14 
Section 35.   KRS 12.020 is amended to read as follows: 15 
Departments, program cabinets and their departments, and the respective major 16 
administrative bodies that they include are enumerated in this section. It is not intended 17 
that this enumeration of administrative bodies be all-inclusive. Every authority, board, 18 
bureau, interstate compact, commission, committee, conference, council, office, or any 19 
other form of organization shall be included in or attached to the department or program 20 
cabinet in which they are included or to which they are attached by statute or statutorily 21 
authorized executive order; except in the case of the Personnel Board and where the 22 
attached department or administrative body is headed by a constitutionally elected officer, 23 
the attachment shall be solely for the purpose of dissemination of information and 24 
coordination of activities and shall not include any authority over the functions, 25 
personnel, funds, equipment, facilities, or records of the department or administrative 26 
body. 27  UNOFFICIAL COPY  	23 RS BR 238 
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I. Cabinet for General Government - Departments headed by elected officers: 1 
(1) The Governor. 2 
(2) Lieutenant Governor. 3 
(3) Department of State. 4 
(a) Secretary of State. 5 
(b) Board of Elections. 6 
(c) Registry of Election Finance. 7 
(4) Department of Law. 8 
(a) Attorney General. 9 
(5) Department of the Treasury. 10 
(a) Treasurer. 11 
(6) Department of Agriculture. 12 
(a) Commissioner of Agriculture. 13 
(b) Agricultural Development Board. 14 
(c) Kentucky Agricultural Finance Corporation. 15 
(7) Auditor of Public Accounts. 16 
II. Program cabinets headed by appointed officers: 17 
(1) Justice and Public Safety Cabinet: 18 
(a) Department of Kentucky State Police. 19 
1. Office of Administrative Services. 20 
a. Division of Operational Support. 21 
b. Division of Management Services. 22 
2. Office of Operations. 23 
a. Division of West Troops. 24 
b. Division of East Troops. 25 
c. Division of Special Enforcement. 26 
d. Division of Commercial Vehicle Enforcement. 27  UNOFFICIAL COPY  	23 RS BR 238 
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3. Office of Technical Services. 1 
a. Division of Forensic Sciences. 2 
b. Division of Information Technology. 3 
(b) Department of Criminal Justice Training. 4 
(c) Department of Corrections. 5 
(d) Department of Juvenile Justice. 6 
(e) Office of the Secretary. 7 
(f) Office of Drug Control Policy. 8 
(g) Office of Legal Services. 9 
(h) Office of the Kentucky State Medical Examiner. 10 
(i) Parole Board. 11 
(j) Kentucky State Corrections Commission. 12 
(k) Office of Legislative and Intergovernmental Services. 13 
(l) Office of Human Resource Management. 14 
1. Division of Human Resource Administration. 15 
2. Division of Employee Management. 16 
(m) Department of Public Advocacy. 17 
(n) Office of Communications. 18 
1. Information Technology Services Division. 19 
(o) Office of Financial Management Services. 20 
1. Division of Financial Management. 21 
(p) Grants Management Division. 22 
(2) Energy and Environment Cabinet: 23 
(a) Office of the Secretary. 24 
1. Office of Legislative and Intergovernmental Affairs. 25 
2. Office of Legal Services. 26 
a. Legal Division I. 27  UNOFFICIAL COPY  	23 RS BR 238 
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b. Legal Division II. 1 
3. Office of Administrative Hearings. 2 
4. Office of Communication. 3 
5. Mine Safety Review Commission. 4 
6. Office of Kentucky Nature Preserves. 5 
7. Kentucky Public Service Commission. 6 
(b) Department for Environmental Protection. 7 
1. Office of the Commissioner. 8 
2. Division for Air Quality. 9 
3. Division of Water. 10 
4. Division of Environmental Program Support. 11 
5. Division of Waste Management. 12 
6. Division of Enforcement. 13 
7. Division of Compliance Assistance. 14 
(c) Department for Natural Resources. 15 
1. Office of the Commissioner. 16 
2. Division of Mine Permits. 17 
3. Division of Mine Reclamation and Enforcement. 18 
4. Division of Abandoned Mine Lands. 19 
5. Division of Oil and Gas. 20 
6. Division of Mine Safety. 21 
7. Division of Forestry. 22 
8. Division of Conservation. 23 
9. Office of the Reclamation Guaranty Fund. 24 
(d) Office of Energy Policy. 25 
1. Division of Energy Assistance. 26 
(e) Office of Administrative Services. 27  UNOFFICIAL COPY  	23 RS BR 238 
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1. Division of Human Resources Management. 1 
2. Division of Financial Management. 2 
3. Division of Information Services. 3 
(3) Public Protection Cabinet. 4 
(a) Office of the Secretary. 5 
1. Office of Communications and Public Outreach. 6 
2. Office of Legal Services. 7 
a. Insurance Legal Division. 8 
b. Charitable Gaming Legal Division. 9 
c. Alcoholic Beverage Control Legal Division. 10 
d. Housing, Buildings and Construction Legal Division. 11 
e. Financial Institutions Legal Division. 12 
f. Professional Licensing Legal Division. 13 
3. Office of Administrative Hearings. 14 
4. Office of Administrative Services. 15 
a. Division of Human Resources. 16 
b. Division of Fiscal Responsibility. 17 
(b) Office of Claims and Appeals. 18 
1. Board of Tax Appeals. 19 
2. Board of Claims. 20 
3. Crime Victims Compensation Board. 21 
(c) Kentucky Boxing and Wrestling Commission. 22 
(d) Kentucky Horse Racing Commission. 23 
1. Office of Executive Director. 24 
a. Division of Pari-mutuel Wagering and Compliance. 25 
b. Division of Stewards. 26 
c. Division of Licensing. 27  UNOFFICIAL COPY  	23 RS BR 238 
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d. Division of Enforcement. 1 
e. Division of Incentives and Development. 2 
f. Division of Veterinary Services. 3 
(e) Department of Alcoholic Beverage Control. 4 
1. Division of Distilled Spirits. 5 
2. Division of Malt Beverages. 6 
3. Division of 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 238 
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(j) Department of Professional Licensing. 1 
1. Real Estate Authority. 2 
(k) Cannabis Control Board. 3 
(l) Department of Cannabis Control. 4 
(m) Social Impact Council. 5 
(4) Transportation Cabinet: 6 
(a) Department of Highways. 7 
1. Office of Project Development. 8 
2. Office of Project Delivery and Preservation. 9 
3. Office of Highway Safety. 10 
4. Highway District Offices One through Twelve. 11 
(b) Department of Vehicle Regulation. 12 
(c) Department of Aviation. 13 
(d) Department of Rural and Municipal Aid. 14 
1. Office of Local Programs. 15 
2. Office of Rural and Secondary Roads. 16 
(e) Office of the Secretary. 17 
1. Office of Public Affairs. 18 
2. Office for Civil Rights and Small Business Development. 19 
3. Office of Budget and Fiscal Management. 20 
4. Office of Inspector General. 21 
5. Secretary's Office of Safety. 22 
(f) Office of Support Services. 23 
(g) Office of Transportation Delivery. 24 
(h) Office of Audits. 25 
(i) Office of Human Resource Management. 26 
(j) Office of Information Technology. 27  UNOFFICIAL COPY  	23 RS BR 238 
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(k) Office of Legal Services. 1 
(5) Cabinet for Economic Development: 2 
(a) Office of the Secretary. 3 
1. Office of Legal Services. 4 
2. Department for Business Development. 5 
3. Department for Financial Services. 6 
a. Kentucky Economic Development Finance Authority. 7 
b. Finance and Personnel Division. 8 
c. IT and Resource Management Division. 9 
d. Compliance Division. 10 
e. Incentive Administration Division. 11 
f. Bluegrass State Skills Corporation. 12 
4. Office of Marketing and Public Affairs. 13 
a. Communications Division. 14 
b. Graphics Design Division. 15 
5. Office of Workforce, Community Development, and Research. 16 
6. Office of Entrepreneurship and Small Business Innovation. 17 
a. Commission on Small Business Innovation and Advocacy. 18 
(6) Cabinet for Health and Family Services: 19 
(a) Office of the Secretary. 20 
1. Office of the Ombudsman and Administrative Review. 21 
2. Office of Public Affairs. 22 
3. Office of Legal Services. 23 
4. Office of Inspector General. 24 
5. Office of Human Resource Management. 25 
6. Office of Finance and Budget. 26 
7. Office of Legislative and Regulatory Affairs. 27  UNOFFICIAL COPY  	23 RS BR 238 
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8. Office of Administrative Services. 1 
9. Office of Application Technology Services. 2 
10. Office of Data Analytics. 3 
(b) Department for Public Health. 4 
(c) Department for Medicaid Services. 5 
(d) Department for Behavioral Health, Developmental and Intellectual 6 
Disabilities. 7 
(e) Department for Aging and Independent Living. 8 
(f) Department for Community Based Services. 9 
(g) Department for Income Support. 10 
(h) Department for Family Resource Centers and Volunteer Services. 11 
(i) Office for Children with Special Health Care Needs. 12 
(7) Finance and Administration Cabinet: 13 
(a) Office of the Secretary. 14 
(b) Office of the Inspector General. 15 
(c) Office of Legislative and Intergovernmental Affairs. 16 
(d) Office of General Counsel. 17 
(e) Office of the Controller. 18 
(f) Office of Administrative Services. 19 
(g) Office of Policy and Audit. 20 
(h) Department for Facilities and Support Services. 21 
(i) Department of Revenue. 22 
(j) Commonwealth Office of Technology. 23 
(k) State Property and Buildings Commission. 24 
(l) Office of Equal Employment Opportunity and Contract Compliance. 25 
(m) Kentucky Employees Retirement Systems. 26 
(n) Commonwealth Credit Union. 27  UNOFFICIAL COPY  	23 RS BR 238 
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(o) State Investment Commission. 1 
(p) Kentucky Housing Corporation. 2 
(q) Kentucky Local Correctional Facilities Construction Authority. 3 
(r) Kentucky Turnpike Authority. 4 
(s) Historic Properties Advisory Commission. 5 
(t) Kentucky Higher Education Assistance Authority. 6 
(u) Kentucky River Authority. 7 
(v) Kentucky Teachers' Retirement System Board of Trustees. 8 
(w) Executive Branch Ethics Commission. 9 
(x) Office of Fleet Management. 10 
(8) Tourism, Arts and Heritage Cabinet: 11 
(a) Kentucky Department of Tourism. 12 
1. Division of Tourism Services. 13 
2. Division of Marketing and Administration. 14 
3. Division of Communications and Promotions. 15 
(b) Kentucky Department of Parks. 16 
1. Division of Information Technology. 17 
2. Division of Human Resources. 18 
3. Division of Financial Operations. 19 
4. Division of Purchasing. 20 
5. Division of Facilities. 21 
6. Division of Park Operations. 22 
7. Division of Sales, Marketing, and Customer Service. 23 
8. Division of Engagement. 24 
9. Division of Food Services. 25 
10. Division of Rangers. 26 
(c) Department of Fish and Wildlife Resources. 27  UNOFFICIAL COPY  	23 RS BR 238 
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1. Division of Law Enforcement. 1 
2. Division of Administrative Services. 2 
3. Division of Engineering, Infrastructure, and Technology. 3 
4. Division of Fisheries. 4 
5. Division of Information and Education. 5 
6. Division of Wildlife. 6 
7. Division of Marketing. 7 
(d) Kentucky Horse Park. 8 
1. Division of Support Services. 9 
2. Division of Buildings and Grounds. 10 
3. Division of Operational Services. 11 
(e) Kentucky State Fair Board. 12 
1. Office of Administrative and Information Technology Services. 13 
2. Office of Human Resources and Access Control. 14 
3. Division of Expositions. 15 
4. Division of Kentucky Exposition Center Operations. 16 
5. Division of Kentucky International Convention Center. 17 
6. Division of Public Relations and Media. 18 
7. Division of Venue Services. 19 
8. Division of Personnel Management and Staff Development. 20 
9. Division of Sales. 21 
10. Division of Security and Traffic Control. 22 
11. Division of Information Technology. 23 
12. Division of the Louisville Arena. 24 
13. Division of Fiscal and Contract Management. 25 
14. Division of Access Control. 26 
(f) Office of the Secretary. 27  UNOFFICIAL COPY  	23 RS BR 238 
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1. Office of Finance. 1 
2. Office of Government Relations and Administration. 2 
(g) Office of Legal Affairs. 3 
(h) Office of Human Resources. 4 
(i) Office of Public Affairs and Constituent Services. 5 
(j) Office of Arts and Cultural Heritage. 6 
(k) Kentucky African-American Heritage Commission. 7 
(l) Kentucky Foundation for the Arts. 8 
(m) Kentucky Humanities Council. 9 
(n) Kentucky Heritage Council. 10 
(o) Kentucky Arts Council. 11 
(p) Kentucky Historical Society. 12 
1. Division of Museums. 13 
2. Division of Oral History and Educational Outreach. 14 
3. Division of Research and Publications. 15 
4. Division of Administration. 16 
(q) Kentucky Center for the Arts. 17 
1. Division of Governor's School for the Arts. 18 
(r) Kentucky Artisans Center at Berea. 19 
(s) Northern Kentucky Convention Center. 20 
(t) Eastern Kentucky Exposition Center. 21 
(9) Personnel Cabinet: 22 
(a) Office of the Secretary. 23 
(b) Department of Human Resources Administration. 24 
(c) Office of Employee Relations. 25 
(d) Kentucky Public Employees Deferred Compensation Authority. 26 
(e) Office of Administrative Services. 27  UNOFFICIAL COPY  	23 RS BR 238 
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(f) Office of Legal Services. 1 
(g) Governmental Services Center. 2 
(h) Department of Employee Insurance. 3 
(i) Office of Diversity, Equality, and Training. 4 
(j) Office of Public Affairs. 5 
(10) Education and Labor Cabinet: 6 
(a) Office of the Secretary. 7 
1. Office of Legal Services. 8 
a. Workplace Standards Legal Division. 9 
b. Workers' Claims Legal Division. 10 
c. Workforce Development Legal Division. 11 
2. Office of Administrative Services. 12 
a. Division of Human Resources Management. 13 
b. Division of Fiscal Management. 14 
c. Division of Operations and Support Services. 15 
3. Office of Technology Services. 16 
a. Division of Information Technology Services. 17 
4. Office of Policy and Audit. 18 
5. Office of Legislative Services. 19 
6. Office of Communications. 20 
7. Office of the Kentucky Center for Statistics. 21 
8. Board of the Kentucky Center for Statistics. 22 
9. Early Childhood Advisory Council. 23 
10. Governors' Scholars Program. 24 
11. Governor's School for Entrepreneurs Program. 25 
12. Foundation for Adult Education. 26 
(b) Department of Education. 27  UNOFFICIAL COPY  	23 RS BR 238 
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1. Kentucky Board of Education. 1 
2. Kentucky Technical Education Personnel Board. 2 
3. Education Professional Standards Board. 3 
(c) Board of Directors for the Center for School Safety. 4 
(d) Department for Libraries and Archives. 5 
(e) Kentucky Environmental Education Council. 6 
(f) Kentucky Educational Television. 7 
(g) Kentucky Commission on the Deaf and Hard of Hearing. 8 
(h) Department of Workforce Development. 9 
1. Career Development Office. 10 
2. Office of Vocational Rehabilitation. 11 
a. Division of Kentucky Business Enterprise. 12 
b. Division of the Carl D. Perkins Vocational Training Center. 13 
c. Division of Blind Services. 14 
d. Division of Field Services. 15 
e. Statewide Council for Vocational Rehabilitation. 16 
f. Employment First Council. 17 
3. Office of Employer and Apprenticeship Services. 18 
a. Division of Apprenticeship. 19 
4. Kentucky Apprenticeship Council. 20 
5. Division of Technical Assistance. 21 
6. Office of Adult Education. 22 
7. Office of the Kentucky Workforce Innovation Board. 23 
(i) Department of Workplace Standards. 24 
1. Division of Occupational Safety and Health Compliance. 25 
2. Division of Occupational Safety and Health Education and 26 
Training. 27  UNOFFICIAL COPY  	23 RS BR 238 
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3. Division of Wages and Hours. 1 
(j) Office of Unemployment Insurance. 2 
(k) Kentucky Unemployment Insurance Commission. 3 
(l) Department of Workers' Claims. 4 
1. Division of Workers' Compensation Funds. 5 
2. Office of Administrative Law Judges. 6 
3. Division of Claims Processing. 7 
4. Division of Security and Compliance. 8 
5. Division of Specialist and Medical Services. 9 
6. Workers' Compensation Board. 10 
(m) Workers' Compensation Funding Commission. 11 
(n) Kentucky Occupational Safety and Health Standards Board. 12 
(o) State Labor Relations Board. 13 
(p) Employers' Mutual Insurance Authority. 14 
(q) Kentucky Occupational Safety and Health Review Commission. 15 
(r) Workers' Compensation Nominating Committee. 16 
(s) Office of Educational Programs. 17 
(t) Kentucky Workforce Innovation Board. 18 
(u) Kentucky Commission on Proprietary Education. 19 
(v) Kentucky Work Ready Skills Advisory Committee. 20 
(w) Kentucky Geographic Education Board. 21 
III. Other departments headed by appointed officers: 22 
(1) Council on Postsecondary Education. 23 
(2) Department of Military Affairs. 24 
(3) Department for Local Government. 25 
(4) Kentucky Commission on Human Rights. 26 
(5) Kentucky Commission on Women. 27  UNOFFICIAL COPY  	23 RS BR 238 
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(6) Department of Veterans' Affairs. 1 
(7) Kentucky Commission on Military Affairs. 2 
(8) Office of Minority Empowerment. 3 
(9) Governor's Council on Wellness and Physical Activity. 4 
(10) Kentucky Communications Network Authority. 5 
Section 36.   For the initial appointments of the seven members of the Cannabis 6 
Control Board established in Section 3 of this Act, three members shall serve three-year 7 
terms, two members shall serve two-year terms, and two members shall serve one-year 8 
terms. 9 
Section 37.   For the initial appointments of the thirteen at-large citizen members 10 
of the Social Impact Council established in Section 16 of this Act, five appointments shall 11 
be for four-year terms, four appointments shall be for three-year terms, and four 12 
appointments shall be for two-year terms. 13 
Section 38.   Cannabis may first be legally sold for adult use and medical use to 14 
consumers in the Commonwealth beginning July 1, 2025. Since cultivation and retail 15 
operations relating to cannabis are required before legal sales may begin, the excise tax 16 
imposed in Section 19 of this Act shall apply on or after July 1, 2024. This section shall 17 
not be construed to delay or otherwise modify the effective date of Sections 1 to 35 of this 18 
Act. 19