AN ACT relating to hemp products and declaring an emergency.

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AN ACT relating to hemp products and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 217 IS CREATED TO 3
READ AS FOLLOWS: 4
As used in this chapter, unless the context requires otherwise: 5
(1) "Cannabinoid" means a compound found in the hemp plant Cannabis sativa L. 6
from a United States Departme nt of Agriculture sanctioned domestic hemp 7
production program or a Kentucky sanctioned hemp -derived cannabinoid 8
product program; 9
(2) "Cannabis": 10
(a) Means marijuana as defined in Section 7 of this Act when cultivated, 11
harvested, processed, produced, transported, dispensed, distributed, sold, 12
possessed, or used in accordance with this chapter; 13
(b) Includes cannabis products; and 14
(c) Does not include: 15
1. Industrial hemp or industrial hemp products; 16
2. Hemp or hemp-derived cannabinoids; and 17
3. Medicinal cannabis as defined in Section 8 of this Act; 18
(3) "Cannabis-infused beverage": 19
(a) Means a properly permitted adult -use cannabinoid liquid product intended 20
for human consumption that has intoxicating properties that change the 21
function of the nervous system and results in alterations of perception, 22
cognition, or behavior; 23
(b) Shall not contain more than five (5) milligrams of adult -use cannabinoids 24
per twelve (12) ounce serving, within a twenty percent (20%) variance or a 25
variance established by the department, whichever is lower; and 26
(c) Shall not include: 27
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1. Medicinal cannabis defined in Section 8 of this Act 1
2. Any type of hemp tincture; and 2
3. Any product containing solely nonintoxicating cannabinoids; 3
(4) "Department" means the Department for Public Health; 4
(5) "Final hemp-derived cannabinoid product": 5
(a) Means any final product derived from hemp that: 6
1. Contains cannabinoids in any form; 7
2. Is intende d for human or animal use through any means of 8
application or administration, such as inhalation, ingestion, or topical 9
application; and 10
(b) Shall not include: 11
1. Hemp cigarettes; 12
2. Hemp cigars; 13
3. Chew, dip, or other smokeless material consisting of hemp leaf 14
material or hemp floral material; and 15
4. Hemp leaf material or floral material teas; 16
(6) "Hemp": 17
(a) Means the plant Cannabis sativa L. and any part of that plant, including the 18
seeds thereof and all derivatives, extracts, cannabinoids, isomers, acid s, 19
salts, and salts of isomers, whether growing or not, with a total 20
tetrahydrocannabinols concentration, including tetrahydrocannabinolic 21
acid, concentration of not more than three -tenths of one percent (0.3%) on 22
a dry weight basis; and 23
(b) Does not include medicinal cannabis as defined in Section 8 of this Act; 24
(7) "Hemp-derived cannabinoid product" means any intermediate hemp -derived 25
cannabinoid product or final hemp-derived cannabinoid product; 26
(8) "Hemp products" or "industrial hemp products": 27
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(a) Means products derived from, or made by, processing hemp plants or plant 1
parts; and 2
(b) Does not include medicinal cannabis products as defined in Section 8 of 3
this Act; 4
(9) "Industrial hemp" means hemp: 5
(a) Grown for the use of the stalk of the plant, fiber produced from such a stalk, 6
or any other non -cannabinoid derivative, mixture, preparation, or 7
manufacture of such a stalk; 8
(b) Grown for the use of the whole grain, oil, cake, nut, hull, or any other no n-9
cannabinoid compound, derivative, mixture, preparation, or manufacture of 10
the seeds of such plant; 11
(c) Grown for purposes of producing microgreens or other edible hemp leaf 12
products intended for human consumption that are derived from an 13
immature hemp pl ant that is grown from seeds that do not exceed a total 14
tetrahydrocannabinols concentration, including tetrahydrocannabinolic 15
acid, of three -tenths of one percent (0.3%) in the plant on a dry weight 16
basis; 17
(d) That does not enter the stream of commerce and is intended to support 18
hemp research at an institution of higher education or an independent 19
research institute; or 20
(e) Grown for the use of a viable seed of the plant produced solely for the 21
production or manufacture of any material described in paragrap hs (a) 22
through (d) of this subsection; 23
(10) "Intermediate hemp -derived product" means a hemp -derived cannabinoid 24
product that is: 25
(a) Not yet in the final form or preparation marketed or intended to be used or 26
consumed by a human or animal; or 27
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(b) A powder , liquid, tablet, oil, or other product form which is intended or 1
marketed to be mixed, dissolved, formulated, or otherwise added to or 2
prepared with or into any other substance prior to administration or 3
consumption; 4
(11) "Kentucky sanctioned hemp -derived cannabinoid product program" means a 5
state regulatory framework under the Department for Public Health or the 6
Department of Alcoholic Beverage Control that oversees the legal processing, 7
manufacturing, testing, distribution, and retail sales of hemp -derived 8
cannabinoid products; 9
(12) "License" means any license issued under this chapter; 10
(13) "Licensee" means any holder of a license issued by the department under this 11
chapter; 12
(14) "Marketing" means promoting or selling a product within the Commonwealth, in 13
another state, or outside of the United States. Marketing includes efforts to 14
advertise and gather information about the needs or preferences of potential 15
consumers or suppliers, but shall not include these actions if they are part of 16
legitimate scholarly research or studies; 17
(15) "Premises" means the land, buildings, and vehicles in which any business 18
regulated by this chapter is operated or performed; 19
(16) "Processing" means converting an agricultural commodity into a marketable 20
form; 21
(17) "THC" means t otal tetrahydrocannabinol, Delta -8 tetrahydrocannabinol, Delta -22
10 tetrahydrocannabinol, and the optical isomer of these substances; and any 23
other cannabinoids that have similar effects, or are marketed to have similar 24
effects, on humans or animals as a tet rahydrocannabinol, as determined by the 25
department; 26
(18) "Total Tetrahydrocannabinol" means the sum of delta -9 tetrahydrocannabinol 27
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(delta-9 THC) and 87.7% of the delta -9 tetrahydrocannabinolic acid (THCA) 1
concentration; and 2
(19) "University" means an accr edited institution of higher education located in the 3
Commonwealth. 4
SECTION 2. A NEW SECTION OF KRS CHAPTER 217 IS CREATED TO 5
READ AS FOLLOWS: 6
(1) As used in this section: 7
(a) "Certified reference materials" means highly accurate, stable, and 8
homogenous substances with documented traceability to SI units, used to 9
evaluate methods and to ensure measurement quality; 10
(b) "Department" means the Department for Public Health; 11
(c) "Fit-for-purpose" means a validated test procedu re that is suitable, 12
functional, and effective for its intended use and meets required standards; 13
(d) "Proficiency test" means a test established to evaluate the ability of a 14
laboratory to perform test procedures required under this section by 15
comparing each laboratory’s results against a set of standards; 16
(e) "Proficiency test sample" means an unknown substance sent by an 17
approved, external provider to a laboratory for analysis to evaluate 18
accuracy, precision, and performance. Proficiency test samples are 19
submitted blindly for testing using the same methods as are used for 20
regular, routine samples to assess the ability of the laboratory to produce 21
valid results; and 22
(f) "Third-party laboratory" means an independent, impartial testing entity not 23
affiliated with a manufacturer, wholesaler, retailer, or any other seller or 24
buyer of a hemp-derived cannabinoid product. 25
(2) The department shall work to improve testing procedures, proficiency testing, and 26
approvals of third -party laboratories who seek to test registered hemp -derived 27
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cannabinoid products for sale in Kentucky. 1
(3) Third-party laboratories certified to test registered hemp -derived cannabinoid 2
products shall meet the following requirements: 3
(a) Accreditation under ISO/IEC 17025:2017 standard by an ISO -certified 4
accreditation body, including accreditation for each method used for testing 5
hemp-derived cannabinoid products; 6
(b) Comprehensive quality systems and validated methods for testing hemp -7
derived cannabinoids using both Gas Chromatography -Mass Spectrometry 8
(GC-MS/ or GC -MS/MS) and High -Performance Liquid Chromatography 9
(HPLC-PDA or LC-MS/MS) systems; 10
(c) Establishing standard operating procedures and methodologies for testing 11
products containing hemp-derived cannabinoids that are fit-for-purpose; 12
(d) Utilizing fit -for-purpose testing for plant material, oils, edibles, beverages, 13
and vaporizable products; 14
(e) Participating in an accredited proficiency testing program under ISO/IEC 15
17043; and 16
(f) Meeting other standards necessary to fulfill the requirements of this section. 17
(4) (a) The department shall establish a proficiency test for demonstrating 18
proficiency in testing hemp -derived cannabinoids for the purpose of 19
evaluating and approving third -party laboratories that seek to conduct 20
compliance testing of hemp -derived cannabinoid products registered in the 21
Commonwealth. 22
(b) The department shall establish the proficiency test. The department shall 23
utilize certified refe rence materials to create a reference product for 24
compliance testing. The reference product shall include the following 25
cannabinoids: 26
1. Cannabidiol (CBD) (CAS # 13956-29-1); 27
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2. Cannabinol (CBN) (CAS # 521-35-7); 1
3. Delta-9-tetrahydrocannabinolic acid (THCA) (CAS # 23978-85-0); 2
4. Delta-9-tetrahydrocannabinol (delta-9-THC) (CAS # 1972-08-3); 3
5. Delta-8-tetrahydrocannabinol (delta-8-THC) (CAS # 5757-75-5); 4
6. Hexahydrocannabinol (HHC) (CAS # 36403 -90-4 for 9(R) -HHC and 5
36403-91-5 for 9(S)-HHC); 6
7. Delta-8-iso-tetrahydrocannabinol (delta-8-iso-THC) (CAS # 23050-47-7
7); 8
8. Delta-4,8-iso-tetrahydrocannabinol (delta 4(8) -iso-THC) (CAS # 9
23050-59-1); 10
9. 9(R) Hexahydrocannabinol (9(R)-HHC) (CAS # 23050-47-7); and 11
10. 9(S) Hexahydrocannabinol (9(S)-HHC) (CAS # 36403-91-5). 12
(c) The proficiency test samples shall be of known concentration, preparation 13
documented, and maintained by the department for purposes of proficiency 14
testing and periodic validation. 15
(5) Upon establishing the proficiency test, the department shall establish an approval 16
process for third -party laboratories seeking to conduct testing of hemp -derived 17
cannabinoid products intended for registration in the Commonwealth in 18
accordance with the following: 19
(a) The department shall provide proficiency test mat erials to any third -party 20
laboratory that seeks approval to conduct cannabinoid testing for hemp -21
derived cannabinoid products intended for registration in Kentucky; 22
(b) Participating third -party laboratories shall test each proficiency sample 23
using the validated methods and analytical procedures that are within their 24
scope of accreditation as specified on their accreditation certificate and 25
submit their results to the department within a timeframe established by the 26
department; 27
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(c) The department shall comp are the proficiency test results submitted by 1
third-party laboratories to target values and to the results derived from the 2
same reference materials by other certified laboratories. The results from 3
each applicant laboratory for each analyte shall be assigned a z-score; 4
(d) 1. A third -party laboratory shall be approved for inclusion on the 5
Commonwealth’s list of approved laboratories if its results fall within 6
an acceptable range established by the department through the 7
promulgation of administrative regulations. 8
2. To be eligible for approval under this section, a third -party laboratory 9
shall maintain accreditation under ISO/IEC 17025:2017 or its 10
successor standard and shall provide proof of such accreditation to the 11
department. 12
3. The department may establish additional requir ements for third -party 13
laboratories seeking approval within the Commonwealth through an 14
administrative regulation promulgated in accordance with KRS 15
Chapter 13A; and 16
(e) The department shall create and maintain a publicly available list of 17
approved laboratories that meet requirements established under this section. 18
(6) Upon establishment of the approved laboratory list: 19
(a) Any person or entity registering hemp -derived cannabinoid -containing 20
products in Kentucky shall utilize a laboratory included on the de partment's 21
approved laboratory list; and 22
(b) All previously registered products containing cannabinoids shall be re -23
registered with the department to continue selling in the Commonwealth. 24
Any registration fees associated with this re -registration requirement shall 25
be waived. 26
(7) The department shall promulgate administrative regulations in accordance with 27
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KRS Chapter 13A to implement and enforce this section, including but not 1
limited to: 2
(a) Defining acceptable variance ranges for proficiency testing; 3
(b) Establishing timelines for laboratory participation and review; 4
(c) Establishing procedures for adding or removing laboratories from the 5
approved list; 6
(d) Specifying recordkeeping and reporting requirements; and 7
(e) Determining a timeframe for allowing re gistered businesses to re -register 8
products using the approved laboratories for retesting certified products to 9
assure conformance to hemp-derived cannabinoid standards. 10
SECTION 3. A NEW SECTION OF KRS CHAPTER 217 IS CRE ATED TO 11
READ AS FOLLOWS: 12
(1) Notwithstanding any provision of law to the contrary, and except as provided in 13
subsection (2) of this section: 14
(a) The use of hemp-derived cannabinoid products shall be considered lawful if 15
done in accordance with: 16
1. This cha pter and any administrative regulations promulgated 17
thereunder; and 18
2. Any administrative regulations promulgated by the Cabinet for Health 19
and Family Services, Alcoholic Beverage Control, or the Kentucky 20
Department of Agriculture; 21
(b) The acquisition, blending, cultivation, delivery, distribution, manufacturing, 22
manipulation, packaging for sale, preparation, possession, sale, testing, 23
transportation, or transfer of hemp -derived cannabinoid products or hemp -24
derived cannabinoid product accessories by a lice nsed business or licensed 25
business agent shall be considered lawful if done in accordance with this 26
chapter and any administrative regulations promulgated thereunder; 27
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(c) An attorney shall not be subject, under the laws of the Commonwealth, to 1
arrest, pros ecution, or penalty in any manner, or denied any right or 2
privilege, including but not limited to a civil penalty or disciplinary action 3
by the Kentucky Court of Justice, Kentucky Bar Association, or by any 4
other professional licensing board, solely for pr oviding an individual or 5
hemp-derived cannabinoid business with legal assistance related to activity 6
that is no longer subject to criminal penalties under state law pursuant to 7
this chapter; and 8
(d) A person shall not be subject, under the laws of the Comm onwealth, to 9
arrest, prosecution, or penalty in any manner, or denied any right or 10
privilege, including but not limited to a civil penalty or disciplinary action 11
by an occupational or professional licensing board, solely for providing 12
assistance or service s, including but not limited to accounting services, 13
financial services, security services, or business consulting services, to any 14
individual or hemp -derived cannabinoid business related to activity that is 15
no longer subject to criminal penalties under st ate law pursuant to this 16
chapter. 17
(2) Subsection (1) of this section shall not be construed or interpreted to prohibit the 18
arrest, prosecution, or imposition of any other penalty arising from but not 19
limited to breach of contract, breach of fiduciary duty, negligence, or engaging in 20
criminal activity that would constitute a felony or misdemeanor. 21
Section 4. KRS 260.8635 is repealed, reenacted as a new section of KRS 22
Chapter 217, and amended to read as follows: 23
(1) As used in this section, "location" means a single contiguous parcel of land and any 24
buildings situated thereon. 25
(2) A[No] person shall not move or transport, or aid or abet another person in moving 26
or transporting, any intermediate hemp-derived cannabinoid product[hemp extract 27
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material] having a[ delta-9] tetrahydrocannabinol concentration in excess of three -1
tenths of one percent (0.3%): 2
(a) From any location outside the Commonwealth to any location within the 3
Commonwealth; 4
(b) From any location inside the Commonwealth to any location outside the 5
Commonwealth;[ or] 6
(c) Except as provided in subsection (3) of this section, from any location ins ide 7
the Commonwealth to any other location inside the Commonwealth; or 8
(d) Except as provided in subsection (4) of this section. 9
(3) A[ licensed] processor or manufacturer licensed by the Department for Public 10
Health, or a person acting as a representative of a licensed processor or 11
manufacturer, may move or transport intermediate hemp -derived cannabinoid 12
product[hemp extract material] having a [ delta -9] tetrahydrocannabinol 13
concentration in excess of three -tenths of one percent (0.3%) from one (1) licensed 14
processing location in the Commonwealth to another licensed [ processing] location 15
in the Commonwealth, provided that: 16
(a) The intermediate hemp-derived cannabinoid products[hemp extract material] 17
shall move directly from one (1) licensed[ processing] location to another; and 18
(b) The licensee[licensed processor] shall provide written notice to the 19
department of the planned movement at least twenty -four (24) hours in 20
advance to include the following information: 21
1. The date of the movement; 22
2. The address of the origin; 23
3. The address of the destination; and 24
4. Other information required by the department. 25
(4) A licensed processor or manufacturer, or a person acting as a representative of a 26
licensed processor or manufacturer, may move or transport intermediat e hemp-27
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derived cannabinoid products having a tetrahydrocannabinol concentration in 1
excess of three -tenths of one percent (0.3%) from one (1) licensed location to 2
another licensed location if: 3
(a) The intermediate hemp -derived cannabinoid products move dire ctly from 4
one (1) licensed location to another; 5
(b) The licensee provides written notice to the department of the planned 6
movement at least twenty -four (24) hours in advance to include the 7
following information: 8
1. The date of the movement; 9
2. The address of the origin; 10
3. The address of the destination; and 11
4. Other information required by the department; and 12
(c) The intermediate hemp -derived cannabinoid products are transported from 13
the Commonwealth to a license holder in another state where that state 14
allows the transport of the intermediate hemp -derived cannabinoid products 15
from another state and the transportation is not transported through a state 16
that does not permit such transport. 17
Section 5. KRS 138.870 is amended to read as follows: 18
As used in KRS 138.870 to 138.889, unless the context requires otherwise: 19
(1) "Controlled substance" means any controlled substance, whether real or counterfeit, 20
as defined in KRS 218A.010 or any regulation pr omulgated thereunder, except that 21
it shall not include marijuana , hemp-derived cannabinoid products as defined in 22
Section 1 of this Act, or medicinal cannabis; 23
(2) "Dosage unit" means a tablet, capsule, vial, or ampule of a controlled substance or, 24
in case s of mass volume or diluted quantities, the proper dose or quantity of a 25
controlled substance to be taken all at one (1) time or in fractional amounts within a 26
given period, as defined and adopted by the United States Pharmacopeia; 27
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(3) "Marijuana": 1
(a) Means marijuana, whether real or counterfeit, as defined in KRS 218A.010; [ 2
and] 3
(b) Does not include medicinal cannabis as defined in KRS 218B.010; and 4
(c) Does not include hemp -derived cannabinoid products as defined in Section 5
1 of this Act; 6
(4) "Offender" means a person who engages in this state in a taxable activity as defined 7
in subsection (6) of this section; 8
(5) "Possessing" includes either actual poss ession or constructive possession, or a 9
combination of both actual and constructive possession. Mere possession or 10
ownership of real estate or an interest therein does not establish constructive 11
possession; and 12
(6) "Taxable activity" means producing, culti vating, manufacturing, importing, 13
transporting, distributing, acquiring, purchasing, storing, selling, using, or otherwise 14
possessing, in violation of KRS Chapter 218A, more than five (5) marijuana plants 15
with foliation, 42.5 grams of marijuana which has b een detached from the plant on 16
which it grew, seven (7) grams of any controlled substance, or fifty (50) or more 17
dosage units of any controlled substance which is not sold by weight. The weight or 18
dosage units in this subsection shall include the weight of marijuana or the weight 19
or dosage units of the controlled substance, whether pure, impure, or diluted. A 20
quantity of a controlled substance is diluted if it consists of a detectable quantity of 21
a pure controlled substance and any excipients or fillers. 22
Section 6. KRS 217.039 is amended to read as follows: 23
(1) As used in this section: 24
(a)[ "Cannabidiol" means a non -psychoactive cannabinoid found in the hemp 25
plant Cannabis sativa which has the chemical name 2 -[(1R,6R)-3-methyl-6-26
prop-1-en-2-ylcyclohex-2-en-1-yl]-5-pentylbenzene-1,3-diol; 27
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(b)] "Certificate of analysis" means a document produced by a laboratory that has 1
been accredited pursuant to standards of the International Organization for 2
Standardization, attesting to t he composition of a product. The certificate of 3
analysis shall include but not be limited to the amount of: 4
1. Delta-9 tetrahydrocannabinol; 5
2. [, the amount of ]Other cannabinoids; 6
3. [, the amount of ]Pesticide residues; 7
4. [, the amount of ]Heavy metal traces; 8
5. [, the amount of ]Mycotoxin contaminants; 9
6. [, the amount of ]Residual solvents;[,] and 10
7. [the amount of ]Microbiological contaminants; 11
(b)[(c)] "Hemp" has the same meaning as in Section 1 of this Act [KRS 12
260.850]; and 13
(c)[(d)] "Quick response code" or "QR code" means a type of machine -readable, 14
two (2) dimensional bar code that stores information about a product. 15
(2) A manufacturer or processor of hemp-derived cannabinoid[ingestible or cosmetic 16
cannabidiol] products located in Kentucky shall: 17
(a) Be permitted as a food manufacturer or a cosmetic manufacturer by the 18
cabinet and shall provide the following information: 19
1. The name of the manufacturer or processor and the physical address 20
where production or processing occurs; and 21
2. A listing o f the hemp-derived cannabinoid[cannabidiol] products to be 22
produced or processed; and 23
(b) Obtain a certificate of analysis for all hemp-derived 24
cannabinoid[cannabidiol] products to be sold or otherwise distributed in the 25
Commonwealth. 26
(3) All ingestible or cosmetic hemp-derived cannabinoid[cannabidiol] products sold or 27
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otherwise distributed in the Commonwealth shall bear labeling to allow the 1
consumer to access informati on on the product, including a certificate of analysis 2
for the product [, the location where the hemp was grown,] and the address and 3
phone number of the manufacturer or distributor using the following: 4
(a) A scannable bar code, including the batch number o r serial number of the 5
product; 6
(b) A QR code; or 7
(c) A web address linked to a document or website. 8
(4) Any product labeling or advertising material for any ingestible or cosmetic hemp-9
derived cannabinoid [cannabidiol] product sold or otherwise distributed in the 10
Commonwealth shall not bear any claims stating that the product can diagnose, 11
treat, cure, or prevent any disease. 12
(5) The cabinet shall promulgate administrative regulations in accordance with KRS 13
Chapter 13A to establish labeling requirements for ingestible or cosmetic hemp-14
derived cannabinoid[cannabidiol] products in accordance with of this section. 15
(6) The following hemp-derived cannabinoids are prohibited from commerce without 16
prior authorization from the department: 17
(a) Hexahydrocannabinols (HHC); 18
(b) Hexahyrdocannabiphorol (HHC-P); 19
(c) Tetrahydrocannabinol acetates and other esters; 20
(d) Exo-Tetrahydrocannabinol (Exo-THC); 21
(e) Tetrahydrocannabiphorols (THCP); 22
(f) Tetrahydrocannabioctyls (THC-c8); 23
(g) 11-hydroxy-Tetrahydrocannabinol (11-OH-THC); and 24
(h) Other cannabinoids determined by the department to be subject to pre -25
authorization. 26
(7) On and after the effective date of this Act: 27
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(a) The cabinet shall regulate and license manufacturers of cannabis -infused 1
beverages. 2
(b) After the Department of Alcoholic Beverage Control has promulgated 3
administrative regulations under KRS 243.401 or July 1, 2026 , whichever is 4
earlier, this section shall not apply to any distributor or retailer of cannabis -5
infused beverages licensed under KRS Chapters 241 to 244. The distribution 6
and retail sale of cannabis -infused beverages shall then be regulated solely by 7
the Department of Alcoholic Beverage Control under KRS Chapter 243 and 8
the administrative regulations promulgated thereto, except that: 9
1. On its licensed premises, a manufacturer licensed by the cabinet shall 10
be authorized to sell cannabis -infused beverages by the package 11
without an additional cannabis -infused beverage package license 12
issued by the Department of Alcohol Beverage Control, so long as the 13
beverages are sold under a brand name owned or exclusively licensed 14
to the manufacturer, if the beverages were: 15
a. Produced by the manufacturer; 16
b. Produced for the manufacturer under a written contract with 17
another manufacturer; or 18
c. Bottled or canned for or by the manufacturer; and 19
2. A retailer licensed by the cabinet may sell cannabis -infused beverages 20
by the package, on its licensed premises, without an additional 21
cannabis-infused beverage package license issued by the Department 22
of Alcohol Beverage Control, except that: 23
a. To sell cannabis -infused beverages, the licensee shall derive 24
fifty-one percent (51%) of its revenue from the sale of hemp -25
derived cannabinoid products, as reported to and approved by 26
the cabinet, and 27
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b. The retailer shall purchase the cannabis -infused beverages from 1
a licensed cannabis -infused beverage distributor or from a 2
cannabis-infused beverage manufacturer authorized to self -3
distribute under KRS 243.401. 4
(8) A person shall not process or manufacture hemp -derived cannabinoid products 5
in the Commonwealth unless the person holds a license issued by the Department 6
for Public Health. 7
(9) Any person seeking to process, manufacture, or retail hemp shall provide to the 8
department prior written consent allowing representatives of the department or 9
the Department of Kentucky State Police, and other state and local law 10
enforcement agencies to ent er onto all premises where hemp is processed, 11
manufactured, or stored for the purpose of conducting physical inspections or 12
ensuring compliance with the requirements of KRS 260.850 to 260.869 and 13
administrative regulations promulgated by the department. 14
(10) It is unlawful for a person who does not hold a processor or manufacturer license 15
issued by the Department for Public Health, or who is not an agent of a licensee, 16
to possess intermediate hemp -derived cannabinoid product having a total 17
tetrahydrocannabinol concentration in excess of three -tenths of one percent 18
(0.3%). Penalties for persons who possess such intermediate hemp -derived 19
cannabinoid products without a license are the same as those penalties that are 20
applicable to persons who violate KRS Chapter 218A, relating to marijuana. 21
(11) Notwithstanding any law to the contrary, the holder of a cannabis -infused 22
beverage retail package license, a cannabis-infused beverage distributor's license, 23
or a cannabis -infused beverage manufacturer license as approve d by the 24
Department for Public Health may sell and serve complimentary samples of 25
cannabis- infused beverages at fairs, festivals, and other similar types of events in 26
wet territory, under the following circumstances: 27
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(a) Sales by the drink; 1
(b) Sales by the package shall not exceed nine (9) liters per person, per day; 2
(c) Complimentary samples served by the drink shall not exceed one and three -3
fourths (1.75) ounces per person, per day; and 4
(d) The cannabis -infused beverages shall have been lawful ly produced or 5
purchased by the license holder. 6
Section 7. KRS 218A.010 is amended to read as follows: 7
As used in this chapter, unless the context otherwise requires: 8
(1) "Administer" means the direct application of a co ntrolled substance, whether by 9
injection, inhalation, ingestion, or any other means, to the body of a patient or 10
research subject by: 11
(a) A practitioner or by his or her authorized agent under his or her immediate 12
supervision and pursuant to his or her order; or 13
(b) The patient or research subject at the direction and in the presence of the 14
practitioner; 15
(2) "Anabolic steroid" means any drug or hormonal substance chemically and 16
pharmacologically related to testosterone that promotes muscle growth and includes 17
those substances classified as Schedule III controlled substances pursuant to KRS 18
218A.020 but does not include estrogens, progestins, and anticosteroids; 19
(3) "Cabinet" means the Cabinet for Health and Family Services; 20
(4) "Carfentanil" means any substance containing any quantity of carfentanil, or any of 21
its salts, isomers, or salts of isomers; 22
(5) "Certified community based palliative care program" means a palliative care 23
program which has received certification from the Joint Commission; 24
(6) "Child" means any person under the age of majority as specified in KRS 2.015; 25
(7) "Cocaine" means a substance containing any quantity of cocaine, its salts, optical 26
and geometric isomers, and salts of isomers; 27
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(8) "Controlled substance" means methamphetamine, or a drug, substance, or 1
immediate precursor in Schedules I through V and includes a controlled substance 2
analogue; 3
(9) (a) "Controlled substance analogue," except as provided in paragraph (b) of this 4
subsection, means a substance: 5
1. The chemical structure of which is substantially similar to the structure 6
of a controlled substance in Schedule I or II; and 7
2. Which has a stimulant, depressant, or hallucinogenic effect on the 8
central nervous system that is substantially similar to or greater than the 9
stimulant, depressant, or hallucinogenic effect on the central nervous 10
system of a controlled substance in Schedule I or II; or 11
3. With respect to a particular person, which such person represents or 12
intends to have a stimulant, depressant, or hallucinogenic effect o n the 13
central nervous system that is substantially similar to or greater than the 14
stimulant, depressant, or hallucinogenic effect on the central nervous 15
system of a controlled substance in Schedule I or II. 16
(b) Such term does not include: 17
1. Any substance for which there is an approved new drug application; 18
2. With respect to a particular person, any substance if an exemption is in 19
effect for investigational use for that person pursuant to federal law to 20
the extent conduct with respect to such substance is pursuant to such 21
exemption; or 22
3. Any substance to the extent not intended for human consumption before 23
the exemption described in subparagraph 2. of this paragraph takes 24
effect with respect to that substance; 25
(10) "Counterfeit substance" means a controlle d substance which, or the container or 26
labeling of which, without authorization, bears the trademark, trade name, or other 27
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identifying mark, imprint, number, or device, or any likeness thereof, of a 1
manufacturer, distributor, or dispenser other than the pe rson who in fact 2
manufactured, distributed, or dispensed the substance; 3
(11) "Dispense" means to deliver a controlled substance to an ultimate user or research 4
subject by or pursuant to the lawful order of a practitioner, including the packaging, 5
labeling, or compounding necessary to prepare the substance for that delivery; 6
(12) "Dispenser" means a person who lawfully dispenses a Schedule II, III, IV, or V 7
controlled substance to or for the use of an ultimate user; 8
(13) "Distribute" means to deliver other than by administering or dispensing a controlled 9
substance; 10
(14) "Dosage uni t" means a single pill, capsule, ampule, liquid, or other form of 11
administration available as a single unit; 12
(15) "Drug" means: 13
(a) Substances recognized as drugs in the official United States Pharmacopoeia, 14
official Homeopathic Pharmacopoeia of the United States, or official National 15
Formulary, or any supplement to any of them; 16
(b) Substances intended for use in the diagnosis, care, mitigation, treatment, or 17
prevention of disease in man or animals; 18
(c) Substances (other than food) intended to affect the structure or any function of 19
the body of man or animals; and 20
(d) Substances intended for use as a component of any article specified in this 21
subsection. 22
It does not include devices or their components, parts, or accessories; 23
(16) "Fentanyl" means a substanc e containing any quantity of fentanyl, or any of its 24
salts, isomers, or salts of isomers; 25
(17) "Fentanyl derivative" means a substance containing any quantity of any chemical 26
compound, except compounds specifically scheduled as controlled substances by 27
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statute or by administrative regulation pursuant to this chapter, which is structurally 1
derived from 1-ethyl-4-(N-phenylamido) piperadine: 2
(a) By substitution: 3
1. At the 2-position of the 1-ethyl group with a phenyl, furan, thiophene, or 4
ethyloxotetrazole ring system; and 5
2. Of the terminal amido hydrogen atom with an alkyl, alkoxy, cycloalkyl, 6
or furanyl group; and 7
(b) Which may be further modified in one (1) or more of the following ways: 8
1. By substitution on the N -phenyl ring to any extent with alkyl, alko xy, 9
haloalkyl, hydroxyl, or halide substituents; 10
2. By substitution on the piperadine ring to any extent with alkyl, allyl, 11
alkoxy, hydroxy, or halide substituents at the 2 -, 3 -, 5 -, and/or 6 - 12
positions; 13
3. By substitution on the piperadine ring to any ext ent with a phenyl, 14
alkoxy, or carboxylate ester substituent at the 4- position; or 15
4. By substitution on the 1 -ethyl group to any extent with alkyl, alkoxy, or 16
hydroxy substituents; 17
(18) "Good-faith prior examination," as used in KRS Chapter 218A and for c riminal 18
prosecution only, means an in-person medical examination of the patient conducted 19
by the prescribing practitioner or other health -care professional routinely relied 20
upon in the ordinary course of his or her practice, at which time the patient is 21
physically examined and a medical history of the patient is obtained. "In -person" 22
includes telehealth examinations. This subsection shall not be applicable to hospice 23
providers licensed pursuant to KRS Chapter 216B; 24
(19) "Hazardous chemical substance" includ es any chemical substance used or intended 25
for use in the illegal manufacture of a controlled substance as defined in this section 26
or the illegal manufacture of methamphetamine as defined in KRS 218A.1431, 27
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which: 1
(a) Poses an explosion hazard; 2
(b) Poses a fire hazard; or 3
(c) Is poisonous or injurious if handled, swallowed, or inhaled; 4
(20) "Heroin" means a substance containing any quantity of heroin, or any of its salts, 5
isomers, or salts of isomers; 6
(21) "Hydrocodone combination product" means a drug with: 7
(a) Not more than three hundred (300) milligrams of dihydrocodeinone, or any of 8
its salts, per one hundred (100) milliliters or not more than fifteen (15) 9
milligrams per dosage unit, with a fourfold or greater quantity of an 10
isoquinoline alkaloid of opium; or 11
(b) Not more than three hundred (300) milligrams of dihydrocodeinone, or any of 12
its salts, per one hundred (100) milliliters or not more than fifteen (15) 13
milligrams per dosage unit, with one (1) or more active, nonnarcotic 14
ingredients in recognized therapeutic amounts; 15
(22) "Immediate precursor" means a substance which is the principal compound 16
commonly used or produced primarily for use, and which is an immediate chemical 17
intermediary used or likely to be used in the manufacture of a controlled substance 18
or methamphetamine, the control of which is necessary to prevent, curtail, or limit 19
manufacture; 20
(23) "Industrial hemp" has the same meaning as in Section 1 of this Act[KRS 260.850]; 21
(24) "Industrial hemp products" has the same meaning as in Section 1 of this Act[KRS 22
260.850]; 23
(25) "Intent to manufacture" means any evidence which demonstrates a person's 24
conscious objective to manufacture a controlled substance or methamphetamine. 25
Such evidence includes but is not limited to statements and a chemical substance's 26
usage, quantity, manner of storage, or proximity to other chemical substances or 27
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equipment used to manufacture a controlled substance or methamphetamine; 1
(26) "Isomer" means the optical isomer, except the Cabinet for Health and Family 2
Services may include the optical, positional, or geometric isomer to classify any 3
substance pursuant to KRS 218A.020; 4
(27) "Manufacture," except as provided in KRS 218A.1431, means the production, 5
preparation, propagation, compounding, conversion, or processing of a controlle d 6
substance, either directly or indirectly by extraction from substances of natural 7
origin or independently by means of chemical synthesis, or by a combination of 8
extraction and chemical synthesis, and includes any packaging or repackaging of 9
the substance or labeling or relabeling of its container except that this term does not 10
include activities: 11
(a) By a practitioner as an incident to his or her administering or dispensing of a 12
controlled substance in the course of his or her professional practice; 13
(b) By a practitioner, or by his or her authorized agent under his supervision, for 14
the purpose of, or as an incident to, research, teaching, or chemical analysis 15
and not for sale; or 16
(c) By a pharmacist as an incident to his or her dispensing of a controlled 17
substance in the course of his or her professional practice; 18
(28) "Marijuana" means all parts of the plant Cannabis sp., whether growing or not; the 19
seeds thereof; the resin extracted from any part of the plant; and every compound, 20
manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin 21
or any compound, mixture, or preparation which contains any quantity of these 22
substances. The term "marijuana" does not include: 23
(a) [Industrial ] Hemp that is in the possession, custody, or con trol of a person 24
who holds a license issued by the Department of Agriculture permitting that 25
person to cultivate or[,] handle[, or process industrial] hemp; 26
(b) Hemp or hemp -derived cannabinoid products that are in the possession, 27
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custody, or control of a person who holds a license issued by the 1
Department for Public Health or Department of Alcohol Beverage Control 2
permitting that person to handle, process, or retail hemp; 3
(c) [Industrial ]Hemp products that do not include any living plants, viable seeds, 4
leaf materials, or floral materials; 5
(d)[(c)] Hemp-derived cannabinoid products[The substance cannabidiol], when 6
transferred, dispensed, or administered pursuant to the written order of a 7
physician practicing at a hospital or associated clinic affiliated wi th a 8
Kentucky public university having a college or school of medicine; 9
(e)[(d)] For persons participating in a clinical trial or in an expanded access 10
program, a drug or substance approved for the use of those participants by the 11
United States Food and Drug Administration; 12
(f)[(e)] A final hemp-derived cannabinoid[cannabidiol] product[ derived from 13
industrial hemp,] as defined in Section 1 of this Act[KRS 260.850]; 14
(g)[(f)] For the purpose of conducting scientific research, a cannabinoid product 15
derived from [ industrial] hemp, as defined in Section 1 of this Act [KRS 16
260.850]; 17
(h)[(g)] A cannabinoid product approved as a prescription medication by the 18
United States Food and Drug Administration; or 19
(i)[(h)] Medicinal cannabis as defined in KRS 218B.010; 20
(29) "Medical history," as used in KRS Chapter 218A and for criminal prosecution only, 21
means an accounting of a patient's medical background, including but not limited to 22
prior medical conditions, prescriptions, and family background; 23
(30) "Medical order," as used in KRS Chapter 218A and for criminal prosecution only, 24
means a lawful order of a specifically identified practitioner for a specifically 25
identified patient for the patie nt's health-care needs. "Medical order" may or may 26
not include a prescription drug order; 27
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(31) "Medical record," as used in KRS Chapter 218A and for criminal prosecution only, 1
means a record, other than for financial or billing purposes, relating to a pati ent, 2
kept by a practitioner as a result of the practitioner-patient relationship; 3
(32) "Methamphetamine" means any substance that contains any quantity of 4
methamphetamine, or any of its salts, isomers, or salts of isomers; 5
(33) "Narcotic drug" means any of the following, whether produced directly or indirectly 6
by extraction from substances of vegetable origin, or independently by means of 7
chemical synthesis, or by a combination of extraction and chemical synthesis: 8
(a) Opium and opiate, and any salt, compou nd, derivative, or preparation of 9
opium or opiate; 10
(b) Any salt, compound, isomer, derivative, or preparation thereof which is 11
chemically equivalent or identical with any of the substances referred to in 12
paragraph (a) of this subsection, but not including the isoquinoline alkaloids 13
of opium; 14
(c) Opium poppy and poppy straw; 15
(d) Coca leaves, except coca leaves and extracts of coca leaves fro m which 16
cocaine, ecgonine, and derivatives of ecgonine or their salts have been 17
removed; 18
(e) Cocaine, its salts, optical and geometric isomers, and salts of isomers; 19
(f) Ecgonine, its derivatives, their salts, isomers, and salts of isomers; and 20
(g) Any compound, mixture, or preparation which contains any quantity of any of 21
the substances referred to in paragraphs (a) to (f) of this subsection; 22
(34) "Opiate" means any substance having an addiction -forming or addiction-sustaining 23
liability similar to morphine or being capable of conversion into a drug having 24
addiction-forming or addiction -sustaining liability. It does not include, unless 25
specifically designated as controlled under KRS 218A.020, the dextrorotatory 26
isomer of 3 -methoxy-n-methylmorphinan and its s alts (dextromethorphan). It does 27
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include its racemic and levorotatory forms; 1
(35) "Opium poppy" means the plant of the species papaver somniferum L., except its 2
seeds; 3
(36) "Person" means individual, corporation, government or governmental subdivision 4
or agency, business trust, estate, trust, partnership or association, or any other legal 5
entity; 6
(37) "Physical injury" has the same meaning it has in KRS 500.080; 7
(38) "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing; 8
(39) "Pharmacist" means a natural person licensed by this state to engage in the practice 9
of the profession of pharmacy; 10
(40) "Practitioner" means a physician, dentist, podiatrist, veterinarian, scientific 11
investigator, optometrist as authorized in KRS 320.240, ad vanced practice 12
registered nurse as authorized under KRS 314.011, physician assistant as authorized 13
under KRS 311.858, or other person licensed, registered, or otherwise permitted by 14
state or federal law to acquire, distribute, dispense, conduct research with respect to, 15
or to administer a controlled substance in the course of professional practice or 16
research in this state. "Practitioner" also includes a physician, dentist, podiatrist, 17
veterinarian, or advanced practice registered nurse authorized under KR S 314.011 18
who is a resident of and actively practicing in a state other than Kentucky and who 19
is licensed and has prescriptive authority for controlled substances under the 20
professional licensing laws of another state, unless the person's Kentucky license 21
has been revoked, suspended, restricted, or probated, in which case the terms of the 22
Kentucky license shall prevail; 23
(41) "Practitioner-patient relationship," as used in KRS Chapter 218A and for criminal 24
prosecution only, means a medical relationship that exists between a patient and a 25
practitioner or the practitioner's designee, after the practitioner or his or her 26
designee has conducted at least one (1) good-faith prior examination; 27
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(42) "Prescription" means a written, electronic, or oral order for a drug or medicine, or 1
combination or mixture of drugs or medicines, or proprietary preparation, signed or 2
given or authorized by a medical, dental, chiropody, veterinarian, optometric 3
practitioner, or advanced practice registered nurse, and intended for use in the 4
diagnosis, cure, mitigation, treatment, or prevention of disease in man or other 5
animals; 6
(43) "Prescription blank," with reference to a controlled substance, means a document 7
that meets the requirements of KRS 218A.204 and 217.216; 8
(44) "Presumptive probation" means a sentence of probation not to exceed the maximum 9
term specified for the offense, subject to conditions otherwise authorized by law, 10
that is presumed to be the appropriate sentence for certain offenses designated in 11
this chapter, notwithsta nding contrary provisions of KRS Chapter 533. That 12
presumption shall only be overcome by a finding on the record by the sentencing 13
court of substantial and compelling reasons why the defendant cannot be safely and 14
effectively supervised in the community, i s not amenable to community -based 15
treatment, or poses a significant risk to public safety; 16
(45) "Production" includes the manufacture, planting, cultivation, growing, or harvesting 17
of a controlled substance; 18
(46) "Recovery program" means an evidence -based, nonclinical service that assists 19
individuals and families working toward sustained recovery from substance use and 20
other criminal risk factors. This can be done through an array of support programs 21
and services that are delivered through residential and nonresidential means; 22
(47) "Salvia" means Salvia divinorum or Salvinorin A and includes all parts of the plant 23
presently classified botanically as Salvia divinorum, whether growing or not, the 24
seeds thereof, any extract from any part of that plant, and ever y compound, 25
manufacture, derivative, mixture, or preparation of that plant, its seeds, or its 26
extracts, including salts, isomers, and salts of isomers whenever the existence of 27
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such salts, isomers, and salts of isomers is possible within the specific chemi cal 1
designation of that plant, its seeds, or extracts. The term shall not include any other 2
species in the genus salvia; 3
(48) "Second or subsequent offense" means that for the purposes of this chapter an 4
offense is considered as a second or subsequent offe nse, if, prior to his or her 5
conviction of the offense, the offender has at any time been convicted under this 6
chapter, or under any statute of the United States, or of any state relating to 7
substances classified as controlled substances or counterfeit sub stances, except that 8
a prior conviction for a nontrafficking offense shall be treated as a prior offense 9
only when the subsequent offense is a nontrafficking offense. For the purposes of 10
this section, a conviction voided under KRS 218A.275 or 218A.276 shal l not 11
constitute a conviction under this chapter; 12
(49) "Sell" means to dispose of a controlled substance to another person for 13
consideration or in furtherance of commercial distribution; 14
(50) "Serious physical injury" has the same meaning it has in KRS 500.080; 15
(51) "Synthetic cannabinoids or piperazines" means any chemical compound which is 16
not approved by the United States Food and Drug Administration or, if approved, 17
which is not dispensed or possessed in accordance with state and federal law, that 18
contains Benzylpiperazine (BZP); Trifluoromethylphenylpiperazine (TFMPP); 1,1 -19
Dimethylheptyl-11-hydroxytetrahydrocannabinol (HU -210); 1 -Butyl-3-(1-20
naphthoyl)indole; 1 -Pentyl-3-(1-naphthoyl)indole; dexanabinol (HU -211); or any 21
compound in the following structural classes: 22
(a) Naphthoylindoles: Any compound containing a 3 -(1-naphthoyl)indole 23
structure with substitution at the nitrogen atom of the indole ring by an alkyl, 24
haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1 -(N-methyl-2-25
piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl group, whether or not further 26
substituted in the indole ring to any extent and whether or not substituted in 27
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the naphthyl ring to any extent. Examples of this structural class include but 1
are not limited to JWH-015, JWH-018, JWH-019, JWH-073, JWH-081, JWH-2
122, JWH-200, and AM-2201; 3
(b) Phenylacetylindoles: Any compound containing a 3 -phenylacetylindole 4
structure with substitution at the nitrogen atom of the indole ring by an alkyl, 5
haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-6
piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl group whether or not further 7
substituted in the indole ring to any extent and whether or not substituted in 8
the phenyl ring to any extent. Examples of this structural class include but are 9
not limited to JWH-167, JWH-250, JWH-251, and RCS-8; 10
(c) Benzoylindoles: Any compound containing a 3-(benzoyl)indole structure with 11
substitution at the nitrogen atom of the indole ring by an alkyl, haloalkyl, 12
alkenyl, cycloalkylmethyl, cycloalkylethyl, 1 -(N-methyl-2-13
piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl group whether or not further 14
substituted in the indole ring to any extent and whether or not substituted in 15
the phenyl ring to any extent. Examples of this structural class include but are 16
not limited to AM -630, AM-2233, AM-694, Pravadoline (WIN 48,098), and 17
RCS-4; 18
(d) Cyclohexylphenols: Any compound containing a 2 -(3-19
hydroxycyclohexyl)phenol structure with substitution at the 5 -position of the 20
phenolic ring by an alkyl, haloalkyl, alkenyl, cycloalkylmethyl, 21
cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl 22
group whether or not substituted in the cyclohexyl ring to any extent. 23
Examples of this structural class include but are not limited to CP 47,497 and 24
its C8 homologue (cannabicyclohexanol); 25
(e) Naphthylmethylindoles: Any compound containing a 1H -indol-3-yl-(1-26
naphthyl)methane structure with substitution at the nitrogen atom of the 27
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indole ring by an alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1
1-(N-methyl-2-piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl group whether 2
or not further substituted in the indole ring to any extent and whether or not 3
substituted in the naphthyl ring to any extent. Examples of this structural class 4
include but are not limited to JWH-175, JWH-184, and JWH-185; 5
(f) Naphthoylpyrroles: Any compound containing a 3 -(1-naphthoyl)pyrrole 6
structure with substitution at the nitrogen atom of the pyrrole ring by an alkyl, 7
haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1 -(N-methyl-2-8
piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl group whether or not further 9
substituted in the pyrrole ring to any extent and whether or not substituted in 10
the naphthyl ring to any extent. Examples of this structural class include but 11
are not limited to JWH-030, JWH-145, JWH-146, JWH-307, and JWH-368; 12
(g) Naphthylmethylindenes: Any compound containing a 1 -(1-13
naphthylmethyl)indene structure with substitution at the 3 -position of the 14
indene ring by an alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 15
1-(N-methyl-2-piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl group whether 16
or not further substituted in the indene ring to any extent and whether or not 17
substituted in the naphthyl ring to any extent. Examples of this structural class 18
include but are not limited to JWH-176; 19
(h) Tetramethylcyclopropanoylindoles: Any compound containing a 3 -(1-20
tetramethylcyclopropoyl)indole structure with substitution at the nitrogen 21
atom of the indole ring by an alkyl, haloalkyl, cycloalkylmethyl, 22
cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl 23
group, whether or not further substituted in the indole ring to any extent and 24
whether or not further substituted in the tetramethylcyclopropyl ring to any 25
extent. Examples of this structural class include but are not limited to UR -144 26
and XLR-11; 27
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(i) Adamantoylindoles: Any compound containing a 3 -(1-adamantoyl)indole 1
structure with substitution at the nitrogen atom of the indole ring by an alkyl, 2
haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1 -(N-methyl-2-3
piperidinyl)methyl, or 2 -(4-morpholinyl)ethyl group, whether or not further 4
substituted in the indole ring to any extent and whether or not substituted in 5
the adamantyl ring system to any extent. Examples of this structural class 6
include but are not limited to AB-001 and AM-1248; or 7
(j) Any other synthetic cannabinoid or piperazine which is not approved by the 8
United States Food and Drug Administration or, if approved, which is not 9
dispensed or possessed in accordance with state and federal law; 10
(52) "Synthetic cathinones" means any chemical com pound which is not approved by 11
the United States Food and Drug Administration or, if approved, which is not 12
dispensed or possessed in accordance with state and federal law (not including 13
bupropion or compounds listed under a different schedule) structurally derived from 14
2-aminopropan-1-one by substitution at the 1 -position with either phenyl, naphthyl, 15
or thiophene ring systems, whether or not the compound is further modified in one 16
(1) or more of the following ways: 17
(a) By substitution in the ring system t o any extent with alkyl, alkylenedioxy, 18
alkoxy, haloalkyl, hydroxyl, or halide substituents, whether or not further 19
substituted in the ring system by one (1) or more other univalent substituents. 20
Examples of this class include but are not limited to 3,4 -21
Methylenedioxycathinone (bk-MDA); 22
(b) By substitution at the 3 -position with an acyclic alkyl substituent. Examples 23
of this class include but are not limited to 2 -methylamino-1-phenylbutan-1-24
one (buphedrone); 25
(c) By substitution at the 2 -amino nitrogen atom with alkyl, dialkyl, benzyl, or 26
methoxybenzyl groups, or by inclusion of the 2 -amino nitrogen atom in a 27
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cyclic structure. Examples of this class include but are not limited to 1
Dimethylcathinone, Ethcathinone, and -Pyrrolidinopropiophenone (-PPP); 2
or 3
(d) Any other synthetic cathinone which is not approved by the United States 4
Food and Drug Administration or, if approved, is not dispensed or possessed 5
in accordance with state or federal law; 6
(53) "Synthetic drugs" means any synthetic cannabinoids or piperazines or any synthetic 7
cathinones; 8
(54) "Telehealth" has the same meaning it has in KRS 211.332; 9
(55) "Tetrahydrocannabinols" means synthetic equivalents of the substances contained 10
in the plant, or in the resinous extractives of the plant Cannabis, sp. or synthetic 11
substances, derivatives, and their isomers with similar chemical structure and 12
pharmacological activity such as the following: 13
(a) Delta 1 cis or trans tetrahydrocannabinol, and their optical isomers; 14
(b) Delta 6 cis or trans tetrahydrocannabinol, and their optical isomers; and 15
(c) Delta 3, 4 cis or trans tetrahydrocannabinol, and its optical isomers; 16
(56) "Traffic," except as provided in KRS 218A.1431, means to manufacture, distribute, 17
dispense, sell, transfer, or possess with intent to manufacture, distribute, dispense, 18
or sell a controlled substance; 19
(57) "Transfer" means to dispose of a controlled substance to another person without 20
consideration and not in furtherance of commercial distribution; and 21
(58) "Ultimate user" means a person who lawfully possesses a controlled substance for 22
his or her own use or for the use of a member of his or her household or for 23
administering to an animal owned by him or her or by a member of his or her 24
household. 25
Section 8. KRS 218B.010 is amended to read as follows: 26
For the purposes of this chapter, unless the context otherwise requires: 27
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(1) "Bona fide practitioner -patient relationship" means a treating or consulting 1
relationship, during the course of which a medicinal cannabis practitioner has: 2
(a) Completed an initial in -person examination and assessment of the patient's 3
medical history and current medical condition which shall include a review 4
of: 5
1. The patient's medical records for the previous twelve (12) months; 6
2. All other available medical records relevant to the patient's qualifying 7
medical condition; 8
3. Any medications that the patient is currently taking; and 9
4. Any other possible risks or side effects that ma y be associated with the 10
use of medicinal cannabis; 11
(b) Consulted with the patient with respect to the possible medical, therapeutic, 12
and palliative properties of medicinal cannabis; 13
(c) Advised the patient of the possible risks and side effects associated with the 14
use of medicinal cannabis, including possible interactions between medicinal 15
cannabis and any other drug or medication that the patient is taking at that 16
time; and 17
(d) Established an expectation that he or she will provide follow -up care and 18
treatment to the patient in accordance with administrative r egulations 19
promulgated pursuant to KRS 218B.050(10); 20
(2) "Cabinet" means the Cabinet for Health and Family Services; 21
(3) "Cannabis business" means an entity licensed under this chapter as a cultivator, 22
dispensary, processor, producer, or safety compliance facility; 23
(4) "Cannabis business agent" means a principal officer, board member, employee, 24
volunteer, or agent of a cannabis business; 25
(5) "Cardholder" means: 26
(a) A registered qualified patient, designated caregiver, or visiting qualified 27
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patient who has a pplied for, obtained, and possesses a valid registry 1
identification card issued by the cabinet; or 2
(b) A visiting qualified patient who has obtained and possesses: 3
1. A valid out-of-state registry identification card; and 4
2. Documentation of having been di agnosed with a qualifying medical 5
condition; 6
(6) "Cultivator" means an entity licensed as such under KRS 218B.080, 218B.085, and 7
218B.090; 8
(7) "Cultivator agent" means a principal officer, board member, employee, volunteer, 9
or agent of a cultivator; 10
(8) "Designated caregiver" means a person who has registered as such with the cabinet 11
under KRS 218B.055 and 218B.060; 12
(9) "Dispensary" means an entity licensed as such under KRS 218B.080, 218B.085, 13
and 218B.090; 14
(10) "Dispensary agent" means a principal officer , board member, employee, volunteer, 15
or agent of a dispensary; 16
(11) "Disqualifying felony offense" means: 17
(a) A felony offense that resulted in the person being classified by the 18
Department of Corrections as a violent offender under KRS 439.3401; or 19
(b) A violation of a state or federal controlled substance law that was classified as 20
a felony in the jurisdiction where the person was convicted, except: 21
1. An offense for which the sentence, including any term of probation, 22
incarceration, or supervised release , was completed five (5) or more 23
years earlier; or 24
2. An offense that, as determined by the cabinet, consisted of conduct for 25
which this chapter would likely have prevented a conviction, but the 26
conduct either occurred prior to the enactment of this chapte r or was 27
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prosecuted by an authority other than the Commonwealth of Kentucky; 1
(12) "Enclosed, locked facility" means an indoor growing space such as a room, 2
greenhouse, building, or other indoor enclosed area that is maintained and operated 3
by a cultivator or producer and is equipped with locks and other security devices 4
that permit access only by authorized agents of the cultivator or producer, as 5
required by the cabinet; 6
(13) "Growth area" has the same meaning as an enclosed, locked facility; 7
(14) "Marijuana" has the same meaning as in KRS 218A.010; 8
(15) "Medicinal cannabis": 9
(a) Means marijuana as defined in KRS 218A.010 when cultivated, harvested, 10
processed, produced, transported, dispensed, distributed, sold, possessed, or 11
used in accordance with this chapter; 12
(b) Includes medicinal cannabis products and raw plant material; and 13
(c) Does not include[ industrial] hemp,[ or] industrial hemp products, and hemp-14
derived cannabinoid products as defined in Section 1 of this Act [KRS 15
260.850]; and 16
(16) "Medicinal cannabis accessories" means any equipment, product, or material of any 17
kind which is used, intended for use, or designed for use in the preparing, storing, 18
using, or consuming medicinal cannabis in accordance with this chapter; 19
(17) "Medicinal c annabis practitioner" means a physician or an advanced practice 20
registered nurse who is authorized to prescribe controlled substances under KRS 21
314.042, who is authorized by his or her state licensing board to provide written 22
certifications pursuant to KRS 218B.050; 23
(18) "Medicinal cannabis product": 24
(a) Means any compound, manufacture, salt, derivative, mixture, or preparation 25
of any part of the plant Cannabis sp., its seeds or its resin; or any compound, 26
mixture, or preparation which contains any quantity of these substances when 27
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cultivated, harvested, processed, produced, transported, dispensed, distributed, 1
sold, possessed, or used in accordance with this chapter; and 2
(b) Does not include industrial hemp and hemp -derived cannabinoid products 3
products as defined in Section 1 of this Act[KRS 260.850]; 4
(19) "Minor" means a person less than eighteen (18) years of age; 5
(20) "Out-of-state registry identification card" means a registry identification card, or an 6
equivalent document, that was issued pursuant to t he laws of another state, district, 7
territory, commonwealth, or insular possession of the United States; 8
(21) "Processor" means an entity licensed as such under KRS 218B.080, 218B.085, and 9
218B.090; 10
(22) "Processor agent" means a principal officer, board member, employee, volunteer, or 11
agent of a processor; 12
(23) "Producer" means an entity licensed as such under KRS 218B.080, 218B.085, and 13
218B.090; 14
(24) "Producer agent" means a principal officer, board member, employee, volunteer, or 15
agent of a producer; 16
(25) "Qualified patient" means a person who has obtained a written certification from a 17
medicinal cannabis practitioner with whom he or she has a bona fide practitioner -18
patient relationship; 19
(26) "Qualifying medical condition" means: 20
(a) Any type or form of cancer regardless of stage; 21
(b) Chronic, severe, intractable, or debilitating pain; 22
(c) Epilepsy or any other intractable seizure disorder; 23
(d) Multiple sclerosis, muscle spasms, or spasticity; 24
(e) Chronic nausea or cyclical vomiting syndrome that has prov en resistant to 25
other conventional medical treatments; 26
(f) Post-traumatic stress disorder; and 27
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(g) Any other medical condition or disease for which the Kentucky Center for 1
Cannabis established in KRS 164.983, or its successor, determines that 2
sufficient scientific data and evidence exists to demonstrate that an individual 3
diagnosed with that condition or disease is likely to receive medical, 4
therapeutic, or palliative benefits from the use of medicinal cannabis; 5
(27) "Raw plant material": 6
(a) Means the tric home-covered part of the female plant Cannabis sp. or any 7
mixture of shredded leaves, stems, seeds, and flowers of the Cannabis sp. 8
plant; and 9
(b) Does not include plant material obtained from [ industrial] hemp as defined in 10
Section 1 of this Act[KRS 260.850]; 11
(28) "Registered qualified patient" means a qualified patient who has applied for, 12
obtained, and possesses a valid registry identification card issued by the cabinet; 13
(29) "Registry identification card" means a document issued by the cabinet that 14
identifies a person as a registered qualified patient, visiting qualified patient, or 15
designated caregiver; 16
(30) "Safety compliance facility" means an entity licensed as such under KRS 218B.080, 17
218B.085, and 218B.090; 18
(31) "Safety compliance facility agent" m eans a principal officer, board member, 19
employee, volunteer, or agent of a safety compliance facility; 20
(32) "Seedling" means a medicinal cannabis plant that has no flowers and is not taller 21
than eight (8) inches; 22
(33) "Serious violation" means: 23
(a) Any violation of this chapter or any administrative regulation promulgated 24
thereunder that is capable of causing de ath or which causes serious and 25
prolonged disfigurement, prolonged impairment of health, or prolonged loss 26
or impairment of the function of any bodily organ; 27
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(b) The diversion of medicinal cannabis for use not regulated pursuant to this 1
chapter; or 2
(c) Any act that would constitute a violation of KRS 218A.1421; 3
(34) "Smoking" means the inhalation of smoke produced from the combustion of raw 4
plant material when ignited by a flame; 5
(35) "State licensing board" means: 6
(a) The Kentucky Board of Medical Licensure; or 7
(b) The Kentucky Board of Nursing; 8
(36) "Telehealth" has the same meaning as in KRS 211.332; 9
(37) "Use of medicinal cannabis": 10
(a) Includes the acquisition, administration, possession, transfer, transportation, 11
or consumption of medicinal cannabis or medicinal cannabis accessories by a 12
cardholder in accordance with this chapter; and 13
(b) Does not include: 14
1. Cultivation of marijuana by a cardholder; 15
2. The use or consumption of marijuana by smoking;[ or] 16
3. The use of [ industrial] hemp,[ or] industrial hemp products , and hemp -17
derived cannabinoid products as defined in Section 1 of this Act [KRS 18
260.850]; 19
(38) "Visiting qualified patient" means a person who has registered as such through the 20
cabinet as required under this chapter or who possess es a valid out -of-state registry 21
identification card and documentation of having been diagnosed with a qualifying 22
medical condition; and 23
(39) "Written certification" means a document dated and signed by a medicinal cannabis 24
practitioner, that: 25
(a) States, that in the medicinal cannabis practitioner's professional medical 26
opinion, the patient may receive medical, therapeutic, or palliative benefit 27
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from the use of medicinal cannabis; 1
(b) Specifies the qualifying medical condition or conditions for which the 2
medicinal cannabis practitioner believes the patient may receive medical, 3
therapeutic, or palliative benefit; and 4
(c) Affirms that the medicinal cannabis practitioner has a bona fide practitioner -5
patient relationship with the patient. 6
Section 9. KRS 218B.015 is amended to read as follows: 7
(1) [Nothing in ] This chapter shall not be construed as applying to [ industrial] hemp,[ 8
or] industrial hemp, or hemp-derived cannabinoid products as defined in Section 1 9
of this Act[KRS 260.850]. 10
(2) Notwithstanding any provision of law to the contrary, and except as provided in 11
subsections (3) and (4) of this section and KRS 218B.035: 12
(a) The use of medicinal cannabis by a cardholder shall be considered lawful if 13
done in accordance with t his chapter and any administrative regulations 14
promulgated thereunder; 15
(b) The acquisition, blending, cultivation, delivery, distribution, manufacturing, 16
manipulation, packaging for sale, preparation, possession, sale, testing, 17
transportation, or transfer of medicinal cannabis or medicinal cannabis 18
accessories by a cannabis business or cannabis business agent shall be 19
considered lawful if done in accordance with this chapter and any 20
administrative regulations promulgated thereunder; 21
(c) A registered qualified patient or visiting qualified patient shall not be 22
considered to be under the influence of medicinal cannabis solely because of 23
the presence of tetrahydrocannabinol metabolites, including but not limited to 24
the cannabinoid carboxy THC, which is also known as THC-COOH; 25
(d) A medicinal cannabis practitioner shall not be subject, under the laws of the 26
Commonwealth, to arrest, prosecution, or penalty in any manner, or denied 27
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any right or privilege, including but not limited to a civil pen alty or 1
disciplinary action by a state licensing board or by any other occupational or 2
professional licensing board, solely for providing written certifications or for 3
otherwise stating that, in the medicinal cannabis practitioner's professional 4
opinion, a patient may receive medical, therapeutic, or palliative benefit from 5
the use of medicinal cannabis, if done in accordance with this chapter; 6
(e) An attorney shall not be subject, under the laws of the Commonwealth, to 7
arrest, prosecution, or penalty in an y manner, or denied any right or privilege, 8
including but not limited to a civil penalty or disciplinary action by the 9
Kentucky Court of Justice, Kentucky Bar Association, or by any other 10
professional licensing board, solely for providing an individual or cannabis 11
business with legal assistance related to activity that is no longer subject to 12
criminal penalties under state law pursuant to this chapter;[ and] 13
(f) A[No] person shall not be subject, under the laws of the Commonwealth, to 14
arrest, prosecution, or penalty in any manner, or denied any right or privilege, 15
including but not limited to a civil penalty or disciplinary action by an 16
occupational or professional licensing board, solely for providing assistance 17
or services, including but not limited to acc ounting services, financial 18
services, security services, or business consulting services, to any individual 19
or cannabis business related to activity that is no longer subject to criminal 20
penalties under state law pursuant to this chapter; and 21
(g) The Cabin et shall promulgate an emergency administrative regulation in 22
accordance with KRS Chapter 13A to permit the transfer or sale of hemp 23
floral material from a hemp cultivator licensed by the Kentucky Department 24
of Agriculture to a medical cannabis licensed pr ocessor, producer, or 25
dispensary. 26
(3) [Nothing in ]Subsection (2) of this section shall not be construed or interpreted to: 27
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(a) Prohibit the arrest, prosecution, or imposition of any other penalty arising 1
from but not limited to breach of contract, breach of fiduciary duty, 2
negligence, or engaging in criminal activity that would constitute a felony or 3
misdemeanor; or 4
(b) Prevent a medicinal cannabis practitioner from being subject to administrative 5
penalties imposed by his or her state licensing board for a ny violation of this 6
chapter or any administrative regulation promulgated thereunder. 7
(4) Notwithstanding subsection (2) of this section and any other provision of law to the 8
contrary, a cardholder who is licensed under KRS Chapter 311 or KRS Chapter 314 9
may be subject to intervention or disciplinary action by his or her state licensing 10
board if: 11
(a) There is probable cause to believe that the cardholder has become impaired 12
by, or otherwise abused, medicinal cannabis; or 13
(b) The cardholder has a medically d iagnosable disease that is characterized by 14
chronic, habitual, or periodic use of medicinal cannabis resulting in 15
interference with the cardholder's professional, social, or economic functions 16
in the community or the loss of powers of self -control regarding the use of 17
medicinal cannabis. 18
Section 10. KRS 241.010 is amended to read as follows: 19
As used in KRS Chapters 241 to 244, unless the context requires otherwise: 20
(1) "Alcohol" means ethyl alcohol, hydrated oxide of ethy l or spirit of wine, from 21
whatever source or by whatever process it is produced; 22
(2) "Alcoholic beverage" means every liquid, solid, powder, or crystal, whether 23
patented or not, containing alcohol in an amount in excess of more than one percent 24
(1%) of alc ohol by volume, which is fit for beverage purposes. It includes every 25
spurious or imitation liquor sold as, or under any name commonly used for, 26
alcoholic beverages, whether containing any alcohol or not. It does not include the 27
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following products: 1
(a) Medicinal preparations manufactured in accordance with formulas prescribed 2
by the United States Pharmacopoeia, National Formulary, or the American 3
Institute of Homeopathy; 4
(b) Patented, patent, and proprietary medicines; 5
(c) Toilet, medicinal, and antiseptic preparations and solutions; 6
(d) Flavoring extracts and syrups; 7
(e) Denatured alcohol or denatured rum; 8
(f) Vinegar and preserved sweet cider; 9
(g) Wine for sacramental purposes; and 10
(h) Alcohol unfit for beverage purposes that is to be sold for legitimate e xternal 11
use; 12
(3) (a) "Alcohol vaporizing device" or "AWOL device" means any device, machine, 13
or process that mixes liquor, spirits, or any other alcohol product with pure 14
oxygen or by any other means produces a vaporized alcoholic product used 15
for human consumption; 16
(b) "Alcohol vaporizing device" or "AWOL device" does not include an inhaler, 17
nebulizer, atomizer, or other device that is designed and intended by the 18
manufacturer to dispense a prescribed or over -the-counter medication or a 19
device installed an d used by a licensee under this chapter to demonstrate the 20
aroma of an alcoholic beverage; 21
(4) "Automobile race track" means a facility primarily used for vehicle racing that has a 22
seating capacity of at least thirty thousand (30,000) people; 23
(5) "Barrel-aged and batched cocktail" means an alcoholic beverage that is: 24
(a) Composed of: 25
1. Distilled spirits that have been dispensed from their original sealed 26
container; and 27
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2. Other ingredients or alcoholic beverages; 1
(b) Placed into a barrel or container on the premises of a retail licensee; and 2
(c) Dispensed from the barrel or container as a retail sale by the drink; 3
(6) "Bed and breakfast" means a one (1) family dwelling unit that: 4
(a) Has guest rooms or suites used, rented, or hired out for occupanc y or that are 5
occupied for sleeping purposes by persons not members of the single -family 6
unit; 7
(b) Holds a permit under KRS Chapter 219; and 8
(c) Has an innkeeper who resides on the premises or property adjacent to the 9
premises during periods of occupancy; 10
(7) "Board" means the State Alcoholic Beverage Control Board created by KRS 11
241.030; 12
(8) "Bottle" means any container which is used for holding alcoholic beverages for the 13
use and sale of alcoholic beverages at retail; 14
(9) "Brewer" means any person who man ufactures malt beverages or owns, occupies, 15
carries on, works, or conducts any brewery, either alone or through an agent; 16
(10) "Brewery" means any place or premises where malt beverages are manufactured for 17
sale, and includes all offices, granaries, mash r ooms, cooling rooms, vaults, yards, 18
and storerooms connected with the premises; or where any part of the process of the 19
manufacture of malt beverages is carried on; or where any apparatus connected with 20
manufacture is kept or used; or where any of the prod ucts of brewing or 21
fermentation are stored or kept; 22
(11) "Building containing licensed premises" means the licensed premises themselves 23
and includes the land, tract of land, or parking lot in which the premises are 24
contained, and any part of any building c onnected by direct access or by an 25
entrance which is under the ownership or control of the licensee by lease holdings 26
or ownership; 27
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(12) "Cannabinoid" has the meaning as in Section 1 of this Act [means a compound 1
found in the hemp plant Cannabis sativa L. f rom a United States Department of 2
Agriculture-sanctioned domestic hemp production program and does not include 3
cannabinoids derived from any other substance]; 4
(13) "Cannabis-infused beverage" has the meaning as in Section 1 of this Act[: 5
(a) Means a properly permitted adult-use cannabinoid liquid product intended for 6
human consumption that has intoxicating properties that change the function 7
of the nervous system and results in alterations of perception, cognition, or 8
behavior and shall not contain more tha n five (5) milligrams of intoxicating 9
adult-use cannabinoids per twelve (12) ounce serving; and 10
(b) Shall not include: 11
1. Medicinal cannabis regulated under KRS Chapter 218B; 12
2. Any type of hemp tincture; and 13
3. Any product containing solely nonintoxicating cannabinoids]; 14
(14) "Caterer" means a person operating a food service business that prepares food in a 15
licensed and inspected commissary, transports the food and alcoholic beverages to 16
the caterer's designated and inspected banquet hall or to an agreed l ocation, and 17
serves the food and alcoholic beverages pursuant to an agreement with another 18
person; 19
(15) "Charitable organization" means a nonprofit entity recognized as exempt from 20
federal taxation under Section 501(c) of the Internal Revenue Code, 26 U.S. C. sec. 21
501(c), or any organization having been established and continuously operating 22
within the Commonwealth of Kentucky for charitable purposes for three (3) years 23
and which expends at least sixty percent (60%) of its gross revenue exclusively for 24
religious, educational, literary, civic, fraternal, or patriotic purposes; 25
(16) "Cider" means any fermented fruit -based beverage containing seven percent (7%) 26
or more alcohol by volume and includes hard cider and perry cider; 27
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(17) "City administrator" means city alcoholic beverage control administrator; 1
(18) "Commercial airport" means an airport through which more than five hundred 2
thousand (500,000) passengers arrive or depart annually; 3
(19) (a) "Commercial quadricycle" means a vehicle equipped with a minimum of ten 4
(10) pairs of fully operative pedals for propulsion by means of human 5
muscular power and which: 6
1. Has four (4) wheels; 7
2. Is operated in a manner similar to that of a bicycle; 8
3. Is equipped with a minimum of thirteen (13) seats for passengers; 9
4. Has a unibody design; 10
5. Is equipped with a minimum of four (4) hydraulically operated brakes; 11
6. Is used for commercial tour purposes; 12
7. Is operated by the vehicle owner or an employee of the owner; and 13
8. Has an electrical assist system that shall only be used when traveling to 14
or from its storage location while not carrying passengers. 15
(b) A "commercial quadricycle" is not a motor vehicle as defined in KRS 186.010 16
or 189.010; 17
(20) "Commissioner" means the commissioner of the Department of Alcoholic Beverage 18
Control; 19
(21) "Consumer" means a person, persons, or business organization who purchases 20
alcoholic beverages and who: 21
(a) Does not hold a license or permit issued by the department; 22
(b) Purchases the alcoholic beverages for personal consumption only and not for 23
resale; 24
(c) Is of lawful drinking age; and 25
(d) Receives the alcoholic beverages in territory where the alcoholic beverages 26
may be lawfully sold or received; 27
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(22) "Convention center" means any facility which, in its usual and customary business, 1
provides seating for a minimum of one thousand (1,000) people and offers 2
convention facilities and related services for seminars, training and educational 3
purposes, trade association meetings , conventions, or civic and community events 4
or for plays, theatrical productions, or cultural exhibitions; 5
(23) "Convicted" and "conviction" means a finding of guilt resulting from a plea of 6
guilty, the decision of a court, or the finding of a jury, irres pective of a 7
pronouncement of judgment or the suspension of the judgment; 8
(24) "County administrator" means county alcoholic beverage control administrator; 9
(25) "Department" means the Department of Alcoholic Beverage Control; 10
(26) "Dining car" means a rai lroad passenger car that serves meals to consumers on any 11
railroad or Pullman car company; 12
(27) "Discount in the usual course of business" means price reductions, rebates, refunds, 13
and discounts given by wholesalers to distilled spirits and wine retailers pursuant to 14
an agreement made at the time of the sale of the merchandise involved and are 15
considered a part of the sales transaction, constituting reductions in price pursuant 16
to the terms of the sale, irrespective of whether the quantity discount was: 17
(a) Prorated and allowed on each delivery; 18
(b) Given in a lump sum after the entire quantity of merchandise purchased had 19
been delivered; or 20
(c) Based on dollar volume or on the quantity of merchandise purchased; 21
(28) "Distilled spirits" or "spirits" means an y product capable of being consumed by a 22
human being which contains alcohol obtained by distilling, mixed with water or 23
other substances in solution, except wine, hard cider, and malt beverages; 24
(29) "Distiller" means any person who is engaged in the business of manufacturing 25
distilled spirits at any distillery in the state and is registered in the Office of the 26
Collector of Internal Revenue for the United States at Louisville, Kentucky; 27
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(30) "Distillery" means any place or premises where distilled spirits are manufactured 1
for sale, and which are registered in the office of any collector of internal revenue 2
for the United States. It includes any United States government bonded warehouse; 3
(31) "Distributor" means any person who distributes malt beverages for the purpose of 4
being sold at retail; 5
(32) "Dry" means a territory in which a majority of the electorate voted to prohibit all 6
forms of retail alcoholic beverage sales through a local option election h eld under 7
KRS Chapter 242; 8
(33) "Election" means: 9
(a) An election held for the purpose of taking the sense of the people as to the 10
application or discontinuance of alcoholic beverage sales under KRS Chapter 11
242; or 12
(b) Any other election not pertaining to alcoholic beverages; 13
(34) "Horse racetrack" means a facility licensed to conduct a horse race meeting under 14
KRS Chapter 230; 15
(35) "Hotel" means a hotel, motel, or inn for accommodation of the traveling public, 16
designed primarily to serve transient patrons; 17
(36) "Investigator" means any employee or agent of the department who is regularly 18
employed and whose primary function is to travel from place to place for the 19
purpose of visiting licensees, and any employee or agent of the department who is 20
assigned, temporarily or permanently, by the commissioner to duty outside the main 21
office of the department at Frankfort, in connection with the administration of 22
alcoholic beverage statutes; 23
(37) "License" means any license issued pursuant to KRS Chapters 241 to 244; 24
(38) "Licensee" means any person to whom a license has been issued, pursuant to KRS 25
Chapters 241 to 244; 26
(39) "Limited restaurant" means: 27
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(a) A facility where the usual and customary business is the preparation and 1
serving of meals to consumers, which has a bona fide kitchen facility, which 2
receives at least seventy percent (70%) of its food and alcoholic beverage 3
receipts from the sale of food, which maintains a minimum seating capacity of 4
fifty (50) persons for dining, which has no open bar, which require s that 5
alcoholic beverages be sold in conjunction with the sale of a meal, and which 6
is located in a wet or moist territory under KRS 242.1244; or 7
(b) A facility where the usual and customary business is the preparation and 8
serving of meals to consumers, w hich has a bona fide kitchen facility, which 9
receives at least seventy percent (70%) of its food and alcoholic beverage 10
receipts from the sale of food, which maintains a minimum seating capacity of 11
one hundred (100) persons of dining, and which is located in a wet or moist 12
territory under KRS 242.1244; 13
(40) "Local administrator" means a city alcoholic beverage control administrator, county 14
alcoholic beverage control administrator, or urban -county alcoholic beverage 15
control administrator; 16
(41) "Malt beverage" means any fermented undistilled alcoholic beverage of any name 17
or description, manufactured from malt wholly or in part, or from any substitute for 18
malt, and includes weak cider; 19
(42) "Manufacture" means distill, rectify, brew, bottle, and operate a winery; 20
(43) "Manufacturer" means a winery, distiller, rectifier, or brewer, and any other person 21
engaged in the production or bottling of alcoholic beverages; 22
(44) "Marina" means a dock or basin providing moorings for boats and offering supply, 23
repair, or other services for remuneration; 24
(45) "Minor" means any person who is not twenty-one (21) years of age or older; 25
(46) "Moist" means a territory in which a majority of the electorate voted to permit 26
limited alcoholic beverage sales by any one (1) or a combinat ion of special limited 27
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local option elections authorized by KRS Chapter 242; 1
(47) "Population" means the population figures established by the federal decennial 2
census for a census year or the current yearly population estimates prepared by the 3
Kentucky State Data Center, Urban Studies Center of the University of Louisville, 4
Louisville, Kentucky, for all other years; 5
(48) "Premises" means the land and building in and upon which any business regulated 6
by alcoholic beverage statutes is operated or carried on. "Premises" shall not 7
include as a single unit two (2) or more separate businesses of one (1) owner on the 8
same lot or tract of land, in the same or in different buildings if physical and 9
permanent separation of the premises is maintained, excluding employ ee access by 10
keyed entry and emergency exits equipped with crash bars, and each has a separate 11
public entrance accessible directly from the sidewalk or parking lot. Any licensee 12
holding an alcoholic beverage license on July 15, 1998, shall not, by reason o f this 13
subsection, be ineligible to continue to hold his or her license or obtain a renewal, 14
of the license; 15
(49) "Primary source of supply" or "supplier" means the distiller, winery, brewer, 16
producer, owner of the commodity at the time it becomes a market able product, 17
bottler, or authorized agent of the brand owner. In the case of imported products, 18
the primary source of supply means either the foreign producer, owner, bottler, or 19
agent of the prime importer from, or the exclusive agent in, the United Stat es of the 20
foreign distiller, producer, bottler, or owner; 21
(50) "Private club" means a nonprofit social, fraternal, military, or political organization, 22
club, or nonprofit or for -profit entity maintaining or operating a club room, club 23
rooms, or premises from which the general public is excluded; 24
(51) "Private selection event" means a private event with a licensed distiller during 25
which participating consumers, retail licensees, wholesalers, distributors, or a 26
distillery's own representatives select a single barrel or a blend of barrels of the 27
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distiller's products to be specially packaged for the participants; 1
(52) "Private selection package" means a bottle of distilled spirits sourced from the 2
barrel or barrels selected by participating consumers, retail lic ensees, wholesalers, 3
distributors, microbreweries that hold a quota retail drink or quota retail package 4
license, or a distillery's own representatives during a private selection event; 5
(53) "Public nuisance" means a condition that endangers safety or health, is offensive to 6
the senses, or obstructs the free use of property so as to interfere with the 7
comfortable enjoyment of life or property by a community or neighborhood or by 8
any considerable number of persons; 9
(54) "Qualified historic site" means: 10
(a) A contributing property with dining facilities for at least fifty (50) persons at 11
tables, booths, or bars where food may be served within a commercial district 12
listed in the National Register of Historic Places; 13
(b) A site that is listed as a National Historic Landmark or in the National 14
Register of Historic Places with dining facilities for at least fifty (50) persons 15
at tables, booths, or bars where food may be served; 16
(c) A distillery which is listed as a National Historic Landmark and which 17
conducts souvenir retail package sales under KRS 243.0305; or 18
(d) A not-for-profit or nonprofit facility listed on the National Register of Historic 19
Places; 20
(55) "Rectifier" means any person who rectifies , purifies, or refines distilled spirits, 21
malt, or wine by any process other than as provided for on distillery premises, and 22
every person who, without rectifying, purifying, or refining distilled spirits by 23
mixing alcoholic beverages with any materials, m anufactures any imitations of or 24
compounds liquors for sale under the name of whiskey, brandy, gin, rum, wine, 25
spirits, cordials, bitters, or any other name; 26
(56) "Repackaging" means the placing of alcoholic beverages in any retail container 27
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irrespective of the material from which the container is made; 1
(57) "Restaurant" means a facility where the usual and customary business is the 2
preparation and serving of meals to consumers, that has a bona fide kitchen facility, 3
and that receives at least fifty percent (50%) of its food and alcoholic beverage 4
receipts from the sale of food at the premises; 5
(58) "Retail container" means any bottle, can, barrel, or other container which, without a 6
separable intermediate container, holds alcoholic beverages and is suitable and 7
destined for sale to a retail outlet, whether it is suitable for delivery or shipment to 8
the consumer or not; 9
(59) "Retail sale" means any sale of alcoholic beverages to a consumer, including those 10
transactions taking place in person, electronically, online, by mail, or by telephone; 11
(60) "Retailer" means any licensee who sells and delivers any alcoholic beverage to 12
consumers, except for manufacturers with limited retail sale privileges and direct 13
shipper licensees; 14
(61) "Riverboat" means any boat or v essel with a regular place of mooring in this state 15
that is licensed by the United States Coast Guard to carry forty (40) or more 16
passengers for hire on navigable waters in or adjacent to this state; 17
(62) "Sale" means any transfer, exchange, or barter for consideration, and includes all 18
sales made by any person, whether principal, proprietor, agent, servant, or 19
employee, of any alcoholic beverage; 20
(63) "Service bar" means a bar, counter, shelving, or similar structure used for storing or 21
stocking supplies o f alcoholic beverages that is a workstation where employees 22
prepare alcoholic beverage drinks to be delivered to customers away from the 23
service bar; 24
(64) "Sell" includes solicit or receive an order for, keep or expose for sale, keep with 25
intent to sell, and the delivery of any alcoholic beverage; 26
(65) "Small farm winery" means a winery whose wine production is not less than two 27
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hundred fifty (250) gallons and not greater than five hundred thousand (500,000) 1
gallons in a calendar year; 2
(66) "Souvenir packag e" means a special package of distilled spirits available from a 3
licensed retailer that is: 4
(a) Available for retail sale at a licensed Kentucky distillery where the distilled 5
spirits were produced or bottled; or 6
(b) Available for retail sale at a licensed Kentucky distillery but produced or 7
bottled at another of that distiller's licensed distilleries in Kentucky; 8
(67) "State administrator" or "administrator" means the distilled spirits administrator or 9
the malt beverages administrator, or both, as the context requires; 10
(68) "State park" means a state park that has a: 11
(a) Nine (9) or eighteen (18) hole golf course; or 12
(b) Full-service lodge and dining room; 13
(69) "Supplemental bar" means a bar, counter, shelving, or similar structure used for 14
serving and sell ing distilled spirits or wine by the drink for consumption on the 15
licensed premises to guests and patrons from additional locations other than the 16
main bar; 17
(70) "Territory" means a county, city, district, or precinct; 18
(71) "Urban-county administrator" mea ns an urban -county alcoholic beverage control 19
administrator; 20
(72) "Valid identification document" means an unexpired, government -issued form of 21
identification that contains the photograph and date of birth of the individual to 22
whom it is issued; 23
(73) "Vehicle" means any device or animal used to carry, convey, transport, or otherwise 24
move alcoholic beverages or any products, equipment, or appurtenances used to 25
manufacture, bottle, or sell these beverages; 26
(74) "Vintage distilled spirit" means: 27
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(a) A private selection package; or 1
(b) A package or packages of distilled spirits that: 2
1. Are in their original manufacturer's unopened container; 3
2. Are not owned by a distillery; and 4
3. Are not otherwise available for purchase from a licensed wholesaler 5
within the Commonwealth; 6
(75) (a) "Vintage distilled spirits seller" means a nonlicensed person at least twenty -7
one (21) years of age who is: 8
1. An administrator, executor, receiver, or other fiduciary who receives and 9
sells vintage distilled spirits in execution of the person's fiduciary 10
capacity; 11
2. A creditor who receives or takes possession of vintage distilled spirits as 12
security for, or in payment of, debt, in whole or in part; 13
3. A public officer or court official who levies on vintage distilled spirits 14
under order or process of any court or magistrate to sell the vintage 15
distilled spirits in satisfaction of the order or process; or 16
4. Any other person not engaged in the business of selling alcoholic 17
beverages. 18
(b) "Vintage distilled spirits seller" does not mean: 19
1. A person selling alcoholic beverages as part of an approved KRS 20
243.630 transfer; or 21
2. A person selling alcoholic beverages as authorized by KRS 243.540; 22
(76) "Warehouse" means any place in which alcoholic beverages are housed or stored; 23
(77) "Weak cider" means any fermented fruit -based beverage containing more than one 24
percent (1%) but less than seven percent (7%) alcohol by volume; 25
(78) "Wet" means a territory in which a majority of the electorate voted to permit all 26
forms of retail alcoholic b everage sales by a local option election under KRS 27
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242.050 or 242.125 on the following question: "Are you in favor of the sale of 1
alcoholic beverages in (name of territory)?"; 2
(79) "Wholesale sale" means a sale to any person for the purpose of resale; 3
(80) "Wholesaler" means any person who distributes alcoholic beverages for the purpose 4
of being sold at retail, but it shall not include a subsidiary of a manufacturer or 5
cooperative of a retail outlet; 6
(81) "Wine" means the product of the normal alcoholic fer mentation of the juices of 7
fruits, with the usual processes of manufacture and normal additions, and includes 8
champagne and sparkling and fortified wine of an alcoholic content not to exceed 9
twenty-four percent (24%) by volume. It includes sake, cider, har d cider, and perry 10
cider and also includes preparations or mixtures vended in retail containers if these 11
preparations or mixtures contain not more than fifteen percent (15%) of alcohol by 12
volume. It does not include weak cider; and 13
(82) "Winery" means any place or premises in which wine is manufactured from any 14
fruit, or brandies are distilled as a by -product of wine or other fruit, or cordials are 15
compounded, except a place or premises that manufactures wine for sacramental 16
purposes exclusively. 17
Section 11. KRS 243.030 is amended to read as follows: 18
The following licenses that authorize traffic in distilled spirits and wine and in cannabis -19
infused beverages may be issued by the distilled spirits administrator. Licenses th at 20
authorize traffic in all alcoholic beverages may be issued by both the distilled spirits 21
administrator and malt beverages administrator. The licenses and their accompanying 22
fees are as follows: 23
(1) Distiller's license: 24
(a) Class A, per annum .............................................................................$3,090.00 25
(b) Class B (craft distillery), per annum ....................................................$1,000.00 26
(c) Off-premises retail sales outlet, per annum ............................................$300.00 27
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(2) Rectifier's license: 1
(a) Class A, per annum .............................................................................$2,580.00 2
(b) Class B (craft rectifier), per annum ........................................................$825.00 3
(3) Winery license, per annum ..........................................................................$1,030.00 4
(4) Small farm winery license, per annum ...........................................................$110.00 5
(a) Small farm winery off-premises retail license, per annum ......................$30.00 6
(5) Wholesaler's license, per annum ..................................................................$2,060.00 7
(6) Quota retail package license, per annum .........................................................$570.00 8
(7) Quota retail drink license, per annum ..............................................................$620.00 9
(8) Transporter's license, per annum ....................................................................$210.00 10
(9) Special nonbeverage alcohol license, per annum .............................................$60.00 11
(10) Special agent's or solicitor's license, per annum ...............................................$30.00 12
(11) Bottling house or bottling house storage license, per annum ......... .............$1,030.00 13
(12) Special temporary license, per event ..............................................................$100.00 14
(13) Special Sunday retail drink license, per annum ...............................................$520.00 15
(14) Caterer's license, per annum ...........................................................................$830.00 16
(15) Special temporary alcoholic beverage auction license, per event ...................$100.00 17
(16) Extended hours supplemental license, per annum .......................................$2,060.00 18
(17) Hotel in-room license, per annum ...................................................................$210.00 19
(18) Air transporter license, per annum ..................................................................$520.00 20
(19) Sampling license, per annum ...........................................................................$110.00 21
(20) Replacement or duplicate license ......................................................................$25.00 22
(21) Entertainment destination center license: 23
(a) When the licensee is a city, county, urban-county government, 24
consolidated local government, charter county government, or 25
unified local government, per annum .................................................$2,577.00 26
(b) All other licensees, per annum ............................................................$7,730.00 27
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(22) Limited restaurant license, per annum .............................................................$780.00 1
(23) Limited golf course license, per annum ...........................................................$720.00 2
(24) Small farm winery wholesaler's license, per annum .......................................$110.00 3
(25) Qualified historic site license, per annum ....................................................$1,030.00 4
(26) Nonquota type 1 license, per annum ........................ ...................................$4,120.00 5
(27) Nonquota type 2 license, per annum ................................................................$830.00 6
(28) Nonquota type 3 license, per annum ................................................................$310.00 7
(29) Distilled spirits and wine storage license, per annum ..................................$620.00 8
(30) Out-of-state distilled spirits and wine supplier's license, per annum ...........$1,550.00 9
(31) Limited out-of-state distilled spirits and wine supplier's 10
license, per annum ..........................................................................................$260.00 11
(32) Authorized public consumption license, per annum ........................................$250.00 12
(33) Direct shipper Type A license, per annum.......................................................$100.00 13
(34) Limited nonquota package license, per annum ................................................$300.00 14
(35) Vintage distilled spirits license, per annum .....................................................$300.00 15
(36) Cannabis-infused beverage retail package license, per annum ..... $500.00[$2,000.00] 16
(37) Cannabis-infused beverage distributor's license, per annum ........................$1,000.00 17
(38) Cannabis-infused beverage distributor's license, 18
supplemental, per annum ..............................................................................$1,000.00 19
(39) Direct shipper Type B license, per annum ....................................................$1,000.00 20
(40) A nonrefundable fee of sixty dollars ($60) shall be charged to process each new 21
transitional license pursuant to KRS 243.045. 22
(41) Other special licenses the board finds necessary for the proper regulation and 23
control of the traffic in distilled spirits and wine and provides for by administr ative 24
regulation. In establishing the amount of license taxes that are required to be fixed 25
by the board, it shall have regard for the value of the privilege granted. 26
(42) The fee for each of the first five (5) supplemental bar licenses shall be the same a s 27
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the fee for the primary retail drink license. There shall be no charge for each 1
supplemental license issued in excess of five (5) to the same licensee at the same 2
premises. 3
A nonrefundable application fee of fifty dollars ($50) shall be charged to proces s each 4
new application under this section, except for subsections (4), (8), (9), (10), (12), (15), 5
(19), and (20) of this section. The application fee shall be applied to the licensing fee if 6
the license is issued; otherwise it shall be retained by the department. 7
Section 12. KRS 260.852 is amended to read as follows: 8
It is the declared policy of the Commonwealth that hemp is a viable agricultural crop in 9
the Commonwealth. The purposes of KRS 260.850 to 260.869 are to: 10
(1) Promote the research and study methods of cultivating, processing, and marketing 11
hemp; 12
(2) Promote the expansion of the Commonwealth's hemp industry [ to the maximum 13
extent permitted by federal law] by allowing citizens of the Commonwealth to 14
cultivate, handle, or process hemp and hemp products for commercial purposes; and 15
(3) Move the Commonwealth and its citizens to the forefront of the hemp industry. 16
Section 13. KRS 260.858 is amended to read as follows: 17
(1) Notwithstanding any other provision of law to the contrary, it is lawful for a 18
licensee, or his or her agent, to cultivate, handle, or process hemp or hemp products 19
in the Commonwealth. 20
(2) It is unlawful for a person who does not hold a license issued by the department, or 21
who is not an agent of a licensee, to cultivate, handle, [ process,] or market living 22
hemp plants or viable seeds, leaf materials, or floral materials derived from hemp. 23
Penalties for persons who cultivate, handle, process, or market living hemp plants 24
or viable seeds, leaf materials, or floral materials derived from hemp without a 25
license are t he same as those penalties that are applicable to persons who violate 26
KRS Chapter 218A, relating to marijuana. 27
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(3) [It is unlawful for a person who does not hold a license issued by the department, or 1
who is not an agent of a licensee, to possess hemp extr act material having a[ delta -2
9] tetrahydrocannabinol concentration in excess of three -tenths of one percent 3
(0.3%). Penalties for persons who possess such hemp extract materials without a 4
license are the same as those penalties that are applicable to perso ns who violate 5
KRS Chapter 218A, relating to marijuana. 6
(4) Nothing in ] This chapter shall not authorize [authorizes] any person to violate any 7
federal or state law or regulation. 8
Section 14. KRS 260.862 is amended to read as follows: 9
(1) In addition to any other powers vested in it by law, the department shall have the 10
authority and power to promulgate administrative regulations to: 11
(a) License persons who wish to cultivate, handle,[ process,] or market hemp; 12
(b) Prescribe rules for a university's participation in, or affiliation with, any hemp 13
program; 14
(c) Prescribe sampling and testing procedures to ensure that hemp and hemp 15
products cultivated, handled, [ processed,] or marketed under the authority of 16
this section do not exceed the concentration levels defined in federal law as it 17
currently exists or as it may be subsequently amended; 18
(d) Prescribe rules for a licensed cultivator or licensed handler to sell hemp 19
floral material to a licensed medical cannabis processor, pr oducer, or 20
dispensary as defined in KRS Chapter 218B so long as the harvested floral 21
material has been grown within the legal framework of the department's 22
hemp program and is tested in accordance with the Commonwealth's 23
medical cannabis program [Define cla sses or categories of hemp products 24
that are eligible for sale, transfer, or distribution to members of the public] ; 25
and 26
(e) Establish a schedule of nonrefundable fees for applicants and licensees. 27
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(2) (a) A[No] person shall not cultivate, handle, [ process ,] or market hemp in the 1
Commonwealth unless the person holds a license issued by the department. 2
(b) Any person seeking to cultivate hemp shall provide to the department the 3
legal description and global positioning coordinates sufficient for locating the 4
fields or greenhouses to be used to grow hemp. 5
(c) Any person seeking to cultivate [ or process] hemp shall provide to the 6
department prior written consent allowing representatives of the department, 7
the Department of Kentucky State Police, and other state and local law 8
enforcement agencies to enter onto all premises where hemp is cultivated, 9
processed, or stored for the purpose of conducting physical inspections or 10
ensuring compliance with the requirements of KRS 260.850 to 260.869 and 11
administrative regulations promulgated by the department. 12
(d) An applicant for a license issued by the department shall submit to and pay for 13
an annual criminal background check conducted by the Department of 14
Kentucky State Police or another state or federal law enforcement ag ency or 15
another entity selected by the department. 16
(e) A[No] person who has been convicted of any felony or any drug -related 17
misdemeanor or violation in the previous ten (10) years from the date of 18
application shall not be eligible to obtain a license, provided, however, that: 19
1. A person who was growing hemp lawfully with a license, registration, 20
or authorization under a pilot program authorized by Section 7606 of the 21
Agricultural Act of 2014, 7 U.S.C. sec. 5940, shall be eligible to obtain 22
a license to grow hemp; and 23
2. A person who was lawfully growing hemp under Section 7606 of the 24
Agricultural Act of 2014 before December 20, 2018, and was convicted 25
prior to December 20, 2018, shall be eligible to obtain a license to grow 26
hemp. 27
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Section 15. Whereas proper regulation of intoxicating products is vitally 1
important to public safety, an emergency is declared to exist, and this Act takes effect 2
upon its passage and approval by the Governor or upon its otherwise becoming a law. 3