AN ACT relating to cannabis-infused beverages.

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AN ACT relating to cannabis-infused beverages. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 241.010 is amended to read as follows: 3
As used in KRS Chapters 241 to 244, unless the context requires otherwise: 4
(1) "Alcohol" means ethyl alcohol, hydrated oxide of ethyl or spirit of wine, from 5
whatever source or by whatever process it is produced; 6
(2) "Alcoholic beverage" means every liquid, solid, powder, or crystal, whether 7
patented or not, containing alcohol in an amount in excess of more than one percent 8
(1%) of alcohol by volume, which is fit for beverage purposes. It inclu des every 9
spurious or imitation liquor sold as, or under any name commonly used for, 10
alcoholic beverages, whether containing any alcohol or not. It does not include the 11
following products: 12
(a) Medicinal preparations manufactured in accordance with formulas prescribed 13
by the United States Pharmacopoeia, National Formulary, or the American 14
Institute of Homeopathy; 15
(b) Patented, patent, and proprietary medicines; 16
(c) Toilet, medicinal, and antiseptic preparations and solutions; 17
(d) Flavoring extracts and syrups; 18
(e) Denatured alcohol or denatured rum; 19
(f) Vinegar and preserved sweet cider; 20
(g) Wine for sacramental purposes; and 21
(h) Alcohol unfit for beverage purposes that is to be sold for legitimat e external 22
use; 23
(3) (a) "Alcohol vaporizing device" or "AWOL device" means any device, machine, 24
or process that mixes liquor, spirits, or any other alcohol product with pure 25
oxygen or by any other means produces a vaporized alcoholic product used 26
for human consumption; 27
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(b) "Alcohol vaporizing device" or "AWOL device" does not include an inhaler, 1
nebulizer, atomizer, or other device that is designed and intended by the 2
manufacturer to dispense a prescribed or over -the-counter medication or a 3
device installed and used by a licensee under this chapter to demonstrate the 4
aroma of an alcoholic beverage; 5
(4) "Automobile race track" means a facility primarily used for vehicle racing that has a 6
seating capacity of at least thirty thousand (30,000) people; 7
(5) "Barrel-aged and batched cocktail" means an alcoholic beverage that is: 8
(a) Composed of: 9
1. Distilled spirits that have been dispensed from their original sealed 10
container; and 11
2. Other ingredients or alcoholic beverages; 12
(b) Placed into a barrel or container on the premises of a retail licensee; and 13
(c) Dispensed from the barrel or container as a retail sale by the drink; 14
(6) "Bed and breakfast" means a one (1) family dwelling unit that: 15
(a) Has guest rooms or suites used, rented, or hired out for occupancy or t hat are 16
occupied for sleeping purposes by persons not members of the single -family 17
unit; 18
(b) Holds a permit under KRS Chapter 219; and 19
(c) Has an innkeeper who resides on the premises or property adjacent to the 20
premises during periods of occupancy; 21
(7) "Board" means the State Alcoholic Beverage Control Board created by KRS 22
241.030; 23
(8) "Bottle" means any container which is used for holding alcoholic beverages for the 24
use and sale of alcoholic beverages at retail; 25
(9) "Brewer" means any person who manufactu res malt beverages or owns, occupies, 26
carries on, works, or conducts any brewery, either alone or through an agent; 27
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(10) "Brewery" means any place or premises where malt beverages are manufactured for 1
sale, and includes all offices, granaries, mash rooms, cooling rooms, vaults, yards, 2
and storerooms connected with the premises; or where any part of the process of the 3
manufacture of malt beverages is carried on; or where any apparatus connected with 4
manufacture is kept or used; or where any of the products o f brewing or 5
fermentation are stored or kept; 6
(11) "Building containing licensed premises" means the licensed premises themselves 7
and includes the land, tract of land, or parking lot in which the premises are 8
contained, and any part of any building connect ed by direct access or by an 9
entrance which is under the ownership or control of the licensee by lease holdings 10
or ownership; 11
(12) "Cannabinoid" means a compound found in the hemp plant Cannabis sativa L. from 12
a United States Department of Agriculture -sanctioned domestic hemp production 13
program and does not include cannabinoids derived from any other substance; 14
(13) "Cannabis-infused beverage": 15
(a) Means a properly permitted adult -use cannabinoid liquid product intended for 16
human consumption that has intoxicating properties that change the function 17
of the nervous system and results in alterations of perception, cognition, or 18
behavior a nd shall not contain more than ten (10) [five (5)] milligrams of 19
intoxicating adult-use cannabinoids per twelve (12) ounce serving; and 20
(b) Shall not include: 21
1. Medicinal cannabis regulated under KRS Chapter 218B; 22
2. Any type of hemp tincture; and 23
3. Any product containing solely nonintoxicating cannabinoids; 24
(14) "Caterer" means a person operating a food service business that prepares food in a 25
licensed and inspected commissary, transports the food and alcoholic beverages to 26
the caterer's designated and in spected banquet hall or to an agreed location, and 27
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serves the food and alcoholic beverages pursuant to an agreement with another 1
person; 2
(15) "Charitable organization" means a nonprofit entity recognized as exempt from 3
federal taxation under Section 501(c) of the Internal Revenue Code, 26 U.S.C. sec. 4
501(c), or any organization having been established and continuously operating 5
within the Commonwealth of Kentucky for charitable purposes for three (3) years 6
and which expends at least sixty percent (60%) of i ts gross revenue exclusively for 7
religious, educational, literary, civic, fraternal, or patriotic purposes; 8
(16) "Cider" means any fermented fruit -based beverage containing seven percent (7%) 9
or more alcohol by volume and includes hard cider and perry cider; 10
(17) "City administrator" means city alcoholic beverage control administrator; 11
(18) "Commercial airport" means an airport through which more than five hundred 12
thousand (500,000) passengers arrive or depart annually; 13
(19) (a) "Commercial quadricycle" mea ns a vehicle equipped with a minimum of ten 14
(10) pairs of fully operative pedals for propulsion by means of human 15
muscular power and which: 16
1. Has four (4) wheels; 17
2. Is operated in a manner similar to that of a bicycle; 18
3. Is equipped with a minimum of thirteen (13) seats for passengers; 19
4. Has a unibody design; 20
5. Is equipped with a minimum of four (4) hydraulically operated brakes; 21
6. Is used for commercial tour purposes; 22
7. Is operated by the vehicle owner or an employee of the owner; and 23
8. Has an electrical assist system that shall only be used when traveling to 24
or from its storage location while not carrying passengers. 25
(b) A "commercial quadricycle" is not a motor vehicle as defined in KRS 186.010 26
or 189.010; 27
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(20) "Commissioner" means the commissioner of the Department of Alcoholic Beverage 1
Control; 2
(21) "Consumer" means a person, persons, or business organization who purchases 3
alcoholic beverages and who: 4
(a) Does not hold a license or permit issued by the department; 5
(b) Purchases the alcoholic beve rages for personal consumption only and not for 6
resale; 7
(c) Is of lawful drinking age; and 8
(d) Receives the alcoholic beverages in territory where the alcoholic beverages 9
may be lawfully sold or received; 10
(22) "Convention center" means any facility which, in its usual and customary business, 11
provides seating for a minimum of one thousand (1,000) peo ple and offers 12
convention facilities and related services for seminars, training and educational 13
purposes, trade association meetings, conventions, or civic and community events 14
or for plays, theatrical productions, or cultural exhibitions; 15
(23) "Convicted" and "conviction" means a finding of guilt resulting from a plea of 16
guilty, the decision of a court, or the finding of a jury, irrespective of a 17
pronouncement of judgment or the suspension of the judgment; 18
(24) "County administrator" means county alcoholic beverage control administrator; 19
(25) "Department" means the Department of Alcoholic Beverage Control; 20
(26) "Dining car" means a railroad passenger car that serves meals to consumers on any 21
railroad or Pullman car company; 22
(27) "Discount in the usual course of business" means price reductions, rebates, refunds, 23
and discounts given by wholesalers to distilled spirits and wine retailers pursuant to 24
an agreement made at the time of the sale of the merchandise involved and are 25
considered a part of the sales tr ansaction, constituting reductions in price pursuant 26
to the terms of the sale, irrespective of whether the quantity discount was: 27
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(a) Prorated and allowed on each delivery; 1
(b) Given in a lump sum after the entire quantity of merchandise purchased had 2
been delivered; or 3
(c) Based on dollar volume or on the quantity of merchandise purchased; 4
(28) "Distilled spirits" or "spirits" means any product capable of being consumed by a 5
human being which contains alcohol obtained by distilling, mixed with water or 6
other substances in solution, except wine, hard cider, and malt beverages; 7
(29) "Distiller" means any person who is engaged in the business of manufacturing 8
distilled spirits at any distillery in the state and is registered in the Office of the 9
Collector of Internal Revenue for the United States at Louisville, Kentucky; 10
(30) "Distillery" means any place or premises where distilled spirits are manufactured 11
for sale, and which are registered in the office of any collector of internal revenue 12
for the United States. It includes any United States government bonded warehouse; 13
(31) "Distributor" means any person who distributes malt beverages for the purpose of 14
being sold at retail; 15
(32) "Dry" means a territory in which a majority of the electorate voted to prohibit a ll 16
forms of retail alcoholic beverage sales through a local option election held under 17
KRS Chapter 242; 18
(33) "Election" means: 19
(a) An election held for the purpose of taking the sense of the people as to the 20
application or discontinuance of alcoholic bever age sales under KRS Chapter 21
242; or 22
(b) Any other election not pertaining to alcoholic beverages; 23
(34) "Horse racetrack" means a facility licensed to conduct a horse race meeting under 24
KRS Chapter 230; 25
(35) "Hotel" means a hotel, motel, or inn for accommod ation of the traveling public, 26
designed primarily to serve transient patrons; 27
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(36) "Investigator" means any employee or agent of the department who is regularly 1
employed and whose primary function is to travel from place to place for the 2
purpose of visitin g licensees, and any employee or agent of the department who is 3
assigned, temporarily or permanently, by the commissioner to duty outside the main 4
office of the department at Frankfort, in connection with the administration of 5
alcoholic beverage statutes; 6
(37) "License" means any license issued pursuant to KRS Chapters 241 to 244; 7
(38) "Licensee" means any person to whom a license has been issued, pursuant to KRS 8
Chapters 241 to 244; 9
(39) "Limited restaurant" means: 10
(a) A facility where the usual and custom ary business is the preparation and 11
serving of meals to consumers, which has a bona fide kitchen facility, which 12
receives at least seventy percent (70%) of its food and alcoholic beverage 13
receipts from the sale of food, which maintains a minimum seating capacity of 14
fifty (50) persons for dining, which has no open bar, which requires that 15
alcoholic beverages be sold in conjunction with the sale of a meal, and which 16
is located in a wet or moist territory under KRS 242.1244; or 17
(b) A facility where the usual a nd customary business is the preparation and 18
serving of meals to consumers, which has a bona fide kitchen facility, which 19
receives at least seventy percent (70%) of its food and alcoholic beverage 20
receipts from the sale of food, which maintains a minimum seating capacity of 21
one hundred (100) persons of dining, and which is located in a wet or moist 22
territory under KRS 242.1244; 23
(40) "Local administrator" means a city alcoholic beverage control administrator, county 24
alcoholic beverage control administrator, or urban -county alcoholic beverage 25
control administrator; 26
(41) "Malt beverage" means any fermented undistilled alcoholic beverage of any name 27
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or description, manufactured from malt wholly or in part, or from any substitute for 1
malt, and includes weak cider; 2
(42) "Manufacture" means distill, rectify, brew, bottle, and operate a winery; 3
(43) "Manufacturer" means a winery, distiller, rectifier, or brewer, and any other person 4
engaged in the production or bottling of alcoholic beverages; 5
(44) "Marina" means a dock or basin providing moorings for boats and offering supply, 6
repair, or other services for remuneration; 7
(45) "Minor" means any person who is not twenty-one (21) years of age or older; 8
(46) "Moist" means a territory in which a majority of the electorate voted to permit 9
limited alcoholic beverage sales by any one (1) or a combination of special limited 10
local option elections authorized by KRS Chapter 242; 11
(47) "Population" means the population figures established by the federal decennial 12
census for a census year or the current yearly population estimates prepared by t he 13
Kentucky State Data Center, Urban Studies Center of the University of Louisville, 14
Louisville, Kentucky, for all other years; 15
(48) "Premises" means the land and building in and upon which any business regulated 16
by alcoholic beverage statutes is operated or carried on. "Premises" shall not 17
include as a single unit two (2) or more separate businesses of one (1) owner on the 18
same lot or tract of land, in the same or in different buildings if physical and 19
permanent separation of the premises is maintained, ex cluding employee access by 20
keyed entry and emergency exits equipped with crash bars, and each has a separate 21
public entrance accessible directly from the sidewalk or parking lot. Any licensee 22
holding an alcoholic beverage license on July 15, 1998, shall no t, by reason of this 23
subsection, be ineligible to continue to hold his or her license or obtain a renewal, 24
of the license; 25
(49) "Primary source of supply" or "supplier" means the distiller, winery, brewer, 26
producer, owner of the commodity at the time it be comes a marketable product, 27
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bottler, or authorized agent of the brand owner. In the case of imported products, 1
the primary source of supply means either the foreign producer, owner, bottler, or 2
agent of the prime importer from, or the exclusive agent in, t he United States of the 3
foreign distiller, producer, bottler, or owner; 4
(50) "Private club" means a nonprofit social, fraternal, military, or political organization, 5
club, or nonprofit or for -profit entity maintaining or operating a club room, club 6
rooms, or premises from which the general public is excluded; 7
(51) "Private selection event" means a private event with a licensed distiller during 8
which participating consumers, retail licensees, wholesalers, distributors, or a 9
distillery's own representatives s elect a single barrel or a blend of barrels of the 10
distiller's products to be specially packaged for the participants; 11
(52) "Private selection package" means a bottle of distilled spirits sourced from the 12
barrel or barrels selected by participating consume rs, retail licensees, wholesalers, 13
distributors, microbreweries that hold a quota retail drink or quota retail package 14
license, or a distillery's own representatives during a private selection event; 15
(53) "Public nuisance" means a condition that endangers safety or health, is offensive to 16
the senses, or obstructs the free use of property so as to interfere with the 17
comfortable enjoyment of life or property by a community or neighborhood or by 18
any considerable number of persons; 19
(54) "Qualified historic site" means: 20
(a) A contributing property with dining facilities for at least fifty (50) persons at 21
tables, booths, or bars where food may be served within a commercial district 22
listed in the National Register of Historic Places; 23
(b) A site that is listed as a National Historic Landmark or in the National 24
Register of Historic Places with dining facilities for at least fifty (50) persons 25
at tables, booths, or bars where food may be served; 26
(c) A distillery which is listed as a National Historic Landmark and which 27
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conducts souvenir retail package sales under KRS 243.0305; or 1
(d) A not-for-profit or nonprofit facility listed on the National Register of Historic 2
Places; 3
(55) "Rectifier" means any person who rectifies, purifies, or refines distilled spirits, 4
malt, or wine by any process other than as provided for on distillery premises, and 5
every person who, without rectifying, purifying, or refining distilled spirits by 6
mixing alcoholic beverages with any materials, manufactures any imitations of or 7
compounds liquors for sale under the name of whiskey, brandy, gin, rum, wine, 8
spirits, cordials, bitters, or any other name; 9
(56) "Repackaging" means the placing of alcoholic beverages in any retail container 10
irrespective of the material from which the container is made; 11
(57) "Restaurant" means a facility where the usual and customary business is the 12
preparation and serving of meals to consumers, that has a bona fide kitchen facility, 13
and that receives at least fifty percent (50%) of its food and alcoholic beverage 14
receipts from the sale of food at the premises; 15
(58) "Retail container" means any bottle, can, barrel, or other container which, without a 16
separable intermediate container, holds alcoholic beverages and is suitable and 17
destined for sale to a retail outlet, whether it is suitable for delivery or shipment to 18
the consumer or not; 19
(59) "Retail sale" means any sale of alcoholic beverages to a consumer, including those 20
transactions taking place in person, electronically, online, by mail, or by telephone; 21
(60) "Retailer" m eans any licensee who sells and delivers any alcoholic beverage to 22
consumers, except for manufacturers with limited retail sale privileges and direct 23
shipper licensees; 24
(61) "Riverboat" means any boat or vessel with a regular place of mooring in this state 25
that is licensed by the United States Coast Guard to carry forty (40) or more 26
passengers for hire on navigable waters in or adjacent to this state; 27
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(62) "Sale" means any transfer, exchange, or barter for consideration, and includes all 1
sales made by any p erson, whether principal, proprietor, agent, servant, or 2
employee, of any alcoholic beverage; 3
(63) "Service bar" means a bar, counter, shelving, or similar structure used for storing or 4
stocking supplies of alcoholic beverages that is a workstation where e mployees 5
prepare alcoholic beverage drinks to be delivered to customers away from the 6
service bar; 7
(64) "Sell" includes solicit or receive an order for, keep or expose for sale, keep with 8
intent to sell, and the delivery of any alcoholic beverage; 9
(65) "Small farm winery" means a winery whose wine production is not less than two 10
hundred fifty (250) gallons and not greater than five hundred thousand (500,000) 11
gallons in a calendar year; 12
(66) "Souvenir package" means a special package of distilled spirits available from a 13
licensed retailer that is: 14
(a) Available for retail sale at a licensed Kentucky distillery where the distilled 15
spirits were produced or bottled; or 16
(b) Available for retail sale at a licensed Kentucky distillery but produced or 17
bottled at another of that distiller's licensed distilleries in Kentucky; 18
(67) "State administrator" or "administrator" means the distilled spirits administrator or 19
the malt beverages administrator, or both, as the context requires; 20
(68) "State park" means a state park that has a: 21
(a) Nine (9) or eighteen (18) hole golf course; or 22
(b) Full-service lodge and dining room; 23
(69) "Supplemental bar" means a bar, counter, shelving, or similar structure used for 24
serving and selling distilled spirits or wine by the drink for c onsumption on the 25
licensed premises to guests and patrons from additional locations other than the 26
main bar; 27
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(70) "Territory" means a county, city, district, or precinct; 1
(71) "Urban-county administrator" means an urban -county alcoholic beverage control 2
administrator; 3
(72) "Valid identification document" means an unexpired, government -issued form of 4
identification that contains the photograph and date of birth of the individual to 5
whom it is issued; 6
(73) "Vehicle" means any device or animal used to carry, convey, transport, or otherwise 7
move alcoholic beverages or any products, equipment, or appurtenances used to 8
manufacture, bottle, or sell these beverages; 9
(74) "Vintage distilled spirit" means: 10
(a) A private selection package; or 11
(b) A package or packages of distilled spirits that: 12
1. Are in their original manufacturer's unopened container; 13
2. Are not owned by a distillery; and 14
3. Are not otherwise available for purchase from a licensed wholesaler 15
within the Commonwealth; 16
(75) (a) "Vintage distilled spirits seller" means a nonlicensed person at least twenty -17
one (21) years of age who is: 18
1. An administrator, executor, receiver, or other fiduciary who receives and 19
sells vintage distilled spirits in execution of the person's fiduciary 20
capacity; 21
2. A creditor who receives or takes possession of vintage distilled spirits as 22
security for, or in payment of, debt, in whole or in part; 23
3. A public officer or court official who levies on vintage distilled spirits 24
under order or process of any court or magistrate to sel l the vintage 25
distilled spirits in satisfaction of the order or process; or 26
4. Any other person not engaged in the business of selling alcoholic 27
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beverages. 1
(b) "Vintage distilled spirits seller" does not mean: 2
1. A person selling alcoholic beverages as par t of an approved KRS 3
243.630 transfer; or 4
2. A person selling alcoholic beverages as authorized by KRS 243.540; 5
(76) "Warehouse" means any place in which alcoholic beverages are housed or stored; 6
(77) "Weak cider" means any fermented fruit -based beverage containing more than one 7
percent (1%) but less than seven percent (7%) alcohol by volume; 8
(78) "Wet" means a territory in which a majority of the electorate voted to permit all 9
forms of retail alcoholic beverage sales by a local option election under KRS 10
242.050 or 242.125 on the following question: "Are you in favor of the sale of 11
alcoholic beverages in (name of territory)?"; 12
(79) "Wholesale sale" means a sale to any person for the purpose of resale; 13
(80) "Wholesaler" means any person who distributes alcoholic beverages for the purpose 14
of being sold at retail, but it shall not include a subsidiary of a manufacturer or 15
cooperative of a retail outlet; 16
(81) "Wine" means the product of the normal alcoholic fermentation of the juices of 17
fruits, with the usual processes of manufacture and normal additions, and includes 18
champagne and sparkling and fortified wine of an alcoholic c ontent not to exceed 19
twenty-four percent (24%) by volume. It includes sake, cider, hard cider, and perry 20
cider and also includes preparations or mixtures vended in retail containers if these 21
preparations or mixtures contain not more than fifteen percent (1 5%) of alcohol by 22
volume. It does not include weak cider; and 23
(82) "Winery" means any place or premises in which wine is manufactured from any 24
fruit, or brandies are distilled as a by -product of wine or other fruit, or cordials are 25
compounded, except a pla ce or premises that manufactures wine for sacramental 26
purposes exclusively. 27