HB 521

Bill Subjects

Advisory Boards, Commissions, And Committees Appropriations Boards And Commissions Cannabis Corrections Impact Crimes And Punishments Drugs And Medicines Licensing Local Government Local Mandate Retroactive Legislation State Agencies Taxation Trade Practices And Retailing

Abstract

Establish KRS Chapter 245, relating to cannabis, to administer its cultivation, processing, transportation, sale, use, taxation, and licensing; define terms; establish the Cannabis Control Board and its membership, procedures, powers, and duties; direct the board to promulgate administrative regulations for the administration and enforcement of the chapter; set up advisory committees appointed by the board; create the Department of Cannabis Control within the Public Protection Cabinet for the daily oversight of cannabis operations and to provide administrative support for the board; establish various one-year business licenses under the chapter; grant administrative hearings under KRS Chapter 13B to appeal a license denial or revocation; forbid an employer from discriminating against applicants or employees who use cannabis outside of working hours as long as the use does not affect job performance; prohibit a person under 21 from purchasing, possessing, consuming, or using cannabis; establish a revolving account called the "cannabis fund" to collect cannabis licensing fees, fines, excise taxes, and any other funds; form the Social Impact Council as a public agency authorized to distribute moneys from the cannabis fund; set council membership, procedures, powers, and duties; create new sections of KRS Chapter 138 to define terms; impose an excise tax set by the Cannabis Control Board on the first sale or transfer of harvested cannabis; establish excise tax reporting, collection, and liability; amend KRS 139.472 to exempt medical cannabis and accessories from sales and use taxes; create a new section of KRS Chapter 65 to authorize local governments to levy up to a 5% license fee on the gross receipts of a retailer or microbusiness; allow overlapping local governments to agree to levy a combined license fee, with set fee amounts absent an agreement; amend KRS 2.015 to require a person to be 21 or older to purchase cannabis and its products and accessories; create new sections of KRS 218A and amend KRS 218A.1421, 218A.1422, 218A.1423, and 218A.500 to exempt licensed cannabis activities from criminal marijuana offenses; create a new section of KRS Chapter 431 to allow a person to petition the court to expunge the person's misdemeanor marijuana offenses; amend KRS 431.079 to exclude the expungement petition from the certification of eligibility requirement; amend KRS 131.1815 to notify the Cannabis Control Board if a cannabis licensee is a delinquent taxpayer; amend KRS 600.020 to include cannabis offenses in the list of juvenile status offenses; amend KRS 12.020 to add the governmental entities created in KRS Chapter 245 to the list of executive branch government bodies; set initial terms for members of the Cannabis Control Board and Social Impact Council; apply the excise tax beginning on July 1, 2023, and allow cannabis sales beginning on July 1, 2024; Section 31 of Act RETROACTIVE; APPROPRIATION.