BR 161 Cannabis Freedom Act Summary

Section 1 (New Section of KRS Chapter 245)

Definitions
Section 2 (New Section of KRS Chapter 245)
Personal possession, use, and cultivation limits
Persons 21 years and older may:
Possess up to 1 ounce of cannabis on their person;
Cultivate up to 5 cannabis plants;
Store excess cannabis lawfully grown for personal use at the location where it was cultivated; or
Transfer up to 1 ounce of cannabis to another person age 21 or older without remuneration
Possession exemption for persons under 21 if recommended by a licensed physician
Section 3 (New Section of KRS Chapter 245)
Prohibition on smoking cannabis in public
Maximum penalty: $100 fine
Section 4 (New Section of KRS Chapter 245)
Prohibitions on access to retail cannabis facilities
Persons under 21 years of age shall not:
o Enter retail cannabis facilities to purchase cannabis or cannabis products;
o Possess, purchase, or attempt to possess or purchase cannabis or cannabis products;
o Misrepresent their age or use false identification to induce an illegal sale of cannabis or cannabis
products; or
o Remain on any premises that sells cannabis or cannabis products
Licensees, their agents, or employees are prohibited from permitting persons under 21 years of age from
remaining on any premises where cannabis and cannabis products are sold
o Maximum penalty: Class B misdemeanor
Section 5 (New Section of KRS Chapter 245)
Prohibition on unlawful possession of cannabis
Maximum penalty: $250 fine
Section 6 (New Section KRS Chapter 245)
Personal cultivation requirements
Person who chooses to cultivate for personal consumption must take reasonable precautions to ensure that any
cannabis or cannabis plants are secure from unauthorized access and access by persons under twenty-one years
of age.
Persons shall only cultivate cannabis for personal consumption on property that they own or with the consent of
the person in lawful possession of the property.
o Maximum penalty: $500 fine

Section 7 (New Section KRS Chapter 245)

Prohibition on unlawful cultivation of cannabis (ULCC) with the intent to sell or transfer it for valuable consideration
ULCC of 11 or more cannabis plants
o Maximum penalty: Class D felony
ULCC of 6-10 cannabis plants

o Maximum penalty: Class A misdemeanor

ULCC of 5 or fewer cannabis plants
o Maximum penalty: Class B misdemeanor
ULCC of six or more cannabis plants creates a presumption that unlawful cultivation was for sale or transfer
Section 8 (New Section of KRS Chapter 245)
Department of Alcoholic Beverage and Cannabis Control (ABCC) to promulgate administrative regulations to implement
various aspects of Act within 180 days of the Act becoming law.
Section 9 (New Section of KRS Chapter 245)
ABCC to create licenses to operate the following cannabis-related entities:
Cannabis cultivation facility;
Cannabis processing facility;
Cannabis testing facility; or
Retail cannabis facility.
Licenses created pursuant to this section shall cost $5,000 and be valid for 12 months from the date of issuance
Section 10 (New Section of KRS Chapter 245)
Licensure requirements
Applicant must pay nonrefundable $100 application fee which will be applied to their licensing fee if a license is issued to
the applicant
ABCC shall:
Create uniform license application form;
Issue a license to an applicant unless:
o The applicant has been convicted of crime which would qualify them as a violent offender;
o The applicant falsifies information on the application for a license; or
o The applicant has had a previous license issued by ABCC revoked within the 12 months prior to the
reapplication.
Section 11 (New Section of KRS Chapter 245)
Excise tax imposed on licensees operating cannabis cultivation facilities selling or transferring cannabis to either a
cannabis processing facility or a retail cannabis facility.
Effective January 1, 2017:
$30 per ounce on all cannabis flowers
$10 per ounce on all parts of the cannabis plant other than the flowers
$10 per immature cannabis plant
Reporting requirements
Department of Revenue may prescribe forms and promulgate administrative regulations to collect taxes created under
this section
Section 12 (New Section of KRS Chapter 245)
Creates a revolving trust and agency account from licensure, renewal, and administrative fees
Account to be used for the enforcement of the Act by ABCC
Section 13 (New Section of KRS Chapter 245)
The Kentucky Responsible Cannabis Use Program (KRCUP) fund is created as a restricted fund
The KRCUP fund is comprised off all the excise tax revenue collected under Section 11 of the Act and all the sales and
use tax revenue collected on cannabis and cannabis products
The proceeds contained in the fund are to be distributed according to the following formula:

30% of funds to go the public school fund to support education excellence in Kentucky (SEEK);
20% of funds to go to the Kentucky Department of Education for scholarships based on socioeconomic need for
students to attend public institutions of postsecondary education in Kentucky;
20% of funds to go to the Office of Drug Control Policy to dispense grants to substance abuse treatment
programs that employ evidence-based behavioral health treatments or medically assisted treatment;
15% of funds to go to the Kentucky Law Enforcement Council to dispense grants to county and local law
enforcement agencies to buy protective equipment, communications equipment, and training; and
15% shall be deposited into the general fund.

Section 14 (New Section of KRS Chapter 245)

$500 Civil penalty for each violation of KRS Chapter 245
$1000 Civil penalty for failing to maintain written tax records and reports required by the Department of Revenue
Section 15 (New Section of KRS Chapter 245)
Corporate and individual liability for violations of KRS Chapter 245
Section 16 (New Section of KRS Chapter 245)
Cannabis or cannabis products which are held, owned, or possessed by any person other than those authorized by KRS
Chapter 245 is declared contraband
The ABCC can dispose of contraband cannabis and cannabis products using the same procedures and protocols that they
currently use for contraband alcoholic beverages
Section 17 (New Section of KRS Chapter 100)
Prevents local political subdivisions with zoning power from:
Using their zoning power to institute a moratorium on cannabis-related entities;
Using their zoning power to discriminate against cannabis-related entities by treating them differently from
other similar entities;
Using their zoning power to impose more stringent security requirements than those required by ABCC; or
Imposing additional fees in excess of what other applicants seeking to operate a business are charged.
Section 18 (New Section of KRS Chapter 65)
Prevents county and local governments from instituting de facto or de jure moratoriums on cannabis-related entities.
Section 19 (New Section of KRS Chapter 311)
Allows any licensed physicians acting in good faith to recommend cannabis or cannabis products to their patients.
Physicians who recommend cannabis or cannabis products to patients under the age of 18 must obtain parental consent
and a second recommendation from another licensed physician.
Provides civil, criminal, and licensing immunity to physicians who, in good faith, recommend cannabis or cannabis
products
Section 20 (Amends KRS 12.020)
Renames the Department of Alcoholic Beverage and Cannabis Control
Establishes the Division of Cannabis
Section 21 (Amends KRS 241.010)
Amends definition of board and department to reflect the addition of cannabis
Section 22 (Amends KRS 241.015)
Renames the Department of Alcoholic Beverage and Cannabis Control

Section 23 (Amends KRS 241.020)

Empowers the Department of Alcoholic Beverages and Cannabis Control to regulate traffic in cannabis and cannabis
products.
Creates the Division of Cannabis to administer the laws in relation cultivation, processing, testing, and sale of cannabis
and cannabis products.
Section 24 (Amends KRS 241.030)
Adds one appointed position to the Alcoholic Beverage and Cannabis Control Board to act as director of the Division of
Cannabis.
Section 25 (Amends KRS 2.015)
Amends the age of majority statute in regards to cannabis.
Section 26 (Amends KRS 218A.010)
Removes the definition of marijuana from Kentuckys Controlled Substances Act.
Section 27 (Amends KRS 218A.050)
Removes marijuana, tetrahydrocannabinols, and hashish from the list of Schedule I controlled substances.
Section 28 (Amends KRS 218A.510)
Removes references to marijuana and hashish from the definition of drug paraphernalia.
Section 29 (Amends KRS 260.850)
Removes industrial hemp from the definition of cannabis.
Section 30 (Amends KRS 600.020)
Includes cannabis offenses in the definition of status offense action under Kentuckys Juvenile Code.
Section 31 (Amends KRS 610.010)
Grants jurisdiction of juvenile cases involving cannabis to either the juvenile session of District Court or the family
division of the Circuit Court.
Section 32 (Amends 630.020)
Adds cannabis offenses to list of status offenses which have to be adjudicated in juvenile court.
Section 33 (Amends KRS 218A.276)
Removes obsolete reference to marijuana statutes that would be repealed if this Act becomes law.
Section 34 (Amends KRS 630.120)
Prevents juveniles who are adjudicated guilty of cannabis offenses from being committed to the Department of Juvenile
Justice for detention (mirrors alcohol and tobacco offenses)
Section 35 (Amends KRS 131.650)
Removes obsolete reference to a taxing statute which would be repealed if this Act becomes law.
Section 36 (Repeals KRS 138.870, 138.872, 138.874, 138.876, 138.878, 138.880, 138.882,138.884, 138.885, 138.886,
138.888, 138.889, 218A.1421, 218A.1422, 218A.1423)
Section 37 (Short Title: Cannabis Freedom Act)