Bill pre-filed to legalize recreational marijuana in Kentucky

FRANKFORT, Ky. (WTVQ)- A bill has been pre-filed that would legalize the recreational use of marijuana in Kentucky, if passed.

Representative Cluster Howard says the bill would govern home use and commercial sales while dedicating a sizable portion of tax and license revenues to the state retirement systems’ unfunded liabilities.

He says this bill would also decriminalize possession of less than one ounce of cannabis and provide free expungements for those convicted of a marijuana-related misdemeanor.

A sizable portion of taxes and fees raised by recreational sales would be dedicated to paying down billions of dollars in unfunded liabilities faced by the state’s two main state retirement systems.

Seventy-five percent of the license and wholesale tax fees would go to Kentucky Employees Retirement System, which is the nation’s lowest-funded; and 25 percent would be provided to the Kentucky Teachers Retirement System.  Once funding levels for both systems reach 100 percent, future state license and wholesale tax revenues tied to cannabis would be split evenly among the two systems.

A fiscal note prepared by the Legislative Research Commission says that it would be difficult to gauge the financial impact of adult cannabis sales in Kentucky, since there were too many indeterminate factors.

Rep. Howard’s bill calls for the state Alcoholic Beverage Control Board to oversee four types of licensing – cultivator, processor, tester, and retailer – and each license would have to be renewed annually.  Those possessing one type of license could not hold a license from another category, although those with a retail license could have, with some restrictions, multiple locations in the state.

Under the bill, home growers would have to pay $250 for a permit, which would allow them to have up to five mature plants and five immature ones.  All other licensees would have to pay fees based in part on their size.

Anyone with a prior misdemeanor marijuana conviction that hasn’t been expunged, or who has been convicted of a felony in the last five years or other controlled-substance crime within the past two years, would be barred from purchasing a license.

Under this legislation, each county would have the chance to have at least two retailers selling cannabis and related products, but larger counties would be barred from having more than one per 2,300 people.  Retailers would only be able to sell marijuana-related products.

Sales would be limited to those 21 and older, and smoking cannabis in public would be prohibited.

The legislation will be considered during the General Assembly’s 2020 session, which starts in January.