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Bill > HB9


KY HB9

KY HB9
AN ACT relating to regulated substances and declaring an emergency.


summary

Introduced
03/04/2026
In Committee
03/11/2026
Crossed Over
03/11/2026
Passed
Dead

Introduced Session

Potential new amendment
2026 Regular Session

Bill Summary

Create new sections of KRS Chapter 138 to define terms; impose a 4% state retail regulatory license fee on all alcoholic beverage and cannabis-infused beverage sales to consumers by alcoholic beverage retailers; establish procedures and duties of retailers; impose state wholesale regulatory license fees on alcoholic beverages and cannabis-infused beverages and state retail regulatory license fees on kratom, hemp-derived, and cannabinoid products; set out regulatory license fee rates, deductions for timely filing and payment, and licensee duties; amend KRS 211.285 to fund the alcohol wellness and responsibility education fund with 0.5% of the collected state retail regulatory license fees; create a new section of KRS Chapter 217 to establish Department for Public Health laboratory and testing standards and procedures; amend KRS 241.010 to define "state or national conference" and redefine "alcoholic beverages"; amend KRS 241.069 to delete outdated language; amend various sections of KRS Chapter 243 to establish state license fees for new and existing license types; limit licensee discipline to only the specific license in question; establish a souvenir package license for distillers; authorize distillers, small farm wineries, and microbreweries to allow leashed dogs on their premises; allow caterers and special temporary auction licensees at state and national conferences; modify the privileges for various licensees, including a wholesaler, Class B distiller, and special agent or solicitor; add references to the new tax structure and statutes; modify requirements for public notice of a license application; sunset existing excise, wholesale, and other taxes on July 1, 2027, as they relate to alcoholic beverages and cannabis-infused beverages; repeal and reenact KRS 243.075, relating to local regulatory license fees, to allow any moist or wet city or county to impose the fee; authorize audits of each city's or county's regulatory license fee fund by the Auditor of Public Accounts for the most recent 10 years; describe audit penalties for cities and counties that fail to substantially comply; direct cities and counties to reduce the regulatory license fee to 3% within 4 years; limit future cities and counties to a 1% regulatory license fee; amend KRS 244.080 to permanently prohibit a retail license from using a premises if the licensee sold to minors at that premises 3 or more times in 24 months; amend KRS 244.585 to establish limitations for agreements between distributors and breweries or microbreweries; amend KRS 131.250, 139.010, 243.045, 243.430, 243.790, 243.850, and 243.990 to conform; EFFECTIVE, in part, July 1, 2027; EMERGENCY.

AI Summary

This bill enacts significant changes to the regulation and taxation of alcoholic beverages and cannabis-infused beverages in Kentucky, effective July 1, 2027, with some provisions taking effect immediately due to an declared emergency. Key provisions include the imposition of a new 4% state retail regulatory license fee on all alcoholic beverage and cannabis-infused beverage sales to consumers by retailers, alongside new state wholesale regulatory license fees on alcoholic beverages and cannabis-infused beverages, as well as retail fees on kratom, hemp-derived, and cannabinoid products. Existing excise, wholesale, and other taxes on these products will be sunset on July 1, 2027. The bill also establishes laboratory and testing standards for the Department for Public Health, redefines terms like "state or national conference" and "alcoholic beverages," and modifies various state license fees and privileges for different types of licensees, such as allowing leashed dogs on the premises of distillers, small farm wineries, and microbreweries. Furthermore, it allows for caterers and special temporary auction licensees at state and national conferences, limits licensee discipline to the specific license in question, and creates a souvenir package license for distillers. Local governments will be authorized to impose regulatory license fees on alcoholic beverage and cannabis-infused beverage sales, with audits by the Auditor of Public Accounts and directives for cities and counties to reduce their regulatory license fees over time, ultimately limiting them to a 1% fee for new entrants. The bill also permanently prohibits a retail license from being used if the licensee sold to minors at that premises three or more times in 24 months and establishes limitations for agreements between distributors and breweries or microbreweries.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

House Committee Substitute - Fiscal Note to House Committee Substitute 1 (on 03/12/2026)

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