AN ACT relating to the regulation of psychoactive substances.

Establish KRS Chapter 239 and create new sections to establish the Department of Psychoactive Substances; define terms; make the department responsible for the oversight, regulation, and enforcement of cannabis, kratom, and designated hemp products; grant the department jurisdiction over regulated products and regulated adult-use products, which are a type of regulated products that include lawful products with psychoactive effects meant for human consumption; set out the functions, powers, and duties of the department, including the creation of a Regulated Products Control Board; establish hemp and kratom divisions within the department and the categories for licensure; authorize the department to promulgate administrative regulations, limit numbers of licenses, and set licensing fees; establish procedures for license denial, suspension, and revocation, and other disciplinary matters; prohibit use of regulated adult-use products by anyone under 21; move control over cannabis-infused beverages and direct shippers of regulated adult-use products from the Department of Alcoholic Beverage Control to the Department of Psychoactive Substances; create the Kentucky hemp fund and the Department of Psychoactive Substances fund; establish laboratory and testing standards and procedures; exempt designated persons from prosecution or discipline, including attorneys who represent those affiliated with regulated adult-use products; amend KRS 12.020 and 12.252 to place the Department of Psychoactive Substances in the Public Protection Cabinet; amend KRS 217.039 to move regulation of hemp-derived cannabinoids and manufacturers of cannabis-infused beverages to the Department of Psychoactive Substances from the Department for Public Health; amend KRS 2.015, 138.870, 218A.010, 218B.010, 218B.015, 218B.090, 260.852, 260.858, 260.862, 260.8635, and various sections of KRS Chapters 241 to 244 to conform; require the Department of Agriculture, Department for Public Health, and Department of Alcoholic Beverage Control to transfer relevant licensee data to the Department of Psychoactive Substances; repeal KRS 243.401, 243.403, and 243.405.