2016 Interim LEGISLATIVE Volume 29, No. 6 October 2016 * Read on-line at www.lrc.ky.gov/legislation.htm RECORD Lawmakers learn Bill to target fentanyl economic impact trafficking heard by panel by Rebecca Hanchett of alcohol law LRC Public Information GRAYSON—Jessamine County Sheriff updates Kevin Corman can think of days when Nicho- Calling the drug epidemic lasville has averaged two to four drug overdoses “Kentucky’s greatest threat in by Jim Hannah in 24 hours. Much of the blame for that, he told LRC Public Information state lawmakers last week, goes to heroin and the general,” Attorney General Andy abuse of the pain killer fentanyl. When the greatest updating of alcohol Beshear covered highlights of the The combination of the two drugs can in- regulations since the repeal of Prohibition crease the potency of heroin by up to 50 times, bill which would not only classify passed the Kentucky General Assembly ear- according to drug enforcement agencies. Hun- lier this year, leaders across the state said it fentanyl analogues as Schedule I dreds of overdoses in central and northern Ken- would help maximize the economic impact of tucky in recent months have been attributed to drugs but make trafficking in any a worldwide thirst for bourbon and birth of the mixture. Nationwide, more than 29,000 peo- the craft beer industry. amount of fentanyl or its ple died from overdoes of heroin and painkillers But the lasting impact of the law, known including OxyContin, hydrocodone or fentanyl analogues a felony. as Senate Bill 11, may be the number of Ken- in 2014 alone. tuckians going to the polls to decide whether And drug use is only part of the problem, alcohol should be sold in their communities, Corman told the Interim Joint Committee on Kentucky Department of Alcoholic Beverage Judiciary on Oct. 7 at Ashland Community and Control Commissioner Christy Trout said at There are at least 800 known fentanyl ana- Technical College. The other part is drug traf- the Oct. 14 meeting of the Interim Joint Com- logues and could be 1,000 or more, according to ficking which is extremely lucrative where drugs mittee on Licensing and Occupations. committee testimony. like fentanyl are involved. A small amount can Following the demise of Prohibition, Calling the drug epidemic “Kentucky’s bring big money on the streets, he explained. many communities across Kentucky decided greatest threat in general,” Beshear covered high- “I read something the other day that you to remain “dry” or “moist,” which meant that lights of the bill which would not only classify can take $10 of this fentanyl and make $5000 alcohol sales were banned or restricted. Trout fentanyl analogues as Schedule I drugs but make worth on the street,” said Corman. said SB 11 made it easier for communities to trafficking in any amount of fentanyl or its ana- Nodding in agreement next to Corman roll back 1930s-era alcohol regulations. Now, logues a Class C felony for the first offense and a was Kentucky Attorney General Andy Beshear any incorporated city, regardless of size, may Class B felony for the second or subsequent of- who was at the meeting with State Rep. Russ hold a local option election, meaning they can fense. The penalty would be pared down if the Meyer, D-Nicholasville, and Rep Dennis Keene, vote on whether to legalize the sale of alcohol- person had a “substance use disorder” at the D-Wilder, to support a bill proposed by Rep. ic beverages or become “wet”. time the offense was committed. Trafficking 10 Meyer that would add fentanyl analogues, or SB 11 also provided for local option elec- grams of more of fentanyl, including fentanyl knock-offs, not approved for human consump- tions on the precinct level for distilleries who analogues, would be a Class B felony under the tion to the list of highly-addictive Schedule I find themselves in dry or moist areas. proposal. drugs under state law. Schedule I drugs, which “Senate Bill 11 is strengthening our fa- Judiciary Committee Co-Chair Sen. Whit- include heroin and LSD, have no currently ac- Continued on page 2 cepted medical treatment use in the U.S. Continued on page 2 THE KENTUCKY GENERAL ASSEMBLY 1 tional av- level they were at before 2011. Fentanyl, erage for From his perspective, Corman said the is- heroin sue isn’t just about drug overdoses. It’s about an from page 1 “This is getting to the overdoses increase in crime overall which he linked to the point that probably 90 in 2009- drug culture. ney Westerfield, R-Hopkinsville, asked Beshear 2010. Af- “This is getting to the point that probably 90 if substance use disorder as defined in the bill percent of all crime is ter HB 463 percent of all crime is related to this problem,” would require a diagnosis or just a court finding. related to this problem. was signed, said Corman. “You look at burglaries, thefts, Beshear said the determination would just take a he said, robberies, a lot of your domestic violence… court finding under current language, and Mey- You look at burglaries, the state’s Somehow we have to put a lid on this and start er said that could be spelled out in the bill. thefts, robberies, a lot of heroin winning,” he told the committee. Sen. John Schickel, R-Union, was admitted- overdoses The committee also received testimony on ly emotional when he spoke about the heroin ep- your domestic violence… spiked. He a proposed Reentry Drug Supervision Pilot Pro- idemic and its impact on Boone County where Somehow we have to put suggested gram explained by Rep. Lewis Nicholls, D-Gree- he lives. He cast some of the blame on House the drug nup, heard a presentation on an evidence-based Bill 463 passed by the 2011 Kentucky General a lid on this and start penalties drug recovery model from the organization Cel- Assembly. The bill, now law for over five years, winning.” amended ebrating Families, and received an update on reduced some drug penalties while moving de- by HB 463 gross misdemeanors legislation pre-filed for the fendants into drug treatment. Sheriff Kevin Corman be raised 2017 legislative session that is similar to a bill Schickel said Kentucky was below the na- back to the considered last session. “This has expanded the industry,” Trout told Alcohol law, the legislative panel. “As you are probably aware, West Sixth (Brewing) recently purchased a farm from page 1 in Franklin County for example.” SB 11 was also designed to encourage the growth of small-farm wineries. It increased mous Kentucky Bourbon Trail adventures as the maximum production cap for a small-farm premium tourism destinations while adding winery license from 50,000 gallons per year to jobs and millions of dollars in new investment 100,000 gallons per year. Small-farm wineries and tax revenue,” Kentucky Distillers’ Associa- may also provide custom crushing services to tion President Eric Gregory wrote in a statement winegrape growers or clients who source their provided to the committee during the meeting. own fruit. Trout said three wineries in Kentucky “These bold reforms are increasingly important were already providing custom crushing ser- as Kentucky competes with other states for the vices. next generation of distilleries.” Sen. Chris McDaniel, R-Latonia, asked a question In addition, SB 11 allows bed-and-breakfast From 2010 through ’15, there were 103 lo- during the Oct. 14 meeting of the Interim Joint owners to obtain a license to sell alcoholic bever- cal option elections concerning alcohol sales, Committee on Licensing and Occupations. ages to registered overnight guests. Since July 15, Trout said. Just in the first nine months of this three B&B operators have obtained that license, year, there have been 48. Thirty-one resulted in Trout said. at least limited alcohol sales. And seven more SB 11 allowed for the creation of two new Rep. Larry Clark, D-Louisville, asked if the local option elections were pending at the time types of liquor licenses. One type has been state ABC had promulgated all the regulations Trout spoke. dubbed the “peddle pub,” a license that allows contained in the omnibus SB 11. “This has an impact on the department,” passengers on human powered four-wheeled Trout referred the question to the general Trout said. “In previous years, we would have bicycles to drink alcohol. A designated driv- counsel for ABC, Steve Humphress, who said the one license for a small-farm winery or some- er controls the bike. The bikes, or quadricycles, only regulation still pending deals with brewer- thing of the sort. Now, we are seeing hundreds of have become popular in metropolitan restaurant ies providing refrigerated coolers to retailers. license applications come through the door as a and bar districts, including Cincinnati’s popular Senate Majority Floor Leader Damon Thay- result of these elections.” Over-the-Rhine neighborhood. er, R-Georgetown, thanked Trout, the first wom- All cities and counties, regardless of popula- The second is a new class of license for rec- an to become commissioner for the state ABC, tion, may also enact ordinances to permit licens- tifiers – people who cut, blend, mix or infuse any for her presentation to the committee. ees to sell alcohol on Sunday or after midnight. ingredient in a distilled spirit. “Many of us are strong supporters of the Kentucky’s smallest communities can also seek Under SB 11, the maximum production free-enterprise system, but the alcohol business a hardship exception to allow restaurants with cap for a microbrewery license increased from is, and has been since Prohibition, heavily reg- fewer than 100 seats to serve alcohol.