Tom O’Dell Smith is now in his third term as 86th District representative, serving all of Knox County and a portion of Laurel County. He serves on several different committees, but for the second year in a row he has been appointed as vice chair of the Licensing, Occupations and Administrative Regulations Committee.
According to the official website of the Kentucky General Assembly (www.legislature.ky.gov), the Licensing, Occupations and Administrative Regulations Committee deals with “matters pertaining to professional licensing,” with some of the specific areas of focus being racing, alcoholic beverage control, professional service corporations, business schools and trade practices, among others.
With so many important issues falling under the purview of this committee, Smith said recently that he expects the upcoming legislative session to be particularly busy for both himself and his fellow committee members. With the state’s budget being set during last year’s session, he said that 2025 will be more policy driven, and will see legislators exploring ways to improve upon existing laws while also collaborating on new bills to be introduced.
Medical cannabis
Smith said that the recent lotteries to determine who received licenses to legally operate within Kentucky’s new medical cannabis industry did not go quite as he expected it to, and it is among the topics that he would like to see addressed in the upcoming legislative session.
“That was one of the things that took a lot of our members by surprise,” Smith said of how the lotteries played out, explaining that, when House Bill 829 was signed off on, the intention was for Kentucky companies to be treated preferentially.
Editor’s Note: Section 10, Item C of HB 829 states, “When reviewing and considering cannabis business applications, prioritize the review of applications submitted by an individual or entity who is an existing Kentucky hemp business in good standing with the Department of Agriculture, if they meet the application requirements set forth in this chapter and administrative regulations promulgated by the cabinet thereunder.”
In the end, the vast majority of cultivator, processor and dispensary licenses went to out-of-state applicants. Smith said this was largely due to the overwhelming amount of applications that were received, specifically when it came to those vying for the dispensary licenses.
“Nobody anticipated 5,000 applications for dispensaries,” Smith said. “When the lottery was pooled, the percentages just came out higher for the out-of-state companies than the in-state companies. That bothered me, because that is not the vision that I had when we were voting on the bill. I just thought all along that it would be Kentucky people putting in for it and getting the licenses. I think it is something that will be addressed this session.”
Smith explained that the Kentucky Cabinet for Health and Family Services was ultimately tasked with developing and implementing the actual distribution processes for medical cannabis licenses. Part of that process ended up being a non-refundable application fee. In the case of dispensaries, that fee was a steep $5,000 per application. The question of, “where has that money gone,” is another one that Smith expects to be addressed in the 2025 session.
“The state did have some cost in opening another section of the government and hiring people to operate it, but we would like to see where that money has gone and be able to provide an answer to that,” Smith said.
Considering the amount of money that was taken in with submitted applications, Smith said that he would be in favor of returning at least a percentage to those who did not receive licenses, or at the very least, not requiring previous applicants to pay another fee when/if another round of licenses are awarded.
“We should either refund that, or let them put in the next round at no cost,” Smith said. “We don’t need to look like the government is trying to make money off of people trying to get into this business. I think those things will be addressed.”
Due to the fact that current guidelines clearly state that application fees will be non-refundable, Smith said that language would have to be revised in order to allow for the issuance of any sort of a refund.
Only time will tell if this is something that will actually be considered in the upcoming legislative session, but generally speaking, Smith said that he does foresee additional operating licenses being awarded for medical cannabis businesses in the future, adding, “I look for there to be another round, and I think that we are going to have to be more on top of it in making sure that Kentucky people have access to those licenses.”
Expanding alcohol sales, legalized gaming options
Smith said another topic that will likely be looked into during the 2025 session deals with options for convenience stores being allowed to expand the types of alcohol products that they are legally allowed to sell to customers. Currently, these stores can sell products, such as beer and hard seltzers, because the percentage of alcohol in those drinks falls under a legal limit. Changing those legal limits could allow for other types of alcoholic beverages to be added to shelves.
“It is something that we will be looking at,” Smith said. “But my concern is where it is already being regulated through package stores. Those are licenses that are given out, and are controlled by population numbers. I wouldn’t want to hurt those businesses in any way. We don’t want to hurt one business trying to help another.”
When it comes to legal offerings at convenience stores, Smith said that he is open to including as many options for customers as possible, as long as everything is properly regulated. He pointed to vape products as a specific example, citing House Bill 11 (2024) as previous legislation that was designed to allow for the sale of those products, as long as the ingredients fall under legal guidelines and they are not being marketed to underage consumers.
When asked about gaming machines, which the Licensing, Occupations and Administrative Regulations Committee helps set the parameters for, Smith said that he is in favor of making them legally available to convenience stores if, once again, proper regulations are in place.
“We want to look at ways so that everybody can have an opportunity,” Smith said. “If one has it, how can others have it? As long as it is under regulation, then we want to look at these things. It is a hard endeavor, though, because if these things are going to exist, then there needs to be regulation, and to have that you need a consensus. That is what is tough to get to in Frankfort… a consensus for how we should operate.”
“I am open to having all of these options in our stores, as long as it can be lawfully regulated,” Smith re-iterated. “Our convenience stores are doing everything that they legally can to survive, and I am for that, but we can’t have illegal things going on without regulation.”
Speaking in a much broader sense about Kentucky’s growing gaming industry, Smith said that it is continuing to pay dividends, with lottery proceeds going to help fund educational endeavors and money from sports betting helping to strengthen the pension system for employees of the state.
Re-visiting licensure requirements
One more major item that Smith and his fellow committee members will be looking into soon is the options for amending licensure requirements when it comes to certain occupations. In doing so, the hope is to begin getting more individuals through training and out into the workforce at a quicker pace.
“There is a strong need for employees,” Smith said. “So, in some of these areas of employment, we are looking at trying to re-arrange the requirements for licensing in order to help fill that void. We are doing this to attract more people into those lines of work.”
Smith mentioned plumbing, electricians and nurses as just a few examples of the types of occupations that could potentially see revisions made when it comes to licensing requirements.
“We are trying to look into making it more flexible, so that employers can get the employees that they need,” Smith continued. “We are taking our time with it, though, and really looking at it to make sure that the consumers of these services are still protected. We want to make sure that we’re not putting people out there who are not capable of doing the work, or that licensing regulations become too lax.”
“We want more people in the workforce, but we have to think about public protection in making sure that our professionals are adequately trained and educated in their field.”
The 2025 General Assembly is scheduled to convene in Frankfort at noon on Tuesday, Jan. 7.
Tom O’Dell Smith is now in his third term as 86th District representative, serving all of Knox County and a portion of Laurel County. He serves on several different committees, but for the second year in a row he has been appointed as vice chair of the Licensing, Occupations and Administrative Regulations Committee. According to the official website of the Kentucky General Assembly (www.legislature.ky.gov), the Licensing, Occupations and Administrative Regulations Committee deals with “matters pertaining to professional licensing,” with some of the specific areas of focus being racing, alcoholic beverage control, professional service corporations, business schools and trade practices, among others. With so many important issues falling under the purview of this committee, Smith said recently that he expects the upcoming legislative session to be particularly busy for both himself and his fellow committee members. With the state’s budget being set during last year’s session, he said that 2025 will be more policy driven, and will see legislators exploring ways to improve upon existing laws while also collaborating on new bills to be introduced. Medical cannabis Smith said that the recent lotteries to determine who received licenses to legally operate within Kentucky’s new medical cannabis industry did not go quite as he expected it to, and it is among the topics that he would like to see addressed in the upcoming legislative session. “That was one of the things that took a lot of our members by surprise,” Smith said of how the lotteries played out, explaining that, when House Bill 829 was signed off on, the intention was for Kentucky companies to be treated preferentially. Editor’s Note: Section 10, Item C of HB 829 states, “When reviewing and considering cannabis business applications, prioritize the review of applications submitted by an individual or entity who is an existing Kentucky hemp business in good standing with the Department of Agriculture, if they meet the application requirements set forth in this chapter and administrative regulations promulgated by the cabinet thereunder.” In the end, the vast majority of cultivator, processor and dispensary licenses went to out-of-state applicants. Smith said this was largely due to the overwhelming amount of applications that were received, specifically when it came to those vying for the dispensary licenses. “Nobody anticipated 5,000 applications for dispensaries,” Smith said. “When the lottery was pooled, the percentages just came out higher for the out-of-state companies than the in-state companies. That bothered me, because that is not the vision that I had when we were voting on the bill. I just thought all along that it would be Kentucky people putting in for it and getting the licenses. I think it is something that will be addressed this session.” Smith explained that the Kentucky Cabinet for Health and Family Services was ultimately tasked with developing and implementing the actual distribution processes for medical cannabis licenses. Part of that process ended up being a non-refundable application fee. In the case of dispensaries, that fee was a steep $5,000 per application. The question of, “where has that money gone,” is another one that Smith expects to be addressed in the 2025 session. “The state did have some cost in opening another section of the government and hiring people to operate it, but we would like to see where that money has gone and be able to provide an answer to that,” Smith said. Considering the amount of money that was taken in with submitted applications, Smith said that he would be in favor of returning at least a percentage to those who did not receive licenses, or at the very least, not requiring previous applicants to pay another fee when/if another round of licenses are awarded. “We should either refund that, or let them put in the next round at no cost,” Smith said. “We don’t need to look like the government is trying to make money off of people trying to get into this business. I think those things will be addressed.” Due to the fact that current guidelines clearly state that application fees will be non-refundable, Smith said that language would have to be revised in order to allow for the issuance of any sort of a refund. Only time will tell if this is something that will actually be considered in the upcoming legislative session, but generally speaking, Smith said that he does foresee additional operating licenses being awarded for medical cannabis businesses in the future, adding, “I look for there to be another round, and I think that we are going to have to be more on top of it in making sure that Kentucky people have access to those licenses.” Expanding alcohol sales, legalized gaming options Smith said another topic that will likely be looked into during the 2025 session deals with options for convenience stores being allowed to expand the types of alcohol products that they are legally allowed to sell to customers. Currently, these stores can sell products, such as beer and hard seltzers, because the percentage of alcohol in those drinks falls under a legal limit. Changing those legal limits could allow for other types of alcoholic beverages to be added to shelves. “It is something that we will be looking at,” Smith said. “But my concern is where it is already being regulated through package stores. Those are licenses that are given out, and are controlled by population numbers. I wouldn’t want to hurt those businesses in any way. We don’t want to hurt one business trying to help another.” When it comes to legal offerings at convenience stores, Smith said that he is open to including as many options for customers as possible, as long as everything is properly regulated. He pointed to vape products as a specific example, citing House Bill 11 (2024) as previous legislation that was designed to allow for the sale of those products, as long as the ingredients fall under legal guidelines and they are not being marketed to underage consumers. When asked about gaming machines, which the Licensing, Occupations Read More
