KRS ch. 248 | Kentucky Revised Statutes, Chapter 248 — Tobacco

Title XXI — Agriculture and Animals

Includes enactments through the 2026 Regular Session.

The KRS database was last updated on 2026-09-01.

Title XXI Agriculture and Animals

Chapter 248 Tobacco

248.005 Repealed, 2026.

[Repealed]

248.010 Repealed, 2026.

[Repealed]

248.015 Repealed, 2026.

[Repealed]

248.020 Repealed, 1966.

[Repealed]

248.025 Repealed, 2026.

[Repealed]

248.030 Repealed, 1966.

[Repealed]

248.035 Repealed, 2026.

[Repealed]

248.040 Repealed, 1966.

[Repealed]

248.050 Repealed, 1966.

[Repealed]

248.060 Repealed, 1966.

[Repealed]

248.070 Repealed, 1966.

[Repealed]

248.080 Repealed, 1966.

[Repealed]

248.090 Repealed, 1966.

[Repealed]

248.100 Repealed, 1966.

[Repealed]

248.110 Repealed, 1966.

[Repealed]

248.120 Repealed, 1966.

[Repealed]

248.130 Repealed, 1966.

[Repealed]

248.140 Repealed, 1966.

[Repealed]

248.150 Repealed, 1966.

[Repealed]

248.160 Repealed, 1966.

[Repealed]

248.170 Repealed, 1966.

[Repealed]

248.180 Repealed, 1966.

[Repealed]

248.190 Repealed, 1966.

[Repealed]

248.200 Repealed, 1966.

[Repealed]

248.210 Repealed, 1966.

[Repealed]

248.220 Repealed, 1966.

[Repealed]

248.230 Repealed, 1966.

[Repealed]

248.240 Repealed, 1966.

[Repealed]

248.250 Repealed, 1966.

[Repealed]

248.260 Repealed, 1966.

[Repealed]

248.270 Repealed, 1966.

[Repealed]

248.280 Repealed, 2026.

[Repealed]

248.290 Repealed, 2026.

[Repealed]

248.300 Repealed, 2026.

[Repealed]

248.310 Repealed, 2026.

[Repealed]

248.320 Repealed, 2026.

[Repealed]

248.330 Repealed, 2026.

[Repealed]

248.340 Repealed, 2026.

[Repealed]

248.350 Repealed, 2026.

[Repealed]

248.353 Repealed, 2026.

[Repealed]

248.355 Repealed, 2026.

[Repealed]

248.360 Repealed, 1978.

[Repealed]

248.370 Repealed, 2026.

[Repealed]

248.380 Repealed, 2026.

[Repealed]

248.390 Repealed, 2000.

[Repealed]

248.391 Repealed, 2026.

[Repealed]

248.400 Repealed, 2026.

[Repealed]

248.410 Repealed, 2026.

[Repealed]

248.420 Repealed, 2026.

[Repealed]

248.430 Repealed, 2026.

[Repealed]

248.440 Repealed, 2026.

[Repealed]

248.450 Repealed, 2026.

[Repealed]

248.460 Repealed, 2026.

[Repealed]

248.470 Repealed, 1994.

[Repealed]

248.480 Repealed, 2021.

[Repealed]

Tobacco Exhibition Center Tobacco Exhibition Center

248.500 Establishment of Kentucky Tobacco Exhibition Center.

(1) There shall be established the official Kentucky Tobacco Exhibition Center celebrating and documenting the contributions of tobacco to the history and economy of the Commonwealth and the role of Nelson County in tobacco's growth, manufacturing, and sale in the state.

(2) The Kentucky Tobacco Exhibition Center shall be located in Nelson County.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 399, secs. 1 and 2, effective July 15, 1988.

248.510 Tobacco research board membership -- Compensation -- Meetings -- Quorum.

(1) The Kentucky Tobacco Research Board is hereby created. The board shall be composed of thirteen (13) voting members and one (1) nonvoting member as follows:

(a) Ten (10) permanent members who shall be the following officeholders or shall be designated by the following organizations: the Kentucky Farm Bureau Federation; the Kentucky Innovations Commission; the commissioner of the Kentucky Department of Agriculture; the dean of the University of Kentucky College of Agriculture; the Burley Growers Cooperative Association; the Council for Burley Tobacco; the Dark Fired Tobacco Association; the Kentucky Science and Technology Corporation; the chairman of the Senate Committee on Agriculture; and the chairman of the House Committee on Agriculture and Small Business. Each officeholder and organization shall designate an alternate who is authorized to serve when the member cannot be present at a meeting.

(b) Three (3) members at large, at least one (1) of whom is a tobacco farmer in Kentucky and at least one (1) of whom has research and development experience in the public or private sector, who shall be appointed by the Governor with the advice and consent of the Legislative Research Commission.

(c) One (1) nonvoting member from the University of Kentucky, who shall be the University of Kentucky Vice President for Research, or the Vice President's designee. The nonvoting member of the board may be counted in determining a quorum, but the nonvoting member shall not vote on matters before the board.

(2) No member of the board shall receive any salary, fee, or other remuneration for his services as a member of the board but each member shall be reimbursed for his ordinary travel expenses, including meals and lodging, incurred in the performance of his duties incident to implementation of the provisions of KRS 248.510 to 248.570.

(3) The term of the ten (10) members designated in paragraph (a) of subsection (1) of this section shall not change but they shall be permanent members in terms of the organizations and offices named. At-large members and the tobacco industry member shall serve two (2) year terms.

(4) The board shall elect, by a majority vote of the thirteen (13) voting members, a chairman and a vice chair. The chairman shall be the presiding officer of the board, shall preside at all meetings, and coordinate the functions and activities of the board. The chairman shall be elected or reelected annually and shall be a permanent member or an at-large member of the board. The vice chair shall conduct meetings in the absence of the chairman. The board shall have such other organization as deemed necessary and approved by the board.

(5) Meetings of the board shall be held at least quarterly but may be held more frequently as deemed necessary subject to call by the chairman or by request of a majority of the board members. Board meetings shall concern, among other things, policy matters relating to research projects and programs, research progress reports, authorization of projects and financial plans, and such other matters as necessary to carry out the intent of KRS 248.510 to 248.570.

(6) Seven (7) members of the board shall constitute a quorum for doing business. Each member shall have one (1) vote and a majority vote of the members present shall control on all questions.

Effective: June 25, 2009

History: Amended 2009 Ky. Acts ch. 32, sec. 2, effective June 25, 2009. -- Amended 2002 Ky. Acts ch. 98, sec. 2, effective July 15, 2002. -- Created 1982 Ky. Acts ch. 324, sec. 1, effective July 15, 1982. -- Amended 1972 Ky. Acts ch. 212, sec. 1. -- Created 1970 Ky. Acts ch. 255, sec. 1.

248.520 Duties of board.

The Kentucky Tobacco Research Board shall:

(1) Formulate policies and procedures as necessary to carry out the provisions of KRS 248.510 to 248.570.

(2) Promulgate rules and regulations as necessary to carry out the provisions of KRS 248.510 to 248.570 and to ensure proper expenditure of state funds appropriated for the purposes of KRS 248.510 to 248.570.

(3) Review and authorize research projects and programs to be undertaken and financed under the provisions of KRS 248.510 to 248.570.

(a) The facilities designated the Tobacco and Health Research Institute before July 15, 2002, shall be retained and operated by the University of Kentucky exclusively for the program and activities described in KRS 248.580.

(b) In addition to the research and development funded by authority of the Kentucky Tobacco Research Board, the board is authorized to allow other research operations having related or complementary interests to share this physical facility with the Kentucky Tobacco Research and Development Center, subject to approval of the board.

(4) Review and approve all progress and final research reports on projects authorized under the provisions of KRS 248.510 to 248.570.

(5) Ensure that state funds, appropriated by KRS 248.510 to 248.570 or any other act for tobacco research, are not diverted to any other use and that all authorized research projects are directed toward:

(a) Preserving and strengthening tobacco agriculture in Kentucky;

(b) Facilitating the progress of commercial endeavors in crop agriculture which have potential to provide entirely new market opportunities for tobacco growers; and

(c) Applying, when appropriate, previously authorized research initially conducted with tobacco to other plants which might be grown commercially in Kentucky, thus obtaining the fullest possible practical benefit from the research progress.

(6) Provide the Governor, the General Assembly, and the Legislative Research Commission an annual report by January 30 of each year showing the status of funds appropriated under KRS 248.510 to 248.570 for tobacco research and the progress of the board in terms of the results of its tobacco research efforts.

(7) Advise the General Assembly by January 30 during each even-numbered-year regular session of the need for continuation of the Kentucky Tobacco Research Board and the tax levied by Chapter 255 of the Acts of 1970 for the purpose of financing tobacco and related new crops research programs as provided by KRS 248.510 to 248.570.

(8) Approve and release public statements relating to the progress and results of research projects.

Effective: July 15, 2002

History: Amended 2002 Ky. Acts ch. 98, sec. 3, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 58, sec. 19, effective June 21, 2001. -- Amended 1972 Ky. Acts ch. 212, sec. 2. -- Created 1970 Ky. Acts ch. 255, sec. 2.

248.530 Repealed, 2002.

[Repealed]

248.540 Tobacco research-trust fund.

(1) The tax revenues received from the additional one-half cent ($0.005) tax levied by Chapter 255 of the Acts of 1970 shall be credited to a tobacco research-trust fund which is hereby created.

(2) Federal funds which may be made available to supplement or match state funds for research programs provided for by KRS 248.510 to 248.570 shall be credited to the trust fund created in subsection (1) of this section.

(3) Funds deposited to the credit of the tobacco research-trust fund shall be used to finance the research programs authorized under the provisions of KRS 248.510 to 248.570 and for no other purpose.

(4) Funds unexpended at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year or biennium, provided, however, that such surplus shall be included in the budget considered and approved by the board for the ensuing period.

Effective: July 15, 2002

History: Amended 2002 Ky. Acts ch. 98, sec. 4, effective July 15, 2002. -- Created 1970 Ky. Acts ch. 255, sec. 6.

248.550 Appropriation and use of funds -- Revenue estimates to be supplied by Office of State Budget Director.

(1) The amount of revenues collected and/or credited to the tobacco research-trust fund shall be appropriated each year to the Kentucky Tobacco Research and Development Center to finance research projects and programs as provided in KRS 248.510 to 248.570 and shall be expended by the institute only on those projects and programs authorized by the Kentucky Tobacco Research Board.

(2) The Office of State Budget Director shall supply revenue estimates of the amount of revenue anticipated to be collected during each fiscal year by the added one-half cent ($0.005) tax on cigarettes which estimate, along with any federal funds available, shall be the basis for preparing tobacco research programs and budget requests for each fiscal year.

Effective: July 15, 2002

History: Amended 2002 Ky. Acts ch. 98, sec. 5, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 46, sec. 28, effective July 14, 2000. -- Amended 1988 Ky. Acts ch. 273, sec. 12, effective July 15, 1988. -- Created 1970 Ky. Acts ch. 255, sec. 7.

248.560 Proposed research program -- Budget.

(1) The Kentucky Tobacco Research and Development Center shall prepare a proposed research program and budget request for each fiscal year and shall present such documents to the Kentucky Tobacco Research Board for consideration and approval. The budget shall be based on revenue estimates as provided in KRS 248.550.

(2) The budget shall provide for payment of expenses incurred by Kentucky Tobacco Research Board members as provided in subsection (2) of KRS 248.510, and for other administrative costs of the board.

(3) The Kentucky Tobacco Research Board shall consider the university recommendations and shall approve a budget for each fiscal year which shall be the basis for expending funds appropriated by KRS 248.510 to 248.570. The budget and proposed research program shall be considered by the board in terms of the intent of KRS 248.510 to 248.570.

(4) The university is authorized to proceed to execute the budget approved by the Kentucky Tobacco Research Board and may expend funds accordingly, and, the Finance and Administration Cabinet is hereby authorized to issue warrants for this purpose upon request by the university.

(5) Copies of the approved budget shall be filed by the board with the Legislative Research Commission and the Finance and Administration Cabinet.

Effective: July 15, 2002

History: Amended 2002 Ky. Acts ch. 98, sec. 6, effective July 15, 2002. -- Created 1970 Ky. Acts ch. 255, sec. 8.

248.570 Records -- Quarterly financial report to board.

(1) The Finance and Administration Cabinet and the University of Kentucky shall maintain such records as necessary to account for all receipts and expenditures credited to or charged against the tobacco research-trust fund and shall establish such rules and regulations as may be necessary to implement the provisions of KRS 248.510 to 248.570.

(2) The University of Kentucky shall furnish to the Kentucky Tobacco Research Board and the Legislative Research Commission a quarterly financial report showing the status of funds and the status of all research projects authorized under the provisions of KRS 248.510 to 248.570.

Effective: July 15, 1982

History: Amended 1982 Ky. Acts ch. 324, sec. 2, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 255, sec. 9.

248.580 Kentucky Tobacco Research and Development Center -- Use of certain state funds.

(1) The Kentucky Tobacco Research and Development Center is hereby created.

(2) The Kentucky Tobacco Research and Development Center is to be overseen by the Kentucky Tobacco Research Board and shall undertake not only research into tobacco but also other research having related or complementary interests, including but not limited to commercialization potential of tobacco and plant research, plant natural products research and research into development of new crops based on tobacco and other plants.

(3) The Kentucky Tobacco Research and Development Center may share its physical facility with other research operations having these and similar interests, subject to approval of the Kentucky Tobacco Research Board.

(4) State funds appropriated by the General Assembly under KRS 248.510 to 248.570 shall be used solely for research conducted by, or operations of, the Kentucky Tobacco Research and Development Center and the Kentucky Tobacco Research Board.

Effective: July 15, 2002

History: Created 2002 Ky. Acts ch. 98, sec. 1, effective July 15, 2002.

248.610 Restriction on use of tobacco stalks -- Exception.

(1) No person shall use, and no person shall purchase or otherwise acquire for intended use, any tobacco stalks in any manner that could result in human consumption by smoking or other use of tobacco stalks. This section does not prohibit the use of tobacco stalks in new and innovative uses for tobacco.

(2) The Department of Agriculture shall enforce this section, and shall initiate prosecution whenever and wherever it has reasonable grounds to believe this section is being violated.

Effective: July 15, 2002

History: Amended 2002 Ky. Acts ch. 98, sec. 7, effective July 15, 2002. -- Amended 1994 Ky. Acts ch. 146, sec. 1, effective July 15, 1994. -- Created 1972 Ky. Acts ch. 308, sec. 1.

Settlement and Development Funds Settlement and Development Funds

248.650 Repealed, 2006.

[Repealed]

248.652 Repealed, 2006.

[Repealed]

248.654 Tobacco settlement agreement fund -- Source of moneys -- Distribution of funds.

There is established in the State Treasury a permanent and perpetual fund to be known as the "Tobacco Settlement Agreement Fund" to which shall be credited any funds designated to the Commonwealth from the master settlement agreement signed on November 22, 1998, between the participating tobacco manufacturers and the forty (40) settling states or related federal legislation. All investment income earned from moneys deposited in the fund prior to and after April 26, 2000, shall accrue to the fund. Any funds designated to the Commonwealth from the settlement agreement or related federal legislation and all investment income accruing to the fund shall not be expended until appropriated by the General Assembly. The General Assembly's highest priority for distributing any funds from this account shall be for tobacco farmers and tobacco- impacted communities and health-related areas. Moneys in the fund, including all investment income accruing to the fund, shall be distributed within twenty (20) days of April 26, 2000, and within twenty (20) days of receipt of any moneys deposited to the fund after April 26, 2000 as follows:

(1) Fifty percent (50%) to the rural development fund created in KRS 248.655;

(2) Twenty-five percent (25%) to the early childhood development fund created in KRS 200.151; and

(3) Twenty-five percent (25%) to the Kentucky health care improvement fund created in KRS 194A.055.

Effective: April 26, 2000

History: Amended 2000 Ky. Acts ch. 546, sec. 1, effective April 26, 2000. -- Created 1998 Ky. Acts ch. 586, sec. 3, effective July 15, 1998. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 18, (1) at 2056. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, D, 1, (4), at 2077. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, F, 7, (2), at 2084. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, (5), at 2169. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, A, at 2169. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, B, at 2169. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, C, at 2170. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, D, at 2171. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, E, at 2172.

248.655 Rural development fund -- Purpose -- Source of moneys -- Strategic plan for fund distribution -- Annual report and audit.

There is established in the State Treasury a fund to be known as the "Rural Development Fund." This fund shall exist for the purpose of receipt and expenditure of moneys to improve and promote agricultural development for residents of the Commonwealth. The fund may receive state appropriations, gifts, grants, and federal funds and shall be disbursed by the State Treasurer upon the warrant of the chair of the rural development board. Before and after July 1, 2000, fifty percent (50%) of the proceeds in the tobacco settlement agreement fund shall be deposited in this fund as provided under KRS 248.654. All investment income earned from moneys deposited in the fund shall accrue to the fund. The moneys in the fund shall not lapse at the close of any fiscal year but shall be carried forward in the next fiscal year for the purpose of the fund. The board shall develop and oversee the implementation of a strategic plan. The strategic plan shall identify both short-term and long-term goals and the appropriate oversights to measure progress toward achievement of those goals, and it shall be updated every two (2) years. The board shall submit an annual report to the Governor and the Legislative Research Commission by September 1 of each year for the preceding fiscal year, outlining its activities and expenditures. The Auditor of Public Accounts, on an annual basis, shall conduct a thorough review of all expenditures from the fund and, if necessary in the opinion of the Auditor, an audit of the operations of the fund. No money in the fund shall be allocated until the board has adopted a strategic plan.

Effective: April 26, 2000

History: Created 2000 Ky. Acts ch. 546, sec. 2, effective April 26, 2000. 2020-2022 Budget Reference. See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. V, D, 4 at 940.

248.656 Repealed, 2006.

[Repealed]

248.658 Repealed, 2006.

[Repealed]

248.660 Repealed, 2006.

[Repealed]

248.662 Repealed, 2006.

[Repealed]

248.664 List of recipients of moneys from tobacco settlement agreement fund for child support administration.

Before distribution of the funds, a list of individuals or entities that are awarded tobacco settlement moneys from the tobacco settlement agreement fund under KRS 248.654, or related state or federal legislation, shall be forwarded by the cabinet, agency, corporation, authority, or other entity responsible for the distribution of the moneys to all designees of the Office of the Attorney General for the administration of the child support program.

Effective: July 1, 2025

History: Amended 2025 Ky. Acts ch. 59, sec. 8, effective July 1, 2025. -- Amended 2005 Ky. Acts ch. 99, sec. 567, effective June 20, 2005. -- Created 2000 Ky. Acts ch. 430, sec. 8, effective July 14, 2000.

Tobacco Master Settlement Agreement Tobacco Master Settlement Agreement

248.701 Definitions for KRS 248.701 to 248.727.

As used in KRS 248.701 to 248.727, unless the context requires otherwise:

(1) "Board" means the Agricultural Development Board created by KRS 248.707;

(2) "Fund" means the agricultural development fund established in KRS 248.655 as the "Rural Development Fund;"

(3) "Subcommittee" means the Tobacco Settlement Agreement Fund Oversight Committee created by KRS 248.723;

(4) "Council" means an agricultural development council required by KRS 248.721;

(5) "Master Settlement Agreement" means the settlement agreement dated November 23, 1998, entered into by the Commonwealth of Kentucky and major United States tobacco product manufacturers; and

(6) "Phase II Agreement" means the National Tobacco Grower Settlement Trust Agreement dated July 19, 1999, entered into by tobacco states and major tobacco companies to compensate tobacco growers and quota owners for losses resulting from the Master Settlement Agreement.

Effective: April 26, 2000

History: Created 2000 Ky. Acts ch. 530, sec. 1, effective April 26, 2000.

248.703 Allocation of moneys received in tobacco settlement agreement fund from Master Settlement Agreement.

(1) Fifty percent (50%) of the moneys received in the tobacco settlement agreement fund from Master Settlement Agreement funding after June 30, 2000, along with accrued interest, shall be allocated within twenty (20) days of receipt of the moneys to the agricultural development fund created in KRS 248.655. The moneys received in the fund, along with the accrued interest, shall be further allocated as follows:

(a) Thirty-five percent (35%) to the counties account; and

(b) Sixty-five percent (65%) for other projects throughout the state.

(2) The allocation within the counties account in the agricultural development fund for each county shall be assured for use in each county and shall be based on the following weighted factors:

(a) Fifty percent (50%) weight to the county's percentage of the state's tobacco allotment based on 1999 data;

(b) Twenty-five percent (25%) weight to the county's number of farms with tobacco quotas in the county as a percentage of farms with tobacco quotas statewide, based on 1999 data; and

(c) Twenty-five percent (25%) weight to the economic impact index for each county which shall be calculated in the following manner:

The tobacco income for each county (1997 burley tobacco production times average burley market price) divided by the total personal income for each county. The data used shall reflect the year most recently available for total personal income.
The percentage derived in subparagraph 1. of this paragraph (tobacco income as a percentage of total personal income for each county) shall then be summed across all counties.
The economic impact index amount shall be each county's tobacco income as a percentage of total personal income, divided by the aggregate percentage stated in subparagraph 2. of this paragraph.

(3) When a county's allocation is exhausted, applicants from that county may apply for funds from the other sixty-five percent (65%) of the moneys in the agricultural development fund. Failure by a county to exhaust its county allocation shall not preclude the county from receiving the benefits of a proposal approved by the board from state funds.

(4) Any funds directly appropriated by the General Assembly shall be assessed against the percentage of funds allocated to the state portion of the agricultural development fund.

(5) Interest earned on any moneys in any fund or account created in KRS 248.701 to 248.727 shall accrue to that fund or account until transferred to another fund or account created or referenced in KRS 248.701 to 248.727.

(6) None of the moneys left at the end of a fiscal year in any fund or account created or referenced in KRS 248.701 to 248.727 shall lapse, but shall stay with the fund or account as long as the fund or account exists, or until the moneys are transferred to another fund or account created or referenced in KRS 248.701 to 248.727. In the case of any fund or account created in KRS 248.701 to 248.727 that is terminated with a remaining balance, the balance shall remain in the agricultural development fund.

Effective: March 20, 2005

History: Amended 2005 Ky. Acts ch. 173, Pt. XXII, sec. 2, effective March 20, 2005. - - Created 2000 Ky. Acts ch. 530, sec. 2, effective April 26, 2000. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 18, (1) at 2056. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 21, (4) at 2060. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 21, (5) at 2060. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, F, 7, (2) at 2084. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, (5) at 2169. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, A at 2169. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, B at 2169. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, C at 2170.

248.705 Repealed, 2005.

[Repealed]

248.707 Agricultural Development Board.

(1) The Agricultural Development Board is created as a political subdivision of the Commonwealth to perform essential governmental and public functions by administering funds to provide economic assistance to the agriculture community of the Commonwealth. The board shall be a public agency within the meaning of KRS 61.805, 61.870, and other applicable statutes.

(2) The board shall consist of sixteen (16) members as follows:

(a) Five (5) voting members or their designees, as follows:

The Commissioner of Agriculture, who shall serve as chairperson. The Commissioner of Agriculture may designate a representative to serve as chairperson in the Commissioner's absence;
The Governor of the Commonwealth of Kentucky;
The secretary of the Cabinet for Economic Development;
The director of the University of Kentucky Cooperative Extension Service; and
The president of Kentucky State University; and

(b) Eleven (11) voting members appointed by the Commissioner, who shall be geographically distributed throughout the state and subject to confirmation as provided in KRS 11.160(2). The members shall be as follows:

Seven (7) active farmers, at least four (4) of whom shall be from counties that are substantially tobacco-impacted, as determined by a formula that includes tobacco income as a percentage of total personal income in the county, and at least two (2) of whom shall have experience in agricultural diversification;
One (1) representative of the Kentucky Farm Bureau;
One (1) representative of the Kentucky Chamber of Commerce, who shall be an agribusiness person;
One (1) attorney with farm experience and familiarity with agricultural policy; and
One (1) agricultural lender.

(3) The members appointed under subsection (2)(b)2. and 3. of this section shall be chosen from a list of three (3) nominees submitted to the Commissioner by each of the respective organizations.

(4) Consideration shall be given to racial and gender equity in the appointment of board members.

(5) The majority of the voting members shall be active farmers.

(6) Members of the board shall be reimbursed for expenses incurred in the performance of their duties.

(7) Except as provided in paragraphs (a) to (d) of this subsection, The terms of the members appointed by the Commissioner shall be for four (4) years and until their successors are appointed and confirmed. A vacancy on the board shall be filled for the remainder of the unexpired term in the same manner as the original appointment. Members may be reappointed. The initial appointments shall be for staggered terms, as follows:

(a) Two (2) members shall be appointed for one (1) year;

(b) Three (3) members shall be appointed for two (2) years;

(d) Three (3) members shall be appointed for four (4) years.

(8) The board shall meet monthly, or at the call of the chair or a majority of the voting members.

(9) A quorum of the board shall consist of nine (9) voting members. A majority of the voting members present may act upon matters before the board.

(10) The board shall be attached to the Department of Agriculture.

(11) Staff services for the board shall be provided by the Department of Agriculture.

(12) The Agricultural Development Board shall not be subject to reorganization under KRS Chapter 12.

Effective:March 12, 2021

History: Amended 2021 Ky. Acts ch. 12, sec. 8, effective March 12, 2021. -- Amended 2007 Ky. Acts ch. 137, sec. 182, effective June 26, 2007. -- Created 2000 Ky. Acts ch. 530, sec. 4, effective April 26, 2000.

Legislative Research Commission Note (3/12/2021). This statute was amended by Section 8 of 2021 Ky. Acts ch. 12. Section 16 of that Act states, in part: "[I]t is imperative that the continuity of the Agricultural Development Board and the Kentucky Agricultural Finance Corporation remain as established upon the effective date of this Act. Therefore, it is the intent of the General Assembly that each member of the Agricultural Development Board and the Kentucky Agricultural Finance Corporation shall serve his or her term as appointed and shall not be replaced unless by resignation and duly recognized."

248.709 Duties of board.

The board's duties shall include but not be limited to:

(1) Administering the agricultural development fund, except as provided in KRS 248.717(2);

(2) Receiving requests and applications for funds and authorizing the distribution of funds. The board may receive applications from institutions of public postsecondary education for financial and technical assistance in conducting alternative crop development research. The board shall assist the applicants in obtaining any necessary federal permits that may be required to conduct alternative crop research. A recipient institution shall report the status and progress of the alternative crop development research to the board, the Interim Joint Committee on Agriculture, and the Tobacco Settlement Agreement Fund Oversight Committee. The board shall promulgate administrative regulations relating to growing and researching alternative crops at the selected postsecondary institution, and shall adopt any applicable federal regulations;

(3) Developing guidelines and criteria for eligibility for and disbursement of funds, the types of direct and indirect economic assistance to be awarded, and procedures for applying for funds and reviewing applications for assistance;

(4) Ensuring that each county agricultural development council's plans and county recommendations and applications receive major consideration in decisions on use of a county's funds;

(5) (a) Completing a comprehensive plan and updating the plan no less than every ten (10) years.

(b) The comprehensive plan shall propose short-term and long-term goals, strategies, and investments in Kentucky agriculture that will assist farmers in remaining competitive in existing and new enterprises. The comprehensive plan shall identify a diversified mix of enterprises that are profitable to farmers and shall determine the investments necessary to support the viability of those enterprises. The plan shall be reviewed by the General Assembly and the subcommittee created in KRS 248.723. The subcommittee may issue comment on the plan. However, the board may act without General Assembly approval.

(c) Notwithstanding the provisions of 2000 Ky. Acts ch. 546, immediate funding needs may be addressed and funded before a comprehensive or strategic plan is completed. Proposals from an applicant may be approved by the board if they meet the criteria established in KRS 248.713;

(6) Preparing a biennial budget request in accordance with KRS Chapter 48;

(7) Working with other governmental agencies to maximize the financial and economic impact that the programs implemented by the board will have and to maximize receipt of federal and other funds to the agriculture community in the Commonwealth;

(8) Promulgating administrative regulations relating to carrying out the purposes of KRS 248.701 to 248.727;

(9) Hiring an executive director to carry out the will of the board and who shall report solely to the Commissioner;

(10) Ensuring the necessary mechanisms are in place for the committees created by KRS 248.715 to function effectively;

(11) Contracting with other persons or entities if necessary to effectuate the board's purposes and functions;

(12) Enacting bylaws concerning the conduct of the board's business and other administrative procedures as the board deems necessary;

(13) Developing criteria to evaluate the success of the board's programs and expenditures to applicants. The criteria shall be simple, easily measured, and easily understood. Criteria should include number of families farming, increases in farm income attributable to state programs, the number of diversified operations, and the number of different types of diversified efforts within a county, including the efforts that have failed;

(14) Providing reports of each meeting, along with expenditures approved or denied, within thirty (30) days of the meeting, to the Tobacco Settlement Agreement Fund Oversight Committee created by KRS 248.723. These reports shall contain detailed information relating to each expenditure by the board and detailed information on each application for funding a project or initiative by the board and decision by the board regarding each proposal, except information that may violate confidentiality. This information shall be provided by electronic format as prescribed by the Legislative Research Commission;

(15) Submitting an annual written report to the Governor, the Commissioner of Agriculture, the Tobacco Settlement Agreement Fund Oversight Committee, and the Legislative Research Commission regarding the administrative, financial, and programmatic activities of the board;

(16) Making recommendations to the General Assembly through the Legislative Research Commission on possible adjustments to the funding formula for county allocations and the percent allocated to counties as provided in KRS 248.703; and

(17) Making, participating in the making, purchasing, or participating in the purchasing of insured mortgage or other types of loans to qualified applicants for the purpose of incentives awarded under KRS 246.605.

Effective: March 27, 2025

History: Amended 2025 Ky. Acts ch. 118, sec. 3, effective March 27, 2025. -- Amended 2021 Ky. Acts ch. 12, sec. 9, effective March 12, 2021. -- Amended 2010 Ky. Acts ch. 135, sec. 6, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 530, sec. 5, effective April 26, 2000.

Legislative Research Commission Note (3/12/2021). Under the authority of KRS 7.136(1), the Reviser of Statutes has altered the format of the text in subsection (5) of this statute during codification. The words in the text were not changed.

248.711 Criteria for application for state funds -- Uses and restrictions on funds in counties account -- Administration of agricultural development fund -- Applicant's right to appear before oversight committee.

(1) Criteria to be used in considering applications for state funds shall include, but not be limited to:

(a) Assistance to tobacco farmers and communities in counties most affected by the loss in tobacco income;

(b) Assistance to communities most dependent on agriculture;

(d) Merits of the proposal in the application;

(e) Compatibility with state and local agriculture-related comprehensive plans;

(f) Documentation of measures likely to ensure soundness of the proposal such as cash flow, security, market evaluation, and infrastructure considerations;

(g) Promotion of diversification;

(h) Regional orientation;

(i) Cooperation among entities involved in the project and application process; and

(j) Effect on the economic viability of family farms.

(2) Uses and restrictions on the funds in the counties account shall include, but not be limited to, the following:

(a) Funds may be used for deferred, no-interest, or low-interest venture capital loans to enhance farms' revenues by initiating:

Current farming techniques or practices improvements; or
New farming ventures on the farm;

(b) Funds used for loans shall be administered through a duly licensed or chartered financial institution organized and regulated:

Under the laws of this state in accordance with KRS Chapter 286; or
Created by Congress and organized and regulated in accordance with provisions of federal law;

(c) Terms of the loans may include a limit on deferral of payment of interest or principal to five (5) years, and a limit on the interest rates. Repaid loans and interest shall be credited to the appropriate county's allocation within the counties account;

(d) Funds may be used as grants for local agricultural economic development projects;

(e) Funds may be used as grants for water line extension to farms or for a fifty percent (50%) match for water improvements on farms;

(f) Funds may be used for programs to assist farmers in transitioning from one

(1) type of farming to another or from farming to another vocation;

(g) Local governments may apply for funds to clean up environmental problems created by a farm failure where there is no reasonable prospect that the problem will be cleaned up by a private individual or entity;

(h) Eligibility for funds in this subsection shall require that:

Tobacco farmers be given priority;
Applicants have sufficient equity to assure a reasonable chance of success of the action proposed for funding;
Small farmers have as equal access to the funds as large farmers; and
Consideration be given to what percent of a county's allocation of moneys an applicant is requesting; and

(i) Counties may use their funds for multicounty or regional projects. They may also use their funds to maximize state or federal matching fund programs.

(3) In administering the fund under KRS 248.709(1), the board shall be governed by the following principles:

(a) Individuals, groups, educational institutions, governmental entities, cooperatives, including limited cooperative associations, and other agriculturally related entities are eligible to receive moneys from the fund; and

(b) The board shall receive five hundred thousand dollars ($500,000) for administrative costs in fiscal year 2001 and six hundred thousand dollars ($600,000) in fiscal year 2002. These amounts shall include any costs necessary to offset administrative expenses incurred by the county cooperative extension service offices for providing administrative support to the agricultural development councils as provided in KRS 248.721.

(4) If the state board recommends that an application not be approved or that it be changed, the applicant may take the application before the oversight subcommittee created in KRS 248.723 for discussion and possible resolution of differences.

Effective: July 12, 2012

History: Amended 2012 Ky. Acts ch. 160, sec. 138, effective July 12, 2012. -- Created 2000 Ky. Acts ch. 530, sec. 6, effective April 26, 2000. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 21, (6) at 2060. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. X, C at 2170.

Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch. 247 instructs the Reviser of Statutes to adjust KRS references throughout the statutes to conform with the 2006 renumbering of the Financial Services Code, KRS Chapter 286. Such an adjustment has been made in this statute.

248.713 Use of county allocation funding.

Notwithstanding the provisions of KRS 248.655, county allocations may be used for projects before the completion of a comprehensive plan or strategic plan as determined by the board or if they fall under the conditions described in KRS 248.709(5)(b) or (c) or meet the criteria in KRS 248.711(2).

Effective:March 12, 2021

History: Amended 2021 Ky. Acts ch. 12, sec. 10, effective March 12, 2021. -- Created 2000 Ky. Acts ch. 530, sec. 7, effective April 26, 2000.

Legislative Research Commission Note (3/12/2021). Under the authority of KRS 7.136(1), the Reviser of Statutes has changed a reference in this statute to reflect the reformatting of KRS 248.709(5) during codification. No words were changed in the text of either section.

248.715 Committees of board.

(1) The board shall create committees, including, but not limited to:

(a) Access to Capital Committee;

(b) Environmental Cost Share Committee;

(d) Technology, Infrastructure, and Training Committee;

(e) Farmland Preservation Committee; and

(f) Technical Issues Advisory Committee.

(2) Each committee shall be composed of board members knowledgeable about the programs being overseen by that committee.

(3) The committees shall assist the board in developing programs and criteria for programs to be considered by the board and may utilize nonboard members with expertise in the jurisdictional area of the committee for assistance. The committees shall make recommendations to the board, and the board shall determine which programs are to be overseen and implemented by the committees. The board shall determine which individual projects in each program are approved.

Effective: April 26, 2000

History: Created 2000 Ky. Acts ch. 530, sec. 8, effective April 26, 2000.

248.717 Creation and implementation of board's programs.

Programs that shall be created by the board and overseen and implemented by the board or committees include:

(1) Programs that receive direct funding from the board:

(a) A Farm Market Development and Infrastructure Program to develop regional, integrated farm markets, and regional or community capital projects. The board may authorize moneys to the Department of Agriculture for each year of the biennium to be used for agriculture market development and infrastructure; and

(b) An Agricultural Entrepreneurship Program overseen by the board to support small farm agricultural diversification through technical assistance, business mentoring, and financial incentives.

(2) Programs that receive direct authorization for moneys from the agricultural development fund by the General Assembly may include, but not be limited to:

(a) An Environmental Stewardship Program to provide cost-share assistance to farmland owners for compliance with the state agriculture water quality plan and other environmental compliance requirements; and

(b) A Rural Water Line Extension Program to provide municipal water in areas of high agricultural activity or need. Priority shall be given to the tobacco- impacted communities most adversely affected by tobacco losses. The General Assembly shall authorize the issuance of bonds through the Kentucky Infrastructure Authority for this program.

(3) The board may create and fund other agricultural assistance programs in addition to those created under subsection (1) of this section, including an environmental cleanup program for cost-share assistance to tobacco warehouse operators for demolition and abatement of environmental hazards associated with tobacco warehouse structures.

Effective: April 26, 2000

History: Created 2000 Ky. Acts ch. 530, sec. 9, effective April 26, 2000.

248.719 Center for Entrepreneurship.

The board is authorized to establish a Center for Entrepreneurship to operate under the Agricultural Entrepreneurship Program provided in KRS 248.717(1)(b). The duties of the center shall include:

(1) Primarily identifying and coordinating with existing agencies in order to develop and deliver entrepreneurial assistance. The center shall be primarily a clearinghouse requiring little or no capital construction;

(2) Assisting local individuals and entities and regional and statewide entities in developing and carrying out entrepreneurial efforts relating to agriculture; and

(3) Advising the Agricultural Development Board on the fiscal soundness and other aspects of entrepreneurial proposals.

Effective: April 26, 2000

History: Created 2000 Ky. Acts ch. 530, sec. 10, effective April 26, 2000.

248.721 County agricultural development councils.

(1) Each county shall establish an agricultural development council to evaluate the needs of the local agricultural economy and to devise a plan for the county that would identify programs best suited for the agricultural development of the county. The council shall assist prospective applicants in the council's county in obtaining moneys from the agricultural development fund. Each council shall consist of nine

(9) members as follows:

(a) Two (2) farmers selected by the Farm Service Agency county committee;

(b) Two (2) members selected by the board or boards of the soil conservation district or districts serving the county;

(c) Two (2) members selected by the county extension council, one (1) of whom shall have experience in agricultural diversification; and

(d) Three (3) at-large members with farm experience and familiarity with the county's agricultural development opportunities and processes selected by the six (6) members in paragraphs (a) to (c) of this subsection.

(2) (a) No less than two (2) of the nine (9) members appointed to the county agricultural development council under subsection (1) of this section shall be young farmers between the ages of twenty-one (21) and forty (40).

(b) At least one (1) of the nine (9) members appointed to the county agricultural development council under subsection (1) of this section shall represent a gender or race that is not represented on the council at the time of the selection.

(3) (a) On July 1, 2002, and every two (2) years thereafter, members shall be appointed for two (2) year terms. Beginning on July 1, 2010, persons appointed to serve on county agricultural development councils shall be limited to two (2) consecutive two (2) year terms, but shall be eligible for appointment to additional consecutive terms after being absent from a council for a period of two (2) years between each cycle of consecutive terms.

(b) Any vacancy occurring on a county agricultural development council before the expiration of the vacating member's term shall be filled within sixty (60) days by the authority or members making the original appointment, in the same manner as the original appointment was made under subsection (1) of this section.

(4) Each council shall be attached to the county cooperative extension service for administrative support.

(5) Each council shall receive guidance and assistance from the board as the council devises plans and assists applicants as provided in subsection (1) of this section.

(6) Councils shall make applicants aware of criteria for projects set out in KRS 248.711.

(7) Councils shall be responsible for developing local strategies for enhancing agricultural opportunities and assisting local farmers.

(8) Each council shall utilize the resources of the Agricultural Entrepreneurship Program created in KRS 248.717, the Kentucky Small Business Development Center Network, and the Kentucky Department of Agriculture for assistance and support in aiding prospective applicants in obtaining moneys from the fund.

(9) Each county council shall provide its plan to the board. If the state board recommends changes in the county plan that the council does not agree with, the council may take the plan before the subcommittee created in KRS 248.723 for discussion and possible resolution of differences.

Effective: June 25, 2009

History: Amended 2009 Ky. Acts ch. 36, sec. 1, effective June 25, 2009. -- Created 2000 Ky. Acts ch. 530, sec. 11, effective April 26, 2000.

Legislative Research Commission Note (11/24/2009). 2009 Ky. Acts ch. 36, sec. 2, provides: "By July 1, 2010, each county agricultural development council appointing authority set out in subsection (1)(a) to (c) of Section 1 of this Act (this statute) shall replace its longest-serving member on the council with a new appointee, provided the longest-serving member has served on the council for four or more years. By July 1, 2012, each appointing authority set out in subsection (1)(a) to (c) of Section 1 of this Act (this statute) shall replace its longest-serving member on the county council with a new appointee, provided the longest-serving member has served on the council for four or more years. If two council appointees have served the same amount of time, the appointing authority shall determine which council appointee shall leave the council. Council members who are not reappointed in 2010 or 2012 shall be eligible for reappointment two years after their departure from the council."

248.723 Tobacco Settlement Agreement Fund Oversight Committee -- Membership -- Meetings -- Vote required to act -- Reporting of expenditure under early childhood development fund and the Kentucky health care improvement fund. (Effective until January 1, 2027)

(1) member from their chamber to serve as co-chair. Any vacancy that may occur in the membership of the subcommittee shall be filled pursuant to this subsection by the same appointing authority who made the original appointment.

(2) The co-chairs shall have joint responsibilities for committee meeting agendas and presiding at committee meetings. The members of the subcommittee shall be compensated for attending meetings as provided in KRS 7.090(3) and 7.110(5).

(3) A majority of the entire membership of the Tobacco Settlement Agreement Fund Oversight Committee shall constitute a quorum, and all actions of the subcommittee shall be by vote of a majority of its entire membership.

(4) Any professional, clerical, or other employees required by the subcommittee shall be provided in accordance with KRS 7.090(4) and (5).

(5) (a) Subsections (6) to (10) of this section shall apply only to the expenditures from and projects under the agricultural development fund;

(b) Subsection (11) shall apply to all expenditures under the tobacco settlement agreement fund created in KRS 248.654; and

(c) Subsection (12) shall apply to expenditures from the early childhood development fund and the Kentucky health care improvement fund created in KRS 200.151 and 194A.055.

(6) The subcommittee shall review each project being submitted to the Agricultural Development Board. In reviewing the projects, the subcommittee shall determine whether the criteria or requirements required by KRS 248.701 to 248.727 have been met and whether any other relevant requirements have been met.

(7) (a) If the subcommittee determines that any of the criteria or requirements required by KRS 248.701 to 248.727, except as provided in subsection (5) of this section, have not been met, the subcommittee may, by majority vote, recommend to the board in writing that a project not be approved.

(b) If the subcommittee determines that all relevant criteria were met for proposals not approved by the board, the subcommittee may, by majority vote, recommend to the board in writing that the project be approved.

(c) The reasons for recommending that a project be approved or not approved shall be stated in correspondence from the subcommittee, which shall be issued within thirty (30) days of action of the subcommittee.

(8) If the board proceeds with approval of a project under the agricultural development fund that the subcommittee has recommended in writing not be approved, or refuses to approve a project that the subcommittee has recommended in writing be approved, the board shall provide a written explanation to the subcommittee as to why the board took that action on the project. The written explanation shall be sent within thirty (30) days of receiving the subcommittee's notification.

(9) The subcommittee shall also hear cases that arise under KRS 248.721(9) and 248.711(4). In these cases the subcommittee shall provide a forum for discussion and possible resolution of differences between the board and the affected party. If the differences are not resolved, the subcommittee may, by majority vote, recommend to the board in writing a course of action.

(10) The subcommittee shall maintain records of its findings and determinations. The records shall be transmitted to the appropriate interim joint committees of the Legislative Research Commission within thirty (30) days of making any determination.

(11) The subcommittee shall issue an annual written report to the Legislative Research Commission regarding the findings of the subcommittee.

(12) All expenditures under the early childhood development fund and the Kentucky health care improvement fund created in KRS 200.151 and 194A.055 shall be reported to the subcommittee. The expenditures shall be submitted in an electronic format in a manner approved by the Legislative Research Commission in order for the Commission to have a repository of information in Master Settlement Agreement funding expenditures.

Effective: June 25, 2009

History: Amended 2009 Ky. Acts ch. 36, sec. 3, effective June 25, 2009. -- Amended 2003 Ky. Acts ch. 185, sec. 7, effective March 31, 2003. -- Created 2000 Ky. Acts ch. 530, sec. 12, effective April 26, 2000.

248.723 Tobacco Settlement Agreement Fund Oversight Committee -- Membership -- Terms -- Vacancies -- Meetings -- Vote required to act -- Reporting of expenditure under early childhood development fund and the Kentucky health care improvement fund. (Effective January 1, 2027)

(1) There is created a permanent subcommittee of the Legislative Research Commission to be known as the Tobacco Settlement Agreement Fund Oversight Committee. The subcommittee shall be composed of twelve (12) members and shall include four (4) members of the House of Representatives appointed by the Speaker; two (2) members of the minority party in the House of Representatives appointed by the Minority Floor Leader; four (4) members of the Senate appointed by the President; and two (2) members of the minority party in the Senate appointed by the Minority Floor Leader. The members of the subcommittee shall be appointed in January of each odd-numbered year and serve for terms of two (2) years. The President of the Senate and Speaker of the House of Representatives shall each appoint one (1) member of the subcommittee from their chamber to serve as co- chair. Any vacancy that may occur in the membership of the subcommittee shall be filled within thirty (30) days of the occurrence, in the same manner as the original appointment, and for the balance of the vacated member's term.

(4) Any professional, clerical, or other employees required by the subcommittee shall be provided in accordance with KRS 7.090(4) and (5).

(5) (a) Subsections (6) to (10) of this section shall apply only to the expenditures from and projects under the agricultural development fund.

(b) Subsection (11) shall apply to all expenditures under the tobacco settlement agreement fund created in KRS 248.654.

(c) Subsection (12) shall apply to expenditures from the early childhood development fund and the Kentucky health care improvement fund created in KRS 200.151 and 194A.055.

(11) The subcommittee shall issue an annual written report to the Legislative Research Commission regarding the findings of the subcommittee.

Effective: January 1, 2027

History: Amended 2025 Ky. Acts ch. 35, sec. 11, effective January 1, 2027. -- Amended 2009 Ky. Acts ch. 36, sec. 3, effective June 25, 2009. -- Amended 2003 Ky. Acts ch. 185, sec. 7, effective March 31, 2003. -- Created 2000 Ky. Acts ch. 530, sec. 12, effective April 26, 2000.

248.725 Technical assistance provided by Kentucky Department of Agriculture.

The Kentucky Department of Agriculture may provide technical assistance to local individuals and entities, county agricultural development councils, and regional entities in developing proposals and in implementing proposals approved by the Agricultural Development Board.

Effective: July 15, 2014

History: Amended 2014 Ky. Acts ch. 71, sec. 11, effective July 15, 2014. -- Created 2000 Ky. Acts ch. 530, sec. 13, effective April 26, 2000.

248.727 Responsibilities of agencies and educational institutions receiving agriculturally related funding.

(1) Those agencies and educational institutions that receive agriculturally related funding under the provisions of KRS 248.701 to 248.727, and those that receive state funding relating to assisting agriculture and farmers in this state shall devote efforts to revitalization and diversification of tobacco farms.

(2) Each agency or institution in subsection (1) of this section shall issue a semiannual report on the details of the efforts it is carrying out to revitalize and diversify tobacco farms. The report shall include details of successes that have been achieved and shall be provided to the subcommittee created in KRS 248.723.

Effective: April 26, 2000

History: Created 2000 Ky. Acts ch. 530, sec. 14, effective April 26, 2000.

Cigarettes and Cigarette Packaging Cigarettes and Cigarette Packaging

248.750 Definitions for KRS 248.750 to 248.769.

As used in KRS 248.750 to 248.769:

(1) "Cigarettes" has the same meaning as in KRS 138.130;

(2) "Department" means the Department of Revenue;

(3) "Importer" has the same meaning as in 26 U.S.C. sec. 5702(k);

(4) "Manufacturer" means any person who manufactures or produces cigarettes within or without the Commonwealth;

(5) "Master settlement agreement" means the settlement agreement (and related documents) entered into on November 23, 1998, by Kentucky and leading United States tobacco product manufacturers;

(6) "Nonparticipating manufacturer" has the same meaning as in KRS 131.600;

(7) "Package" has the same meaning as in 15 U.S.C. sec. 1332(4); and

(8) "Person" has the same meaning as in KRS 446.010.

Effective: July 1, 2015

History: Amended 2015 Ky. Acts ch. 55, sec. 13, effective July 1, 2015. -- Amended 2005 Ky. Acts ch. 85, sec. 666, effective June 20, 2005. -- Created 2001 Ky. Acts ch. 150, sec. 1, effective January 1, 2002.

Legislative Research Commission Note (7/1/2015). Under the authority of KRS 7.136(1), the Reviser of Statutes has changed the internal numbering of this statute to place definitions in alphabetical order. No words were changed in this process.

248.752 Prohibited acts relating to cigarettes and cigarette packaging.

No person shall:

(1) Sell or distribute, in this Commonwealth; acquire, hold, own, possess, or transport in this Commonwealth; for sale or distribution in this Commonwealth; or import or cause to be imported into this Commonwealth for sale or distribution in this Commonwealth:

(a) Any cigarettes the package of which:

Bears any statement, label, stamp, sticker, or notice indicating that the manufacturer did not intend the cigarettes to be sold, distributed, or used in the United States including, but not limited to, a label stating "For Export Only," "U.S. Tax Exempt," "For Use Outside U.S.," or similar wording; or
Does not comply with:

a. All requirements imposed by or in accordance with federal law regarding warnings, and other information on packages of cigarettes manufactured, packaged, or imported for sale, distribution, or use in the United States including, but not limited to, the precise warning label specified in the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. sec. 1333; and

b. All federal trademark and copyright laws;

(b) Any cigarettes in violation of federal law or federal regulations, including, but not limited to, cigarettes imported into the United States in violation of 26 U.S.C. sec. 5754, 26 U.S.C. sec. 5704, 19 U.S.C. secs. 1681-1681b, U.S. Customs Law including Chapter 4, Subtitle IV of the Federal Tariff Act of 1930, 19 U.S.C. secs. 1671-1677n, or Pub. L. No. 106-476, the Federal Imported Cigarette Compliance Act of 2000; or

(c) Any cigarettes for which there has not been submitted to the Secretary of the United States Department of Health and Human Services the list or lists of the ingredients added to tobacco in the manufacture of the cigarettes required by the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. sec. 1335a;

(2) Alter the package of any cigarettes, prior to the sale or distribution to the ultimate consumer, so as to remove, conceal, or obscure:

(a) Any statement, label, stamp, sticker, or notice described in subsection (1)(a)2.a. of this section; or

(b) Any health warning that is not specified in or does not conform with the requirements of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. sec. 1333; or

(3) Affix any stamp required by KRS 138.146 or make other evidence of tax payment as provided in KRS 138.155 to the package of any cigarettes described in subsection (1) of this section or altered in violation of subsection (2) of this section.

Effective: January 1, 2002

History: Created 2001 Ky. Acts ch. 150, sec. 2, effective January 1, 2002.

248.754 Required filing of copies of customs certificates.

On or before the fifteenth business day of each month, each:

(1) Person licensed to affix the stamp required by KRS 138.146 or make other evidence of tax payment as provided in KRS 138.155 shall file with the department, for all cigarettes imported into the United States to which the person has affixed the stamp required by KRS 138.146 or made other evidence of tax payment as provided in KRS 138.155 in the preceding month, a copy of the current customs certificates required by 19 U.S.C. sec. 1681a(c) for the entry of cigarettes into the United States; and

(2) Nonparticipating manufacturer and each of its importers shall file with the Attorney General for all cigarettes imported into the United States, a copy of the current customs certificates required by 19 U.S.C. sec. 1681a(c) for the entry of cigarettes into the United States.

Effective: July 1, 2015

History: Amended 2015 Ky. Acts ch. 55, sec. 14, effective July 1, 2015. -- Created 2001 Ky. Acts ch. 150, sec. 3, effective January 1, 2002.

248.756 Administrative and civil penalties for violation of KRS 248.752 or 248.754 -- Forfeiture of cigarettes.

(1) The department may revoke the license issued in accordance with KRS 138.195 of any licensee and impose a civil penalty of twenty-five dollars ($25) per violation, not to exceed five thousand dollars ($5,000), upon finding a violation by the licensee of KRS 248.752 or 248.754, as applicable.

(2) Cigarettes that are acquired, held, owned, possessed, transported in, imported into, or sold or distributed in this Commonwealth in violation of KRS 248.752 or 248.754 shall be treated as contraband under KRS 138.165 and be subject to seizure and forfeiture. Notwithstanding the provisions of KRS 138.165, all cigarettes seized and forfeited shall be destroyed. Cigarettes shall be treated as contraband whether the violation of KRS 248.752 or 248.754 is knowing or otherwise.

Effective: July 1, 2015

History: Amended 2015 Ky. Acts ch. 55, sec. 15, effective July 1, 2015. -- Created 2001 Ky. Acts ch. 150, sec. 4, effective January 1, 2002.

248.758 Presumption of purchase outside of the ordinary business channels of trade of certain imported or reimported cigarettes.

For the purposes of KRS 138.146 and 248.750 to 248.769, cigarettes imported or reimported into the United States for sale or distribution under any trade name, trade dress, or trademark that is the same as or is confusingly similar to any trade name, trade dress, or trademark used for cigarettes manufactured in the United States for sale or distribution in the United States shall be presumed to have been purchased outside of the ordinary business channels of trade.

Effective: January 1, 2002

History: Created 2001 Ky. Acts ch. 150, sec. 5, effective January 1, 2002.

248.760 Violation of KRS 248.752 or 248.754 as constituting an unfair trade practice -- Applicability of unfair trade practice law.

(1) A violation of KRS 248.752 or 248.754 shall constitute an unlawful trade practice as provided in KRS 365.260 to 365.380 and, in addition to any remedies or penalties set forth in KRS 248.756, 248.762, and 248.766, shall be subject to any remedies or penalties available for a violation of the provisions of KRS 365.260 to 365.380.

(2) Any person who sells, distributes, or manufactures cigarettes shall be bound by Kentucky law on unfair trade practices, KRS 365.020 to 365.050.

Effective: January 1, 2002

History: Created 2001 Ky. Acts ch. 150, sec. 6, effective January 1, 2002.

248.762 Criminal penalties for violation of KRS 248.752 or 248.754.

Any person that commits any of the acts prohibited by KRS 248.752, either knowing or having reason to know he or she is doing so, or that fails to comply with any of the requirements in KRS 248.754 is guilty of a Class D felony and, in addition, may be subject to a fine of not more than five thousand dollars ($5,000) and costs of prosecution.

Effective: January 1, 2002

History: Created 2001 Ky. Acts ch. 150, sec. 7, effective January 1, 2002.

248.764 Enforcement of KRS 248.752 and 248.754.

(1) KRS 248.752 and 248.754 shall be enforced by the Attorney General, but at the request of the Attorney General or the Attorney General's duly authorized agent, the Department of Kentucky State Police and all local police authorities shall enforce KRS 248.752 and 248.754. The Attorney General has concurrent powers with prosecuting attorneys of the Commonwealth to enforce KRS 248.754 or 248.756.

(2) For the purpose of enforcing KRS 248.754 and 248.756, the Attorney General and any agency that the Attorney General shall have delegated enforcement responsibility under subsection (1) of this section may request information from any state or local agency and may share information with and request information from any federal agency and any agency of any other state or any local agency of that state.

Effective: June 26, 2007

History: Amended 2007 Ky. Acts ch. 85, sec. 276, effective June 26, 2007. -- Created 2001 Ky. Acts ch. 150, sec. 8, effective January 1, 2002.

248.766 Injunctive relief for violation of KRS 248.752 or 248.754.

Any person who sells, distributes, or manufactures cigarettes and sustains direct economic or commercial injury as a result of a violation of KRS 248.752 or 248.754 may bring an action in good faith for appropriate injunctive relief.

Effective: January 1, 2002

History: Created 2001 Ky. Acts ch. 150, sec. 9, effective January 1, 2002.

248.769 Cigarettes not subject to KRS 248.752 or 248.754 -- Cumulativeness of penalties.

(1) KRS 248.752 and 248.754 shall not apply to:

(a) Cigarettes allowed to be imported or brought into the United States for personal use; and

(b) Cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of 19 U.S.C. sec. 1555(b) and any implementing regulations, but KRS 248.754 and 248.756 shall apply to any cigarettes that are brought back into the customs territory for resale within the customs territory.

(2) The penalties provided in KRS 248.756, 248.760, and 248.762 are in addition to any other penalties imposed under other law.

Effective: January 1, 2002

History: Created 2001 Ky. Acts ch. 150, sec. 10, effective January 1, 2002.

248.990 Repealed, 2026.

[Repealed]