SENATE PASSES BILL TO LIMIT APPLICATION OF DRUG TAX

FRANKFORT, Ky. -- A bill to limit the state drug tax to people convicted of
drug offenses was passed by the Senate on Wednesday.

The bill would prevent the tax from being levied against people who aren't
facing drug charges or indictments.

The "Marijuana & Controlled Substances Tax Act" was enacted by legislators
in 1994. Since then, it has generated nearly $400,000.

The tax is currently levied whenever there is possession of a drug and is
technically not related to any criminal charges.

The bill's supporters have said the current law could harm innocent
landowners. The discovery of a few wild hemp plants, for instance, could
lead to a drug tax hearing, even if the landowner wasn't charged with a
drug offense, the supporters said. In those cases, the Revenue Cabinet
usually requires the posting of a bond equal to the potential tax.

The bill would require a conviction before the tax could be applied.

The measure passed the Senate 34-0. It now returns to the House, which will
consider a change made by the Senate.

The Senate amended the bill to allow the Revenue Cabinet to file a lien
notice against someone indicted in a drug case.

(The legislation is House Bill 356).