Kansas 2025-2026 Regular Session

Kansas House Bill HB2405

Introduced
3/10/25  

Caption

Enacting the adult use cannabis regulation act to regulate the cultivation, manufacturing, possession and sale of cannabis in this state.

Summary

HB 2405 would create the “adult use cannabis regulation act” and establish a comprehensive state framework for legal cannabis in Kansas. The bill authorizes licensure and regulation of the full cannabis supply chain, including cultivation, testing, manufacturing, transportation, retail sales, waste disposal, hospitality venues where cannabis may be consumed, and hospitality-and-sales businesses where cannabis may be consumed and sold on-site or for off-site use. It also creates occupational licensing, ownership disclosure, suitability review, seed-to-sale tracking, product testing, packaging and labeling rules, and a cannabis advisory committee to help develop implementation recommendations. The bill also legalizes cannabis activity only within the new regulatory system and expressly preserves the ability of property owners, employers, schools, postsecondary institutions, and others to prohibit cannabis on their property. It sets a 15% excise tax on cannabis sales, establishes a cannabis business regulation fund for enforcement and administration, and directs tax revenue from cannabis sales to the state general fund. The bill contains detailed enforcement provisions, including criminal penalties for unlicensed activity, underage sales, false reporting, and attempts to evade disclosure or testing requirements, while exempting licensed cannabis businesses from certain controlled-substance offenses when acting within the act. In addition to creating the new cannabis code, HB 2405 amends several existing criminal and tax statutes to carve out lawful cannabis activity from Kansas controlled-substance laws and related drug-paraphernalia provisions. It revises statutes governing manufacture, possession, distribution, communication-facility offenses, drug paraphernalia, and marijuana-related tax definitions so that licensed cannabis businesses operating under the act would not be prosecuted under those provisions for authorized conduct. The bill also adds tax administration provisions, including monthly reporting, penalties for nonpayment, and enforcement authority for the Department of Revenue and the Division of Alcoholic Beverage Control. Because there were no committee transcripts or recorded votes provided, the available context does not show formal support or opposition from legislators in committee. Based on the bill’s structure and subject matter, it appears designed as a major policy shift toward regulated adult-use cannabis rather than a narrow technical change. The overall tone of the bill text is regulatory and implementation-focused, emphasizing public health, security, taxation, and enforcement rather than simple decriminalization. The main points of contention likely center on legalization itself, the scope of retail access, on-site consumption, delivery, and the balance between market access and public safety. The bill imposes significant restrictions on location, age, ownership, testing, and advertising, which suggests likely debate over whether the framework is too permissive or too restrictive. Other likely issues include the 15% tax rate, the role of the state in enforcement, limits on foreign ownership and investor participation, and whether the bill sufficiently protects schools, youth, and local control.

Impact

HB 2405 would substantially amend Kansas criminal, licensing, and tax law by creating a new statutory regime for adult-use cannabis and exempting authorized cannabis activity from existing controlled-substance and paraphernalia offenses. It would also establish new state administrative authority, fees, penalties, a cannabis business regulation fund, and a 15% excise tax on cannabis sales, while directing the Department of Revenue and the Division of Alcoholic Beverage Control to implement and enforce the program. The bill would repeal or revise multiple statutes to align Kansas law with legalized, regulated cannabis commerce.

Sentiment

No committee transcript or vote history was provided, so there is no recorded legislative debate to summarize. From the bill text alone, the measure is clearly drafted as a comprehensive legalization-and-regulation proposal with extensive safeguards, suggesting a policy approach aimed at balancing legalization with tight oversight. The tone is serious, detailed, and administrative, indicating an effort to address likely concerns about public health, diversion, taxation, and enforcement.

Contention

The most likely areas of contention are the legalization of adult-use cannabis itself, the inclusion of hospitality businesses and delivery, and the extent of state regulation versus local or private property restrictions. The bill’s detailed ownership and suitability rules, foreign ownership prohibitions, and law-enforcement-style powers for regulators suggest concern about diversion, criminal involvement, and market concentration. Opponents may focus on youth access, impaired driving, and social impacts, while supporters would likely emphasize tax revenue, regulated access, and replacing illicit-market activity with a controlled system.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2002

Expanding medical assistance eligibility and enacting the cutting healthcare costs for all Kansans act.

KS SB8

Exempting the sale of firearms, firearms accessories, ammunition, firearm safes and firearm safety devices from the retatilers' sales tax.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS SB6

Providing a sales tax exemption for sales of electricity to residential premises by municipally owned or operated utilities.

KS HB2001

Authorizing the secretary of commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex, providing for additional revenue sources, expanding the powers and discretion of the secretary and making other changes to the STAR bonds financing act to facilitate such projects, limiting the secretary’s authority to approve such projects to one year unless extended by the legislative coordinating council, authorizing the Kansas development finance authority to issue STAR bonds for such projects, transferring funds under certain circumstances from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal year ending June 30, 2025, and, if approved by the legislative coordinating council, for the fiscal year ending June 30, 2026.

KS HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS SB7

Authorizing federally licensed firearm dealers, in addition to county sheriffs, to receive applications for concealed carry licenses and forward such applications to the attorney general, prohibiting sheriffs from assessing any fee related to application services and allowing dealers to assess a fee related to application services not to exceed $20.

KS SB3

Clarifying the procedures and restrictions on accepting a nomination for an elected office.

KS SB5

Authorizing counties to impose an earnings tax.

Similar Bills

No similar bills found.