New Laws for a New Year

By PJ Martin

Editor

The Herald-News

Summarized within this article are a few of the laws which take effect on January 1, 2025.

HB11: Anti-Vaping

HB11 is an effort to control underage vaping and secure the safety of existing vape products, House Bill 11 prohibits wholesalers from selling vape products that don’t have Food and Drug Administration authorization or a “safe harbor” certification. It also requires the creation of a “tobacco non-compliance database” to identify retailers that don’t comply with the act.

Some sellers have fiercely opposed the bill, claiming it will benefit only the big vape companies and hurt small businesses that sell vape products with lower nicotine levels.

Resource: Legislative Research Commission

 

SB 47: Cannabis Use / Drug Testing

With the new state medical cannabis licenses and dispensaries set to go into effect, this law allows employers to create policies and procedures to limit the use of cannabis in the workplace, including a drug testing policy, drug-free workplace policy, or zero-tolerance drug policy.

There are six policy items that all Kentucky employers and employees need to be aware of:

• No Requirement to Accommodate Use: Employers are not required to accommodate employee use, possession, or influence of medical marijuana in the workplace. Policies prohibiting its use or maintaining drug-free workplace standards can remain as they are.
• Employee Discipline and Discharge: Employers may enforce drug testing policies and discipline employees for marijuana use if it violates workplace rules. Employees can also be discharged for working under the influence or testing positive for cannabis if it breaches company policy. These actions generally make employees ineligible for unemployment benefits.
• Safety and Job Restrictions: Employers can restrict employees from tasks like operating machinery or vehicles if marijuana use poses safety risks. Employees may not consume or be under the influence of medical marijuana while performing high-risk duties.
• Impairment Determinations: A positive drug test alone does not prove impairment, but if the employer witnesses impairment based on behavior and confirms it with testing, the burden shifts to the employee to demonstrate they were not impaired.
• Federal Compliance: Cannabis use remains illegal under federal law. Employers governed by federal regulations, such as those in transportation or on federal property, must ensure compliance with federal drug-free workplace requirements.
• Reasonable Accommodation and ADA: While employees with qualifying conditions might be covered under the Americans with Disabilities Act (ADA), the law does not require employers to accommodate cannabis use as part of disability accommodations due to its federal prohibition.

Additionally, the law states that an employer cannot be penalized or denied any benefit under state law for employing a person who is a cardholder. The law does not require government assistance, workers comp, or other benefit to reimburse the cost of use for medical cannabis.

Resources: The National Law Review and Legislative Research Commission

 

SB 188: Regulating PBMs

Kentucky is the latest state to pass legislation regulating Pharmacy Benefits Managers (PBMs). The new law applies to PBM contracts issued, renewed, extended, or amended on or after January 1, 2025.

SB 188 applies to nearly all insurance carriers, HMOs, and plan sponsors of self-insured plans which include governmental plans, church plans, and Multiple Employer Welfare Arrangements (“MEWAs”) that offer prescription drug coverage in Kentucky.

Exceptions: It does not apply to self-insured health plans of a hospital if the hospital or health system owns a pharmacy. It does not apply to a plan established by the Kentucky Teachers’ Retirement System, which covers Medicare eligible individuals and their dependents.

The main provisions that will impact employer plans include:

• No required mail order: Plans cannot require or incentivize participants to use mail order for prescriptions. Mail ordering is still allowed, but must be the same terms as retail drug pick-up.
• Minimum reimbursements: PBMs are now required to reimburse a pharmacy no less than the national average drug acquisition cost for each drug. If the national average is not known, the PBM must base the reimbursement on the wholesale acquisition cost.
• Pharmacy Distance Requirement: Pharmacy networks must include an adequate number of non-mail order pharmacies within 30 miles from each participant’s residence.
• Annual Reporting: PBMs and other insurers must file an annual report with the Commissioner of the Kentucky Department of Insurance.

Resource: Legislative Research Commission

 

HB 439: Vision Test for Drivers License

The vision test can be completed at any Kentucky Transportation Cabinet Driver Licensing Regional Office or people can choose to have their regular Optometrist to perform the test and bring the results to the KTC office.

Participants who do not pass will be instructed to see a vision specialist before getting their license renewed.

Also, the requirement for a Real ID becomes effective on May 1, 2025, at Cincinnati/Northern Kentucky International Airport.

Resource: Kentucky Transportation Cabinet