Kentucky HB 198 Explained: Decriminalization and Retroactive Expungement
Kentucky HB 198 would remove criminal penalties for possession of defined “personal use” cannabis amounts and create a pathway for retroactive expungement of certain convictions. It does not legalize commercial cannabis sales but focuses on reducing penalties and clearing eligible records.
Decriminalizing the Bluegrass: A Bill Focused on Penalties, Not Sales
HB 198 is one of the most consequential cannabis reform proposals in Kentucky’s 2026 session because it targets the criminal justice side of cannabis policy rather than building a commercial market.
Instead of regulating dispensaries or taxation, the bill zeroes in on what happens when someone is caught with cannabis, how the law treats possession, what penalties apply, and whether past records can be cleared.
In short, this is not about expanding access. It is about reducing consequences.
What HB 198 Does
At a high level, HB 198 Kentucky proposes to:
- Remove civil and criminal penalties for possession of defined personal-use quantities
- Create a new section within KRS Chapter 218A to formalize this exemption
- Make conforming changes across related statutes, including:
- Possession laws
- Cultivation provisions
- Paraphernalia rules
- Trafficking thresholds
- Adjust probation and conditional discharge rules
- Modify forfeiture provisions tied to cannabis offenses
- Establish a pathway for expungement of certain cannabis convictions, including partial retroactive application
This “conforming changes” piece is critical. It ensures that once penalties are removed, the rest of the legal framework does not contradict that change.
Defining “Personal Use Quantity” (Core of the Bill)
The most important detail for readers is how the bill defines personal-use cannabis in Kentucky.
According to the Kentucky Legislative Research Commission summary, HB 198 sets the following limits:
- Up to 1 ounce of cannabis (plant form)
- Up to 5 grams of concentrates or resin
- Cannabis products with ≤1,000 mg delta-8 or delta-9 THC
- Up to 5 cannabis plants
This definition is the operational boundary of the law.
Everything within these limits would fall under decriminalization.
Anything beyond them could still trigger traditional enforcement.
Think of it as a legal threshold line, step under it, and penalties disappear. Step over it, and existing laws may still apply.
Decriminalization vs Legalization
Decriminalization
- Removes or reduces criminal penalties
- May still involve civil fines or no penalty at all
- Does not create a legal commercial market
Legalization
- Establishes a regulated system for production and sales
- Includes licensing, taxation, and retail frameworks
HB 198 clearly falls into the decriminalization category.
It does not:
- Authorize dispensaries
- Create a retail market
- Treat cannabis like alcohol
Instead, it narrows the scope of criminal enforcement for defined personal-use activity.
Expungement: The Retroactive “Second Chance” Mechanism
One of the most impactful components of HB 198 is its focus on record-clearing.
The bill proposes creating a pathway within KRS Chapter 431 for expungement of certain cannabis-related convictions, with partial retroactive application.
What this means in practice:
- Eligible individuals could apply to have past cannabis convictions removed
- Expungement could improve access to the following:
- Employment opportunities
- Housing
- Professional licensing
This shifts the bill from being purely forward-looking to also addressing past enforcement outcomes.
In effect, HB 198 is not just about changing future penalties. It is about revisiting past ones.
Why Local Governments Are Paying Attention
HB 198 has implications beyond individual users. It also affects enforcement systems.
According to the Legislative Research Commission’s local mandate analysis:
- Removing penalties for personal-use quantities could reduce:
- Arrests
- Jail intake
- Court processing volumes
- The fiscal impact is described as positive but indeterminate
For local governments, this is less about cannabis policy and more about resource allocation.
Fewer low-level offenses could mean fewer demands on already strained systems.
Current Status of HB 198 (January 2026 Update)
As of mid-January 2026:
- HB 198 Kentucky, was introduced in early January
- It has been referred to the House Judiciary Committee
At this stage, the bill is:
- Active
- Under review
- Not yet passed
- Not yet law
This means all provisions remain proposed, not implemented.
What HB 198 Does Not Do
To avoid confusion, here’s what the bill does not accomplish:
- It does not legalize recreational cannabis sales
- It does not create dispensaries or retail access
- It does not fully eliminate enforcement beyond defined limits
- It does not automatically expunge all cannabis-related records
Instead, it focuses narrowly on defined personal-use conduct and its legal consequences.
