Kentucky Cannabis Application Opens Soon

Kentucky Cannabis Application Opens Soon

Sabrina
MAY 31ST, 2024

Kentucky’s Cannabis Application process is set to open July 1, 2024 and close August 31, 2024.

Kentucky Medical Marijuana Overview

On March 31, 2023, the Governor of Kentucky signed a bill, SB 47, to legalize medical marijuana, making the state the 38th in the U.S. to enact the reform. The bill establishes a structure to regulate the medical cannabis program, including dispensaries, cultivators, practitioners, processors, and products and issuing identification cards to patients and caregivers. The bill establishes the authorization process for practitioners to recommend the use of medicinal cannabis and establishes the cannabis business license application process and requirements. Most notably, the bill wouldn’t take effect until the start of 2025, to allow state health officials time to craft regulations to oversee the program.

Kentucky Medical Marijuana License Information

The Cabinet shall publish notice of the number and category of cannabis business licenses available for distribution at the close of an initial license application period and provide the time frame during which initial license applications shall be accepted by the Cabinet. If the number of eligible applications exceeds the number of licenses available within a cannabis business category following the close of an initial license application period, the cabinet shall conduct a lottery to issue the licesnes for that business category.

 

Cannabis Cultivator – an entity that is licensed to acquire, possess, plant, cultivate, raise, harvest, trim, or store cannabis seeds, seedlings, plants, or raw plant material; Deliver, transport, transfer, supply, or sell raw plant material or related supplies to other licensed cannabis businesses in this state; or sell cannabis seeds or seedlings to similar entities that are licensed.

  • Tier I cannabis cultivator: A Tier I cultivator shall not exceed an indoor growth area of two thousand five hundred (2,500) square feet.
    • 10 Tier I Cultivator Licenses available
  • Tier II cannabis cultivator: A Tier II cultivator shall not exceed an indoor growth area of ten thousand 16 (10,000) square feet
    • 4 Tier II Cultivator Licenses available
  • Tier III cannabis cultivator: A Tier III cultivator shall not exceed an indoor growth area of twenty-five 18 thousand (25,000) square feet
    • 2 Tier III Cultivator licenses available
  • Tier IV cannabis cultivator: A Tier IV cultivator shall not exceed an indoor growth area of fifty 20 thousand (50,000) square feet*

 

Cannabis Processor – a licensed entity who may acquire or purchase raw plant material from a cultivator, processor, or producer in this state; Possess, process, prepare, manufacture, manipulate, blend, prepare, or package medicinal cannabis; Transfer, transport, supply, or selling medicinal cannabis and related supplies to other cannabis businesses; or Sell cannabis seeds or seedlings to similar entities that are licensed to cultivate cannabis

  • 10 Cannabis Processor Licenses available

 

Cannabis dispensary – an entity who is licensed to acquire or possess medicinal cannabis from a cultivator, processor, or producer; Acquire or possess medicinal cannabis accessories or educational material; Supply, sell, dispense, distribute, or deliver medicinal cannabis, medicinal cannabis accessories, and educational material to cardholders or other dispensaries; Sell cannabis seeds to similar entities that are licensed to cultivate cannabis. Acquire, accept, or receive medicinal cannabis products from a cardholder, except that a dispensary may not offer anything of monetary value in return for medicinal cannabis received from a cardholder.

  • 48 Cannabis Dispensary Licenses available

 

Cannabis Producer (cultivation & processing capabilities) –  means an entity who is licensed to acquire, possess, plant, cultivate, raise, harvest, trimm, or store cannabis seeds, seedlings, plants, or raw plant material; Deliver, transport, transfer, supply, or selling raw plant material, medicinal cannabis products, or related supplies to other licensed cannabis businesses; Sell cannabis seeds or seedlings to similar entities that are licensed to cultivate cannabis in this state or in any other jurisdiction; Acquire or purchase raw plant material from a cultivator; or possess, process, prepare, manufacture, manipulate, blend, prepare, or package medicinal cannabis. Cannabis Producers are limited to an indoor cannabis growth area of fifty thousand (50,000) square feet. A cannabis business licensed as a producer may operate cultivation and processing activities at separate locations, but shall not operate more than one (1) cultivation and one (1) processing facility per license.*

 

Cannabis Safety Compliance facility (testing & education) – means an entity who is licensed to acquire or possessing medicinal cannabis obtained from cardholders or cannabis businesses; Testing of medicinal cannabis produced, including testing for cannabinoid content, pesticides, mold, contamination, vitamin E acetate, and other prohibited additives Transport medicinal cannabis that was produced by cannabis businesses; The production or sale of approved educational materials related to the use of medicinal cannabis; The production, sale, or transportation of equipment or materials other than medicinal cannabis, including but not limited to lab equipment and packaging materials that are used by cannabis businesses and cardholders, to cardholders or cannabis businesses licensed;; Training cardholders and cannabis business agents. Training may include but need not be limited to: The safe and efficient cultivation, harvesting, packaging, labeling, and distribution of medicinal cannabis; Security and inventory accountability procedures; Up-to-date scientific and medical research findings related to use of medicinal cannabis; Receiving compensation for actions allowed under this section; Engaging in any noncannabis-related business activities that are not otherwise prohibited or restricted by state law.

  • No initial limitation on Safety Compliance Facility licenses

 

*Tier IV Cultivator licenses and Producer licenses will not be available during the initial license application availability period.

 

Are you interested in obtaining a cannabis business license in Kentucky? Call us to speak with an industry expert at 602-290-9424.

Need help developing an effective business plan? Shop our templates today!

 

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