Medical Cannabis Business Applications to Begin in Kentucky Next Week

Kentuckians will soon have access to medical cannabis with a key date approaching next week. Starting July 1, the application submission period opens for medical cannabis business applications. Businesses can start operating on January 1, 2025.

Available License Types

Four license types will be available:

1. Cultivator: Responsible for planting, raising, harvesting, trimming, and curing raw plant material.
2. Processor: Responsible for processing and packaging raw plant material into usable product formats.
3. Safety Compliance Facility: Responsible for contamination and purity testing of raw plant material and products.
4. Dispensary: Responsible for purchasing and selling finished products to cardholders.

Licensing and Restrictions

Kentucky will issue 48 dispensary licenses, with only two approved in Jefferson County to start. State law restricts dispensaries from operating within 1,000 feet of schools or daycares.

Application Requirements

Business applications require detailed information, including federal tax identification, Kentucky Secretary of State organization number, and contact information. Location information, such as an existing lease/deed or contingent agreement to lease or purchase the identified property, is also required.

Applicants must submit a site plan, financial plan, confirmation of available capital, and a timeline showing steps and estimated time to begin the cannabis business. The site plan must address compliance requirements like alarm systems, security cameras, and surveillance lighting.

Capital Requirements and Fees

Interested parties must prove sufficient capital. For example, dispensary applicants must demonstrate $150,000 of available capital, pay a $5,000 nonrefundable application fee, and, if granted, a $30,000 initial licensing fee. Annual renewal fees are $15,000.

Community Guidance

John Payne, partner of Amendment 2 Consultants, advises careful consideration before applying. His group hosted a Q&A session in Louisville to explain the process. CJ Carter, a medical cannabis advocate, highlighted that capital requirements might pose challenges for some individuals. The application period closes on August 31, 2024, with licensing decisions expected in October.

A Personal Impact

Julie Cantwell, whose son suffered from epilepsy, sees this as a long-awaited opportunity, as medical cannabis significantly reduced her son’s seizures.