Kentucky Cannabis Planning: Primer To Possible Requirements

Ensure Your Kentucky Cannabis Business Has the Necessary Plans

Of all the states that will be entering the cannabis space in the coming 12-months or so, none are more exciting to us than Kentucky. Simply put, the state has a mountain of potential going for it. With a population of over 4.5 million along with a rich history of hemp agriculture, Kentucky has the potential to be one of the premier medical states in the country when its market launches in 2025. Given this, it’s important to think about everything you will need to have organized and written prior to submitting your application for cannabis licensure

We are still waiting on further regulations to be promulgated from the Kentucky Medical Cannabis Program which will detail specifically what information will be necessary for the application and how many licenses will be issued. But we can review the information we have now and make some educated guesses. Here we can detail some of the plans from the published regulations (so far) that individuals will need to either secure their license or maintain compliance with the Cabinet of Health and Family Services. There are certain Plans of Operations defined in the regulations which will be required prior to activities associated with the respective business and below is just a sample of what is to come and is worth starting to think about.


Employment Policies and Procedures

This is standard operations necessary for any business, and cannabis is no different. Be sure to have all necessary policies and procedures for employment ready, which may include details such as employee onboarding, training, and diversity practices.


Highly Detailed Facility/Building Security Plan

Of all the operating procedures detailed in the most recent round of regulations, none have as much detail as those for security. This indicates to us that security will be a hefty requirement within the application process and business will need to take serious steps to address this.

Notably, processes will need to be in place for installing and equipping such as alarm systems, video surveillance, and loitering prevention along with procedures for staff and visitor attendance monitoring, inventory tracking, and storage of cannabis and cannabis products.


License Type Specific Standard Operating Procedures (SOPs)

When it comes to cannabis operations, everyone will need to have some standard operating procedures applicable to their type of business. For example, a cannabis cultivator will need to be sure to address processes for receiving, growing, cultivating, harvesting, handling, packaging, labeling, storing, transporting, and disposing of cannabis and cannabis products. A cannabis retailer (dispensary), meanwhile, will need to make sure they have procedures in place for maintaining patient confidentiality. 


Compliance Investigation Process and Procedures

An often-overlooked area of cannabis operations is investigation procedures. It’ll be essential for any licensed operator to have processes in place to investigate complaints and potential adverse events received from other cannabis businesses, medical patient cardholders, or medical cannabis practitioners.


Cannabis Product Recall Plan

Exhaustive plans focused on recalling cannabis and cannabis products are the norm in most states, and Kentucky is no different. We have ample information from the regulations that business across the cannabis supply chain will need to have plans and processes in place to address voluntary and/or mandatory recalls. These will need to strictly adhere to state regulations that call for timely notifications, securing and isolating potentially contaminated goods, and identifying a coordinator to manage and mitigate such occurrences.


This is Just the Beginning – Our Kentucky Consultants Can Help

There are over a dozen plans of operations detailed in the regulations, and we anticipate more details on each of these and potentially more plans for licensure or renewal to be on the horizon. In a state like Kentucky, which is going to be offering some of the most potentially lucrative licenses not just in the region but the country, starting earlier is never a bad option. At Canna Advisors, we will be able to assist with all your financial modeling, business planning, and licensure pursuit needs to make sure you’re ready to go on January 1, 2025. 

Contact us today to begin preparing operational plans for your Kentucky medical cannabis license or schedule an hourly consultation to speak with an expert about your specific needs.

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