Kentucky Medical Marijuana Business Licenses
Medical Marijuana Legalization Success In Kentucky
Congratulations to Kentucky advocates, lawmakers, and Governor Beshear for getting medical marijuana across the finish line!
Application Requirements Are Here: It’s Time Start Planning
Gov. Andy Beshear recently signed finalized regulations into law outlining licensure timelines, application requirements and more regarding medical cannabis licenses in Kentucky. Though the licensing process will be a qualified lottery, requirements for medical cannabis license applications as well as operating in Kentucky still require extensive cannabis knowledge and proper preparation. This means the clock starts now for hopeful medical cannabis operators to start working on their business plans and financial models and prepare for the announcement of the application.
Start Business Planning Now
Now that we know exactly what’s required for each license type, those hoping to apply for a license should start now.
Business planning and financial modeling now is an important early step in being prepared for applying for a license.
Contact our medical marijuana license consultants now to start planning.
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How to Apply for a Medical Marijuana License in Kentucky
The newly created Office of Medical Cannabis will operate, oversee, and regulate the cannabis program and licensing process. Within this Office there will be the Division of Enforcement and Compliance and the Division of Licensure and Access.
License Types in Kentucky
Start planning now to apply for medical marijuana licenses in these categories:
- Four tiers of cultivators
- Producers
- Processors
- Safety compliance facilities
- Dispensaries
Plans Required Before Operation
Though this will be a qualified lottery, you are still required to submit a summary of intended plans of operation, which will include, at minimum:
- Security
- Employee qualifications, supervision, and training
- Transportation of medicinal cannabis
- Storage and labeling of medicinal cannabis
- Inventory management
- Recordkeeping
- Preventing unlawful diversion of medicinal cannabis
- Workforce development and job creation
Additionally, you will need these plans in full detail in order to begin operation. Getting a head start on these plans will ensure a speedy roll out once you are licensed, which is especially important for cultivators who will be permitted to begin cultivating cannabis as soon as they are licensed.
Property Requirements and Regional Limits
The initial application will require an address of where you plan to operate as well as site plans. However, local governments are permitted to opt out of allowing cannabis businesses until December 31, 2024. Citizens could petition to have their municipalities opt back in, but you'll want to do your best to ensure your chosen municipality plans to opt in before committing to a property.
This first round of licensing in Kentucky will award:
- 16 Cultivator licenses
- 10 Processor Licenses
- 48 Dispensary Licenses.
While the cultivator and processor licenses have no initial limits on where they may operate, retail licenses will be split amongst eleven (11) regions. Each region will receive 4 to 6 dispensaries, depending on the size.
What is the Medical Marijuana License Timeline in Kentucky?
In addition to the release of application requirements, regulations also state that licenses could be awarded beginning as soon July 1, 2024. This means we are expecting a licensing round some time between July 1 - August 31. Now that we know exactly what’s required for cultivators, processors, producers, and dispensaries to apply for a license and begin operations, business and licensure planning begins now.
Medical Marijuana Program Launch One Year After Legalization
While cultivators will be permitted to begin cultivating cannabis as soon as they are licensed, retail and processors will not be allowed to purchase or begin operations until January 1, 2025, per regulations. This is crucial for cultivators as they'll want to have everything from operational plans to security design prepared for operations as soon as they are licensed.
Kentucky Medical Cannabis Application Fees
Amongst the new regulations was something we've all been waiting to see - license application fees. They are as follows:
- Tier 1 cultivator: $3,000
- Tier II cultivator: $10,000
- Tier III cultivator: $20,000
- Tier IV cultivator: $30,000
- Processor: $5,000
- Producer: $5,000, plus the applicable cultivator tier application fee
- Dispensary: $5,000
- Safety Compliance Facility: $3,000
Get Your Cannabis Business License in Kentucky
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