Medical Cannabis business applications open next week in Kentucky
Kentuckians will soon have access to medical marijuana with a key date approaching next week.
Starting July 1, the application submission period opens for medical cannabis business applications. Businesses can start operating Jan. 1, 2025.
Four license types will be available:
- Cultivator: responsible for planting, raising, harvesting, trimming and curing raw plant material
- Processor: responsible for processing and packaging raw plant material into usable product formats
- Safety compliance facility: responsible for contamination and purity testing of raw plant material and products
- Dispensary: responsible for purchasing and selling finished products to cardholders
Kentucky will issue 48 dispensary licenses. Only two dispensaries will be approved in Jefferson County to start.
State law restricts dispensaries from operating within 1,000 feet of schools or daycares.
Business applications require detailed information from applicants, including general information, like its federal tax identification, Kentucky Secretary of State organization number, and contact information. Also required is location information such as the existing lease/deed or contingent agreement to lease or purchase the identified property.
Applications will also be required to submit its site plan, financial plan, confirmation of available capital, timeline showing steps and estimated amount of time it will take to begin cannabis business and more. The site plan must address how it meets compliance requirements like alarm systems, security cameras and lighting required for surveillance.
"There is a lot of compliance that people have to keep track of," said John Payne, partner of Amendment 2 Consultants, a cannabis consulting firm. "People should give it a hard look before they jump in, but if they want to do it, I think they should jump in with both feet."
Payne's group hosted a Q and A session for interested applicants in Louisville Wednesday night, explaining the process to apply for business licenses.
On top of the application information, interested parties must have the capital.
For example, to operate a dispensary, applicants must prove $150,000 of sufficient capital available, pay a $5,000 nonrefundable application fee, then a nonrefundable $30,000 initial licensing fee if granted.
Granted licenses must also pay a $15,000 annual renewal fee.
"That's one of the issues that a lot of individuals have is they don't have access to the capital that they would need in order to be eligible to enter the lottery," said CJ Carter, a medical marijuana advocate and commercial realtor who presented during Wednesday's panel.
The application period closes Aug. 31, 2024. Licensing decisions from the lottery will happen some time in October.
While the process will be long and costly, it is a day many have waited for, like Julie Cantwell.
Cantwell said her son suffered from around 200 seizures a day because of epilepsy, until he had access to medical cannabis.
