The rollout of Kentucky Medical Cannabis is facing serious challenges as dispensary applicants question whether the state’s selection process was fair or even constitutional. Several cannabis companies have filed lawsuits against the Office of Medical Cannabis, arguing that the process to award licenses under the Kentucky Medical Cannabis program was flawed and lacked transparency.
In 2023, Governor Andy Beshear signed a bill to legalize Kentucky Medical Cannabis, marking a historic step for the state. The Office of Medical Cannabis began accepting applications in 2024 for dispensaries, cultivators, and processors. Over 4,000 applications were submitted, but only 48 winners were selected through a lottery system managed by the Kentucky Lottery. The method quickly drew criticism, sparking a heated debate about whether Kentucky Medical Cannabis was being rolled out fairly.
Attorney Greg Troutman, representing several denied applicants, claims the lottery system violated the state constitution. He argues that the Cabinet for Health and Family Services, which oversees the Office of Medical Cannabis, exceeded its authority by deciding how to distribute Kentucky Medical Cannabis licenses. According to Troutman, those decisions should have been made by the General Assembly, not by an executive agency.
Troutman says the state’s contract with the lottery company was inappropriate, as the law only permits it to manage gaming lotteries. He added that the selection process for Kentucky Medical Cannabis dispensaries was not transparent, since the public only saw a computer screen generating random numbers without visibility into the underlying algorithm.
The defense, led by attorney Aaron Saleto, maintains that the Office of Medical Cannabis acted within its legal authority and that Senate Bill 47, which established the Kentucky Medical Cannabis program, is constitutional. They are asking the court to dismiss the case, emphasizing that the legislature legally delegated power to the executive branch to manage the program’s rollout.
Judge Tracy Davis is presiding over the case in Jefferson County, where both sides are presenting arguments that could shape the future of Kentucky Medical Cannabis.
Right now, about 15,000 residents in Kentucky hold medical cannabis cards, but dispensaries have not yet opened. One location in Ohio County has been approved, offering hope that Kentucky Medical Cannabis could soon become available to patients in need.
This lawsuit will likely determine whether the state must redo parts of the licensing process or move forward as planned. For many, the outcome will define not just how Kentucky Medical Cannabis is distributed—but also how future cannabis laws are implemented across the state.