Kentucky regulators have green lit comprehensive regulations for the state’s medical cannabis market, paving the way for the program’s anticipated January launch.
The statehouse’s Administrative Regulation Review Subcommittee on Wednesday signed off on rules establishing application and licensing fees, as well as other requirements for medical cannabis businesses, according to Kentucky Today.
Under the approved tier structure, cultivator application fees will range from $3,000 to $30,000, depending on the operation’s size. Processors, dispensaries and testing labs face $5,000, $5,000 and $3,000 application fees, respectively.
For successful applicants, initial and annual license fees vary by business type and scale. Cultivator fees range from $12,000 for the smallest operations to $100,000 for the largest, while processors and dispensaries will pay $25,000 and $30,000 respectively.
According to the outlet, Sam Flynn, executive director of Kentucky’s Office of Medical Cannabis, told the subcommittee that despite hefty fees, interest has been high.
“The total number of applications was 4,998,” Flynn said, noting that the state collected approximately $27.7 million in non-refundable application fees.
The state plans to issue at least four dispensary licenses in each of 11 regions, with no more than one per county. Exceptions include Jefferson and Fayette counties, which may receive up to six licenses each.
A lottery system will determine license recipients in each region, with the cultivator and processor lottery scheduled for Oct. 28. The dispensary permit lottery is expected to follow in November. The state already last month doled out its first permit to a testing lab.
The rules approval marks a meaningful milestone in Kentucky’s journey toward propping up a fully-fledged medical cannabis market. Gov. Andy Beshear even signed legislation in April to expedite the licensing process, moving the application window to July 1 through Aug. 31 of this year, rather than January 2025 as originally planned.
However, the program’s rollout hasn’t been without challenges. By July, only 13 companies had applied for the 48 available licenses, prompting Beshear to encourage earlier submissions. The state last month doled out its first permit to a testing lab.
Kentucky’s medical cannabis program will serve patients with specific conditions, including cancer, severe pain, epilepsy, multiple sclerosis, muscle spasms, chronic nausea and post-traumatic stress disorder.
Patients can begin registering for ID cards in January, coinciding with the anticipated start of sales.
The cultivator and processor lottery is scheduled for Oct. 28, with a dispensary permit lottery expected to follow next month. Read More