Are you looking to open a medical cannabis business in Kentucky? Our Kentucky cannabis consultants are here to guide you through every step of the application process, ensuring a smooth and successful submission.
With new regulations and a streamlined application process, now is the perfect time to get started. The Kentucky medical cannabis program is set to begin accepting applications through an online portal on July 1, 2024, and will continue until August 31, 2024. This expedited review process highlights the urgent need for medical cannabis as an alternative treatment option for many Kentuckians.
On this page, you’ll find:
- An overview of the Kentucky Medical Cannabis Program and its key components.
- A summary of the essential laws and emergency regulations governing the program.
- A step-by-step guide to completing your medical cannabis business application.
With a limited number of licenses available, early preparation is crucial. Dive into our comprehensive guide and let us help you navigate the complexities of the Kentucky medical cannabis licensing process.
FUN FACT: We’ve worked in the Kentucky medical cannabis space since 2013, and Senator Perry Clark of Kentucky has written a letter of support to Quantum 9.
Kentucky Cannabis Consultants
Regulatory Oversight
The Office of Cannabis Management is responsible for developing and implementing regulations for the Kentucky Medical Cannabis Program. This agency ensures that all medical cannabis businesses comply with state laws and maintain high standards of safety and quality.
Laws and Regulations
Understanding the legal framework governing Kentucky’s medical cannabis program is crucial for any business looking to enter the market. Here are the key laws and regulations you need to familiarize yourself with.
Key Laws related to Medical Cannabis in Kentucky
These laws provide the foundation for the medical cannabis program in Kentucky. They outline the legal parameters for cultivation, processing, and distribution of medical cannabis within the state:
- Kentucky’s medical cannabis program and framework was established by Senate Bill 47, which is codified in KRS Chapter 218B
- On April 17, 2024, Governor Andy Beshear signed House Bill 829, which makes changes to certain provisions of KRS Chapter 218B.
Our Kentucky marijuana consultants will summarize the latest laws in this article, so don’t worry if you dont have time to read through the laws.
Key Regulations summarized by our Kentucky Cannabis Consultants
These regulations detail the operational standards and compliance requirements for medical cannabis businesses in Kentucky. They cover everything from application procedures to operational guidelines:
- 915 KAR 1:001 Definitions
- 915 KAR 1:030 Cultivator
- 915 KAR 1:040 Processor
- 915 KAR 1:050 Producer
- 915 KAR 1:060 Safety compliance facility
- 915 KAR 1:070 Dispensary
- 915 KAR 1:080 Transportation and delivery of medicinal cannabis
- 915 KAR 1:090 Advertising
- 915 KAR 1:100 Packaging and labeling of medicinal cannabis
- 915 KAR 1:110 Medicinal cannabis testing
- 915 KAR 1:010E Initial and renewal applications for cannabis business licenses
- 915 KAR 1:020E Cannabis business licenses
By reviewing these key laws and regulations, you can ensure that your business operates within the legal framework of Kentucky’s medical cannabis program.
However, our Kentucky cannabis consulting firm summarizes all the key pieces of information for you in this article. But if you still have any questions, schedule a call and we’ll be glad to answer any questions you may have about starting a cannabis business in Kentucky.
Timeline
The Program will accept initial applications for Kentucky cannabis business licenses beginning on July 1, 2024 through August 31, 2024.
Here is a visual representation of the timeline:
Get a head start and engage our expert Kentucky cannabis license consultants to help you prepare and submit your application(s). Its never to early to start preparing to ensure you submit a complete application.
The first lottery was held on October 28th, 2024 for cultivators and processors, and the second lottery was held on November 25th, 2024 for dispensaries. Another lottery of dispensaries is scheduled for December 16th, 2024. Here is a complete list of Kentucky cannabis lottery winners.
Types & Number of Marijuana Business Licenses in Kentucky
The Program filed the following five different regular cannabis business license types:
- Cultivators,
- Processors,
- Producers,
- Dispensaries, and
- Safety compliance facilities.
Kentucky will allow for a limited number of initial licenses from the following license categories:
Kentucky Cannabis License Application
When applying for a cannabis business license in Kentucky, there are four key areas to focus on:
- Eligibility
- Required Documentation
- Application Process
- Fees
By understanding these four areas, you can submit a complete and competitive license application. Our Kentucky cannabis consultants summarize the key pieces of information for each area below.
Eligibility
There are a few eligibility requirements to become a Kentucky cannabis business license holder, including:
- No one associated with your business can be convicted of a disqualifying felony offense;
- No one associated with your business can be younger than 21 years of age;
- You must demonstrate sufficient capital (more on this below); and
- Your proposed location cannabis be located within 1,000 feet of an existing elementary or secondary school or a day care center.
One interesting thing to note is that in-state residency is not a requirement for licensure.
As for demonstrating sufficient capital, our Kentucky cannabis consultants summarize the required “sufficient capital” that you must show proof of per license type (also for each application you submit):
Required Documents
In order to submit a complete Kentucky cannabis business license application, you must submit the following documents with your application:
- Site plan*
- Existing Lease or Deed or Contingent Agreement*
- Confirmation of sufficient capital available*
- Financial plan*
- Business Entity Formation documents*
- If applicable, summary of experience of operating a business in Kentucky
- A timeline showing the steps and estimated amount of time the applicant will take to begin cannabis business activities in the state*
- Summary of the intended plan of operation*
- If applicable, management service agreement
*Required documentation
Lottery Process
The Kentucky medical cannabis program will allocate its initial business licenses through a lottery system, ensuring fairness and transparency. A lottery will be conducted only if the number of eligible applications surpasses the available licenses for each business category (as shown above).
Once a Kentucky cannabis business license application is reviewed and deemed complete by the program, it will be entered into the licensing lottery for the relevant category if necessary.
Our cannabis consultants in Kentucky attached a graphic summary of the lottery process below.
Notably, Safety Compliance Facility licenses are exempt from this lottery process due to the absence of an initial license cap.
Once you are awarded a license, you must meet Kentucky’s cannabis operational requirements prior to first day of cannabis business activities.
Fees (Application and Licensing Fees) – Summarized by Kentucky Cannabis Consultants
The Kentucky medical cannabis program will require the following application, initial licensing, and annual renewal fees:
Steps for Winning Kentucky Medical Cannabis Licenses (Steps 1-10)
Step 1: Read the Laws and Regulations
Our Kentucky cannabis business consultants suggest you begin by reading the laws and rules of the medical cannabis program, as outlined above.
Step 2: Choose a license type
The second step is choosing the right Kentucky cannabis business license type for you. Each license allows you to lawfully conduct specific activities.
For example, if you want to grow medical cannabis, a Kentucky cultivation license makes sense. On the other hand, if you want to sell cannabis and products directly to patients, you will need a dispensary license.
If you’re not sure exactly which cannabis business license type is right for you, speak with our Kentucky cannabis license consultants. We can help you refine your ideas and forge the structure for your medical marijuana business.
Plus, we can handle all aspects of writing and submitting your application so you can submit your application in time for emergency regulations consideration.
Step 3: Engage our Kentucky cannabis consultants
We understand how difficult it can be to read through hundreds of pages of laws while trying to create a business simultaneously. That’s why we recommend you engage our Kentucky cannabis consulting team to assist you.
Our cannabis consultants coach you every step of the way and manage your application from start to finish.
We have one of the highest success rates in the industry at winning cannabis business licenses (+91%). We’ve competed for and won medical cannabis business licenses in the most competitive markets in the world and over 33 U.S. States. We are experts in the cannabis industry and can help you outcompete the competition.
BONUS: In 2013, Senator Perry Clark of Kentucky wrote a letter of support to Quantum 9 regarding medical cannabis in Kentucky, a copy of which can be found here.
Step 4: Form a business entity
The fourth thing you should do is form a business entity for the application. Your legal entity will allow you to enter into agreements and assemble the required formation documents as part of the application. We typically find cannabis applicants set up a business entity such as an LLC or an S-corp.
Step 5: Build a team
Your team’s expertise and qualifications are crucial to the eligibility of your application. Build a team that shows the Program that you are the best candidate to receive and operate the license.
Are you finding it difficult to find talent with cannabis experience? Quantum 9 can help you recruit a team with deep industry expertise.
Step 6: Develop a business plan
Once you’ve formed your entity, you should begin developing your cannabis business plan. A strong business plan will help you analyze the market opportunity, costs, and more. Additionally, you can use your business plan to recruit talent and raise capital.
Step 7: Raise Capital
Raising capital takes time and is often the largest hurdle for cannabis entrepreneurs. Coupled with the costs of pursuing the license alone, you’ll also incur costs from attorneys, real estate, architects, consultants, and don’t forget any necessary renovations for the facility, plus the application and licensing fees.
Given the short time period for this emergency application period, contact our cannabis license consultants. We can estimate the average investment required to start your cannabis business in Kentucky. Let us help you strategize how to meet your capital needs.
The Kentucky medical cannabis program also requires proof of sufficient capital, as follows:
Step 8: Choose a location
With some capital in hand, it’s time for you to begin securing a location. You should ensure that your location complies with all state and local regulations, such as distance requirements and correct zoning. Also, analyze the business, social, and economic dynamics of the community where you’d like to be located.
Another thing to consider is the Kentucky dispensary licensing region. Our cannabis business consultants in Kentucky added the map below to show you how many dispensary licenses will be issued per region.
Remember, you are allowed to submit multiple applications for a license category, but you cannot submit license applications for more than one location in a region (licensing regions only apply to dispensary applicants).
Step 9: Garner local support
Once you’ve secured a property, the next step is to build local support and approval. The state wants to know that your chosen municipality allows and approves of your business operations in their jurisdiction. Letters of support from community organizations and local officials can benefit your application in the eyes of the CHFS.
Step 10: Write and submit an application
The last step is to sit down and write your Kentucky cannabis license application. You’ll need to draft all of the documents and ensure they comply with the laws and rules:
- Site plan*
- Existing Lease or Deed or Contingent Agreement*
- Confirmation of sufficient capital available*
- Financial plan*
- Business Entity Formation documents*
- If applicable, summary of experience of operating a business in Kentucky
- A timeline showing the steps and estimated amount of time the applicant will take to begin cannabis business activities in the state*
- Summary of the intended plan of operation*
- If applicable, management service agreement
*Required documentation
This is where applicant’s typically hit a snag. But worry not, because that is why Quantum 9 exists.
From business planning to talent acquisition, to application writing including SOPs, we can help you prepare an application that will increase your chances of winning a license.
In fact, we’ve created a ready to submit Kentucky cannabis operational plan that can purchase to save yourself time and headaches. We poured over 50 hours into this document so that you don’t have to.
Summary from our Kentucky Cannabis Business Consultants
Navigating the complexities of the Kentucky medical cannabis licensing process can be challenging, but with the right guidance and preparation, you can position your business for success.
Our Kentucky cannabis consultants are dedicated to helping you every step of the way, from understanding the regulatory framework to submitting a comprehensive and compliant application.
Ready to take the next step in launching your medical cannabis business in Kentucky? Contact our experienced consultants today to schedule a consultation. Together, we can ensure your application stands out and meets all regulatory requirements.
Additional Resources
- Licensing Guides by Type:
- Kentucky Cannabis Marketing Agency
- Kentucky Cannabis Facility Designs
