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Kentucky Cannabis Licensing Overview
Cannabis laws in Kentucky are changing so that medical marijuana consumption and sale will be legal beginning January 1, 2025.
The Cabinet of Health for Family Services will begin accepting cannabis business license applications on July 1, 2024 until August 31, 2024.
All applications will be submitted through an online portal which will open on July 1, 2024.
License Types
There are five different license types that will be available in Kentucky. They are the dispensary, cultivator, processor, producer, and safety compliance licenses.
Each license type will allow the business to participate in different activities that will make up the entirety of the medical cannabis supply chain in Kentucky. Anyone interested in starting a cannabis company in Kentucky will need one of these five licenses.
Applicants will be able to apply for the following licenses in the first application round beginning on July 1, 2024.
You can submit multiple applications for a license within the same cannabis business category, provided these conditions are met:
- Each Kentucky cannabis licensing application must specify a unique physical address for the proposed business operation.
- Kentucky dispensary license applicants are restricted to one application per medicinal cannabis region.
- Cultivator applicants are limited to one application per cultivation tier.
- Applicants cannot apply for more than one type of cannabis business licenses.
All Kentucky cannabis license holders will need to use an electronic monitoring system and a seed to sale tracking system that will be issued by the cabinet. They must also have all employee records and identification, visitor records, comprehensive and compliant security and surveillance, only use approved chemicals, regular equipment maintenance, adequate sanitation procedures, compliant storage, a system to manage the disposal of cannabis plant waste, and other specific requirements pertaining to each license.
Kentucky Medical Cannabis License Fee Structure
Kentucky cannabis licenses have three required fees that occur at different stages of the application and license process.
The application fee is a one time fee that must be paid at the time of application.
The licensing fee is a one time, non-refundable fee that must be paid after the applicant is granted a license. This fee must be paid within 15 days of the date the invoice is sent to the licensee.
The renewal fee must be paid once a year at the time the initial application was submitted. This fee is refundable if the license renewal is denied.
Proof of sufficient capital is not a required payment. Instead, it is the amount of money applicants must prove they have either on deposit, or through extension of credit.
All fees regarding application and licensing vary between each license type.
Kentucky Dispensary License
Application Fee: $5,000
Licensing Fee: $30,000
Annual Renewal Fee: $15,000
Proof of Sufficient Capital: $150,000
Anyone that wants to own and operate a medical cannabis dispensary in Kentucky needs a dispensary license. Kentucky dispensary license holders can purchase cannabis and cannabis products form other licensed facilities within Kentucky, and sell these products to medical card holders.
Kentucky dispensaries can sell a variety of cannabis products, as long as they are not:
- Flower with over 35% THC content.
- Above 10 milligrams per serving if the product is intended to be consumed orally.
- Any cannabis product that is more than 70% THC content.
- Containing vitamin E acetate.
- Accessories used for smoking like rolling papers and lighters.
Dispensaries can only operate between 8:00 AM and 8:00 PM, and individuals must be 18-years-of age or older to enter the dispensary.
Dispensary Storefront Requirements
A dispensary is permitted to sell medicinal cannabis only from a building or secure structure on the licensed site specified in its state-issued license. This structure must comply with all relevant state and local building codes and must include the following features:
- A full roof enclosure with connecting walls made from solid materials, extending from the ground to the roof.
- Security measures to prevent unauthorized entry.
- A foundation, slab, or equivalent base securely attached to the floor.
- Commercial-grade locks on all external doors, which must remain locked.
- Restricted access to authorized personnel only, with clearly marked areas and monitored entry and exit logs.
- Adequate plumbing systems for water supply and waste disposal, preventing cross-contamination.
- Proper storage of toxic cleaning and sanitizing agents, adhering to local, state, and federal regulations.
- Pest control management.
- Sufficient indoor and outdoor lighting to support video surveillance at all times.
Dispensaries can have a delivery service, a drive-thru window and/or a curbside pickup service if approved by the cabinet.
Dispensaries cannot be at the same location as another Kentucky cannabis licensed business, or in the same office space as a medicinal cannabis practitioner or physician.
Required Operational Plans for Dispensaries
Before a dispensary can begin selling products, the dispensary must have full and complete standard operating procedures including the following:
- Employment policies and procedures
- Security plans and procedures
- Recordkeeping
- Processes from receiving cannabis to dispensing cannabis
- Employee qualifications, supervision, and training
- Workplace safety
- Waste disposal
- Maintenance, cleaning and sanitation of the facility
- Investigation of complaints
- Preventing unlawful diversion of cannabis
- Recall plans
- Contamination
- Maintaining confidentiality
If you’re interested in opening a medical cannabis dispensary in Kentucky, contact CannDelta.
Kentucky Cultivator License
Tier four (4) cultivator licenses will not be available in the first application period. Cultivator applicants are limited to one application per cultivation tier. The cultivator tiers and associated fees are:
If more medicinal cannabis cultivation is required in Kentucky, the Cabinet can authorize an increase in canopy size by up to three times. Any canopy size increase doesn’t result in any increased or additional application, license, or renewal fees.
General Requirements
All cultivation activities must take place at the location registered with the cabinet. To engage in cultivator activities a business needs a cultivator license. This allows a business to plant, grow, cultivate, raise, harvest, trim, store, test, package, label, transfer, transport, sell cannabis plant byproduct and material to other licensed Kentucky medical cannabis businesses.
Cultivator Facility Requirements
There are a number of requirements that cultivation facilities must uphold. A full breakdown of these requirements can be found throughout the cabinets cultivator regulations, here:
The physical requirements for a cultivator facility are as follows:
All cultivation activities must happen within an enclosed locked facility that is no larger than the tier of your license. ‘Enclosed’ means that the facility must include:
- A complete roof.
- Connecting walls.
- Commercial grade door locks on all external doors.
- Measures to restrict access to unauthorized personnel, including signage.
- Proper plumbing.
- Proper ventilation.
- Pest control.
- Interior and exterior lighting so that video surveillance can be conducted at all times.
- On-site parking.
- All cultivation activities must take place at the location registered with the cabinet.
Required Operational Plans for Cultivators
Cultivators must have operating procedures that cover the following items before the business can begin operating. These procedures include:
- Employee policies and procedures
- Security plans and procedures
- Process procedures for receiving, growing, cultivating, harvesting, handling, packaging, labeling, storing, transporting, disposal and more.
- Workplace safety
- Contamination
- Maintenance and Sanitation
- Application of pesticides, fertilizers and herbicides
- Handling and storage of chemicals
- Procedure of logging the use of pesticides and chemicals applied
- Quality control
- Recordkeeping and inventory control
- Plans for how to investigate complaints
- Recall plan
Kentucky Processor License
Application Fee: $5,000
Licensing Fee: $25,000
Annual Renewal Fee: $15,000
Proof of Sufficient Capital: $150,000
The processor license allows a business to acquire raw plant material from cultivators, producers, or other processors in Kentucky to then be processed. Processors can extract, manufacture, manipulate, and blend cannabis, as well as, package, transfer, transport, supply, and sell cannabis and cannabis supplies to other licensed cannabis businesses in Kentucky.
Processor Manufacturing Limitations
Processors must follow guidelines regarding what they can and cannot manufacture. These limitations are tied to the finished cannabis and cannabis products being sold to retail stores for consumption.
Processors can manufacture the following medicinal cannabis products:
- Edibles.
- Topicals.
- Medically appropriate products manufactured for vaping or nebulization.
- Tinctures.
- Dermal patch.
- Suppositories.
- Beverages.
- Raw plant material.
Processors cannot manufacture the following:
- Raw plant material with a delta-9 THC of 35% or higher.
- Cannabis products like edibles or tinctures containing more than 10 milligrams of delta-9 THC per serving.
- Any cannabis product containing 70% delta-9 THC or more.
- Any product containing vitamin E acetate.
Additional Processor Requirements
A processor must strictly use specified methods, equipment, and solvents to manufacture medicinal cannabis products, including highly pure solvents like propane and ethanol, and mechanical extraction techniques. They can also use food-grade ingredients in product manufacturing. The process requires clean, inspected raw materials and must be conducted in sanitary conditions with robust pest control.
Processors need a trained supervisor for extraction operations, must keep detailed records for five years, and ensure the storage and processing environment is secure and monitored. All cannabis products must meet strict testing standards before packaging. Processors must also ensure that all cannabis plant material sold to Kentucky dispensaries is labeled as “NOT INTENDED FOR CONSUMPTION BY SMOKING.”
Processor Facility Requirements
Processor facilities must be in a physical location that the cabinet has certified as a part of the license. The facility must have:
- A roof supported by connecting permanent walls.
- Security measures to prevent unauthorized entry.
- A foundation or slab that the floor is attached to.
- Commercial grade door locks on all external doors
- Measures to restrict access to unauthorized personnel, including signage
- Proper plumbing
- Proper ventilation
- Pest control
- Interior and exterior lighting so that video surveillance can be conducted at all times
- A secure area for loading and unloading cannabis.
Required Operational Plans for Processors
- Employee policies and procedures
- Security plans and procedures
- Process procedures for receiving, growing, cultivating, harvesting, handling, packaging, labeling, storing, transporting, disposal and more.
- Workplace safety
- Contamination
- Maintenance and Sanitation
- Extraction Methods
- Handling and storage of chemicals
- Quality control
- Recordkeeping and inventory control
- Plans for how to investigate complaints
- Recall plan
Kentucky Safety Compliance Facility
Application Fee: $3,000
Licensing Fee: $12,000
Annual Renewal Fee: $12,000
Proof of Sufficient Capital: $150,000
Safety compliance facility license holders can start a business that tests samples of medical cannabis products received from other licensed Kenucky medical cannabis businesses. Safety compliance facilities ensure that cannabis products are safe and ready to be sold to medical patients at dispensaries.
Every batch and product produced by licensed medical cannabis businesses must be tested by safety compliance facilities at each stage of the process. Testing is required to monitor and identify the following:
Psychoactive Compounds:
- Cannabinoid types and concentrations
- Terpene types types and concentrations
Production Residuals
- Residual pesticides and solvents
- Processing chemicals and heavy metals
- Vitamin E acetate
Impurities and Contaminants
- Microbial impuratie
- Mycotoxins
- Water activity
- Yeast and mold
Safety Compliance Facility General Activities
- Acquiring or possessing medical cannabis from licensed Kentucky cannabis businesses and cardholders for testing purposes.
- Conducting tests on medical cannabis to identify psychoactive compounds, residual chemicals from production, impurities, and contaminants.
- Creating and distributing educational materials related to medical cannabis, as well as selling laboratory equipment and packaging materials.
- Providing training to cardholders and agents of cannabis businesses.
Safety compliance facilities need to employ at least one director who is responsible for the oversight and direction of the facility. This director needs to have a doctorate or masters in science and at least two years of experience in a lab testing pharmaceutical or medicinal products. Alternatively, the director can have a bachelor’s degree in biological science with at least four years of experience in a lab testing pharmaceutical or medicinal products.
Safety Compliance Facility Lab Requirements
- A roof supported by connecting permanent walls.
- Security measures to prevent unauthorized entry.
- A foundation or slab that the floor is attached to.
- Commercial grade door locks on all external doors
- Measures to restrict access to unauthorized personnel, including signage
- Proper plumbing
- Proper ventilation
- Pest control
- Interior and exterior lighting so that video surveillance can be conducted at all times
- On-site parking for employees
- A secure area for loading and unloading cannabis.
Required Operational Plans for Safety Compliance Facilities
- Security plans and procedures
- Employee policies and procedures
- Process procedures for receiving, growing, cultivating, harvesting, handling, packaging, labeling, storing, transporting, disposal and more.
- Workplace safety
- Contamination
- Maintenance and Sanitation
- Extraction Methods
- Process for receiving, handling, packaging, labeling, storing, transporting and disposing of cannabis samples
- Handling of chemicals
- Quality control
- Recordkeeping and inventory control
- Plans for how to investigate complaints
- Recall plan
Kentucky Producer License
Application Fee: $5,000
Licensing Fee: $25,000
Annual Renewal Fee: $15,000
Proof of Sufficient Capital: $150,000 + the amount associated with the tier of cultivation facility you’ll be operating.
The producer license allows the licensee to operate both a cultivation and processor business under the same license. These operations do not need to take place at the same location, and all of the same requirements that apply to cultivators and processors also apply to producers.
Producers that do plan on operating both cultivation activities and processor activities at the same location must provide operational plans prior to opening that cover the following:
- A written plan to maintain distinct separation between cultivation and processing operations.
- A site map or blueprint identifying specific zones for cultivation and processing within the premises.
This license type will not be available in Kentucky’s first medical cannabis application round.
Location Requirements & Regions
Cannabis business applicants must secure a compliant location to apply for a cannabis business license. The initial license application requires a proposed location which includes:
- The address of the location.
- GPS coordinates of the location.
- Documentation of a sale or lease agreement displaying that the applicant has authority over the property.
- A site plan.
Applicants for cannabis business licenses must ensure that their proposed business location is at least one thousand (1,000) feet away from any existing elementary or secondary school, or daycare center.
Applicants should refer to Kentucky’s location tool while searching for a location. Keep in mind that the tool is provided for informational purposes only and does not guarantee that the address complies with the required distance regulations.
There are currently 11 regions. All regions and local government locations can be found here.
Application Requirements for All Kentucky Cannabis Licenses
Before applying for a medical Kentucky cannabis license, it is a good idea to familiarize yourself with the specifics about the license you’re applying for to understand all of the specific application and operational requirements required for each license. Anyone considering applying should keep in mind that they will require a compliant location to apply. As a result license applications are tied to a specific location. This means that applicants intending to open their business at multiple locations must apply again for every separate location they plan to operate at. Applicants must be 21 years-of-age or older and they cannot have any disqualifying criminal convictions to start a cannabis company in Kentucky. All applications must be done using Kentucky’s online medical cannabis application portal.
The initial license application must include the following:
- Legal name, business type, DBA name, mailing address, federal tax identification number, any affiliated website(s), email address, phone number of the proposed cannabis business, confirmation of business registration with the Kentucky Secretary of State.
- The type of cannabis license being applied for.
- Business documents including articles of incorporation, articles of organization, or bylaws.
- Proof of compliant location.
- Information about each principal board member.
- All ownership interest of at least 10% equity and/or any registered nurse that has an ownership or investment agreement with the proposed cannabis business.
- Disclosure of any parent company or individual with ownership interest.
- Information about any individual assisting the proposed cannabis business financially.
- Documentation that shows the applicant is capable of establishing and operating a cannabis business. This includes the following:
- Experience in establishing and operating a for-profit or nonprofit business or organization.
- Any past instance where the applicant received a similar license, including a provisional license.
- History of receipt of suspensions, revocations, fines, or disciplinary actions.
- All details about the duties, responsibilities and roles of each principal officer, board member, employees, and anyone with financial interest in the business.
- A timeline showing the steps that will be taken to open and the time required to begin operating.
- A financial plan.
- Documentation of sufficient capital meeting the license requirement.
- Proposed business operations plans including at least all of the following items:
- Security
- Employee qualifications
- Transportation of medical cannabis
- Storage and labeling of medical cannabis
- Recordkeeping
- Measures to prevent unlawful activities
- Job creation
- Any management services the business will be using
- Statement ensuring that the proposed location is compliant with zoning restrictions.
Understanding the Medical Cannabis Lottery Process
Kentucky medical cannabis licenses could be awarded using a lottery system. The lottery system is only used if the number of valid applications for each license is more than the number of licenses being awarded. This means that safety compliance facility licenses will not be awarded based on lottery results, since there is no limit to how many safety compliance licenses will be awarded in the first round.
This is a common method used to award cannabis licenses since it ensures fairness. The lottery is conducted in such a way that all applicants are completely anonymous, and there is no way to gain an advantage over other applicants who were selected for the lottery drawing. The cabinet is responsible for announcing the lottery results.
Why Choose CannDelta?
Need a cannabis consultant? By partnering with CannDelta, you gain access to a dedicated team of cannabis consultants committed to your success. Our experience across North America provides us with unique insights into the evolving cannabis industry. Our team are experts in the local regulatory landscape, equipped with all the necessary tools to help launch your successful cannabis business. Here’s what we offer:
Kentucky Cannabis License Applications:
Enter the cannabis market confidently. We provide comprehensive support in preparing, submitting, and monitoring your license application to ensure compliance and competitiveness.
Build a solid foundation for your cannabis business. We develop business plans that meet regulatory requirements and promote sustainable growth.
Operational Plans and Procedures:
Our cannabis consultant team creates detailed operational plans that comply with Kentucky’s medical marijuana regulations and protect your assets.
CannDelta provides zoning and location support. We will verify that your location is compliant and suitable for a cannabis business that will pass all site audits.
Be proactive with our detailed site audits. We identify issues and offer solutions to maintain compliance and operational efficiency. We’ll provide that enhance your operations, increase efficiency and compliance.
Make your brand shine! We help develop your brand and craft marketing strategies to establish your presence in Delaware’s emerging cannabis market.
Employee Staffing and Training Plan:
Through strategic hiring and tailored training programs, we prepare your team to thrive in the cannabis industry.
Fill out the form below to connect with our cannabis consultants today!
Frequently Asked Questions
How do I Open a Dispensary in Kentucky?
You can open a dispensary in Kentucky by applying for a medical cannabis dispensary license during the first application window, opening July 1, 2024. To apply, you will need to meet all of the dispensary license requirements in Kentucky, have a compliant location, and submit a complete application. Cannabis laws in Kentucky have changed so that medical cannabis will be legal starting January 1, 2025.
Is Cannabis Legal in Kentucky?
Medical cannabis will be legal for purchase and consumption by medical marijuana card holders in Kentucky beginning January 1, 2025. There are currently no plans to make cannabis recreationally legal for adult-use in Kentucky.
How do I get a License to Grow Medical Weed in Kentucky?
Beginning July 1, 2024, Kentuckians can apply for a medical cannabis cultivator license, which will allow the licensee to start a medical cannabis cultivation operation. Getting this license will require a complete license application, a compliant location, and sufficient capital. The cultivator license is broken into four different tiers that dictate the size and scale of your operation. Even though medical marijuana will be legal in Kentucky starting January 1, 2025, it will still be illegal to grow cannabis at home.
How do I Get a Cannabis Dispensary License in Kentucky?
Kentucky residents can get a dispensary license by submitting a complete application that meets all of the dispensary license requirements in Kentucky. This will require a variety of things including sufficient funds, a timeline, financial plan, operational plans, a compliant location and more.
How Do I Get a Cannabis License in Kentucky?
Getting a cannabis license in Kentucky requires you to be a resident of Kentucky who is 21 years-of-age or older and does not have any disqualifying criminal charges. The medical cannabis license application window for Kentucky opens on July 1, 2024. You will need to submit an application featuring all of the required documents, plans, and proof to meet the application criteria. Each license type has different requirements, so be sure to familiarize yourself with the regulations surrounding the license you plan to apply for. The July 1 application window will be for a limited number of license applications, and tier 4 cultivator licenses as well as producer licenses will not be awarded in this window.
