CannManage Kentucky Medical Cannabis Application Guide
Myers, B., Buckley, T. J., & Abdulwaliy Oyekunle. (2024). CannManage Kentucky Application Guide.
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Prospective medical cannabis business owners in Kentucky can apply for business licenses starting Monday, July 1st, 2024. The process is detailed and requires careful preparation to ensure success. This guide describes KY’s history and regulatory framework and simplifies application steps based on the comprehensive Kentucky Medical Cannabis Program’s Business Licensing Application Guide and additional sources developed and listed on the official state website.
By outsourcing your application writing, preparation, and finalization needs to CannManage, you can focus on other critical aspects while we ensure your application is thorough, accurate, and compelling. Do you need help with your Kentucky medical cannabis business license? Here are some details on how to apply for a business and navigate the complex licensing system.
Kentucky Cannabis History
1775: Hemp was first cultivated in Kentucky near present-day Danville for industrial applications. Early Kentuckians noted that the local soil was of prime quality for cultivation. Hemp crops, fueled by slave labor, created a continuous supply of textiles to produce fibers. Despite Kentucky’s history, there is no social equity licensing program for modern prospective cannabis business owners. KY is one of only a few US States that do not attempt to foster an equitable market or directly acknowledge the injustice of enslavement and dehumanization in an agricultural history that clearly outlines the region greatly benefitted from the cannabis plant.
Early 1800s: Settlements were established in the Bluegrass Region of Kentucky as the hemp industry expanded. Kentucky would become the largest hemp producer in the nation, reporting that it was supplying the entirety of the South with bailing materials made of hemp fiber by 1809.
Mid 1800s: By 1850, the State produced 40,000 tons of hemp. Production would steadily decrease starting in the 1850s. Along with abolishing slavery, domestic hemp would face staunch competition from imported Manila hemp, a fiber imported from the Philippines. These imports were driven by demands for imported and synthetic fibers from the states in New England and the South. Additionally, the industry in Kentucky did not adopt newly developed machinery, relying on more traditional methods, lowering efficiency with labor-taxing jobs.
Early 1900s: The success of Kentucky‘s hemp industry would fluctuate heading into the 20th Century. However, it would experience a resurgence due to the First World War after foreign-produced fibers were prohibited from import. The domestic demand was for industrial applications for the war industry. Despite the new demands, domestic hemp cultivation decreased significantly upon the war’s end, with foreign fiber sources becoming available. Kentucky would only cultivate 23 acres of hemp in a year.
Mid 1900s: Congress passed the “Marijuana Tax Act“ in 1937, which considered the cultivation of hemp equivalent to that of cannabis. The Marijuana Tax Act made cultivation largely unprofitable, with farmers being required to purchase a tax stamp and pay excise taxes. In 1942, Japan seized control of the Philippines, and the United States Department of Agriculture began the program “Hemp for Victory, “a campaign to encourage domestic production of hemp for World War II. Kentucky would fulfill the nation’s demands, but production would end with the war’s conclusion. By 1944, Kentucky only had 23 licensed cultivators, and cultivation would stop nationally in 1945.
1970-Present: After the passage of the Controlled Substances Act, the cultivation of hemp was federally banned, with hemp and cannabis considered Schedule 1 Controlled Substance. In 2013, Kentucky passed Senate Bill 50, establishing the procedures for legal hemp cultivation if the federal government approves hemp production. After the passage of the Farm Bill in 2014, universities and state agricultural departments were granted permission to cultivate hemp for research. By 2019, hemp was officially removed from the Controlled Substances Act, legalizing hemp nationally.
Legislative History
2014: Passage of the Clara Madeline Gilliam Act, SB 124, which authorized universities to administer and research the use of CBD for epilepsy. However, there were no provisions to source or sell CBD. Due to the lack of this provision, CBD could not legally be administered.
2015: After the Clara Madeline Gilliam Act in 2014 could not authorize the administration of CBD, Kentucky attempted to legalize medical cannabis under House Bill 3 and Senate Bill 40. However, due to outside interest from anti-cannabis groups, these bills were never brought to a vote in the legislature.
2020: Medical cannabis would receive a revival after years of dormancy through House Bill 136 (HB 136), which was approved by the Kentucky House of Representatives 65-30. While a Senate vote was approved and scheduled, the vote was ultimately stalled due to the COVID-19 pandemic and would not be reintroduced until 2022.
2022: HB 136 was introduced to the legislature with new amendments and definitions for a legal medical cannabis market and additional rules for a regulatory framework. While HB 136 would pass the House vote, it was not brought forth for a Senate vote. Governor Andy Beshear would take executive action to permit the use of medical cannabis for qualifying conditions. He would later issue an order allowing the possession of up to eight ounces of cannabis for medical use, provided it was purchased in a state where cannabis was legal.
2023: SB 47 was passed in 2023, establishing the legal framework for the medical cannabis program. SB 47 outlines the qualifying medical conditions for the use of cannabis and permits the Kentucky Center for Cannabis Research to add additional conditions to the list. Currently, an additional 15 conditions are under discussion. SB 47 also defined possession limits for medical cannabis and established the medical program to commence sales starting on January 1st, 2025.
2024: Regulatory progress continues with the implementation of 915 KAR 1:010E, detailing the regulations for licensing and operation of medical cannabis businesses. These regulations permit businesses to apply for licensure under the medical cannabis program as cultivators, processors, dispensaries, and safety compliance facilities. The application portal will open on July 1st, 2024, and close on August 31st. Notice of license awards is anticipated to be announced in October.
KY Gov. Andy Beshear, April 2024
Regulatory History
KRS 218A.010: Defines terms and scope related to controlled substances, including cannabis.
KRS 218A.1421: Specific provisions for cannabis cultivation and distribution.
Main Regulations
915 KAR 1:010E: General provisions for the operation and licensure of medical cannabis businesses in Kentucky.
On January 4, 2024, ten ordinary regulations were filed to govern cannabis businesses. These regulations will follow the ordinary administrative regulation process.
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
On March 14, 2024, five ordinary regulations were filed to establish how medical cannabis patients and caregivers will participate in the Kentucky Medical Cannabis Program. These regulations will follow the ordinary administrative regulation process.
915 KAR 2:001: Definitions
915 KAR 2:010: Procedures for registry identification cards
915 KAR 2:020: Supply limits and equivalency formula
915 KAR 2:030: Written certifications
915 KAR 2:040: Procedures to publish a list of varieties of medicinal cannabis
On April 18, 2024, two emergency regulations were filed along with identical ordinary regulations. These regulations provide how proposed cannabis businesses can apply to become licensed in the Commonwealth and the requirements following licensure. The emergency regulations take effect immediately.
Emergency Regulations
915 KAR 1:010E: Initial and renewal applications for cannabis business licenses
915 KAR 1:020E: Cannabis business licenses
Ordinary Regulations
915 KAR 1:010: Initial and renewal applications for cannabis business licenses
915 KAR 1:020: Cannabis business licenses
*Note that the ordinary regulations are identical to the emergency regulations listed above. CannManage will reference the regulations under “Ordinary Regulations” unless the preferred nomenclature is from the “Emergency Regulations.”
Adult Use Cannabis Regulations
Currently, Kentucky only permits the medical use of cannabis. Regulations for adult use have not been established.
A few quick facts that are helpful to know during the application process:
Medical or Adult-Use Market: Kentucky operates exclusively within the medical cannabis sphere, as stated in KRS 218A.010.
Seed-to-Sale Tracking System Used: Kentucky will utilize Metrc for its seed-to-sale tracking system per 915 KAR 1:010E.
Approved Hours of Operation: A dispensary can operate between 8 a.m. and 8 p.m. as per 915 KAR 1:070 Section 4(2). Delivery services can operate from 7 a.m. to 9 p.m. as per 915 KAR 1:080 Section 2(2)(C).
Approved Products for Sale: Dispensaries in Kentucky can sell various products, including edibles, oils, topicals, tinctures, and more, as per 915 KAR 1:040 Section 8(1)(a-j). Raw plant material cannot be consumed by smoking.
Age and Patient Verification System: Dispensaries must use a state-approved age and patient verification system. Patients must have a registry identification card issued by the state, as outlined in 915 KAR 1:070 Section 2(2).
Dispensary Sales Limits – Universal: Patients can purchase up to a ten-day supply of medical cannabis. Sales limits are detailed in 915 KAR 2:020.
Deliveries: Dispensaries can offer delivery services to qualified patients. Delivery services are not subject to the 1,000-foot restriction from schools but must adhere to local laws, as per 915 KAR 1:080 Section 2.
Online Ordering: Online orders are permitted with verification at delivery, according to 915 KAR 1:080 Section 2(f).
State Nomenclature: The official terms used by the state are “Medical Cannabis” and “Medicinal Cannabis Product” as defined in KRS 218A.010(15).
Qualifying Conditions: Any type or form of cancer, regardless of stage; Chronic or debilitating pain, epilepsy, or any other seizure disorder; Multiple sclerosis, muscle spasms, or spasticity; Chronic nausea or cyclical vomiting syndrome that has been proven resistant to other conventional medical treatments; Post-traumatic stress disorder; and, Any other medical condition or disease that the Kentucky Center for Cannabis determines (Source: State FAQ).
Home Cultivation: No
Cannabis Licensing Application Process: Step by Step Summary
The Kentucky Medical Cannabis Program, created by SB47 and codified (pronounced like the fish) in KRS Chapter 218B, establishes the regulatory framework for medical cannabis within the state. Managed by the Cabinet for Health and Family Services, the program ensures that the licensing process is transparent, accessible, and fair. This summary will provide a clear, concise overview of the steps and requirements in the application process, helping applicants navigate the detailed process smoothly. This blog is meant to be an informational guide to the licensing process.
The definitive source for this application (to date) is their Business Licensing Application Guide (Version 1.1).
Business Licensing Structure
Kentucky’s medical cannabis program offers five types of business licenses, each with specific responsibilities and requirements.
- Cultivator: Involves planting, raising, harvesting, trimming, and curing cannabis plants. Cultivators are categorized into tiers based on the total square footage of their cultivation area.
- Processor: Responsible for processing raw plant material into usable product formats, ensuring that the products meet safety and quality standards.
- Safety Compliance Facility: This facility conducts testing to ensure the safety and purity of cannabis products. They play a crucial role in maintaining product quality and consumer safety.
- Dispensary: Manages the sale of cannabis products to registered cardholders, ensuring compliance with all regulatory requirements.
- Producer: During this initial licensing round, Kentucky will not accept license applications for cannabis producers.
Each license type has specific activities it can perform, and applicants must ensure they apply for the correct type. The program also imposes certain restrictions on applications, such as limiting the number of applications per business type and ensuring each application has a distinct physical address.
For cultivators, there are tier-based restrictions on the size of the cultivation area, with the largest Tier IV licenses not available during the initial application period (KY Medical Cannabis Program, 2024, p. 5-7).
VA Cannabis Dispensary Regions Per Kentucky Office of Medical Cannabis
Licensing Fees
Applying for a medical cannabis business license in Kentucky involves several fees, both nonrefundable application fees and licensing fees, which vary based on the type and tier of the license. Additionally, applicants must demonstrate they have sufficient capital, either on deposit or through credit, to support their business operations.
Applicants must also meet specific capital requirements to ensure financial stability to operate their business. These requirements range from $50,000 for Tier I cultivators to $1,000,000 for Tier IV cultivators, though Tier IV licenses are unavailable initially (KY Medical Cannabis Program, 2024, p.7-8).
Table: State Fees and Capital Requirements
| License Category | Application Fee | Application Capital Requirement | Licensing Fee Upon Approval |
| Tier I Cultivator | $3,000 | $50,000 | $12,000 |
| Tier II Cultivator | $10,000 | $200,000 | $25,000 |
| Tier III Cultivator | $20,000 | $500,000 | $50,000 |
| Tier IV Cultivator | $30,000 | $1,000,000 | $100,000 |
| Processor | $5,000 | $150,000 | $25,000 |
| Dispensary | $5,000 | $150,000 | $30,000 |
| Safety Compliance Facility | $3,000 | $150,000 | $12,000 |
Submission and Review Process
The application process for a Kentucky medical cannabis license involves several critical steps, from initial submission to final approval. Here’s a detailed look at each step.
- Submission: Applications must be submitted through the online portal between July 1st and August 31st, 2024. The portal is accessible via the Kentucky Medical Cannabis Program’s website. Applicants must ensure that all required information and documents are included in their submission.
- Review: The program will review each application to determine its completeness upon submission. This includes verifying that all necessary information and documents have been provided. The program will notify applicants of deficiencies, errors, or missing information, allowing them to address these issues.
- Curing Deficiencies: If deficiencies are noted, applicants have ten days to correct these and provide any missing information. This step is crucial as it allows applicants to refine their submission and ensure it meets all requirements. Additional or corrected materials should be submitted through the same saved application in the portal.
- Acceptance or Denial: The program will notify applicants within 45 days of receiving a complete application whether their application has been approved or denied. If an application is denied, the notice will include the reasons for denial and information on requesting an administrative hearing within 30 days (KY Medical Cannabis Program, 2024, p.8-9).
In cases where the number of applications exceeds the available licenses, a lottery system will be used to allocate licenses. This ensures a fair and transparent process, giving all qualified applicants an equal chance.
Key Application Dates
Navigating the Online Portal
The online portal is a critical tool for managing your application. Here’s how to effectively use it.
- Creating an Account
- Start by visiting the “How to Apply” tab on the Kentucky Medical Cannabis Program website.
- Register for a user account by filling out the required fields and verifying your email. This account will be used to access the Business Licensing Application Portal.
- Navigating the Portal
- Sign in to access the dashboard once your account is created and verified. The dashboard allows you to manage your applications, view invoices, and update account settings.
- Click the “Create New Application” button to start a new application. Follow the prompts to provide all necessary information.
- Submitting the Application
- Complete each application section, providing detailed information and uploading the required documents. Use the Business Licensing Application Guide and Checklist to ensure all necessary information is included.
- After thoroughly reviewing your application, click “Pay and Submit” to complete the submission process. You will need to provide payment information for the application fee. Once submitted, you will receive a confirmation email, and the program will acknowledge receipt of your application within 15 days (KY Medical Cannabis Program, 2024, p.10-21).
Kentucky Medical Cannabis Business Application: Section By Section Breakdown
The application is divided into several sections, each requiring specific information and documents. Here’s a detailed breakdown:
1. Business Information
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- General Information: Provide the legal business name, type, trade names (if any), federal tax ID number, Kentucky Secretary of State organization number, website, email, and phone number. Indicate if there is a Management Services Agreement in place and upload the agreement if applicable (KY Medical Cannabis Program, 2024, p. 23-24).
- License Information: Select the category of the cannabis business license being requested (pg 24).
- Location Information: Provide the physical and mailing addresses, GPS coordinates, and details about the lease, deed, or contingent agreement for the business location. Ensure the location complies with zoning requirements and is not within 1,000 feet of a school or daycare (KY Medical Cannabis Program, 2024, p.25-27).
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2. Table: Required Documents and Narratives
This application has 15 sections. Here is a breakdown of what is needed and what CannManage can do to help. (Source: Cabinet for Health and Family Services, Kentucky Medical Cannabis Program, 2024)
| Section | Required Documents | CannManage Services |
| 1. Lease, Deed, or Agreement | Existing lease, deed, or contingent agreement showing authority to use location (p.28-29) | Research/Cover letter preparation |
| 2. Site Plan | Technical drawing or digital rendering of the site (pg.30-32) | Research/Cover letter preparation |
| 3. Sufficient Capital | Bank statements or letter of credit showing sufficient capital (pg.33-34) | Research/Cover letter preparation |
| 4. Financial Plan | Budget, cash flow planning, and debt management (pg.35-37) | Custom-written narrative and financials |
| 5. Business Entity Documents | Articles of incorporation, organization, or corporate bylaws (pg.38-41) | Research/Cover letter preparation |
| 6. Experience of Operating a Business in Kentucky (if applicable) | Narrative summary of prior business experience (pg.42-44) | Write 1,000-word narrative include interviews. |
| 7. Timeline to Become Operational | Timeline outlining steps and estimated timeframes to commence (pg.44-45) | Writing this entire narrative, including visual aids, such as a Gantt chart, graphs, and tables |
| 8. Operational Plan | Plans for security, employee qualifications, supervision, training, transportation, storage and labeling, inventory management, recordkeeping, preventing unlawful diversion, and workforce development (pg.46-47) | Writing this entire narrative. This section alone may be over 100 pages |
| 9. Management Service Agreement (if applicable) | Copy of MSA with third-party management contractors (pg.48) | Research/Cover letter preparation |
| 10. Resumes or CVs | Principal officers, board members, staff, and interested parties (pg.56) | Custom CV preparation |
| 11. Ownership Organizational Structure Document | Document showing the ownership organizational structure of all affiliated companies (pg.57) | Creating an Organizational Chart and accompanying cover letter/narrative to explain the structure |
| 12. Duties of Officers, Board Members, and Employees | Detailed description of those with a financial interest in the business (pg.58) | Writing this entire narrative, including detailed descriptions of the duties, responsibilities, and roles of the team |
| 13. Felony Offenses (if applicable) | Disclosure of Criminal History Form for anyone convicted of a felony offense (pg.64) | Creating a cover letter and developing this information into a list or narrative document |
| 14. Instances of Adverse Actions Taken Against Businesses (if applicable) | Documentation of any adverse actions taken against businesses managed or served on the board by the prospective board member (pg.65) | Creating a cover letter and narrative based on any previous adverse actions |
| 15. Notarized Signature Page | Notarized signature page (pg.66) | Cover letter preparation |
3. Applicant Information
Primary Contact: Provide contact details for the main person responsible for the application (KY Medical Cannabis Program, 2024, p.49).
Individuals and Entities of Interest: List all individuals and entities with at least 10% equity or similar interest, including their roles and ownership percentages. Provide details about principal officers, board members, and financial sources without ownership interest (pg.50-51).
Parent Company Information: If applicable, provide information about any parent company with ownership or control of the proposed business, including the ownership structure (pg.52-53).
4. Legal and Payment Information
Attestations: Complete the required legal attestations (pg.60).
Payment: Provide payment details for the application fee (pg.67).
5. Review and Final Submission
Before submitting, use the review tab to ensure all fields are complete and all documents are uploaded. Once confirmed, submit the application and payment. A confirmation email will be sent upon successful submission, and the program will notify you of receipt within 15 days (KY Medical Cannabis Program, 2024, p.68-71). If you only need help compiling and submitting your application, contact CannManage to learn more about their experienced cannabis application finalization services at the most competitive rates in the industry.
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What is CannManage?
CannManage is a bespoke technical writing firm specializing in cannabis business licensing applications. Our team brings an impressive blend of expertise, with 26 years of combined writing and research experience, and has crafted applications for licensure across 21 US states and four countries. We offer a full range of services designed to help you navigate the complex application process smoothly and efficiently. Contact us so we can match or beat your current application writing rates.
Why Hire CannManage Application Writers?
Choosing CannManage technical writers ensures you have the best application writers in the industry working on your projects. We offer competitive rates, starting at $49 per hour, and provide additional savings for multiple clients. Our services include:
Project Management: We handle all aspects of the application process, from initial planning to final submission.
Regulatory Research: We thoroughly research state regulations and application requirements to ensure compliance.
Narrative and Cover Letter Writing: We craft compelling narratives and cover letters highlighting your strengths and qualifications.
Financial and Operational Plans: We create detailed financial plans and operational strategies to support your application.
Custom Content Creation: We develop tailored content that meets all application requirements, including resumes, organizational charts, and more.
Additional Resources
For more detailed information, applicants can visit the official Kentucky Medical Cannabis Program website and refer to the comprehensive Business Licensing Application Guide. Following the proper steps and ensuring all requirements are met, you can successfully navigate the Kentucky medical cannabis license application process. Thorough preparation and attention to detail are vital in securing your place in this emerging cannabis industry.
Key Research Links
Medical Cannabis Program Regulations
Kentucky Legislature – Cannabis Statutes
Governor Beshear’s Executive Orders
FAQs About Medical Cannabis and County Government
Official State FAQ’s For Patients
Disclaimer: CannManage LLC is operated by writers passionate about cannabis culture, policy, and technical knowledge. We supply research to ensure your hands are free to strategize with your accountant, counsel, real estate, and security team during the application process. We are not here to give legal, financial, or medical advice. The following guidance document’s factual information was taken directly from the Kentucky Medical Cannabis Program’s website and Kentucky’s regulatory framework and is thoroughly cited and hyperlinked. Send error and omissions requests to [email protected]
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