Cannabis Business Questions

Cannabis Business Questions

​​​​​​​​​​​​​​​​​​Cannabis Business Questions​​​​​​​​​​​​​​


​Application and Licensing​ Questions


  • You will be able to find the business licensing application here​.​



  • KRS 218B.080​ created the following types of cannabis business licenses:
    • Cultivators
      • Responsible for planting, raising, harvesting, trimming, and curing raw plant material.
    • Processor
      • Responsible for processing and packaging raw plant material into usable product formats.
    • Producer*
      • Responsible for both planting, raising, harvesting, trimming, and curing raw plant material and for processing and packaging raw plant material into usable product formats.
      • *The Program is not accepting applications for this license at this time.
    • Safety Compliance Facility
      • Responsible for contamination and purity testing of raw plant material and medical cannabis products.
    • Dispensary
      • Responsible for selling finished medical cannabis products to cardholders.


  • Security;
  • Transportation of medical cannabis;
  • Storage and labeling of medical cannabis;
  • Inventory Management;
  • Record Keeping;
  • Diversion Prevention;
  • Workforce Development; and
  • Employee Qualifications, supervision, and training.

​​

  • Resumes or Curricula Vitae of Principal Officers and Board Members;
  • Disclosure of Principal Officers and Board Members regarding Criminal History Form, if applicable;
  • Summary of any instances where Applicant's board member(s) previously served on a board for a business or not-for-profit entity that was convicted, fined, censured, or had a registration or license suspended or revoked in administrative or judicial proceeding, if applicable;
  • Business Entity Formation Documents;
  • Site Plan;
  • Management Service Agreement, if applicable;
  • Financial Plan;
  • Ownership Organizational Structure Document;
  • Summary of prior business experience, if applicable;
  • Summary of the intended plan of operation;
  • A timeline showing the steps and estimated amount of time the applicant will take to begin cannabis business activities in the state;
  • Documentation of sufficient capital available;
  • Description of the duties, responsibilities, and roles of each principal officer, board member, employee, and any other individual or entity with a financial interest in the proposed cannabis business who are not involved in the day-to-day operations of the business; and
  • The Notarized Application Signature Page.​

  • All individuals and entities with an ownership interest of at least 10% equity or similar interest in the proposed cannabis business, any Principal Officers and Board Members, Financial Sources without an ownership interest, and any physician or advanced practice registered nurse that has an ownership or investment interest in or compensation agreement with the proposed cannabis business.

The initial cannabis license application period is currently closed. You can learn more here​

Per 915 KAR 1:010, Section 3(1), the Office shall publish a notice of initial license availability on our website, kymedcan.ky.gov, including the time frame during which initial license applications shall be accepted. This notice shall also state the category and number of cannabis business licenses available for issuance at the close of the application period.

Please check back to our website and social media accounts for future updates. 



  • Tier I Cultivator: $3,000
  • Tier II Cultivator: $10,000
  • Tier III Cultivator: $20,000
  • Processor: $5,000
  • Dispensary: $5,000
  • Safety Compliance Facility: $3,000


  • Yes, applicants can apply for multiple licenses in one cannabis business license type (i.e., cultivator, processor, safety compliance facility, or dispensary) under the following conditions:
    • Each application within a license type must contain a separate and distinct physical address and the applicant shall not use the same capital to satisfy the capital requirements for more than one (1) application.
    • For cultivator licenses, only one (1) application may be submitted for each cultivator tier.
    • For dispensary licenses, only one application may be submitted for each medical cannabis region. Please review the map identifying medical cannabis regions here​.
  • Applicants cannot apply for more than one (1) cannabis business license type.​

  • The ownership organizational chart should show the applicant's ownership structure and reflect all ownership interests in the proposed cannabis business, including any parent companies.​​

  • All principal officers and board members must submit a resume or curriculum vitae as a part of the application. ​​​

  • Yes. Evidence of a right to occupy the location at which the cannabis business will be located is a requireme​​​nt of the license application and is required for a license to be issued. A deed, lease, or contingency agreement satisfies this requirement. ​


  • Cannabis​ businesses cannot be located within 1,000 feet of an existing elementary or secondary school or a daycare center and may be subject to additional restrictions by local governments. 


All cannabis business applications are subject to review by the Kentucky Medical Cannabis Program. Applicants will be provided the opportunity to cure deficiencies noted by the Program. The application and review process will follow the timeline below:
  • Application Submission: Once the applicant submits an application and required documentation to the Program using the online application portal, the Program will acknowledge receipt of the application within fifteen (15) calendar days of submission.
  • Application Review: The Program will review each application to determine whether it is complete.  The Program will provide applicants with written notice of any deficiencies, errors, or missing information identified during the application review. The Program will also alert applicants when it has determined an application submission is complete.
  • Curing of Deficiencies: After receiving a notice of application deficiencies, the applicant has ten (10) calendar days from the date of notification to resolve the identified issues and provide any missing information or documentation requested. Additional or corrected materials should be submitted through the same application saved in the licensing portal.
  • Acceptance or Denial: The Program will notify applicants whether their application has been approved or denied within forty-five (45) days of receiving an application and determining its complete.
  • Lottery: Accepted business applications will be entered into a licensing lottery for the selected cannabis business category if the number of eligible applications exceeds the maximum number of licenses available within that cannabis business category.​​

  • After the Program reviews a business application, and if the application is determined complete by the Program, the business applicati​​on will be entered into a licensing lottery for the selected cannabis business category if the number of eligible applications exceeds the maximum number of licenses available within that cannabis business category.​​

  • The applicant will receive written notice of application denial and may file a written request for an administrative hearing on the denied application within 30 calendar days after the mailing of the denied application notice. ​

​​​​​​​

General Cannabis Business Questions

​The initial cannabis license application period is currently closed. You can learn more here​

Per 915 KAR 1:010, Section 3(1), the Office shall publish a notice of initial license availability on our website, kymedcan.ky.gov, including the time frame during which initial license applications shall be accepted. This notice shall also state the category and number of cannabis business licenses available for issuance at the close of the application period.

Please check back to our website and social media accounts for future updates. ​


​The initial cannabis license application period is currently closed. You can learn more here​

Per 915 KAR 1:010, Section 3(1), the Office shall publish a notice of initial license availability on our website, kymedcan.ky.gov, including the time frame during which initial license applications shall be accepted. This notice shall also state the category and number of cannabis business licenses available for issuance at the close of the application period.

Please check back to our website and social media accounts for future updates. ​


  • The Program filed 2 emergency regulations with accompanying ordinary regulations on April 18, 2024 which provide how cannabis businesses can become licensed in the commonwealth. The emergency regulations take effect immediately. You can learn more about the application and licensing regulations below or review the regulations here
  • ​The Program filed 10 ordinary regulations on January 4, 2024 regarding cannabis business operations. The regulations provide rules and procedures for how cultivators, processors, producers, dispensaries, and safety compliance facilities will operate in the commonwealth. These new regulations also provide how medical cannabis products will be packaged, labeled, transported, advertised, and tested. You can find them here​.​


  • Cannabis businesses cannot be located within 1,000 feet of an existing elementary or secondary school or a daycare center and may be subject to additional restrictions by local governments. 

  • ​No. A vehicle permitted to transport medical cannabis shall have NO markings that would either identify or indicate that the vehicle is being used to transport medical cannabis.​

  • ​​Yes. Medical cannabis may be delivered to multiple cannabis businesses during (1) transport. A transport manifest is required for each delivery. Please see 915 KAR 1:080​ transportation and delivery of medicinal cannabis for more information. ​

  • ​Yes. A cannabis business licensee may contract with a third-party transportation company as long as the requirements in 915 KAR 1:080​, Section 1 are satisfied.​
  • ​Yes. A cannabis business may maintain an informational website and social media presence that provides:
    • A description of their business and services;
    • A listing of medical cannabis or medical cannabis products cultivated, processed, produced, or sold by the cannabis business;
    • Educational materials and product information; and
    • Certificates of analysis provided by safety compliance facilities for its respective harvest batches and production batches.​

  • ​Cultivators, processors, and producers shall NOT display any signage, logos, products, or other identifying characteristics on the outside of their respective facilities to alert the public that medical cannabis is grown, processed, produced, or stored at the facility.​

  • Yes. Packaging and labeling of any medical cannabis or medical cannabis products shall NOT bear:
    • Any resemblance to the trademarked, characteristic, or product-specialized packaging of any commercially available food or beverage product and not be visually reminiscent of major brands of edible non-cannabis products:
    • Any statement, artwork, or design that could reasonably lead an individual to believe that the package contains anything other than medical cannabis;
    • The logo of the cabinet or any seal, flag, crest, coat of arms, or other insignia that could reasonably mislead an individual to believe that the product has been endorsed, manufactured, or approved for use by any state, county, or municipality or any agency thereof; and
    • Any cartoon, image, graffiti, graphic, or feature that may make the package attractive to children or minors.​

  • When packaging medical cannabis and medical cannabis products for sale to cardholders, a cannabis business shall ensure each product package:
    • Is child-resistant and requires at least a two (2) step process of initial opening;
    • Has a tamper-evident seal; and
    • Minimizes exposure to oxygen.​

​​

Cultivator Questions

  • A cultivator license authorizes its holder to grow medic​al cannabis (also known as raw plant material) in an enclosed, locked facility and sell medical cannabis to a licensed medical cannabis processor, producer, or dispensary in Kentucky. Cultivators grow, harvest, and trim the cannabis plants used to make safe, accessible medical cannabis products in Kentucky. ​

​​

  • No. Outdoor grows will not be allowed in Kentucky. See 915 KAR 1:030​, Section 3(1) (“A cultivator shall only plant, grow, cultivate, and harvest medical cannabis in an enclosed, locked facility on specific site licensed by the cabinet and identified on its license issued by the cabinet. A cultivator shall not grow medicinal cannabis directly in the ground.”)

  • No. See 915 KAR 1:030​, Section 6(1) (“A cultivator site and facility shall not be open to the general public").​​


  • Yes. However, it is important to note that:
    • A cultivator who uses pesticides on medical cannabis shall be certified to apply pesticides by the Kentucky Department of Agriculture pursuant to KRS Chapter 217B​; and
    • A cultivator who is certified to apply pesticides by the Kentucky Department of Agriculture shall not use, or be eligible to use, a Category 10 license to apply pesticides to medical cannabis in violation of the product label.
    • Please review 915 KAR 1:030​, Section 8 for more information on allowable pesticide use as well as the Program's Notice re Pesticides and Other Chemical Applications for Use in the Growing and Cultivating of Medical Cannabis in Kentucky, available here​.​​

  • A pers​on who is at least eighteen (18) years of age may enter and remain on the cultivator's premises if that person (1) is present to perform contract work, including electrical, plumbing, or security maintenance, that does not involve handling medical cannabis or (2) is a government employee and is at the cannabis business in the course of his or her official duties.​
  • ​​No. See 915 KAR 1:030, Section 9(1) (“A cultivator shall use the electronic monitoring system and seed to sale tracking system prescribed by the cabinet containing the requirements in KRS Chapter 218B, specifically KRS 218B.140​, and in accordance with written instructions provided by the cabinet. A cultivator shall ensure its inventory recorded in the electronic monitoring system and seed to sale tracking system is accurate in real-time.”)

  • No. Ra​w plant material that tests over 35% THC potency shall be considered medical cannabis waste and destroyed.​

  • Cultivators shall NOT display any signage, logos, products, or other identifying characteristics on the outside of their respective facilities to alert the public that medical cannabis is grown, processed, produced, or stored at the facility.​​


  • Yes, but an applicant can only submit one (1) application for each cultiva​tor tier and must satisfy all application requirements for each application. See 915 KAR 1:010E​, Section 3. You can learn more about the cultivator licenses here. ​


  • Batch sizes are not to exceed the following:
    • ​​​20lbs for raw plant material.
    • ​​​​50lbs for raw plant material to be sold to a processor for the purpose of turning the raw plant material into concentrate.

​​

Processor Questions

  • A processor is a business that prepares, manufactures, and packages medical cannabis products.​​​

  • Yes. A processor may acquire and sell raw plant material from another processor or cultivator.​​​​

  • A processor may possess unfinished medical cannabis products not ready for retail sale that exceed 70% THC potency. However, all finished medical cannabis products intended for sale to cardholders shall not exceed 70% THC potency.​​​

​​A processor may use the following solvents, at a minimum of ninety-nine percent (99%) purity, in a professional grade, closed-loop extraction system designed to recover the solvents:
    • Propane;
    • N-butane;
    • Isobutane;
    • Heptane;
    • Ethanol; and
    • Food grade carbon dioxide-based extraction.
      • Minimum ninety-nine percent (99%) purity in a professional grade, closed-loop system in which each vessel is rated to a minimum pressure to accommodate the specific extraction protocol, including supercritical, liquid, and subcritical.

  • Raw plant material cannot test over 35% THC potency, concentrates cannot test over 70% THC potency, and concentrates intended for oral consumption cannot exceed 10mg of THC per serving.​​​

  • Processors shall NOT display any signage, logos, products, or other identifying characteristics on the outside of their respective facilities to alert the public that medical cannabis is grown, processed, produced, or stored at the facility.​​​​

  • Batch sizes are not to exceed the following:
    • 4 liters of liquid medical cannabis concentrate;
    • 9 pounds for nonliquid medical cannabis products; and
    • 1,000 grams of delta-9-tetrahydrocannabinol for final medical cannabis products.​

​​​

Producer Questions

  • A producer* is a cannabis business that is both a cultivator and a processor.
  • *The Program is not accepting applications for this license at this time. ​

  • Producers shall NOT display any signage, logos, products, ​​​or other identifying characteristics on the outside of their respective facilities to alert the public that medical cannabis is grown, processed, produced, or stored at the facility.​

​​

​Safety Compliance Facility​ Questions

  • A safety compliance facility is responsible for testing medical cannabis products produced in Kentucky to ensure those products are safe for consumption and use. ​​​
  • ​A safety compliance facility may also produce and sell approved educational materials related to the use of medical cannabis, produce, and sell equipment or materials including lab equipment and packaging materials, train cardholders and cannabis business employees on medical cannabis topics, and engage in other non-cannabis related business activities that are not otherwise prohibited or restricted by state law.​

​​

Dispensary​ Questions​

  • A dispensary is a retail location where medical cannabis products are sold.​​​

  • 18. However, a dispensary shall not permit an individual who is n​ot a cardholder to enter or remain on its premises except under certain circumstances. See KRS 218B.095(6) and 915 KAR 1:070​, Section 10.​​​
  • ​Yes. Dispensaries may offer delivery services for registered qualified patients and designated caregivers. Dispensaries may also dispense medical cannabis via a drive-thru window or curbside pickup service if approved by the Program and operated in accordance with any local rules.  ​​
  • ​No. A medical cannabis dispensary shall prohibit a cardholder from self-administering or a designated caregiver from assisting with administering medical cannabis on the premises of the licensed dispensary location. See 915 KAR 1:070​, Section 1(3)(g).​​

  • Yes. A dispensary shall not sell or dispense medical cannabis products intended for consumption by vaporizing to a cardholder who is younger than twenty-one (21) years of age or to a designated caregiver for a registered qualified patient who is younger than twenty-one (21) years of age.​​​

  • No. A dispensary shall only dispense or sell medical cannabis to a cardholder in a sealed and properly labeled packaged as required by 915 KAR 1:100​.​​​​


  • Yes, but an applicant can only submit one (1) application for each medical cannabis region and must satisfy all application requirements for each application. See 915 KAR 1:010​, Section 3. Please review the map identifying medical cannabis regions here.​