Kentucky selected 26 businesses Monday to grow and process medical marijuana, as regulators prepare to kick off the state’s cannabis program in January.
The businesses were chosen during a drawing at Kentucky Lottery headquarters in Louisville, whittling down nearly 5,000 applications to just over two dozen winners spanning cultivation and processing operations. The state established a tiered fee structure that varies by operation size.
Ten businesses secured coveted Tier I cultivation licenses. Another four companies won Tier II licenses, while two received Tier III permits. Another 10 companies won licenses in the processing category.
“All medical cannabis that is cultivated, processed, tested and dispensed will be done so right here in Kentucky,” Gov. Andy Beshear said in a statement. He said it brings the state closer to providing “safe, affordable access to the health care relief and choice they deserve at the soonest possible date.”
Selected companies now have 15 days to pay their license fees to the Office of Medical Cannabis before receiving official authorization, according to state officials.
Sam Flynn, executive director of the Office of Medical Cannabis, said about 84% of applicants qualified for the lottery, according to local station Lex 18. The high approval rate came despite steep entry fees, with cultivation applications alone costing between $3,000 and $30,000, depending on size.
Earlier this month, officials approved comprehensive rules establishing licensing fees and business requirements. Initial and annual fees range from $12,000 for small cultivators to $100,000 for the largest operations.
Patient access hinges on qualifying conditions, which include:
- Cancer of any type or stage
- Chronic, severe or intractable pain
- Epilepsy
- Multiple sclerosis
- Muscle spasms
- Chronic nausea
- Post-traumatic stress disorder
The governor said a separate lottery for dispensary licenses will be announced on Thursday. The state plans to award at least four dispensary permits in each of 11 regions, with Jefferson and Fayette counties eligible for up to six each.
Kentucky joins a growing number of states allowing medical marijuana use, though the program faced early hurdles. By July, only 13 companies had initially applied for licenses, prompting officials to encourage more applications. The state issued its first testing laboratory permit last month.
Patient registration for medical cannabis cards begins Jan. 1, 2025, alongside the planned sales launch.
The Kentucky Office of Medical Cannabis took another step forward today by conducting a business license lottery for cultivators and processors. 1/2 pic.twitter.com/AgkKSmZl5G
— Governor Andy Beshear (@GovAndyBeshear) October 28, 2024
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