Kentucky Marijuana Licensing

What License Types Exist in Kentucky?

Per Section 218B.080 of the Kentucky Revised Statutes, to operate a cannabis business in the state, an individual or entity must obtain a license from the Kentucky Medical Cannabis Program. The medical cannabis program in the state is housed within the Cabinet for Health and Family Services (CHFS). The state issues cannabis licenses to qualified individuals or entities in the following categories:

Cannabis Cultivator License

The cannabis cultivator license authorizes the licensee to grow medical cannabis or raw plant material in an enclosed, locked facility. It also permits the licensee to sell medical cannabis to licensed medical cannabis processors, producers, or dispensaries in Kentucky.

Specifically, a Kentucky cannabis cultivator license permits the following activities:

Acquiring, possessing, planting, cultivating, raising, harvesting, trimming, or storing cannabis seeds, seedlings, plants, or raw plant material in an enclosed, locked facility that includes a greenhouse, building, or other indoor area.
Delivering, transporting, transferring, supplying, or selling raw plant material or related supplies to other licensed cannabis businesses in this state
Selling cannabis seeds or seedlings to other licensed cultivators in Kentucky

However, a cannabis cultivator licensed does not permit the cultivation of medical cannabis with THC content above 35%. The selling or transferring of medical cannabis to any individual or entity who does not hold a cannabis business license issued by the CHFS is prohibited.

The CHFS categorizes cannabis cultivators into four tiers depending on the allowable square feet of grow area:

Tier I: The allowable square feet of cannabis grow area for a Tier I cultivator is 2,500 square feet
Tier II: The allowable square feet of cannabis grow area for a Tier II cultivator is 10,000 square feet
Tier III: The allowable square feet of cannabis grow area for a Tier III cultivator is 25,000 square feet
Tier IV: The allowable square feet of cannabis grow area for a Tier IV cultivator is 50,000 square feet

Cannabis Process License

The cannabis processor license issued by the CHFS in Kentucky authorizes its holder to process raw plant material into medical cannabis products on its licensed premises in the state. The license allows the licensee to modify medical cannabis through extraction and other processing methods to develop various products for the medical-use cannabis market.

Specifically, the Kentucky cannabis processor license permits the holder to:

Acquire or purchase raw plant material from a cultivator, producer, or another processor
Possess, process, prepare, manufacture, manipulate, blend, or package medicinal cannabis
Transfer, transport, supply, or sell medicinal cannabis and related supplies to other licensed cannabis businesses

Note the processor license does not permit the selling of medical cannabis products directly to medical cannabis cardholders. Also, per KRS 218B.115(2), cannabis processor licenses in the state are prohibited from possessing or selling finished medical cannabis products with THC content above the permitted THC limits or any product containing vitamin E acetate.

Safety Compliance Facility License

A safety compliance facility license issued under the Kentucky medical cannabis program allows its holder to test samples of medical cannabis obtained from licensed cannabis businesses to ensure compliance with the testing requirements outlined under 915 KAR 1:110.

If you have a Kentucky safety compliance facility license, you may:

Possess or acquire medical cannabis obtained from licensed Kentucky cannabis businesses and cardholders for testing purposes
Test medical cannabis for psychoactive compounds, residual production chemicals, impurities, and contaminants
Produce and sell medical cannabis educational materials, laboratory equipment, and packaging materials
Training cardholders and cannabis business agents

However, a safety compliance facility license does not allow the licensee to perform tests on medical cannabis for a cannabis business prior to entering into a written contract with that business. Also, a safety compliance facility can neither be open to the general public nor accept medical cannabis or return medical cannabis to anyone except licensed cannabis businesses.

Dispensary License

A cannabis dispensary license authorizes its holder to sell medical cannabis products from its licensed premises to registered qualified patients, designated caregivers, and visiting qualified patients. Licensed dispensaries may only sell medical cannabis products acquired from a licensed cannabis business that has passed all tests required in 915 KAR 1:110.

Specifically, a Kentucky cannabis dispensary license permits the holder to:

Acquire medical cannabis from a cultivator, processor, producer, or other dispensary
Sell and deliver medical cannabis and medical cannabis accessories to cardholders and qualified out-of-state visiting patients
Providing educational materials to medical cardholders and qualified visiting patients

However, the license does not authorize the acquisition or offering for sale of medical cannabis products with THC content above the permitted THC limits or any product containing vitamin E acetate. The licensee must not also dispense medical cannabis to minors, permit persons aged 18 inside their licensed premises, or dispense medical cannabis products intended for vaporization to medical cannabis cardholders younger than 21.

Cannabis Producer License

The Kentucky medical cannabis producer license allows its holder to plant, raise, harvest, trim, and cure raw plant material, as well as process and package it into usable product formats. Note that the Kentucky Medical Cannabis Program is not currently accepting applications for the cannabis producer license.