Kentucky Marijuana Dispensary License

What Is a Marijuana Dispensary License in Kentucky?

A Kentucky dispensary license allows the licensee to acquire medical cannabis from licensed Kentucky cannabis cultivators, processors, producers, and dispensaries. The license also permits the holder to sell and deliver medical cannabis and medical cannabis accessories to medical cannabis cardholders and eligible out-of-state visiting patients. If you hold a Kentucky dispensary license, you can provide educational materials to medical cardholders and qualified visiting patients.

Does Kentucky License Marijuana Dispensaries?

Yes. The Cabinet of Health and Family Services (CHFS) under the Kentucky Medical Cannabis Program licenses qualified retail businesses to sell or dispense medical cannabis products to registered qualified patients, designated caregivers, and visiting qualified patients. Licensed dispensaries in the state cannot sell medical cannabis products with THC content over the allowable limits or products containing vitamin E acetate. In the license application window open between July 1, 2024, and August 31, 2024, 48 cannabis dispensary licenses will be issued to successful applicants.

What are the Different Types of Cannabis Dispensary Licenses in Kentucky?

The Kentucky Medical Cannabis Program only allows for the issuance of one type of dispensary license. Unlike its cultivator license, issued in different tier categories, anyone seeking to sell medical cannabis products to eligible patients and caregivers must obtain a dispensary license from the Cabinet of Health and Family Services.

How to Apply for a Marijuana Dispensary License in Kentucky?

Kentucky dispensary license applications are completed online via the state's medical cannabis portal. The initial application window is open from July 1, 2024, till August 31, 2024. However, before an individual or entity may apply for the license, they must meet specific eligibility requirements:

• An applicant, agent, principal officers, board member, volunteer, and employee of the applicant must be aged 21 or older. Also, these individuals must complete a criminal background check to verify they do not have a disqualifying offense
• The applicant must demonstrate financial capacity and stability to meet the required capital thresholds
• The applicant must prepare an operation plan detailing the following:
  • Record keeping
  • Security
  • Transportation of medical cannabis
  • Inventory management
  • Storage and labeling of medical cannabis
  • Diversion prevention
  • Workforce development
  • Employee qualifications, supervision, and training
• Prepare other required documentation:
  • Site plan
  • Business entity formation documents
  • Management service agreement, if applicable
  • Financial plan
  • Resumes or CVs of principal officers and board members
  • A timeline showing the steps and estimated amounts of time the applicant will take to start cannabis business activities
  • Ownership organizational structure document
  • Disclosure of principal officers and board members regarding criminal history form, if applicable
  • Summary of instances where the applicant's board members previously served on a board for a business or not-for-profit entity that was convicted, censured, fined, or had a license or registration suspended or revoked in judicial or administrative proceedings, if applicable
  • Summary of prior business experience, if applicable
  • Documentation of sufficient capital
  • Proof of compliance with state and local zoning restrictions for cannabis business. A cannabis processing facility cannot be located within 1,000 feet of an existing secondary or elementary school or a daycare center
  • Description of the responsibilities, duties, and roles of each principal officer, employee, board member, and other individual or entity with a financial interest in the cannabis business who is not involved in the day-to-day operations of the business
  • Disclosure of individuals and entities involved in the cannabis business. This includes those with at least a 10% ownership stake, key management positions (officers and board members), and major financial backers. Additionally, any physicians or advanced practice nurses with ownership, investment, or contractual ties to the business must be disclosed
  • The notarized application signature page

Once you meet the eligibility conditions and gather the necessary documentation and fees, you can proceed to the Kentucky Medical Cannabis Portal to create an account and begin your application. A lottery will determine the final awardees if the number of applications exceeds the number of dispensary licenses intended to be issued (48). Lottery winners must pay the licensing fee within 15 days of being granted a license.

The state's medical cannabis program will acknowledge the receipt of your application within 15 days of submission. However, if deficiencies are identified in your application, you must address them and resubmit your application within 10 days of being notified. Once a determination has been made on your application, you will be notified of the decision. This notification typically arrives within 45 days of submitting a complete application. Afterward, the initial licensing fee must be paid within 15 days. If your application is denied, the medical cannabis program will inform you of the reasons and you may appeal the decision within 30 days.

The licensing questions page and the Business Licensing Application Guide on the Kentucky Medical Cannabis Program website provide more details on dispensary license applications.

How Much Does a Marijuana Dispensary License Cost in Kentucky?

The following are the financial commitments required of individuals or entities looking to obtain a Kentucky cannabis dispensary license:

• Nonrefundable application fee: $5,000
• Initial licensing fee: $30,000
• Annual licensing fee: $30,000
• Capital requirements: $150,000

Can Marijuana Dispensary Licensees Hold Other Cannabis Licenses in Kentucky?

In the initial application window, which opened on July 1, 2024, for at least 60 days, dispensary license applicants may apply for multiple dispensary licenses in separate Kentucky medical cannabis regions but cannot apply for more than one cannabis business license type. Hence, applying for a dispensary license and a cultivator, processor, or safety compliance facility license is prohibited.