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Marijuana Processing License

  1. Kentucky Cannabis
  2. Kentucky Marijuana Business
  3. Licensing
  4. Marijuana Processing License

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Does Kentucky Require a Marijuana Processing License to Make Cannabis Products?

Under Section 218B.080 of the Kentucky Revised Statutes, you must obtain a processor license under the state's medical cannabis program in order to process raw cannabis plant material into medical cannabis products. Licensed medical cannabis processors can legally purchase raw plant material from licensed cultivators, producers, or processors. However, a Kentucky cannabis processor license does not allow the licensee to possess or sell finished medical cannabis products with THC contents over permitted THC limits or any product containing vitamin E acetate.

Does Kentucky Require Licensed Cannabis Processors to Have Cultivation Licenses?

No. Kentucky neither requires licensed cannabis sellers nor permits them to obtain cannabis cultivator licenses. The state issues separate cannabis cultivator licenses to qualified individuals or entities intending to grow cannabis for medical purposes in the state. Anyone interested in cultivating and processing cannabis legally in the state must wait until the state begins issuing the cannabis producer license. Kentucky's producer license allows the licensee to plant, raise, harvest, and trim raw plant material as well as process and package the raw plant material into usable product formats.

How Does Kentucky Classify Marijuana Processor Licenses?

Unlike some states in the United States that differentiate marijuana processors according to the extraction method or other criteria, Kentucky does not separate its cannabis processor license into multiple classes. The state allows its cannabis processor licensee to use various solvents in their extraction process. These solvents include:

  • Propane
  • Heptane
  • Ethanol
  • Isobutane
  • N-butane
  • Food-grade carbon dioxide-based extraction

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

Kentucky only issues one type of cannabis process license.

Does Kentucky Require a Separate License to Process Edibles?

No. Kentucky’s cannabis processor license allows licensees to process edibles without obtaining additional authorization. Other types of cannabis products that a Kentucky cannabis processor licensee can process are oils, tinctures, vaporization, topical forms, dermal patches, raw plant material, and nebulization.

How to Get a Cannabis Processing License in Kentucky

You can obtain a cannabis processor license in Kentucky by completing an application on the Kentucky medical cannabis portal. However, before commencing your application, you must verify that you meet the state's eligibility requirements and have gathered the required documentation.

Some of the eligibility requirements for a Kentucky cannabis processor license include:

  • The applicant, principal officer, agent, volunteer, board member, or employee of the business must be aged 21 or older
  • The applicant, agent, principal officers, board members, volunteer, or employee must pass a criminal background check to verify that they have not been convicted of a disqualifying offense
  • The applicant must demonstrate financial stability, including meeting capital requirements
  • The applicant must submit a detailed operation plan, including a summary of intended operations regarding:
    • Record keeping
    • Security
    • Transportation of medical cannabis
    • Inventory management
    • Storage and labeling of medical cannabis
    • Diversion prevention
    • Workforce development
    • Employee qualifications, supervision, and training

The applicant must also prepare the following documents for submission with their application:

  • Site plan
  • Business entity formation documents
  • Management service agreement, if applicable
  • Financial plan
  • Resumes or CVs of principal officers and board members
  • Ownership organizational structure document
  • Documentation of sufficient capital
  • Disclosure of principal officers and board members regarding criminal history form, if applicable
  • A timeline showing the steps and estimated amounts of time the applicant will take to start cannabis business activities
  • 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 registration or license revoked or suspended in judicial or administrative proceedings, if applicable
  • Summary of prior business experience, if applicable
  • 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
  • The notarized application signature page
  • 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
  • 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 elementary or secondary school or a daycare center

Upon meeting the eligibility requirement and gathering the required documentation and fee, you may proceed to the Kentucky medical cannabis portal to create an account and commence your application. The initial application period for a Kentucky cannabis processor license is July 1 to August 31, 2024. Ten cannabis processor licenses are expected to be issued for applicants who applied during the initial application window. Note that a lottery will determine recipients if applications for the processor license exceed the stipulated number of licenses to be issued. Lottery winners must pay the licensing fee within 15 days of being granted licenses.

Upon completing and submitting your application, the Kentucky medical cannabis program will acknowledge receipt of your processor license application within 15 days. You will receive a detailed notice outlining the required corrections if your application is incomplete. Applicants have 10 days to address deficiencies and resubmit through the online portal.

The medical cannabis program will notify applicants of approval or denial of their applications within 45 days of a complete application. If a denial is issued, you will be notified of the reasons for the decision and your right to appeal the decision within 30 days.

For detailed application guidance, refer to the Business Licensing Application Guide or the application and licensing questions page on the Kentucky Medical Cannabis Program website.

How Much Does a Cannabis Processing License Cost in Kentucky?

The following are the financial commitments associated with a Kentucky cannabis processor license:

  • Non-refundable application fee: $5,000
  • Initial licensing fee: $25,000
  • Annual licensing fee: $25,000
  • Capital requirements: $150,000