KY Medical Cannabis Program Faces Audit Over License Complaints

18 April 2025

Kentucky’s new medical cannabis program is facing major questions just months after its launch. State Auditor Allison Ball has opened a formal investigation into how licenses were awarded to cannabis businesses, citing growing complaints over fairness and transparency.

Details of What’s Happening

On April 17, 2025, Auditor Ball announced an official audit of the Office of Medical Cannabis, focusing on:

• The license lottery process used to award cultivation, processing, and dispensary licenses.
• Allegations that out-of-state companies dominated the results.
• Claims that local Kentucky farmers and small businesses were left out, despite expectations of in-state priority.

Key Background

• Program Launch: Kentucky’s medical cannabis law (Senate Bill 47) went into effect in January 2025.
• Patient Access: Over 8,000 medical cannabis cards have been issued to patients with qualifying conditions.
• Licensing Process: Thousands of applications were submitted, and winners were chosen through a randomized lottery, livestreamed for public view.

Main Concerns

• Lack of Local Representation: Small Kentucky hemp farmers say they were misled to believe they’d receive preference.
• Corporate Advantage: Critics say large, out-of-state companies had more resources and better odds.
• Transparency Issues: Some applicants claim the system was difficult to navigate and lacked oversight.

Why It Matters

For Patients

• No immediate impact on access, but long-term supply could be affected if business operations are delayed or changed.

For Business Owners

• Questions over fairness could impact future licensing rounds and discourage small or local entrepreneurs from participating.

For Policymakers & Investors

• This audit could shape the future of Kentucky’s cannabis industry and how other states approach similar rollouts.

Political Context

• Auditor Allison Ball (Republican) has previously criticized Governor Andy Beshear’s (Democrat) administration.
• Beshear defends the process as legal and transparent, and says most complaints came after applicants failed to win licenses.
• Despite the controversy, Kentucky recently broke ground on its first Tier 2 cultivation site, moving forward with supply chain development.

What’s Next for KY Cannabis?

The audit will review:

• How licenses were awarded
• Whether any rules were violated
• Recommendations for improving the process

No timeline has been given for when the audit will be complete.

Stay tuned as the state works to ensure Kentucky’s medical cannabis program remains fair, accessible, and transparent for all.