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kentucky

HOW TO OPEN A DISPENSARY IN KENTUCKY

Want to learn how to open a dispensary in Kentucky? Kentucky does not currently allow for medical or adult use marijuana. The Kentucky Department of Agriculture (KDA) is conducting an Industrial Hemp Research Pilot Program as authorized by the 2014 Farm Bill.

In 2022, Gov. Andy Beshear, signed Executive Order 338 to expand the medical marijuana program within the state of Kentcuky. By signing this executive order, the governor, has created a committee of 17 individuals with backgrounds in health care, addiction treatment, law enforcement, criminal justice, and advocacy in cannabis. These appointed indivudals can be found within Order 338, and will report directly to the governor with their findings from the public.

On February 20, 2020, the Kentucky House passed HB136, which would authorize qualifying patients to access medical cannabis, by a vote of 65-30. The bill now goes on to the State Senate. This bill would require qualifying patients to receive written certification reissued every 90 days, and receive an exam by a physician at least once per year. An individual could legally possess up to 30 days’ worth of cannabis at their residence, and a 10 day supply on their person when traveling within the state.

Hemp Cultivation

Industrial Hemp pilot program applications opened in November, 2019, and are due by March 15, 2020. Individuals and businesses interested in applying for a grower or processor/handler license can apply online here for no charge at the KDA’s ONLINE LICENSING PORTAL.

Application Status

Industrial Hemp pilot program applications opened in November, 2019, and are due by March 15, 2020.

KDA accepts multi-year license applications for both growers and processors/handlers and those licenses are subject to annual renewal requirements.
KDA no longer requires the following to obtain a license: a research plan, previous farm experience, a marketing plan, or a seed acquisition plan.

Application Fees/Start up Costs

*There are no licenses available at this time for medical marijuana.

KDA Industrial Hemp pilot program fees are:

$200 for paper applications (nonrefundable; does NOT apply to Licensing Fee) Not required for on-line applications

License fees for hemp grower in $400.00

Processor/Handler license fees:

Handlers - $500 annual fee An example of a “handler” includes any private lab
or service provider, such as a seed cleaner.
Fiber Processor - $500 annual fee
Grain Processor - $500 annual fee
Floral Material Processor - $3,000 annual fee

Available License Types

Medical Qualifying Conditions

Kentucky does not specify qualifying medical conditions for patients to receive CBD oil derived from marijuana. It is left to the discretion of medical professionals. Kentucky Market. The KDA estimates that there were over 26,000 acres of hemp cultivation in 2019, with over 50,000 acres approved. 2018 saw an estimated $57.8 million in gross sales of hemp in Kentucky, a threefold increase over the previous year. State officials expect $100 million in gross sales after 2019 data is released, and the Hemp Business Journal projects $1 billion in sales in 2020.

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History

In January 2019, Kentucky lawmakers introduced HB136 to legalize medical marijuana. The bill passed through the House Judiciary Committee on a 16-1 vote, but failed to pass a floor vote before the legislature adjourned for 2019.

On February 20, 2020, the Kentucky House passed HB136 by a vote of 65-30. The bill now goes on to the State Senate.

Key Dates (nested under history)

February 20, 2020: SB136 passes Kentucky House. The bill to legalize medical marijuana now moves on to the senate.
January, 2019: SB136 passes House Judiciary Committee.
April 10, 2014: Gov. Beshear signs SB124, which passed the State Senate unanimously, allowing patients to access CBD oil derived from marijuana when recommended by a medical professional, but no legal mechanism for providing access.

Previous License Types

From the KDA, 2019 press release: “The KDA received a total of 1,115 applications – 1,074 grower applications and 41 processor/handler applications. Applicants were asked to identify which harvestable component of the plant would be the focus of their research (floral material, grain, or fiber); some applicants selected more than one component. The KDA also approved 40 new applications from processors (in addition to 69 previously approved multi-year processor license holders who are renewing their licenses for 2019). Several universities will also carry out additional research projects in 2019...In 2018, 210 growers were licensed to plant up to 16,100 acres of industrial hemp and planted more than 6,700 acres. Program participants planted more than 3,200 acres in 2017, 2,350 in 2016, and 922 acres in 2015. Thirty-three acres were planted in 2014, the first growing year.”

In 2014, Kentucky Gov. Steve Beshear signed SB124 into law. This bill permits patients suffering from intractable seizure disorders to access cannabidiol (CBD) derived from marijuana. All individuals are permitted to possess and use CBD oil derived from hemp. Medical approval is required to possess and use CBD oil derived from marijuana.

Estimated market size

With a current population of 4.5 million, Arcview Market Research and BDS Analytics project $7 million in legal cannabis sales by 2024.