Kentucky is experiencing a surge in interest from businesses aiming to get into its nascent medical cannabis industry, with nearly 5,000 license applications submitted to the Office of Medical Cannabis.
A significant 88% of these applications arrived in the final four days before the August 31 deadline, Governor Andy Beshear announced during a press conference on September 5, according to Kentucky Today.
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“Today, the results are clear,” said Beshear. “There is incredible, if not overwhelming interest, especially among Kentuckians. That’s proof that the program is going to meet its goals. We are just going to have some challenges getting through those total number of applications, doing it right, ensuring that the process is fair, getting through the lotteries and then getting up and running.”
Of the 4,998 total applications, 4,076 came from dispensaries, 584 from cultivators, 333 from processors, and five from safety compliance facilities.
Staffing Expanded To Meet Demand
In response to the overwhelming number of applications, Beshear noted that staffing at the Office of Medical Cannabis has been significantly expanded.
Initially, nine staff members were assigned to review applications, but that number has since grown to 29, with plans to add 20 more employees. This expansion is designed to ensure that the application process remains thorough and equitable.
“Despite the last-minute influx of applications, the Office of Medical Cannabis is currently reviewing these applications, and we remain on track to issue these licenses in 2024,” Beshear said.
Concerns Over ‘Application Stacking’ Addressed
When questioned about the potential for “application stacking,” where companies might submit multiple applications under different names to increase their chances in the lottery, Beshear replied: “It’s hard to identify yet whether it’s happened, how much it’s happened, because so many applications came in right at the end, a big flood of them, but I do believe that the system is set up and we’re bringing in extra people to prevent that from happening-“
The governor also said that the state is preparing to hold its first lottery for license distribution, with plans to announce a date in the coming weeks.
Processors and cultivators’ lotteries will be held before dispensaries. Kentucky has capped the number of initial licenses at 16 cultivators, 10 processors and 48 dispensaries.
Local Governments Given Opt-Out Option
Although medical cannabis will become legal in Kentucky starting January 1, 2025, local governments have until December 31, 2024, to decide whether to allow cannabis businesses to operate within their jurisdictions.
Local authorities can either adopt specific zoning regulations, opt out of the program entirely, or put the issue to a vote. If no action is taken, the locality will be automatically included in the state program.
At the moment, 17 counties and 31 cities have opted out of allowing medical cannabis businesses, according to a Kentucky Association of Counties newsletter.
Additionally, voters in 51 counties and 50 cities will have the opportunity to decide the fate of cannabis business operations in their areas through ballot measures this coming November.
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