Kentucky on Thursday awarded the state's first business licenses under a new startup program.
KCA Labs, a Nicholasville-based cannabis testing facility, was chosen to ensure all products are tested before reaching patients, Yahoo Finance reports.
SEE ALSO: Alcohol was banned in Kentucky 10 years ago, now voters are voting to legalize marijuana
“We're very happy that the first licenses will be awarded to organizations that will help us do it safely,” Gov. Andy Beshear (D) said at a news conference in Frankfort. “Our mission is to ensure that Kentuckians with serious medical conditions have access to safe, high-quality, tested medical cannabis products, and KCA is helping us do just that. That one.”
KCA Labs, a leader in safety compliance
KCA Labs, which previously specialized in cannabis testing, will now lead responsibility for ensuring product quality for Kentucky's medical cannabis program.
CEO Jonathan Thompson expressed confidence in their preparations, saying, “KCA's vast knowledge and experience in testing hemp products will translate well to Kentucky's new medical cannabis program.”
Safety compliance facilities such as KCA Labs play a critical role in testing to ensure all products meet rigorous medical standards before being made available to eligible patients.
The state will use a lottery system to award licenses to businesses looking to grow, process and sell medical marijuana, but there will be no limit to the number of safety compliance licenses.
grower and dispensary licenses
Kentucky is preparing for the next step. Licenses will be awarded to growers and processors through a lottery system scheduled for October 28th. Another lottery for pharmacy licenses is expected to follow in November. According to Beshear, this method ensures a level playing field for applicants who successfully pass the initial screening process.
The Governor explained the reasoning behind this approach. “These license caps are to ensure that the market is not flooded with products and exceeds demand.” With nearly 5,000 applications, the lottery system will adjust supply and ensure market balance and sustainability. I'm doing it.
overcome legislative hurdles
Kentucky's medical marijuana program has overcome numerous legal challenges to get to this point. After years of delays, state legislators are moving forward in 2023 to provide medical care for individuals with serious conditions such as cancer, multiple sclerosis, chronic pain, epilepsy, chronic nausea, and post-traumatic stress disorder (PTSD). Passed a bill to legalize marijuana.
In April, Beshear signed a follow-up bill that accelerated the licensing timeline by six months, allowing the program to begin licensing in 2024 instead of 2025.
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