The Kentucky General Assembly's Administrative Regulatory Review Subcommittee has formally approved a series of regulations for medical marijuana businesses ahead of the program's launch on January 1, 2025.
These regulations outline application fees, annual license fees and safety compliance standards for companies seeking to participate in Kentucky's emerging medical cannabis market, Kentucky Today reported.
Growers are categorized into four tiers, with non-refundable application fees ranging from $3,000 to $30,000 depending on grow size. For processors and pharmacies, the fee is set at $5,000, while safety-compliant facilities pay $3,000. Once approved, annual fees range from $12,000 to $100,000 depending on level.
Related article: Florida's cannabis reform: Record spending, unlikely alliances, and criticism from the Catholic Church
Sam Flynn, executive director of the Kentucky Office of Medical Cannabis, said there has been significant interest in the program, with nearly 5,000 applicants submitting proposals.
“The total number of applications was 4,998,” Flynn said, noting that 4,075 were dispensaries and 923 were growers, processors or compliance facilities.
The first wave of applications generated a staggering $27.7 million in non-refundable fees.
But Flynn pointed out that these fees are a one-time source of revenue. To maintain program sustainability, patient fees, set at $25 for both initial applications and annual renewals, help support ongoing costs. Additional General Fund appropriations may be required in the future to cover shortfalls.
Kentucky recently awarded its first medical marijuana license to a testing laboratory.
Meanwhile, Kentucky is preparing for the next step, with plans to distribute licenses to growers and processors through a lottery system set for Oct. 28.
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