The Kentucky General Assembly’s Administrative Regulation Review Subcommittee has officially approved a set of regulations for medical cannabis businesses ahead of the program’s January 1, 2025 launch.
These regulations outline application fees, annual licensing costs, and safety compliance standards for businesses aiming to participate in Kentucky’s budding medical cannabis market, reported Kentucky Today.
Cultivators fall under four tiers, with non-refundable application fees ranging from $3,000 to $30,000, based on the scale of cultivation. For processors and dispensaries, the fee is set at $5,000, while safety compliance facilities will pay $3,000. Once approved, annual fees range from $12,000 to $100,000 depending on the tier.
Kentucky’s Office of Medical Cannabis executive director, Sam Flynn said there’s huge interest in the program, with nearly 5,000 applicants submitting their proposals.
“The total number of applications was 4,998,” Flynn stated, highlighting that 4,075 were dispensaries and 923 were cultivators, processors, or compliance facilities.
The initial wave of applications generated an impressive $27.7 million in non-refundable fees.
However, Flynn noted that these fees represent a one-time revenue stream. To maintain program sustainability, patient fees – set at $25 for both initial applications and annual renewals – will help support ongoing costs. The potential need for additional general fund appropriations may arise in the future to cover shortfalls.
Kentucky recently awarded its first medical cannabis license to a testing lab.
Meanwhile, Kentucky is gearing up for its next step, with plans to distribute licenses to cultivators and processors through a lottery system set for October 28.
Cover: AI generated image
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.