Kentucky Governor Andy Beshear has announced that the state will use a lottery system to award an initial round of medical marijuana business licenses.
The lottery will take place in October, with Governor Beshear arguing that it should remove any temptation to lobby in an effort to “get a leg up in different ways that we don’t want to see”. Governor Beshear says that the medical marijuana industry is expected to be up and running by the first half of 2025.
“[The lottery] reduces or eliminates litigation, and it creates a more fair process, not one where people bid against each other and only then the big companies can be a part of it,” said the governor. “But one that provides at least a chance for everyone who can meet the criteria.”
The state will initially grant 48 licenses for medical marijuana dispensaries. Sam Flynn, executive director for the state’s medical marijuana program, says the dispensaries will be spread across 11 regions to minimize travel times for patients.
Flynn says each region will receive a minimum of four dispensary licenses. However, each county is limited to one dispensary, except for those housing Louisville and Lexington, which may have two.
The program may expand in the future to include more businesses based on demand and the addition of further qualifying medical conditions.
“This is probably the smallest scope you’ll see as the program progresses,” says Beshear. “But remember, it’s easier to scale up than down. Scaling back would negatively affect businesses, individuals, and access. We begin with a manageable program that has the potential to expand”.
On Wednesday, the Democratic governor signed a bill accelerating the cannabis business licensing process by six months, allowing applications from July 1 to the end of August. This change is expected to ensure that at least limited cannabis supplies are available by January when they become legal, Beshear mentioned.
Legislation to legalize medical marijuana was signed by Governor Beshear in March, 2023. The measure legalizes the possession and use of medical marijuana for those with a qualifying medical condition who receive a recommendation from a physician or advanced practice registered nurse. Licensed dispensaries are allowed to distribute marijuana and marijuana products. Although smoking marijuana technically isn’t allowed, dried marijuana flower is permitted for vaping, and patients will be allowed to obtain a variety of marijuana products including tinctures and capsules.
