Kentucky governor announces lottery to award initial round of medical cannabis business licenses
FRANKFORT, Ky.– Kentucky will use a lottery system to award an initial round of licenses to companies vying to participate in the state’s medical cannabis startup program, Gov. Andy Beshear announced Thursday.
The governor called it a fair way to give every applicant who goes through the screening process the opportunity to obtain a license for the program, which will launch statewide in early 2025.
The lottery, scheduled for October, should remove any temptation to lobby in an effort to “get an edge in different ways that we don’t want to see,” Beshear said at his weekly news conference.
“It reduces or eliminates lawsuits, and it creates a fairer process, not one where people bid against each other and only then can big corporations be part of it,” the governor said. “But one that at least offers an opportunity to everyone who can meet the criteria.”
The state will initially issue 48 medical cannabis dispensary licenses across 11 regions. The goal is to ensure the shortest possible driving times for Kentuckians with qualifying health conditions, said Sam Flynn, executive director of the medical cannabis program.
Each region will be assigned at least four pharmacy licenses, and counties will be limited to one pharmacy, with the exception of the regions where Louisville and Lexington are located, which can have two licenses, Flynn said.
A limited number of grower and processor permits will be issued.
Limits on licenses are intended to prevent the market from being flooded with medical cannabis products and exceeding demand, which would hurt businesses and patients, the governor said.
“You can see it’s not about having a pharmacy on every corner,” Beshear said. “It’s a limited program that we can monitor and deliver on what we’ve committed to do to do this safely, but also to have access in every region for people who qualify.”
The program may expand to include more companies in the future depending on demand and if more qualifying medical conditions are added.
“This is probably the minimum you’ll see moving forward,” Beshear said. “But again, you can always scale up. Scaling back hurts businesses, hurts people and hurts access.”
“We’re not starting big. We’re starting with a manageable program that, yes, can grow,” he added.
On Wednesday, the Democratic governor signed legislation that pushes back the timeline for licensing cannabis businesses by six months, with the application period running from July 1 to the end of August. The change makes it likely that at least a limited supply will be available in January if they become legal, Beshear said.
Medical marijuana advocates overcame years of setbacks in Kentucky when lawmakers last year passed the measure legalizing medical cannabis for people suffering from a range of debilitating diseases, including cancer, multiple sclerosis, chronic pain, epilepsy, chronic nausea and post-traumatic stress disorder.
The governor has advocated adding more conditions to the qualifications list, but the bill he signed Wednesday did not do so.
Local governments and schools can decide not to participate in the state program.