Kentucky group addressing recent concerns on medical cannabis licensing
This article originally appeared on FOX56
LEXINGTON, Ky. (FOX 56) — Kentucky’s medical cannabis program has been a hot topic, especially as it moves closer to being implemented. There have been concerns and criticisms about the lottery process used to allocate licenses.
In an attempt to ease some concerns about medical cannabis license applications, the Kentucky State Chapter for the National Organization of Marijuana Reform also known as Kentucky NORML is offering some guidance.
In July, the Kentucky Office of Medical Cannabis announced it was accepting applications for cannabis business licenses through the online business licensing application portal. The portal was open from July 1 to Aug. 31 for applications.
As of now, more than 2,600 applications have been filed for medical marijuana businesses in Kentucky. Only a select few of those businesses will obtain a license through the lottery system.
In July FOX 56 spoke to one small business co-owner who was concerned that large out-of-state corporations would be able to game the lottery system by adding more chances in the form of shell LLCs.
“I have one chance in the bucket, and they’ve got 15 chances in the bucket to pull out two licenses and even though you can’t operate two dispensaries at the same location, they have to be moved away from each other,” said Jason Smith, co-owner of Bluegrass Buyers Club.
Now, Kentucky NORML is reassuring business owners that there are laws surrounding medical cannabis licensing that give everyone a fair chance. According to the news release, some key points include,
Clarifications on the Application Process: Including details on provisional lease agreements and the use of multiple LLCs.
Integrity of the Lottery System: Highlighting the role of the Kentucky Lottery in maintaining a fair and transparent process.
Program Funding and Fees: Explaining the financial structure of the program and its implications for patients and taxpayers.
Responses to Criticism: Providing context on recent media and business critiques.
“We want Kentuckians to have confidence in the program and confidence in the legislators that are doing their job, and you know, they’ve got a big job right now. They’ve got over almost 22, 2,300 applications to go through and they will be reviewed,” said Lauren Bracher, deputy director for Kentucky NORML. “If for any reason someone thought, they could get away with app stacking will be caught and sent back. They will have 10 days to respond with whatever is being asked to fix that, if they can’t do it, then their application doesn’t go through to the actual lottery.”
She said the number of applications could double by today when they get back to work.
The applications will be reviewed over the coming weeks with the lottery process to be live-streamed in early October.
“What’s happening is, it started with a miscommunication where the issues of having a parent company open many LLCs and trying to stack extra entries into the lottery thereby ‘gaming the system’ has kind of been confused with the business issue that is, if there is only one or two viable commercial properties in the area that a business wants to open a cannabis dispensary in, there may be five, 10 different people wanting to open in that area and there are only one or two different places that will work,” Bratcher added. “So, everyone will get what is called a provisional lease or provisional lease agreement, contingent lease agreement. It’s serval names for it. But basically, it says that all these people are interested using this property for the reason of medial cannabis and whoever wins the lottery and gets the license will get to complete the lease and sign on it and take over.”
Also, this November, voters in Kentucky will be tasked with more than choosing a president and vice president. More than 100 Kentucky counties will decide if they want medical marijuana growers, dispensaries, processors, and compliance facilities to be licensed in their hometowns.
Most local governments in Kentucky have approved or denied medical cannabis businesses, but nearly 30% of voters will decide the fate of the program in their counties this fall.
In March of last year, Gov. Andy Beshear signed Senate Bill 47, which legalized medical marijuana.
Lawmakers hope it will reduce Kentuckians’ addiction to opioids and provide relief from severe and chronic pain. Bratcher said a lot of times the bigger cities are the most prepared, but she believes smaller counties and cities that are waiting for a vote will be surprised at the positive reception towards it.
“I think that people need to sit back and have confidence and the bills that were passed and the administration under, Governor Beshear in this program and let it start before we start picking problems,” said Bratcher.
The state’s new medical marijuana program is set to take effect on Jan. 1, 2025.
