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Kentucky Medical Cannabis Licenses

Kentucky Medical Cannabis Legalization

Kentucky Medical Cannabis Laws

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Kentucky Medical Cannabis Licenses are possibly coming for 2020! For the first time ever – Kentucky voted and passed its Medical Cannabis Legalization! Kentucky Medical Cannabis Laws may soon change because its state legislature voted 65-30 to legalize medical cannabis for the people of Kentucky. It may soon become law and allow patients to access legal cannabis medicine and for other people to avoid the needless arrests that prohibitionist societies continue to maintain. 

Learn all about the types of coming medical marijuana licenses available in Kentucky by HB 136 Below!

There’s no certainty yet, but the Kentucky house approved a medical marijuana legalization bill – that changed its name to cannabis amongst other things. The Kentucky Medical Cannabis Laws are evolving, which means that Kentucky may soon join with the cannabis legalization states for its medical patients! Soon, maybe you can get a license to operate your own medical cannabis business in Kentucky.

Call about your Kentucky Medical Cannabis License Application

Looking for Kentucky Dispensary Information – Click Here.

Kentucky HB 136:Create various new Kentucky Medical Cannabis Laws to define terms; to exempt the medicinal marijuana program from existing provisions in Kentucky law to the contrary; to require the Department for Alcoholic Beverage and Cannabis Control to implement and regulate the medicinal marijuana program in Kentucky; to establish the Division of Medicinal Marijuana within the Department of Alcoholic Beverage and Cannabis Control; to establish restrictions on the possession of medicinal marijuana by qualifying patients, visiting patients, and designated caregivers; to establish certain protections for cardholders; to establish professional protections for practitioners; to provide i for the authorizing of practitioners by state licensing boards to issue written certifications for the use medicinal marijuana; to establish professional protections for attorneys; to prohibit the possession and use of medicinal marijuana on a school bus, on the grounds of any preschool or primary or secondary school, in a correctional facility, Kentucky Medical Cannabis Legalization, any property of the federal government, or while operating a motor vehicle; to prohibit smoking of medicinal marijuana; to permit an employer to restrict the possession and use of medicinal marijuana by an employee;

Kentucky Medical Marijuana Law

Kentucky’s new medical marijuana law will require the department to implement and operate a registry identification card program;

  • to establish requirements for registry identification cards; to establish registry identification card fees; to require the department to operate a provisional licensure receipt system;
  • to establish the application requirements for a registry identification card;
  • to establish when the department may deny an application for a registry identification card; to establish certain responsibilities for cardholders; to establish when a registry identification card may be revoked;
  • to establish various cannabis business licensure categories;
  • to establish tiering of cannabis business licenses; to require certain information be included in an application for a cannabis business license;
  • to establish when the department may deny an application for a Kentucky Medical Cannabis Laws cannabis business license;
  • to prohibit a practitioner from being a board member or principal officer of a cannabis business; to prohibit cross-ownership of certain classes of cannabis businesses; and
  • to establish rules for local sales.
 

RELATED POST: Getting a Job in the Cannabis Industry

RELATED POST: How to Open a Cannabis Dispensary

 

Want to Open a Cannabis Business

Kentucky Looks to Legalize Medical Marijuana

Kentucky Medical Cannabis Laws – Last week, a Kentucky state House committee advanced a bill to legalize medical marijuana, The bill, HB 136, has significant support in the state, and stands a good chance of becoming law. The version recently passed out of the House committee stands at 116 pages,. Incredibly, this is much shorter than the Illinois Cannabis Regulation and Tax Act, which came in at roughly 600 pages. 

HB 136 creates a licensing scheme for licensure of “cannabis business” entities, keeping with the current trend of states referring to “cannabis” instead of “marijuana.” The bill leaves many of the details of licensure to future administrative regulations, probably similar to the roughly 200 pages of “emergency” regulations for cannabis licensure in Illinois. 

The comprehensive licensing scheme creates five kinds of cannabis business licenses under new Kentucky Medical Cannabis Laws, which are subject to different fees and requirements. Below, we explore some of the top line requirements for different cannabis business licenses.

CANNABIS CULTIVATOR LICENSE

The bill defines a “cultivator” as follows:

“Cultivator” means an entity licensed under this chapter that cultivates, harvests, and delivers raw plant material to another cultivator, dispensary, processor, producer, or safety compliance facility;

Cultivators are essentially limited to growing the raw materials. Section 21 limits their activities as follows:

  1. Acquiring, possessing, planting, cultivating, raising, harvesting, trimming, or storing cannabis seeds, seedlings, plants, or raw plant material;
  2. Delivering, transporting, transferring, supplying, or selling raw plant material or related supplies to other licensed cannabis businesses in this state; or
  3. Selling cannabis seeds or seedlings to similar entities that are licensed to cultivate cannabis in this state or in any other jurisdiction

Cultivators are the only licensed entities which have different “tiers,” which affects the cost of the license. This is like other cannabis licensing in other legal states. There are Tier I, Tier II, Tier II, and Tier IV cultivators, based on the size of their cultivation facilities:

  • Tier I cultivator- 2,500 square feet or fewer;
  • Tier – 10,000 square feet or fewer;
  • Tier III- 25,000 square feet or fewer;
  • Tier IV- 50,000 square feet or fewer. 

The state must approve at least 15 cultivator licenses within one year after the bill goes into effect.

Lastly, cultivators (as well as producers and processors) are subject to serious taxes. Section 33 imposes an excise tax of 12% on the gross receipts of a cultivator.

KENTUCKY CANNABIS DISPENSARY LICENSE

The bill defines a “dispensary” as follows:

“Dispensary” means an entity licensed under this chapter that acquires, possesses, delivers, transfers, transports, sells, supplies, or dispenses medicinal 16 cannabis to cardholders;

Licensing of dispensaries is a bit more opaque than licensing for cultivators. The bill actually requires that dispensaries pair with pharmacists. Section 22 provides:

A dispensary shall be required to establish and maintain a collaborative 10 agreement, as described in Section 10 of this Act, with a pharmacist authorized 11 by the Kentucky Board of Pharmacy to engage in a collaborative agreement with 12 a dispensary

The state must approve at least 25 dispensary licenses within a year of the bill going into effect. The bill also requires that at least one dispensary be approved for each of the “development districts” established. Essentially, they have to be geographically dispersed to cover the state.

Fortunately, dispensaries are not subject to the major excise tax of cultivators, processors, and producers.

KENTUCKY CANNABIS PROCESSOR LICENSE

The bill defines a “processor” as follows:

“Processor” means an entity licensed under this chapter that acquires raw plant material from a cultivator in order to prepare, trim, manipulate, blend, manufacture, or otherwise modify the raw plant material, and package products  containing or derived from the raw plant material for sale to a licensed dispensary.”

Processors are allowed to do certain things set forth in Section 23:

(a) Acquiring or purchasing raw plant material from a cultivator, processor, or producer in this state; 

(b) Possessing, processing, preparing, manufacturing, manipulating, blending, preparing, or packaging medicinal cannabis; 

(c) Transferring, transporting, supplying, or selling medicinal cannabis and related supplies to other cannabis businesses in this state; or

(d) Selling cannabis seeds or seedlings to similar entities that are licensed to cultivate cannabis in this state or in any other jurisdiction.

The bill requires that at least five (5) processors be licensed within one year of passage. Processors are subject to the same 12% gross receipt excise tax as cultivators.

KENTUCKY CANNABIS PRODUCER LICENSE

The bill creates a license for “producers”, which are essentially combined cultivators and processors. Specifically, they are defined in Section 1 as:

“Producer” means an entity licensed under this chapter that is permitted to 17 operate as and engage in the permitted activities of both a cultivator and 18 processor.

Under Section 24, producers are allowed, to:

(a) Acquiring, possessing, planting, cultivating, raising, harvesting, trimming, or storing cannabis seeds, seedlings, plants, or raw plant material; 

(b) Delivering, transporting, transferring, supplying, or selling raw plant  material, medicinal cannabis products, or related supplies to other licensed cannabis businesses in this state; 

(c) Selling cannabis seeds or seedlings to similar entities that are licensed to  cultivate cannabis in this state or in any other jurisdiction; 

(d) Acquiring or purchasing raw plant material from a cultivator in this state; or 

(e) Possessing, processing, preparing, manufacturing, manipulating, blending,  preparing, or packaging medicinal cannabis;

Within one year of the bill going into effect, the state must issue at least three (3) producer licenses. Producers are also subject to the excise tax.

KENTUCKY CANNABIS SAFETY COMPLIANCE FACILITY LICENSE

A Cannabis Safety Compliance Facility licensed under the law performs one of two services:

(a) Testing medicinal cannabis produced by a cannabis business licensed under this chapter; or 

(b) Training cardholders and cannabis business agents;

The following activities are allowed under Section 25:

(1) Acquiring or possessing medicinal cannabis obtained from cardholders or 26 cannabis businesses in this state; 

(2) Returning the medicinal cannabis to cardholders or cannabis businesses in this state;

(3) Transporting medicinal cannabis that was produced by cannabis businesses in this state; 

(4) The production or sale of approved educational materials related to the use of medicinal cannabis; 

(5) The production, sale, or transportation of equipment or materials other than medicinal cannabis, including but not limited to lab equipment and packaging  materials that are used by cannabis businesses and cardholders, to cardholders or cannabis businesses licensed under this chapter; 

(6) Testing of medicinal cannabis produced in this state, including testing for  cannabinoid content, pesticides, mold, contamination, vitamin E acetate, and other prohibited additives;

(7) Training cardholders and cannabis business agents. Training may include but  need not be limited to:  

(a) The safe and efficient cultivation, harvesting, packaging, labeling, and distribution of medicinal cannabis; 

(b) Security and inventory accountability procedures; and

(c) Up-to-date scientific and medical research findings related to medicinal use of cannabis; 

(8) Receiving compensation for actions allowed under this section; and 

(9) Engaging in any non-cannabis related business activities that are not otherwise prohibited or restricted by state law.

Unlike other licenses, the state is not required to issue a minimum number of cannabis safety compliance facility licenses.

OTHER PROVISIONS

There are a few other highlights in the bill which will significantly affect the medical cannabis market in Kentucky:

  • A licensed producer can only operate one (1) cultivation and one (1) processing facility, though they may be at different locations;
  • License renewal fees are based on a percentage of gross receipts:
    • If gross receipts are under $2,000,000, the fee is 1% of gross receipts + $500;
    • If gross receipts are between $2,000,000 and $8,000,000, the fee is 1.5% of gross receipts + $2,000;
    • If gross receipts are more than $8,000,000, the fee is 2% of gross receipts + $4,000.
    • If less than $2,000,000 gross receipts in the past year, the fee is $500 plus 1% of gross receipts;
  • The Department can deny a license for any reason “in the exercise of sound discretion”, including:
    • A principal officer has been convicted of certain disqualifying felony offenses;
    • The facility isn’t in compliance with local prohibitions;
    • The facility doesn’t satisfy security, oversight, or recordkeeping regulations.

OUTLOOK FOR THE FUTURE OF KENTUCKY CANNABIS

The bill is sure to change as it works its way through the legislative process in Frankfort. However, as it stands now, HB 136 looks pretty similar to medical regimes in other states. The rubber will really hit the road once the state issues regulations for the full application process. Kentucky looks well poised to join the many other states that have finally embraced the medical benefits of cannabis.

Want to Open a Cannabis Business

Kentucky Medical Cannabis Law

For the purposes of Sections 1 to 30 of this Act, unless the context otherwise requires:

6 (1) “Bona fide practitioner-patient relationship” means a treating or consulting

7 relationship, during the course of which the practitioner:

8 (a) Has completed an initial in-person examination and assessment of the

9 patient’s medical history and current medical condition;

10 (b) Has consulted with the patient with respect to the possible therapeutic and

11 palliative properties of medicinal cannabis;

12 (c) Has advised the patient of the possible risks and side effects associated with

13 the use of medicinal cannabis including possible interactions between Kentucky Medical Cannabis Legalization

14 medicinal cannabis and any other drug or medication that the patient is

15 taking at that time; and

16 (d) Has established an expectation he or she will provide follow-up care and

17 treatment to the patient;

18 (2) “Cannabis business” means a cultivator, dispensary, processor, producer, or a

19 safety compliance facility licensed under this chapter;

20 (3) “Cannabis business agent” means a principal officer, board member, employee,

21 volunteer, or agent of a cannabis business;

22 (4) “Cardholder” means:

23 (a) A registered qualified patient, designated caregiver, or visiting qualified

24 patient who has applied for, obtained, and possesses a valid registry

25 identification card issued by the department as required by this chapter; or

26 (b) A visiting qualified patient who has obtained and possesses a valid registry

27 identification card, or its equivalent, that was issued pursuant to the laws of

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1 another state, district, territory, commonwealth, insular possession of the

2 United States, or country recognized by the United States that allows the

3 person to use cannabis for medicinal purposes in the jurisdiction of

4 issuance;

5 (5) “Cultivator” means an entity licensed under this chapter that cultivates, harvests,

6 and delivers raw plant material to another cultivator, dispensary, processor,

7 producer, or safety compliance facility;

8 (6) “Cultivator agent” means a principal officer, board member, employee,

9 volunteer, or agent of a cultivator;

10 (7) “Department” means the Department for Public Health as established in KRS

11 12.020;

12 (8) “Designated caregiver” means a person who has registered as such with the

13 department as required by this chapter;

14 (9) “Dispensary” means an entity licensed under this chapter that acquires,

15 possesses, delivers, transfers, transports, sells, supplies, or dispenses medicinal

16 cannabis to cardholders;

17 (10) “Dispensary agent” means a principal officer, board member, employee,

18 volunteer, or agent of a dispensary;

19 (11) “Disqualifying felony offense” means:

20 (a) A felony offense that would classify the person as a violent offender under

21 KRS 439.3401; or

22 (b) A violation of a state or federal controlled substance law that was classified

23 as a felony in the jurisdiction where the person was convicted, except:

24 1. An offense for which the sentence, including any term of probation,

25 incarceration, or supervised release, was completed five (5) or more

26 years earlier; or 27 2. An offense that consisted of conduct for which Sections 1 to 30 of this

Kentucky Medical Cannabis Laws -more on the next page

1 Act would likely have prevented a conviction, but the conduct either

2 occurred prior to the enactment of Sections 1 to 30 of this Act or was

3 prosecuted by an authority other than the Commonwealth of

4 Kentucky;

5 (12) “Enclosed, locked facility” means an indoor growing space such as a room,

6 greenhouse, building, or other indoor enclosed area that is maintained and

7 operated by a cultivator or producer and is equipped with locks and other security

8 devices that permit access only by agents of the cultivator or producer, as

9 required by the department;

10 (13) “Gross receipts” means all amounts received in money, credits, property, or other

11 money’s worth in any form, by a cannabis business;

12 (14) “Growth area” means the same as an enclosed, locked facility;

13 (15) “Marijuana” means the same as defined in KRS 218A.010;

14 (16) “Medicinal cannabis” means marijuana as defined in KRS 218A.010 when

15 cultivated, harvested, processed, produced, transported, dispensed, distributed,

16 sold, possessed, or used in accordance with Sections 1 to 30 of this Act. The term

17 “medicinal cannabis” includes medicinal cannabis products and raw plant 18 material;

19 (17) “Medicinal cannabis accessories” means any equipment, product, or material of

20 any kind which is used, intended for use, or designed for use in the preparing,

21 storing, using, or consuming medicinal cannabis in accordance with Sections 1

22 to 30 of this Act;

23 (18)_”Medicinal cannabis product” means any compound, manufacture, salt,

24 derivative, mixture, or preparation of any part of the plant Cannabis sp., its seeds

25 or its resin; or any compound, mixture, or preparation which contains any

26 quantity of these substances when cultivated, harvested, processed, produced,

27 transported, dispensed, distributed, sold, possessed, or used in accordance with

UNOFFICIAL COPY 20 RS HB 136/GA Page 4 of 118 HB013610.100 – Kentucky Medical Cannabis Legalization

1 Sections 1 to 30 of this Act;

2 (19) “Minor” means a person less than eighteen (18) years of age;

3 (20) “Pharmacist” means the same as in KRS 315.010;

4 (21) “Practitioner” means a physician who is authorized to prescribe controlled

5 substances under KRS 320.240, or an advanced practice registered nurse who is

6 authorized to prescribe controlled substances under KRS 314.042, who is

7 authorized by a state licensing board to provide written certifications pursuant to

8 Section 5 of this Act; 9 (22) “Processor” means an entity licensed under this chapter that acquires raw plant

10 material from a cultivator in order to prepare, trim, manipulate, blend,

11 manufacture, or otherwise modify the raw plant material, and package products

12 containing or derived from the raw plant material for sale to a licensed

13 dispensary; 14 (23) “Processor agent” means a principal officer, board member, employee,

15 volunteer, or agent of a processor;

16 (24) “Producer” means an entity licensed under this chapter that is permitted to

17 operate as and engage in the permitted activities of both a cultivator and

18 processor; 19 (25) “Producer agent” means a principal officer, board member, employee, volunteer,

20 or agent of a producer;

21 (26) “Qualified patient” means a person who has obtained a written certification from

22 a practitioner with whom he or she has a bona fide practitioner-patient 23 relationship;

24 (27) “Qualifying medical condition” means a disease or medical condition that

25 appears on the list of qualifying medical conditions for which a practitioner may

26 provide a patient with a written certification approved by the department

27 pursuant to Sections 3 and 28 of this Act and in accordance with administrative

UNOFFICIAL COPY 20 RS HB 136/GA Page 5 of 118 HB013610.100 – 366 – XXXX GA

1 regulations promulgated thereunder;

2 (28) “Raw plant material” means the trichome-covered part of the female plant

3 Cannabis sp. or any mixture of shredded leaves, stems, seeds, and flowers of the

4 Cannabis sp. plant; 5 (29) “Registry identification card” means a document issued by the department that

6 identifies a person as a qualified patient, visiting qualified patient, or designated

7 caregiver; 8 (30) “Registered qualified patient” means a qualified patient who has applied for,

9 obtained, and possesses a valid registry identification card or provisional

10 licensure receipt issued by the department;

11 (31) “Safety compliance facility” means an entity licensed under this chapter that

12 provides at least one (1) of the following services:

13 (a) Testing medicinal cannabis produced by a cannabis business licensed under

14 this chapter; or 15 (b) Training cardholders and cannabis business agents;

16 (32) “Safety compliance facility agent” means a principal officer, board member,

17 employee, volunteer, or agent of a safety compliance facility;

18 (33) “Seedling” means a cannabis plant that has no flowers and is taller than eight

19 (8) inches; 20 (34) “Smoking” means the inhalation of smoke produced from the combustion of raw

21 plant material when ignited by a flame; 22 (35) “State licensing board” means any of the following:

23 (a) The Kentucky Board of Medical Licensure; and 24 (b) The Kentucky Board of Nursing;

25 (36) “Use of medicinal cannabis” or “medicinal use of cannabis” includes the

26 acquisition, administration, possession, transfer, transportation, or consumption

27 of medicinal cannabis or medicinal cannabis accessories by a cardholder in

UNOFFICIAL COPY 20 RS HB 136/GA Page 6 of 118 HB013610.100 – 366 – XXXX GA

1 accordance with Sections 1 to 30 of this Act. The terms “use of medicinal

2 cannabis” and “medicinal use of cannabis” do not include:

3 (a) Cultivation of marijuana by a cardholder; or 4 (b) The use or consumption of marijuana by smoking;

5 (37) “Visiting qualified patient” means a person who has registered as such through

6 the department as required under this chapter or who possesses a valid registry

7 identification card, or an equivalent document, that was issued pursuant to the

8 laws of another state, district, territory, commonwealth, insular possession of the

9 United States, or country recognized by the United States that allows the person

10 to use medicinal cannabis in the jurisdiction of issuance; and

11 (38) “Written certification” means a document dated and signed by a practitioner,

12 that: 13 (a) States that in the practitioner’s professional opinion the patient may receive

14 therapeutic or palliative benefit from the use of medicinal cannabis;

15 (b) Specifies the qualifying medical condition or conditions for which the

16 practitioner believes that the patient may receive therapeutic or palliative

17 benefit; and 18 (c) Affirms that the practitioner has a bona fide practitioner-patient

19 relationship with the patient

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316 SW Washington Street, Suite 1A
Peoria, Illinois 61602

Phone: (309) 740-4033 || Email:  tom@collateralbase.com


150 S. Wacker Drive, Suite 2400,
Chicago IL, 60606 USA

Phone: 312-741-1009 || Email:  tom@collateralbase.com

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IL 61602, USA
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