What’s Next for Kentucky’s Medical Cannabis License Holders? Navigating the Path to Success
With the announcement of Kentucky’s medical cannabis license holders, the foundation is set for the state’s new industry to take shape. However, as Brad Clark, founder of KY Cannabis Law Group, explained in a recent FOX 56 interview, there are still several steps ahead before businesses can open their doors and products reach patients.
For license holders, this is both an exciting and critical time. Success will depend on effective relationship-building, navigating regulations, and strategic planning. Here’s what lies ahead and how to prepare.
Building Relationships and Establishing Contracts
One of the first steps for license holders is forming strong relationships with partners across the industry. Whether you’re a grower, processor, or dispensary owner, these connections will shape your business operations and product offerings.
As Brad noted, “People are negotiating contracts, so stores are going to be trying to talk to growers, and processors are going to be talking to growers. And we’re trying to figure out what the product mix is going to be that’s available.”
Why this matters:
· Dispensaries need to secure reliable sources for products, including flower, edibles, and other medical cannabis forms.
· Processors must align with growers who can supply consistent, high-quality raw materials.
· Cultivators will need agreements with both processors and dispensaries to ensure their products reach the market.
Starting these conversations early can help businesses establish a competitive edge and streamline operations once the market launches.
Zoning and Location Challenges
While most license holders now have a clear path forward, zoning challenges remain for some. Dispensaries in municipalities that opted out of the program or counties exceeding the license cap will need to relocate and gain regulatory approval for new sites. Brad described this process as a hurdle but emphasized that it’s not insurmountable.
Steps to address zoning issues:
1. Identify potential locations that comply with Kentucky’s zoning laws, such as those distanced from schools, daycares, and residential areas.
2. Work with regulators to secure approval for the new site.
3. Address any permitting requirements before beginning your build-out.
Proactively addressing these steps will minimize delays and keep your business on track for launch.
January Orientation: A Roadmap for License Holders
Kentucky regulators have scheduled a statewide orientation for all medical cannabis license holders in January. This meeting will likely serve as a crucial opportunity to:
· Gain clarity on final regulations and operational requirements.
· Network with other license holders to explore partnerships and collaborative opportunities.
· Ask questions and address any outstanding uncertainties about the program.
For businesses, attending this orientation prepared with questions and goals will help make the most of this key milestone.
Potential Vape Product Restrictions: What Could Change?
Brad highlighted a potential challenge that could arise from this year’s bill targeting vape store products. The language in the legislation might limit certain cannabis offerings, such as cartridges or vaporizer products. Businesses should stay informed about how these regulations might evolve and consider diversifying their product lines to include edibles, topicals, and other forms to mitigate potential restrictions.
Dispensary License Limits: Strategic Challenges
With only one dispensary allowed per county (except Fayette and Jefferson Counties, which allow two), competition for prime locations is high. Businesses holding dispensary licenses should carefully evaluate factors such as:
· Proximity to patient populations.
· Accessibility for rural or underserved areas.
· Local zoning and regulatory compliance.
For growers and processors, understanding the limited number of dispensaries can help inform strategies for product distribution and pricing.
Preparing for Launch: SOPs, Build-Outs, and Timelines
Getting a medical cannabis business up and running involves more than just securing a location or negotiating contracts. Comprehensive Standard Operating Procedures (SOPs) are critical to ensure compliance, streamline workflows, and meet Kentucky’s strict regulations.
Key considerations for building your business:
· Develop SOPs for every aspect of your operations, from cultivation practices and processing protocols to dispensary procedures and customer care.
· Plan your build-out to align with regulatory requirements, including security measures, layout designs, and compliance monitoring systems.
· Anticipate the cultivation timeline: Growing, harvesting, and testing plants takes time. For many growers, products may not be ready for sale until mid-2025.
As Brad noted in the interview, while some businesses may be operational early in the year, others will require additional time to navigate these steps. Setting realistic expectations now can help businesses avoid unnecessary pressure or mistakes.
Looking Ahead: Early Action is Key
Kentucky’s medical cannabis program represents an incredible opportunity, but it’s also a tightly regulated space. Establishing your business successfully will require strategic planning, proactive relationship-building, and adherence to detailed compliance standards.
The takeaway:
The work you do now—whether finalizing contracts, addressing zoning challenges, or refining operational procedures—will lay the groundwork for long-term success.
How We Can Help
Navigating Kentucky’s medical cannabis industry is complex, but you don’t have to do it alone. At KY Cannabis Law Group, we specialize in:
· Contract negotiation between growers, processors, and dispensaries.
· Developing comprehensive SOPs for compliance and efficiency.
· Guiding businesses through zoning, permitting, and regulatory approval.
· Strategic planning to position your business for success from day one.
Contact us today at (859) 474-0001 to learn how we can support your medical cannabis business at every step of the journey.