FRANKFORT, Ky. — It has begun.
Since medical marijuana was signed into law in Kentucky well over a year ago, there has been a lot of interest to try to capitalize on it.
Monday, the portal opened to apply for one of the limited business licenses.
"You have to submit a lot of documents and information," Attorney Kristin McCall said.
She's part of a team at Dentons Law Firm to help clients start cannabis businesses in the state.
Dentons has led the way for businesses in other states where marijuana, both medical and recreational, has been legalized.
McCall points out all the paperwork to file would likely be overwhelming without legal services like Dentons'.
"You have to submit a site plan for your property for a secured location, you have to submit operational plans that comply with complex regulations, you have to submit a financial plan."
A guide for all that is required can be found here.
What's at stake are licenses for only 16 cultivators, 10 processors and 48 dispensaries for the entire commonwealth of Kentucky.
There is no limit on safety compliance facilities, which will test medical marijuana for purity and any contamination.
"They're doing an initial limited license round now," McCall said.
Application fees run between $3,000 to $20,000, depending on the size of the facility, and those fees are non-refundable.
On top of that, applicants must prove they have enough capital to run a cannabis business.
For example, a Tier I cultivator must show access to at least $50,000 while a dispensary must have at least $150,000 in available capital.
Applicants must also pick whether they want to operate a cultivation facility, be a processor or sell medical marijuana at a dispensary.
However, on the cultivation side, they can apply for a license for each of the size categories: Tier I, Tier II, or Tier III.
A license for the largest grow facility, Tier IV, is not yet available.
During the application process, the Kentucky Medical Cannabis Program has 15 calendar days to acknowledge receipt of an application.
Then it could take as many as 45 calendar days more to learn if an application is approved or denied.
If there is a problem with an application, such missing paperwork, the applicant will be notified and there will be a 10 calendar day "Curing of deficiencies" period to make corrections.
"But it's important to note that there are some components of the application that take a substantial amount of time to obtain or to develop," McCall said. "Such as sufficient capital or making sure that you have a qualified property with right title and interest in that property, so there are some deficiencies that might not be able to be cured in that 10 day period."
McCall says applicants need to get it right, but shouldn't rush to get paperwork filed on day one.
The portal does not close until August 31.
"Technically, the regulators can amend the regulations or issue further guidance on the licensing regulations any time in July, so it actually might be more advantageous for businesses to wait until later in July or until August to file their application."
If there are more approved applications than the number of available licenses, the program will hold a lottery in October to select who will be awarded a license.
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