Lotteries for dispensary licenses in Kentucky will take place on Nov. 25 (Regions 3-11) and Dec. 16 (Regions 1-2, with separate lotteries for Fayette County and Jefferson County). In total, the state will issue 48 dispensary licenses before the end of the year.
For those selected to hold dispensary licenses, there are significant regulatory requirements that must be met before the business can commence operations. Applicants should already be thinking about how they will meet those requirements so they will be well-positioned to move forward as quickly as possible.
For example, dispensary licensees will need to consider the following:
- Land use approvals: The licensee must obtain all required land use approvals and permits from their local jurisdiction before commencing construction/buildout of the retail location.
- Drive-thru windows and curbside pickup: If the dispensary intends to dispense medicinal cannabis using a drive-thru window or curbside pickup service, the licensee must provide the Office of Medical Cannabis (OMC) with detailed written plans and procedures and obtain pre-approval to implement the plans on site.
- Displays and educational materials: The licensee will need to ensure that product displays comply with all applicable regulations and develop required evidence-based educational materials and product information to provide to all cardholders purchasing medicinal cannabis from the dispensary.
- Limitations on dispensing medicinal cannabis: It will be important for the licensee to properly train all employees on restrictions relating to the dispensary of medicinal cannabis, including complying with any limitations on an individual’s written certification relating to the quantity, form or dosage of medicinal cannabis or medicinal cannabis products. The licensee will also need to train employees on protocols relating to product recalls and messaging to patients.
- Advertising: Dispensary licensees will need to carefully review regulations governing cannabis business advertising, and ensure that all advertising (whether online, in print, on signage or through any other medium) complies with the many applicable restrictions on content and presentation of information.
Prior to the first day of operations, each dispensary licensee will also need to establish a specific set of standard operating procedures (SOPs) and ensure all employees are sufficiently trained on the SOPs. Licensees are required to have these SOPs available on site for review by the regulators upon request.
These required SOPs include, but are not limited to:
- Employment policies and procedures.
- Security, including:
- Staff identification measures and use of employee identification badges;
- Monitoring of attendance of staff and visitors;
- Alarm systems;
- Video surveillance;
- Monitoring and tracking inventory, including use of the Commonwealth’s electronic monitoring system and seed-to-sale tracking system;
- Personnel security;
- Transportation of medicinal cannabis and how to properly secure medicinal cannabis in the event of a traffic collision or transport vehicle malfunction;
- Cash management and anti-fraud procedures;
- Measures to prevent loitering, which shall include signage; and
- Storage of medicinal cannabis and medicinal cannabis products.
- Recordkeeping.
- The process for receiving, handling, transporting, storing, selling and disposing of medicinal cannabis.
- Employee qualifications, supervision and training.
- Workplace safety.
- Waste disposal.
- Maintenance, cleaning and sanitation of facility.
- Investigation of complaints and potential adverse events received from other cannabis businesses, cardholders or medicinal cannabis practitioners.
- Preventing unlawful diversion of medicinal cannabis.
- A recall plan.
- Contamination.
- Maintaining confidentiality of cardholder information, including information and documentation provided by visiting qualified patients.
Dentons will continue to monitor developments regarding the Kentucky Medical Cannabis Program, and assist new cannabis businesses in Kentucky with the planning, implementation and ongoing operations of their cannabis businesses. If your business needs assistance preparing any or all of the SOPs required to operate a dispensary in a compliant manner, please reach out.
