The rollout of Kentucky Medical Cannabis is facing serious challenges as dispensary applicants question whether the state's selection process was fair or even constitutional. Several cannabis companies have filed lawsuits against the Office of Medical Cannabis, arguing that the process to award licenses under the Kentucky Medical Cannabis program was flawed and lacked transparency.
In 2023, Governor Andy Beshear signed a bill to legalize Kentucky Medical Cannabis, marking a historic step for the state. The Office of Medical Cannabis began accepting applications in 2024 for dispensaries, cultivators, and processors. Over 4,000 applications were submitted, but only 48 winners were selected through a lottery system managed by the Kentucky Lottery. The method quickly drew criticism, sparking a heated debate about whether Kentucky Medical Cannabis was being rolled out fairly.
Attorney Greg Troutman, representing several denied applicants, claims the lottery system violated the state constitution. He argues that the Cabinet for Health and Family Services, which oversees the Office of Medical Cannabis, exceeded its authority by deciding how to distribute Kentucky Medical Cannabis licenses. According to Troutman, those decisions should have been made by the General Assembly, not by an executive agency.
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