Kentucky Governor Andy Beshear (D) unveiled plans Thursday to use a lottery system to grant initial licenses to companies vying to enter the state’s medical marijuana industry.
Speaking at a news conference, Beshear called the lottery approach a fair way to give all qualified applicants an equal opportunity to receive a license for the program, which is scheduled to launch in January 2025.
Scheduled for next October, the lottery should eliminate any temptation to lobby to “get an advantage in different ways that we don’t want to see,” Beshear said in his weekly news conference, ABC News reported.
“It reduces or eliminates litigation and creates a fairer process, not one where people bid against each other and only then big companies can be part of it,” Beshear said. “But one that gives at least a chance to everyone who can meet the criteria.”
Kentucky will initially issue 48 medical marijuana dispensary licenses, divided into 11 regions of the state, to ensure the shortest possible drive times for Kentuckians with qualifying health conditions, he said Sam Flynnexecutive director of the medical cannabis program.
Each region will be assigned at least four dispensary licenses. Counties will be limited to one dispensary each, except for those that include Louisville and Lexington, which can have two licenses, Flynn said. A limited number of grower and processor licenses will also be issued.
Beshear said limiting the number of licenses is intended to avoid flooding the market with products and outpacing demand, which would ultimately hurt companies and patients.
“You can see this is not about having a dispensary on every corner,” Beshear said. “It’s a limited program that we can monitor and keep the promise we made to do it safely, but also to have access in every region for qualified individuals.”
The program may be expanded with more companies in the future depending on demand and if additional qualifying medical conditions are added, which Beshear has touted.
“This is probably the least you’ll see in the program going forward. But again, it can always go up. Downsizing hurts businesses, it hurts people and it hurts access,” Beshear said. “We’re not off to a great start. Let’s start with a manageable program that, yes, can grow.”
In March of this year, Kentucky became the 38th state in the nation to legalize medical marijuana for patients with debilitating conditions.
Governor Andy Beshear, cabinet photo