The Kentucky Legislature introduced SB 80 which legalizes recreational marijuana and establishes a regulatory framework for the licensing and oversight of marijuana cultivators, retailers, processors, testing labs, and on site consumption facilities by the Department of Cannabis Control. The legislation requires the Department to adopt rules implementing recreational marijuana within 6 months of the laws effective date.
Below are 5 things that cannabis businesses should know about Kentucky’s recreational marijuana bill.
-
Applicants who are residents of Kentucky for the immediately preceding 3 years will receive priority over other applicants in any competitive application process.
-
Applicants can obtain an on site consumption license, which allows a retail store to provide an area where customers can consume purchased marijuana products.
-
A municipality may prohibit cannabis businesses after asking voters questions related to cannabis during a regular election.
-
The state will charge an application fee of $2,000 and a licensing / renewal fee of $5,000.
-
Cultivators pay a 10% excise tax on sale of cannabis flowers; 5% on the sale of plant parts other than the flower; and 8% on the sale of immature plants.