In 2025, medical marijuana will be legal in Kentucky. Gov. Andy Beshear says the legalization of medical marijuana is something the majority of Kentuckians support, and it will provide relief for those suffering from certain medical conditions while also reducing the use of opioids.
For now, only people with cancer, PTSD, epilepsy, chronic pain, and nausea are eligible to receive medical marijuana cards. Despite the statewide legalization, counties and cities around the state can determine whether they want to welcome marijuana production facilities and dispensaries into their communities.
As the state begins to receive its first applications for medical marijuana businesses, many Northern Kentucky communities are now deciding how to proceed.
Local governments can create restrictions on where marijuana businesses can be located or prohibit them from operating entirely. Locally, several cities have already decided to pass ordinances to address the issue of whether to be a potential home for one of the area's first legal marijuana distributors.
Counties can pass ordinances and opt in to allow marijuana businesses to operate, or can choose to opt out and prohibit those businesses from entering the county. Even if a county decides to opt-out, cities within the county can still pass ordinances of their own to allow medical cannabis companies to open up shop within corporate city limits.
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Cities can also pass resolutions to put the issue on the ballot this November. So far, several cities in Northern Kentucky have taken this route.
Kentucky will issue just 48 dispensary licenses across 11 regions in the Commonwealth for 2025. Four dispensaries will be allowed to operate in each region. The companies that can receive a state license to sell medical cannabis will be determined through a lottery system with the first lottery set for October.
The economic impact
Darrin Wilson, associate professor of public administration at Northern Kentucky University says these votes in November and the upcoming medical license lottery will significantly impact these cities' economic futures. Wilson says being home to one of the first marijuana dispensaries in Kentucky could provide an area with an economic boost and give it a big headstart in the recreational marijuana business if recreational use is eventually legalized.
"Because of the limited number of licenses across the state, you're going to see people traveling from outside of that county to come in to purchase and they may stick around and buy other things," Wilson told WVXU.
Counties and cities that have already decided to opt out can choose to opt in at a later date. But that initial choice could have a lasting effect on the area's ability to attract marijuana business down the line.
Kenton County
The county has yet to make an official decision but is considering an ordinance to prohibit cannabis businesses.
Lakeside Park and Villa Hills have notified the state government that they intend to opt out. No cities in Kenton County have passed an ordinance to welcome marijuana businesses or put the issue on the ballot in November just yet.
Boone County
Boone County decided to opt out in June. The city of Union became the first in the area to opt out, passing an ordinance a day before the county's.
Florence will allow voters to decide whether they want medical cannabis in the city this fall.
Campbell County
In early June, the county passed an ordinance to prohibit marijuana operations.
A few weeks later, the city of Dayton passed an ordinance permitting all medical cannabis operations in the city and is looking to its planning commission to recommend areas where potential marijuana facilities could be located. Dayton is the first and only city in Northern Kentucky to notify the state it's opting in so far.
The city councils of Bellevue, Southgate, and Wilder have all passed resolutions to let voters decide whether to allow dispensaries and production facilities within their city limits.
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What's next
Kentucky's Medical Cannabis Program began accepting applications from those who are looking to open marijuana production or dispensary businesses July 1. The application window closes August 31.
If approved and selected in the lottery, future cannabis companies could be up and running as soon as late January, according to Wilson, but the supply of marijuana might not be enough to meet the potential demand.
"Really, the biggest question is the cultivators," Wilson said.
Sixteen cultivators will be allowed to operate initially in Kentucky, and much like the dispensaries, they won't find out if they can begin doing business until the state lottery in October. This likely won't give them enough time to build up enough product.
"It only gives them a couple of months to buy the plans, grow them, cultivate them, process them, and then get them to retail stores. We should expect a very limited quantity of cannabis available across the state of Kentucky," Wilson said.
The Kentucky Office of Medical Cannabis says all local governments are considered to be opted in unless they notify the state otherwise. Counties and cities that pass an ordinance choosing to opt in can establish their own rules and restrictions on how marijuana business can operate.
