KRS 218B.090: Cabinet action on business license application -- Denial -- Procedures

upon approval -- Administrative hearing and judicial review -- Licensed

cannabis business subject to local government regulation.

(1) The cabinet shall:

(a) Acknowledge receipt of an application for a cannabis business license within

fifteen (15) days of receipt;

(b) Provide notification to the cannabis business license applicant as to whether

the application for a cannabis business license has been approved or denie d

within forty-five (45) days of receiving a completed application; and

(c) When reviewing and considering cannabis business applications, prioritize the

review of applications submitted by an individual or entity who is an existing

Kentucky hemp business in good standing with the Kentucky Department of

Agriculture, if they meet the application requirements set forth in this chapter

and administrative regulations promulgated by the cabinet thereunder.

(2) The cabinet may deny an application for a cannabis b usiness license for any reason

that the cabinet, in the exercise of sound discretion, deems sufficient, including but

not limited to:

(a) The applicant failed to submit the materials required by KRS 218B.085,

including if the applicant's plans do not satis fy the security, oversight, or

recordkeeping administrative regulations promulgated by the cabinet;

(b) The applicant falsifies information on the licensure application;

(c) The applicant would not be in compliance with local cannabis business

prohibitions enacted pursuant to KRS 218B.130;

(d) One (1) or more of the prospective principal officers or board members:

1. Has been convicted of a disqualifying felony offense, the provisions of

KRS 335B.020 and 335B.030 notwithstanding;

2. Has served as a principal officer or board member for a cannabis

business that has had its license revoked;

3. Is younger than twenty-one (21) years of age; or

4. Is a medicinal cannabis practitioner; or

(e) 1. For a safety compliance facility, one (1) or more of the prospective

principal officers or board members is a principal officer or board

member of a cultivator, processor, producer, or dispensary licensed to

operate in Kentucky.

2. For a cultivator, processor, producer, or dispensary, one (1) or more of

the prospective principal officers or board members is a principal officer

or board member of a safety compliance facility licensed to operate in

Kentucky.

(3) If a cannabis business license application is approved:

(a) The cannabis business shall, bef ore it begins operations, submit its complete

physical address and the global positioning system coordinates for any

cultivation activities if a physical address or the global positioning system

coordinates for any cultivation activities had not been final ized when it

applied; and

(b) The cabinet shall:

1. Issue a copy of the license that includes the business's identification

number to the approved cannabis business;

2. Provide a licensed dispensary with contact and access information for

the electronic mo nitoring system established pursuant to KRS

218A.202; and

3. Provide notice of licensure approval and issuance to the city and county

in which the cannabis business intends to operate.

(4) If a cannabis business license application is denied, the cabinet s hall notify the

applicant in writing of a license denial and reasons by registered or certified mail at

the address given in the application or supplement. The applicant may, within thirty

(30) days after the mailing of the cabinet's notice, file a written request for an

administrative hearing on the application. The hearing shall be conducted on the

application in compliance with the requirements of KRS Chapter 13B. Final orders

of the cabinet after administrative hearings shall be subject to judicial revi ew as

provided in KRS 13B.140. Jurisdiction and venue for judicial review are vested in

the Circuit Court of the county in which the applicant's business would be located.

(5) Notwithstanding any provision of law to the contrary, a cannabis business licens ed

by the cabinet pursuant to this chapter shall be subject to and required to comply

with:

(a) Any subsequent action that may be taken pursuant to KRS 218B.130(2)(a) by

the local government within whose territory the cannabis business is licensed

to operate if such action is taken prior to January 1, 2025, including but not

limited to the prohibition of cannabis business operations within the territory

of the local government; and

(b) Any local zoning ordinances and regulations that may be adopted pursuant to

KRS 218B.130(2)(b) by the local government within whose territory the

cannabis business is licensed to operate.