Medical Cannabis Companies Sue Kentucky Over Licensing Process 

Medical cannabis companies based in Jefferson County, Kentucky, have filed a lawsuit against the commonwealth and former Office of Medical Cannabis (OMC) Executive Director Sam Flynn, claiming the rollout of the state’s medical cannabis program is unconstitutional, the Courier-Journal reports. The lawsuit claims the Kentucky General Assembly illegally delegated authority to create the medical cannabis licensing districts and license limits to the Cabinet for Health and Family Services.   

Attorney James Gregory Troutman, who is representing a group of investors that had hoped to secure medical cannabis processing and dispensary licenses, told the Courier-Journal that the plaintiffs believe the medical cannabis license allocation process “was a function that … the legislature only” could address. 

“We’re taking issue with the way the legislature failed to be the ones who decided how the state would be carved up for licensing purposes into various regions and how those licenses would be allocated within the regions.” — Troutman to the Courier-Journal 

If successful, Troutman says, lawmakers would have to address the issue during the next legislative session, where they would “have to adopt an expansion or amendment” to the 2023 medical cannabis law “to specifically address how the state gets carved up” for industry licensing. 

OMC spokesperson Kendra Steele told the Courier-Journal that the general assembly gave the agency the duty to create a fair licensing structure in 2023, which she described as “completely open, transparent and viewable to the public.” 

“We are confident that any court will uphold the process,” she said. 

The lawsuit asks the court to pause all operations for currently licensed medical cannabis businesses and issue licenses to the plaintiffs, who were not chosen to receive licenses during the 2024 lotteries.