Obedio Update: Kentucky Provides Permit Fee and Buffer Zone Exemption for Early Retail Registrants

Key Requirements:

• Product Registration: Only approved cannabinoid products registered with the Kentucky Department for Public Health may be sold.
• Retailer Permit: Retailers of adult-use cannabinoid products must obtain a permit from the Cabinet for Health and Family Services. The annual fee is $2,000.
• Age Restriction: Employees involved in the sale of adult-use products must be at least 21 years old unless certain requirements for 18 year old employees are met. Sales to anyone under 21 are prohibited.
• Location Restriction: Retail establishments selling adult-use products cannot be located within 1,000 feet of a school (elementary, middle, or high).
• Product Restrictions: Whole hemp buds, ground hemp floral/leaf material, and any hemp product with a total delta-9 THC concentration exceeding 0.3% are prohibited for retail sale.
• Labeling and Packaging: Products must be packaged and labeled according to 902 KAR 45:021, Section 3.
• Certificate of Analysis: Retailers must have a valid certificate of analysis available for each product.
• Recordkeeping: Retailers must maintain records of wholesale product purchases, including supplier information.
• Registration: Businesses that ship or deliver cannabinoid products directly to Kentucky residents must be registered under this section.
• Inspections: Retail establishments are subject to inspection by the cabinet.
• Enforcement: Non-compliance may result in product seizure, fines, permit suspension, or revocation.

Exemptions:

• Retailers registered with the department before December 31, 2024, are exempt from the permit fee until their annual renewal date.
• Retailers registered before December 31, 2024, are exempt from the 1,000-foot location restriction.

Important Notes:

• Food service establishments may only offer pre-packaged, registered adult-use ingestible cannabinoid products.
• Adult-use cannabinoids cannot be added to food products at food service establishments.
• Non-intoxicating cannabinoids may be added to food products prior to retail sale, provided they are from an approved source and accompanied by a valid certificate of analysis.
• A food service establishment must report adverse events related to the sale of cannabinoid products within 24 hours.

Contact:

Krista Quarles, Policy Analyst Office of Legislative and Regulatory Affairs 275 East Main Street 5 W-A, Frankfort, KY 40621 Phone: 502-564-7476 Email: CHFSregs@ky.gov