The secrecy surrounding the awarding of medical marijuana dispensary licenses in Kentucky is escalating tensions and raising serious questions about transparency and fairness. Governor Andy Beshear’s administration has staunchly refused to publicly disclose the names of the over 2,800 applicants for these licenses, despite announcing the winners of the first round of lotteries last month.
This refusal, which follows a denied public records request from Kentucky Public Radio, cites the application records as “preliminary” and therefore exempt from disclosure under Kentucky’s open records laws. This justification has been met with sharp criticism, particularly given the state’s release of the names of the 36 successful applicants from the initial nine regions. The remaining secrecy only adds fuel to the fire surrounding the perceived dominance of out-of-state companies in Kentucky’s burgeoning medical cannabis market.
The central concern revolves around Arkansas-based Dark Horse Cannabis, which submitted over 100 applications and secured multiple licenses. This aggressive strategy has prompted worries that Kentucky’s local farmers and businesses are being sidelined in favor of large, out-of-state corporations. Critics point to a perceived lack of level playing field, arguing that the opaque application process favors well-funded, established entities over smaller, local competitors.
Adding to the controversy, Kentucky Public Radio, represented by attorney Michael Abate, has appealed the denial of its public records request to the state’s Office of the Attorney General. Abate vehemently criticizes the administration’s decision, stating that the delay in disclosing applicant names until after all lotteries conclude points to a deliberate attempt to avoid public scrutiny. He emphasizes the public’s right to know the details of this significant process, which directly impacts the future of Kentucky’s medical cannabis industry.
Local hemp farmers, already frustrated by their exclusion from the initial cultivator license lottery, have voiced their outrage. They accuse the state of favoring large, out-of-state companies, effectively shutting out local businesses and hindering the growth of a potentially lucrative in-state industry. Governor Beshear, however, has dismissed these concerns, stating that Dark Horse Cannabis used different owners for each application. However, this statement doesn’t address concerns raised by Kentucky Public Radio regarding an investor presentation suggesting Dark Horse Cannabis aims to create a vertically integrated operation in Kentucky – a structure explicitly prohibited by state regulations.
The final lottery for dispensary licenses in regions 1 and 2 (Louisville and Lexington), scheduled for December 16th, will further test the administration’s commitment to transparency. With roughly 1,200 applicants vying for the remaining licenses, the outcome could either alleviate or exacerbate the ongoing concerns regarding the fairness and transparency of Kentucky’s medical marijuana licensing process. The results will undoubtedly be closely scrutinized by the public, media outlets, and legal experts alike, leaving the state’s commitment to fair competition under intense public scrutiny.
