As medical cannabis licensees continue to build out facilities and plan for their operations in Kentucky, business owners are navigating a complex regulatory landscape. There are numerous requirements and restrictions that are unique to cannabis. However, there are also generally applicable (not just cannabis specific) licensing and registration requirements that cannabis businesses must comply with like any other agricultural and/or commercial business.
Identifying the full set of laws and regulations that will govern the cannabis business’s operations is critical in order to remain in full compliance. This article provides an overview of some of the generally applicable requirements businesses should keep in mind.
Requirements Relating to Pesticide Use
One of the most important regulatory areas for cannabis cultivators will be the use of pesticides. The rules governing pesticide application in Kentucky are not unique to cannabis; they are also part of a broader framework designed to protect public health and the environment.
All pesticides distributed and used within Kentucky must be registered with the Kentucky Department of Agriculture (KDA). The registration process ensures that only approved products, which have undergone safety and efficacy evaluations, are available for use.
When selecting pesticides for use on cannabis crops, cultivators must ensure that the product label:
- Allows for use on unspecified crops and/or plants, or expressly permits use on Cannabis sativa .
- Permits application within indoor growing spaces, such as greenhouses or enclosed facilities.
- Does not prohibit use on crops or plants intended for human consumption.
The Kentucky Office of Medical Cannabis (OMC) issued guidance specific to the use of pesticides and other chemical applications for use in growing and cultivating medical cannabis, available here. The guidance provides a list of insecticide, fungicide, and miticide products that meet these requirements for quick reference, but the list is not exhaustive and can also change over time. Medical cultivators and producers are responsible for determining which pesticides can be used in accordance with the respective product label.
Pesticide Applicator Licenses
Any individual that will be applying pesticides in a commercial setting must be licensed by the KDA under KRS Chapter 217B. Again, this licensing requirement is not unique to cannabis; it applies to all commercial agricultural operations, landscaping businesses, and pest control companies. The licensing process involves a required examination to ensure applicators understand safe handling, application techniques, and regulatory compliance.
For cannabis businesses, this means that all staff responsible for pesticide application must hold a valid applicator license. OMC published a “How To Guide for Kentucky Pesticide Applicator Certification Card” showing what a correct certification will look like. Failure to comply can result in significant penalties, including fines and potential suspension of business operations.
Record-Keeping and Compliance
Maintaining accurate records of pesticide use is another requirement shared with other agricultural sectors. Businesses must document the products used, application rates, dates, and the individuals responsible for application. These records must be readily available for inspection by regulatory authorities.
Scale Certifications
Accurate measurement is fundamental to fair commerce, and Kentucky law mandates that all scales used in commercial transactions be inspected and certified by the DOA’s Weights and Measures Program. This requirement applies to a wide range of industries, including grocery stores, manufacturing, and, importantly, cannabis businesses. OMC issued a “How To Guide for Kentucky Scale Certification” that provides an overview of applicable requirements.
Routine Calibration and Inspection
Cannabis cultivators and processors must routinely calibrate, check, and inspect all scales, balances, and other measurement devices used in their operations. This process ensures that all products are weighed accurately, protecting both the business and its customers from discrepancies.
The DOA provides inspection and certification services. Businesses must:
- Contact the Weights and Measures Program to schedule an inspection.
- Ensure that all scales are accessible and in good working order for the inspection.
- Pay any applicable fees associated with certification.
Once a scale passes inspection, it receives an annual certification decal, which must be displayed on the instrument. This decal is valid for a period determined by the DOS and must be renewed as required.
Maintenance and Documentation
In addition to annual certification, cannabis businesses are required to:
- Maintain detailed logs of equipment maintenance, cleaning, and calibration.
- Ensure that all certification and maintenance records are readily accessible for review by regulatory authorities.
- Re-calibrate scales as needed, particularly if they are moved, repaired, or show signs of inaccuracy.
These requirements are standard across industries that rely on precise measurement, reflecting a commitment to transparency and consumer protection.
Occupational Health and Safety
Like all employers, cannabis businesses must adhere to Occupational Safety and Health Administration standards. This includes providing a safe working environment, training employees on hazard communication, and maintaining records of workplace injuries and illnesses. OMC issued a detailed Kentucky Medical Cannabis Industry Guide to Worker Safety and Health, tailored to this industry, that every cannabis business in the state should review. Licensees must also develop their own standard operating procedures for workplace safety, including conducting safety checks, maintaining sanitation, and providing adequate hand-washing and restroom facilities and adequately train employees. Cannabis businesses must also obtain and maintain workers’ compensation insurance for all employees and pay all required employer contributions to the Kentucky Office of Unemployment Insurance.
Environmental Protection
Cannabis operations, particularly those involving cultivation and processing, must comply with environmental regulations related to water use, waste disposal, and air quality. These requirements are enforced by state and federal agencies and are consistent with those imposed on other agricultural and manufacturing businesses.
Business Licensing and Taxation
All businesses operating in Kentucky, including those in the cannabis sector, must obtain appropriate business licenses, register with the Secretary of State, and comply with state and local tax obligations. This includes collecting and remitting sales tax where applicable and maintaining accurate financial records.
Conclusion
Operating a cannabis business in Kentucky requires careful attention to a broad spectrum of regulatory requirements, some of which are shared with other industries. Staying informed about regulatory updates and maintaining robust internal compliance processes are essential strategies for long-term success in the evolving medical cannabis market. By recognizing the overlap between cannabis regulations and those governing other sectors, business owners can leverage best practices and resources developed across industries, positioning their operations for sustainable growth as well as regulatory compliance. If your business would like any further guidance on this topic, please reach out to a member of our team.
