Purpose. It is the purpose of this chapter to regulate medical cannabis businesses in order to promote the health, safety, and general welfare of the citizens of the city, and to establish reasonable and uniform regulations to prevent the deleterious secondary effects of medical cannabis businesses within the city.
(Ord. O-22-2024, passed 11-19-24)
For purposes of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
“ADMINISTRATOR.” The Director of Administration/City Administrator or his or her designee.
“CITY.” The City of Florence, Kentucky.
“CULTIVATOR.” An entity licensed under KRS 218B.080, KRS 218B.085, and KRS 218B.090 and is generally described as an entity that acquires, processes, plants, cultivates, harvests, trims or stores cannabis.
(1) Cultivator, Tier I. Shall not exceed an indoor growth area of 2,500 square feet.
(2) Cultivator, Tier II. Shall not exceed an indoor growth area of 10,000 square feet.
(3) Cultivator, Tier III. Shall not exceed an indoor growth area of 25,000 square feet.
(4) Cultivator, Tier IV. Shall not exceed an indoor growth area of 50,000 square feet.
“DISPENSARY.” An entity licensed under KRS 218B.080, KRS 218B.085, and KRS 218B.090 and is generally described as a retail establishment where cannabis products are sold.
“LICENSEE.” A person or medical cannabis entity that holds a current City of Florence Business license.
“MEDICAL CANNABIS ENTITY.” A duly licensed and/or applicant applying to become a licensed medical cannabis cultivator, dispensary, processor, producer, or safety compliance facility as authorized by KRS 218B.080, KRS 218B.085, KRS 218B.090 and 915 KAR Chapter 1, and/or these regulations.
“PERSON.” Individual, proprietorship, partnership, corporation, association, or other legal entity.
“PROCESSOR.” An entity licensed under KRS 218B.080, KRS 218B.085, and KRS 218B.090 and is generally described as a combination of a cultivator and a producer.
“PRODUCER.” An entity licensed under KRS 218B.080, KRS 218B.085, and KRS 218B.090 and is generally described as an entity where the processing of raw plant material is turned into final products.
“SAFETY COMPLIANCE FACILITY.” An entity licensed under KRS 218B.080, KRS 218B.085, and KRS 218B.090 and is generally described as a testing facility.
(Ord. O-22-2024, passed 11-19-24)
The classifications for medical cannabis businesses shall be as follows:
(A) Cultivator, Tier I.
(B) Cultivator, Tier II.
(C) Cultivator, Tier III.
(D) Cultivator, Tier IV.
(E) Dispensary.
(F) Processor.
(G) Producer.
(H) Safety compliance facility.
(Ord. O-22-2024, passed 11-19-24)
(A) Zoning approval. No person or entity shall operate a medical cannabis business in the city without first obtaining a Conditional Use Permit (C.U.P.) from the Florence Board of Adjustment and Zoning Appeals or a concept development plan application approval from the City Council.
(B) Business licenses. No person or medical cannabis entity shall operate in the city unless the person or entity possesses a local operating license pursuant to this chapter and a valid cannabis business license from the Commonwealth of Kentucky.
(C) City occupational license application. An applicant for a cannabis business license shall file in person at the office of the City Administrator a completed application made on a form provided by the City Administrator.
(1) Types of applications for cannabis business licenses. The city shall accept the following types of applications for cannabis business licenses:
(a) Initial application; and
(b) Renewal application.
(2) Applicant consent. By submitting an initial or renewal application to the city, an applicant consents to any investigation of the applicant’s ability to meet the requirements of KRS Chapter 218B, 915 KAR Chapter 1, and the Boone County Zoning Regulations.
(3) Application acceptance and action. An application for an initial license or renewal license shall not be considered to be complete and shall be rejected by the city unless:
(a) Payment of the applicable fee shall be submitted with the application; and all required information for each section of the application, including attachments shall be submitted to the city and be acted upon within 30 days of the from the time the completed application is received.
(b) An application submitted under this administrative regulation shall contain the following statement acknowledged by the applicant: “A false statement made in this application is punishable under the applicable provisions of KRS 523.100.”
(4) Initial license application fees. An applicant for an initial cannabis business license shall pay the applicable application fee by credit card or automated clearing house (ACH) transfer at the time of application submission to the city. The initial application fee is nonrefundable. The initial license application fees shall be:
(a) Tier I Cultivator: $1,500;
(b) Tier II Cultivator: $5,000;
(c) Tier III Cultivator: $10,000;
(d) Tier IV Cultivator: $15,000;
(e) Processor: $2,500;
(f) Producer: $2,500 plus the applicable cultivator tier application fee;
(g) Dispensary: $2,500; and
(h) Safety compliance facility: $1,500.
(5) Initial applications for cannabis occupational licenses.
(a) An initial license is valid for one year from the date of issuance shown on the city occupational license.
(b) An applicant shall complete the application form provided by the City Administrator.
(c) An applicant shall submit an initial license application to the city in the manner prescribed by the application instructions.
(d) An applicant shall apply for a separate license for each location where it intends to operate a cannabis business.
(e) Any person requesting an initial license shall submit the following in the initial license application:
1. The legal name of the person requesting a license and the person’s business type, any trade or doing business as (OBA) name, mailing address, federal tax identification number, web site (if any), email address, and phone number of the proposed cannabis business. If a medical cannabis entity’s business address is different from the physical location of the proposed cannabis activity, both addresses and related contact information shall be provided for each location. Where applicable, the person shall file a certificate of good standing issued by the Kentucky Secretary of State dated no more than ten days earlier than the date of the application being filed by the applicant;
2. The type of cannabis business license requested;
3. If the proposed medical cannabis entity and/or person filing for a cannabis license is a business entity, please provide a copy of that entity’s articles of incorporation, articles of organization, partnership agreement, and/or other organizational documents as the case may be;
4. Proposed location of cannabis business activities, including the physical address of the proposed cannabis business as well as:
a. A copy of the deed to the real estate where the medical cannabis entity proposes to conduct business. If the real estate where the proposed medical cannabis entity intends to conduct business is not owned by the medical cannabis entity, provide a copy of the lease evidencing the medical cannabis entity has authority to use the proposed location as a medical cannabis entity for a period equal to or greater than that term for which the applicant seeks a license; and
b. A site plan and/or architectural floor plan describing the interior and exterior detail for the proposed medical cannabis entity.
5. The name, address, date of birth, and curricula vitae or resume of each principal officer and board member of the proposed cannabis business as well as any additional information required by the city;
6. Disclosure of any individual or business entity with an ownership interest of at least 10% equity or similar interest in the proposed cannabis business and each identified individual or entity’s ownership percentage.
7. Disclosure of any parent company or parent individual that has an ownership interest in the proposed cannabis business and each identified individual or entity's ownership percentage.
8. A document showing the ownership organizational structure of the proposed cannabis business;
9. The name and address of any individual or entity providing financial support to the proposed cannabis business that are not involved in the day-to-day operations beyond providing financial resources.
10. The name and address of any physician or advanced practice registered nurse that has an ownership or investment interest in or compensation agreement with the proposed cannabis business.
11. Disclosure of whether any principal officer or board member of the applicant has been convicted of a felony criminal offense, and if so, a description of each felony offense;
12. Disclosure of any instances in which a business or not-for-profit entity that any of the applicant’s board members managed or served on the board of was convicted, fined, censured, or had a registration or license suspended or revoked in any administrative or judicial proceeding;
13. If applicable, documentation that the applicant is capable of successfully establishing and operating a cannabis business in the city, including:
a. Demonstrated experience establishing and operating a for-profit or nonprofit organization or other business within Kentucky or any other
jurisdiction, and the nature of the business conducted by the organization;
b. Any history relating to receipt of a similar license or other authorization in other jurisdictions, including provisional licenses, suspensions, revocations, or disciplinary actions to include civil monetary fines or warnings; and
c. Any history of response to suspensions, revocations, disciplinary actions, civil monetary fines, or warnings imposed relating to any similar license or other authorization in another jurisdiction, and the plans of correction or other responses made to those actions.
14. A description of the duties, responsibilities, and roles of each principal officer, board member, employee, and any other individual or entity with a financial interest in the proposed cannabis business who are not involved in the day-to-day operations of the business;
15. A timeline showing the steps and estimated amount of time the applicant shall take to begin cannabis business activities in the city;
16. A summary of the intended plan of operation that describes, at a minimum, how the applicant’s proposed cannabis business operations shall address:
a. Security;
b. Employee qualifications, supervision, and training;
c. Transportation of medicinal cannabis;
d. Storage and labeling of medicinal cannabis;
e. Inventory management;
f. Recordkeeping;
g. Preventing unlawful diversion of medicinal cannabis; and
h. Workforce development and job creation.
17. The name, mailing address, business title, phone number, and email address of the primary contact for the application as well as the name, address, and email address of any entity or individual who assisted the applicant with preparing the application;
18. Documentation of any management service agreement in place for the proposed cannabis business;
19. A notarized signature page signed by the applicant; and
20. An attestation that:
a. The site of the proposed cannabis business is not within 1,000 feet of an existing elementary or secondary school or a daycare center, 500 feet of a park or playground, 500 feet of a religious assembly facility, 500 feet of a sexually oriented business, or 1,000 feet of existing marijuana dispensary if a new marijuana dispensary is proposed. For the purpose of this administrative regulation, the separation/setback requirement shall be measured in a straight line from the nearest property line of an existing elementary school, secondary school, daycare center, park, playground, religious assembly facility, sexually oriented business, or existing marijuana dispensary to the nearest property line of the applicant’s proposed place of business;
b. The applicant can continuously maintain effective security, surveillance, and accounting control measures to prevent diversion, abuse, and other illegal conduct regarding medicinal cannabis;
c. The applicant has at all times during the application process and has and will at all times during the licensure period comply with all requirements of KRS 218B.010, et. seq., 915 KAR Chapter 1, Boone County Zoning Regulations, and these regulations;
d. The applicant consents to the city verifying information provided in the application with any relevant governmental agency or third party;
e. If issued a license, the applicant shall conduct a criminal background check into the criminal history of each person seeking to be a principal officer, board member, agent, volunteer, or employee of the cannabis business before that person begins work and shall not employ, take on as a volunteer, or have as a board member, principal officer, or agent any person who was convicted of a disqualifying felony offense or is younger than 21 years of age;
f. The applicant consents to reasonable inspections, examinations, searches, and seizures as contemplated by KRS Chapter 218B and 915
KAR Chapter 1. The applicant shall also consent to all reasonable inspections, examinations, searches and seizures by city representatives, including but not limited to, city police, fire, zoning and Code Enforcement Officers;
g. The applicant shall obtain and maintain workers’ compensation insurance for all employees in the Commonwealth and shall pay all required employer contributions to the Kentucky Office of Unemployment Insurance;
h. The applicant shall obtain and maintain commercial general liability insurance for $1,000,000 per occurrence and $2,000,000 per aggregate and commercial automobile insurance for any vehicle used to transport medicinal cannabis or medicinal cannabis products;
i. The applicant shall complete all trainings required by the Cabinet for the proposed cannabis business’s principals, agents, employees, and volunteers;
j. The applicant shall establish any standard operating procedures required by KRS Chapter 218B and 915 KAR Chapter 1 prior to the first date of cannabis business activities in the Commonwealth, including those specific to its cannabis business category. The standard operating procedures that apply to cannabis businesses include:
i. Security;
ii. Recordkeeping;
iii . Employee qualifications, supervision, and training;
iv. Quality assurance;
v. Adverse event reporting and recall;
vi. Waste disposal and sanitation;
vii . Transport-ation of medicinal cannabis;
vii i. Inventory management, including storage and labeling of medicinal cannabis;
ix. Cash management and anti-fraud procedures; and
x. Preventing unlawful diversion of medicinal cannabis.
k. For an applicant seeking a safety compliance facility license, one or more of its prospective principal officers or board members shall not be a principal officer or board member of a cultivator, processor, producer, or dispensary applying to operate in the commonwealth;
l. For an applicant seeking a cultivator, processor, producer, or dispensary license, one or more of its prospective principal officers or board members shall not be a principal officer or board member of a safety compliance facility applying to operate in the Commonwealth;
m. The applicant consents to sharing medicinal cannabis sales data with law enforcement;
n. The applicant shall use the Commonwealth’s designated electronic monitoring system and seed to sale tracking system required by KRS 218B.140 in the manner prescribed by the Cabinet;
o. The applicant has disclosed all individuals and entities with an ownership interest of at least 10% equity or similar interest in the proposed cannabis business as well as any parent companies and parent company individuals with an ownership interest in its proposed cannabis business; and
p. The applicant swears and affirms that all information and documentation provided with the initial license application is true and correct.
6. License renewal fees. An applicant for renewal of a cannabis business license shall pay the applicable annual renewal fee by credit card, check, or ACH transfer at the time of application submission to the city. The annual renewal fee is refundable if the renewal application is denied. The annual renewal fees are:
a. Tier I Cultivator: $1,500.
b. Tier II Cultivator: $5,000.
c. Tier III Cultivator: $10,000.
d. Tier IV Cultivator: $15,000.
e. Processor: $2,500.
f. Producer: $2,500 plus the applicable cultivator tier annual renewal fee;
g. Dispensary: $2,500 and
h. Safety compliance facility: $1,500.
7. Renewal applications for cannabis occupational licenses.
a. A renewal license is valid for one year from the date of issuance shown on the city occupational license. The requirements that a licensed cannabis business shall meet to receive an initial license are continuing requirements to maintain the license. A cannabis business shall continuously comply with the licensing requirements of KRS Chapter 218B and 915 KAR Chapter 1 during the initial licensure period and any subsequent renewal period.
b. The city shall notify each licensee at least 90 calendar days prior to the date the license expires to allow the licensee to begin the renewal process if the licensee so chooses.
c. A medical cannabis entity shall complete the license renewal application form provided by the City Administrator.
d. A license renewal application shall be submitted to the city at least 60 calendar days prior to the expiration of their occupational license. The city shall reject a license renewal application if it is not submitted at least 60 calendar days prior to the expiration of the previously city issued license and shall return the annual renewal fee to the licensee along with written notice of the rejection.
e. A licensee shall submit a license renewal application to the city in the manner prescribed by the application instructions.
f. A licensee shall include the following additional information with a license renewal application:
i. Information regarding any change in ownership, or any initiated, pending, or concluded investigation or proceeding, during the period of the initial license or prior renewal period, by any governmental or administrative agency, including an investigation or proceeding involving theft, loss, or possible diversion of medicinal cannabis by the licensee or from the licensee’s facility;
ii. Information regarding the licensee’s ability to continue with licensed activities, including any staffing issues, delays, medicinal cannabis shortages, medicinal cannabis product recalls, location issues, and financial issues that occurred since the license was issued; and
iii . The licensee’s history of compliance with KRS Chapter 218B and 915 KAR Chapter 1, including a summary of any noncompliance and corrective action taken during the current and any previous licensing period or a statement indicating that the licensee has not violated KRS Chapter 218B or 915 KAR Chapter 1 as of the date the renewal application is submitted.
g. The city shall acknowledge receipt of a renewal license application within 15 calendar days of submission by the applicant. The city shall review each application to determine whether the application is complete. If the city determines an application is not complete, the city shall provide written notice to the applicant of the identified deficiencies in the application. The applicant shall have ten calendar days from the date of the deficiency notification to cure the identified deficiencies and provide any missing information or documentation to the city in the manner prescribed by the city. If the applicant fails to cure any deficiency within ten calendar days from the date of the deficiency notification, the city shall reject the application as incomplete.
h. If the city determines that a license renewal application is lacking sufficient information upon which to make a renewal determination, the city shall notify the licensee in writing of the factors that require additional information and documentation. The licensee shall have ten calendar days from the date of the notice to provide the requested information and documentation to the city. A licensee’s failure to provide the requested information to the city by the deadline shall be grounds for denial of the license renewal application.
i. The city may conduct an onsite inspection of the licensee’s facilities and records to assist with determining continuing compliance with KRS Chapter 218B and 915 KAR Chapter 1.
j. An existing cannabis business license is immediately invalid upon expiration if the licensee has not filed a license renewal application and paid the required renewal fee in accordance with this administrative regulation. If a licensee properly submits a timely renewal application with applicable renewal fee, the city may extend its existing license from the date the existing license expires until the city can complete its renewal application review and issue a determination.
(Ord. O-22-2024, passed 11-19-24)
(A) If, at any time, a medical cannabis entity is subject to any enforcement action by any federal agency or the Commonwealth of Kentucky, the medical cannabis entity must immediately notify the city and provide any relevant information or documentation requested by the city.
(B) If, at any time, a medical cannabis entity or an employee thereof has a reasonable belief that an actual loss, theft, or diversion of medical marijuana or currency over $100 has occurred, the medical cannabis entity must notify the Police Department, and such notification shall be provided no later than 24 hours after the discovery of the loss, theft, or diversion.
(C) If at any time, any information in a medical cannabis entity’s local business license changes, the medical cannabis entity must immediately notify the city.
(D) If, at any time, the city becomes aware that a medical cannabis entity possessing a local business license has engaged in, is engaged in, or is about to engage in any act or practice declared to be prohibited by these regulations or any other local, state, or federal law, with the exception of acts that are permitted under state law but are federal violations stemming from the classification of medical marijuana as a controlled substance under 21 U.S.C §812(c) the City Administrator may do any of the following:
(1) Refer such violations to the Commonwealth of Kentucky and/or the appropriate law enforcement agency;
(2) Issue a warning to the medical cannabis entity, which may include possible corrective action(s);
(3) Suspend the license and require any violations to be resolved and corrective actions to be taken as conditions to the reinstatement of the suspended license; or
(4) Revoke the license.
(E) A warning, suspension, or revocation issued by the city under this section shall be served upon the medical cannabis entity at the address for which their business license was granted, by professional service, by certified mail, or by a posting in a conspicuous location at the address of the medical cannabis entity on record with the city.
(F) Notice by certified mail shall be effective upon delivery. In the event that notice by certified mail is retuned unclaimed or refused, mailing of the notice by regular mail shall be deemed effective upon mailing. Notice by personal service or by posting at the primary entrance to the facility of the medical cannabis entity business location shall be deemed effective at the time of personal service or posting, respectively.
(G) A medical cannabis entity must immediately cease operations upon suspension, revocation, or expiration of a local business license, unless otherwise instructed by the city, until the suspension is lifted or a new, valid license is obtained.
(Ord. O-22-2024, passed 11-19-24)
(A) Appeals and hearings before the City Administrator shall be conducted as follows:
(1) License denial. An applicant desiring to contest the denial of issuance of a license may appeal to the City Council.
(2) Revocation or suspension of licenses. The city may on its own initiative or on the complaint of any person, institute administrative proceedings before the City Council to revoke or suspend any License per KRS 218B.090(a)(b). A license may be revoked or suspended after the licensee has been afforded the opportunity for a hearing conducted in accordance with the procedure outlined below.
(B) Procedure.
(1) Complaints seeking suspension or revocation of a license on the
initiative of the city may be filed with the City Administrator by the Mayor or any person designated as a Code Enforcement Officer by Ordinance No. O-10-16, any city police officer, or member of the city’s Fire Department. The complaint shall contain: A statement of the factual basis for the revocation or suspension along with a statement of issues involved, in sufficient detail to give the licensee reasonable opportunity to respond to the revocation, prepare for a hearing, and to present evidence in support of the licensee’s position.
(2) Complaints received from persons other than city officials shall be in writing, under oath, and shall in plain language describe the factual basis for the action sought.
(3) The City Administrator may issue an emergency order summarily suspending a license upon finding that the continued operation of the medical cannabis entity pending a hearing would constitute a threat to the public health, safety, or welfare.
(C) Notice of hearing. Upon receipt of a complaint, the City Administrator shall:
(1) Conduct the hearing before City Council as soon as practicable and shall give notice of the hearing to the medical cannabis entity not less than ten days in advance of the date set for the hearing. In no event shall a hearing on a license suspension or revocation occur greater than 30 days following the filing of a complaint with the City Administrator. Provided, however, the medical cannabis entity against whom a complaint has been filed may consent in writing to an extension of the hearing date;
(2) The notice required shall be served on the medical cannabis entity by first class mail, sent to the medical cannabis entity’s address on record with the city; by personal service upon the medical cannabis entity’s designated representative on record with the city or by conspicuously posting on an entry door to the business location of the medical cannabis entity on record with the city;
(3) The notice shall be in plain language and shall include:
(a) A statement of the date, time, place and nature of the hearing;
(b) The name and mailing address of the City Administrator;
(c) A reference to the specific statutes and administrative regulations which relate to the issues involved.
(d) A statement advising the medical cannabis entity of the right to legal counsel;
(e) A statement of the medical cannabis entity’s right to examine, at least five days prior to the hearing, a list of witnesses the city expects to call at the hearing, any evidence to be presented at the hearing by the city and any exculpatory information in the city’s possession; and
(f) A statement advising that a medical cannabis entity who fails to attend or participate as required at any stage of the administrative hearing process may be held in default under this chapter.
(g) A statement that the hearing may result in suspension or revocation of the medical cannabis entity’s license.
(D) Conduct of hearing.
(1) The City Administrator and/or Mayor shall preside over the hearing before the City Council and shall regulate the course of the proceedings in a manner which will promote the orderly and prompt conduct of the hearing.
(2) The City Administrator and/or Mayor, at appropriate stages of the proceedings, shall give all parties full opportunity to file pleadings, motions and objections.
(3) The City Administrator and/or Mayor may issue subpoenas and discovery orders when requested by a party or on his or her own initiative. When a subpoena is disobeyed, any party may apply to the Boone Circuit Court for an order requiring obedience to the subpoena. Failure to comply with an order of the court shall be cause for punishment as a contempt of the court.
(4) To the extent necessary for the full disclosure of all relevant facts and issues, the City Administrator and/or Mayor shall afford all parties the opportunity to respond, present evidence and argument, conduct cross-examination, and submit rebuttal evidence.
(5) Any party to the hearing may participate in person or be represented by counsel.
(6) The hearing shall be open to the public unless specifically closed pursuant to a provision of law.
(E) Findings; evidence; recording of hearing; burdens of proof.
(1) Findings by the City Administrator and/or City Council shall be based exclusively on the evidence in the record. The City Administrator and/or City Council shall exclude evidence that is irrelevant, immaterial, unduly repetitious, or excludable on constitutional or statutory grounds or on the basis of evidentiary privilege recognized in the Courts of this Commonwealth. Hearsay evidence may be admissible, if it is the type of evidence that reasonable and prudent persons would rely on in their daily affairs, but it shall not be sufficient in itself to support Findings unless it would be admissible over objections in a civil court of law.
(2) All testimony shall be made under oath or affirmation. Any part of the evidence may be received in written form if doing so will expedite the hearing without substantial prejudice to the interests of any party.
(3) Objections to evidentiary offers may be made by any party and shall be noted in the record.
(4) The city shall cause all testimony, motions, and objections in a hearing to be accurately and completely recorded. Any person, upon request, may receive a copy of the recording or a copy of the transcript, if the hearing has been transcribed, at the discretion of the city, unless the hearing is closed by law. The city may prepare a transcript of a hearing or a portion of a hearing upon request but the party making the request shall be responsible for the transcription costs. The form of all requests and fees charged shall be consistent with KRS 61.870 to 61.884.
(5) Not later than seven business days following the conclusion of the hearing, the City Administrator and/or City Council shall issue a decision or order which shall set out the final disposition of the charges together with findings and conclusions which form the basis of that action.
(F) A licensee desiring to contest a decision of the City Administrator or City Council dealing with revocation or suspension of a license may appeal to the Boone District Court.
(Ord. O-22-2024, passed 11-19-24)
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