
KY's Medical Cannabis Program Under Investigation
Clip: Season 3 Episode 260 | 4m 2sVideo has Closed Captions
Kentuckians in the cannabis industry react to Auditor Ball's investigation.
Kentucky businesses and state agencies are working to get medical marijuana to patients. But the program has to contend with one hiccup: an investigation from the state auditor. June Leffler has more from Kentuckians in the hemp and cannabis industry.
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Kentucky Edition is a local public television program presented by KET

KY's Medical Cannabis Program Under Investigation
Clip: Season 3 Episode 260 | 4m 2sVideo has Closed Captions
Kentucky businesses and state agencies are working to get medical marijuana to patients. But the program has to contend with one hiccup: an investigation from the state auditor. June Leffler has more from Kentuckians in the hemp and cannabis industry.
Problems playing video? | Closed Captioning Feedback
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Learn Moreabout PBS online sponsorshipIn other news, Kentucky businesses and state agencies are working to get medical marijuana to patients.
But the program has to contend with one hiccup and investigation from the state auditor.
Our June Leffler has more from Kentuckians and the hemp and cannabis industry.
D.D.
Taylor owns this CBD store in Louisville.
It started with my husband back in 2010 for his needs and what he needs it for, for his seizures.
She served on Governor Andy Bashir's medical cannabis advisory committee.
So I kind of traveled around the state and helped with all of that, met a lot of people and advocates and patients.
She pushed for the bill that legalized medical cannabis, but she did not end up with a license to sell the product.
Some Kentucky hemp farmers didn't get a license to cultivate it, either.
It just it was unfair to a lot of people that have have tried to help build the space for it, for no one to get essentially get a license.
Michael Adair has taken his concerns directly to Kentucky officials.
Andy, as I've said, we want to have a meeting.
Me and a bunch of hemp farmers and other farmers in general that applied.
There's ways we can help, as I've mentioned, to try to speed up the program.
One official has been listening.
Adair says he contacted the state auditor, who is investigating it in the program.
If they find something that you know is harmful or it was illegal, what they did, then so be it.
Because if you don't have integrity now, are you going to have integrity when you're actually in the program?
Louisville station 11 has reported on what might have made the lottery system unfair.
The station interviewed a business owner who says she did app stack.
We had to create businesses, 20 different businesses under 20 different names, in order to get our applications out there, something.
Auditor Alison Ball told the station she is looking into.
And the reason why that's a problem is because there's actually a rig that prohibits app stacking.
Application stacking.
It's supposed to be as fair as it can be.
The investigation is ongoing.
People are going to find loopholes.
And I knew big cannabis was going to be cannabis.
You know, they have lots and lots of money.
I just didn't know it was going to go that bad.
A lawyer representing those who got a license, both big and small operators, says what he's seen from the state has been above board.
I'm a lifelong critic of the government.
I was.
I'm a criminal defense lawyer.
I stand up in court and frequently say the police did something wrong.
The federal government did something wrong.
But I've got to say, I think that the Office of Medical Cannabis here has had the patience of this state and quite frankly, the businesses, their interest in mind this entire time.
Brad Clark says the lottery was meant to give everyone a chance, including the smaller local businesses.
I personally think the best thing the state could have done is hold a reverse Dutch auction for these licenses.
Right.
Auction these off the state could have probably tripled what they got for in application fees if they'd auction the licenses off, maybe even more, maybe six.
But that just wouldn't be politically popular.
However, the investigator and system shakes out.
Michael Adair will be taking notes now.
It's just like it's it's in there.
The ball's in their court.
I've got it as far as I can go with it.
Right.
Or whatever.
So if they come back and tell me everything is aboveboard and everything's fine, I'll be the first one to eat crow and say, okay, like, you know, should we?
I guess we should have done it too.
The state auditor announced her investigation more than a month ago.
It's unclear when that will wrap.
For Kentucky edition, I'm Jim Leffler.
Many thanks.
June.
Will this investigation postpone when medical cannabis is in stores?
The state auditor's office told us the program should proceed with no delays.
But the Office of Medical Cannabis says the investigation requires pulling so many records that it diverts resources from regulating the new industry.
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