Governor Beshear joins local leaders at groundbreaking for Kentucky’s first new medical cannabis safety compliance facility

MAYFIELD, Ky. (May 28, 2025) – Governor Andy Beshear joined local leaders in Graves County and Tannette Henson, owner of State38 LLC, for a groundbreaking ceremony for the commonwealth’s first medical cannabis safety compliance facility. The $1 million project will create about a dozen full-time jobs and provide essential safety and quality controls for the growing medical cannabis industry. Brad Youngblood, Youngblood Excavating and Contracting, will lead construction.

“Team Kentucky is dedicated to ensuring every Kentuckian with a qualifying condition has safe access to quality medical cannabis,” said Gov. Andy Beshear. “I’m excited to see this new industry take root here in Graves County, because I believe healthcare is a basic human right.”

 The groundbreaking represents implementation of a critical piece of infrastructure necessary for Kentucky’s medical cannabis program that began with Gov. Beshear signing Senate Bill 47 (SB 47) into law in 2023, legalizing medical cannabis for Kentuckians beginning Jan. 1, 2025. The license was awarded to State 38 through an application process and the laboratory will be accredited through Perry Johnson Laboratory Accreditation, Inc. (PJLA). 

“We considered placing the facility in several different counties across Kentucky. But I am from Graves County and familiar with the devastation caused by the December 2021 tornado,” said Henson, a graduate of Graves County High School. “It means something to create jobs here and for State38 to be part of the ongoing recovery and future of Graves County.”

“Graves County has been very welcoming, and we are grateful for the outstanding support we have received from the community as well as both local and state governments,” Henson added.

The State38 Safety Compliance Facility will receive samples from licensed cultivators, processors and producers across the state of Kentucky. “It is our responsibility to test and ensure that the medical cannabis available in the Commonwealth meets specific safety and compliance standards so that patients can feel confident in knowing exactly what and how much is in the products they consume,” explained Henson.

State38 LLC will employ a medical director, quality manager, technicians, prep staff and a delivery intake person. “It’s important for us to have high standards and be good at what we do,” said Henson.

State Representative Kimberly Holloway is enthusiastic about the future of the facility. “Once completed, this facility will play a key role in ensuring the safety and quality of medical cannabis products in Kentucky. At the same time, as we look ahead, let today’s groundbreaking serve not only as a symbol of how far we’ve come, but as the beginning of a bold, new chapter in our community’s story. Together, we are laying the foundation of a future defined by growth, innovation, and opportunity--one that will bring lasting prosperity to Graves County for generations to come,” said Holloway.

“The City of Mayfield is excited to play a role in the initial phases of this new medical cannabis industry launching in the Commonwealth, and we are grateful to Tannette Henson for bringing the first licensed medical cannabis safety compliance facility to Graves County,” said Kathy O’Nan, Mayor, City of Mayfield. 

Jason Lemle, President of Graves County Economic Development, was also enthusiastic about the new opportunities medical cannabis will bring to the region and state. “As Kentucky opens the door to medical cannabis we are entering into new economic development opportunities for agri-tech industry here in Kentucky and I look forward to the growth of this new sector,” said Lemle.

The Office of Medical Cannabis in the Cabinet for Health and Family Services is charged under KRS Chapter 218B with implementing and administering Kentucky's Medical Cannabis Program. 

State38 LLC will employ a medical director, quality manager, technicians, prep staff and a delivery intake person. “It’s important for us to have high standards and be good at what we do,” said Henson.

About Graves County Economic Development

Graves County Economic Development began in 1981, becoming the driving force behind expansion and development opportunities in the community. It continues to foster strong relationships with existing businesses and attracts new industry to grow in Graves County. There are 44 industrial businesses in Graves County that employ 2,300 people in the community.