Missouri Recreational Cannabis Update

Missouri recreational cannabis was passed on November 8. Medical license holders will have the chance to convert their businesses to adult use on December 8. Missouri recreational cannabis sales are expected to begin in early 2023. The Missouri Department of Health and Senior Services is currently in the process of drafting regulations to govern the adult-use cannabis industry. It must begin awarding comprehensive licenses to current medical dispensaries by February 6.

The first round of microbusiness applications for Missouri Social Equity licenses opens on July 27 and closes August 10, 2023. Licenses are expected to be awarded in October 2023. 48 license applications will be accepted in 2024 and 2025, though exact dates are to be determined.

The first round of microbusiness licenses will only be available for those that meet social equity criteria. This criteria includes:

• Majority Owned/Operated by individuals who:
  • Have a net worth of less than $250,000 and an income below 250% of the federal poverty level, or a successor level, as set forth in the applicable calendar year’s federal poverty income guidelines for at least 3 of the 10 calendar years prior to applying
  • Have a valid service-connected disability card
  • Be a person who has been. or a person whose parent, guardian, or spouse has been arrested/prosecuted/convicted of a non-violent marijuana offense at least 1 year prior to the effective date of the bill
  • Reside in a zip code or census tract where:
    • 30% or more of the population is below the federal poverty level
    • Rate of unemployment is 50% higher than the state’s average rate
    • Historical rate of incarceration for marijuana related offenses is 50% higher than the rate of the entire state
    • Graduated from a school district that was unaccredited or had a similar successor designation, or has lived in a ZIP code containing an unaccredited school district for 3 of the past 5 years

• What is a microbusiness facility?
  • A microbusiness facility refers to either a microbusiness dispensary or a microbusiness wholesale facility, both of which conduct operations related to marijuana for medical and adult use. A microbusiness is different from a medical or comprehensive facility because it is designed to provide a path to facility ownership for individuals who might not otherwise easily access that opportunity, such as those with a net worth of less than $250,000 or veterans with a service-connected disability. In order to qualify for a microbusiness facility license, applicant entities shall be majority owned by individuals who each meet at least one of a number of qualifications set forth in the Constitution.
• What is a microbusiness dispensary facility?
  • A microbusiness dispensary facility is a licensed microbusiness facility where marijuana is dispensed for medical and adult use. Microbusiness dispensaries may only acquire product from and sell product that was produced by microbusiness wholesale facilities.
• What is a microbusiness wholesale facility?
  • A microbusiness wholesale facility combines the concepts of a cultivation facility and a manufacturing facility to serve both the medical and adult use communities. A microbusiness wholesale facility may engage in all or only a subset of the activities approved under its license. If cultivating, microbusiness wholesale facilities may cultivate up to two hundred and fifty flowering plants at a time. Microbusiness wholesalers may only sell product to microbusiness dispensary facilities.

Want to learn more?

Visit our state page and schedule a consultation today!

Contact us by phone at 602-290-9424 or via email at info@thecannabisbusinessadvisors.com for more information on how to get started.