Missouri Lawmakers Advance Cannabis Licensing Rule Changes

Lawmakers in the Missouri Joint Committee on Administrative Rules last week
advanced rule changes to strengthen the state’s cannabis microbusiness
licensing process, the Missouri Independent reports.

According to the bill’s proponents, the rule changes are needed to prevent
ongoing abuse of the state’s lottery licensing system. Currently,
influential groups and individuals can essentially recruit others to
partake in the lottery, but then saddle them with contracts that ultimately
limit their control over the business.

The proposed rule changes seek to cut back on license revocations by
tasking officials to review the ownership situation before awarding the
licenses. Of 105 cannabis microbusiness licenses issued throughout the
state’s first two lotteries, officials have had to revoke 35 over issue,
the report said.

The committee also considered but did not include a ban on people who were
tied to a denied or revoked license from being vested in future cannabis
microbusinesses.

“There’s really no question in many cases. Third parties used eligible
individuals, names and circumstances to attempt to acquire licenses for
themselves.” — Missouri Division of Cannabis Regulation Director Amy Moore,
during a legislative hearing last week

Under the voter-approved constitutional amendment to legalize adult-use
cannabis, the state is required to have at least 144 retailers.

Meanwhile, the Missouri state auditor released a report last month that
criticized the state’s cannabis licensing process, but ultimately gave it a
“fair” rating.