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.