Missouri Cannabis Leader Faces Allegations Of Using Predatory Contracts To Exploit Social-Equity Licensees
In Missouri, a high-stakes controversy is unfolding as state regulators investigate John Payne, a prominent figure in the state’s cannabis industry, for his involvement in potentially exploitative contracts under a social equity program. The focus is on whether the business arrangements violate constitutional mandates by disproportionately benefiting Payne and his associates at the expense of intended beneficiaries.
Payne’s Controversial Contracts Spark Legal Probe
Payne, who led the 2022 campaign to legalize adult-use cannabis in Missouri, faces allegations of using a 47-page contract to secure dominant control over new dispensary licenses intended to empower minority communities historically harmed by cannabis prohibition. According to documents and interviews revealed by The Missouri Independent, Payne’s contracts are designed in such a way that although minority partners nominally hold majority ownership, they experience significant limitations in operational control and financial benefits.
These contracts require minority owners to handle extensive regulatory scrutiny and impose severe financial penalties for contract termination, amounting nearly to $1 million. The controversy escalated with revelations that Payne’s contractual arrangements were not isolated incidents but involved multiple license applications. The …