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Adult-Use Initiative
Microbusiness Licenses
An Opportunity to Enter Missouri ’ s Cannabis Industry
Missouri Marijuana “ Adult-Use ” Initiative
Part 3 of 3 by Denise B . McCracken , Attorney , contributing writer
On November 8 , 2022 , Missourians will be asked to vote on Amendment 3 , formerly known as Initiative Petition 2022-059 , an amendment to the Missouri Constitution legalizing adult-use cannabis , aka recreational marijuana . This final installment of The EVOLUTION Magazine ’ s three-part series focuses on a path Amendment 3 offers for entering Missouri ’ s marijuana industry as a commercial grower , manufacturer , or seller of adult-use cannabis . With a strong business plan , new Marijuana Microbusiness Facility licenses offer the most opportunities .
As the name implies , Microbusiness licenses allow narrower operations than Comprehensive Facilities . “ Comprehensive Facility ” is the name Amendment 3 gives to facilities licensed for broader medical and adult-use marijuana commercial operations . Two types of Microbusiness licenses are created : Wholesale and Dispensary .
A Microbusiness Wholesale facility may cultivate up to 250 flowering plants and manufacture marijuana-infused products under a single license . An aspiring Wholesale licensee can apply to do one , some , or all of the operations allowed . By contrast , separate cultivation and manufacturing licenses are issued for medical and Comprehensive facilities . Microbusiness Dispensaries can operate the same as Comprehensive dispensaries with notable exceptions . All Microbusiness facilities must conduct business-to-business ( B2B ) marijuana transactions with other Microbusinesses . Microbusiness Wholesalers may only sell flower and infused products to other Microbusinesses , and Microbusiness Dispensaries must buy flower and infused products from Microbusiness Wholesalers .
Amendment 3 ’ s definitions for Microbusiness facilities do not include two operational rights given to Comprehensive facilities . By omitting these rights from Microbusiness definitions , the Department of Health and Senior Services (“ Department ”) may read Amendment 3 to either allow or not allow Microbusiness Dispensaries to sell to other Microbusiness Dispensaries and require or not require both Microbusiness Wholesalers and Dispensaries to segregate marijuana products as either non-medical or medical marijuana . The Department is the state agency Amendment 3 charges with overseeing all marijuana licenses .
Qualifying for a Microbusiness License
The Department must issue 144 new Microbusiness Facility licenses from a pool of qualifying applicants in three separate lotteries over 18 months . In each of the three Microbusiness lotteries , at least two Dispensary licenses and six Wholesale licenses will be issued in each of Missouri ’ s eight Congressional Districts . The first Microbusiness lottery must be held no later than October 4 , 2023 . The exact timing of the second and third lotteries depends on when the Department issues licenses to selected applicants in the first lottery . Before the next lottery can be held , a newly appointed Chief Equity Officer must certify that previous Microbusiness licenses were awarded and are being operated by eligible applicants in good standing . Social equity is a term used nationwide in the cannabis industry , but its definition varies from state to state and person to person . Wikipedia , take it or leave it , describes social equity as focusing on the ideals of justice and fairness . In Amendment 3 , Microbusiness licenses must be majority owned by qualifying individuals . Individuals qualify if they meet at least one of the following five criteria :
1 . Have a net worth of less than $ 250,000 and have had an income below 250 % percent of the federal poverty level for at least three of the ten calendar years before application .
2 . Have a valid service-connected disability card issued by the U . S . Department of Veterans Affairs .
3 . Be a person who has been or a person whose parent , guardian , or spouse has been arrested , prosecuted , or convicted of a marijuana offense ( excluding offenses involving violence , provision to a minor , or driving under the influence ) before December 8 , 2021 .
4 . Reside in a ZIP code or census tract area where : a . 30 % or more of the population lives below the federal poverty level ; or b . The rate of unemployment is 50 % higher than the state
c .
average rate of unemployment ; or The historical rate of incarceration for marijuana-related offenses is 50 % higher than the rate for the entire state .
4 . Graduated from a school district that was unaccredited at the time of graduation or has lived in a zip code containing an unaccredited school district for three of the past five years .