Introduction
In a significant move to expand its cannabis industry, Missouri’s Department of Health and Senior Services (DHSS) has announced the commencement of a second round of microbusiness license applications for the state’s burgeoning cannabis sector. This initiative marks a pivotal moment in Missouri’s approach to cannabis legalization and microbusiness empowerment, offering unique opportunities for marginalized and under-represented individuals to participate in the legal marijuana market.
The Application Process
Starting April 15 and running through April 29, the DHSS will accept applications for microbusiness licenses electronically via their online registry portal. This process is designed to streamline and simplify the application phase, enabling prospective entrepreneurs to submit their applications efficiently and securely.
The Lottery System
A distinctive aspect of Missouri’s microbusiness license allocation is the lottery system. Scheduled for June 2024, the lottery ensures a fair and unbiased selection process. The results, eagerly anticipated by applicants, will be posted on the Department’s website in July, fostering transparency and public trust in the process.
Distribution of Licenses
Missouri’s commitment to equitable distribution is evident in its plan to issue six microbusiness licenses in each of the state’s eight congressional districts. This approach ensures a widespread and balanced allocation, with a total of 48 licenses up for grabs in this round.
Eligibility and Restrictions
Microbusiness licenses cater specifically to entities and individuals who meet certain eligibility criteria, emphasizing inclusivity and fairness. Importantly, applicants cannot already own a license in any medical, comprehensive, or other marijuana facilities, ensuring new entrants have a fair chance at success. The program also stipulates that each applicant may only apply for one license, either for a dispensary or a wholesale facility.
Applicants must be majority owned and operated by individuals who meet at least one of the following criteria:
- Have a net worth of less than $250,000 and an income below 250% of the federal poverty level.
- Possess a valid service-connected disability card from the U.S. Department of Veterans Affairs or successor agency.
- Be a person, or a person whose parent, guardian, or spouse has been arrested for, prosecuted for, or convicted of a non-violent marijuana offense, excluding convictions involving provision of marijuana to a minor or driving under the influence of marijuana. The legal issue must have occurred at least one year prior to the application.
Or reside in a ZIP code or census tract where:
- At least 30% of the population lives below the federal poverty level.
- The unemployment rate is 50% higher than the state’s average.
- The historic rate of incarceration for marijuana-related offenses is 50% higher than the state’s rate.
- Have graduated from an unaccredited school district, or lived for three of the past five years in a zip code with an unaccredited school district or equivalent designation.
Financial and Residency Requirements
With an application fee set at $1,500, Missouri aims to keep the process accessible while ensuring serious commitments. Notably, there is no residency requirement, broadening the pool of potential applicants. Eligibility extends to those with a net worth under $250,000, veterans with service-connected disabilities, individuals or their close relatives with past non-violent marijuana offenses, or residents from economically disadvantaged areas or those with educational setbacks.
Real Estate Required at Time of Application (GOOD PLACE FOR CALL TO ACTION)
As applicants are required to have a proposed location when they apply, it is imperative that interested applicants get a head start on finding the ideal location. Let our expert real estate procurement team help you find the ideal location for your cannabis business today.
Community and Location Considerations
Applicants must propose a facility location compliant with local guidelines, maintaining a respectful distance from schools, daycares, and churches. This requirement underscores the program’s commitment to community harmony and legal compliance, necessitating collaboration with local governance to meet zoning requirements.
The Selection Process
To uphold the integrity of the selection process, the Missouri Lottery will conduct the drawings without knowing the applicants’ identities. Applicants will be sorted by district and license type, each assigned a unique identifier, with 16 separate lottery sets ensuring a thorough and unbiased selection.
Conclusion
Missouri’s innovative approach to cannabis microbusiness licensing represents a significant step forward in promoting inclusivity and economic opportunity within the cannabis industry. By employing a lottery system and setting forth clear eligibility criteria, the state aims to foster a diverse and vibrant cannabis market, providing new opportunities for those historically marginalized or underrepresented in the industry.
As Missouri prepares to embark on this exciting new chapter, the cannabis industry and prospective entrepreneurs alike await the outcome of the lottery with keen anticipation, ready to contribute to the state’s growing cannabis ecosystem.
