A quarter of Missouri cannabis microbusiness license winners deemed ineligible
Chief Equity Officer Abigail Vivas, who oversees the microbusiness program under the Missouri Department of Health and Senior Services, said in a report released Friday that the ineligibility issues included “failure to provide documentation that the facility would be operated by eligible individuals” (Rebecca Rivas/Missouri Independent)
Missouri cannabis regulators could revoke 11 of the 48 social-equity cannabis licenses issued in October after finding they didn’t meet eligibility requirements.
Nine were dispensaries and two were wholesale facilities.
Chief Equity Officer Abigail Vivas, who oversees the microbusiness program under the Missouri Department of Health and Senior Services, said in a report released Friday that the ineligibility issues included “failure to provide documentation that the facility would be operated by eligible individuals.”
The microbusiness program is meant to boost opportunities in the industry for businesses in disadvantaged communities, and it was part of the constitutional amendment to legalize recreational marijuana that voters passed in November.
Vivas’ report comes on the heels of The Independent’s October investigation that found some applicants thought they were partnering with a Michigan investor but signed agreements requiring them to relinquish all control and profits of the business.
Some of the applicants were recruited through Craigslist ads from around the country.
Following The Independent’s report, state Sen. Karla May, a St. Louis Democrat, demanded the state investigate what she called an “egregious exploitation” of social-equity cannabis licenses.
The other eligibility issues cited in the report included failure to provide adequate documentation to verify the majority owner met the eligibility criteria and for a disqualifying felony offense.
The state did not provide a list of the microbusiness licensees who were certified for eligibility, and the department did not immediately respond to The Independent’s request for an updated list.
The constitution mandates the chief equity officer conduct an eligibility review within 60 days of the microbusiness licenses being issued and make the results available to the public.
The review was completed Dec. 1, according to a department press release Friday.
Licenses that are not certified may be revoked, and notices of pending revocation provide a 30-day response period, according to state marijuana rules.
During that 30-day window, licensees can submit records or information demonstrating why they are eligible and should not have their license revoked. All revoked licenses will be added to the available licenses awarded in the next application timeframe, the press release states.
The department will issue a minimum of 96 additional microbusiness licenses in two separate lotteries conducted by the Missouri Lottery. Applications for the second of three total rounds are tentatively scheduled to begin in March 2024 with licenses to be issued in July.
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