What Does Missouri’s Amendment 2 Say About Opening A Medical Marijuana Business?

On November 8th, 2018, Missouri became the 31st state to legalize medical marijuana, passing Amendment 2 with 65.59% of the vote. In fact, Amendment 2 garnered more votes than any other measure on the ballot, including the vote for Governor. With a 4% tax on marijuana products, the amendment is expected to raise $20 million for healthcare and workforce development for veterans.

With this legalization comes the need for cultivation facilities, dispensaries and manufacturing facilities for medical marijuana-infused products. The amendment officially took effect on December 6, 2018, and now the process has begun of creating a list of rules and regulations so that interested entrepreneurs can prepare to break into the medical marijuana industry.  

Are you interested in opening a medical marijuana business? Learn what to expect in the coming months as these regulations develop.  

Timeline of events

The Department of Health and Senior Services (DHSS) is responsible for creating and executing the rules and regulations for the medical marijuana industry, including creating the timeline for both businesses and patients.

  • January 5th, 2019. Interested business owners can begin to submit application fees.  
  • June 4th, 2019. On or before this date, the applications for medical marijuana businesses must be released and must include the final rules and regulations.
  • July 4th, 2019. Patients can begin applying for medical cards.
  • August 3rd, 2019. This is the first day that applications for cultivation, manufacturing and dispensing facilities can be filed.
  • December 31st, 2019. Licenses for cultivation, manufacturing and dispensing facilities must be awarded within 150 days from the receipt of the application if it is approved.

What are the rules for medical marijuana facilities?

It’s important to understand that the number of facilities will be closely regulated. Different types of facilities have differing rules on the number allowed:

  • There will be 61 licenses to cultivate medical marijuana, equaling one license per 100,000 Missouri residents.
  • There will be 82 licenses to make marijuana infused products including edibles, vapors, oils and more, equaling one license per 70,000 Missouri residents.
  • There is projected to be 192 dispensaries by 2020, equaling 24 dispensaries for each of Missouri’s eight congressional districts.

These differing rules extend to application fees and licenses as well:

  • Dispensaries. These facilities will be required to pay a $6,000 non-refundable application fee and a $10,000 annual fee. Their licenses will be valid for three years, with no more than five licenses available to any group or entity. Each dispensary will require a separate license.
  • Cultivation facilities. Each cultivation facility must pay a $10,000 non-refundable application fee and a $25,000 annual fee. These licences are also valid for three years, and one group or entity cannot have more than 3 licenses. Since the number of these facilities are based on population, a raise in population in Missouri’s 2020 Census would increase the number of licenses. If the population decreases, the number of licenses will not be impacted.
  • Medical marijuana infused manufacturing facilities. Producers of medical marijuana infused products must pay a $6,000 non-refundable application fee and a $10,000 annual fee. These licenses have the same regulations as cultivation facilities, being valid for three years and limiting 3 licenses per group or entity. If the population raises in the 2020 Census, the amount of these licenses will increase as well.

These guidelines are far from the last round of regulations that have been created for medical marijuana businesses. When the final regulations are released in June, businesses can begin to make specific plans for their medical marijuana facilities. Reynolds & Gold will be following along during the process and providing information as it develops.

Do you have any questions about starting up a medical marijuana business?

Contact Reynolds and Gold. We can guide you through the process from application to certification and beyond.