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Missouri Recreational Cannabis Updates

The show me state wants your opinion on the draft rules governing recreational cannabis. Missouri voted to approve recreational cannabis consumption for those 21 and over thanks to the passage of Amendment 3 on November 8th, 2022. This is a welcome addition to the existing medical marijuana program established in 2018, which allows sales to qualified patients who are 18 or over. The program will continue to be managed by The Missouri Department of Health and Senior Services (DHSS) and the Division of Cannabis Regulation. The Division is seeking public input regarding the program’s draft rules until November 25th, 2022 with the expectation that the final licensing regulations will be completed as early as February, 2023. See details here https://health.mo.gov/safety/medical-marijuana/draft-rules.php

Starting December 8th Missouri will begin accepting applications for existing medical licensees to convert operations to a comprehensive (medical and adult use) facility. The Division of Cannabis Regulation has 60 days from the time the application is received to grant approval of adult recreational usage. Applications for personal cultivation will begin Feb 6th, 2023.

Under the new law the department may not issue new comprehensive facility licenses (except to existing medical licensees) for at least 548 days. The exception to this is Microbusiness applications. Microbusiness applications will be accepted as soon as June 6, 2023.

Current rules include physical inventory counts and reconciliation to Metrc, the statewide seed-to-sale system and all POS systems must be state approved. Appropriate operating procedures must be put in place to maintain licensing compliance. This includes quarterly inventory counts. However, to maximize tax savings under federal Internal Revenue code 280E, GAAP accounting requires monthly inventory counts.

State tax for consumer cannabis purchases will remain at 4% in addition to any sales taxes implemented at the local level.

Key numbers under the draft rules.

1) Each licensee for medical and recreational cannabis utilizing artificial lighting can have a maximum of 30,000 square feet of flowering plant canopy space.

2) Each outdoor licensee for medical and recreational cannabis utilizing natural lighting can have a maximum of 2,800 flowering plants.

3) Each medical and recreational licensee with a greenhouse facility using a combination of natural and artificial lighting can choose between a maximum of 2,800 flowering plants or 30,000 square feet of flowering plant canopy space.

4) Each microbusiness wholesale facility can have a maximum of 250 flowering marijuana plants and 250 nonflowering plants over 14 inches tall and 250 nonflowering plants under 14 inches tall.

5) Licensees may not sell to a recreational consumer more than 3 ounces in a single transaction.

6) Licensees may not sell to medical marijuana patients more than what was prescribed for a 30-day period.

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