Microbusiness License FAQs

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• What is the process for ensuring microbusiness applicants met eligibility requirements?
  • Prior to issuing licenses and pursuant to 19 CSR 100-1.190, the Department reviewed documents that were uploaded with each top-drawn microbusiness application to verify that applicants met the qualifications that they indicated they met within their applications. The Department specifically looked for the documentation listed in 19 CSR 100-1.060(4). If documentation was insufficient to demonstrate eligibility for microbusiness licensure, the Department returned applications one time to allow applicants to supplement their applications with additional documentation. Once applications were resubmitted, the Department reviewed all documentation provided with the application to determine whether it was sufficient to demonstrate applicants met eligibility criteria. Upon issuance of a microbusiness license, the Department will work with each licensee to verify the application documents were accurate. Additionally, the Chief Equity Officer will perform a final review to verify that microbusiness licenses have been issued to eligible individuals, with a report made publicly available, as required under Article XIV.
• What is the process for verifying that individuals are not listed as having ownership interest in multiple microbusiness applications, and that owners of existing facility licenses are not listed in microbusiness applications?
  • The microbusiness application required applicants to list each individual with an ownership interest and the percent of ownership interest for each individual. The Department compiled the lists of names from all applications to ensure no individual was listed on more than one application and then compared this data to data about currently licensed entities to verify that no individual with an ownership interest in a microbusiness license is an owner of an existing facility license.
• Why is there more than one microbusiness license listed at the same facility address?
  • At time of application, applicants are required to provide a proposed facility location and attest that the location complies with all requirements under 19 CSR 100-1.100(1)(C). Following license issuance, DCR will review to further verify compliance with 19 CSR 100-1, including facility location verification. At the time of commencement inspection, pursuant to 19 CSR 100-1.030(3), licensees will be required to demonstrate that the proposed location meets the requirements of rule including sharing space with other licensees. Licensees may submit a business change application to change the facility location. See 19 CSR 100-1.100(2)(D).
• What are the requirements for microbusiness ownership changes following license issuance?
  • Licensees and potential purchasers are required to complete the necessary steps outlined in 19 CSR 100-1.100(2) prior to transferring a license or making changes to ownership. License transfers and changes to ownership are completed through a business change application. Microbusiness licensees submitting a business change application involving a change to ownership must also include eligibility documentation for any new individual whose voting or financial interest will contribute to majority ownership. A business change application may only be submitted after DCR issues its letter verifying the licensee passed Minimum Standards and Eligibility Verification Review. Further, changes to ownership amounting to fifty percent (50%) or more may only be submitted after the licensee’s facility has received approval to operate pursuant to 19 CSR 100-1.100(2)(C)
• Why do several microbusiness applications list the same designated contact?
  • The “Designated Contact” is the applicant’s authorized point of contact for all Department communication regarding the application and license. The designated contact is not required to be an individual in the ownership structure. Licensees may use an attorney or other responsible individual who is not an owner as a designated contact. As long as the individual is not an owner of multiple microbusinesses, the individual is permitted to be the designated contact for multiple licenses.
• What would cause a highly ranked microbusiness to be denied?
  • Prior to issuance of a license, an applicant must be both drawn in the lottery AND meet eligibility criteria. If a top drawn application did not meet application requirements, the application was denied, and the next application from the drawing list was reviewed. For example, an applicant claiming eligibility for graduating from an unaccredited school may be drawn first in the lottery, but the application would be denied if the applicant failed to provide documentation demonstrating the school was unaccredited at the time of graduation.

General

• How is a microbusiness license different from existing facility licenses?
• A microbusiness facility refers to either a microbusiness dispensary or a microbusiness wholesale facility, both of which conduct operations related to marijuana for medical and adult use. A microbusiness is different from a medical or comprehensive facility because it is designed to provide a path to facility ownership for individuals who might not otherwise easily access that opportunity, such as those with a net worth of less than $250,000 or veterans with a service-connected disability. In order to qualify for a microbusiness facility license, applicant entities shall be majority owned by individuals who meet at least one of the eligibility criteria set forth in Article XIV, Section 2.
• What does a microbusiness dispensary license allow me to do?
• Under Article XIV Section 2.2(18), a "Microbusiness dispensary facility" means a facility licensed by the department to acquire, process, package, store on site or off site, sell, transport to or from, and deliver marijuana, marijuana seeds, marijuana vegetative cuttings (also known as clones), marijuana-infused products, and drug paraphernalia used to administer marijuana as provided for in this section to a consumer, qualifying patient, or primary caregiver, as defined in this Article, anywhere on the licensed property or to any address as directed by the consumer, qualifying patient, or primary caregiver and, consistent with the limitations of this Article and as otherwise allowed by law, a microbusiness wholesale facility, or a marijuana testing facility. Microbusiness dispensary facilities may receive transaction orders at the dispensary directly from the consumer in person, by phone, or via the internet, including from a third party. A microbusiness dispensary facility's authority to process marijuana shall include the creation of pre-rolls.
• What does a microbusiness wholesale license allow me to do?
• Under Article XIV Section 2.2(19), a "Microbusiness wholesale facility" means a facility licensed by the department to acquire, cultivate, process, package, store on site or off site, manufacture, transport to or from, deliver, and sell marijuana, marijuana seeds, marijuana vegetative cuttings (also known as clones), and marijuana-infused products to a microbusiness dispensary facility, other microbusiness wholesale facility, or marijuana testing facility. A microbusiness wholesale facility may cultivate up to 250 flowering marijuana plants at any given time. A microbusiness wholesale facility's authority to process marijuana shall include the creation of pre-rolls and infused pre-rolls.
• What considerations should I take into account when selecting a location for my microbusiness?
• As outlined in Article XIV Section 2.5(4), applicants should work with local, county, and city government to ensure compliance with all local location and zoning requirements. Unless expressly allowed by the local government, no medical or marijuana facility, including any offsite warehouses, shall be sited, at the time of application for license, certification, or local zoning approval, whichever is earlier, within one thousand feet (1,000’) of any then-existing elementary or secondary school, daycare, or church. The method of measuring distances is governed by Article XIV.
• Can a location be mobile - such as a bus?
• No.  Licensee’ facilities must be located at an approved location and cannot be mobile.
• Can I have a consumer personal cultivation license and a microbusiness license?
• Individuals may possess both a microbusiness license and a personal cultivation license. The microbusiness facility location must comply with location requirements listed in 19 CSR 100-1 (https://health.mo.gov/safety/cannabis/rule-amendments.php) and any zoning requirements of the local government.
• How long are microbusiness licenses valid and when do they need to be renewed?
• Pursuant to 19 CSR 100-1.060(2)(E), a facility license or certification shall be valid for three (3) years from its date of issuance. Pursuant to 19 CSR 100-1.060(7), renewal requests must be submitted in a department-provided, web-based application system at least thirty (30) days, but no sooner than ninety (90) days, prior to expiration. These requirements apply to all licensees, including microbusinesses.
• Are there size limits or size minimums for microbusiness licensee facilities?
• Per 19 CSR 100-1.160(2)(A)1, each microbusiness wholesale facility utilizing any combination of indoor, outdoor, or greenhouse facilities will be limited to no more than two hundred fifty (250) flowering marijuana plants.
• Is there an age restriction to have ownership in a microbusiness license?
• No. Any individual may have ownership in a microbusiness license who could have ownership in any other type of business. However, be aware that an owner under the age of twenty-one (21) cannot have access to a marijuana facility. Per 19 CSR 100-1.070(2)(B), owners having access to a marijuana facility must be at least twenty-one (21) years of age.
• Can I be an owner of a transportation facility and a microbusiness?
• Yes. Individuals who hold ownership in a certified transportation facility may hold ownership in a microbusiness facility, and therefore may be listed as an individual on a microbusiness application. Applicants that hold ownership in a transportation facility should answer ‘yes’ when answering the attestation “Do you attest that the applicant does not have an owner who also has owner of an existing medical, comprehensive, transportation or other microbusiness license pursuant to 19 CSR 100-1.060(3)(F)?” If selected through lottery, the department will provide instructions to applicants in this category, such as any required variances or waivers to the existing rules. If awarded, the associated transportation license may not be used to avoid the limitations on sale/transfer of marijuana product between microbusinesses and comprehensive facilities.
• Can multiple applicants choose the same property as part of their application? If yes, what would happen if both got chosen?
• Yes. In the event two (2) eligible applicants are selected with the same proposed address, the department will review the circumstances with applicants and permit one (1) of the applicants to change location within the congressional district.
• What is a microbusiness license?
• A microbusiness is a marijuana facility license issued only to eligible individuals and entities. These licenses are essentially small businesses that are designed to allow marginalized or under-represented individuals to participate in the legal marijuana market.
• What kinds of microbusiness licenses are available?
• There are two types of microbusiness licenses available: microbusiness dispensary licenses and microbusiness wholesale licenses. A microbusiness dispensary facility is licensed to engage in the process of dispensing marijuana product for medical or adult use. A microbusiness wholesale facility is licensed to engage in the process of cultivating and manufacturing marijuana product for medical or adult use. If cultivating, a microbusiness wholesale facility may cultivate up to 250 flowering plants at any given time.
• How many microbusiness licenses are being issued?
• In October of 2023, the Department will issue six microbusiness licenses in each of the eight Missouri congressional districts, for a total of 48 microbusiness licenses. Of the six in each district, two will be microbusiness dispensaries, and four will be wholesale facilities. The Department will issue an additional 48 in 2024, and another 48 in 2025. Time periods for those application windows will be announced on the Department website.
• Who can I contact if I have questions about eligibility, documents, or if I have trouble submitting my application?
  • For any outstanding questions please reach out to the Facility Application Services Unit at CannabisFAS@health.mo.gov. If your questions need to be directed to a different section within the Division, the FAS Unit will forward to the appropriate person.
• What are the timelines for the microbusiness application process?
  • Microbusiness Timeline (Updated April 6, 2023)

Eligibility

• I got my GED after attending school in a district that was unaccredited at the time I earned my GED.  Can this count toward eligibility as a microbusiness owner?
• No.  Article XIV provides eligibility as a microbusiness owner for individuals who “graduated from a school district that was unaccredited.” The GED, HiSET, or other similar credential is a high school equivalency diploma issued by a state that is not tied to a particular school district.  If you received your GED, you did not graduate from the unaccredited school district.  However, you may be eligible under a different criteria, such as having “lived in a zip code containing an unaccredited school district, or similar successor designation, for three of the past five years.”
• For those seeking to establish eligibility for an arrest, prosecution, or conviction for a non-violent marijuana offense:
• Eligibility for non-violent marijuana offenses only applies to the applicant, the applicant’s parent or guardian, or the applicant’s spouse. A child, step-parent, or other relation does not qualify.
• An SIS is the result of being “prosecuted for” an offense, and an SES is the result of being “convicted” of an offense. Therefore, non-violent marijuana offenses that resulted in an SIS or SES would qualify.
• An individual is still considered eligible if the arrest, prosecution, or conviction was expunged.
• Marijuana offenses involving provision or distribution of marijuana to a minor or driving under the influence of marijuana do not qualify.
• The arrest, prosecution, or conviction for a non-violent marijuana offense must have occurred on or prior to December 8, 2021.
• Is proof of Missouri residency a requirement?
• No. There is no residency requirement in order to apply for a microbusiness application.
• What if I do not have the requested documentation to meet an eligibility requirement? Will the Division accept additional forms of proof/verification?
• The applicant will be considered eligible if the applicant submits documentation listed in 19 CSR 100-1.060(4). If you believe you are eligible, but do not have the documents listed in 19 CSR 100-1.060(4), the department may consider other proof or verification that demonstrates eligibility.
• What will count toward the net worth requirement of $250,000?
• Per 19 CSR 100-1.160(4)(B)2, applicants claiming a net worth of less than two hundred fifty thousand dollars ($250,000) and low income must submit:
  • Sworn financial statements for three (3) of the last ten (10) years, each of which must show net worth of less than two hundred fifty thousand dollars ($250,000). This includes all marital property, unless applicant provides evidence sufficient to demonstrate that property is not jointly owned; and
  • Documentation establishing that the applicant’s gross household income was below two hundred and fifty percent (250%) of the federal poverty guidelines issued by the U.S. Department of Health and Human Services for at least three (3) of the last ten (10) years. Income for each year claimed may be established by tax returns, paycheck stubs summarizing the full income from the source for the year, W-2s, evidence of job loss, or other documentation sufficient to demonstrate gross income below two hundred and fifty percent (250%) of the federal poverty level during the applicable year.
• What is the “sworn financial statement” need to verify net worth below $250,000?
• Individuals claiming net worth below $250,000 must submit a document listing their assets and liabilities demonstrating a net worth below $250,000. The document must be signed by the individual or the individual’s accountant (or other financial professional who is familiar with the individual’s net worth) and must be notarized (signed in the presence of a notary public). The department has provided a sample form to assist with net worth calculation. The worksheet can be found on the Application Resources page.
• For spouses that file joint taxes, how will that affect their eligibility?
• For those claiming eligibility under Article XIV Section 2.4(12)(a), the Department considers combined net worth and gross household income of a married couple, unless applicant provides evidence sufficient to demonstrate that property is not jointly owned.
• Is there any prohibition of spouses holding separate microbusiness licenses?
• No. Spouses may apply for and own separate microbusiness licenses. Please keep in mind that any individual may only be an owner of one microbusiness license at time and may only appear on one microbusiness application during an application time period.
• What are microbusiness eligibility requirements, and do I need to meet more than one in order to apply?
• Applicants must be majority owned and operated by individuals who each meet at least one of the following eligibility requirements:
  1. Have a net worth of less than $250,000 and have had an income below two hundred and fifty percent of the federal poverty level; or
  2. Have a valid service-connected disability card issued by the United States Department of Veterans Affairs, or successor agency; or
  3. Be a person who has been, or a person whose parent, guardian or spouse has been arrested for, prosecuted for, or convicted of a non-violent marijuana offense, except for a conviction involving provision of marijuana to a minor, or a conviction of driving under the influence of marijuana. The arrest, charge, or conviction must have occurred at least one year prior to the effective date of this section; or
  4. Reside in a ZIP code or census tract area where:
     1. Thirty percent or more of the population lives below the federal poverty level; or
     2. The rate of unemployment is fifty percent higher than the state average rate of unemployment; or
     3. The historic rate of incarceration for marijuana-related offenses is fifty percent higher than the rate for the entire state; or
  5. Graduated from a school district that was unaccredited, or had a similar successor designation, at the time of graduation, or has lived in a zip code containing an unaccredited school district, or similar successor designation, for three of the past five years.
• Applicants may claim more than one eligibility requirement on their application, however, it is not required.

Application Process

• What are the congressional districts used in the application process and how do I determine my district?
• Article XIV Section 2.4(13) directs the department to distribute licenses by the eight congressional districts in the state of Missouri, as drawn and effective December 6, 2018. Applicants should use the DCR Location Tool to determine the correct congressional district, house district, and GPS coordinates for the proposed microbusiness facility location.
• Is the congressional district based on the residential address of the applicant or the address of the proposed microbusiness facility?
• Applicants must choose the congressional district where their microbusiness facility will be located. Applicants are not required to reside in the same congressional district as the proposed facility address.
• Do I need to have my facility built out prior to applying?
• No. Applicants are required to provide a proposed facility location and attest that the proposed facility location complies with all the location requirements of 19 CSR 100-1.100(1)(C) or local government as applicable. Additionally, the applicant is required to provide proposed blueprints that outline the entire facility and feature all rooms and areas clearly labeled, including purpose and square footage, camera locations, limited access areas, and access permissions. The department has provided an example blueprint.
• Is there a limit to how many individuals can be listed within an application?
• No. However, any individual or entity can only appear on one application in an application time period.  If multiple applications contain the same individual, all applications listing that individual will be denied.
• How can I ensure my documents remain confidential/proprietary?
• Applicants may inform the department that documents contain proprietary business information by including a header in the right hand upper corner of the document that reads “Proprietary Information.” Click here for more information.
• If the Department determines that additional information is required, how will I be notified?
• If your application is one of the highly ranked applications drawn in the lottery, the department will review your application for eligibility. During the application review period, the department may request the applicant provide additional information or documents needed to determine eligibility for a license by sending the request to the email address of the designated contact associated with the application. If requested, the applicant will have three (3) business days to provide the requested information or documents. Therefore, it is important for the designated contact to monitor the email account associated with the application.
• How will I be notified if I am awarded/approved for a microbusiness license and will there be a deadline to accept the license?
• The department will send an email notification of approval to the designated contact provided in the application no later than October 4, 2023, notifying the applicant that they have been issued a license. License awardees will have 48 hours to confirm they accept the license, pursuant to 19 CSR 100-1.060(6)(D). Failure to accept the license in this time frame may result in deactivation of the license, and the department may then offer a license to the next eligible applicant. All applicants are encouraged to monitor email closely.
• How can I apply for a microbusiness license?
• The Department will be accepting microbusiness applications from July 27 – August 10, 2023. The Department will receive microbusiness applications electronically through a Department-provided, web-based application system. The Department will post the application forms and provide instructions for those forms on its website at http://cannabis.mo.gov by June 6, 2023.
• Are fingerprints required to be submitted as part of this application?
  • Yes. To determine if the applicant has a disqualifying felony offense, fingerprints are required for microbusiness applicants for owners with 10% or more voting or financial interest. The Department will provide additional guidance during the application window as to when and how to submit fingerprints.
• Do I already need to have a physical facility/location before applying?
  • Yes, applicants will need to provide the proposed facility address in their application. Refer to 19 CSR 100-1.060(3)(G) for additional information required for facility applicants.
• I am an owner of an existing medical or comprehensive marijuana facility license, can I apply for a Microbusiness license?
  • No. An applicant may not have an owner who is also an owner of an existing medical, comprehensive, or another microbusiness marijuana facility license. If an owner of an existing medical or comprehensive facility is listed in the application, the application will be denied.
• How will I know if my application is complete and eligible or if the department determines that additional information is required?
  • If your application is near the top of the list resulting from the lottery, the Department may request additional information or documents needed to determine eligibility for a license by sending the request to the email address of the designated contact associated with the application. If requested, the applicant will have three (3) business days to provide the requested information or documents.
• If my application is denied, can I apply again?
  • Yes, applications not chosen by lottery will result in the application being denied. Those applicants may choose to submit a new application during the next application submission time period.

Lottery

• How are microbusinesses selected?
  • By law, microbusiness applications are selected via random lottery drawing. To ensure the integrity of the random drawing, the Missouri Lottery will conduct the drawing without reference to the identities of the applicants.
• How does the lottery process work?
  • All timely applications submitted with an application fee will be entered into the lottery drawing. Untimely applications or applications without an application fee will be denied. After the application time period closes, applicants will be sorted by congressional districts and license type (wholesale or dispensary), and assigned a sequential applicant identifier within those groups. The designated contact provided in the application will receive an email containing the applicant identifier prior to the drawing.
    
    All applicants entered into the drawing will be listed in order drawn within their congressional district. Prior to awarding licenses, the Department will review the applications in the order drawn. In the case that an application is denied or an applicant does not accept an awarded license, the next eligible applicant in that congressional district will be awarded the license.
    
    Random drawing results will be posted to the Department’s website as soon as they are available. Once the subsequent review period is complete, winners of licenses will be notified by email using the designated contact provided in the application.
• Can I submit multiple microbusiness applications to improve my chances in the lottery?
• No. Article XIV section 2.4(12) is clear that an entity may apply to the Department for and obtain only one license to operate a marijuana microbusiness facility, which may be either a microbusiness dispensary facility or a microbusiness wholesale facility. This means that an individual or entity may only be listed on one application, regardless of the amount of ownership interests. This limitation ensures everyone who applies has an equal chance at a license. If an individual or entity appears on multiple applications, all applications in which the individual or entity appears will be in violation of the rule and will be denied.
• When was the random lottery drawing held?
  • The drawing for microbusiness licenses was held on August 28, 2023.
• Who conducted the random drawing?
  • The Missouri Lottery conducted the random drawing and the results were provided to the Department of Health and Senior Services.
• Where are the results of the drawing?
  • The results are listed on the Department’s home page. The results include a list of the drawing order for each congressional district and license type, including: the application ID, applicant entity name, and address of the proposed facility location for each microbusiness dispensary and microbusiness wholesale applicant.
• How many microbusiness licenses are being issued this round?
  • Six microbusiness licenses are being issued in each of the eight congressional districts, as drawn and effective December 6, 2018. Of the six in each district, two are microbusiness dispensaries and four are microbusiness wholesale licenses.
• If my application was among the first drawn applications in a congressional district, does that mean I am guaranteed a license?
  • No. The Department will not be able to announce which applicants will be awarded a microbusiness license until each application has been reviewed to determine if the applicant has satisfied all application criteria to receive a license. The drawing list for each congressional district is the order that applications will be reviewed. An application that was one of the first drawn applications may not be awarded a microbusiness license for a number of reasons, such as:
    • The proposed facility location is too close to an existing school, church, or daycare.
    • The application does not demonstrate the applicant is majority owned by eligible individuals.
    • An individual or applicant appears on more than one microbusiness application.
    • The application is in violation of a rule or Article XIV.
  • This is not a complete list of reasons why a drawn application may not be awarded a license.
  • Department staff cannot provide advice or information as to whether a specific application is under review, or the status of the review of a specific application during this process. If your application is under review, the Department may contact you for more information. See this FAQ.
• What happens if one of the first drawn applications selected in the drawing is determined to not meet the application requirements necessary to receive a microbusiness license?
  • If a drawn application is found to not meet application requirements, the next application from the drawing list will be reviewed. A denial notice containing the reasons for the denial will be issued to applicants determined to not meet application requirements. Any denied applicant may seek review of the denial through the Administrative Hearing Commission or may request a refund of the application fee.
• I forgot to submit some documents in my application. Can I submit them now during the review process?
  • Generally no. Applicants are responsible for submitting a complete and accurate application. However, the department may request an applicant provide additional information or documents during the application review period by sending the request to the email address of the designated contact associated with the application. If requested, the applicant will have three (3) business days to provide the requested information or documents.
• When will I know if I receive a license?
  • The applications will be reviewed as quickly as possible. Per Article XIV, the Department must issue licenses no later than October 4, 2023.
• Why can’t the Department announce the winners now?
  • Please see this FAQ. The Department is required to determine whether the first drawn applicants in the lottery meet application requirements prior to issuing a microbusiness license.
• My application is not near the top of the drawing list. Can I request a refund?
  • Yes - microbusiness applicants may request a refund after applications are denied. The Department will post a refund form and additional instructions at that time on the website.

Fees and Refunds

• What fees are associated with microbusiness?
  • The microbusiness application fee is currently $1500.
• Can I receive a full refund if I’m not awarded a license?
• Yes, per 19 CSR 100-1-060(2), a refund will be issued to any applicant not chosen by the lottery that meets the criteria for a microbusiness license and has no pending or future legal actions related to the denial of the application. Requests for a refund will be accepted beginning thirty-one (31) days after the date of the denial, but no later than six (6) months after the date of the denial.