DCR responds to microbusiness concerns amid license revocations, delays
The Division of Cannabis Regulation (DCR) recently announced 25 more license revocations for microbusiness applicants.
The result has been increased uncertainty and continued concerns from some licensees over logistical and operational challenges.
Lisa Cox, Communications Director for the Missouri Department of Health and Senior Services, recently responded to questions about the potential impact of license revocations from Greenway.
“DCR has a constitutional requirement to issue at least 144 microbusiness licenses and revoked licenses will be added in the next round of licensing,” Cox said. “Current licensees are working towards operation and building relationships within the microbusiness licensee community.”
Of the 41 microbusiness dispensary licenses issued to date, only 16 remain active. None of those facilities have been approved to operate. Of the 65 microbusiness wholesale licenses issued, 55 remain active, and only two have reached approval to operate.
While the Department continues to emphasize compliance and readiness, some licensees have expressed frustration over barriers to becoming operational, particularly around distribution and access to the market. In light of these logistical concerns, Cox pointed to efforts by DCR to increase communication and support for licensees.
“DCR recently held a microbusiness town hall to provide information and time for Q&A,” she said. “We are also working on having dedicated segments in the DCR Out Loud podcast and in the Cannabis Connection quarterly newsletter.”
In addition to public resources, licensees can receive individualized support. “There is also a licensee learning session coming up that is available to all licensees,” Cox said. “Licensees can reach out to their assigned compliance officer with questions and Lesley Turek, the microbusiness Chief Equity Officer, is communicating on a regular basis with licensees and provides support where needed. DCR continues to work on additional microbusiness resources and guidance to post on our website.”
The microbusiness program, established under Article XIV of the Missouri Constitution, is intended by the authors of the Amendment to increase access to the regulated marijuana industry for individuals historically impacted by marijuana prohibition, or who did not qualify to apply for the initial wave of medical marijuana licenses.
However, licensees have reported various challenges, including delays in construction, access to capital, and limited options for distribution.
As operators face impending deadlines to achieve approval to operate (ATO), some have raised concerns about meeting those deadlines due to delays in facility readiness or lack of clear pathways to distribution. While DCR has not issued a blanket extension, Cox emphasized there is a process available to request additional time.
“Licensees who are unable to meet an operational deadline can submit a variance request for the department’s consideration,” she said. “For information on how to complete a variance request, licensees should contact their assigned business licensing specialist.”
Despite the hurdles, DCR maintains its focus on meeting the constitutionally mandated rollout of the microbusiness program, while also providing ongoing resources and communication opportunities for licensees seeking to navigate the path to operation.
As Missouri’s cannabis microbusiness program continues to develop, the majority of licensees remain non-operational. The first licenses were issued in October 2023, and more than 18 months later, no facilities are currently able to sell product to Missouri patients and consumers.
While revoked licenses are set to be reissued in future lotteries, the Missouri microbusiness program threatens to become stagnant.
Brandon Dunn contributed to this article.