Microbusinesses

PURPOSE: Under Article XIV, Section 2, of the Missouri Constitution, the Department of Health and Senior Services has the authority to regulate and control marijuana microbusiness facilities and licensees. This rule explains what regulations apply only to microbusiness facilities and licensees. (1) Criteria to apply for, own, and operate a microbusiness license. (A) Entities must obtain a license to cultivate, manufacture, and dispense marijuana product in Missouri as a marijuana microbusiness. Application requirements are outlined in the application section of this chapter. 1. An entity may apply for and obtain only one (1) license to operate a microbusiness facility, which may be either a microbusiness dispensary facility or a microbusiness wholesale facility. If an entity, which includes an individual, holds an ownership interest in more than one (1) microbusiness license applicant in the same microbusiness application period, all microbusiness applications where the entity holds an ownership interest will be denied. 2. An entity may be an owner of only one (1) license to operate a microbusiness facility, which may be either a microbusiness dispensary facility or a microbusiness wholesale facility. (B) Applicants for a microbusiness license shall be majority owned and operated by individuals who each meet at least one (1) of the following qualifications: 1. Have a net worth of less than two hundred fifty thousand dollars ($250,000) and have had an income below two hundred fifty percent (250%) of the federal poverty level, or a successor level, as set forth in the applicable calendar year’s federal poverty income guidelines published by the U.S. Department of Health and Human Services or its successor agency, for at least three (3) of the ten (10) calendar years prior to applying for a microbusiness license; 2. Have a valid service-connected disability card issued by the United States Department of Veterans Affairs, or successor agency; 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 at least one (1) year prior to the effective date of this section, unless the conviction— A. Involved provision of marijuana to a minor; or B. Was for driving under the influence of marijuana; 4. Reside in a ZIP code or census tract area where— A. Thirty percent (30%) or more of the population lives below the federal poverty level; or B. The rate of unemployment is fifty percent (50%) higher than the state average rate of unemployment; or C. The historic rate of incarceration for marijuanarelated offenses is fifty percent (50%) 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 (3) of the past five (5) years. (C) Once an individual is deemed eligible for qualifying majority ownership of a licensed microbusiness facility under this rule, such eligibility shall be perpetual and unaffected by subsequent change in circumstances. The eligibility status will extend to the eligible individual’s descendants, spouse, siblings, or other relations approved by the department in the event that ownership in microbusiness facility is transferred by the eligible individual through will, trust, non-probate transfer, gift, or other estate planning instrument. An individual may subsequently be deemed ineligible if the individual provided false or misleading information or is in violation of other provisions in this chapter affecting owner status. (D) An owner of a microbusiness facility may not also be an owner of another licensed marijuana or medical facility, except— 1. A microbusiness licensee may apply for other medical or marijuana facility licenses during an application time period. A. Prior to submitting an application, the microbusiness licensee must notify the department of its status as a microbusiness licensee and notify the department if the licensee is claiming to be in operation for at least a year for purposes of selecting comprehensive licenses in Article XIV Section 2.4(3). B. If the microbusiness licensee is granted one (1) or more of these licenses, the microbusiness licensee shall transition the existing microbusiness facility to a medical or comprehen sive facility on a reasonably practical timetable established by the department, and surrender its microbusiness license; and 2. An owner of a microbusiness license who wishes to become an owner in a marijuana or medical license, must relinquish their owner status by relinquishing at least the amount of ownership interest in the microbusiness license that places their ownership interest at or above ten percent (10%), prior to or at the time of department approval of the ownership change. (E) Microbusiness facilities and licensees must comply with all applicable sections within this chapter. (F) “Majority owned and operated” means the eligible indi viduals having majority ownership must also collectively hold more than fifty percent (50%) of voting power in the licensed entity and have more than fifty percent (50%) of the power to order or direct the management, managers, and policies of the license, enter into and exit agreements on behalf of the license, and otherwise make decisions for the license. Majority owner ship cannot be subject to conditions that unduly diminish the controlling interests of the eligible individuals that constitute majority ownership, such as arrangements that subject those majority owners to control of a board or any agreements with disproportionate or exploitative termination fees. (G) Pre-application technical assistance program. 1. At least one (1) eligible individual who is contributing to majority ownership shall complete pre-application training, as specified by the department, which shall include, at a minimum— A. Unconscionable business practices; B. Expectations for owning and operating a microbusiness; C. Funding and investment options; and D. Rule compliance expectations. (H) Post-award technical assistance program. 1. All eligible individuals contributing to majority own ership shall complete post-award training within three (3) months of licensure or of becoming an individual contributing to majority ownership, as specified by the department, which may include— A. Unconscionable business practices; B. Expectations for owning and operating a microbusiness; C. Funding and investment options; and D. Rule compliance expectations. 2. Certificates of completion of mandatory training must be provided to the department when that training is completed. 3. Eligible applicants, eligible individuals, and licensees shall not enter into new final executed agreements that remove operational control from eligible individuals listed in the application or that would effectuate future automatic transfer of ownership until after successful completion of eligibility verification and mandatory post-award training, and if otherwise permitted. (2) Microbusiness dispensary licensees, generally. (A) A microbusiness dispensary facility is licensed to engage in the process of dispensing marijuana product for medical or adult use, in compliance with the dispensary facility rule in this chapter. A microbusiness dispensary licensee may choose to do all or only a subset of the activities authorized under its license. (B) Microbusiness dispensary licensees shall only acquire marijuana product from a microbusiness wholesale facility or another microbusiness dispensary facility. (3) Microbusiness wholesale licensees, generally. (A) A microbusiness wholesale facility is licensed to engage in the process of cultivating and manufacturing marijuana product for medical or adult use, in compliance with the cultivation facility and manufacturing facility rules in this chapter. A microbusiness wholesale licensee may choose to do all or only a subset of the activities authorized under its license. (B) A microbusiness wholesale licensee may only transfer its products to a testing facility, transportation facility, microbusiness dispensary facility, or to another microbusiness wholesale facility. AUTHORITY: sections 1.3.(1)(b), 1.3.(2), 2.4(1)(b), and 2.4(4) of Article XIV, Mo. Const. Emergency rule filed Jan. 20, 2023, effective Feb. 3, 2023, expired Aug. 1, 2023. Original rule filed Jan. 20, 2023, effective July 30, 2023. Amended: Filed Nov. 6, 2025, effective May 30, 2026.