User:Esb5415/sandbox

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MIZZOU Esb5415 (talk) (C) 19:16, 13 December 2023 (UTC)

Medical Licenses
After medical cannabis was legalized with Amendment 2, the scoring system used to award licenses was criticized. Some applicants received a score of zero for lengthy responses to questions, while others received different scores for similar answers. The state awarded the minimum number of licenses required by Amendment 2, causing many applicants to not get a license despite high scores. Many lawsuits were filed, with an unsuccessful challenge arguing the cap on licenses violated the right to farm in the state constitution. The FBI began an investigation into the awarding of licensees as part of a larger investigation into corruption around cannabis licenses in various states. Additionally, the state auditor launched an investigation into the awarding of licenses.

In response to lawsuits and investigations, the state awarded some additional licenses to applicants who were previously denied.

Taxes
During the April 4, 2023 election, many counties and cities in Missouri approved the additional sales tax on recreational cannabis of 3%. It is unclear, however, if city taxes and county taxes will stack. After many of the sales taxes went into effect that October, dispensaries sued to prevent stacking of city and county taxes. Amendment 3's drafters supported the position that taxes cannot stack, while the state's cannabis regulatory agency initially said the taxes could not stack before retracting their statement and offering no guidance.

After voters passed the 3% tax increase in St. Louis, the city missed an administrative deadline, causing lost revenues of around $500,000. St. Louis filed the paperwork to begin collecting the tax in January 2024.

2023 Recall
In August 2023, the state recalled over 60,000 cannabis products (including vape cartridges, edibles, and prerolls) manufactured by Delta Extraction LLC. No adverse reactions were reported due to use of recalled products. The recall stems from use of hemp-derived THC derived from sources outside Missouri, causing uncertainty regarding testing of harmful chemicals. Delta Extraction sued the state, arguing they created the products safely and that the state's cannabis regulatory agency did not have the authority to regulate hemp-derived THC.

Microbusinesses
In addition to normal cannabis business licenses, Missouri has a category of licenses designed for disadvantaged communities. These communities include low-income, those who have previous cannabis arrests, and disabled veterans. Rather than being awarded by a scoring system similar to how medical licenses were first awarded, these microbusiness licenses are awarded by lottery. Licenses are for dispensaries and wholesale facilities, which are able to grow 250 flowering plants. The first 48 microbusiness licenses were awarded in October 2023, with further rounds in 2024 and 2025. Each round of licensing includes two dispensaries and six wholesale facilities per congressional district.

Critics of the microbusiness licenses argue that the licenses will further limit minority entrepreneurship. The awarding of licenses was also criticized as some awardees were representatives from out-of-state companies who used eligible people to apply on their behalf. Some companies were awarded multiple microbusiness licenses. In response to these allegations, the state revoked 11 of the 48 awarded licenses in December 2023.