Mo. Code Regs. tit. 19 § 100-1.060

Current through Register Vol. 49, No. 20, October 15, 2024

Section 19 CSR 100-1.060 - Facility Applications and Selection

PURPOSE: This rule explains how medical and marijuana facility licensing and certification applications, with the exception of seed-to-sale tracking system entity applications, are submitted and how the Department of Health of Senior Services selects licenses and certificates.

(1) Conversion from a medical facility license to a comprehensive facility license.

(A) A medical facility licensee may request its medical facility license convert to a comprehensive facility license.

1. Conversion requests must be submitted in a department- provided, web-based application system.

2. Conversion requests shall include a plan that explains how the applicant will serve both the medical and adult-use markets, while maintaining adequate supply at a reasonable cost to qualifying patients.

3. Conversion requests shall include a plan to promote and encourage participation in the regulated marijuana industry by people from communities that have been disproportionately impacted by marijuana prohibition.

4. Conversion requests shall be accompanied by a nonrefundable fee of two thousand dollars ($2000).

5. A conversion request is deemed received when all required documents and fees are received by the department.

6. The department shall approve or deny conversion requests by email to the licensee's designated contact within sixty (60) days after the conversion request is received. Conversion requests not processed within sixty (60) days of department receipt shall be deemed approved.

7. If the comprehensive facility previously received approval to operate as a medical facility, the comprehensive licensee may begin operating without additional approvals or inspections from the department. If the comprehensive facility did not previously receive approval to operate as a medical facility, the comprehensive licensee may not operate until it requests a commencement inspection and receives approval to operate as a comprehensive facility.

8. A conversion request will be granted unless the medical facility licensee is not in good standing with the department. Good standing means the license is not suspended or revoked at the time the request is made.

(B) Converted comprehensive licenses will retain the same expiration date assigned to the medical license.

(2) Facility application process.

(A) The department will publish on its website time periods during which it will accept applications and, when applicable, publish the number of licenses to be selected by lottery. The department may extend an existing application time period by posting a new application deadline on its website.

(B) Applications will be considered complete if the application includes all documents required for applications by this rule.

(C) The department will receive applications for all medical and marijuana facility licenses or certifications electronically through a department-provided, web-based application system. In the event of application system unavailability, the department will arrange to accept applications in an alternative, department-provided format and will notify the public of those arrangements through its website.

1. The department shall charge each applicant seeking an available medical or marijuana facility license an application fee to be submitted with the application. The department shall publish the current fees, including any adjustments, on its website.

2. Application fees are nonrefundable, except that a microbusiness facility applicant not chosen by lottery may request a refund of its application fee.

A. 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.

B. The application fee will be refunded if the department determines the microbusiness facility applicant met the criteria to apply for a microbusiness facility license and the applicant has no pending or future legal actions related to the denial of the application. Issuance of a refund is not a determination from the department that the applicant is qualified for licensure or is entitled to a license in future applications

(D) The issuance of a facility license or certification does not authorize the facility licensee to begin activities related to marijuana authorized by the license. A facility licensee will be granted final approval to operate upon passing a commencement inspection.

(E) A facility license or certification shall be valid for three (3) years from its date of issuance.

(3) Application requirements. Entities must obtain a license or certification to operate a medical or marijuana facility in Missouri. Applications for facility licenses or certifications, except for off-site storage of marijuana product, shall include at least the following information:

(A) Name and address of the designated contact for the applicant entity;

(B) Legal name of the applicant entity, including fictitious business names;

(C) All owners of the applicant entity, with ownership percentage, and a visual representation of the facility's ownership structure;

(D) For all entities licensed or certified or applying for licensure or certification in Missouri to cultivate, manufacture, or dispense marijuana product, an attestation that the entity is not and will not be under substantially common control, ownership, or management as a testing facility;

(E) For a testing facility application, an attestation that the entity is not and will not be under substantially common control, ownership, or management as a cultivation facility licensee, manufacturing facility licensee, or dispensary facility licensee;

(F) For a microbusiness facility license application, an attestation that the applicant does not have an owner who is also an owner of an existing medical, comprehensive, or another microbusiness marijuana facility license;

(G) For medical and comprehensive facility applicants, a list of all owners who are also owners of a microbusiness facility license and the relevant microbusiness license number(s);

(H) Proposed address of the facility and-

1. An attestation that the proposed facility location complies with the facility location requirements of this chapter;

2. An attestation that the proposed facility location complies with any facility location requirements of the local government; and

3. A copy of, and a hyperlink to, all local government requirements for facility location, such as zoning requirements, if applicable. Applicable sections shall be highlighted in the copy of the regulations;

(I) 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;

(J) For facilities that will be cultivating marijuana, the cultivation practices(s) (indoor, outdoor, or greenhouse) used by the facility, and, if using a combination of practices, the ratio of cultivation space limits for each cultivation practice, as provided in the cultivation section of this chapter;

(K) An attestation that all individuals subject to analysis for disqualifying felony offenses will submit fingerprints within two (2) weeks after the application submission for a state and federal fingerprint-based criminal background check to be conducted by the Missouri State Highway Patrol;

(L) An attestation that no individual subject to analysis for a disqualifying felony offense has a disqualifying felony offense;

(M) All applicable fees; and

(N) For each comprehensive facility applicant, the application shall include a plan that explains how the applicant would serve both the medical and adult-use markets, while maintaining adequate supply at a reasonable cost to qualifying patients, and a plan to promote and encourage participation in the regulated marijuana industry by people from communities that have been disproportionately impacted by marijuana prohibition.

(4) In addition to the application requirements in section (3) above, microbusiness facility applicants must also provide the following:

(A) All entities, which includes individuals, with an ownership interest in the applicant entity, indicating ownership percentage, and a visual representation of the facility's ownership structure; and

(B) Documents demonstrating eligibility for microbusiness facility ownership as follows:

1. A valid (not expired) government-issued photo ID; and

2. For applicants claiming a net worth of less than two hundred fifty thousand dollars ($250,000) and low income-

A. Sworn financial statements demonstrating a net worth at the time of the application 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

B. 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.

3. For applicants claiming a service-connected disability:

A. A copy of the front of the applicant's current veteran health identification card demonstrating a service-connected disability; or

B. A copy of the applicant's VA benefit summary letter, dated within six (6) months before the date of the application, demonstrating a service-connected disability; or

C. A copy of the applicant's VA award letter, dated within six (6) months before the date of the application, demonstrating a service-connected disability; or

D. If none of these proofs are available, some other current evidence of service-connected disability which the department determines is sufficient proof of service- connected disability.

4. For applicants claiming an arrest, prosecution, or conviction for a non-violent marijuana offense-

A. A copy of the relevant arrest record; or

B. A copy of the relevant FBI background check; or

C. A copy of the relevant arrest record and a letter from the prosecutor's office indicating the charge filed; or

D. A copy of the relevant arrest record and a certified copy of the judgment of conviction; or

E. A copy of the relevant arrest record and a certificate of expungement from a court; or

F. If none of these proofs are available, some other evidence of the arrest, prosecution, or conviction which the department determines is sufficient proof of arrest, prosecution, or conviction of a non-violent marijuana offense; and

G. If the arrest, prosecution, or conviction was for the applicant's parent, guardian, or spouse-

(I) A valid (not expired), government-issued photo ID of the parent, guardian, or spouse; and

(II) Proof of relationship-

(a) A certified copy of the applicant's birth certificate; or

(b) A certified copy of the judgment of adoption or guardianship; or

(c) A certified copy of the marriage certificate; or

(d) If none of these proofs are available, some other evidence of relationship which the department determines is sufficient proof of relationship;

5. For applicants claiming residency in a ZIP code or census tract area where either thirty percent (30%) or more of the population lives below the federal poverty level or the rate of unemployment is fifty percent (50%) higher than the state average, the application must include-

A. Two (2) separate types of utility bills (i.e. one (1) water bill, one (1) electric bill) dated within the last four (4) months, which must include-

(I) The name of the applicant;

(II) The dates of service;

(III) The service address; and

(IV) The billing address; or

B. A copy of a current residential lease, which must include the name of the applicant, the full address, the date the lease went in to effect and expires, and an affidavit from the applicant stating the applicant resides at that address; or

C. A copy of a residential mortgage which includes the name of the applicant and the full address, and an affidavit from the applicant stating the applicant resides at that address; or

D. A copy of the applicant's real or personal property taxes, dated within the past twelve (12) months, which must include the applicant's name, address, and the date assessed; or

E. Other documentation sufficient to demonstrate residency; and

F. Documentation or screenshot from the most recent five- (5-) year estimates published by the American Community Survey of the U.S. Census Bureau, for the department to verify the claimed resident ZIP code tabulation area or census tract contains the qualifying poverty or unemployment rate.

6. For applicants claiming residency in a ZIP code or census tract area where the historic rate of incarceration for marijuana-related offenses is fifty percent (50%) higher than the rate for the entire state-

A. Two (2) separate types of utility bills (i.e. one (1) water bill, one (1) electric bill) dated within the last four (4) months, which must include:

(I) The name of the applicant;

(II) The dates of service;

(III) The service address; and

(IV) The billing address; or

B. A copy of a current residential lease, which must include the name of the applicant, the full address, the date the lease went in to effect and expires, and an affidavit from the applicant stating the applicant resides at that address; or

C. A copy of a residential mortgage which includes the name of the applicant and the full address, and an affidavit from the applicant stating the applicant resides at that address; or

D. A copy of the applicant's real or personal property taxes, dated within the past twelve (12) months, which must include the applicant's name, address, and the date assessed.

A list of qualifying ZIP codes in Missouri, using data obtained from the Missouri State Highway Patrol, is included herein. For individuals residing in a different state, the application must include data from a comparable state authority sufficient to demonstrate the claimed resident ZIP code or census tract contains the qualifying incarceration rate for marijuana offenses.

Zip Codes in Missouri with Qualifying Historic Rate of Incarceration
63050	63555	64469	65103	65483
63065	63556	64473	65104	65532
63066	63565	64477	65105	65536
63084	63633	64482	65106	65560
63101	63640	64601	65107	65565
63105	63645	64633	65108	65582
63150	63651	64640	65111	65607
63169	63664	64653	65201	65613
63188	63670	64683	65205	65622
63195	63736	64701	65212	65625
63199	63755	64759	65216	65653
63301	63779	64766	65233	65656
63302	63834	64772	65248	65661
63334	63857	64776	65259	65667
63361	63869	64856	65261	65668
63379	64028	65018	65265	65712
63380	64067	65020	65275	65721
63383	64068	65036	65299	65785
63435	64079	65041	65301	65801
63457	64085	65051	65302	65802
63459	64106	65055	65340	65805
63466	64184	65082	65401
63469	64187	65084	65402
63548	64198	65101	65409
63552	64424	65102	65466

7. For applicants claiming graduation from a school district that was unaccredited, or had a similar successor designation, at the time of graduation:

A. Documentation from the school district or a state accrediting authority sufficient for the department to verify that the school district was unaccredited at the time of graduation; and

B. An official copy of the applicant's high school diploma; or

C. A letter from the applicant's high school demonstrating that the applicant graduated from the school and the year the applicant graduated.

8. For applicants claiming residency in a ZIP code containing an unaccredited school district, or similar successor designation for three (3) of the past five (5) years:

A. Documentation from the school district or a state accrediting authority sufficient for the department to verify that the school district was unaccredited during at least one (1) of the three (3) years the applicant resided in the school district; and

B. A copy of two (2) separate types of utility bills (i.e. one (1) water bill, one (1) electric bill,) for each quarter of the three (3) years that the applicant claims to have lived in said location which must include:

(I) The name of the applicant;

(II) The dates of service;

(III) The service address; and

(IV) The billing address; or

C. Copies of residential leases for three (3) of the past five (5) years, which must include the name of the applicant, the full address, and the effective date and the expiration date of the lease; or

D. A copy of a residential mortgage which includes the name of the applicant and the address, along with an affidavit that the applicant resided at that address during the applicable years; or

E. A copy of three (3) of the last five (5) years' real or personal property taxes for the applicant, which must include the applicant's name, address, and the date; or

F. An applicant may provide any of the acceptable types of documentation for each year they are claiming residency in the ZIP code (i.e., utility bills from one year, lease from a separate year, and property taxes for a third year).

(C) For applicants claiming a service-connected disability, a copy of the front of the applicant's valid service-connected disability card;

(D) For applicants claiming an arrest, prosecution, or conviction for a non-violent marijuana offense-

1. A copy of the relevant arrest record; or

2. A copy of the relevant FBI background check; or

3. A certified copy of the relevant prosecutor's case file; or

4. A letter from the prosecutor's office indicating the charge filed; or

5. A certified copy of the judgment of conviction; or

6. A certificate of expungement from a court; and

7. If the arrest, prosecution, or conviction was for the applicant's parent, guardian, or spouse-

A. A valid, government-issued photo ID of the parent, guardian, or spouse; and

B. Proof of relationship-

(I) A certified copy of the applicant's birth certificate; or

(II) A certified copy of the judgment of adoption or guardianship; or

(III) A certified copy of the marriage certificate;

(E) For applicants claiming residency in a ZIP code or census tract area where either thirty percent (30%) or more of the population lives below the federal poverty level or the rate of unemployment is fifty percent (50%) higher than the state average (for qualifying areas in the state, a list of ZIP codes and census tracts will be published on the department's website)-

1. Two (2) separate types of utility bills (i.e., one (1) water bill, one (1) electric bill) dated within the last four (4) months, which must include-

A. The name of the applicant;

B. The dates of service;

C. The service address; and

D. The billing address; or

2. A copy of a current residential lease, which must include the name of the applicant, the full address, the date the lease went in to effect and expires, and an affidavit from the applicant stating the applicant resides at that address; or

3. A copy of a residential mortgage which includes the name of the applicant and the full address, and an affidavit from the applicant stating the applicant resides at that address; or

4. A copy of the applicant's real or personal property taxes, dated within the past twelve (12) months, which must include the applicant's name and the date assessed;

(F) For applicants claiming residency in a ZIP code or census tract area where the historic rate of incarceration for marijuana-related offenses is fifty percent (50%) higher than the rate for the entire state-

1. A certified letter from the local prosecutor's office verifying compliance with this requirement; and

2. Two (2) separate types of utility bills (i.e., one (1) water bill, one (1) electric bill) dated within the last four (4) months, which must include:

A. The name of the applicant;

B. The dates of service;

C. The service address; and

D. The billing address; or

3. A copy of a current residential lease, which must include the name of the applicant, the full address, the date the lease went in to effect and expires, and an affidavit from the applicant stating the applicant resides at that address; or

4. A copy of a residential mortgage which includes the name of the applicant and the full address, and an affidavit from the applicant stating the applicant resides at that address; or

5. A copy of the applicant's real or personal property taxes, dated within the past twelve (12) months, which must include the applicant's name and the date assessed;

(G) For applicants claiming graduation from a school district that was unaccredited, or had a similar successor designation, at the time of graduation, a certified letter from the Missouri Department of Elementary and Secondary Education indicating that the applicable school district was unaccredited in the year the applicant claims to have graduated from the school, and-

1. A certified copy of the applicant's high school diploma; or

2. A letter from the applicant's school, on school letter head, stating that the applicant graduated from the school; or

(H) For applicants claiming residency in a ZIP code containing an unaccredited school district, or similar successor designation, for three (3) of the past five (5) years, a certified letter from the Missouri Department of Elementary and Secondary Education indicating that the applicable school district was unaccredited in the year(s) the applicant claims to have lived there, and-

1. A copy of two (2) separate types of utility bills (i.e., one (1) water bill, one (1) electric bill,) for each quarter of the three (3) years that the applicant claims to have lived in said location which must include:

A. The name of the applicant;

B. The dates of service;

C. The service address; and

D. The billing address; or

2. Copies of residential leases for three (3) of the past five (5) years, which must include the name of the applicant, the full address, and the effective date and the expiration date of the lease; or

3. A copy of a residential mortgage which includes the name of the applicant and the address, along with an affidavit that the applicant resided at that address during the applicable years; or

4. A copy of three (3) of the last five (5) years' real or personal property taxes for the applicant, which must include the applicant's name, address, and the date; or

5. An applicant may provide any of the acceptable types documentation for each year they are claiming residency in the ZIP code (i.e., utility bills from one year, lease from a separate year, and property taxes for a third year).

(5) Application requirements for warehouses. Licensees must obtain a separate certification for each warehouse facility used for storing marijuana product at a location other than the approved location of the licensee. Such requests must be submitted after the licensee's facility has passed a commencement inspection and shall include at least the following information:

(A) Proposed blueprints for the facility 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;

(B) An attestation that the proposed location for the warehouse complies with the facility location requirements of this chapter and any facility location requirements of the local government;

(C) Documentation from the local government with jurisdiction over the facility's location confirming that the proposed warehouse location complies with local distance requirements, or stating that there are none;

(D) If the local government in which the warehouse will be located has enacted applicable zoning restrictions, documentation from the local government with jurisdiction over the offsite storage location confirming that the proposed location complies with applicable zoning restrictions;

(E) An attestation that the warehouse will comply with all other rules applicable to the facility for which the warehouse is being established; and

(F) An administrative and processing fee of five thousand dollars ($5000).

(G) Approved warehouse certificates shall have the same expiration and renewal date as the facility for which the warehouse is being established.

(6) Application approval and denial process.

(A) In cases where there are more applicants than available licenses or certificates, the department will select applicants for available licenses or certifications by lottery.

1. All timely applications submitted with an application fee during an application time period will be entered into the lottery. Untimely applications or applications without an application fee will be denied.

2. Applications entered into the lottery will be assigned an application identifier by the department. The assigned identifiers will be transmitted to the entity conducting the lottery. The individual(s) conducting the lottery will do so without reference to the identities of the applicants.

3. Identifiers will be randomly drawn and listed in the order drawn. If licenses are issued by congressional district, separate drawings will occur for each congressional district.

4. After identifiers are drawn, the department will review the application corresponding to the selected identifier, beginning with the first identifier drawn, to determine if the applicant is eligible for licensure prior to issuing the license.

A. Applicants are responsible for submitting a complete and accurate application as set out in this chapter. However, the department may request an applicant to 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 from the date the email is sent to provide the requested information or documents.

5. If during the application review period, the department determines an application meets all of the license eligibility requirements in this chapter and Article XIV, the license will be issued.

6. An application will be denied if-

A. The application is not complete;

B. The applicant, application, or any proposal in the application, is in violation of any rule in this chapter or Article XIV;

C. Awarding a license would result in an entity being an owner in more licenses than permitted by Article XIV Section 2.3(9-11);

D. The applicant provides false or misleading information in an application;

E. The applicant fails to timely provide information or records requested by the department;

F. An entity, which includes an individual, holds an ownership interest in more than one (1) microbusiness applicant in the same microbusiness application period, all microbusiness applications where the entity holds an ownership interest will be denied;

G. The department determines an application fails to meet the license eligibility requirements in this chapter and Article XIV.

7. If an application is denied, the department will review the next application in the order drawn until the available licenses or certifications are issued.

8. Once all available licenses or certifications are issued, the remaining applications entered into the lottery for that application time period will be denied for failure to be selected in the lottery.

(B) In cases where fewer applications are received in an application time period than there are available licenses or certifications, or for applications for licenses and certifications without a limit on the number to be issued, all complete applications meeting the license eligibility requirements in this chapter and Article XIV will be granted. Applications will be denied if subject to denial in paragraph (6)(A)6.

(C) Any denial shall be issued by the department in writing to the applicant and shall include the specific reasons for the denial and the process for requesting review of the department's decision.

(D) All applicants that are issued a license or certification will be given forty-eight (48) hours to confirm they accept the license or certification. Failure to accept the license or certification in this time frame may result in deactivation of the license or certification, and the department may then offer a license or certification to the next eligible applicant in the order drawn.

(7) Renewals. 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.

(A) Renewal requests shall be accompanied by a nonrefundable renewal fee to be submitted with the request. The department shall publish the current fees, including any adjustments, on its website at http://cannabis.mo.gov.

(B) A renewal request is deemed received when both the request and renewal fee is received by the department.

(C) Except for good cause, a renewal request will be granted unless the facility licensee is not in good standing with the department. Good standing means the license is not suspended or revoked at the time the request is made.

19 CSR 100-1.060

Adopted by Missouri Register March 1, 2023/Volume 48, Number 5, effective 2/3/2023

Amended by Missouri Register June 15, 2023/Volume 48, Number 12, effective 7/31/2023