More to Missouri’s Medical Marijuana Facility Application Form Than Meets the Eye

Many Missourians planning on applying for medical marijuana dispensary, extraction, and/or cultivation licenses looked forward to June 4, 2019 with anticipation. On that date, the Missouri Department of Health and Senior Services was required by Article XIV of the Missouri Constitution to “make available to the public license application forms and application instructions for medical marijuana cultivation facilities, medical marijuana testing facilities, medical marijuana dispensary facilities, and medical marijuana-infused products manufacturing facilities.”

At first glance, the application form and instructions released by the DHSS on June 4 is deceptively simple and brief, at only 5 pages in length. (Application form available at: https://health.mo.gov/safety/medical-marijuana/pdf/sample-facility-application.pdf).

However, devil is in the details. In addition to the application form, applicants must provide: (1) a certificate of good standing from the Missouri Secretary of State; (2) a completed ownership structure form, (3) a written description or visual representation of ownership structure; (4) proof of Missouri residency (5) any local government requirement replacing the department’s 1000 ft rule (6) a map of area surrounding proposed facility address showing compliance with the department’s 1000 ft rule or alternative local government requirement (7) descriptions, schematics, or blueprints for the proposed facility; (8) any local zoning requirements with explanation of facility’s compliance with those requirements, and (9 for any facility listed in this application as under substantially common control as the applicant entity, a written explanation of how the facility is under substantially common control, with supporting documentation. (Ownership structure form available at: https://health.mo.gov/safety/medical-marijuana/pdf/sample-ownership-structure-form.pdf).

Moreover, the “evaluation criteria” section of the application form requires that “[a]ll applications for Cultivation, Infused Products Manufacturing, Testing, and Dispensary Facilities MUST include responses to evaluation criteria questions.” These questions are the true “meat” of the application. The latest version of these questions was released to little fanfare on May 31, and includes important requirements like proof of at least $150,000 capitalization per dispensary and $300,000 per cultivation facility. In the most recent revision to these application questions, the DHSS provided word-count limits for the responses and clarified how the scoring system will work. (Application questions available at: https://health.mo.gov/safety/medical-marijuana/pdf/final-question-point-values-draft.pdf).

Those who intend to apply for medical marijuana facility licenses should be aware of all of the different elements that will comprise a competitive application. Our medical marijuana team understands how the pieces fit together, and can help to maximize your team’s chances of obtaining a license.

About Kennyhertz Perry’s Medical Marijuana Practice Group

Kennyhertz Perry advises clients on a wide range of medical marijuana business formation, compliance, and regulatory matters. Kennyhertz Perry has broad experience assisting clients with business formation and compliance in highly-regulated industries. Kennyhertz Perry partner Braden Perry spent time as a Senior Trial Attorney with the Commodity Futures Trading Commission and is well equipped to assist with the banking and other financial issues related to the medical marijuana industry.

Kennyhertz Perry partner John Kennyhertz is former in-house counsel at a private equity firm, and has structured transactions for very small and very large clients alike. He has substantial experience in highly-regulated industries such as online lending, and industries with rapidly-evolving regulations, such as cryptocurrency. He provides medical marijuana operational and compliance counseling, and offers advice on appropriate modifications of transaction structure and documentation.

Kennyhertz Perry attorney Ben Tompkins is a former federal prosecutor in Los Angeles as well as a former Trial Attorney for the U.S. Department of Justice Tax Division. He is well equipped to provide advice regarding the rapidly-evolving tax landscape in the medical marijuana industry.

Kennyhertz Perry attorney Arthur Chaykin is a former law school professor and head of litigation at Sprint. He is an expert on intellectual property law, and devises creative solutions to protect client’s IP in the medical marijuana industry, even when certain federal protections are unavailable.

Kennyhertz Perry attorney Jeff Donoho is a expert in small business formation and government compliance. His knowledge of the labyrinthine medical marijauan application process helps him provide detailed guidance to clients.

Kennyhertz Perry attorney Mit Winter is a former partner at at AmLaw 100 law firm. An expert litigator, his skill in anticipating issues before they become serious problems is valuable to all clients, and particularly those in the medical marijuana industry. In addition, his skill as a writer makes him a valuable asset to our application writing team.

Kennyhertz Perry attorney Jon Dedon previously worked in the complex litigation division of an AmLaw 100 law firm. Currently, he advises clients on medical marijuana regulatory and corporate structural matters. His contacts with executives in marijuana businesses in Washington, California, Michigan, New York, and California, as well as internationally in Germany, Canada, Colombia, and Australia prove valuable when advising clients regarding medical marijuana in Missouri. In addition, Jon’s relationship with the DHSS allows clients to seek clarification on elements of the application process that may be unclear.

Clients also benefit from Kennyhertz Perry’s experience in related areas of law, such as litigation, banking, securities, tax, intellectual property, employment, insurance, and its regular practice before the Missouri administrative agencies and courts. Medical marijuana clients choose Kennyhertz Perry because the firm’s lawyers tailor their advice to the unique issues presented by each matter they handle.

To learn more about Kennyhertz Perry, LLC, please visit kennyhertzperry.com.

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