Missouri Report Details Progress and Setbacks in Cannabis Microbusiness Program
Missouri regulators have released a new report offering the most detailed look yet at how the state’s cannabis microbusiness program has unfolded so far, including outreach efforts, license revocations, operational delays and plans for a third licensing round. The Chief Equity Officer Activity Report 2025, submitted by the Missouri Department of Health and Senior Services to the General Assembly in late December, outlines how the state is working to carry out the social and economic equity provisions embedded in Article XIV of the Missouri Constitution. Lesley Turek, who assumed the role of chief equity officer in June 2024, is charged with overseeing those efforts and ensuring that the microbusiness program functions as intended.
Microbusiness licenses were created as a lower-barrier entry point into Missouri’s marijuana market, reserved for individuals who meet specific eligibility criteria. Under the constitution, a minimum of 144 licenses must be issued across three lottery rounds, split between dispensaries and wholesale facilities and evenly distributed among Missouri’s eight congressional districts.
According to the report, state officials spent much of 2025 focused on outreach and education for existing license holders. The division hosted multiple town halls and compliance-focused learning sessions, drawing a total of 167 attendees over the year. Regulators also conducted facility tours and invited microbusiness licensees to participate in broader industry discussions through the Missouri Cannabis Regulation Collaborative.
At the same time, enforcement and verification emerged as a central theme. After receiving federal approval in late 2024 to conduct fingerprint-based background checks, the Division of Cannabis Regulation retroactively reviewed owners and agents tied to existing microbusiness licenses. Of the 116 owners subject to review, three failed background checks due to disqualifying felony offenses, leading to license revocations. Four additional owners failed to comply with fingerprinting requirements and remain under enforcement review.
A separate post-licensure verification process led to a significant number of revocations tied to ownership and eligibility issues. Of the 57 licenses issued in the second round, 32 received notices of pending revocation. Ultimately, 24 licenses were revoked for failing to demonstrate that eligible individuals maintained majority ownership and control, while one additional license was revoked due to a disqualifying felony offense. Those revocations took effect in April 2025.
Despite those setbacks, some progress was reported on the operational front. As of the end of 2025, 15 microbusiness facilities had received approval to operate, including three dispensaries and 12 wholesale operations spread across the first two licensing rounds. Many licensees, however, requested deadline extensions, citing challenges related to financing, construction and regulatory compliance. Regulators granted 25 deadline variances, allowing six-month extensions without penalty in qualifying cases.
The report also notes internal changes aimed at improving consistency and efficiency. An internal microbusiness workgroup was formed within the Division of Cannabis Regulation in August 2025, bringing together staff from multiple units to streamline communication, clarify expectations and better track licensee progress during the two-year operational window.
Looking ahead, state officials say revised rules must take effect before the third licensing round can begin. Proposed changes were filed with the secretary of state in November 2025 following a public comment period earlier in the year. Once finalized, the application window for the third lottery round will be announced, with additional outreach and education planned in advance.
Altogether, the report paints a picture of a program still finding its footing, balancing equity goals with regulatory enforcement while preparing for the final phase of licensing required under Missouri law.