The Division of Cannabis Regulation will not require marijuana companies to pay annual fees before converting to adult use licenses

On Friday, licensed marijuana facilities in Missouri received notice from the Department of Health and Senior Services notifying them that the Division of Cannabis Regulation, the rebranded Section for Medical Marijuana Regulation, would begin granting a variance for annual fees for companies requesting to convert to a comprehensive facility license.

The waiver allows those companies that would have to pay annual fees to wait until approval of their conversion to comprehensive licenses to make payment for the new license type and modified fees.

“Dear Missouri Licensed Cultivation, Infused Product Manufacturing, or Dispensary Facility:

Per 19 CSR 30-95.025(2)(A), the Division of Cannabis Regulation is granting a variance from 19 CSR 30-95.040(1)(H) for the annual fee payment that is due no later than 30 days after the date the facility received its facility license approval notice from the Department. This waiver is only for those licensees who plan to submit a request to convert to a comprehensive license.

For license fees due in December 2022 through January 2023, licensees who apply for a comprehensive facility license are not required to remit annual fees by their due date. Instead, licensees should remit their annual fee payment within fifteen (15) days after approval or denial of the request to convert the license. For licensees that will not apply for a comprehensive license, they must remit the annual fee according to rule.

The Department has determined good cause for granting this variance is that entities that convert to comprehensive licenses should pay their annual fee to the regulatory fund that will support services related to that license.”

Application fees for those converting to a comprehensive license will be $12,000 per cultivation license and $7,000 per dispensary or manufacturing license.

Renewal fees will drop to $5000 for cultivation facilities and $3000 for manufacturing and dispensary facilities, per license, when operators renew in three years.

Annual license fees for a comprehensive cultivation facility will be $25,000, while dispensary and manufacturing licenses will be charged $10,000  per license respectively.

All fees may be adjusted and increased or decreased annually by percentage to parallel the Consumer Price Index published by the U.S. Department of Labor.