A federal lawsuit filed last week seeks to strike down a Missouri requirement that medical marijuana licenses go to businesses owned by residents of the state.
that legalized medical marijuana requires facilities to be 鈥渕ajority owned by natural persons who have been citizens of the state of Missouri for at least one year prior to the application.鈥�
Mark Toigo, a marijuana investor from Pennsylvania, is suing to overturn that requirement.
According to state records, Toigo is a minority owner in Organic Remedies MO Inc., which was awarded three dispensary licenses, one cultivation license, and one marijuana-infused product manufacturer license.
Toigo argues by enforcing the residency requirement, the state is discriminating against non-residents and violating the dormant commerce clause of the U.S. Constitution.
He filed his lawsuit on Friday against the Missouri Department of Health and Senior Services, as well as its director, Randall Williams, in the United States District Court for the Western District of Missouri.
鈥淭he real effect of the residency requirement has been and will continue to be to stifle Missouri鈥檚 medical marijuana program by severely restricting the flow of investment into the state,鈥� the lawsuit says. This will mean that Missouri鈥檚 medical marijuana businesses will not be able to access the capital necessary to build a vibrant, viable, and successful industry.鈥�
A spokeswoman for the Department of Health and Senior Services declined comment.
Toigo鈥檚 lawsuit joins a spate of similar litigation around the country challenging similar restrictions on marijuana licenses. In Oklahoma, for example, a lawsuit filed earlier this year by a Washington-based company is challenging the state鈥檚 two-year residency requirement.
In Maine, a federal judge earlier this year.
It鈥檚 little wonder, given how lucrative licenses to grow, sell and manufacture medical marijuana have become.
Toigo argues in his lawsuit that Missouri鈥檚 medical marijuana market is expected to reach retail sales of $175 million to $275 million a year. But because of the residency rules he is prohibited from investing more money into any Missouri company if it increases his ownership stakes above 49 percent.
The requirement, the lawsuit says, 鈥渓imits Mr. Toigo鈥檚 economic opportunities in Missouri鈥檚 nascent marijuana industry.鈥�
The St. Louis Post-Dispatch reported that as of Friday in Missouri, along with 11 cultivation sites and one manufacturer of cannabis-infused products.
While businesses begin to come online, the rocky rollout of the medical marijuana program in Missouri continues to draw scrutiny.
A lawsuit in Cole County Circuit Court to businesses.
Meanwhile, more than 700 appeals of rejected licenses are still pending with the Administrative Hearing Commission.
And hovering in the background is and a host of interviews with state lawmakers, lobbyists and those involved in the industry.
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