A federal judge last week permanently blocked Missouri from enforcing a requirement that medical marijuana licenses go to businesses owned by residents of the state.
Following a bench trial Thursday, U.S. District Judge Nanette Laughrey agreed to grant a permanent injunction. Her written order has not yet been filed. News of the injunction was .
Laughrey in response to a 2020 lawsuit filed by Mark Toigo, a marijuana investor from Pennsylvania and minority owner in a Missouri business awarded several licenses.
A constitutional amendment approved by voters in 2018 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�
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%.
The requirement, the lawsuit says, 鈥渓imits Mr. Toigo鈥檚 economic opportunities in Missouri鈥檚 nascent marijuana industry.鈥�
In her June ruling granting a temporary injunction, Laughrey wrote that the public interest is best served by 鈥渢he protection of Toigo鈥檚 constitutional right to fully participate in the medical marijuana business in Missouri on the same footing as a Missouri resident, a right that is likely being violated by the state鈥檚 durational residency requirement.鈥�
In September, , bringing the total amount purchased in Missouri to $136 million since retail sales began in late October of last year.
The Department of Health and Senior Services could not be immediately reached for comment on the injunction or if there were any plans for an appeal.
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