Mississippi Code 1972 (2023) › Title 41 - PUBLIC HEALTH (§§ 41-1-1 — 41-149-NEW-003) › Chapter 137 - MISSISSIPPI MEDICAL CANNABIS ACT (§§ 41-137-1 — 41-137-67) › Section 41-137-35 - Licensing of medical cannabis establishments

(1)
The MDOH shall issue licenses for cannabis cultivation facilities, cannabis processing facilities, cannabis transportation entities, cannabis disposal entities, cannabis research facilities and cannabis testing facilities. The MDOR shall issue licenses for medical cannabis dispensaries.
(2)
The cannabis cultivation facility license application fee shall be subject to the following tiers:
(a)
Micro-cultivators.
(i)
Tier 1. A cannabis cultivation facility with a canopy of one thousand (1,000) square feet or less shall be subject to a one-time nonrefundable license application fee of One Thousand Five Hundred Dollars ($1,500.00). The annual license fee shall be a nonrefundable fee of Two Thousand Dollars ($2,000.00).
(ii)
Tier 2. A cannabis cultivation facility with a canopy of more than one thousand (1,000) square feet but not more than two thousand (2,000) square feet shall be subject to a one-time nonrefundable license application fee of Two Thousand Five Hundred Dollars ($2,500.00). The annual license fee shall be a nonrefundable fee of Three Thousand Five Hundred Dollars ($3,500.00).
(b)
Cultivators.
(i)
Tier 1. A cannabis cultivation facility with a canopy of not less than two thousand (2,000) square feet but not more than five thousand (5,000) square feet shall be subject to a one-time nonrefundable license application fee of Five Thousand Dollars ($5,000.00). The annual license fee shall be a nonrefundable fee of Fifteen Thousand Dollars ($15,000.00).
(ii)
Tier 2. A cannabis cultivation facility with a canopy of not less than five thousand (5,000) square feet but not more than fifteen thousand (15,000) square feet shall be subject to a one-time nonrefundable license application fee of Ten Thousand Dollars ($10,000.00). The annual license fee shall be a nonrefundable fee of Twenty-five Thousand Dollars ($25,000.00).
(iii)
Tier 3. A cannabis cultivation facility with a canopy of not less than fifteen thousand (15,000) square feet but not more than thirty thousand (30,000) square feet shall be subject to a one-time nonrefundable license application fee of Twenty Thousand Dollars ($20,000.00). The annual license fee shall be a nonrefundable fee of Fifty Thousand Dollars ($50,000.00).
(iv)
Tier 4. A cannabis cultivation facility with a canopy of not less than thirty thousand (30,000) square feet but not more than sixty thousand (60,000) square feet shall be subject to a one-time nonrefundable license application fee of Thirty Thousand Dollars ($30,000.00). The annual license fee shall be a nonrefundable fee of Seventy-five Thousand Dollars ($75,000.00).
(v)
Tier 5. A cannabis cultivation facility with a canopy of not less than sixty thousand (60,000) square feet but not more than one hundred thousand (100,000) square feet shall be subject to a one-time nonrefundable license application fee of Forty Thousand Dollars ($40,000.00). The annual license fee shall be a nonrefundable fee of One Hundred Thousand Dollars ($100,000.00).
(vi)
Tier 6. A cannabis cultivation facility with a canopy of not less than one hundred thousand (100,000) square feet but not more than one hundred fifty thousand (150,000) square feet shall be subject to a one-time nonrefundable license application fee of Sixty Thousand Dollars ($60,000.00). The annual license fee shall be a nonrefundable fee of One Hundred Fifty Thousand Dollars ($150,000.00). Tier 6 cannabis cultivation facilities shall have not more than two (2) locations; however, the total canopy space of both locations combined may not exceed one hundred fifty thousand (150,000) square feet.
(3)
The cannabis processing facility license application fee shall be subject to the following tiers:
(a)
Micro-processors.
(i)
Tier 1. A cannabis processing facility which processes less than two thousand (2,000) pounds of dried biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Two Thousand Dollars ($2,000.00). The annual license fee shall be a nonrefundable fee of Three Thousand Five Hundred Dollars ($3,500.00).
(ii)
Tier 2. A cannabis processing facility which processes not less than two thousand (2,000) pounds but less than three thousand (3,000) pounds of dried biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Two Thousand Five Hundred Dollars ($2,500.00). The annual license fee shall be a nonrefundable fee of Five Thousand Dollars ($5,000.00).
(b)
Processors. A cannabis processing facility which processes not less than three thousand (3,000) pounds of biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Fifteen Thousand Dollars ($15,000.00). The annual license fee shall be a nonrefundable fee of Twenty Thousand Dollars ($20,000.00).
(4)
A medical cannabis dispensary shall be subject to a one-time nonrefundable license application fee of Fifteen Thousand Dollars ($15,000.00). The annual license fee shall be a nonrefundable fee of Twenty-five Thousand Dollars ($25,000.00).
(5)
Cannabis transportation entities shall be subject to a one-time nonrefundable application fee of Five Thousand Dollars ($5,000.00). The annual license fee shall be a nonrefundable fee of Seven Thousand Five Hundred Dollars ($7,500.00).
(6)
Cannabis disposal entities shall be subject to a one-time nonrefundable application fee of Five Thousand Dollars ($5,000.00). The annual license fee shall be a nonrefundable fee of Seven Thousand Five Hundred Dollars ($7,500.00).
(7)
Cannabis testing facilities shall be subject to a one-time nonrefundable application fee of Ten Thousand Dollars ($10,000.00) and an annual license fee of Fifteen Thousand Dollars ($15,000.00). An individual or business entity that has a direct or indirect ownership or economic interest in a licensed cannabis testing facility may also have a direct or indirect ownership or economic interest in a licensed medical cannabis transportation entity. A cannabis testing facility may enter into an agreement for the transportation of medical cannabis by a licensed medical cannabis transportation entity. MDOH may contract with a private laboratory for the purpose of conducting compliance testing oversight of medical cannabis testing facilities licensed in the state. Any such laboratory under contract for compliance testing oversight shall be prohibited from conducting any other commercial medical cannabis testing in this state.
(8)
Cannabis research facilities shall be subject to a one-time nonrefundable application fee of Ten Thousand Dollars ($10,000.00) and an annual license fee of Fifteen Thousand Dollars ($15,000.00). A research facility at any university or college in this state shall be exempt from all fees imposed under this section.
(9)
No individual or business entity shall have a direct or indirect ownership or economic interest of greater than ten percent (10%) in:
(a)
More than one (1) cannabis cultivation facility license;
(b)
More than one (1) cannabis processing facility license; and
(c)
More than five (5) medical cannabis dispensary licenses.
(10)
Minimum qualifications for applicants for a cannabis cultivation facility, a cannabis processing facility, a medical cannabis dispensary, a medical cannabis transportation entity or a medical cannabis disposal entity license(s) are as follows:
(a)
An individual applicant for a cannabis cultivation facility, cannabis processing facility, medical cannabis dispensary, medical cannabis transportation entity or medical cannabis disposal license shall be a natural person who:
(i)
Is at least twenty-one (21) years of age;
(ii)
Has not previously held a license for a cannabis cultivation facility, cannabis processing facility, medical cannabis dispensary, medical cannabis transportation entity or medical cannabis disposal entity that has been revoked;
(iii)
Has not been convicted of a disqualifying felony offense;
(iv)
If possessing a professional or occupational license, that the license is in good standing;
(v)
Has submitted a sworn statement indicating that he or she is a true and actual owner of the entity for which the license is desired, and that he or she intends to carry on the business authorized for himself or herself and the entity and not as the agent for any other entity.
(vi)
Has no outstanding tax delinquencies owed to the State of Mississippi;
(vii)
Is not serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022;
(viii)
Is not the spouse of a person serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and
(b)
If the applicant is applying on behalf of an entity, in addition to paragraph (a) of this subsection, the individual applicant shall:
(i)
Be legally authorized to submit an application on behalf of the entity;
(ii)
Serve as the primary point of contact with the MDOR and MDOH;
(iii)
Submit sufficient proof that the entity has no owner, board member, officer, or anyone with an economic interest in the entity who:
1.
Is under the age of twenty-one (21);
2.
Has previously been an owner of a medical cannabis dispensary, cannabis cultivation facility, a cannabis processing facility, medical cannabis transportation entity or medical cannabis disposal entity that has had its license revoked;
3.
Has been convicted of a disqualifying felony offense;
4.
Owes delinquent taxes to the State of Mississippi;
5.
Is serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and
6.
Is the spouse of a person serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and
(iv)
Submit sufficient proof that if an owner, board member, officer or anyone with an economic interest in the entity has or had a professional or occupational license, that the license is in good standing.
(11)
[Repealed]
(12)
A micro-cultivator or a micro-processor shall both meet the minimum qualifications in subsection (10) of this section and shall also submit sufficient proof of the following:
(a)
If a natural person, proof that the person has been a resident of the State of Mississippi and a citizen of the United States of America for at least three (3) years prior to the application date; or
(b)
If a business entity, provide proof that:
(i)
It was registered as an entity with the Secretary of State in Mississippi; and
(ii)
One-hundred percent (100%) of the equity ownership interests in the entity are held by individuals who have been residents of the State of Mississippi and citizens of the United States of America for at least three (3) consecutive years prior to the application date.
(13)
For purposes of this section, it shall be sufficient to prove Mississippi residency for the individual(s) to submit two (2) of the following source documents:
(a)
Mississippi Tax Return Form 80-105 or Form 80-205 for each of the three (3) years preceding the application without schedules, worksheets, or attachments, and redacted to remove all financial information and all but the last four (4) digits of the individual's social security number for the three (3) years preceding the application;
(b)
Ownership, lease, or rental documents for place of primary domicile for the three (3) years preceding the application;
(c)
Billing statements, including utility bills for the three (3) years preceding the application; or
(d)
Vehicle registration for the three (3) years preceding the application.
(14)
Ownership in a cannabis cultivation facility license, cannabis processing facility license or a medical cannabis dispensary license or investment in a business that supports or benefits from such a license shall not disqualify or otherwise negatively impact the license or finding of suitability of such owner who is otherwise engaged in any other form of business operation in the state, if such business requires the owner to hold a license or be found suitable under state law.
(15)
Any business or state entity applying for registration as a medical cannabis establishment must meet all the requirements specified in this chapter.
(16)
A prospective medical cannabis establishment shall submit all of the following:
(a)
An application, including:
(i)
The legal name of the prospective medical cannabis establishment;
(ii)
The physical address of the prospective medical cannabis establishment, which shall not be within one thousand (1,000) feet of the nearest property boundary line of a school, church or child care facility which exists or has acquired necessary real property for the operation of such facility before the date of the medical cannabis establishment application unless the entity has received approval from the school, church or child care facility and received the applicable waiver from their licensing agency, provided that the main point of entry of the cannabis establishment is not located within five hundred (500) feet of the nearest property boundary line of any school, church or child care facility;
(iii)
The name of each principal officer and board member of the proposed medical cannabis establishment; and
(iv)
Any additional information requested by the MDOR and MDOH.
(b)
Operating procedures consistent with rules and regulations for oversight of the proposed medical cannabis establishment, including procedures to ensure accurate record keeping and adequate security measures.
(c)
If the municipality or county where the proposed medical cannabis establishment would be located has enacted zoning restrictions, a sworn statement certifying that the proposed medical cannabis establishment is in compliance with the restrictions.
(d)
If the municipality or county where the proposed medical cannabis establishment would be located requires a local registration, license or permit, then proof of receiving such registration, license or permit.
(e)
If the application is on behalf of an entity, verification that none of the principal officers or board members have served as a principal officer or board member for a medical cannabis establishment that has had its license revoked.
(f)
If the application is on behalf of an entity, verification that none of the principal officers or board members is under twenty-one (21) years of age.
(17)
If a dispensary license is issued to an applicant that is still constructing the licensed premises, the applicant must complete construction and fulfill all obligations required by the Department of Revenue to open for business within eighteen (18) months, or the license shall be revoked.
(18)
The MDOR and MDOH shall issue a renewal registration certificate within ten (10) days of receipt of the prescribed renewal application and renewal fee from a medical cannabis establishment if its license is not under suspension and has not been revoked.
(19)
A licensing agency shall require disclosure only of persons, entities or affiliated entities who directly or indirectly own ten percent (10%) or more of a medical cannabis establishment issued a license by the licensing agency.
(20)
Otherwise eligible applicants for licenses to operate as medical cannabis establishments under this chapter shall not be disqualified from receipt of a license based on:
(a)
Their location on Mississippi Choctaw Indian Reservation Lands; or
(b)
The involvement of the Mississippi Band of Choctaw Indians or any entity owned or operated by the Mississippi Band of Choctaw Indians as an owner or co-owner of such license, provided that such license shall be subject to revocation for material noncompliance with this chapter on the same basis as any other license.
(21)
A cannabis processing facility that produces edible cannabis products shall hold a permit to operate as a food establishment and shall comply with all applicable requirements for food establishments as set by the MDOH.
(22)
Any cannabis that contains less than three tenths percent (.3%) THC that was addressed by the 2018 Farm Bill, Public Law No. 115-334, shall be exempt from regulations applicable to medical cannabis establishments licensed under this chapter.
Amended by Laws, 2023, ch. 436, HB 1158,§ 3, eff. 3/27/2023.
Added by Laws, 2022, ch. 303, SB 2095,§ 18, eff. 2/2/2022.