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Judge rejects state's residency rule for medical marijuana

A federal judge has struck down Missouri's requirement that a majority of the owners of companies that dispense, grow or manufacture marijuana must be state residents.

U.S. District Judge Nanette Laughrey last week ordered a permanent injunction against the residency requirement. She had issued a temporary injunction against the rule in June.

Missouri voters approved creation of a medical marijuana industry in the state in 2018. One of the regulations required that state-licensed marijuana cultivation plants, dispensaries and manufacturing facilities must be at least 51% owned by Missouri residents.

The rule was challenged by a Pennsylvania-based investor, who argued it violated the U.S. Constitution.

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