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Missouri families with transgender kids pull up stakes as treatment ban becomes law

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Missouri families with transgender kids pull up stakes as treatment ban becomes law







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“If we stayed, she could not play sports. And pretty soon we will be looking at hormone blockers and that’s illegal. We don’t have time to wait,” said Sara Haluf, who holds the hand of her 10-year-old transgender daughter, as she and her husband Erez walk with their other children to the local neighborhood pool on Friday, June 2, 2023, in west St. Louis County.




ST. LOUIS COUNTY — Sara and Erez Haluf bought their “forever home” six years ago in west St. Louis County, a walking path away from Creve Coeur Park. They added a patio in the backyard with a fire pit for late-night marshmallow roasting.

Their three kids spend summers at the neighborhood pool and play make-believe games in the basement rec room. The Halufs could picture themselves as grandparents there, hosting rambunctious family dinners.

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In July, they are leaving those dreams behind and starting over a thousand miles away.

“We planted ourselves here,” Sara Haluf said. “And it all got ripped away.”







Idyllic childhood

“I feel fast underwater,” said the 10-year-old transgender daughter of Sara and Erez Haluf, as she swims with a mermaid tail on Friday, June 2, 2023, at her neighborhood pool in west St. Louis County.

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Last month, after years of failed attempts, Missouri joined 18 other Republican-led states in passing a law or policy that prohibits gender-affirming care for minors — leaving parents at a crossroads. Some are stockpiling medications or researching doctors in neighboring states. Others, like the Halufs, are uprooting their lives. The “political refugees,” as they call themselves, are teachers, lawyers, pastors, nurses and therapists. They are packing up, pulling their kids from school, and saying goodbye to friends and neighbors, cousins and co-workers.

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“We love it here. We don’t want to leave,” said Jennifer Harris Dault of Maryland Heights, who has a transgender daughter. “But the mental stress is too hard.”

Harris Dault and her husband scrutinized a map of LGBTQ policies by state. They wanted a place with established protections, and landed on New York. They will head to Rochester next month with their children, 8 and 5.

Under Senate Bill 49, which Missouri Gov. Mike Parson signed into law on Wednesday, no one younger than 18 will be able to start puberty blockers or hormone therapy, interventions for gender dysphoria endorsed by major professional organizations such as the American Medical Association. The restrictions for new patients kick in Aug. 28 and expire four years later. The legislation also bars Medicaid payments for gender-affirming medical care and prohibits gender surgery for prisoners.

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Tippy Toes

“I am going to make Oobleck,” a non-Newtonian fluid, says the daughter of Sara and Erez Haluf, who is transgender, as she gets water to add to her cornstarch on Friday, June 2, 2023, at her home in west St. Louis County.



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“We are simply trying to protect children,” said Rep. Brad Hudson after the bill was approved by the House on May 10. The Republican from Cape Fair sponsored the measure.

Adolescents already taking hormones can continue to do so. But the specter of more stringent regulations looms large, even for adults. A proposal that advanced in the House last session aimed to discontinue treatment for all minors. And an emergency order enacted — and later withdrawn — by Attorney General Andrew Bailey would have erected barriers for gender-affirming care regardless of a patient’s age.

Canceled appointments

The push to limit hormone therapy accelerated after a whistleblower report, released in February, alleged malpractice by the Washington University Transgender Center at St. Louis Children’s Hospital. The accusations by former case manager Jamie Reed, which the university has refuted, prompted an investigation by the attorney general.

Apprehension over legal and professional consequences has led some clinics — in Missouri and other states — to stop accepting new patients, postpone appointments and even cancel adult procedures.



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Leaving their forever home

The 10-year-old transgender daughter of Sara and Erez Haluf reads a book during quiet time in her room she decorated on Friday, June 2, 2023, at their home in west St. Louis County.




In some ways, families in the St. Louis area have an advantage over transgender folks in states that are landlocked by bans. Missouri’s law does not indicate that there will be penalties for taking minors across the river to see a doctor.

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Planned Parenthood’s eight offices in Missouri have already increased their hours for transgender patients, ages 16 and older, and held pop-up clinics in April to shoehorn new people into the system. The provider is expecting a rush at its Fairview Heights location in the Metro East come fall.

“We’re doing everything we can do to get patients what they need,” said spokesperson Julie Lynn.

Planned Parenthood has seen nearly as many transgender patients in the first five months of 2023 as it did all of last year. Some adults have reported that their doctors are no longer treating trans patients, Lynn said, or they are stuck on a waitlist at another health center.

Becky Hormuth of Wentzville completed an intake appointment for her 16-year-old son at Lurie Children’s Hospital of Chicago but was told two days later that its Gender Development Program was no longer going to treat out-of-state patients due to the influx in requests from border states that have passed care restrictions. A Lurie spokesperson declined to comment.

Terry Willits, 58, decided more than a year ago that he was ready for surgery, after four years on hormones and a lifetime of knowing he was transgender.

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“I had been hiding,” said Willits, who lives in St. John. “It’s not a magic wand kind of thing. But I feel healthier now than I have in 30 years.”

Two weeks before his May 23 appointment, his surgeon, a Washington University physician, called Willits. The surgery was canceled. Things felt too unsettled, the surgeon told him.

A university spokesperson would not comment on Willits’ surgery or how the transgender center plans to proceed when the law is enacted in August.

Willits is frustrated for himself but worries more about young people just coming up. He remembers what it was like, as a kid on a farm in Iowa, knowing he was different and there was nothing he could do about it.

“I consider myself collateral damage in all of this,” he said. “There are ways for adults to get what we need. But kids are just getting kicked in the head.”

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‘A slippery slope’

Families with children who are already under the care of endocrinologists say that although the watered-down bill that passed the Senate has spared their children — at least for now — they are not assuming they are in the clear.

“The fear is always there,” said the mother of a 16-year-old from Ballwin, who has taken to shielding her daughter from watching the news. “Could this be a slippery slope?”

Over the past few years, the number of people identifying as transgender, especially those younger than 25, has mushroomed, though the total is still estimated at less than 1% of the population. The debate over medical care is one facet of the cultural chasm that has engulfed complex and evolving views of gender identity.

A bill requiring athletes to compete on sports teams aligned with their sex assigned at birth also was just signed by Parson. Across the country, drag shows, bathroom access and classroom instruction have turned into political landmines. Several Florida cities have canceled Pride festivals, citing concerns for performers.

The rancor has spilled into marketing, with Anheuser-Busch and Target retreating from campaigns that drew ire from conservative commentators and threats from shoppers.

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Leaving their forever home

The 10-year-old transgender daughter of Sara and Erez Haluf carries a moving box from the garage to pack up some games on Friday, June 2, 2023, at her home in west St. Louis County.



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“I break down in private. I give myself 10 minutes,” the Ballwin mother said. “Then we gotta go crush the world.”

Susan Halla, president of TransParent, a national support and advocacy group based in St. Louis, has spent the past few months fielding calls from parents across the country.

“They’re all equally freaked out,” Halla said.

Nearly a third of transgender adolescents in the United States will be affected by new medical prohibitions, and another 15% are at risk of losing access to treatment, according to the Human Rights Campaign, an LGBTQ lobbying organization.

Halla’s son, who is transgender, no longer lives in Missouri. He graduated college in the spring and is putting down roots on the East Coast. Halla and her husband, both architects, are empty nesters in south St. Louis. They don’t like the idea of paying taxes in a state that “disavows my family’s very existence,” Halla said.

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But they have mixed feelings about leaving others who don’t have the means to move.

“We talk about it a lot,” said Halla. “Do we stay here and continue to fight? What does it look like when the national election cycle rolls around again?”

‘A game of chess’

Families of older children — most of whom aren’t directly affected by Senate Bill 49 — have been working on contingency plans for months, if not longer.

“We have multiple layers of safety plans,” said the mother of a 12-year-old from Wildwood. “It’s like a game of chess: ‘If this happens, we’ll have to do this. If that happens, we’ll have to do that.’”

A dad in south St. Louis meticulously measures out the testosterone his 16-year-old takes each day. They’ve acquired a small stockpile by not opening a new vial until the previous one is bone dry.

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Michael Walk of west St. Louis County thinks his family will make it through until their 17-year-old daughter, an aspiring Eagle Scout, graduates next year. But they’ve applied to a high school in Los Angeles and contacted doctors there, just in case.

“You can’t stint on your kids. You have to take care of them,” said Walk. He knows families who have left, and college-age kids who won’t come back home.







She's just a kid

The 10-year-old transgender daughter of Sara and Erez Haluf swings at the local neighborhood park on Friday, June 2, 2023, in west St. Louis County.

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“It’s a shame because these are wonderful and caring and brilliant people, and they are fleeing,” he said.

Who is leaving and where they are going is difficult to quantify.

“Does it matter how many move? If it’s two families, it’s too many,” said Cathy Renna of the LGBTQ Task Force, a nonprofit based in Washington. “And the reality is, if someone is so scared they’re going to move, they’re not going to broadcast it.”

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Katherine Sasser did announce her family’s decision to leave Missouri — at a Columbia School Board meeting last month.

Sasser, a mother of three, was elected to the board in 2021. The former teacher works for an educational nonprofit, and the board position felt like a good way to serve the district where her children attend and her ex-husband, their father, still teaches.

Sasser did everything she could to thwart the medical ban. Like dozens of other parents, she has been a regular in Jefferson City, sharing her family’s story:

As a toddler, Sasser’s daughter, now 11, clomped around the house in her mother’s high heels. She swiped a dress from her sister’s closet and refused to wear anything else. By first grade, she had socially transitioned and was “thriving” in school, Sasser would tell lawmakers.

At first, she felt like she might be getting through to them. But by last year, the tone had shifted. An onslaught of anti-trans bills petered out before the final day of the session, but Sasser and her ex-husband could see what was coming.

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“We defined where our line in the sand was,” said Sasser.

If a medical ban passed, they would leave the state where they grew up, fell in love, had their babies. Even after they split up as a couple, they lived blocks apart. Their new partners get along. All eight grandparents are nearby. They love their friends and neighbors.

But the tight network they had cultivated would not be enough if they could not get their daughter what she needed.

“None of us are safe,” Sasser said. “It’s not just the laws, but what’s in the water, what gets normalized in conversation.”

Transgender people are more vulnerable than the population at large to mental health conditions such as anxiety, depression and suicidal ideation. Research has shown that family and community support, as well as evidence-backed medical care, reduces those risks. 

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The 11-year-old’s next step will most likely be puberty blockers to pause the physical changes of her biological sex. After a couple of years, when she is ready and her doctors and parents agree, she will start estrogen so that she develops breasts and wider hips, like other girls. She won’t grow facial hair. Her voice won’t deepen.

Sasser has been outspoken about the agony that fueled her family’s decision to move, but buoyed by unexpected support. When she explained at the school board meeting last month why she had to resign, she received a standing ovation.

“It was probably one of the most touching moments of my life,” said Sasser.

Still, she’s not telling people where the family is headed — just that it’s a sanctuary state with enshrined protections.

Moving day

More than a dozen cities or states have identified themselves as refuges for trans people, mostly on the West Coast, New England and the Upper Midwest. Last month, St. Louis and Kansas City passed resolutions in support of trans residents.

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Mom: Missouri is moving in the wrong direction

“We are just going to miss the community of people here. We just love our street, it’s the best part of the neighborhood,” said Becky Biermann, right, as she starts to pack and purge items with her wife Anne Kraus on Monday, June 5, 2023, for their upcoming move from the Tower Grove South neighborhood. The couple, who have two children, including a 7-year-old transgender daughter, decided to move to Minnesota after Missouri passed laws that prohibit gender-affirming care for minors and restrict sport participation.



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Anne Kraus and her wife, Becky Biermann, have always felt safe with their two children in St. Louis, in their little oasis neighborhood of Tower Grove South. They thought that might be enough for them to hold their ground. By March, they knew it wasn’t.

“We have two big feelers as kids,” said Kraus. “When you have a young child who is targeted, it’s too much.”

This summer, they will relocate to Minnesota, which passed legislation designating it a haven for transgender people, like their 7-year-old daughter.

Moving day is coming up quickly for the Haluf family, too. Two months ago, Sara and Erez had a long talk after the kids were in bed. They could not risk the health of their 10-year-old, they decided.



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Leaving their forever home

“She’s just a kid. She is transgender, that should be the end of it. I have a happy kid,” said Sara Haluf, who eats dinner with her husband Erez on Sunday, June 4, 2023, at their home in west St. Louis County. The parents, who have a 10-year-old transgender daughter, will be moving their family to Maryland in July, after the Republican-led Missouri legislature passed laws prohibiting gender-affirming care for minors and restricting sports participation.




“Getting a child the care she needs is not a choice,” said Sara Haluf. “It’s not fair to our kid to stay here.”

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Their forever home went on the market May 5 and was under contract two days later. Haluf, a nurse practitioner, was offered a job at Johns Hopkins in Baltimore. They found a house there, the kids finished school, and the packing started.

“It’s been sad and upsetting,” Haluf said. “But we’re excited for a new adventure. That’s how we are framing it with the kids.”

Before they hit the road for Maryland on July 6, they’ll celebrate one last holiday here: Independence Day.







Leaving their forever home

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The daughters of Sara and Erez Haluf find Maryland after piecing together a United States puzzle map on Friday, June 2, 2023, at their home in west St. Louis County.




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Missouri

Missouri’s new governor hopes to reduce recidivism

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Missouri’s new governor hopes to reduce recidivism


JEFFERSON CITY, Mo. (First Alert 4) – Missouri’s new governor set a goal to reduce the number of people reoffending after they get out of prison.

Within minutes of swearing in, Missouri’s new Governor, Mike Kehoe, signed an executive order commanding the Department of Corrections to assemble a board that will review and revise the state’s parole rules. These rules have not been updated since 2017.

State officials said it’s too soon to know what implementing this executive order will look like, but blueprints are being drawn up right now. The Department of Corrections faces an October 1 deadline to complete a report on reducing recidivism.

The other executive orders issued are:

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— Create new regional operation to arrest known criminals

— Provide state grants to local law enforcement

— Train select officers to assist federal efforts to find illegal immigrants

— Collect immigration data on those charged with crimes

— Reduce time required to reach top salary with Missouri State Highway Patrol

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The Reentry Opportunity Center in Columbia helps those fresh out of prison reacclimate. It’s one of five state-funded facilities of its kind in Missouri. Director Jessica Chambers helps them build resumes, apply for jobs and find transportation.

“We don’t give them a handout,” Chambers said. “We give them a hand up so they can make it in the community here.”

For Chambers, it’s personal. She watched many of her family members go to jail growing up. However, through her six years of helping people readjust to life after prison, Chambers is proud every time she sees someone succeed.

“It does move to heart to see somebody be able to overcome the struggles of being attached with the stigma that comes with being incarcerated,” Chambers said.

Not everyone can be so fortunate, though. Within three years of getting out of prison, 31.6% of Missouri offenders find themselves back behind bars, according to a report from the Missouri Dept. of Corrections.

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The good news is that Missouri’s recidivism rate has decreased more than 10% over the last 10 years, according to Department of Corrections data. Chambers believes places like the ROC help.

“Having a support system is the best thing that people getting out of prison could do in order to stay from going back so to keep that recidivism rate going down,” Chambers said.



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Missouri

Kehoe orders flags at full-staff on Inauguration Day amid half-staff order to honor Carter

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Kehoe orders flags at full-staff on Inauguration Day amid half-staff order to honor Carter


Newly inaugurated Gov. Mike Kehoe has ordered flags to fly at full-staff across the state on Monday in honor of Inauguration Day.

Flags were ordered to fly at half-staff for 30 days after former President Jimmy Carter’s death in late December; the proclamation from President Joe Biden, based on U.S. flag code, ordered flags be lowered until Jan. 28.

Flying flags at half-staff signals the country is in mourning.

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Kehoe called his Wednesday executive order an “act of respect and patriotism” in a news release.

The move follows a similar order from Texas Gov. Greg Abbott to raise flags at the Texas Capitol and state buildings to full staff on the day President-elect Donald Trump is inaugurated. U.S. House Speaker Mike Johnson also ordered flags at the U.S. Capitol be flown at full-staff on Monday.

Kehoe said in the news release that his order aligns with a part of the federal flag code stating that flags should be displayed prominently on Inauguration Day.

“While Missouri continues to mourn the passing of former President Jimmy Carter and remembers his remarkable legacy of service to our nation by displaying our flags at half-staff, we will also celebrate the promise of a new chapter for our country and the opportunities that lie ahead,” Kehoe said in the news release. “To commemorate the democratic transition of power, I have directed all flags to be raised to full-staff for the inauguration of the 47th president of the United States, Donald J. Trump.”

Kehoe’s executive order applies to flags at the Capitol and on state buildings.

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Cannabis trade group pushes back on Missouri rules to combat ‘predatory’ practices • Missouri Independent

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Cannabis trade group pushes back on Missouri rules to combat ‘predatory’ practices • Missouri Independent


Missouri cannabis regulators and the state’s largest marijuana trade group agree that people should be banned from flooding the license lottery with applicants they recruit who are never intended to have any actual control or profits.

It’s a practice the Missouri Division of Cannabis Regulation has called predatory, and efforts to root it out of the state’s microbusiness program have resulted in 41 licenses being revoked or facing possible revocation. 

“We understand and agree with the intent of eliminating straw applicants and groups who are only interested in taking control of the licenses from such applicants, instead of a true partnership,” Andrew Mullins, president of the Missouri Cannabis Trade association, said in a letter to cannabis regulators last week.

But the details on how to do it are where differences emerge.

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The Missouri Division of Cannabis Regulation announced last month a series of proposed rules aimed at combating predatory financial agreements and other practices during the application process. The division will now incorporate public feedback before submitting the final rules to the Secretary of State’s office.

The microbusiness program, which was written into the Missouri 2022 constitutional amendment that legalized marijuana, was designed for the licenses to end up in the hands of disadvantaged business owners — including disabled veterans, those with lower incomes and people with non-violent marijuana offenses.

The new rules attempt to clarify that contracts that take away majority ownership and control from the eligible applicants do not meet the constitutional requirements for the microbusiness program.

In its letter, MoCann pushed back on the division’s “list of arrangements that indicate a license is not owned and operated by the eligible applicants.” 

On that list are “unexecuted” contracts that would take away control in the future. MoCann criticized the division for revoking licenses for having such agreements.

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“If a contract is unexecuted, it is not an agreement at all,” Mullins wrote. 

The letter reflects a key defense used in some of the appeals of licenses the division revoked last year. 

Mullins wrote that the proposed rules were too vague about what an “exploitive exit fee” is if applicants want to get out of an agreement, along with what “majority owned and operated” looks like in practice. Mullins also urged the state to consider a new rule — allowing licensees to sell majority ownership right after the license is issued, instead of after the business is up and running which is required currently.

“Seeking to protect microbusiness owners from their own decisions will only succeed in crushing that dynamism,” Mullins said of the proposed rules. “It might protect microbusiness licensees from exploitation, but it will also protect their businesses straight into insolvency.”

Sami Jo Freeman, spokeswoman for the division, said regulators are “in the process of reviewing this letter, as well as all comments received, prior to moving forward.” 

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Revocations and MoCann’s members

John Payne, managing partner at Amendment 2 Consultants, discusses legislation at an industry summit in downtown St. Louis on March 28, 2024, with Amy Moore (middle), director of the Division of Cannabis Regulation, and Mitch Meyers, partner at BeLeaf Medical (Rebecca Rivas/Missouri Independent).

State regulators have used a lottery system over the last two years to award 96 microbusiness licenses — a program sold to voters as a way to help victims of the War on Drugs get a toehold in the burgeoning cannabis industry. 

But of the 96 licenses issued so far, 41 have been either revoked or are currently at risk of being revoked. Another three are under investigation. 

A majority of those 44 licenses are connected to groups or individuals who flooded the lottery by recruiting people to submit applications and then offering them contracts that limited their profit and control of the business.

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Some of MoCann Trade’s key members are associated with the licenses under state scrutiny. 

The association’s general counsel is Eric Walter, an attorney who also represents cannabis investor Michael Halow. 

Halow is connected to more than 1,000 of the 3,600 applications submitted for Missouri’s lottery since the program began and 22 awarded licenses. But every one of those licences has been either revoked or was denied certification earlier in October by the division. 

An investigation by The Independent into one of these revoked licenses revealed that Halow signed a contract with a Black disabled veteran who told regulators she didn’t realize the agreement would give Halow full ownership of the business. 

Missouri cannabis consultant John Payne led the campaign to legalize recreational cannabis in 2022 and sits on MoCann’s board of directors. He is connected to nearly 500 applications and 12 awarded licenses since the program’s inception. 

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Payne received six notices of pending revocation in October for licenses where he serves as the designated contact, stating the agreements reflected that the licenses would not be “majority owned and operated” by eligible applicants. Three more current licenses are under investigation for the same reason. 

Seven of these licenses are connected to David Brodsky, who is MoCann’s microbusiness representative to the advisory board. 

Brodsky told The Independent in an email Monday that he didn’t provide any input into MoCann’s response to the letter. 

“I do agree with everything MoCann said in their response though,” he said.

Payne and Walter did not respond to The Independent’s request for comment.

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When asked if Payne or Walter had a hand in writing the comments to the state, MoCann’s spokesman Jack Cardetti said, “Rule and regulatory matters generally emanate from our 10-person government affairs committee, which is comprised of licensees, many of whom are attorneys.” 

Payne sits on the association’s government affairs committee. Cardetti further said, “As MoCann’s outside general counsel, Eric Walter is one of several who review these.”

The rules and contracts

The proposed rules would impact a number of contracts The Independent has analyzed.

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The Independent’s June investigation found that for some of the applications, Payne recruited eligible Missourians and had them sign a 47-page contract that would ultimately give him and his partners 90.1% of profits and majority control of the business. Despite only owning a fraction of the business, under state law the applicants would bear the lion’s share of the regulatory scrutiny. If they ever want to walk away from the deal, they would be required to pay a nearly $1 million fee.

Four legal experts who reviewed the contract for The Independent concluded it was unfair and potentially predatory. 

According to the proposed new rules, a license would not be considered owned and operated by the eligible applicants if the financial arrangement includes an “exploitive exit fee by a consultant or manager.” 

The proposed rules also address provisions found in Destiny Brown’s contract with Michael Halow. Brown, who qualifies as an eligible applicant because she’s a disabled veteran, signed a memo of understanding and promissory note giving Halow the right to convert the loan he promised to provide into 100% of the “membership interest” — or all of the profits and voting rights of the business.

The state revoked the license on seven grounds, including that the application included “false or misleading information” and the licensee withheld information.

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The proposed rule prohibits “agreements that the original majority eligible owner(s) in the application will not have majority ownership in the future.” That also includes any other documents, whether executed or in draft form, that may remove operational control from the eligible individuals listed in the application.

Halow told The Independent in an email last week that the proposed changes are “problematic.” 

“Specifically, by stipulating that eligible applicants who are not the original lottery winners cannot operate a recently issued license,” Halow wrote, “the state would effectively strip those individuals of their constitutionally granted right or privilege to operate these businesses, regardless of their ownership or lottery status.” 

MoCann suggests allowing agreements to sell majority equity of the business to occur after the state has issued the license. Currently, the licensees can only do that after the business has been approved to commence. 

“The ability to sell the license – including by contracting to sell prior to commencement – is a valuable backup plan for every licensee,” Mullins wrote in his letter.

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‘Operated by’

(Rebecca Rivas/Missouri Independent).

One contract associated with Brodsky established a board of three managers that would vote on all company decisions. The lender and the “consultant” each get to select a member. 

That left the qualified applicant with only one-third of the voting power.

Brodsky said his contract is valid because all board members meet the program’s eligibility requirements.

“The constitution only says that it must be majority owned and operated by eligible applicants,” Brodsky stated in an email to The Independent. “I am an eligible applicant as is everyone involved with Green Zebra LLC.”

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The validity of this type of board structure could potentially change by alternative language that MoCann proposed in its letter.

In the state’s definition of majority owned and operated, eligible individuals must also have the power to direct the management and policies of the license and enter into agreements. 

The association proposes to add the word “collectively” after individuals. It also proposes stating that, “Non-eligible owners may hold a  minority of voting rights, and the owners may hire management, managers, staff and enter into contracts that implement the decisions of the ownership collectively.”

The division’s definition also includes the phrase “must have a level of operational control that would be expected of an owner.” 

MoCann suggests an alternative definition that eligible majority owners don’t need to have “exclusive operational control” of the business, but they must have majority voting rights. This takes out any “vagueness,” the letter states, on what operational control means. 

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If they must indeed exercise exclusive and total control over the business, there is effectively no way for them to hire any managers, staff or vendors to assist with the business,” Mullins wrote. 

However, the division’s website states that, “the ‘owned and operated’ requirement does not prohibit microbusiness licensees from entering into management agreements for facility operations.”

Michael Wolff, a former chief justice of the Missouri Supreme Court and dean emeritus of the St. Louis University Law School, said he wouldn’t construe the state’s definition to prohibit somebody from hiring a manager — because that’s what would normally be expected of an owner. 

“I don’t think you can make a parade of horribles out of that language,” Wolff said. “I think that language was put in there with a good effect and good intent.”

The division stated in a press release last month that a “purported owner with little to no knowledge, control, agency or decision-making authority in an application or license does not meet the intent or meaning of the requirement in Article XIV.”

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Adolphus Pruitt, president of the St. Louis City NAACP and who helped write the microbusiness provision, sided with the division’s definition. 

It’s similar, he said, to a federal standard, known as the “commercially useful function” rule, used to weed out pass-through companies in contracts set aside for underrepresented business enterprises. 

“It ensures that underrepresented business enterprises are genuinely responsible for executing distinct elements of work by actively performing, managing,” Pruitt said, “and supervising their operations, thereby preventing token participation.”

Canna Zoned

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James Harnden says he didn’t realize that when he agreed to apply for a microbusiness license that the contract he signed gave him 100% ownership interest but no revenue or profits from the business. 

The contract was with Michigan-based cannabis group Canna Zoned. 

After the business passed through all the state and municipal approvals, the contract stated that Harnden would be required to sell his share of the business for $1 to the group or be held in breach of contract. 

Harden did not get a license, but the state revoked two other applicants connected to Canna Zoned.

Under the new rules, any entity who was the designated contact for a license that was previously revoked for failure to comply with the ownership and operation requirements will no longer be allowed to be involved in any capacity in a future microbusiness application.  

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All microbusiness applications in which such former designated contact has any involvement would be denied.

Jeffrey Yatooma, president of Canna Zoned and the designated contact for the two licenses revoked last year, told The Independent in an email last week that the proposed rule changes “reflect a fundamental misunderstanding” of the support that many applicants need to navigate the “labyrinthine system.” 

“These applicants often lack the experience or resources to manage the hurdles involved in obtaining full licensure,” Yatooma stated. “That’s exactly why they turn to us—to provide guidance, expertise, and a clear path forward. The assertion that these partnerships are somehow ‘predatory’ mischaracterizes the reality of the situation.”



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