JEFFERSON CITY — After Missouri regulators rejected most of the 2,200 license applications to do business in the state’s new medical marijuana industry, hundreds of spurned petitioners turned to an obscure state commission to appeal the decisions.
The , which currently has four governor-appointed members and resolves some 2,000 cases per year, saw more than 800 marijuana license appeals added to its workload.
But one former member of the commission wasn’t hearing any of those new cases: Audrey McIntosh, wife of prominent Jefferson City lobbyist Richard McIntosh.
In emails obtained by the Post-Dispatch under a public records request, Audrey McIntosh frequently cited a conflict of interest that prevented her from hearing medical marijuana license appeals.
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Richard and Audrey McIntosh at the annual Black Tie gala of Variety the Children’s Charity of 51ºÚÁÏ in 2015. (Photo via Ladue News).
“Since I have a conflict of interest on these cases, I looked for typos/etc. and procedural issues,†she wrote to fellow commissioner Renee Slusher in March 2020.
In a January email exchange over a case in which the commission ultimately ruled a company, Heya Excello, should receive a license after being denied by the state, she wrote: “Since I am conflicted out on the (medical marijuana) cases, I can’t issue any orders on them.â€
The emails don’t disclose her conflict of interest. But a person familiar with the matter who spoke to the Post-Dispatch on the condition of anonymity said Audrey McIntosh told the person in early 2020 that Richard McIntosh had received more than one medical marijuana license.
Neither Audrey McIntosh, who was replaced on the commission by Gov. Mike Parson in November, nor Richard McIntosh responded to requests for comment. A spokeswoman for Parson didn’t respond to a question about whether the conflict led to his decision to replace Audrey McIntosh on the commission.
Audrey and Richard McIntosh made headlines two years ago, when Richard McIntosh pushed for a change in state law to allow college students accused of sexual assault to hire attorneys and ask questions under cross-examination about their victims’ sexual history or drinking activities. Emails obtained by the Associated Press showed Richard McIntosh indicated that his wife played a role in crafting the language of the proposed legislation, which would have resulted in either the victim or the accused being able to transfer their cases to the Administrative Hearing Commission where she served. Their son had recently been expelled from Washington University.
Richard McIntosh is not personally listed as receiving a license on the . But the state has refused to release ownership structures of license applicants, so there is no way to know who the investors are in the licensed companies. No licensed marijuana companies show up on Audrey McIntosh’s personal financial disclosure, which lists her husband’s interests, but it’s impossible to know if some of the companies she lists hold interests in medical marijuana companies.
The influence of state government insiders and influential industry players on Missouri’s fledgling but potentially lucrative medical marijuana industry has spurred questions since its launch.
The medical licenses, which state regulators opted to cap at 338, the minimum number required under , could give their holders the first shot at recreational licenses if the state fully legalizes cannabis.
Already, the Post-Dispatch has documented multiple licenses being issued to groups with ties to board members of the , or MoCann, which was founded by legalization advocates.
Powerful lobbyist and former Missouri House Speaker Steve Tilley, a Parson ally, represents MoCann. And Richard McIntosh represents Tilley’s lobbying firm, Strategic Capitol Consulting, according to Missouri Ethics Commission filings.
A spokeswoman for Strategic Capitol Consulting said Richard McIntosh “does not provide any services†to the firm’s medical marijuana clients. She said she was unaware of any of Richard McIntosh’s medical marijuana business interests.
The newspaper last month reported medical marijuana regulators at DHSS have received three federal grand jury subpoenas from investigators.
Michael Wolff, a retired Missouri Supreme Court judge and former dean of 51ºÚÁÏ University Law School, in a 2020 op-ed said the state’s decision to cap marijuana licenses at the minimum allowed was enabling a “cartel†of insiders to run the new industry. He said this month that Audrey McIntosh “clearly†did the right thing by recusing herself from Administrative Hearing Commission decisions. But he added that the appearance — a conflicted member of the board that hears appeals from businesses shut out of the marijuana industry — “does make you feel a little squeamish.â€
Rejected applicants have pointed out in lawsuits and appeals that they received lower scores for exactly the same wording as winning licensees, bringing into question the objectivity of a third-party scoring firm the state hired to rate the applications. And the state has tried to shroud the program in secrecy, initially declining to even release the names of corporate entities that applied for licenses until the Post-Dispatch won an open records lawsuit requiring their release.
The state is still citing privacy provisions in the amendment and declining to release ownership structures of the applicants, concealing the real players behind them. Richard McIntosh’s involvement in the industry wasn’t previously known.
Wolff said the whole process has contributed to an erosion of trust in government.
“People have a right to know who is conducting the marijuana business in the state — it’s not like they’re selling marshmallows,†he said. “Do people get licenses for what they know or who they know?â€
Originally posted at 6 p.m. Tuesday.