Missouri Regulators Seek to Crack Down on Bad Actors in Legal Cannabis Industry
The Missouri Division of Cannabis Regulation has proposed new rules aimed at penalizing and preventing bad actors from operating within the state’s legal cannabis industry. The proposed changes seek to clarify the consequences for facilities that have individuals with a history of rule-breaking in positions of power.
According to Division Director Amy Moore, the new rules would require facilities to disclose any changes in ownership or management to the state within a year of the change. If a facility is found to have an individual with a history of rule-breaking in a position of power, it could face fines of up to $100,000 or have its license suspended or revoked.
The proposed rules also aim to streamline the process for ownership changes, allowing publicly traded companies to own cannabis licenses and establishing procedures for recalling marijuana products that contain unregulated THC.
One of the key changes is the requirement for facilities to submit an annual report outlining ownership percentages for each entity or individual. This would allow regulators to more easily identify and address any potential issues with ownership or management.
The proposed rules also address the issue of agent identification cards, which would now be required for managers or decision-makers who work inside facilities. Individuals who have committed certain offenses would be ineligible for these cards.
The public has until March 10 to comment on the proposed rules, which are the second set of changes the division has sought public input on. The Missouri Cannabis Trade Association is working to submit feedback to the latest draft.
The proposed changes are intended to improve the efficiency of the regulatory process, reduce the time it takes to approve or deny business ownership change requests, and provide more opportunities for regulators to catch rule-breakers.
