Missouri New Marijuana Regulations: Businesses License Risks For Event Organizers & Subpoenaing Cannabis Records

Author: Joana Scopel | July 31, 2023 04:57pm

With the recent legalization of adult-use cannabis in Missouri, residents now have the freedom to openly smoke marijuana at public events across the state, thanks to local government approval.

However, concerns have arisen about the Missouri Department of Health and Senior Services' ability to hold medical-marijuana businesses accountable for rule violations during these events, reported Missouri Independent.

Amy Moore, the director of Missouri's cannabis regulation, said: “If a licensee chooses to organize or offer an event to the public, they should be responsible for what happens."

See Also: Missouri's Small Cannabis Businesses Apply For Licenses, Driving Racial Equity Amidst $529M June Sales Surge

About The New Regulations

• Under the state's new cannabis regulations, officials now possess the authority to impose fines, suspend operations, or even revoke licenses should any unlawful activity occur at these gatherings.
• The provision regarding event organizing ignited an intense hour-long debate among legislators. While some expressed concerns about the department's broad authority, Moore clarified that penalties would be discretionary.
• Instances of punishable actions include medical marijuana business owners neglecting patients' medical history during certifications and home cultivators selling their products at events.

Initially met with apprehension from the Missouri Cannabis Trade Association, the rules were revised to focus specifically on event organizers, ensuring that licensees' First Amendment commercial free speech rights remain preserved.

See Also: Missouri Lawmakers Create Pathway For Cannabis Banking Access Amid Federal Talks On SAFE Act

• In a parallel development: Missouri regulators have been granted new competence to investigate licensed marijuana businesses and third-party entities by directly issuing subpoenas.
• Previously, regulators had to request records from businesses, which allowed room for evasion by keeping records with third-party contractors. This new subpoena authority will enable the Department of Health and Senior Services to access crucial information during investigations without involving a judge.
• The subpoena rule is part of the state's comprehensive 127-page cannabis guidelines, which were implemented following Missouri voters' approval of recreational marijuana.

Regulators view this measure as a balanced approach to enforcing compliance and effectively addressing any issues that may arise within the cannabis industry.

Price Action

• Cambria Cannabis ETF (BATS:TOKE) is up 0.98% at about $6.20 a share on Monday.
• Amplify Seymour Cannabis ETF (NYSE:CNBS) is up 3.43% at the last check on Monday, at about $4.06 a share.
• AdvisorShares Pure Cannabis ETF (NYSE:YOLO) is up 4.18% Monday at about $2.75.
• ETFMG Alternative Harvest (NYSE:MJ) is up 3.81 % at about $ 3.2701.
• AXS Cannabis ETF (NYSE:THCX) is up 5.46% at $1.9299.
• Global X Cannabis ETF (NASDAQ:POTX) is up 5.60% at the last check on Monday, hovering at around $7.16.

To keep abreast of these changes, not just in Missouri but also in Illinois and at the federal level, consider joining us at the 17th edition of the Benzinga Cannabis Capital Conference, which is returning to Chicago on Sept 27-28. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Read Next: Missouri Recreational Marijuana Sales And Their Impact On Illinois' Market, An Expert's View

Image Credits: gguy by Shutterstock and Kindel Media by Pixabay Edited by Benzinga

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