- New rule allows Missouri state regulators to subpoena records directly from marijuana facilities.
- Previously, regulators had to go through a judge to request a subpoena.
- The rule aims to address potential hiding of records by businesses with third-party entities.
- The constitutional amendment legalizing medical marijuana in 2018 granted this power, but it wasn’t utilized until now.
- Concerns raised about the potential misuse of this power and its constitutional basis.
Missouri’s New Subpoena Power Over Marijuana Facilities
Missouri’s state regulators have been granted a new authority that might raise a few eyebrows in the marijuana industry. Previously, when these regulators wanted to investigate a licensed marijuana facility, they’d politely ask for the necessary records. However, some businesses found a loophole, potentially “hiding” records with their security companies or other third-party contractors. These third-party entities aren’t directly regulated by the state, creating a gray area.
Amy Moore, the director of the state’s cannabis regulation under the Missouri Department of Health and Senior Services, highlighted the challenge during a legislative committee meeting. She pointed out that without the ability to subpoena these records, businesses could easily decline to provide them.
What Does This New Rule Mean?
Effective from Sunday, the department can now issue subpoenas directly to licensed marijuana businesses and their third-party associates during investigations. This bypasses the previously required step of seeking a judge’s approval for a subpoena. Interestingly, the power to do this was granted back in 2018 when medical marijuana was legalized. However, the department hadn’t made a move to utilize this authority until now.
While this might sound like a significant shift, the department expects to use this rule sparingly. Most marijuana businesses, according to department spokeswoman Lisa Cox, comply with record requests. The real challenge arises when third parties, over which the department has no direct control, refuse to cooperate.
Concerns and Reassurances
The introduction of this rule wasn’t without its detractors. Some legislators expressed concerns about potential misuse. Senator Nick Schroer questioned the checks and balances in place, especially when dealing with third parties. Moore reassured that the department would be the one issuing the subpoena, preventing individual “employees from going rogue.”
The Breezy Take
Missouri’s move to grant regulators direct subpoena power over marijuana facilities is a clear signal of the state’s intent to tighten its grip on the burgeoning industry. While the rule aims to close a loophole, it’s essential to strike a balance to ensure businesses aren’t unduly burdened. As the marijuana industry continues to evolve, so too will the regulations governing it. The key will be ensuring these changes are made with transparency, fairness, and the best interests of both businesses and consumers in mind.
Original article: https://www.missouribusinessalert.com/government/state/missouri-regulators-can-now-subpoena-records-from-marijuana-facilities/article_273afcce-2fc2-11ee-97ef-f35fcdfb8c5f.html?fbclid=IwAR1GJ9gk7DQ1GbjscAOqDXfyNTU-hD1FgR28X-j0dI0S0SvW2tWAX8XdPbA