Understanding Fines Related to Missouri Cannabis Compliance
Keeping up with Missouri's cannabis regulations is essential to operating a licensed cannabis facility. The Missouri Department of Health and Senior Services (DHSS) Division of Cannabis Regulation (DCR) sets these rules, and failure to comply can result in significant fines. Below, we've explained the situations in which fines may apply.
19 CSR 100-1.020 - Generally Applicable Provisions
In addition to establishing general regulatory requirements, 19 CSR 100-1.020 – Generally Applicable Provisions outlines the penalties that may apply when licensed cannabis facilities fail to comply with Missouri's cannabis regulations. This includes, but is not limited to, fines up to an amount equal to the average daily gross receipts of the previous calendar month of the facility.
Fines may be assessed for each day a licensee is in violation. Assessment of a fine does not bar additional penalties or further investigation.
19 CSR 100-1.030 - Complaints, Inspections, and Investigations
Under 19 CSR 100-1.030 - Complaints, Inspections, and Investigations, DHSS has the authority to inspect licensed cannabis facilities and investigate potential violations.
Inspections and investigations
The department may conduct an inspection or investigation of a licensee or facility at any time, including any part of the premises or records of a licensed or certified entity.
Licensees must provide documents or records requested as part of an inspection or investigation within 7 days of the department issuing the request, unless additional time is requested and granted.
Failure to timely provide requested documents or records may result in a fine of up to $5,000 for every day the requested documents or records have not been provided after the deadline.
Notices of Violation
The department may conduct a follow-up inspection or review of the licensee or its response to the Initial Notice of Violation.
During the inspection or review, if the department determines violations have not been cured or remedial actions have not been taken, the department may issue a Final Notice of Violation to the licensee. It will explain how:
The licensee continues to violate the department's regulations.
What remedial actions the department expects the licensee to take.
The license may be suspended or fined if the specified remedial actions are not taken or the violations are not cured within 30 days.
If the violations have not been cured or specified remedial actions have not been taken within 30 days after a Final Notice of Violation is sent, the department may suspend the license or fine it up to an amount equal to the average daily gross receipts of the previous calendar month of the facility per day, until the corrective or remedial actions have been taken by the licensee.
19 CSR 100-1.100 - Facilities Generally
Licensees have an ongoing duty to keep the department informed of certain information, as required by 19 CSR 100-1.100 – Facilities Generally. Failure of a licensee to report required information to the department may result in administrative penalties, including a fine of up to $10,000, suspension, or revocation of the license.
19 CSR 100-1.110 - Testing
Testing licensees must meet the accreditation standards outlined in 19 CSR 100-1.110 – Testing. Accreditation must be provided by an International Laboratory Accreditation Cooperation-recognized accreditation body under International Organization for Standardization (ISO)/International Electrotechnical Commission (IEC) standard 17025.
ISO/IEC 17025 Accreditation
Inspection and audit reports from the accrediting body shall be submitted to the department by the testing licensee within 24 hours of receipt.
During any periods of time when a licensee no longer conforms with ISO/IEC 17025, the licensee shall not conduct testing of marijuana product until approved by the department in writing, and may be subject to a fine of up to $1,000 for every day the facility is not in compliance.
If a licensee loses ISO/IEC 17025 accreditation or does not receive ISO/IEC 17025 accreditation within one year of receiving department approval to operate, the licensee shall not conduct testing of marijuana product, and may be subject to a fine of up to $1,000 for every day the licensee is not in compliance.
Sampling Requirements
Mandatory sample ordering and chain of custody requirements also apply to testing licensees. The violation of sampling requirements or manipulation of samples may result in fines up to $100,000 and suspension or revocation of the license.
19 CSR 100-1.130 - Inventory Control and Seed-to-Sale Tracking
Under 19 CSR 100-1.130 - Inventory Control and Seed-to-Sale Tracking, Missouri uses a statewide seed-to-sale tracking system to monitor inventory.
The department may impose a fine of up to $5,000 and may restrict, suspend, or revoke a seed-to-sale tracking system entity certification for:
Failure to comply with this rule.
Failure to abide by the department's Marijuana Application Programming Interface User Agreement.
Failure of a seed-to-sale tracking system entity to timely interface with the statewide track and trace system,
Persistent failure to interface with the statewide track and trace system.
Providing false or misleading information to the statewide track and trace system.
If a licensee or its employees or contractors fail to comply with the statewide track and trace system requirements, or if they intentionally misuse or falsify statewide track and trace system tracking data, the department may impose a fine of up to $50,000 and may restrict, suspend, or revoke the facility's license.
Stay Compliant With Marijuana Waste Regulations
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