In the Weeds: Missouri Settles With Producers, Treasury Seeks Input on Marijuana Businesses

In the Weeds: Missouri Settles With Producers, Treasury Seeks Input on Marijuana Businesses
CANNANNEW REPORT

June 15, 2022 Newsworthy Highlights SOURCE:  https://www.mcguirewoods.com/client-resources/Alerts/2022/6/mo-settles-with-producers Medical Cannabis Producers Enter Settlement to Resolve Allegations of Pervasive Irregularities. A group of Missouri-based medical cannabis producers including Archimedes Medical Holdings LLC, Holistic Health Capital LLC and FUJM LLC reached a comprehensive settlement agreement with the Missouri Department of Health and Senior Services to resolve alleged regulatory violations at the licensees’ facilities. The alleged violations involve “pervasive irregularities” that prevented regulators from evaluating whether products from the licensees’ cultivation facilities were properly tested for quality and safety, security camera outages that were not reported to regulators, and improper use of pesticides on their products. Among other things, the settlement requires the licensees to surrender several of their facility licenses and ensure that remaining products are either destroyed or transferred to another licensed manufacturing facility for processing. In addition, the licensees must execute a management agreement with a third-party operator to manage and operate the remaining facilities that the department will continue to permit in compliance with state law. Further, the settlement requires the licenses be fully transferred by the end of November 2022 or they will be automatically surrendered on Dec. 1, 2022. Notably, as part of the settlement, the primary licensees will be ineligible for future licenses. California Steps Up Tax Collection Efforts. The California Department of Tax and Fee Administration (CDTFA) has stepped up its attempts to collect about $200,000 in unpaid taxes from both illegal and licensed cannabis operations. The CDTFA has launched raids and auctioned off seized properties to collect unpaid taxes from illegal businesses that undercut legitimate businesses by skipping taxes and the licensing process. One of the CDTFA’s newest approaches is seizing and auctioning commercial properties connected to the illegal cannabis operations. The CDTFA auctioned three commercial properties related to illegal cannabis operations between March and May 2022, for a total of $616,000. The…

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Source : In the Weeds: Missouri Settles With Producers, Treasury Seeks Input on Marijuana Businesses

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