Draft Rule Update 5/17 Analysis

Draft Rule Update 5/17 Analysis

By Brandon Dunn

DHSS released its first set of updates to rule drafts since the public comment period and advisory committees ended last week.

Included were changes both big and small in each category, updated evaluation questions (post – committees), penalties, and clarifications.

Here is what we learned over the weekend.

The department has a built-in failsafe in 19 CSR 30-95.025(2) Variances.

The rule allows the department to make exceptions and waivers to any part of the chapter. Anything that could be legally challenged can be amended on the fly with due cause.

(A) The department may waive, for good cause, provisions of this chapter on its own initiative or by request.

The employment percentages to receive a bonus to applications were drastically changed.

Originally written as A. Any facility seeking a license to locate within a zip code area that has an average employment rate of fifty-four point four (54.4) to fifty-six point six (56.6) percent will receive a scoring increase of thirty (30) percent of the average initial score of all applicants of the same facility type within the evaluation criteria topic regarding potential for positive economic impact in the site community; and B. Any facility seeking a license to locate within a zip code area that has an employment rate of zero (0) to fifty-four point three (54.3) percent will receive a scoring increase of forty (40) percent of the average initial score of all applicants of the same facility type within the evaluation criteria topic regarding potential for positive economic impact in the site community.

The new text has modified the employment percentages by nearly 30 percent.

A. Any facility seeking a license to locate within a zip code area that has an employment rate of eighty-five (85.0) percent to eighty-nine point nine (89.9) percent will receive a scoring increase of thirty (30) percent of the average initial score of all applicants of the same facility type within the evaluation criteria topic regarding potential for positive economic impact in the site community; and B. Any facility seeking a license to locate within a zip code area that has an employment rate of zero (0) to eighty-four point nine (84.9) percent will receive a scoring increase of forty (40) percent of the average initial score of all applicants of the same facility type within the evaluation criteria topic regarding potential for positive economic impact in the site community.

The department has assigned penalties for several assorted violations:

   
  • Possessing up to double the legal amount will result in a loss of card and a $200 fine.
  • Incorrect, or non compliant packaging will incur a $5,000 fine for each category of improperly packaged product and a recall.
  • Patients or caregivers extracting resins using combustible gases without a manufacturing license will lose their license and be subject to a fine of $200, facilities found to do the same will be suspended and subject to a fine of $10,000.

(A) For possessing marijuana in amounts between the possessor’s legal limit and twice the legal limit, in addition to revocation of identification card(s) pursuant to 19 CSR 30-95.030(3)(B)1.D, the possessor will incur a penalty of two hundred (200) dollars. (B) For failure to package medical marijuana consistent with 19 CSR 30-95.040(4)(K), a facility will incur a penalty of five thousand (5,000) dollars for each category of improperly packaged product, and the improperly packaged medical marijuana will be recalled for repackaging or disposal, at the department’s discretion. (C) Any person or facility that extracts resins from marijuana using combustible gases or other dangerous materials without a manufacturing facility license, shall incur a penalty. 1. In addition to revocation of identification cards pursuant to 19 CSR 30-95.030(3)(B)1.I, any patients or primary caregivers who extract resins in this manner will incur a penalty of two hundred (200) dollars. 2. In addition to suspension of license pursuant to 19 CSR 30-95.040(1)(E)7, facilities that extract resins in this manner will incur a penalty of ten thousand (10,000) dollars.

Contracted entities face additional regulation.

 (A) No entity holding a contract with the state of Missouri for a statewide track and trace system or any affiliates of that entity may sell seed-to-sale services or services related to compliance with seed-to-sale tracking regulations to a licensed or certified facility. (B) No entity holding a contract with the state of Missouri for a statewide track and trace system may charge any licensed or certified facility price or otherwise cause to be incurred a cost for plant/product tracking labels of more than twenty (20) percent above the per unit production cost of that label, not to include personnel costs.

Clarification on inspection of private cultivation space for patients and caregivers.

F. A statement affirming the applicant’s agreement to immediately make available access to the patient cultivation facility upon request from the department. Such access will be only for purposes of confirming compliance with this rule and will be limited to the enclosed locked facility and any areas necessary to reach and enter the facility on a path of the patient’s or primary caregiver’s choosing;

Testing facilities are still facing a six-month back up requirement for digital recordings while all other medical marijuana facilities are looking at 60 days.

D. A method for storing recordings from the video cameras for at least six (6) months in a secure on-site or off-site location or through a service or network that provides on-demand access to the recordings and that allows for providing copies of the recordings to the department upon request and at the expense of the facility;

Transportation may be a wide open venture path as there will be no caps on licenses for those who can meet the requirements.

(A) The department will certify all transportation facilities that can demonstrate they meet minimum standards as described in 10 CSR 30-95.025(4)(A).

(B) A facility license will be issued for a single facility with a single, primary place of business. Combinations of licenses at the same location must be approved pursuant to 19 CSR 30-95.040(4)(C).