How do I comply with the requirement in 19 CSR 30-040(3)(C) to notify the department of applications of entities under substantially common control, ownership, or management?

This requirement was met through the related question in the application itself. No additional notification is necessary.

Can patients consume medical marijuana within or outside my business?

Per 19 CSR 30-95.030, no qualifying patient shall consume marijuana for medical use in a public place, unless otherwise provided by law. 19 CSR 30-95.010 defines a public place as any public or private property, or portion of public or private property, that is open to the general public, including but not limited to, sidewalks, streets, bridges, parks, schools and businesses. However, for purposes of designating a non-public place within a public place, the owner or entity of any such property may, but is not required to, provide one or more enclosed, private spaces where one qualifying patient may consume medical marijuana. See 19 CSR 30-95.010 for further explanation and detail.

Do I have to collect a tax on medical marijuana purchases?

Yes. Per section 4 of Article XIV, dispensaries are required to collect four percent of the retail price for the Missouri Veteran’s Health and Care fund in addition to, any general state and local sales and use taxes that apply to retail sales.

What forms of payment will the department accept?

The department will accept electronic Check (ACH), MasterCard, Visa, Discover, American Express and any gift card issued by those credit cards.

When will you award facility licenses?

The department will accept applications from 8:00 a.m. CST Aug. 3, 2019, until 4:00 p.m. CST on Aug. 17, 2019, for cultivation, manufacturing, dispensary and testing facilities. For transportation and seed to sale entities, the department will begin accepting applications at 8:00 a.m. CST Aug. 3, 2019, and will accept these applications indefinitely. The department will award or deny a license and/or certification within 150 days of a complete application’s submission.

Is my application fee refundable?

No. All application fees are non-refundable.

Will there be instructions available on how to enter application information into the registry?

Yes. General instructions on how to type entries and upload attachments will be provided within the application system and on the Department’s website.

Are medical marijuana facilities prohibited from using certain words in their business name?

Yes. 338.260 RSMo states that no person shall carry on, conduct or transact a business under a name which contains as part of the name the words "pharmacist", "pharmacy", "apothecary", "apothecary shop", "chemist shop", "drug store", "druggist", "drugs", "consultant pharmacist", or any word of similar or like import, unless the place of business is supervised by a licensed pharmacist.

What might cause denial of my application or revocation of my license/certification?

As with all questions, providing false or misleading information, may be grounds for denial of the application. If the false or misleading information is discovered after a license is issued, the department may revoke the license. See 19 CSR 30-95.040(1)(F)1 for additional reasons an application may be denied or a license/certification may be revoked.

Does the department regulate CBD?

The department is responsible for administering the State’s new medical marijuana program pursuant to Article XIV of the Missouri Constitution, however that article does not change current civil and criminal laws governing the use of marijuana for nonmedical purposes. The following Missouri statutes provide that certain cannabis materials, with express exceptions, are controlled substances, and provide penalties for possession or control of controlled substances: RS Mo. 579.015, 195.010(28), 195.017(4)(w), 195.017(4)(ee) and 195.017(11). Because the department is not responsible for enforcement of the state’s penal statutes, and because CBD products can vary widely in their origin and ingredients, the department cannot opine as to whether any particular CBD product is a controlled substance under the foregoing statutes.

Can a dispensary sell other retail goods and services?

Yes. All retail sales of items other than medical marijuana products are subject to any otherwise applicable laws including retail sales taxes and licenses.

Once I obtain a facility license, can I change its location?

Yes, but only if the original location is no longer possible for the facility and the Department approves the request. See 19 CSR 30-95.040(4)(C)3 for more information.

How will DHSS view an application for a facility that proposes to use a property for its facility location that a property owner has committed to more than one applicant?

As with all aspects of an application, DHSS will expect all applicants to have a reasonable expectation that they will be able to follow through on how they propose to operate their businesses, including the location in which they propose to operate. Therefore, choosing to propose a location for operation that is in some way committed to another applicant would be a risk the applicant should consider carefully. Evaluation Criteria Question 20 addresses this, and an applicant’s response will be scored according to the degree of information and certainty they provide.

I don’t think I need $300,000 for my cultivation facility. Can I still get credit on Evaluation Criteria Question 14?

Yes. Showing $300,000 will be a presumed adequate source of funds and you will get full credit for such a response. However, if you have less than $300,000, you may still get full credit if you can explain why a lower amount is an adequate amount of funding for your proposed facility.

Does the liquid capital referenced in Evaluation Criteria Question 14 need to be in control of the entity applying for the application, or can the applicant simply show that the owners have the assets in their own accounts?

Question 14 asks for adequate documentation of sources of capitalization. There is no requirement that the accounts or source of funds be in the name of the business entity. However, the funds must be readily available for the purpose of carrying out the facility’s business activities, and an applicant cannot claim funds that are also being claimed by another applicant.

If a landlord takes a percent-based rent of total sales, would that be considered an economic interest?

As stated in 19 CSR 30-95.010 (10), "economic interest" means rights to either the capital or profit interests therein. An arrangement whereby a landlord or any other person or entity is to receive a return on the capital or a portion of profits would be regarded as an economic interest.

Do cultivation, manufacturing, testing, and dispensary facilities need to apply separately for a transportation certification?

In most cases, no. The authority to transport from one type of facility to certain other facilities is inherent in each license/certification. The definitions for each facility type indicate to which facilities that facility type may transport marijuana. If a facility wishes to transport to any entity or person not listed in the applicable definition, the facility will need to apply for a transportation certification. All facilities, whether transporting under a transportation certification or another facility type license/certification, are subject to the operational requirements in the transportation rule.

Who is considered a principal officer or manager?

19 CSR 30-95.010((31) provides that "Principal officers or managers" means persons who, regardless of title, have responsibility for supervising the management, administration, or operation of an entity, including, but not limited to: presidents, vice presidents, or general counsels; chief executive, financial, or operating officers; general partners, managing partners, or controlling partners; managing-members; or trustees.

What is meant by "substantially common control, ownership, or management"?

19 CSR 30-95.010(39) defines this term to mean:
(A) The possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, by any means, including ownership, contract, financing, or otherwise;
(B) The legal or beneficial ownership, directly or indirectly through ownership of an affiliate entity, of ten (10) percent or more of an entity’s outstanding voting stock or other ownership interest;
(C) The ownership, directly or indirectly through the ownership of an affiliate entity, of a majority of the capital assets, real property assets, or leasehold interests; or
(D) The ability to make policy decisions, operating decisions, or decisions regarding the allocation of income and expenses for the entity, whether directly or by a management agreement.

What kind of financial activities is Evaluation Criteria Question 50 asking applicants to explain?

The department is only asking for information regarding activities legal under Missouri law. This question seeks to assure the scorers that applicants have thought through their financial plans if they are unable to rely on the federally regulated banking industry. Applicants will need to make purchases, pay employees, and accept some form of payment from customers as well as pay state and likely local sales taxes. On this and any other question, applicants should not interpret word limits as any expectation of a lengthy response if the applicant believes that a brief one suffices.

Does the signage rule in 19 CSR 30-95.040(4)(M) prevent facilities from using signage such as warnings against trespassing, notices of hours of operation, or prohibitions of carrying food or drink into the facility?

No. This rule refers to outdoor signage identifying the business. It is meant to limit the use of marijuana leaves or other drug references in advertising. It does not restrict signage unrelated to marijuana such as parking signs.

Does Missouri prohibit publicly traded companies from owning medical marijuana facilities?

No. However, Missouri medical marijuana facilities cannot be owned, in whole or in part, by an individual who has a disqualifying felony offense, which is defined by 19 CSR 30-95.010(8). At the time of application, applicants must attest that the facility complies with this requirement, and there is no exception for individuals who own a very small part of a facility.

Can applicants apply for a combination of licenses/certifications at one location?

Initially, applicants must submit separate applications for each license or certification they seek. Each application must be for a single facility in order to ensure applicants are not awarded points for attributes of a combined facility (e.g., economic benefit to the site community) that will not materialize if only some of the licenses/certifications are granted. Multiple applications may be submitted for a single location, but each application will be reviewed and scored independent from the other. Pursuant to 19 CSR 30-95.040(4)(C), once awarded a license/certificate, facilities may seek Department approval to combine operations into a single facility at one location.

How will the evaluation scoring and application process work?

Review the Facility Licensing and Compliance webpage for detailed information regarding the application and scoring process.

On Evaluation Criteria Scoring Questions 5 and 6, why does the applicant officer or manager have 300 words to explain what appears to be a yes or no answer subject to a 0 or 10 score?

An answer of “No” to these questions will automatically receive 10 points without the need for further explanation. An answer of “Yes,” without additional explanation, will receive 0 points. However, the scorer may award 10 points for an answer of “Yes” to question 5 depending upon the circumstances of the tax delinquency. The scorer also may award 10 points for an answer of “Yes” on question 6 depending upon the circumstances of the suspension or revocation. On both questions, the scorer will rely on any additional information provided in the 300-word text box if an answer of “Yes” is provided.

How is information provided regarding felony offenses in response to Evaluation Criteria Questions 7 and 8 treated in the scoring of a facility application? And how does this information relate to disqualifying felony offenses?

Applicants who have a disqualifying felony offense may not own or be employed at Missouri medical marijuana facilities. Separate from that consideration, the Constitutional Amendment requires assessment of an applicant’s “character” and “veracity.” Questions 7 and 8 ask for information about all felony offenses. Having felony offenses of any kind may affect the score for these questions. The extent to which the score is impacted will depend on the scorer’s assessment of how the offenses reflect the applicant’s character and veracity. If an applicant answers no to either question 7 or 8, then they will receive 10 points and do not need to provide any further information.

Is the state using METRC?

Yes. METRC was awarded the seed to sale tracking system contract through the Missouri Office of Administration’s competitive bid process.

What do the word count limits apply to?

Word count limits apply to specific questions within the Facility Application Question Worksheets that applicants will need to complete and upload into the registry as part of their application. The total word count applies to all information needed to respond to that question. The worksheets are designed to allow applicants the ability to check their word counts. However, obvious manipulation of text to exceed the word count limits, such as joining multiple words together with nonsensical punctuation, may be basis for rejecting an application.

Can one individual fill multiple roles for questions regarding experience? For example, can one person represent both your pharmacology and your community pharmacy experience, or do I need two separate people?

Questions 26, 28 and 29 ask the applicant to list any owners and managers, or retained consultants or contractors, with experience in the noted discipline. Applicants are also asked to describe that experience. Scorers will assess each question independently based on the Evaluation Criteria Scoring Table. There is no requirement that a different individual be listed for each area of expertise, however each question’s response must describe the experience the applicant wishes the scorer to evaluate. Each response is scored on its own merits.

What type of facility will be authorized to perform cannabinoid extractions in Missouri?

Extraction will be performed by licensed medical marijuana-infused manufacturing facilities in Missouri.

What should be redacted in responses to Evaluation Criteria Questions?

Written responses – whether given on worksheets, as attachments to worksheets, or both - to these questions must not refer to applicant facility business names and must refer to all individuals by title and initials only, e.g. "Owner A.E.M." or "Principal Officer R.W.M." If an applicant follows these directions, no redactions are necessary. However, if an applicant chooses to provide responses with names of applicant facilities or individuals included, the facility business names and any names, addresses, or social security numbers of individuals must be redacted. Finally, if redacted responses for Evaluation Criteria Questions are submitted, the applicant must also submit an un-redacted version of that same document. In order to prevent unnecessary strain on the application system, applicants are encouraged to submit responses with redacted information only when absolutely necessary to properly respond to the Evaluation Criteria Question. For example: It is not necessary to label each page of a response with the applicant facility’s business name, and doing so would necessitate submitting two versions of those documents – redacted and un-redacted.

For additional information see the Redaction Matrix on the Facility How to Apply page.

What will be the effect on my scores if I leave un-redacted information in my Evaluation Criteria Question responses that could, with some investigation, be traced to information that was redacted?

It would likely be impossible for an applicant to redact from an application every piece of information that could, with effort, be traced to an entity or person that would give clues about the applicant. Redaction to that extent would make many responses unusable. Instead, applicants should follow the redaction instructions literally. This, coupled with other scoring policies described in 19 CSR 30-95.025, such as dividing question responses among scorers, will protect applications from identification and maintain the integrity of the blind scoring process.

Will un-redacted versions of Evaluation Criteria Question responses be counted against the page limits for those responses?

No. If there is a three page limit for a response, the entire three pages may be used to answer the question. If the response must be redacted, applicants should submit the un-redacted versions of the response in addition to the redacted response, but it is the redacted response that will be provided to the scorers.

Will redacted words be counted against the word count limits in Evaluation Criteria Question responses?

Yes. If there is a 500 word count limit for a response, only 500 words may be used to answer the question, whether or not some of those words must be redacted. It will be up to the applicants whether they include words in their responses that must be redacted.

Can we submit more than one letter of recommendation per page allowed by the page limits? In other words, will it help to try to fit as many letters of recommendation onto a page as possible?

No. Each letter of recommendation is limited to one page. There is a maximum of 3 letters of recommendation per each principal officer and manager.

Who will need to submit fingerprints for a criminal record check before submitting a facility license/certification application?

All owners who hold any portion of the economic or voting interest of the facility who will also have access to medical marijuana or the medical marijuana facility, and all officers, directors, board members, managers, and employees identified in the application must submit fingerprints for a criminal record check within the six months prior to submission of the facility’s application.

To whom is Evaluation Criteria Question 3 referring when it asks for “your” experience and for a list of businesses “you” operated or managed?

This question appears in a set of questions related to experience of principal officers and managers, and the intent of this question is to gather more information about that group of individuals. The “your” in the first sentence of the question refers to principal officers and managers. It will be up to the applicant to determine what previous business experience of principal officers and managers will contribute to the success of the new medical marijuana business. The list requested in the second sentence is asking for the legal business name and address of each of the businesses referenced in answer to the first sentence of the question if those businesses were operated or managed by the principal officer or manager.

Will there be a Mac/Apple compatible version of the worksheets made available before the application deadline?

It is recommended that users utilize a Windows OS based computer when completing, saving, and printing the Worksheets, as user experience may be limited if utilizing devices such as MacBook, iPhone, iPad and Android.

What zip codes will receive the extra points described in 19 CSR 30-95.025(C)6?

All zip codes listed at the end of the rule qualify for the extra points. These zip codes represent areas where the employment rate is below 89.9 percent per the Missouri Census Data Center. Employment rates can be found by following these steps:

  • Go to: http://mcdc.missouri.edu/
  • Click on ACS profiles (on the right)
  • In the dropdown, select 2013-2017
  • A second dropdown appears; select Zip Codes
  • Pick a zip code
  • Deselect all subjects other than Economic
  • Click on Generate Report
  • Scroll down to E5. Employment Status
  • The employment rate is the percent of the civilian labor force that is employed

Is Evaluation Criteria Question 15 asking about insurance to protect the business or to protect the principal officers?

This question is asking about professional liability insurance to protect the business.

Will applicants automatically receive a zero on questions 9 and 10 if they answer “yes”?

These questions concern whether any principal officer or manager has been denied a license or registration to engage in a business involving regulated controlled substances, or has been involved in an investigation or disciplinary proceeding that resulted in a suspension or revocation of a license or registration by a body overseeing controlled substances. An answer of “No” should automatically receive 10 points without the need for further explanation. An answer of “Yes,” without additional explanation, should receive 0 points. The scorer also may award 10 points for an answer of “Yes” if the circumstances are deemed nonmaterial. An example of a nonmaterial denial would be a denial of a new license where the number of licenses was limited. Since question 10 involves disciplinary action relevant to controlled substances, nonmaterial circumstances will be rare. An example of a nonmaterial discipline would be discipline of an entity with which the person had no discernable actual involvement or control.

Will applicants automatically receive a zero on questions 12 and 13 if they answer “yes”?

These questions concern whether any principal officer or manager has been involved in an adverse or disciplinary proceeding by the U.S. FDA, or has been excluded from participation in certain government programs due to fraud, abuse or submission of false or fraudulent claims. An answer of “No” should automatically receive 10 points without the need for further explanation. An answer of “Yes,” without additional explanation, should receive 0 points. The scorer also may award 10 points for an answer of “Yes” if the circumstances of the discipline or exclusion are deemed nonmaterial. Since this question involves disciplinary action or program exclusion due to malfeasance, nonmaterial circumstances will be rare. An example of nonmaterial circumstances would be discipline or exclusion of an entity with which the person had no discernable actual involvement or control.

Which individuals' and businesses' names must be redacted or anonymized in my facility application?

All names of individuals contained in Evaluation Criteria Question responses, whether an applicant, reference, or other person, must either be redacted or referred to by initials: eg: “Owner A.E.M.” or “Consultant R.W.M.” For business names, only the applicant facility business name must be redacted or anonymized. Other businesses, such as previous businesses managed or business names contained in the letter of reference, need not be redacted or anonymized.

Should an applicant identify for the department what information they consider proprietary in their application?

All information submitted, regardless of how it may be identified, will be subject to all relevant laws, and possibly a court’s interpretation of those laws, concerning open records as well as confidentiality. While the Department cannot issue a legal opinion as to what it believes to be legally protected information, we refer applicants to the language of Constitutional Article XIV Section 1.3(5) and Missouri Statute 610.021, as well as the common law interpreting those provisions.

What do I need to do differently if I submitted a pre-filed application? How will the system know I pre-paid?

Those who submitted pre-filed applications will be required to complete an application in the on-line Medical Marijuana Registry. The Registry portal will be available after midnight, Aug. 2, 2019. Pre-filed application data will not be transferred to the on-line portal. Each applicant will have an opportunity within the "Questions" portion of the on-line application to indicate they previously submitted fees and a pre-filed application form. You must include the SSN or Tax ID number in the space provided that will match the pre-filed and new application together. The Medical Marijuana Program will pair the pre-filed application payment with the submitted on-line application at time of review.

What is the process for someone who has filed a pre-application fee to advise the department of a change in the business organization that will now utilize the fee and file an application?

If an individual submitted a pre-application fee that he or she now wishes to apply to a business organization or to a business organization different than the one identified on the pre-application fee form, the individual may do so as long as he or she has an ownership interest in the new business organization. The individual must provide written notice to the department identifying the pre-application fee that should be applied to a new business application and confirming that the individual has an ownership interest in the new business organization. The applicant should send an e-mail to MMFacilities@health.mo.gov indicating that the pre-application fee should be applied to a different organization. Once the e-mail is received, the program will provide the applicant with additional instructions.

What should an applicant do if he or she submitted a pre-application fee for a certain facility type but now wants to apply for a different facility type and utilize the pre-application fee for that new facility type?

Pre-application fees are nonrefundable. If the pre-application fee paid was an amount greater than what is now owed for the new facility type, the applicant may use the pre-application fee for the new facility type but will not be refunded the difference in what was paid and what is owed. If the pre-applicant fee paid was less than what is now owed for the new facility type, the applicant will owe the difference.

Pre-filed application data will not be transferrable to the on-line portal. All applicants will need to register and provide the required application information and documentation in the Medical Marijuana Registry. Upon starting a new application, the pre-filer applicant should select the application type of which they desire to apply (change to) and then upon submission of the application, send an email to: MMFacilities@health.mo.gov indicating they will be changing their licensure certification type. Once the e-mail is received, the program will provide the applicant with additional instructions.

The pre-file applicant will have an opportunity within the "Questions" portion of the on-line application to indicate they previously submitted fees and a pre-filed application form. Upon the Section for Medical Marijuana program review, if the Facility Type has changed, DHSS will contact the Facility Applicant with instructions on how to complete payment for the difference in the new application fee. The additional fee amount due must be paid and will be verified by program as part of the application review process before an application is considered complete.

When I view my application Worksheets in the online registry, they look peculiar, why?

If you are launching your worksheets BEFORE you submit, try using the Download arrow instead of the Hyperlink to the File Name. The Hyperlink launches the worksheets in CHROME which distorts the worksheets. Save the file to your desktop. Right click on the saved file and choose Open with>Adobe Acrobat to launch. Likely your check marks are there, the check boxes are checked and the if you click in the worksheet narrative boxes, the scroll bar pops up. Rest assured, redacted documents will be passed to our Blind Scorer in a PDF format. The Blind Scorer will not be reviewing redacted documents in Google Chrome which tends to distort the file. On that same note, after you submit your application, if you attempt to view the Worksheets, they will still launch in Google Chrome. Download and save your Worksheets to your Windows PC and right click, open with Adobe Acrobat Viewer.