New Regulation Suppresses
Dispensaries ’ Ability to Advertises Prices
We heard from numerous dispensary licensees , patients , and industry leaders with concerns and frustration after receiving the latest Guidance Letter ( below for reference ) distributed by the Department of Health & Senior Services ( DHSS ) on July 9 that restricts dispensaries from advertising discounted products to medical patients . Evidently , this action was spurred by DHSS recently becoming aware on numerous occasions of dispensaries that were questionably disbursing medical marijuana as part of promotional events .
Patients should be aware of this new regulation as it will handcuff a dispensary ’ s ability to announce its sale prices publicly . Currently , industry leaders are discussing this ruling with DHSS and working towards a mutual waiving of 19 CSR 30-95.080 ( 2 )( N ) and / or granting the industry a blanket variance to remove such mysteriously expanded interpretations .
On July 9 , Andrea Balkenbush , Facility License & Compliance Director , Medical Marijuana Regulatory Program , DHSS , notified dispensary licensees of her interpretation of the original aforementioned “ Rule .”
Promotions and Promotional Events Rule as written : 19 CSR 30-95.080 ( 2 )( N ), Dispensary facilities shall not disburse medical marijuana as part of a promotional event . If a facility disburses medical marijuana free of charge for any other reason , the facility shall record that disbursement of product in its seed-to-sale system with all relevant entries , including the qualifying patient or primary caregiver information and the amount of medical marijuana disbursed to that qualifying patient or primary caregiver .
Here is Ms . Balkenbush ’ s interpretation of Rule 19 CSR 30-95.080 ( 2 )( N ), as stated above . The Department views a promotional event as any activity , advertisement , or publicity designed to increase interest in purchasing
18 October 2021 medical marijuana or a particular product or brand of medical marijuana . For example , facilities are not allowed to advertise price discounts on a particular product because that would result in disbursing medical marijuana as part of a promotional event . Advertising that there will be discounted pricing on a holiday would also result in disbursing medical marijuana as part of a promotional event . However , reducing prices without noting or advertising the reduction would not be disbursing medical marijuana as part of a promotional event and neither would be establishing discounted pricing for classes of patients such as those designated as low-income on their medical marijuana identification card . Events that promote a facility but do not include disbursing medical marijuana would not be a violation of the rule . Keeping in mind that Missouri is a medical market may help a facility determine if what they are considering would be a violation of this rule .
Facilities must immediately make any changes to their plans or operations necessary to come into compliance with these two rules . The Department will be reviewing and monitoring these issues and taking appropriate actions , including notices of violations as necessary . Please contact your Compliance Officer with any questions or concerns .
Thank you for your cooperation . Andrea Balkenbush , Facility License & Compliance Director , andrea . balkenbush @ health . mo . gov
We asked a few dispensary licensees and industry leaders for their thoughts and concerns regarding Ms . Balkenbush ’ s interpretation . Here ’ s what they had to say .
Dan Viets , an attorney who chaired the board of directors of the campaign that wrote and placed article XIV on the ballot and Missouri NORML Coordinator , said , “ The interpretation of the rules in the July 9 letter from DHSS is a strained construction . It is not obvious from reading the rules that relaying an order through a third party is prohibited , but I hope the industry will be able to adapt to this new interpretation . However , as for the rule regarding disbursing medical marijuana as part of a promotional event , the new interpretation seems to go far beyond the plain language of the rule . It is not at all clear that the rule prohibits advertising discounted prices . In fact , it is in the best interests of patients to promote as much competition as possible regarding prices . Advertising helps patients make informed choices and obtain their medicine as cheaply as possible . Anything that restricts competition hurts patients .”
Rob Sullivan , Owner of Fresh Green Dispensary ( and an attorney ), said , “ With regard to the rule on disbursing medical marijuana as part of a promotional event , it seems to be a case of good intentions , but bad results . This new interpretation , as a practical matter , will likely increase prices for patients and create a less competitive industry for small business owners like us . As a legal matter , it seems to me to be ‘ a bridge too far ,’ to stretch the interpretation of the rule to that extent .”
Dr . James McEntire , Owner Green Pot Clinics , responded , “ DHSS has decided to enforce an advertising and promotional event rule that impacts standard retail sales methodologies as well patient knowledge of the best price available for medicine in their area . This is an unfortunate interpretation of a rule and negatively affects patients and access to the lowest price products and creates a shroud of secrecy and deception since the dispensary can no longer share this information publicly .”
Todd Scattini , Harvest 360 , says , “ The restriction of advertisement on the cannabis industry is un-American restricting the first amendment rights of business owners and will negatively impact patients enrolled in the Missouri Medical Marijuana Program . Advertising promotes competition among dispensaries and cannabis operators , which