Arkansas regulators revoke a medical marijuana business license for first time

Arkansas medical marijuana regulators revoked a business permit for the first time in the nascent industry’s history, the state Department of Finance and Administration announced Thursday.

Green Springs Medical Dispensary in the town of Hot Springs has lost its permit to operate, the Arkansas Alcoholic Beverage Control Division said in a news release, due to “ongoing violations” that include the wrongful sale of more than 1,800 expired cannabis products. The agency even conducted an undercover sting at the dispensary last October to confirm the illegal sales.

“This is the first revocation issued since the Arkansas medical marijuana industry launched in mid-2019,” the ABC said in the release, and noted that Green Springs was the second medical marijuana dispensary to open in the state, five years ago this month.

However, it’s not yet clear if Green Springs will appeal the ruling and fight to stay open – which it can do under the regulations – or close quietly. If Green Springs appeals the revocation, it can remain open for business until the issue is resolved, the ABC said.

If there is an appeal, the ABC board will hold a hearing and take witness testimony before issuing a decision. If the ABC board upholds the revocation, Green Springs could then take its appeal to circuit court.

“Arkansans approved a strictly regulated medical marijuana program,” Trent Minner, leader of the Department of Finance and Administration’s Regulatory Division, said in the release.

Miner said Green Springs has been on the receiving end of more than 50 violations in four years – ranging from failing to have sanitary processing areas to not keeping accurate inventory records – but despite that, the company “has continued its pattern of noncompliance.”

Green Springs was also cited at various points for “failure to certify scales, failure to maintain accurate personnel records, failure to maintain video surveillance, improper signage, and lack of commercial grade locks,” the ABC said.

“A license to operate in the medical marijuana industry in Arkansas is a privilege not to be taken lightly. When state law is consistently disregarded, ABC has a duty to revoke the license,” Miner said.

ABC Director Christy Bjornson added that the agency expects Green Springs to appeal, and said her team is looking forward “to presenting our case to the board.”

Arkansas has 38 operational medical cannabis dispensaries, and sales have surpassed $1.1 billion since the market launched.