The Arkansas Alcoholic Beverage Control Division revoked the cannabis dispensary license of Green Springs Medical on May 2, marking the division’s first revocation since the state’s medical cannabis industry launched five years ago.
Green Springs Medical received more than 50 violation charges and warnings over the last four years, said Trent Minner, leader of the Department of Finance and Administration’s Regulatory Division in a news release. The alleged violations were for a variety of rules, the most recent for selling more than 1,800 expired products in January.
Green Springs Medical has 15 days to appeal the revocation ruling to the ABC Board, which would allow the dispensary to stay open during the appeal process.
“Arkansans approved a strictly regulated medical marijuana program,” Minner 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.”
Green Springs Medical, located in Hot Springs, Ark., is one of the state’s top retailers, selling 229.38 pounds of cannabis in March, according to the ABC in an April 26 press release. It opened May 12, 2019, as the state’s second dispensary.
Undercover agents purchase expired, undated cannabis products
Following a verbal warning, ABC conducted an undercover operation at the store and purchased an expired product in October, the press release said. An undercover officer also purchased a flower product that allegedly wasn’t labeled with testing dates.
Other violations included failure to maintain clean and sanitary processing areas, failure to maintain biannual inventory information, failure to certify scales, failure to maintain accurate personnel records, failure to maintain video surveillance, improper signage and lack of commercial-grade locks.
A hearing was held April 18 for 10 alleged violations. One violation was dropped, but the others were upheld, according to the May 2 order by ABC Director Christy Bjornson.
“There is no suitable fine that can correct or otherwise control GSM’s reckless endangerment of cannabis patients,” Bjornson wrote in the order. “The only available remedy is to revoke permit #00021, doing business as Green Springs Medical.”
Bjornson said in the press release that enforcement agents “consistently” share information with licensees to avoid potential violations, and owners and employees typically implement suggested changes to remain compliant.
“When a dispensary ignores warnings, violations, and guidance offered by ABC, the only remaining option is revocation. We anticipate an appeal and look forward to presenting our case to the Board,” she said in the press release.
Green Springs Medical CEO Dragan Vicentic did not return requests for comment.
If appealed, the ABC Board will hear testimony from both sides before deciding whether to uphold the revocation. If it does, Green Springs Medical can then take their case to Arkansas Circuit Court.
Since 2019, more than $1.1 billion has been spent on medical cannabis in the state, according to the ABC. There are currently 38 active dispensaries.
