“Patients in Arkansas have spent over $1 billion since the first dispensary opened its doors in May 2019.”
By Hunter Field, Arkansas Advocate
Arkansas’s medical cannabis industry reached new heights last year in terms of both patients and sales. A pending lawsuit has set the stage for an even greater explosion in 2024.
For the time being, the Arkansas Supreme Court has the final word on an appeal.
Rolling back these regulations would create a whole new world for patients and cannabis businesses. This includes pre-rolled joints and edibles high in THC, as well as the convenience of telemedicine.
A judge may also consider lifting restrictions on advertising for marijuana businesses, allowing dispensaries a new way to reach out to current and potential patients.
Even if the lawsuit isn’t resolved by 2024, regulators expect the growth to continue at the same pace as since the first sale took place five years ago.
Arkansans may also vote on a ballot measure in November. This would allow them to have greater access to cannabis, grow it themselves at home and even trigger the legalization if federal law allows recreational marijuana.
“We anticipate sales to continue increasing as they have every year since the launch of the program in 2019. Arkansas, which had the recreational option last year in Missouri, had another record-breaking year in 2023 …”, said Scott Hardin. He is a spokesperson for the Arkansas Department of Finance and Administration. Since the first dispensary in Arkansas opened in May 2019, patients have spent over $1 billion.
In 2023, medical marijuana sales reached a new record of $283 million. The previous record for medical marijuana purchases was $276 millions in 2022.
Since 2019, the State has collected more than 120 million in sales and privilege tax on medical marijuana.
The state Department of Health has registered more than 97.300 patients, compared to 89.855 in January of 2023.
These figures are higher than some of the most optimistic predictions made by supporters of legalization during the 2018 campaign.
The industry also created thousands upon thousands of jobs. According to the Alcoholic Beverage Control Division of the state, which regulates this industry, as of last week more than 3,000 employees in cultivation or dispensaries held Registry Identification cards.
Those who work in marijuana facilities are required to obtain RIC cards. Companies must also inform the state if an employee leaves their job or is terminated. This means that RIC data provides a snapshot of employment within the industry.
Hardin stated that “based on RIC cards we know that the state’s medicinal marijuana industry directly employs over 3,000 people,” Hardin explained. “Good Day Farm Cultivation has the most active cards with 366.”
Constitutional Challenge
A Pulaski Circuit Judge struck down in June 27 laws that the Arkansas Legislature had passed to regulate medical cannabis after the 2016 passing of Amendment 98.
Judge Chip Welch ruled, in essence, that the Generally Assembly had overstepped. He found that the Legislature cannot unilaterally change an amendment passed by the people.
Tim Griffin, Attorney General (R), has announced that he will appeal Welch’s ruling. However, he cannot file an appeal until Welch decides on the remainder of the case.
Good Day Farms, Capital City Medicinals and other plaintiffs have also challenged the restrictions placed on cannabis advertising by legislators and regulators. Welch is yet to make a decision on the advertising issue. Hearings are scheduled for May.
Welch’s ruling and Griffin’s promised appeal has left the medical cannabis industry in a gray area.
While marijuana companies have continued to sell popular products despite dozens of laws prohibiting their sale, they have operated as if these laws were still in effect.
Two main reasons have been given for maintaining the status quo:
According to the Arkansas Cannabis Industry Association, the Arkansas Supreme Court will likely stay Welch’s ruling when Griffin can appeal.
Casey Castleberry is an attorney representing an Arkansas cultivation firm that wasn’t named as a plaintiff. He said many of the restrictions in effect through the laws struck down are still in force under state rules.
Some of these rules may be eliminated if the Supreme Court affirms Welch. However, not all.
Both the industry and patients are excited by the repeal of pre-rolled joints, and the telemedicine patient certificate.
According to Bill Paschall, Executive Director of the Arkansas Cannabis Industry Association, pre-rolleds are usually the most popular products in other states that have medical marijuana.
Paschall explained that the new method will make it easier for patients to smoke medical marijuana, especially those with physical conditions which may make rolling a joint difficult.
The lawsuit has broader implications on how casinos and other industries, created by amending the Constitution of the state, can be regulated.
Castleberry: “I believe anyone in an industry created by constitutional amendment will be watching this case very closely.”
Advertising
Insiders in the industry said that even though many advertising restrictions would be lifted, it may not result in a rush to advertise.
Dispensaries are only allowed to advertise in areas where 70 percent of their audience is adults. They are also prohibited from advertising near daycares or schools.
Elizabeth Michael, cofounder of Little Rock’s cannabis advertising firm, The Bud Agency, told us that private companies restrict what type of ads they will accept.
She said, “Companies must not only worry about the state regulations but also about those of their own companies.”
The restrictions of these companies will still apply, no matter what the outcome [of the lawsuit].
According to records, the Alcoholic Beverage Control Division issued two verbal notices and cited a dispensary last year for an advertising infraction.
Arkansas cannabis companies would feel more comfortable advertising, however, if state law prohibits it. Michael explained that many cannabis companies have chosen not to advertise, for fear of jeopardizing their licenses.
Michael stated that more advertising would benefit both patients and non-patients.
She said: “I believe we would not only see a higher education level among registered patients but we would also see an increase in the patient count, because a lot of folks will realize that medical marijuana is a wonderful alternative or addition to an ongoing treatment program.”
This article was originally published by Arkansas Advocate.
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Photo by Mike Latimer.
The article As Arkansas Medical Marijuana program hits record sales, litigation and ballot measure could expand access even more first appeared on Marijuana Moment.
