A new report from the Arkansas Department of Finance and Administration (DFA) shares a variety of facts about the state’s medical cannabis program, which launched in May 2019.

According to the Arkansas Advocate, dozens of storefronts have opened over the past five years, and an estimated 102,000 medical cannabis patient cardholders have approved.

In total sales, medical cannabis has generated $1.1 billion since 2019 but for this year alone, the state collected approximately $68 million (between January through March), and just $45 million between February and March.

The report shows that $31.32 million was collected in medical cannabis annual revenue in 2019, which jumped to $181.8 million in 2020, $264.9 million in 2021, $276.3 million in 2022, and finally $282 million in 2023.

Although sales reported in 2024 so far (approximately $2 million less than in 2023), there has been an increase in products sold, with 13,804 sold in 2023 and 17,240 in 2024 so far. This noteworthy observation, according to Arkansas Department of Finance and Administration spokesperson Scott Hardin. “That’s a reflection of the more competitive pricing, which is great news for patients,” Hardin said.

An estimated $127 million in cannabis tax revenue has been collected over the past five years (approximately $5 million came from February and March 2024 alone). The law sets aside 4% of cannabis taxes to help provide meals for students who are on free or reduced lunch programs. The amount of cannabis products in pounds has steadily increased over time as well with 4,735 pounds sold in 2019, 28,021 in 2020, 40,347 in 2021, 50,547 in 2022, and 62,227 in 2023.

When medical cannabis sales first began in 2019, only 11,000 patients were approved cardholders. One year later, cardholder numbers increased to approximately 43,000, and finally the most recent cardholder number has surpassed 102,000. “The pace of it has varied, but the fact that we’ve consistently increased to where we are today with more than 100,000—it’s going to be interesting to see going forward if that continues over the next couple of years,” Hardin said. Current cardholder data shows that most patients use medical cannabis for post-traumatic stress disorder, followed by intractable pain.

An estimated 53%, or 92,494 cardholders, are women, according to data reported in June 2023. Additionally, patients between the ages of 25-44 hold the most cards than any other age range, and in terms of race, 84% of cardholders are white.

The DFA doesn’t show sales data for April at the moment, but Hardin noted that $2 million in sales were collected on 4/20 alone, which is three times more than the daily average (about $750,000).

Arkansas Cannabis Industry Association president, Bill Paschall, has become a mainstay in cannabis policy and regulations. He told the Arkansas Advocate that he has often spent days chatting with legislators to keep them up to speed with what’s going on in the world of weed.”

Although Paschall didn’t have any experience in medical cannabis previously, he has spent the past five years understanding the industry. One of his most important observations is that medical cannabis in Arkansas hasn’t led to any harmful effects on society. “The fears that people expressed when this first passed in 2016 have not come to bear,” said Paschall. “We’ve not seen social upheaval or spikes in kids with drug issues due to medical marijuana. … The industry is well regulated in Arkansas, and because it’s well regulated the folks who buy medical marijuana can have confidence in what they’re buying.”

Natural Relief Dispensary owner David Berman manages the second top performing dispensary in the state, having sold 1,067 pounds of cannabis products in February and March 2024. According to Berman, a majority of the products sold at his dispensary is flower. “Most of our patients are just used to that consumption method,” Berman said. “But as our market matures, we’re educating them on the other consumption methods like edibles, vape cartridges and concentrates.”

Currently, Arkansas allows for a maximum of 40 dispensaries statewide, while only 38 operating dispensaries. The remaining two slots for dispensary licenses have been delayed for approval to do recent litigation.

First involves Green Springs Medical Marijuana Dispensary in Hot Springs, Arkansas, which had its license revoked on May 2. The Arkansas Alcoholic Beverage Control Division (ABC) stated that multiple violations, including selling 1,800 products that had expired, as well as failure to keep the processing area clean and sanitary, and more. “When a dispensary ignores warnings, violations and guidance offered by ABC, the only remaining option is revocation,” said ABC division director Christy Bjornson. “We anticipate an appeal and look forward to presenting our case to the board.”  

Green Springs Medical Marijuana Dispensary owner Dragan Vicentic told the Arkansas Advocate that he plans to appeal the decision. “I thought the fine amount would be reduced because of my satisfactory explanation, and the next thing I knew, the director asked for a revocation of the license, which I thought was very extreme,” Vicentic said.

Arkansas advocates are working on expanding the state medical cannabis law through the ballot measure called “The Arkansas Medical Marijuana Expansion Initiative.” If the initiative is included on the November 2024 ballot and passed into law, it would allow adults over 21 to cultivate seven mature and seven immature plants at home, expand the type of people who would be allowed to certify patients, remove fees for cardholder applications, and allow cards to last for three years instead of just one before needing to reapply.

The post Arkansas Finance Department Shows Medical Cannabis Program Growth first appeared on High Times.

The post Arkansas Finance Department Shows Medical Cannabis Program Growth appeared first on Paradise Found.

Nearly two dozen attorneys general from across the country wrote a letter to congressional leaders this week, urging them to enact legislation to federally regulate intoxicating hemp products. In the letter, the top law enforcement official from 21 states wrote that the legalization of hemp with the 2018 Farm Bill has resulted in “the proliferation of intoxicating hemp products across the nation and challenges to the ability for states and localities to respond to the resulting health and safety crisis.”

The letter, dated March 20, was addressed to the committee chair and ranking minority members of the Senate Committee on Agriculture, Nutrition, & Forestry and the House Committee on Agriculture. The correspondence was led by Indiana Attorney General Todd Rokita and Arkansas Attorney General Tim Griffin, both Republicans, and co-signed by the attorneys general of 19 additional states, including Democrats and Republicans.

In their letter, the state officials call on the leaders in Congress “to address the glaring vagueness created in the 2018 Farm Bill.” The legislation has led to the proliferation of products containing psychoactive novel and minor cannabinoids that can be derived from hemp, including delta 8 THC, THCA, HHC and others.

“The reality is that this law has unleashed on our states a flood of products that are nothing less than a more potent form of cannabis, often in candy form that is made attractive to youth and children — with staggering levels of potency, no regulation, no oversight, and a limited capability for our offices to rein them in,” reads the letter.

To address the issue, regulators and lawmakers in many states across the country are seeking ways to stem the tide of unregulated intoxicating hemp products, arguing that they pose a health risk, particularly to young people. Advocates for tighter controls on intoxicating hemp products in states with legal weed note they pose a competitive threat to licensed marijuana businesses, which face the high costs and taxes often associated with the regulated pot industry.

Regulating intoxicating hemp products has been resisted by some businesses and industry advocates. Some companies marketing intoxicating hemp products have filed lawsuits to block new regulations, arguing that the 2018 Farm Bill specifically legalizes hemp-derived cannabinoids other than delta-9 THC.

These legal actions have produced mixed results. In Arkansas, a federal judge issued a preliminary injunction in September that bars the implementation of a law to ban intoxicating hemp products. 

“These inconsistent court rulings are part of the reason I have urged Congress to step in and create consistency across the nation to protect our children from these dangerous drugs,” Griffin said in an email to Politico.

California Attorney General Bonta, one of the attorneys general who signed the letter to congressional leaders, said that intoxicating hemp products constitute a health risk for young people.

“Our children deserve better,” Bonta said in a statement. “The 2018 Farm Bill, however well-intentioned, created a loophole that has led to the proliferation of products, often containing synthesized cannabinoids, that are more intoxicating than legal and regulated cannabis products. These products often take the form of candy and are designed to appeal to young people and children. California prohibits intoxicating cannabinoids in hemp products, whether naturally derived or synthetic. The California Department of Justice will continue to protect the legitimate businesses who are operating responsibly in this space.”

The letter calls on the leaders of the congressional agricultural committees to take action to regulate intoxicating hemp products by redefining hemp in the next farm bill, which is currently being debated in Congress. The legislation, which guides policy on a wide range of issues related to agriculture, is updated every five years, although progress on last year’s anticipated renewal of the legislation was delayed to this year.

“The reason Congress needs to act is that its definition of industrial hemp is the original source of the problem and the confusion that has sprung up around what is allowed and what’s not allowed under state and federal law,” Indiana Solicitor General James Barta said in an interview with Politico.

The post State Attorneys General Ask Congress To Regulate Intoxicating Hemp Products appeared first on High Times.

The post State Attorneys General Ask Congress To Regulate Intoxicating Hemp Products appeared first on Paradise Found.

Arkansas Attorney General Tim Griffin recently rejected a medical cannabis ballot measure because of its title.

The Arkansas Medical Cannabis Amendment of 2024 was submitted on Jan. 12 by Stephen Lancaster of the law firm Wright Lindsey & Jennings LLP. Griffin responded to the submission, although the opinion was initially prepared by Assistant Attorney General William R. Olson on Jan. 29, explaining the reasoning behind his decision to reject the measure in its current form.

He clearly states in the beginning of this letter that his decision is not a reflection of his support or opposition to this ballot measure, or any others. “My decision to certify or reject a popular name and ballot title is unrelated to my view of the proposed measure’s merits,” Griffin began. “I am not authorized to consider the measure’s merits when considering certification.”

However, ballot titles are required to be written in a very specific way. Those who write the measures must ensure that the titles contain all of the essential facts “which would give the voter serious ground for reflection,” but also attempt to keep it brief. “The ballot title is not required to be perfect, nor is it reasonable to expect the title to address every possible legal argument the proposed measure might evoke,” Griffin explained. “The title, however, must be free from any misleading tendency—whether by amplification, omission, or fallacy—and it must not be tinged with partisan coloring. The ballot title must be honest and impartial, and it must convey an intelligible idea of the scope and significance of a proposed change in the law.”

Griffin continued to share the core reason behind the rejection, explaining that the title was not formatted properly and contained ambiguous statements. “Where the effects of a proposed measure on current law are unclear or ambiguous, I am unable to ensure the popular name and ballot title accurately reflect the proposal’s contents until the sponsor clarifies or removes the ambiguities in the proposal itself.”

Griffin is sending the ballot measure authors back to the drawing board to fix the wording. The header, for instance, currently reads “Be it Enacted by the People of the State of Arkansas,” but wording including “enacting clauses” is only required for bills, not constitutional amendments, which may cause voters to be unsure if this is a bill or a constitutional amendment. He also suggested new text to a section that discusses advertising, and ambiguous wording for “rules shall also require child-proof packaging,” addresses that “medical cannabis” as a phrase is not defined anywhere, noting that the interchangeable use of “marijuana plants” and “cannabis plants” be just “cannabis plants” to avoid confusion, and more.

If the Arkansas Medical Cannabis Amendment of 2024 is passed, it would amend the constitution to allow patients and caregivers to cultivate up to seven mature cannabis plants, as well as seven younger plants, expand the qualifying conditions of medical cannabis to include more than the current 18 conditions, allow out-of-state patients holding medical cannabis cards to purchase cannabis in Arkansas, remove fees for cannabis card applications, and allow those cards to last for three years instead of one.

It also includes a section entitled “Effect of future federal classification of marijuana” which would permit possession of up to one ounce of cannabis if the federal government decides to remove cannabis from the list of controlled substances.

The Arkansas Advocate published an article on this topic and noted that the advocate group can only begin collecting signatures once Griffin has signed off on a ballot measure. After that, they have until July 5 to submit 90,704 signatures in order to qualify for the ballot in November.

Erika Gee, an attorney representing Arkansans for Patient Access, shared a statement with the news outlet regarding what’s next. “Arkansans for Patient Access is reviewing Attorney General Tim Griffin’s ballot proposal opinion. We intend to address the issues raised and resubmit,” Gee said. “We are confident ballot language will be presented that ultimately gains approval.”

Arkansas voters legalized medical cannabis in November 2016 through Amendment 98, and sales began in May 2019. In August 2022, a recreational cannabis ballot initiative from Responsible Growth Arkansas was rejected because of its name and title. The group quickly filed a lawsuit  “to challenge the State Board of Election Commissioners’ thwarting of the will of the people and their right to adopt laws by initiative.” The Arkansas Supreme Court said that the measure would still appear on the ballot, as Arkansa Issue 4. However, in November 2022, 56.25% of voters voted no, while only 43.75% voted yes.

Late last year, the Arkansas Medical Marijuana Commission announced that medical cannabis taxes were helping to fund kids’ school lunches in the state. The commission stated that while the state collected $115 million from cannabis taxes, an estimated $87 million was granted for food insecurity.

The post Cannabis Ballot Initiative Title Rejected by Arkansas Attorney General appeared first on High Times.

The post Cannabis Ballot Initiative Title Rejected by Arkansas Attorney General appeared first on Paradise Found.

While Arkansas approved its medical cannabis initiative back in 2016, there are still a number of limitations when compared to other states that have made similar moves. 

For example, patients can only purchase up to 2.5 ounces of medical cannabis in a 14-day period, patients under 21 cannot consume herbal forms of cannabis, dispensaries cannot provide cannabis-infused foods or drinks with more than 10mg of THC and home cultivation is not allowed, among other limitations.

With a newly proposed constitutional amendment, a cannabis industry group is looking to loosen some of the state’s current limitations. On Friday, Arkansans for Patient Access said it was submitting the ballot language for the Arkansas Medical Cannabis Amendment of 2024 to Arkansas Attorney General Tim Griffin, as reported by the Arkansas Advocate.

Potential Changes to the Arkansas Medical Cannabis Program

“The goal of this ballot proposal is to reaffirm and build upon Amendment 98 to better serve patients,” said Amy Martin, owner of The Greenery dispensary in Fort Smith. “This amendment reflects a commitment to the principles established by the state’s voters. It reduces barriers and streamlines processes so qualifying patients can access the medicines and treatment options that best serve them.”

The ballot initiative introduces a number of changes to the current medical cannabis program. 

If passed, it would allow patients and designated caregivers over the age of 21 to grow up to seven mature plants and seven younger plants. Currently, only doctors can grant patients medical cannabis cards, though the amendment would also allow physician assistants, nurse practitioners and pharmacists to do so. 

It would also allow providers to grant medical cannabis cards based on any medical need, instead of being limited to the state’s current 18 qualifying conditions. Healthcare providers would also be allowed to conduct patient assessments via telemedicine.

Additionally, the amendment would expand access to out-of-state residents and recognize patient cards from other states, along with allowing non-residents to obtain Arkansas medical cannabis cards. The initiative would also remove application fees for prospective patients seeking medical cannabis cards and increase the expiration dates for new patient cards from one to three years.

Creating an Adult-Use Cannabis Trigger Law

Along with the proposed changes to the state’s current medical cannabis program, the proposal would also create a recreational cannabis trigger law. This comes in the midst of the Biden Administration’s ongoing consideration to reschedule cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA).

The trigger law would permit Arkansas adults to possess up to an ounce of cannabis should the federal government remove cannabis from the CSA or if cannabis possession is no longer considered a federal crime. The trigger provision would limit commercial growth and distribution to cultivation facilities and dispensaries currently licensed under the state’s medical cannabis law.

Arkansas previously attempted to legalize recreational cannabis in 2022 through Issue 4, which still came with a number of strict limitations, though it was ultimately rejected by voters.

Attorney David Couch drafted the state’s original Amendment 98 to legalize medical cannabis, and while he opposed the 2022 effort, he’s shown public support for this new initiative. Similarly, patient advocate Melissa Fults was against the 2022 measure but stands behind the new effort on behalf of Arkansans for Patient Access.

The attorney general will have 10 business days to review the measure and ballot language before indicating whether or not it is fit to appear on the upcoming Arkansas ballot for voters this November. Should it be approved, canvassers have until July 5 to gather 90,704 signatures from registered voters, which would effectively qualify the initiative for the ballot.

The post Arkansas Initiative Would Ease MMJ Program Restrictions, Introduce Rec Trigger Law appeared first on High Times.

The post Arkansas Initiative Would Ease MMJ Program Restrictions, Introduce Rec Trigger Law appeared first on Paradise Found.

The Arkansas Medical Marijuana Commission (AMMC) recently announced the benefits that the state’s medical cannabis program, with millions of dollars in cannabis tax funds helping to provide lunches for kids at school.

While the state has collected $115 million from cannabis taxes, $87 million went toward free or low-cost lunches for children. AMMC spokesperson Scott Hardin explained the breakdown. “A billion dollars has been spent to purchase medical marijuana but what that means for the state is that we’ve collected 115 million dollars in state tax revenue,” Hardin told ABC 7. “From that $115…$87 went to [University of Arkansas for Medical Sciences] specifically as they tried to obtain that National Cancer Institute designation. Now there’s a change. Now that funding is going to go specifically to food insecurity.”

The “low-cost” part of this means kids are paying very little for food. “What that’ll mean is, if someone is on a reduced school lunch, if they are now paying 50 cents to a dollar, that medical marijuana revenue steps in and pays that to ensure that a student gets that for free,” Hardin explained. “So really students in the state will be not having to pay whatever that burden is. 50 cents, a $1.50 to have reduced school lunch so it really is, it’s affecting Arkansans in a positive way.”

The state currently only has eight cultivators and 38 dispensaries, which Hardin said is plenty of storefronts to serve patients and address the current growth pattern. “Unless something changes, unless voters go back to the polls and either accept a modified program or a recreational program or something that’s really where we are,” he said. “The industry itself, you’re not going to see more dispensaries opening up all over the state. You’re not going to see more growers but what we are seeing is more patients. At the beginning of the year we had 89,000 patients. Now we are pushing 100,000.”

Current data, updated as of Dec. 9, shows that there are 98,099 patients with active medical cannabis ID cards. According to Hardin, the industry has far outpaced initial projections that the state’s mature market would only have approximately 50,000 active cardholders.

The most recent sales data for November 2023 shows that the state collected $257 million. Arkansas’ medical cannabis program launched in May 2019, and between then and October 2023, the state has collected a total of $988.3 million in sales. The combined sales per year breaks down sales from 2019 ($31.2 million), 2020 ($181.8 million), 2021 ($264.9 million), 2022 ($276.3 million), and 2023 ($234 million, but only between January 2023-October 2023).

According to a report from the Arkansas Times, the more accurate number for total sales since medical cannabis began has already surpassed $1 billion. “We’re totally confident we’ve surpassed that,” Hardin said.

According to Arkansas Cannabis Industry Association executive director, Bill Paschall, reaching that $1 billion mark is a sign that cannabis is doing a lot for patients in Arkansas. “It underscores the growing acceptance and recognition of the therapeutic benefits of cannabis and the commitment of the state’s medical cannabis licensees to providing safe, quality and innovative products that meet patients’ needs,” said Paschall. “The men and women employed by the marijuana industry look forward to continuing to positively impact the lives of Arkansans and contributing to the evolving cannabis landscape.”

Arkansas isn’t the only market hitting $1 billion for cannabis sales. A recent report shows that Arizona’s recreational cannabis market has also hit $1.1 billion in sales, but includes sales data from just 2023 (specifically, January 2023-September 2023). Arizona’s overall sales data shows a total of more than $billion since it began sales in January 2021.

In legal news, an Arkansas judge ruled in September that the 2018 Farm Bill takes legal precedence over the state’s ban on hemp-derived cannabinoid products like delta-8. Act 629 of 2023 that passed earlier this year banned delta-8, delta-9, and delta-10 THC products. The lawsuit was filed by four companies (Bio Gen LLC, Drippers Vape Shop LLC, The Cigarette Store LLC, and Sky Marketing Corp) whose lawyers alleged that the ban would harm their businesses. “Plaintiffs have been, and will be, harmed by Act 629, as they are unable to transport in and through Arkansas hemp-derived cannabinoid products that have been declared legal under federal law,” the lawsuit stated.

According to the Arkansas Times, a different ongoing case involves if restrictions on advertising for cannabis businesses is unconstitutional. The lawsuit was filed in 2022 by Good Day Farm, which argued that advertising restrictions violate its right to protected commercial speech. Circuit Judge Chip Welch heard arguments earlier this month, and plans to issue a ruling by the end of the year. Attorney General Tim Griffin already stated that he plans to appeal the decision, if Welch decides to rule in favor of advertising being too restrictive.

The post Arkansas Medical Cannabis Sales Tax Funds School Lunches for Kids appeared first on High Times.

The post Arkansas Medical Cannabis Sales Tax Funds School Lunches for Kids appeared first on Paradise Found.

The implications of a recent federal judge ruling have people in the industry asking: Did a federal judge just legalize help-derived cannabinoids like delta-8 THC, HHC, THCP, and THCa flower? In a nutshell, a judge in Arkansas ruled that the 2018 Farm Bill takes legal precedence over an Arkansas state ban on hemp-derived cannabinoids, which could lay out a blueprint for future legal actions in other states.

On Thursday, U.S. District Judge Billy Roy Wilson ruled to block the enforcement of Act 629 of 2023, which was passed in Arkansas in the 2023 legislative session and banned sales and production of items containing delta-8, delta-9, and delta-10 THC in the state. The judge found the hemp product ban to be conflicting and arbitrary. 

Act 629 was approved in the 2023 regular session of the state’s General Assembly, and it seeks to ban the production and sale of products containing delta-8, delta-9 and delta-10 as well as other THC isomers derived from hemp. Arkansas Gov. Sarah Huckabee Sanders signed Act 629 earlier this year, which bans “poorly regulated products” derived from hemp.

For the time being, hemp sellers in the state are celebrating it as a win. Award-winning attorney Rod Knight believes it could have significant implications for hemp laws in every state, not just Arkansas.

Four Plaintiffs in Arkansas Sue

Four businesses—Bio Gen LLC, Drippers Vape Shop LLC, The Cigarette Store LLC, and Sky Marketing Corp—filed a lawsuit  earlier this month. The companies spoke from several points of the hemp industry chain: a manufacturer, wholesaler, distributor, and retailer. 

Gov. Huckabee Sanders, Attorney General Tim Griffin, Dept. of Finance and Administration, Tobacco Control Board, Dept. Agriculture, State Plant Board, as well as the prosecuting attorneys of the state’s 28 judicial circuits, are all named as defendants in the lawsuit.

Lawyers representing those businesses argued that the law was unconstitutionally vague and that it was preempted by the 2018 Farm Bill. It appears that their argument holds up.

“Plaintiffs have been, and will be, harmed by Act 629,” the complaint reads, according to a report from the Northwest Arkansas Democrat-Gazette, “as they are unable to transport in and through Arkansas hemp-derived cannabinoid products that have been declared legal under federal law.”

Senate Bill 358 was approved and enacted on April 11 as Act 629, and it criminalized all hemp-derived products “produced as a result of a synthetic chemical process” and “[a]ny other psychoactive substance derived therein.” 

But the plaintiffs argue that the Act is superseded by the 2018 Farm Bill and also that its provisions are unconstitutionally vague and therefore void. The Court agreed and entered an injunction that blocks the enforcement of the Act. 

Abtin Mehdizadegan, an attorney representing the plaintiffs, said that his clients tried to avoid legal action before the ban was signed into law.

“Our suit asks the federal court in the Eastern District of Arkansas to enjoin the entirety of Act 629 because it unconstitutionally narrowed the definition of hemp-derived products in violation of the 2018 Farm Bill and impermissibly restricted the transportation and shipment of these products,” Mehdizadegan wrote. “Before the bill was signed into law, we had lengthy dialogues with the defendants during the 2023 legislative session as the bill was making its way through the legislative process.” 

Preempted by 2018 Farm Bill

In its ruling, the Court made three specific conclusions: that the Act is preempted by federal law under the principle of “conflict preemption”, that the Act is preempted by federal law under the principle of “express preemption”, and third, that the Act is unconstitutionally vague and thus void. 

Attorney Rod Knight explained that the Court’s first two findings are based on the legal doctrine of preemption. As the court states, “the federal preemption doctrine stems from the Constitution’s Supremacy Clause, which states that laws of the United States made under the Constitution are the supreme law of the land. State laws that interfere with, or are contrary to the laws of congress, made in pursuance of the constitution are invalid or preempted.” 

There are several types of preemption, and regarding this case, the Court found that two are applicable: “conflict preemption” and “express preemption”. Although similar in their effect, they are based on different premises. The court’s third finding is based on a separate legal doctrine referred to as “void for vagueness” under the due process clause of the Constitution.

Last May, Arkansas became the latest state with a legal cannabis industry to regulate or ban intoxicating hemp-derived products, and they’ve been on shelves since the 2018 Farm Bill legalized hemp production nationwide. Arkansas adopted the 2018 Farm Bill locally through the Industrial Hemp Act 565.

Local news agency KTHV reports that the case is set to go to trial on Aug. 27, 2024.

Congress is set to review the Farm Bill again this year, and there’s a possibility that federal lawmakers could address the unintended rise of hemp-derived cannabinoids, particularly intoxicating ones.

The post Federal Judge in Arkansas Blocks Hemp Cannabinoids Ban in Pivotal Ruling appeared first on High Times.

The post Federal Judge in Arkansas Blocks Hemp Cannabinoids Ban in Pivotal Ruling appeared first on Paradise Found.

The people of Arkansas spent $23.2 million on medical cannabis in July, Arkansas Democrat-Gazette reports. According to the Department of Finance and Administration, such recent spending is set to surpass the state’s record sales from last year. Scott Hardin, a spokesman for the Department of Finance, said July’s sales numbers demonstrate that Arkansas will exceed 2022’s record medical marijuana sales, which reached $270 million.

Arkansas medical marijuana patients spent $164.6 million on cannabis from January to July of 2023, which marks a $7.3 million increase from the first seven months of 2022. That figure accounts for a whopping 5,157 pounds of bud, bringing the year’s total to 34,214.

“If sales remain consistent for the next several months, we will complete 2023 with total sales reaching more than $280 million,” Hardin shared in a news release. “The state collected $2.5 million in tax revenue from medical marijuana in July. This brings total medical marijuana tax revenue in 2023 to $18.5 million, and $108 million since the first dispensary opened in May 2019.”

July came in fifth in 2023 for sales compared with other months, showing that even an impressive $23.2 million isn’t the biggest figure Arkansas can brag about. The highest-earning month of the year is March, which raked in $25 million worth of sales. The state’s lowest earning month of the year still comes in at $22.4 million, Hardin shares. 

However, while sales are up, the tax revenue generated does not necessarily reflect sale numbers. For example, the $18.5 million in tax revenue the state has collected from medical marijuana sales through July 2023 is slightly down from 2022’s figures around this year, which clocked in at $18.7 million.

The highest-earning dispensaries that sold the most medical marijuana were Suite 443 of Hot Springs, selling 551.7 pounds in July, and Natural Relief Dispensary in Sherwood, which sold 462.1 pounds.

Arkansas voters legalized medical marijuana through a constitutional amendment in 2016. The state saw its first dispensaries open shop in 2019. Since then, as these figures reflect, there’s been a gradual and continual increase in the number of medical patients. The current figure clocks in at 94,059, according to the latest numbers from the Department of Health. This number is up from the 88,893 registered cardholders in 2022. 

Despite such gains in medical sales, in Arkansas, the state has yet to embrace recreational marijuana. Back in November of 2022, voters rejected Issue 4, a measure that would have legalized adult-use cannabis, to the dismay of Arkansas cannabis advocates who worked so hard to push the bill through.  

Those pushing the failed measure were led by Responsible Growth Arkansas, an advocacy group concerned with reforming drug law, prison sentencing, and healthcare research. The bill would have amended the constitution to authorize the possession, personal use, and consumption of cannabis by adults 21 and over, as well as legalizing the cultivation and sale of cannabis by licensed commercial facilities.

However, the measure did face criticism. Some complained that it didn’t include expungement provisions or allow for home growing. There were also questions about the method of implementation. As a constitutional amendment, it would take a lot of work to make those changes further down the line. As a result, even die-hard pro-cannabis reformers weren’t over the moon excited about Issue 4. 

And Arkansas is a conservative state, making any change towards cannabis reform trickier, even in a time where some conservatives show bi-partisan support for cannabis and psychedelic legalization. State officials, such as Arkansas’ secretary of state, challenged the measure’s validity.

While those in support submitted more than the number of signatures required for the proposal to qualify for the ballot, the state Board of Election commissioners still rejected the measure, arguing that the ballot title didn’t adequately explain what the measure meant to voters. 

Arkansas Gov. Asa Hutchinson even held a joint press briefing on October 31, 2022, at the Arkansas State Chamber of Commerce in Little Rock to speak out against Issue 4. “This puts us at a disadvantage in [the] recruiting industry if Issue 4 passes,” Hutchinson said, citing how workplace drug testing would be affected.

So, for now, Arkansas only has (quite profitable) medical cannabis under Amendment 98. Hutchinson’s concern regarding workplace drug testing comes at a time when changes regarding drug testing are sweeping the nation. 

For instance, The Michigan Civil Service Commission recently passed a change that would end drug screenings for cannabis for applicants for many state jobs. This rule would overturn previous state policy that automatically disqualified applicants to state positions that tested positive for cannabis (although applicants to some jobs will still be required to pass a marijuana screening before hiring). 

Additionally, as noted regarding bipartisan support in the country, despite what the Republicans in Arkansas believe, Matt Gaetz of Florida recently proposed an amendment to the National Defense Authorization Act that would cease cannabis testing for military members. 

The post Arkansas Medical Cannabis Sales Set To Surpass Last Year’s Record Of $270M appeared first on High Times.

The post Arkansas Medical Cannabis Sales Set To Surpass Last Year’s Record Of $270M appeared first on Paradise Found.

A group of hemp businesses has filed a legal action challenging a new Arkansas law that bans hemp-derived psychoactive cannabinoids including delta-8 THC, arguing the statute violates the 2018 Farm Bill’s provisions that legalized hemp agriculture. The lawsuit, which was filed in federal court in Little Rock on Monday by four hemp businesses, seeks an injunction blocking Act 629, a law banning hemp-derived psychoactive cannabinoids that went into effect on August 1.

Act 629 bans the production and sale of products containing delta-8, delta-9 and delta-10 THC and other variations of the cannabinoids inside the state of Arkansas. Such products have been legal under federal law since 2018, when that year’s Farm Bill legalized hemp with less than 0.3% delta-9 THC. Despite their low delta-9 THC content, other psychoactive cannabinoids can be extracted from hemp, and hemp-derived CBD can be processed into psychoactive cannabinoids in a laboratory.

The four plaintiffs in the case include a manufacturer, wholesaler, distributor and retailer of hemp products that would be affected by the ban. They are asking the court to block Act 629, arguing that the statute does not comply with the U.S. Constitution’s commerce and supremacy clauses and is a violation of the 2018 Farm Bill.

“Plaintiffs have been, and will be, harmed by Act 629,” the complaint reads, according to a report from the Northwest Arkansas Democrat-Gazette, “as they are unable to transport in and through Arkansas hemp-derived cannabinoid products that have been declared legal under federal law.”

Federal Court Ruled Delta-8 Is Legal In 2022

Last year, the federal Ninth Circuit Court of Appeals issued a ruling in a trademark case in which the legality of delta-8 THC was a key factor. The court confirmed that delta-8 THC is legal under the 2018 Farm Bill.

“Regardless of the wisdom of legalizing delta-8 THC products, this Court will not substitute its own policy judgment for that of Congress,” the appellate court wrote in its ruling. “If … Congress inadvertently created a loophole legalizing vaping products containing delta-8 THC, then it is for Congress to fix its mistake.”

The plaintiffs in the case are Bio Gen, LLC of Fayetteville; Drippers Vape Shop, LLC of Greenbrier; The Cigarette Store LLC of Colorado, doing business as Smoker Friendly; and Sky Marketing Corporation of Texas doing business as Hometown Hero. Drippers is a retailer of hemp products, including non-psychoactive CBD as well as hemp-derived psychoactive substances Delta-8 and Delta-9 THC, and has stores in the communities of Greenbrier, Cabot, Hot Springs, El Dorado and Benton, according to a report from the Arkansas Times.

The named defendants in the lawsuit are the state of Arkansas, Governor Sarah Huckabee Sanders, Attorney General Tim Griffin, the Arkansas Department of Finance and Administration, the Arkansas Tobacco Control Board, the Arkansas Department of Agriculture, the State Plant Board and the prosecuting attorneys of the state’s 28 judicial circuits.

Abtin Mehdizadegan, the lead attorney for the plaintiffs, says that his clients tried to avoid legal action before Act 629 was signed into law.

“Our suit asks the federal court in the Eastern District of Arkansas to enjoin the entirety of Act 629 because it unconstitutionally narrowed the definition of hemp-derived products in violation of the 2018 Farm Bill and impermissibly restricted the transportation and shipment of these products,” Mehdizadegan wrote in an email. “Before the bill was signed into law, we had lengthy dialogues with the defendants during the 2023 legislative session as the bill was making its way through the legislative process.” 

“We also testified before a House Subcommittee to explain the constitutional infirmities in the initial draft of Act 629,” Mehdizadegan continued. “At the same time, we remain ready and willing to continue those discussions and would invite the State to meet us at the table to arrive at a sensible resolution. We do not oppose all forms of regulation and would support sensible policies that appropriately treat hemp-derived products for what they are: as an agricultural commodity.”

Cynthia Cabrera, chief strategy officer at Hometown Hero CBD, one of the plaintiffs in the case, said that Arkansas’ ban on hemp-derived cannabinoids would harm small businesses and hamper the growth of the state’s hemp industry.

“Mom-and-pop farmers, manufacturers, and retailers have put their life blood into building legacy businesses around a federally legal product,” Cabrera said in a statement to High Times. “Businesses like Hometown Hero invested in Arkansas in part relying on the state’s declared public policy to position itself at ‘the forefront of industrial hemp production, development, and commercialization.’ And overnight, Act 629 turned farmers into felons and retailers into drug dealers—all in violation of federal law. Ultimately, we would like to see reasonable regulation that allows businesses to grow and thrive while allowing adult consumers access to safe, legal hemp-derived products.”

Act 629 also includes provisions to regulate psychoactive hemp-derived cannabinoids in the event that the ban is struck down by the courts. Under the regulatory plan, wholesalers, distributors and retailers of the products would be required to obtain a permit from Arkansas Tobacco Control at a cost of $5,000 per year. Psychoactive cannabinoids derived from hemp would be legal, but the statute would prohibit mixing the compounds with additives such as liquids, sweeteners or other non-hemp products. The plaintiffs of the lawsuit are also challenging the regulatory plan, arguing that the rules put unreasonable burdens on them and amount to a “regulatory taking” of their legal property that makes it unusable.

The post Arkansas Hemp Firms File Suit Against Delta-8 THC Ban appeared first on High Times.

The post Arkansas Hemp Firms File Suit Against Delta-8 THC Ban appeared first on Paradise Found.

One Arkansas lawmaker wants to ban the hemp products that have taken over shelves at gas stations and convenience stores.

Republican state Sen. Tyler Dees introduced a bill last week that would ban the likes of Delta-8, Delta-9 and Delta-10 –– legal, but under-regulated compounds that have been known to produce a high similar to that of cannabis. 

“It’s because of an accessibility issue where you can walk into a regular gas station and purchase this product as if you’re purchasing Skittles or any other candy,” Dees told local news station THV11.

Hemp-derived products have become ubiquitous in recent years, particularly following Congress’ passage of the 2018 Farm Bill, which legalized industrial hemp production.

But critics have lamented that many of those hemp products are subject to little, if any, regulation, posing risks to consumers who believe what they’re consuming to be mostly harmless.

Dees claimed to the station that poison control “is being contacted of cases where kids are, are digesting products that are causing harm to them.”

THV11 followed up with the state’s poison control, which “said that while there are no specific numbers when it comes to Delta 8 because the data didn’t start being collected until January 2021, they have been seeing an increase in kids being exposed to THC products.”

“Any THC-containing product is potentially harmful. Whether or not it’s Delta 8 or Delta 9,” Ari Filip, the medical director for Arkansas Poison Control Center, told the station. “We worry about this having psychoactive effects so it should be kept away, locked inaccessible to children.”

Arkansas voters rejected a proposal at the ballot last November that would have legalized recreational cannabis in the state.

The state’s Republican governor, Sarah Huckabee Sanders, who was elected in the November election, voted against the proposal.

“I don’t think that with the drug epidemic that we have across this state, frankly across the country, that adding and giving more access to that does anything to benefit Arkansas, so I certainly wouldn’t be supportive of that,” Huckabee Sanders, a former press secretary for Donald Trump, said in October. 

Her father, former Arkansas Gov. Mike Huckabee, has also spoken ill of the cannabis industry.

In a video last fall urging voters to reject the legalization measure, Huckabee said that “you aren’t the one who is going to be making the money, drug cartels will.”

“And if you are one of those people that can sell the drug, maybe you’ll make a buck off of the gullible people who will somehow convince themselves this is absolutely harmless,” the former governor added.

Medical cannabis is legal in Arkansas, however, and a co-sponsor of the bill to ban Delta-8 and other hemp products, state Sen. Jonathan Dismang, insisted that the measure would not affect that program.

“I mean, you have to have your card and there are benefits that are, you know, for those patients, this isn’t about that,” Dismang told THV11. “I mean, a high school kid right now can go purchase. Again, I think that’s wrong.”

Arkansas legalized medical cannabis in 2016, when a majority of voters approved an amendment authorizing the treatment. 

Per the state’s Department of Health, patients with the following conditions may qualify for a medical cannabis prescription: “Cancer; Glaucoma; Positive status for human immunodeficiency virus/acquired immune deficiency syndrome; Hepatitis C; Amyotrophic lateral sclerosis; Tourette’s syndrome; Crohn’s disease; Ulcerative colitis; Post-traumatic stress disorder; Severe arthritis; Fibromyalgia; Alzheimer’s disease; Cachexia or wasting syndrome; Peripheral neuropathy; Intractable pain which is pain that has not responded to ordinary medications, treatment, or surgical measures for more than six (6) months; Severe nausea; Seizures including without limitation those characteristic of epilepsy; Severe and persistent muscle spasms including without limitation those characteristic of multiple sclerosis; and any other medical condition or its treatment approved by the Department of Health.”

The post Arkansas Bill Seeks Ban on Delta-8, Other Hemp Products appeared first on High Times.

The post Arkansas Bill Seeks Ban on Delta-8, Other Hemp Products appeared first on Paradise Found.

Regulators in Arkansas on Monday revoked a medical marijuana cultivator’s license to operate after a judge ruled earlier this month that the state erred when it granted the license two years ago. Doralee Chandler, the director of the Alcoholic Beverage Control Administration and the head regulator of the state Medical Marijuana Commission (MMC), revoked the license from medicinal cannabis cultivator River Valley Relief (RVR) on November 28 at a hearing that lasted nearly an hour.

The Arkansas Medical Marijuana Commission granted RVR a license to cultivate medicinal cannabis in July 2020, making the company the last of eight growers authorized by the state. But another company, 2600 Holdings, filed a lawsuit in January 2021, arguing that RVR should not have been granted the cultivation license. The plaintiff asked the court to disqualify River Valley Relief and award the license to 2600 or provide other relief under the Arkansas Administrative Procedures Act.

Attorneys for 2600 argued that the MMC had illegally granted the license to Nolan Storm, the owner of RVR, during the state’s second round of cultivator licensing. They maintained that the action violated state law because Storm’s license application was no longer valid and the site for the cultivation operation was too close to Sebastian County Juvenile Detention Center. The plaintiff argued that the site violated state requirements that medical marijuana facilities be located at least 3,000 feet from schools, churches, and daycare centers.

The case was litigated for the state by attorneys for the DFA, which submitted a 36-page brief disputing 2600’s filing. Nolan and his legal representatives were blocked from participating in the case by Pulaski County Circuit Court Judge Herb Wright. 

Earlier this month, Wright ruled that 2600 had proven its case and should be granted relief, ordering that RVR’s license be revoked. The judge decided that the MMC’s action had exceeded the agency’s authority, which is referred to as an “ultra vires” act.

“Plaintiff has, therefore, met its burden in showing that the undisputed facts of the case, viewed in a light most favorable to Defendants, prove that the plaintiff is entitled to relief,” Wright noted in his ruling handed down on November 3. “Defendants have acted unreasonably, unlawfully, and capriciously by awarding Nolan a license.”

“An effort was clearly made by the MMC to give Nolan thread to stitch up the holes in the RVRC application,” Wright continued in his decision. “Whether that was fair or unfair to any of the applicants, it was at minimum an unconstitutional and ultra vires act.”

Arkansas License Revoked at Hearing on Monday

At a Monday hearing of the Arkansas Department of Finance and Administration (DFA), the MMC oversight agency, Nolan and his attorney Matthew Horan argued that Wright’s decision contained important errors. Nolan addressed each point while under oath during the hearing, saying that he was trying to abide by the state Medical Marijuana Commission’s rules and the guidelines of officials including the secretary of state. Among other points, the attorney argued that the cultivation site, which is 2,400 feet from the youth detention center, did not violate MMC regulations.

“There is no evidence anywhere that the detention center is operated by a public school,” Horan said, adding that the Arkansas Department of Education issued a letter saying the juvenile facility was not a school. But Chandler noted that the hearing was being held solely for the purpose of deciding on the license revocation and refused to reconsider matters settled by the court case.

“We’re not here to litigate matters over any other location,” Chandler told Nolan, according to a report from the Arkansas Times. “You need to worry about your permit and your application.”

Scott Hardin, a spokesman for the DFA, said in a statement that the formal license revocation order would likely be issued no later than the end of the week, according to a report from Arkansas news site Talk Business & Politics.

Hardin also noted that Nolan has appealed Chandler’s administrative decision to revoke the license. The appeal temporarily halts the license until after a hearing by the full board overseeing Arkansas Alcoholic Beverage Control. The next hearing of the board is scheduled for December 21, meaning that RVR will be able to continue operating at least until that time.

After Monday’s hearing, Nolan said that the case would be appealed to the Arkansas Supreme Court.

“River Valley Relief Cultivation has appealed the Pulaski Circuit Court decision to the Arkansas Supreme Court,” Nolan said in a statement to Talk Business & Politics. “RVRC has asked that proceedings be stayed until the appeal is heard. We await the decision of the Supreme Court.” 

The post Arkansas Regulators Revoke Medical Cannabis Cultivator’s License appeared first on High Times.

The post Arkansas Regulators Revoke Medical Cannabis Cultivator’s License appeared first on Paradise Found.