The Arkansas Alcoholic Beverage Control Division on Thursday announced it had revoked the medical marijuana dispensary license for Green Springs Medical Dispensary in Hot Springs after the business racked up more than 50 regulatory violations in recent years.
It’s the first dispensary license to be revoked since the medical cannabis industry launched in Arkansas in 2019.
ABC cited violations including 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.
Most recently, Green Springs allegedly sold 1,800 expired products. The ABC said its enforcement agents conducted an undercover purchase of expired products in October following a verbal warning about the products. Altogether, the violations showed a “pattern of noncompliance,” said Trent Minner, head of the Department of Finance and Administration’s Regulatory Division, which includes ABC.
“A license to operate in the medical marijuana industry in Arkansas is a privilege not to be taken lightly,” he said. “When state law is consistently disregarded, ABC has a duty to revoke the license.”
The dispensary’s permit holder, Dragan Vicentic, told Arkansas Business that he plans to appeal, which will result in an immediate stay and allow the dispensary to remain open. The next step would be for Vicentic and ABC staff to testify before the regulatory agency’s board. If the board upholds the revocation, Green Springs can appeal in circuit court.
Vicentic said he was “very surprised” by ABC’s decision because he had paid fines, usually between $8,000 and $12,000 per inspection, to settle past violations. He also said he moved quickly to address alleged rule breaches. After the latest fine doubled past amounts, Vicento said he tried answer each of the allegations at an ABC hearing.
“I thought I’d mitigated most of the damage,” he said.
Vicento disputed the ABC’s claim that he sold expired products. By his account, inspectors warned Green Springs that products more than a year old have to be reinspected for THC potency. So the dispensary discounted those products and sold them before the reinspection date.
Green Springs is the second of 38 dispensaries to open in the state. It was No. 8 on Arkansas Business’ 2023 list of dispensaries ranked by sales, with 2,472 pounds sold at estimated value of $11.24 million. The value was estimated based on the average price per pound for all of 2023.
The dispensary had 30 employees as of January.
ABC Director Christy Bjornson said in a statement that enforcement agents “consistently share information with permit holders to streamline processes and avoid potential violations.” She said owners and employees typically make changes to remain compliant.
“When a dispensary ignores warnings, violations, and guidance offered by ABC, the only remaining option is revocation,” Bjornson said. “We anticipate an appeal and look forward to presenting our case to the Board.”
Arkansas’ licensed dispensaries have sold more than $1.1 billion worth of medical cannabis since the first dispensary opened. Last year was the largest year for sales, state officials said, at $283 million.
Arkansas Business Contributing Editor Gwen Moritz contributed information to this report.
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