Arkansas Judge Rules Medical Marijuana Commission Exceeded Authority in Issuing Dispensary License
A circuit judge in Arkansas has ruled that the state’s Medical Marijuana Commission (MMC) exceeded its authority when it issued a dispensary license to a Fort Smith cultivation facility. The facility, River Valley Relief Cultivation, was granted a license in 2020 despite being located too close to a juvenile detention center, which is prohibited by state law.
The ruling, issued by Pulaski County Circuit Judge Herbert Wright, is the second time the commission’s decision has been overturned. Wright previously ruled in 2022 that the commission issued the license in error, and the Arkansas Supreme Court reversed and remanded the ruling in April 2024.
The dispute centers around the application submitted by Bennett “Storm” Nolan, who received the license despite the address on his application being too close to the Sebastian County Juvenile Detention Center. Amendment 98, the 2016 voter-approved constitutional amendment that legalized medical marijuana in Arkansas, prohibits dispensaries within 3,000 feet of a school.
Wright expressed disapproval of the commission granting the license to a dissolved company, River Valley Production, which Nolan had dissolved in 2019 after not receiving one of the first five licenses the Medical Marijuana Commission issued. The judge also questioned why the commission made so many accommodations for Nolan despite concerns and protests being raised during the application process.
The judge ruled that the commission exceeded its authority and did not act within its ministerial duty. The commission will discuss the lawsuit at its monthly meeting Thursday.
Nolan plans to appeal the ruling and will keep the dispensary operational as long as he still has the license. The attorney representing the plaintiff, 2600 Holdings, does not see a basis for the appeal and hopes the Arkansas Supreme Court will uphold Wright’s ruling.
The dispute highlights the importance of following state law and regulations when issuing licenses for medical marijuana dispensaries. The ruling may have implications for the state’s medical marijuana program, which currently has 37 active dispensaries out of a maximum of 40 allowed by law.
