Five pot dispensaries won’t open before March

Five medical marijuana dispensaries don’t plan to open until March or later, but a proposed rule would put those dispensaries in jeopardy if they aren’t operational by February.

Doralee Chandler, Alcoholic Beverage Control director, told the Arkansas Medical Marijuana Commission on Wednesday half of the 22 unopened dispensaries around the state should begin operating over the next two months.

However, 11 dispensaries have pushed back their expected opening dates to 2020 since telling regulators earlier this year they’d open by the end of the year.

Arkansas’ first 32 dispensary licenses were issued in January; 10 of the private businesses have opened and are serving patients.

Chandler said she’s working on promoting a rule allowing the Alcoholic Beverage Control Board to revoke a dispensary permit if the retailer isn’t operational within a year of being issued the license.

In a survey of dispensaries presented to the commission Wednesday, six told state regulators they expected to open in November; five said December; and 11 said 2020.

The pace at which dispensaries have opened has

frustrated commissioners, who are tasked with issuing medical cannabis growing and selling licenses.

“Is there anything we can do to encourage them to speed up?” Commissioner Travis Story, a Fayetteville attorney, asked Chandler.

“We’re encouraging them to speed up every time we communicate with them,” she replied.

The implementation of Arkansas’ medical marijuana program has been plagued with delays since Arkansans voted to legalize the drug through Amendment 98 to the Arkansas Constitution in 2016.

The five cannabis growing licenses were issued in July 2018 after legal and bureaucratic delays, and two of those cultivators still haven’t begun growing.

The 32 dispensary permits were issued in January, and the first opened in May.

Since May 10, qualified medical cannabis patients have bought more than 2,159 pounds of marijuana from the 10 open dispensaries. Sales have eclipsed $15.3 million.

“Is that a lot?” asked the commission chairwoman, Ronda Henry-Tillman. The commission’s attorneys replied with affirmative nods.

Cannabis can be legally purchased by patients who are certified by a doctor to have one of 18 qualifying conditions. The Arkansas Department of Health has issued more than 25,900 patient cards.

Large regions of the state remain without dispensaries. The commission divided Arkansas into eight zones with four dispensaries apiece. Three zones still lack operational dispensaries.

At least five dispensaries told Alcoholic Beverage Control staff they wouldn’t be open until spring 2020 or after.

Those dispensaries are:

• Big Fish of North Central Arkansas in Heber Springs • Delta Cannabis Co. in West Memphis

• River Valley Relief in Morrilton

• Johnson County Dispensary in Clarksville

• Pine Bluff Agriceuticals in Pine Bluff

A sixth — THC RX of West Memphis — had an opening date of “unknown” listed on the spreadsheet Chandler provided commissioners.

Attempts to reach officials for those businesses for comment were unsuccessful following Wednesday’s meeting, which was after business hours.

When Chandler initially surveyed dispensaries over the summer, all but one insisted they’d open prior to 2020. Chandler said most of the dispensaries have attributed land-purchase and construction problems as the sources of delay.

She said the rule would allow licenses to be revoked if the company isn’t operable within a year of issuance is in the promulgation process, currently being reviewed by the governor’s office.

State executive agency rules must go through a lengthy approval process including gubernatorial review, a public comment period and legislative approval. Chandler said she hopes the rule can be finalized by January.

Under the rule, Chandler said licenses would be considered “abandoned” if the facility remains unopened after 365 days. She said a licensee could petition for an extension, which would require showing good cause.

The rule would also apply to cultivation permit holders. Two licensed cultivators — Natural State Wellness Enterprises and Delta Medical Cannabis Co., both of Newport — are still not operating; they expect to begin growing in November and December, respectively.