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006.02.7-23. Prohibited Activities; Grounds for Suspension, Revocation, or Levy of Fine Against...

AR ADC 006.02.7-23Arkansas Administrative CodeEffective: July 16, 2020

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 02. Alcoholic Beverage Control
Rule 7. Rules Governing the Oversight of Medical Marijuana Cultivation Facilities, Processors and Dispensaries by the Alcoholic Beverage Control Division
Effective: July 16, 2020
Ark. Admin. Code 006.02.7-23
Formerly cited as AR ADC 006.02.7-21
006.02.7-23. Prohibited Activities; Grounds for Suspension, Revocation, or Levy of Fine Against any License or Registry Identifcation Card.
23.1 Grounds for Suspension or Revocation of a Registry Identification Card
The Division may suspend or revoke the registry identification card of any cultivation facility agent, processor agent, or dispensary facility's agent who knowingly violates any provision of the Amendment or the rules promulgated by the Commission, Department, or Division.
23.2 Grounds for Suspension, Revocation, or Placing of Monetary Fine against a Dispensary, Processor, or Cultivation Facility
Any dispensary, cultivation, or processing license may be suspended, revoked, or may be assessed against the licensee a monetary fine of up to five thousand ($5000) dollars for any violation of the Arkansas Medical Marijuana Act by any licensee or any employee, agent or servant of the licensee, including the following violations:
a. False material statements made by a licensee to the Arkansas Medical Marijuana Commission during the application process;
b. Failure of the licensed facility to pay taxes owed to the State of Arkansas or to any political subdivision of the State of Arkansas;
c. Failure to prevent diversion or theft of medical marijuana;
d. Allowing any employee, supervisor, volunteer, or agent who has not obtained or had suspended or revoked, a registry identification card from the Division to work on a licensed premise or perform any duty on behalf of the dispensary, processor, or cultivation facility;
e. Failure to allow entry to the licensed premises to Enforcement agents or duly authorized police officers in the course and scope of their employment;
f. Failure to maintain operational alarm systems and video surveillance systems;
g. Failure to maintain or keep any record required by these rules or Arkansas law;
h. Failure to comply with advertising and marketing restrictions;
i. Failure to properly package or secure medical marijuana on the licensed premises or during transport;
j. Failure to properly dispose of medical marijuana;
k. Operating a cultivation facility, processor, or dispensary when a license has been suspended;
l. Failure to comply with any rule promulgated by the Arkansas Department of Health regarding medical marijuana;
m. Failure to comply with any rule promulgated by the Arkansas Medical Marijuana Commission;
n. Failure to comply with any law of the State of Arkansas concerning medical marijuana;
o. Failure to comply with any local regulation regarding medical marijuana;
p. Failure to comply with any rule of the Division.
q. Knowingly aiding or facilitating in a violation of the Amendment, rules promulgated by the Commission, Department, or Division, or any other law of the State of Arkansas.
23.3 Grounds for Suspension, Revocation, or Placing of Monetary Fine against a Cultivation Facility License
Any cultivation license may be suspended, revoked, or may be assessed against the licensee a monetary fine of up to five thousand ($5000) dollars for any violation of the Arkansas Medical Marijuana Act by any licensee or any employee, agent or servant of the licensee, including the following violations:
a. Possession of usable marijuana in excess of the amount reasonably necessary to meet the demand for and needs of qualifying patients as determined by the Arkansas Medical Marijuana Commission and the Arkansas Department of Health;
b. Selling, delivering, or transporting marijuana in any form to any person or entity without the required license issued by the Arkansas Medical Marijuana Commission or an approved laboratory for testing purposes;
c. Giving marijuana to any person or entity;
d. Selling marijuana to any dispensary or cultivation facility that has a license under suspension, revocation, or that has not been renewed;
e. Failure to properly label and package marijuana that is moved between the cultivation facility and a dispensary or other cultivation facility.
f. Failure to utilize the Inventory Tracking System for reporting and inventory control.
23.4 Grounds for Suspension, Revocation, or Placing of Monetary Fine against a Processor License
A processor license may be suspended, revoked, or a monetary fine of up to five thousand ($5000) dollars may be assessed against the licensee for any violation of the Arkansas Medical Marijuana Act by any licensee or any employee, agent or servant of the licensee, including the following violations:
a. Possession of usable marijuana in excess of the amount reasonably necessary to meet the demand for and needs of qualifying patients as determined by the Arkansas Medical Marijuana Commission and the Arkansas Department of Health;
b. Growing, selling, or dispensing medical marijuana;
c. Giving marijuana to any person or entity;
d. Failure to properly label and package marijuana that is moved between the processor and a dispensary or cultivation facility.
e. Failure to utilize the Inventory Tracking System for reporting and inventory control.
23.5 Grounds for Suspension, Revocation, or Placing of Monetary Fine against a Dispensary License
Any dispensary license may be suspended, revoked, or assessed a monetary fine of up to five thousand ($5000) dollars for any violation of the Arkansas Medical Marijuana Act by any licensee or any employee, agent or servant of the licensee, including the following violations:
a. Accepting marijuana seeds, seedlings, plants, or usable marijuana from an unauthorized source;
b. Transferring, selling, or delivering marijuana seedlings, plants, or usable marijuana to any entity or person, except as allowed by law by dispensaries, transporters, processors, and cultivation facilities licensed by the Arkansas Medical Marijuana Commission, qualifying patients, visiting qualifying patients, designated caregivers, and approved laboratories for testing purposes;
c. Dispensing more than a total of two and one-half ounces (2 ½ oz.) of usable marijuana to either a qualifying patient or designated caregiver acting on behalf of a qualifying patient during a fourteen (14) day period. A dispensary shall not dispense more than a total of two and one-half ounces (2 ½ oz.) of usable marijuana to a visiting qualifying patient during a fourteen (14) day period;
d. Failure to record and report required information for all transactions for the dispensing of usable marijuana;
e. Giving samples of marijuana or marijuana products.
f. Failure to utilize the Inventory Control Tracking System for reporting and inventory control.
g. Use of a self-service machine such as a vending machine for the purchase and dispensing of medical marijuana.
h. Failure to properly label and package marijuana or marijuana products that are to be sold to qualified patients, qualified visiting patients, and qualified patient care providers.

Credits

Adopted July 29, 2017. Amended July 16, 2020.
Current with amendments received through December 15, 2023. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.02.7-23, AR ADC 006.02.7-23
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