Fact-checking the state fair flyer: What it gets right, wrong and in-between

Someone gave this to me at the fair. Something to think about before voting. pic.twitter.com/6aEsJqfRAB

— Grant Smith (@grant4arkansas) October 19, 2022

The flyer is the same as the one cannabis advocate and Issue 4 opponent Melissa Fults sent to Arkansas Cannabiz last week. 

Here’s a point-by-point fact check on the flyer: 

“1. Does not increase the number of cultivators. They already have trouble keeping up with the demand for patients, how can they keep up with 300,000 more consumers.” 

This is false. The amendment would increase the number of cultivators from eight to 20. The additional 12 cultivators would receive Tier Two licenses and would be allowed to grow up to 250 mature plants (and have hundreds more plants in various stages of immaturity). It’s true the amendment would not increase the number of Tier One cultivators, which  would be allowed to grow an unlimited number of plants.

“2. Does not expunge prior convictions, even small ones that are under one ounce. While the cultivators are making millions of dollars, thousands of Arkansans will still have their lives destroyed by something that would be legal for any other adult.” 

This is true. The amendment does not address prior convictions. 

“3. Rewrites the definition of cannabis, such that hemp and CBD sales will only be allowed at dispensaries. Current hemp growers, processors and CBD retailers will lose their license and take their businesses and livelihood away.” 

This is merely speculation. The Supreme Court ruling that placed the amendment on the ballot said “any effect on the industrial-hemp industry is speculative at this point.” 

4. Removes the limitation on companies holding and seeking licenses to be majority-owned by Arkansas residents. 

This is true. The amendment would eliminate ownership requirements based on residency. According to current state law, at least 60% of the ownership interest of cultivators and dispensaries must be held by Arkansas residents. 

“5. Expands the number of dispensaries across the state to 120. Note that the current 40 medical dispensaries will automatically be awarded additional ‘recreational’ licenses, making the effective number of new available licenses 40.” 

This is true. The medical dispensary licensees will hold their licenses and be awarded recreational dispensary licenses. Another 40 licenses will be awarded through a lottery. 

“6. Does not provide home cultivation license. Anyone who is caught growing will face a felony.” 

This is both true and false. It is true the amendment will not allow for residents to grow their own cannabis plants. It is false that those caught growing will face a felony. According to the National Organization for the Reform of Marijuana Laws, cultivation in Arkansas is punishable by “either simple possession or as possession with intent to deliver, depending on the amount of marijuana being produced and other factors that may lead to the conclusion that the marijuana was being grown for reasons other than strict personal use.” Possession of less than four ounces of marijuana is a Class A misdemeanor in Arkansas. Possession of between one and four ounces by an offender who has had four or more previous drug convictions is a Class D felony, according to NORML. 

“7. Expands the number of dispensary licenses that any one company or person can have to 18. Since any person or entity can own up to 18 licenses, it’s possible that just seven people (or companies) could control the entire industry in Arkansas.” 

This is true. The amendment says “no individual or entity may have an ownership interest in more than 18 adult use dispensaries.” 

“8. Provides protections to employers, not employees. No one should be under the influence of any mind-altering substance while on the job; however, since marijuana can be detected for up to 30 days, an employer would have the right to fire or refuse to hire any employee if they test positive.”

This is true. The amendment says that “nothing in this amendment shall limit ability of employers to establish drug-free workplace policies restricting the adult use of cannabis.” But the amendment doesn’t eliminate the medical program, and having a medical card may continue to provide some employees with protection in the workplace. 

“9. Removes the need for any owner that holds 5% or less to have a background check while still enforcing that all employees or caregivers obtain one.” 

This is true. The amendment will eliminate the need for background checks for anyone holding 5% or less of the ownership of a dispensary or cultivator. Eddie Armstrong, chair of Responsible Growth Arkansas, said the background check requirements will remain the same for employees and anyone with a card authorizing access to restricted areas of the facilities. 

“10. Nothing can be changed and industry can never grow. It would require another ballot initiative which would run several million dollars.” 

It is true that the amendment does not allow the state legislature to make changes. Any changes would have to come through another ballot initiative. 

“11. Only the original 40 dispensaries will be allowed to sell to patients.” 

This is true and false. Consumers will only be able to make medical purchases at the 40 medical marijuana dispensaries and they will not pay tax on those purchases. Those consumers will also be able to make nonmedical purchases at recreational dispensaries and the amount of those purchases will not count against their medical allotment. Those consumers will pay taxes on recreational purchases. 

“12. This amendment is not a start, it is a brick wall.” 

This is an opinion and cannot be evaluated as being true or false.