State of Arkansas; Arkansas Department of Finance and Administration; And Arkansas Department of Finance and Administration, Alcoholic Beverage Control Division v. Good Day Farm Arkansas, LLC; And Capital City Medicinals, LLC

2025 Ark. 207
CourtSupreme Court of Arkansas
DecidedDecember 11, 2025
StatusPublished

This text of 2025 Ark. 207 (State of Arkansas; Arkansas Department of Finance and Administration; And Arkansas Department of Finance and Administration, Alcoholic Beverage Control Division v. Good Day Farm Arkansas, LLC; And Capital City Medicinals, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of Arkansas; Arkansas Department of Finance and Administration; And Arkansas Department of Finance and Administration, Alcoholic Beverage Control Division v. Good Day Farm Arkansas, LLC; And Capital City Medicinals, LLC, 2025 Ark. 207 (Ark. 2025).

Opinion

Cite as 2025 Ark. 207 SUPREME COURT OF ARKANSAS No. CV-24-704

Opinion Delivered: December 11, 2025 STATE OF ARKANSAS; ARKANSAS DEPARTMENT OF FINANCE AND APPEAL FROM THE PULASKI ADMINISTRATION; AND COUNTY CIRCUIT COURT ARKANSAS DEPARTMENT OF [NO. 60CV-22-931] FINANCE AND ADMINISTRATION, ALCOHOLIC BEVERAGE CONTROL HONORABLE MORGAN E. WELCH, DIVISION JUDGE APPELLANTS REVERSED AND DISMISSED.

V.

GOOD DAY FARM ARKANSAS, LLC; AND CAPITAL CITY MEDICINALS, LLC APPELLEES

CODY HILAND, Associate Justice

This appeal concerns the General Assembly’s authority to amend voter-initiated laws

and the constitutional limits on the germaneness of such amendments. On appeal, the State

of Arkansas, the Arkansas Department of Finance and Administration, and its Alcoholic

Beverage Control Division (collectively, the “State”), ask us to decide two questions: first,

whether authority to amend exists under article 5, section 1 of the Arkansas Constitution;

and second, whether the word “section” in section 23(a) of amendment 98 should be read

as “amendment” for the purpose of applying its germaneness requirement? The Pulaski

County Circuit Court held that the General Assembly has no such authority under article

5, section 1, as Arkansas Game & Fish Commission v. Edgmon, 218 Ark. 207, 235 S.W.2d 554 (1951), controls, and that the use of the term “section,” rather than “amendment,” limits

the application of section 23(a)’s germaneness requirement. We disagree and therefore

reverse and dismiss.

I. Background

In November 2016, the people of Arkansas voted to approve the Arkansas Medical

Marijuana Amendment of 2016, which became amendment 98 to the Arkansas

Constitution. Amendment 98 authorizes the possession and prescribed use of marijuana for

medicinal purposes and establishes a framework for the cultivation, dispensing, and

prescription of medical marijuana within Arkansas.

Section 23 of amendment 98 provides that the General Assembly of Arkansas “may

amend the sections of this amendment” “in the same manner as required for amendment of

laws initiated by the people,” a reference to article 5, section 1 of the Arkansas Constitution.

Under article 5, section 1, the General Assembly may “amend or repeal” a measure approved

by the people only “upon a yea and nay vote on roll call of two-thirds of all members elected

to each house.” At the same time, amendment 98 imposes limits on that power, including

section 23(a)’s requirement that any legislative amendment be “germane to this section and

consistent with its policy and purposes.” Section 23(b) further prohibits the General

Assembly from amending specific portions of amendment 98, including section 23 itself.

Since 2016, the General Assembly has enacted twenty-eight amendments to

amendment 98 over the course of four legislative sessions, each approved by a two-thirds

2 vote of both houses.1 These legislative amendments were not referred to the people of

Arkansas for a vote.

Good Day Farm Arkansas, LLC (“GDFA”), a licensed medical marijuana cultivator,

and Capital City Medicinals, LLC (“CCM”), a licensed medical marijuana dispensary, are

subject to amendment 98 and its subsequent amendments. GDFA and CCM filed a

complaint against the State in the Pulaski County Circuit Court seeking declaratory

judgment. In Count I, they alleged that the General Assembly’s twenty-eight amendments

to amendment 98 were unconstitutional as they were not submitted to the people for

approval under article 19, section 22 of the Arkansas Constitution. GDFA and CCM argue

this process is required by this court’s 74-year-old precedent arising out of Arkansas Game

& Fish Commission v. Edgmon, 218 Ark. 207, 235 S.W.2d 554 (1951). In Count II, they

1 Act 4 of 2017 (amending Ark. Const. amend. 98, §§ 4, 8 & 9); Act 5 of 2017 (amending Ark. Const. amend. 98, §§ 2, 5 & 10); Act 438 of 2017 (amending Ark. Const. amend. 98, § 2); Act 479 of 2017 (amending Ark. Const. amend. 98, §§ 2 & 6); Act 544 of 2017 (amending Ark. Const. amend. 98, § 2); Act 545 of 2017 (amending Ark. Const. amend. 98, §§ 4, 8 & 9); Act 587 of 2017 (amending Ark. Const. amend. 98, § 8); Act 593 of 2017 (amending Ark. Const. amend. 98, §§ 2 & 3); Act 594 of 2017 (amending Ark. Const. amend. 98, §§ 8 & 9); Act 638 of 2017 (amending Ark. Const. amend. 98, § 19); Act 639 of 2017 (amending Ark. Const. amend. 98, §§ 4, 8 & 9); Act 640 of 2017 (amending Ark. Const. amend. 98, § 8); Act 641 of 2017 (amending Ark. Const. amend. 98, § 8); Act 642 of 2017 (amending Ark. Const. amend. 98, §§ 8 & 11–13 and adding §§ 24 & 25); Act 670 of 2017 (amending Ark. Const. amend. 98, § 17); Act 740 of 2017 (amending Ark. Const. amend. 98, §§ 4 & 6); Act 948 of 2017 (amending Ark. Const. amend. 98, §§ 5 & 8); Act 1022 of 2017 (amending Ark. Const. amend. 98, § 11); Act 1023 of 2017 (amending Ark. Const. amend. 98, §§ 4 & 8); Act 1024 of 2017 (amending Ark. Const. amend. 98, §§ 3 & 8); Act 1098 of 2017 (amending Ark. Const. amend. 98, § 17); Act 1099 of 2017 (amending Ark. Const. amend. 98, § 6); Act 1100 of 2017 (amending Ark. Const. amend. 98, § 8); Act 1 of 2017 (1st Extraordinary Sess.) (amending Ark. Const. amend. 98, §§ 2, 4, 6, 8 & 17); Act 8 of 2017 (1st Extraordinary Sess.) (amending Ark. Const. amend. 98, §§ 2, 4, 6, 8 & 17); Act 694 of 2019 (amending Ark. Const. amend. 98 by adding § 26); Act 1004 of 2019 (amending Ark. Const. amend. 98, § 8); Act 666 of 2021 (amending Ark. Const. amend. 98, §§ 4 & 8).

3 challenged Medical Marijuana Commission rules restricting advertising by cultivators and

dispensaries, arguing those rules violated the First Amendment. According to GDFA and

CCM, declaratory judgment was necessary to render the legislative amendments

unconstitutional, null, and void, which in turn would allow the original text of amendment

98, as initially adopted by the people of Arkansas in 2016, to remain in full effect without

the twenty-eight subsequent legislative amendments.

The State opposed the complaint, and the parties filed competing motions for

summary judgment. In the State’s cross-motion for summary judgment, it asserted that the

General Assembly acted within its constitutional authority under article 5, section 1, and

that it was entitled to dismissal of the complaint under sovereign immunity.2 GDFA and

CCM subsequently amended their complaint and incorporated into their motion for

summary judgment an additional claim: that the legislative amendments were

2 Below, the State asserted the defense of sovereign immunity to GDFA and CCM’s claims. Arkansas’s sovereign immunity originates in article 5, section 20 of the Arkansas Constitution, which provides that “[t]he State of Arkansas shall never be made defendant in any of her courts.” Ark. Const. art. 5, § 20. This doctrine bars a suit if a judgment for the plaintiff “will operate to control the action of the State or subject [the State] to liability.” Ark. Dep’t of Fin. & Admin. v. Carpenter Farms Med. Grp., LLC, 2020 Ark. 213, at 7, 601 S.W.3d 111, 117 (quoting Bd. of Trs. of Univ. of Ark. v. Andrews, 2018 Ark. 12, at 5, 535 S.W.3d 616, 619). But in Martin v. Haas, we reiterated that “our sovereign immunity [jurisprudence] allow[s state] actions that are illegal, unconstitutional, or ultra vires to be enjoined.” 2018 Ark. 283, at 7, 556 S.W.3d 509, 514 (cleaned up). Thus, allegations of illegal state action remain an exception to sovereign immunity. Carpenter Farms Med. Grp., LLC, 2020 Ark. 213, at 7–8, 601 S.W.3d at 117 (citing Monsanto Co. v. Ark. State Plant Bd., 2019 Ark. 194, at 9, 576 S.W.3d 8, 13; Ark.

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