The Mississippi Supreme Court recently issued a ruling regarding the application of the Mississippi Medical Cannabis Act in the case of Mississippi Alcoholic Beverage Control and Mississippi Department of Revenue v. Green Cross of MS, LLC and Karen Crumpler (Docket No. 2024-SA-01021-SCT). The court's decision affects the operation of medical cannabis dispensaries in the state, particularly concerning their proximity to churches and the refundability of application fees.

In this case, the Alcoholic Beverage Control (ABC) denied Green Cross's application for a medical cannabis dispensary license due to its location being less than one thousand feet from a church. While the Mississippi Department of Revenue refunded the annual license fee of $25,000, it did not refund the $15,000 application fee. The circuit court upheld the denial of the license but ordered ABC to refund the application fee. ABC subsequently appealed this decision, leading to the Supreme Court's review.

Background

The parties involved in this case are the Mississippi Alcoholic Beverage Control and the Mississippi Department of Revenue, who are the appellants, and Green Cross of MS, LLC, along with Karen Crumpler, the appellees. The dispute centers around Green Cross's application for a medical cannabis dispensary license, which was submitted on July 30, 2022, for a location at 311 Heritage Drive in Oxford, Mississippi.

Under the Mississippi Medical Cannabis Act, dispensaries must not be located within one thousand feet of schools, churches, or childcare facilities unless they receive a waiver. Green Cross believed it complied with these requirements after conducting a survey that indicated no churches were within the prohibited distance. However, ABC later discovered that Wellspring Church had begun operations at a nearby location shortly before Green Cross's application was submitted, leading to the denial of the application.

The Ruling

The Mississippi Supreme Court ruled on October 29, 2026, affirming the circuit court's decision to uphold ABC's denial of the medical cannabis dispensary license but reversing the order to refund the $15,000 application fee. The court stated, "Based on the plain language of the Act, we affirm the circuit court’s decision to uphold ABC’s denial of the medical-cannabis-dispensary license. But we reverse the circuit court’s decision ordering ABC to refund the $15,000 application fee." The ruling was delivered by Justice Branning, with Justices Coleman, Griffis, Wilson, and Tollison concurring.

The court's decision emphasized the importance of adhering to the specific provisions of the Mississippi Medical Cannabis Act, particularly regarding the distance requirements for dispensaries. The court found that Green Cross's application was rightly denied based on its proximity to Wellspring Church, which had established itself within the required distance prior to the application.

Impact

This ruling has significant implications for the operation of medical cannabis dispensaries in Mississippi. It clarifies the interpretation of the proximity requirements set forth in the Mississippi Medical Cannabis Act, reinforcing the need for dispensaries to carefully assess their locations in relation to nearby churches and other restricted entities.

Additionally, the court's decision regarding the non-refundability of the application fee underscores the strict application of the Act's provisions. The ruling indicates that applicants should be aware that fees are generally non-refundable unless specific conditions are met, which could deter frivolous applications but may also impact legitimate applicants who rely on public information during their due diligence.

What's Next

Following this ruling, Green Cross and its representatives may consider their options for further legal action, including the possibility of seeking a rehearing or exploring other avenues for appeal. However, the court's decision sets a precedent regarding the interpretation of the Mississippi Medical Cannabis Act and the associated fees, which will likely influence future applications and regulatory practices in the state.