ARKANSAS CANNABIS PROGRAM

The Arkansas Marijuana Legislation Initiative is on the ballot in Arkansas as an initiated constitutional amendment on November 8, 2022.

The measure would legalize marijuana use for individuals 21 years of age and older and authorize the commercial sale of marijuana with sales to be taxed at 10%. Under the amendment, businesses that already hold licenses under the state’s medical marijuana program would be authorized to sell marijuana.

An additional 40 licenses would be given to business owners chosen by a lottery.

Types of Adult-Use Marijuana Businesses:

Tier One Adult Use Cultivation Facility: A commercial establishment licensed under this amendment to cultivate, prepare, manufacture, process, package, sell to and deliver cannabis to another commercial establishment for retail sale by any licensed adult-use dispensary.

Tier Two Adult Use Cultivation Facility: A commercial establishment licensed under this amendment to cultivate, prepare, manufacture, package, sell to and deliver cannabis to adult-use dispensaries for retail sale, which may grow no more than 250 mature cannabis plants at any one time.

Adult Use Dispensary: A commercial establishment licensed under this amendment to purchase, package, sell and deliver cannabis for adult use.

Effective January 1, 2023, the General Assembly shall appropriate sufficient funds from the licensing fees paid by commercial facilities and the revenue from sales taxes for the personnel and operating expenses necessary for the cannabis regulatory responsibilities of ABC, the Department of Health, and the Medical Marijuana Commission or their successor agencies. On or before March 7, 2023, the Arkansas Beverage Control Board shall enact rules. On or before March 7, 2023, ABC shall issue a Tier One adult use cultivation facility license to each entity or individual holding a cultivation facility license under Amendment 98 (Medical MJ laws) on November 8, 2022.

Under the amendment, businesses that already hold licenses under the state’s medical marijuana program would be authorized to sell Arkansas recreational cannabis. An additional 40 dispensary licenses would be given to businesses chosen by a lottery Beginning on March 8, 2023, all types of usable cannabis, including the inventory of usable cannabis which was produced pursuant to Amendment 98, shall be authorized for immediate wholesale and retail sale for adult use by commercial establishments licensed under this amendment. On or before July 5, 2023, ABC shall issue 40 additional adult-use dispensary licenses which shall be chosen by lottery.

Arkansas Medical Marijuana Dispensary: An entity licensed by the Medical Marijuana Commission to acquire, manufacture, process, transport, supply and dispense medical marijuana to qualifying patients and caregivers. The commission will issue no more than 40 dispensary licenses within the 8 identified geographic zones throughout the state. Only 4 dispensaries can operate per county and a dispensary location may not be less than 1,500 ft from a school, church or daycare center. No more than 1 dispensary licenses shall be issued to any entity.

The application fee for a dispensary license is set at $7,500, and applicants must provide proof of assets or a surety bond in the amount of $200,000 and proof of at least $100,000 in liquid assets.

Dispensary License Applications in Arkansas are currently closed. When new licenses are available the Medical Marijuana Commission will notify the public by legal notice.

Arkansas Medical Marijuana Cultivator: An entity licensed by the Medical Marijuana Commission to cultivate, prepare manufacture, process, package, sell and deliver medical marijuana to Arkansas licensed dispensaries. The commission will issue no more than 8 cultivation facility licenses in each public health district. A cultivation facility shall not be less than 3,000 ft from a school, church, or daycare center. No more than 1 cultivation license shall be issued to any entity.

The application fee for a cultivation license is $15,000, and applicants must provide proof of assets or a surety bond of $1,000,000 and proof of at least $500,000 in liquid assets.

Cultivation License Applications are currently closed. When new licenses are available the Medical Marijuana Commission will notify the public by legal notice.

Arkansas Medical Marijuana Processor: An entity licensed by the Medical Marijuana Commission to acquire, possess, prepare, manufacture, process, transport, and supply medical marijuana to an Arkansas licensed dispensary or cultivation facility. The commission does not have any limitation placed on the number of licenses being issued for processors.

The application fee is $5,000 and applicants must submit a performance bond of $100,000. Processor applications are currently being accepted on a rolling basis. Application forms are available on the Arkansas Medical Marijuana Commission Website.

Arkansas Medical Marijuana Transporter: An entity licensed by the Medical Marijuana Commission to acquire, possess, deliver, transport, or distribute medical marijuana to an Arkansas licensed dispensary, cultivation facility, or processor. The commission does not have any limitation placed on the number of licenses being issued for Transporters.

The application fee is $5,000 and applicants must submit a performance bond of $100,000. Transporter applications are currently being accepted on a rolling basis. Application forms are available on the Arkansas Medical Marijuana Commission Website.