Opening A Dispensary or Cultivation Facility in Arkansas
Want to open an Arkansas dispensary and or cultivation facility? Read this – ALL OF IT:
- Licensing of dispensaries and cultivation facilities.
(a)(1) Dispensaries and cultivation facilities shall be licensed by the Medical Marijuana
Commission.
(2) The commission shall administer and regulate the licensing of dispensaries and
cultivation facilities, including the issuance of a:
(i) License to operate a dispensary; and
(ii) License to operate a cultivation facility.
(3) The Alcoholic Beverage Control Division shall administer and enforce the provisions
of this amendment concerning dispensaries and cultivation facilities.
(b)(1) The commission and division shall each adopt rules necessary to:
(A) Carry out the purposes of this amendment; and
(8) Perform its duties under this amendment.
(2) Rules adopted under this section are rules as defined in the Arkansas Administrative
Procedure Act,§ 25-15-201 et seq.
(c) The following individuals associated with a dispensary or cultivation facility shall be current
residents of Arkansas who have resided in the state for the previous seven (7) consecutive years:
(1) The individual(s) submitting an application to license a dispensary or cultivation
facility; and,
(2) Sixty percent (60%) of the individuals owning an interest in a dispensary or cultivation
facility.
(d) Not later than one hundred twenty (120) days after the effective date of this amendment, the
commission shall adopt rules governing:
(1) The manner in which the commission considers applications for and renewals of
licenses for dispensaries and cultivation facilities;
(2) The form and content of registration and renewal applications for dispensaries and
cultivation facilities; and
(3) Any other matters necessary for the commission’s fair, impartial, stringent, and
comprehensive administration of its duties under this amendment.
(e) Not later than one hundred twenty (120) days after the effective date of this amendment, the
division shall adopt rules governing:
(1) Oversight requirements for dispensaries and cultivation facilities;
(2) Recordkeeping requirements for dispensaries and cultivation facilities;
(3) Security requirements for dispensaries and cultivation facilities;
(4) Personnel requirements for dispensaries and cultivation facilities;
(5) The manufacture, processing, packaging, and dispensing of usable marijuana to
qualifying patients and designated caregivers;
(6) Procedures for suspending or terminating the licenses of dispensaries and cultivation
facilities that violate the provisions of this amendment or the rules adopted under this amendment,
procedures for appealing penalties, and a schedule of penalties;
(7) Procedures for inspeq_tions and investigations of dispensaries and cultivation
facilities;
(8) Advertising restrictions for dispensaries and cultivation facilities;
(9) Procedures for the disposal or other use of marijuana not dispensed to a qualifying
patient; and
(10) Any other matters necessary for the division’s fair, impartial, stringent, and
comprehensive administration of its duties under this amendment.
(f)(1) Not later than one hundred twenty (120) days after the effective date of this amendment,
the commission shall adopt rules establishing license application and license renewal fees for dispensary
and cultivation facility licenses.
(2)(A) The initial dispensary application fee shall be a maximum of seven thousand five
hundred dollars ($7,500).
(B) The initial cultivation facility application fee shall be a maximum of fifteen
thousand dollars ($15,000).
(g)(1) Not later than June 1, 2017, the commission shall begin accepting applications for licenses
to operate a dispensary and cultivation facility.
(2) The application shall include without limitation the following:
(A) The application fee;
(B) The legal name of the dispensary or cultivation facility;
(C) The physical address of the:
(i) Dispensary, which location may not be within one thousand five
hundred feet (1,500′) of a public or private school, church, or daycare center existing before the date of
the dispensary application; or
(ii) Cultivation facility, which location may not be within three thousand
feet (3,000′) of a public or private school, church, or daycare center existing before the date of the
cultivation facility application;
(D) The name, address, and date of birth of each dispensary agent or cultivation
facility agent; and
(E) If the city, town, or county in which the dispensary or cultivation facility would
be located has enacted zoning restrictions, a sworn statement certifying that the dispensary or cultivation
facility will operate in compliance with the restrictions.
(2) None of the owners, board members, or officers of the dispensary or cultivation
facility:
(A) Shall have been convicted of an excluded felony offense;
(B) Shall have previously been an owner of a dispensary or cultivation facility
that has had its license revoked; and
(C) Shall be under twenty-one (21) years of age.
(h) The commission shall issue at least twenty (20) but no more than forty (40) dispensary
licenses.
(i) There shall be no more than four (4) dispensaries in any one (1) county.
- U) The commission shall issue at least four (4) but no more than eight (8) cultivation facility
licenses.
(k) The commission may conduct a criminal records check in order to carry out this section.
(1)(1) No individual shall own an interest in more than:
(1) One (1) cultivation facility; and,
(2) One (1) dispensary.
(m)(1) A dispensary licensed under this section may acquire, possess, manufacture, process,
prepare, deliver, transfer, transport, supply, and dispense marijuana, marijuana paraphernalia, and
related supplies and educational materials to a qualifying patient or designated caregiver.
(2) A dispensary may receive compensation for providing the goods and services
allowed by this section.
(3)(A) A dispensary may grow or possess:
(i) Fifty (50) mature marijuana plants at any one (1) time plus seedlings;
and
(ii) All usable marijuana derived from the plants under subdivision
(m)(3)(A)(i) of this section or predecessor plants.
(B) A dispensary may contract with a cultivation facility to cultivate one (1) or
more mature marijuana plants the dispensary is permitted to grow.
(4)(A)(i) A cultivation facility may cultivate and possess usable marijuana in an amount
reasonably necessary to meet the demand for and needs of qualifying patients as determined by the
commission with the assistance of the Department of Health.
(ii) However, a cultivation facility shall not sell marijuana in any form
except to a dispensary or other cultivation facility.
(B) A cultivation facility may also possess marijuana seeds.
(C) The commission with the assistance of the Department of Health shall
promulgate rules determining the amount of marijuana reasonably necessary under subdivision (m)(4)(A)
of this section.
(5) A cultivation facility may rec.eive compensation for providing the goods and services
allowed by this section.
(n)(1) A dispensary license and cultivation facility license shall expire one (1) year after the date
of issuance.
(2) The commission shall issue a renewal dispensary license or a renewal cultivation
facility license within ten (10) days to any entity who complies with therequirements contained in this
amendment, including without limitation the payment of a renewal fee.
(o) The commission may charge a reasonable fee as established by rule for the issuance of a
renewal license.
- 9. Registration and certification of cultivation facility agents and dispensary agents.
(a)(1) Cultivation facility agents and dispensary agents shall register with the Alcoholic Beverage
Control Division.
(2) The division shall administer and enforce the provisions of this amendment
concerning cultivation facility agents and dispensary agents, including without limitation the issuance of a:
(A) Registry identification card to a dispensary agent; and
(B) Registry identification card to a cultivation facility agent.
(b)(1) The division shall adopt rules necessary to:
(A) Carry out the purposes of this amendment; and
(B) Perform its duties under this amendment.
(2) Rules adopted under this section are rules as defined in the Arkansas Administrative
Procedure Act, § 25-15-201 et seq.
(c) Not later than one hundred twenty (120) days after the effective date of this amendment, the
division shall adopt rules governing:
(1} The manner in which the division considers applications for and renewals of registry
identification cards for dispensary agents and cultivation facility agents;
(2) The form and content of registration and renewal applications for dispensary agents
and cultivation facility agents;
(3) Procedures for suspending or terminating the registration of dispensary agents and
cultivation facility agents who violate the provisions of this amendment or the rules adopted under this
amendment, procedures for appealing penalties, and a schedule of penalties; and
(4) Any other matters necessary for the division’s fair, impartial, stringent, and
comprehensive administration of its duties under this amendment.
(d} The division may conduct criminal records checks in order to carry out this section.
(e} Except as provided herein, the division shall issue each dispensary agent and cultivation
facility agent a registry identification card within ten (1 O} days of receipt of:
(1} The person’s name, address, and date of birth under this amendment; and
(2) A reasonable fee in an amount established by rule of the division.
(f}(1} The division shall not issue a registry identification card to a dispensary agent or cultivation
facility agent who has been convicted of an excluded felony offense.
(2) The division may conduct a criminal background check of each dispensary agent or
cultivation facility agent in order to carry out this provision.
(3) The division shall notify the dispensary or cultivation facility in writing of the reason
for denying the registry identification card.
(g}(1} A registry identification card for a dispensary agent or cultivation facility agent shall expire
one (1) year after the date of issuance.
(2) A registry identification card of a dispensary agent or cultivation facility agent expires
upon notification to the division by a dispensary or cultivation facility that the person ceases to work at the
dispensary or cultivation facility.
(h) The division may charge a reasonable fee as established by rule for the issuance of a new,
renewal or replacement registry identification card.
(i)(1) The division may revoke the registry identification card of a dispensary agent or cultivation
facility agent who knowingly violates any provision of this amendment, and the cardholder is subject to
any other penalties established by law for the violation.
(2) The division may revoke or suspend the dispensary license or cultivation facility
license of a dispensary or cultivation facility that the division determines knowingly aided or facilitated a
violation of any provision of this amendment, and the licenseholder is subject to any other penalties
established in law for the violation.
- 1 O. Dispensary and cultivation faclllty Inspections and requirements.
(a) Dispensaries and cultivation facilities are highly regulated by the state, and a dispensary and
cultivation facility is therefore subject to reasonable inspection by the Alcoholic Beverage Control Division.
(b)(1) This subsection governs the operations of dispensaries and cultivation facilities.
(2) A dispensary and a cultivation facility shall be an entity incorporated in the State of
Arkansas.
(3) A dispensary and cultivation facility shall implement appropriate security measures to
deter and prevent unauthorized entrance into areas containing marijuana and the theft of marijuana.
(4) A dispensary and cultivation facility shall have procedures in place to ensure accurate
recordkeeping.
(5) Each dispensary shall keep the following records, dating back at least three (3)
years:
(A) Records of the disposal of marijuana that is not distributed by the dispensary
to qualifying patients; and
(B) A record of each transaction, including the amount of marijuana dispensed,
the amount of compensation, and the registry identification number of the qualifying patient or designated
caregiver.
(6) Each dispensary and cultivation facility shall:
(A) Conduct an initial comprehensive inventory of all marijuana, including
without limitation usable marijuana available for dispensing, mature marijuana plants, and seedlings at
each authorized location on the date the dispensary first dispenses usable marijuana or the cultivation
facility first cultivates, prepares, manufactures, processes, or packages usable marijuana; and
(B) Conduct a biannual comprehensive inventory of all marijuana, including
without limitation usable marijuana available for dispensing, mature marijuana plants, and seedlings at
each authorized location.
(7) All cultivation of marijuana shall take place in an enclosed, locked facility.
(8)(A) A qualifying patient or designated caregiver acting on behalf of a qualifying patient
shall not be dispensed more than a total of two and one-half ounces (2 Y2 oz.) of usable marijuana during
a fourteen-day period.
(B) A dispensary or a dispensary agent may not dispense more than a total of two and
one-half ounces (2 Y2 oz.) of usable marijuana to either a qualifying patient or designated caregiver acting
on behalf of a qualifying patient during a fourteen-day period.
(C) Each time a dispensary agent dispenses usable marijuana to a qualifying patient or
designated caregiver, he or she shall verify that the dispensing of usable marijuana would not cause the
qualifying patient or designated caregiver to receive more usable marijuana than is permitted in a
fourteen-day period.
(D) Each time usable marijuana is dispensed, the dispensary agent shall:
(i) Record the date the usable marijuana was dispensed and the amount
dispensed; and
(ii) Notify the Department of Health in the manner required by the department.
(E) The department shall maintain a database that enables a dispensary to verify that
dispensing usable marijuana to a qualifying patient or designated caregiver will not cause the qualifying
patient or designated caregiver to exceed the amount allowed by law.
(F) All records shall be kept according to the registry identification number of the
qualifying patient or designated caregiver.
(G) It is the specific intent of this Amendment that no qualifying patient or designated
caregiver acting on behalf of a qualifying patient be dispensed more than a total of two and one-half
ounces (2 Y2 oz.) of usable marijuana during a fourteen-day period whether the usable marijuana is
dispensed from one or any combination of dispensaries.
(9) The dispensary records with patient information shall be treated as confidential
medical records.
- 11. Immunity for dispensaries and cultivation facilities.
(a) A dispensary or cultivation facility is not subject to the following:
(1) Prosecution for the acquisition, possession, cultivation, processing, preparation,
manufacture, delivery, transfer, transport, sale, supply, or dispensing of marijuana and related supplies in
accordance with the provisions of this amendment and any rule adopted under this amendment;
(2) Inspection, except under § 1 O of this amendment or upon a search warrant issued by
a court or judicial officer;
(3) Seizure of marijuana, except upon any order issued by a court or judicial officer and
with due process of law; or
(4) Imposition of a penalty or denial of a right or privilege, including without limitation
imposition of a civil penalty or disciplinary action by a business, occupational, or professional licensing
board or entity, solely for acting in accordance with this amendment.
(b)(1) A dispensary agent or cultivation facility agent shall not be subject to arrest, prosecution,
search, seizure, or penalty in any manner or denied any right or privilege, including without limitation civil
penalty or disciplinary action by a business, occupational, or professional licensing board or entity, solely
for working for or with a dispensary or cultivation facility to engage in acts permitted by this amendment.
(2)(A) A dispensary agent or cultivation facility agent may possess and manufacture
marijuana at the dispensary or cultivation facility location or locations for which the dispensary agent or
cultivation facility agent is registered or when transferring marijuana under this section.
(B)(i) A dispensary agent who is a volunteer may possess and manufacture
marijuana at a dispensary location.
(ii) A dispensary agent who is a volunteer may not dispense or transport
marijuana.
(3) A cultivation facility shall label the marijuana that is moved between the cultivation
facility and a dispensary or other cultivation facility with a trip ticket that identifies the cultivation facility by
identification number, the time, date, origin, and destination of the marijuana being transported, and the
amount and form of marijuana that is being transported.
- 12. Prohibitions for dispensaries.
(a) Except as provided in§ 3 of this amendment, a dispensary may not dispense, deliver, or
otherwise transfer marijuana to a person other than a qualifying patient or designated caregiver.
(b)(1) Except as provided in § 3 of this amendment, the Alcoholic Beverage Control Division shall
immediately revoke the registry identification card of a dispensary agent who has dispensed, delivered, or
otherwise transferred marijuana to a person other than a qualifying patient or designated caregiver, and
that dispensary agent shall be disqualified from serving as a dispensary agent.
(2) A dispensary employing a dispensary agent found to violate subdivision (b)(1) of this
section is not subject to penalties, including without limitation the revocation of its license, for the actions
of a dispensary agent unless the dispensary knowingly aided or facilitated the violation.
- 13. Prohibitions for cultivation facilities.
A cultivation facility may sell marijuana plants, seeds, and usable marijuana only to a dispensary
or other cultivation facility.
- 14. Local regulation.
(a) This amendment does not prohibit a city, incorporated town, or county of this state from
enacting reasonable zoning regulations applicable to dispensaries or cultivation facilities, provided that
those zoning regulations are the same as those for a licensed retail pharmacy.
(b) This section does not allow a city, incorporated town, or county to prohibit the operation of
any dispensaries or cultivation facilities in the city, incorporated town, or county unless such a prohibition
is approved at an election under Article 5, § 1, of this constitution.
