Sarah Climaco

Arkansas MMJ Commission Releases Cultivation and Dispensary Rules

Arkansas’ Medical Marijuana Commission has released its final draft rules for awarding dispensary and cultivation licenses in the state, according to a Baxter Bulletin report. Under the regime, five cultivation licenses and 32 dispensary licenses will be granted throughout Arkansas.

The cultivation licensees, which do not have any geographic restrictions, will be approved based on their application merits, which carry a $15,000 application fee – half of which will be refunded if the applicant is not selected. Those selected will pay a $100,000 annual licensing fee.

Dispensaries will be divided evenly across eight geographic regions and will be determined based on a combination merit/lottery system. Under that system, applicants will draw numbers which will determine the order in which commissioners will consider application presentations. Applicants will pay a $7,500 application fee, half of which will be refunded if the applicant is rejected. Dispensary owners will also have an option to grow up to 50 mature cannabis plants – but would have to pay a $25,000 yearly licensing fee opposed to the $2,500 annual fee for dispensaries that do not have grows.

Cultivation applicants would have to show assets of $1 million or a surety bond for that amount, and $500,000 in liquid assets with an initial $500,000 performance bond. Dispensary applicants must show assets or a surety bond of $200,000, and $100,000 in liquid assets with an initial $100,000 performance bond.

The state Health Department, Alcoholic Beverage Control, and Department of Finance and Administration are still developing their own program rules.

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