license to grow medical weed in arkansas

The Commission may not issue more than 40 licenses for dispensaries in Arkansas. These licenses are to be distributed among eight geographic zones, to ensure that they are available throughout the state. No more than four dispensaries are allowed in any one county, and a license issued in one zone may not be used in another. No individual may have interest in more than one dispensary. The Commission will notify the public when a license is available. Fees include:

The Arkansas Alcoholic Beverage Control Division sets the rules and regulations of the facilities. The Division governs requirements such as record keeping, manufacturing, processing, packaging, marketing, inspections, and violations of the rules.

The premium you pay for an Arkansas Cultivator or Dispensary Surety Bond depends on the bond amount, plus your personal and business financials. Contact our Surety Bond Specialists for a free quote based on your specific situation.

When it comes to growing, selling, and using medical marijuana/cannabis, each state in the U.S. has its own laws on what is or isn’t legal, how it is prescribed, and how it is sold.

The Commission may not issue more than eight licenses for cultivation facilities. When a new license is available, the Commission will notify the public by legal notice that it is accepting applications. Fees include:

What Will This Bond Cost?

In Arkansas, the Arkansas Medical Marijuana Commission administers and regulates licenses to operate a dispensary or a cultivation facility. The application process includes paying fees and obtaining a surety bond.

Licenses will not be granted to anyone who has been convicted of an excluded felony offense.

Cultivation Facility License and Surety Bond:

Dispensary Facility License and Surety Bond:

The privilege tax is paid by patients when they buy from a dispensary and for dispensaries buying from growers. However, dispensaries are exempt from paying the 6.5% state sales tax when buying cannabis from growers.

An economic study done by the Arkansas Cannabis Industry Association found River Valley Relief Cultivation, which will be located on Old Greenwood Road, could bring in $80 million to the local economy over the next four years and 80-100 jobs.

Kristy Floyd, director of operations for River Valley Relief Cultivation, said the increase in supply alone won’t solve the affordability problem. She explained one of the challenges to affordability is insurance companies won’t cover medical marijuana because it is illegal at the federal level.

Despite legalization by the state, there are concerns that medical marijuana isn’t accessible because of its cost.

Since 2019, the state has collected $47 million — with $23 million of that coming in the past nine months — in sales tax from the 60,000 pounds of product sold. Each month, the state raises about $3 million in tax revenue from cannabis sales.

Taxation of cannabis.

Medical marijuana cards by county in the River Valley:

Amendment 8 limits the number of dispensaries in the state to 40. The state has given 38 licenses to allow dispensaries to sell medical marijuana. The state is divided into eight zones and each zone can have up to five dispensaries.

Fort Smith was approved to grow cannabis in 2020 along with Grady and Hot Springs. They join Pine Bluff, Cotton Plant, Newport, Berryville and White Hall, which were approved in 2018.

According to Weedmaps, the average cost of a gram of weed is $15 in Arkansas. In Missouri, it costs about $10-$20 a gram. Missouri was the only state bordering Arkansas where a price index was available for cannabis. The average price in Colorado is $12 and $10 in Washington. Colorado and Washington were two of the earliest states to legalize both medicinal and recreational marijuana.

Hardin said data on how much sales tax is generated by region is unavailable. The Tax Procedure Act keeps the amount of sales tax generated by companies confidential, which makes regional data unavailable. The state can only provide overall sales tax revenue collected by the state from cannabis.

Revenue from the privilege tax goes to the National Cancer Institute at the University of Arkansas for Medical Sciences in Little Rock and the Medical Marijuana Commission.

Scott Hardin, director of communications for the Arkansas Department of Finance and Administration, said Amendment 8, which was passed by voters in 2016 to legalize medical marijuana, limits the number of growers in the state to eight. The state has reached its limit of eight growers.

River Valley Relief Cultivation, which opens on Oct. 1, will use 25,000-square-feet of indoor growing space for cannabis. Each of the seven cultivation rooms will have 2,000 plants.

In addition to the 6.5% sales tax, Arkansans pay a privilege tax of 4%, which was created by the Legislature, on cannabis purchases.

In Arkansas, 79,019 residents have medical marijuana cards and the River Valley has a total of 8,514 medical marijuana cards.

Fort Cannabis Co. has sold 2,554.48 pounds of cannabis since it opened on Dec. 18, 2019. In August, the dispensary sold 116.32 pounds. Zone 4, which represents the River Valley, nearly 4,300 pounds of medical marijuana have been sold.

As a way to increase affordability, River Valley Relief Cultivation will have the Compassionate Care Program to help patients who are unable to afford medical marijuana. Floyd said the details of the program are still being worked out.

Floyd said 90% of the water the facility will use to grow the plants will be created from turning humidity in the facility into water, which is a system hospitals use. Floyd said this limits the amount of water from the city the facility uses.

Arkansas is one of 36 states that have legalized medical marijuana.

The River Valley falls into Zone 4, which has reached its limit of five dispensaries — Fort Cannabis Co. (Fort Smith), Enlightened Cannabis for People Clarksville (Clarksville), 420 Dispensary (Russellville), Enlightened Cannabis for People Morrilton (Morrilton) and 3J Investments, which is moving out of Lamar. 3J has filed to open in Van Buren, which needs approval from Van Buren’s city council and the Medical Marijuana Commission.

On Oct. 1, the opening of River Valley Relief Cultivation on Old Greenwood Road will give the River Valley its first medical marijuana growing facility.

Dispensaries in the state.

On its website, the company said it will also help educate patients on opioids and research the impact medical marijuana has on stopping the opioid epidemic.

According to Statista, the United State will generate about $23 billion in taxes from legal cannabis sales by 2025.

The facility will include a C1D1 shelter, which is a room used to handle flammable liquids and gases, to perform the extraction process on the plants.

Patients who possess a physician’s recommendation may legally possess and obtain medical cannabis provided by state licensed dispensaries. Patients under the age of 21 are not permitted to consume herbal forms of cannabis. Inhaling herbal cannabis is not permitted by adults in the presence of a pregnant woman or a child age 14 or under. Dispensaries may not provide cannabis-infused food or drink products with more than 10mg of THC. They may not provide cannabis-infused edible products that are “modeled after non-cannabis products primarily consumed by and marketed to children.”

Under the law, regulators will license up to 32 dispensary providers and up to five marijuana cultivators.