Key Facts

Medical Cannabis Licence Types (AMMC)

• Cultivation Facility Licence — commercial indoor or outdoor cannabis cultivation for the medical programme
  • Limited to 8 licensed cultivators statewide — controlled market
  • Must demonstrate financial responsibility; minimum $500,000 in assets or bonds
  • Canopy limits and operational standards set by AMMC rule
  • Background checks mandatory for all officers, directors, and principal stakeholders
  • Must be an Arkansas-based entity; residency requirements apply to principals
• Dispensary Licence (Retail — Medical Only) — licensed outlets for sale of medical cannabis to registered patients
  • Up to 40 dispensary licences issued statewide — geographically distributed by AMMC
  • Each dispensary limited to one physical location
  • Must be located at least 1,500 ft from schools, daycares, and alcohol treatment facilities
  • Dispensaries may not cultivate — separate supply chain required
• No Processor / Manufacturer Licence as Standalone — processors are vertically integrated with cultivation facilities under AMMC rules
  • Cultivators may process their own product (extraction, edibles, concentrates) on-site
  • Edibles, tinctures, topicals, vape cartridges and other infused products produced by cultivators
• No Delivery Licence — home delivery of medical cannabis to patients is not currently authorised in Arkansas
  • Patients must visit a licensed dispensary in person
  • Caregivers may purchase on behalf of patients
• Testing Laboratory — AMMC-approved, independent, ISO/IEC 17025 accredited laboratories
  • No financial relationship with cultivators or dispensaries permitted
  • All batches must be tested and approved before dispensary sale
• Hemp Grower / Processor Licence — issued by Arkansas Department of Agriculture under the Industrial Hemp Act
  • Hemp defined as cannabis with ≤0.3% THC on a dry-weight basis
  • Separate from medical cannabis system — no co-mingling of programmes

Tax Structure Details

• Arkansas imposes a 4% special medical cannabis tax in addition to the standard 6.5% state sales tax — effective state-level rate of approximately 10.5% on medical cannabis purchases
• Local county and city sales taxes add further — can range from 1% to 6.5% locally, making total effective rates as high as 13–17% in some areas
• Medical cannabis is NOT exempt from state or local sales taxes in Arkansas (unlike some states)
• Revenue from the 4% special tax distributed to: state general fund, university and vocational programmes, and local governments
• Cannabis businesses subject to IRS § 280E — may not deduct ordinary business expenses at federal level; significant federal tax burden
• Hemp/CBD products sold in retail pay standard Arkansas sales tax rates

AMMC Advertising Regulations

• Minors — strict prohibition: No advertising content that appeals to or targets persons under age 21
  • No cartoon characters, toy imagery, candy-themed branding, or child-oriented visuals
  • No advertising on television, radio, or digital platforms where persons under 21 comprise more than 30% of the audience
  • No advertising within 1,000 ft of schools, daycare facilities, recreational centres, or youth-oriented establishments
• Required disclaimers on ALL advertising materials:
  • 'For use only by qualified Arkansas medical marijuana patients aged 21 and older.'
  • AMMC dispensary or cultivator licence number must appear on all materials
  • 'Keep out of reach of children and pets.'
  • Health warning: 'Use of medical marijuana may impair your ability to drive or operate machinery.'
• Social media & digital advertising:
  • Age-gating required — platform must restrict content to verified 21+ users
  • No sponsored posts or paid promotions visible to general public
  • No influencer marketing campaigns that reach demographics with significant under-21 audiences
  • Public-facing (non-age-gated) social media profiles must not display cannabis product imagery
• Prohibited content: False or misleading health claims; testimonials from healthcare providers implying medical endorsement; depictions of cannabis consumption; free product offers; promotional pricing below cost
• Print & billboard: Allowed only on platforms/locations demonstrably reaching adult audiences; no billboard placement within 1,000 ft of schools or playgrounds

Employee Rights & Employer Obligations

• No state employment protections for medical cannabis patients — Amendment 98 explicitly preserves employer rights:
  • Employers may maintain and enforce drug-free workplace policies regardless of medical marijuana patient status
  • An employer is NOT required to accommodate medical marijuana use by any employee — on or off duty
  • Arkansas courts have upheld termination of employees who tested positive for cannabis, including registered medical patients
• Drug-Free Workplace Act (Arkansas Code Ann. § 11-14-101 et seq.):
  • Employers with Drug-Free Workplace certification receive workers' compensation premium discounts (up to 5%)
  • Must implement written policy, employee notice, and testing programme
  • Pre-employment, random, reasonable-suspicion, post-accident, and return-to-duty testing all permitted
• Safety-sensitive positions: Transportation (CDL drivers), healthcare workers, heavy equipment operators — zero-tolerance policies enforceable and strongly recommended
• Federal contractors and grant recipients: Must comply with Federal Drug-Free Workplace Act (41 U.S.C. § 8101 et seq.) — cannabis prohibited regardless of state medical status
• Workers' compensation: A positive cannabis test at time of workplace injury creates a rebuttable presumption of impairment under Arkansas law — may significantly affect claim outcomes
• No pending legislation to add employment protections for cannabis patients as of March 2026

Medical Patient Possession

• Registered Arkansas medical marijuana patients may purchase and possess up to 2.5 oz (70.9 g) of usable cannabis per 14-day period
• Patients must carry their Arkansas Medical Marijuana Registry Card at all times when in possession of cannabis
  • Card must be current and not expired
  • Must also carry government-issued photo ID for verification at dispensary
• Cannabis products must be in original dispensary packaging with intact labels and seals when transported
• Home cultivation is not permitted for registered patients or caregivers under Arkansas law
• Caregivers may purchase on behalf of registered patients — caregiver must be registered with Arkansas Medical Marijuana Commission

Adult-Use Possession — Criminal Offence

• Any possession of marijuana without a valid medical marijuana card is a criminal offence in Arkansas
• 4 oz or less (first offence, no prior drug conviction): Class A Misdemeanour — up to 1 year imprisonment, $2,500 fine
• 4 oz or less (subsequent offence or prior drug conviction): Class D Felony — 0–6 years
• More than 4 oz – less than 25 lbs: Class D Felony
• 25 lbs or more: Class C Felony — trafficking enhancement; 3–10 years mandatory
• Possession with intent to deliver: Enhanced felony charges based on quantity

Transaction Rules

• Age requirement: Must be 21 years of age or older to purchase medical cannabis in Arkansas
• Identification: Valid Arkansas Medical Marijuana Registry Card + government-issued photo ID required at all dispensary visits
• In-person purchase only — no home delivery, no drive-through dispensing
• Caregiver purchases: Registered caregivers must present their own AMMC caregiver card + photo ID; may purchase on behalf of up to 5 patients
• Purchase tracking: All transactions recorded in AMMC seed-to-sale system; 14-day limits automatically enforced
• Payment: Cash and debit cards widely accepted; credit card processing limited due to federal banking restrictions on cannabis

AMMC Testing Standards

• Mandatory potency testing on all cannabis products before dispensary sale:
  • Total THC, THCA, CBD, CBDA, and other major cannabinoids (CBG, CBN, THCV)
  • Label must state total THC per serving and per package
  • Tolerance: ±15% of stated cannabinoid content on label
• Contaminant testing — all products must pass:
  • Pesticide residue: full panel per AMMC-approved list (>100 compounds)
  • Heavy metals: lead (Pb), cadmium (Cd), arsenic (As), mercury (Hg) — below action limits
  • Microbials: Salmonella, E. coli (STEC), Aspergillus species, Pseudomonas aeruginosa
  • Mycotoxins: aflatoxins (B1, B2, G1, G2), ochratoxin A
  • Residual solvents: for all extract/concentrate products — below USP standards
  • Moisture content: maximum 15% for flower; water activity tested for edibles
• Approved testing laboratories requirements:
  • Must hold AMMC testing laboratory licence
  • ISO/IEC 17025 accreditation required — verified by third-party accreditation body
  • No financial relationship, ownership interest, or investment in cultivators or dispensaries
  • Random proficiency testing conducted by AMMC
• Certificate of Analysis (COA): Required for every batch; must accompany product to dispensary; available to patients on request
• Seed-to-sale tracking: Arkansas uses BioTrack THC — all test results linked to plant/batch records; full chain of custody maintained
• Failed batches: Quarantined immediately; cannot be sold; must be destroyed or remediated per AMMC-approved remediation procedures

Qualifying Conditions — Amendment 98 / Ark. Code Ann. § 20-56-201

• Cancer — including treatment-related symptoms (nausea, pain, cachexia)
• Glaucoma
• Positive status for Human Immunodeficiency Virus (HIV) / Acquired Immune Deficiency Syndrome (AIDS)
• Hepatitis C
• Amyotrophic Lateral Sclerosis (ALS)
• Tourette's Syndrome
• Crohn's Disease
• Ulcerative Colitis
• Post-Traumatic Stress Disorder (PTSD)
• Severe Arthritis
• Fibromyalgia
• Alzheimer's Disease
• Cachexia or Wasting Syndrome
• Peripheral Neuropathy
• Intractable Pain — defined as pain that has not responded to ordinary medications and procedures for more than 6 months
• Severe Nausea
• Seizures (including those characteristic of Epilepsy)
• Severe and Persistent Muscle Spasms (including those characteristic of Multiple Sclerosis)
• Other conditions as approved by the Arkansas Medical Marijuana Commission upon physician petition

Programme Rules & Renewal Requirements

• Physician certification: Must be issued by an Arkansas-licensed physician (MD or DO) with a valid DEA registration who has established a bona fide physician-patient relationship
• Patient registry card issued by Arkansas Department of Health — annual renewal required
• Application fee: $50 for new patient; $25 for annual renewal
• Certification validity: 1 year from date of issue; must be renewed annually with physician follow-up appointment
• Minimum age: 18 years for adults; minors under 18 require certification from two physicians (including a specialist) and a designated caregiver (parent or legal guardian)
• Caregiver registration: Caregivers must register with AMMC; may serve up to 5 patients; annual renewal required
• Out-of-state patients: Arkansas does not recognise medical cannabis cards issued by other states
• Home cultivation: Not permitted under Arkansas law for patients, caregivers, or anyone else
• Physician telehealth: Permitted for renewals in most circumstances; initial certification typically requires in-person examination

Comparison: Adult-Use vs Medical

• Legal status: Medical cannabis is a regulated programme for qualifying patients; adult-use possession is a criminal offence
• Age: Medical requires 21+ (18+ with special conditions); adult-use has no legal pathway at any age
• Tax: Medical purchases subject to ~10.5% state-level tax; adult-use sales are illegal and generate no regulated tax revenue
• Product forms: Medical patients access AMMC-approved products from licensed dispensaries; no adult-use retail exists
• Possession: Medical — 2.5 oz per 14 days; Adult-use — any possession is a criminal offence
• Cultivation: Home cultivation not permitted for anyone — medical or otherwise

Local Ordinances

• No Arkansas municipality has enacted cannabis decriminalisation or adult-use ordinances
• Some counties and municipalities voted on whether to allow dispensaries in their jurisdiction (dry/wet-style local option)
  • Certain counties opted to exclude medical dispensaries through local vote
  • Local zoning rules govern minimum distance requirements for dispensaries
• Fayetteville, Little Rock, Fort Smith: Dispensaries allowed under AMMC geographic allocation; standard state law enforcement applies
• Legislative outlook: Given the 2022 ballot defeat, adult-use legalisation through the ballot or legislature appears unlikely in the near term