Why did the AG reject the July 2014 version of the Arkansas Medical Cannabis Act before later certifying a refined version in Opinion 2014-086?

Plain-English summary

Melissa Fults of Arkansans for Compassionate Care 2016 submitted the Arkansas Medical Cannabis Act for AG certification under A.C.A. § 7-9-107. The same campaign's prior submissions had been rejected eight times (2013-099, 2013-079, 2013-046, 2013-033, 2013-015, 2011-038, 2011-023) and certified twice (2013-118, 2011-049). AG Dustin McDaniel rejected this version for ambiguities and instructed Fults to redesign and resubmit. Less than a month later (August 14, 2014), a refined version did clear AG review in Opinion 2014-086.

The AG identified eight specific defects in the text:

1. Section 102(a) ended with "by any means herein [no ending punctuation]," a phrase with no clear meaning.
2. Section 102(b) ended with "incapable of germination authorized [no ending punctuation]," a phrase with no clear meaning.
3. Section 102(m) listed "General Anxiety Disorder, Glaucoma" with a comma rather than the semicolon used elsewhere; this could mean two qualifying conditions or one nonexistent combined condition.
4. Section 102(q) defined "Usable Cannabis" as "all Cannabis and any mixture or preparation," but "Cannabis" in 102(b) already included mixtures and preparations, so 102(q)'s extra phrase had no clear referent.
5. Section 103(m) was not a coherent sentence and had no ending punctuation.
6. Section 109(b)(4) referenced "an established resident" without explaining what residence period or other elements that meant.
7. Section 109(e) required that "all" Usable Cannabis be tested, but testing destroys the cannabis tested, so if all cannabis must be tested, none can remain for distribution.
8. Section 111's subsections were not appropriately designated.

The AG also flagged a procedural defect: the submission contained underlined, struck-through, and colored text apparently from a blacklined draft showing changes from a prior version. If the text features (underlining, strikethrough, color) were not intended to be enacted into law, they had to be removed before resubmission. Worse, the blacklining did not accurately reflect changes from the actual prior submission, making it actively misleading.

Under Roberts v. Priest, 341 Ark. 813 (2000), where the underlying text contributes to confusion or contains internal inconsistencies, the AG cannot draft a clean popular name and ballot title around it. Rejection was required. The AG could not even substitute a more suitable title under § 7-9-107(b) because the source text itself was unclear.

The opinion is significant in the campaign timeline. After this rejection, Fults resubmitted within weeks, fixing the textual defects. The result was Opinion 2014-086, certifying the popular name and a substituted ballot title and clearing the measure to circulate for signatures.

Currency note

This opinion was issued in 2014. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Why does punctuation matter for a ballot title decision?
Because the AG must summarize the proposed law's effect for voters. A statute that says "...by any means herein [no punctuation]" is incomplete on its face. The AG cannot tell whether the missing words modify what comes before or what comes after, and so cannot accurately describe what the section does.

What was the "test all" Section 109(e) problem?
The text required that "all" Usable Cannabis be tested by a cannabis testing lab before distribution. But testing destroys the sample. The AG read the literal text and concluded that no cannabis would survive testing for actual patient distribution. The drafters presumably meant "samples of each batch must be tested" or similar, but the literal text said something else.

Did the AG decide the policy was bad?
No. The opinion repeats the standard disclaimer: certification or rejection does not reflect the AG's view of the proposal's merits. The AG rejected the title because the text was too unclear to summarize, not because medical cannabis is good or bad policy.

Was this part of a series of rejections?
Yes. The campaign had cycled through earlier versions in 2011 and 2013, drawing seven prior rejections (2011-023, 2011-038, 2013-015, 2013-033, 2013-046, 2013-079, 2013-099). Two earlier versions had been certified (2011-049, 2013-118). The August 2014 version (2014-086) finally cleared.

Why is the blacklining problem its own issue?
Because the AG receives the text as the official submission and presumes anything appearing in it is intended to be enacted. Submissions with strikethrough and color showing edits create ambiguity about what the proponents actually want. Worse, when the redlining is wrong, it creates affirmative confusion for both the AG and any reviewer.

What did sponsors have to do to fix this?
Send a clean version of the text without redlining; complete the unfinished sentences in Sections 102(a), 102(b), 102(m), 103(m), 109(b)(4); resolve the definitional overlap in 102(q); adjust 109(e) to require testing of a portion or batch sample rather than all of the cannabis; fix Section 111's subsection designations; and resubmit. Opinion 2014-086 shows they did exactly that.

Background and statutory framework

A.C.A. § 7-9-107 (Repl. 2007) requires the AG to certify the popular name and ballot title of all proposed initiated acts and constitutional amendments before petitions can be circulated. The AG may substitute a more suitable title under § 7-9-107(b), but must reject the entire petition when the proposal's text is so ambiguous or misleading that an impartial summary is impossible.

Roberts v. Priest, 341 Ark. 813, 825, 20 S.W.3d 376, 383 (2000), is the controlling Arkansas Supreme Court decision on internal-inconsistency rejection. The Court held that a proposed amendment cannot be approved if "[t]he text of the proposed amendment itself contribute[s] to the confusion and disconnect" between the popular name, ballot title, and proposed measure. The AG applied that rule here.

Op. Att'y Gen. 2014-086, issued less than four weeks later, certified a corrected version of the same Medical Cannabis Act.

Citations

• A.C.A. § 7-9-107 (Repl. 2007) (AG certification statute)
• A.C.A. § 7-9-107(b) (substitution authority)
• Roberts v. Priest, 341 Ark. 813, 825, 20 S.W.3d 376, 383 (2000) (internal-inconsistency rule)
• Op. Att'y Gen. 2014-086 (later certification of corrected text)
• Prior rejections of same campaign: 2013-099, 2013-079, 2013-046, 2013-033, 2013-015, 2011-038, 2011-023
• Prior certifications of same campaign: 2013-118, 2011-049

Source

• Landing page: https://arkansasag.gov/divisions/opinions-foia/attorney-general-opinions-search/

Official summary

Request for certification of the popular name and ballot title of an initiated act proposed to legalize the medical use of cannabis (marijuana) within the State of Arkansas, and other purposes. RESPONSE: Rejected due to ambiguities in the text of the proposed measure.

Original opinion text

STATE OF ARKANSAS
THE ATTORNEY GENERAL
DusTIN McDANIEL
Opinion No. 2014-072
July 21, 2014
Melissa Fults, Campaign Director
Arkansans for Compassionate Care 2016
Post Office Box 420
Hensley, Arkansas 72065
Dear Mrs. Fults:
This is in response to your submission, on behalf of Arkansans for Compassionate
Care, for certification of the popular name and ballot title for a proposed initiated
act pursuant to A.C.A. § 7-9-107 (Repl. 2007). Several similar measures were
rejected due to ambiguities in the text of the proposed acts. See Op. Att'y Gen.
2013-099, 2013-079, 2013-046, 2013-033, 2013-015, 2011-038 and 2011-023.
This office certified two of your proposed measures in Op. Att'y Gen. 2013-118
and 2011-049. You have made changes to the text of the measure and resubmitted
your previously proposed popular name and ballot title, as follows:
Popular Name
THE ARKANSAS MEDICAL CANNABIS ACT
Ballot Title
An act making the medical use of cannabis, commonly called
marijuana, legal under Arkansas state law, but acknowledging that
cannabis use, possession, and distribution for any purpose remain
illegal under federal law; establishing a system for the cultivation
and distribution of cannabis for qualifying patients through nonprofit
cannabis care centers and for the testing for quality, safety and
potency of cannabis through cannabis testing labs granting those
nonprofit cannabis care centers and canabis [sic] testing labs limited
immunity; allowing localities to limit the number of nonprofit
323 CENTER STREET, SUITE 200. LITTLE ROCK, ARKANSAS 72201
TELEPHONE (501) 682-2007 •FAX (501) 682-8084
INTERNET WEBSITE • http://www.ag.state.ar.us/ Melissa Fults, Campaign Director
Arkansans for Compassionate Care 2016
Opinion No. 2014-072
Page 2
cannabis care centers and to enact zoning regulations governing their
operations; providing that qualifying patients, their designated
caregivers, cannabis testing lab agents and nonprofit cannabis care
center agents shall not be subject to criminal or civil penalties or
other forms of discrimination for engaging in or assisting with the
qualifying patients' medical use of cannabis or for testing and
labeling cannabis; allowing limited cultivation of cannabis by
qualifying patients and designated caregivers if the qualifying
patient and his or her designated caregiver lacks access to a
nonprofit cannabis care center and obtains a hardship cultivation
certificate from the Department of Health; allowing compensation
for designated caregivers; requiring that in order to become a
qualifying patient, a person submit to the state a writ~en certification
from a physician that he or she is suffering from a qualifying
medical condition; establishing an initial list of qualifying medical
conditions; directing the Department of Health to establish rules
related to the processing of applications for registry identification
cards, hardship cultivation certificates; the operations of nonprofit
cannabis care centers and cannabis testing labs, and the addition of
qualifying medical conditions if such additions will enable patients
to derive therapeutic benefit from the medical use of cannabis;
setting maximum registration fees for nonprofit cannabis care
centers; directing the Department of Health to establish a system to
provide affordable cannabis from nonprofit cannabis care centers to
low income patients; establishing qualifications for registry
identification cards; establishing qualifications for hardship
cultivation certificates; establishing standards to ensure that
qualifying patient and designated caregiver registration information
is treated as confidential; directing the Department of Health to
provide the Legislature annual quantitative reports about the medical
cannabis program; setting certain limitations on the use of medical
cannabis by qualifying patients; establishing an affirmative defense
for the medical use of cannabis; establishing registration and
operation requirements for nonprofit cannabis care centers; setting
limits on the number of nonprofit cannabis care centers; setting
limits on the amount of cannabis a nonprofit cannabis care center
may cultivate and the amount of usable cannabis a nonprofit Melissa Fults, Campaign Director
Arkansans for Compassionate Care 2016
Opinion No. 2014-072
Page 3
cannabis care center may dispense to a qualifying patient;
prohibiting certain conduct by and imposing certain conditions and
requirements on physicians, nonprofit cannabis care centers,
nonprofit cannabis care center agents, cannabis testing labs, cannabis
testing lab agents, qualifying patients, and designated caregivers;
prohibiting felons as serving as desginated [sic] caregivers, owners,
board members, or officers of nonprofit cannabis care centers,
nonprofit cannabis care center agents, cannabis testing labs or
cannabis testing lab agents; allowing visiting qualifying patients
suffering from qualifying medical conditions to utilize the Arkansas
Medical Cannabis Program; and directing the sales tax revenues
received from the sale of cannabis to cover the costs to the
Department of Health for administering the Medical Cannabis
Program and the remainder to aid low income qualifying patients
through the affordability clause.
The Attorney General is required, pursuant to A.C.A. § 7-9-107, to certify the
popular name and ballot title of all proposed initiative and referendum acts or
amendments before the petitions are circulated for signature. The law provides that
the Attorney General may substitute and certify a more suitable and correct
popular name and ballot title, if he can do so, or if the proposed popular name and
ballot title are sufficiently misleading, may reject the entire petition. Neither
certification nor rejection of a popular name and ballot title reflects my view
of the merits of the proposal. This Office has been given no authority to
consider the merits of any measure.
In this regard, A.C.A. § 7-9-107 neither requires nor authorizes this office to make
legal determinations concerning the merits of the act or amendment, or concerning
the likelihood that it will accomplish its stated objective. In addition, consistent
with Arkansas Supreme Court precedent, unless the measure is "clearly contrary to
law,"1 this office will not require that a measure's proponents acknowledge in the
ballot title any possible constitutional infirmities. As part of my review, however,
I may address constitutional concerns for consideration by the measure's
proponents.
1 See Kurrus v. Priest, 342 Ark. 434, 445, 29 S.W.3d 669, 675 (2000); Donovan v. Priest, 326 Ark. 353,
359,931S.W.2d119, 121 (1996);P/uggev. McCuen,310Ark.654,841S.W.2d139(1992). Melissa Fults, Campaign Director
Arkansans for Compassionate Care 2016
Opinion No. 2014-072
Page 4
Consequently, this review has been limited primarily to a determination, pursuant
to the guidelines that have been set forth by the Arkansas Supreme Court,
discussed below, of whether the popular name and ballot title you have submitted
accurately and impartially summarize the provisions of your proposed amendment.
The purpose of my review and certification is to ensure that the popular
name and ballot title honestly, intelligibly, and fairly set forth the purpose of
the proposed amendment or act. 2 _
The popular name is primarily a useful legislative device.3 It need not contain
detailed information or include exceptions that might be required of a ballot title,
but it must not be misleading or give partisan coloring to the merit of the
proposal. 4 The popular name is to be considered together with the ballot title in
determining the ballot title's sufficiency.5
The ballot title must include an impartial summary of the proposed amendment or
act that will give the voter a fair understanding of the issues presented.6 According
to the court, if information omitted from the ballot title is an "essential fact which
would give the voter serious ground for reflection, it must be disclosed."7 At the
same time, however, a ballot title must be brief and concise (see A.C.A. § 7-9-
107(b)); otherwise voters could run afoul of A.C.A. § 7-5-522's five minute limit
in voting booths when other voters are waiting in line. 8 The ballot title is not
required to be perfect, nor is it reasonable to expect the title to cover or anticipate
2 See Arkansas Women's Political Caucus v. Riviere, 283 Ark. 463, 466, 677 S.W.2d 846 (1984).
3 Pafford v. Hall, 217 Ark. 734, 739, 233 S.W.2d 72, 75 (1950).
4 E.g., Chaney v. Bryant, 259 Ark. 294, 297, 532 S.W.2d 741, 743 (1976); Moore v. Hall, 229
Ark. 411, 316 S.W.2d 207 (1958).
5 May v. Daniels, 3 59 Ark. 100, 105, 194 S. W.3d 771, 776 (2004 ).
6 Becker v. Riviere, 270 Ark. 219, 226, 604 S.W.2d 555, 558 (1980).
7 Bailey v. McCuen, 318 Ark. 277, 285, 884 S.W.2d 938, 942 (1994).
8 Id. at 288, 884 S.W.2d at 944. Melissa Fults, Campaign Director
Arkansans for Compassionate Care 2016
Opinion No. 2014-072
Page 5
every possible legal argument the proposed measure might evoke.9 The title,
however, must be free from any misleading tendency, whether bl amplification,
omission, or fallacy; it must not be tinged with partisan coloring. 1 The ballot title
must be honest and impartial, 11 and it must conve{i an intelligible idea of the scope
and significance of a proposed change in the law. 2
Furthermore, the Court has confirmed that a proposed amendment cannot be
approved if "[t]he text of the proposed amendment itself contribute[s] to the
confusion and disconnect between the language in the popular name and the ballot
title and the language in the proposed measure."13 The Court concluded that
"internal inconsistencies would inevitably lead to confusion in drafting a popular
name and ballot title and to confusion in the ballot title itself."14 Where the effects
of a proposed measure on current law are unclear or ambiguous, it is impossible
for me to perform my statutory duty to the satisfaction of the Arkansas Supreme
Court without clarification of the ambiguities.
Having analyzed your proposed amendment, as well as your proposed popular
name and ballot title under the above precepts, it is my conclusion that I must
reject your proposed popular name and ballot title due to ambiguities in the text of
your proposed measure. A number of additions or changes to your ballot title are,
in my view, necessary in order to more fully and correctly summarize your
proposal. I cannot, however, at this time, fairly or completely summarize the
effect of your proposed measure to the electorate in a popular name or ballot title
without the resolution of the ambiguities. I am therefore unable to substitute and
certify a more suitable and correct popular name and ballot title pursuant to
A.C.A. § 7-9-107(b).
9 Id. 293, 884 S.W.2d at 946--47.
10 Id. at 284, 884 S.W.2d at 942.
11 Becker v. McCuen, 303 Ark. 482, 489, 798 S.W.2d 71, 74 (1990).
12 Christian Civic Action Committee v. McCuen, 318 Ark. 241, 245, 884 S. W.2d 605, 607 (1994)
(internal quotations omitted).
13 Roberts v. Priest, 341 Ark. 813, 825, 20 S.W.3d 376, 383 (2000).
14 Id. Melissa Fults, Campaign Director
Arkansans for Compassionate Care 2016
Opinion No. 2014-072
Page 6
I refer to the following ambiguities:

1. Section 102(a) ends "by any means herein [no ending punctuation]," a
   phrase. having no clear meaning.
2. Section 102(b) ends "incapable of germination authorized [no ending
   punctuation]," a phrase having no clear meaning.
3. Section 102(m) refers to "General Anxiety Disorder, Glaucoma," a
   condition not known to me to exist. It may be that the phrase is intended
   to describe two separate Qualifying Medical Conditions but all other
   separate QMC's are separated by semicolons. The fact that a comma
   appears in the quoted phrase suggests a single QMC.
4. Section 102(q) defines "Usable Cannabis" to mean "all Cannabis and
   any mixture or preparation .... " "Cannabis" is defined in Section
   102(b) to include mixtures and preparations of the cannabis plant. It is
   unclear what, if anything, the phrase "mixture or preparation" in Section
   102( q) is intended to add other than possibly a mixture or preparation of
   a mixture or preparation.
5. Section 103(m) is not a coherent sentence and does not end with any
   punctuation.
6. Section 109(b )( 4) refers to "an established resident." It is not clear what
   this phrase would require beyond mere residency for the prescribed
   period.
7. Section 109( e) requires that "all" Usable Cannabis be tested. I assume
   testing will destroy the cannabis tested. It is not clear how any cannabis
   will remain available for distribution if all cannabis is to be tested.
8. Section 111 's subsections are not appropriately designated.
   Additionally, your submission contains underlined, struck-through and
   colored text. It is not apparent that you intend to have those features Melissa Fults, Campaign Director
   Arkansans for Compassionate Care 2016
   Opinion No. 2014-072
   Page?
   enacted into law. Unless you do, any resubmission must be free of such
   features, which are commonly present in a document "blacklined" to show
   changes from a prior version. Your submission may indeed show changes,
   but it does not accurately show the changes you made since your prior
   submission. A document that may be assumed by the reader to accurately
   show changes from a document seen earlier by the reader - but that does
   not actually do so - is inherently misleading and is a hindrance rather than
   a help to this office.
   I cannot certify a ballot title for your proposed amendment in the face of the
   ambiguities noted above. You must remedy these confusing and ambiguous points
   before I can perform my statutory duty.
   My office, in the certification of ballot titles and popular names, does not concern
   itself with the merits, philosophy, or ideology of proposed measures. I have no
   constitutional role in the shaping or drafting of such measures. My statutory
   mandate is embodied only in A.C.A. § 7-9-107 and my duty is to the electorate. I
   am not your counsel in this matter and cannot advise you as to the substance of
   your proposal.
   My statutory duty, under these circumstances, is to reject your proposed ballot title
   (for the foregoing reasons) and instruct you to "redesign" the proposed measure
   and ballot title. You may, after addressing the matters discussed above, resubmit
   your proposed amendment, along with a proposed popular name and ballot title, at
   your convenience. I anticipate, as noted above, that some changes or additions to
   your submitted popular name and ballot title may be necessary. I will be pleased
   to perform my statutory duties in this regard in a timely manner after
   resubmission.
   Sincerely,
   DUSTIN MCDANIEL
   Attorney General
   DM/JMB:cyh
   Enclosures 1
   (POPULAR NAME)
   THE ARKANSAS MEDICAL CANNABIS ACT
   (BALLOT TITLE)
   AN ACT MAKING THE MEDICAL USE OF CANNABIS, COMMONLY CALLED MARIJUANA, LEGAL UNDER
   ARKANSAS STATE LAW, BUT ACKNOWLEDGING THAT CANNABIS USE, POSSESSION, AND DISTRIBUTION
   FOR ANY PURPOSE REMAIN ILLEGAL UNDER FEDERAL LAW; ESTABLISHING A SYSTEM FOR THE
   CULTIVATION AND DISTRIBUTION OF CANNABIS FOR QUALIFYING PATIENTS THROUGH NONPROFIT
   CANNABIS CARE CENTERS AND FOR THE TESTING FOR QUALITY, SAFETY AND POTENCY OF CANNABIS
   THROUGH CANNABIS TESTING LABS AND GRANTING THOSE NONPROFIT CANNABIS CARE CENTERS AND
   CANABIS TESTING LABS LIMITED IMMUNITY; ALLOWING LOCALITIES TO LIMIT THE NUMBER OF NONPROFIT
   CANNABIS CARE CENTERS AND TO ENACT ZONING REGULATIONS GOVERNING THEIR OPERATIONS;
   PROVIDING THAT QUALIFYING PATIENTS, THEIR DESIGNATED CAREGIVERS, CANNABIS TESTING LAB
   AGENTS AND NONPROFIT CANNABIS CARE CENTER AGENTS SHALL NOT BE SUBJECT TO CRIMINAL OR
   CIVIL PENALTIES OR OTHER FORMS OF DISCRIMINATION FOR ENGAGING IN OR ASSISTING WITH THE
   QUALIFYING PATIENTS' MEDICAL USE OF CANNABIS OR FOR TESTING AND LABELING CANNABIS;
   ALLOWING LIMITED CULTIVATION OF CANNABIS BY QUALIFYING PATIENTS AND DESIGNATED
   CAREGIVERS IF THE QUALIFYING PATIENT AND HIS OR HER DESIGNATED CAREGIVER LACKS ACCESS TO
   A NONPROFIT CANNABIS CARE CENTER AND OBTAINS A HARDSHIP CULTIVATION CERTIFICATE FROM
   THE DEPARTMENT OF HEALTH; ALLOWING COMPENSATION FOR DESIGNATED CAREGIVERS; REQUIRING
   THAT IN ORDER TO BECOME A QUALIFYING PATIENT, A PERSON SUBMIT TO THE STATE A WRITTEN
   CERTIFICATION FROM A PHYSICIAN THAT HE OR SHE IS SUFFERING FROM A QUALIFYING MEDICAL
   CONDITION; ESTABLISHING AN INITIAL LIST OF QUALIFYING MEDICAL CONDITIONS; DIRECTING THE
   DEPARTMENT OF HEAL TH TO ESTABLISH RULES RELATED TO THE PROCESSING OF APPLICATIONS FOR
   REGISTRY IDENTIFICATION CARDS, HARDSHIP CULTIVATION CERTIFICATES; THE OPERATIONS OF
   NONPROFIT CANNABIS CARE CENTERS AND CANNABIS TESTING LABS, AND THE ADDITION OF
   QUALIFYING MEDICAL CONDITIONS IF SUCH ADDITIONS WILL ENABLE PATIENTS TO DERIVE THERAPEUTIC
   BENEFIT FROM THE MEDICAL USE OF CANNABIS; SETTING MAXIMUM REGISTRATION FEES FOR
   NONPROFIT CANNABIS CARE CENTERS; DIRECTING THE DEPARTMENT OF HEALTH TO ESTABLISH A
   SYSTEM TO PROVIDE AFFORDABLE CANNABIS FROM NONPROFIT CANNABIS CARE CENTERS TO LOW
   INCOME PATIENTS; ESTABLISHING QUALIFICATIONS FOR REGISTRY IDENTIFICATION CARDS;
   ESTABLISHING QUALIFICATIONS FOR HARDSHIP CULTIVATION CERTIFICATES; ESTABLISHING STANDARDS
   TO ENSURE THAT QUALIFYING PATIENT AND DESIGNATED CAREGIVER REGISTRATION INFORMATION IS
   TREATED AS CONFIDENTIAL; DIRECTING THE DEPARTMENT OF HEALTH TO PROVIDE THE LEGISLATURE
   ANNUAL QUANTITATIVE REPORTS ABOUT THE MEDICAL CANNABIS PROGRAM; SETTING CERTAIN
   LIMITATIONS ON THE USE OF MEDICAL CANNABIS BY QUALIFYING PATIENTS; ESTABLISHING AN
   AFFIRMATIVE DEFENSE FOR THE MEDICAL USE OF CANNABIS; ESTABLISHING REGISTRATION AND
   OPERATION REQUIREMENTS FOR NONPROFIT CANNABIS CARE CENTERS; SETTING LIMITS ON THE
   NUMBER OF NONPROFIT CANNABIS CARE CENTERS; SETTING LIMITS ON THE AMOUNT OF CANNABIS A
   NONPROFIT CANNABIS CARE CENTER MAY CULTIVATE AND THE AMOUNT OF USABLE CANNABIS A
   NONPROFIT CANNABIS CARE CENTER MAY DISPENSE TO A QUALIFYING PATIENT; PROHIBITING CERTAIN
   CONDUCT BY AND IMPOSING CERTAIN CONDITIONS AND REQUIREMENTS ON PHYSICIANS, NONPROFIT
   CANNABIS CARE CENTERS, NONPROFIT CANNABIS CARE CENTER AGENTS, CANNABIS TESTING LABS,
   CANNABIS TESTING LAB AGENTS, QUALIFYING PATIENTS, AND DESIGNATED CAREGIVERS; PROHIBITING
   FELONS FROM SERVING AS DESGINATED CAREGIVERS, OWNERS, BOARD MEMBERS, OR OFFICERS OF
   NONPROFIT CANNABIS CARE CENTERS, NONPROFIT CANNABIS CARE CENTER AGENTS, CANNABIS
   TESTING LABS OR CANNABIS TESTING LAB AGENTS; ALLOWING VISITING QUALIFYING PATIENTS
   SUFFERING FROM QUALIFYING MEDICAL CONDITIONS TO UTILIZE THE ARKANSAS MEDICAL CANNABIS 2
   PROGRAM; AND DIRECTING THE SALES TAX REVENUES RECEIVED FROM THE SALE OF CANNABIS TO
   COVER THE COSTS TO THE DEPARTMENT OF HEAL TH FOR ADMINISTERING THE MEDICAL CANNABIS
   PROGRAM AND THE REMAINDER TO AID LOW INCOME QUALIFYING PATIENTS THROUGH THE
   AFFORDABILITY CLAUSE.
   "An Act to Establish the Arkansas Medical Cannabis Act."
   Be it enacted by the People of the State of Arkansas as follows:
   Amending Arkansas Code Title 20 to add an additional chapter to read: Chapter 65 - Medical Cannabis
   Subchapter 1 - Arkansas Medical Cannabis Act
   SECTION 101. Short title.
   This chapter shall be known and cited as "The Arkansas Medical Cannabis Act" (hereinafter "Act").
   SECTION 102. Definitions. As used in this chapter, unless the context otherwise requires:
   (a) "Assist" or "Assisting" means helping a Qualifying Patient make such Medical Use of Cannabis by enabling such
   medical use by any means herein
   (b) "Cannabis" commonly known as marijuana, means any part and any variety or species, or both, of the cannabis
   plant that contains tetrahydrocannabinol (THC) whether growing or not, the seeds of the plant, the resin extracted from
   any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds,
   or resin. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, fiber, oil, or cake
   made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the
   mature stalks (except the resin extracted from the mature stalks), nor the sterilized seed of the plant that is incapable
   of germination authorized
   (c) "Cannabis Testing Lab" means a facility where Cannabis is tested to insure safety, potency and quality of the
   product.
   (d) "Cannabis Testing Lab Agent" means an employee, supervisor, owner, or agent of a Cannabis Testing Lab who:
   (1) Is twenty-one (21) years of age or older;
   (2) Works at the Cannabis Testing Lab; and
   (3) Has registered with The Department pursuant to section 111.
   (e) "Cardholder" means a Qualifying Patient, a Designated Caregiver, Cannabis Testing Lab Agent or a Nonprofit
   Cannabis Care Center Agent.
   (f) "Designated Caregiver" means a person who is at least twenty-one (21) years of age who has agreed to Assist with
   a Qualifying Patient's Medical Use of Cannabis, including acquiring Usable Cannabis from a Nonprofit Cannabis Care
   Center and delivering it to the Qualifying Patient, and who has registered with The Department pursuant to subsection
   105(d). A Designated Caregiver may serve as a Designated Caregiver for no more than five (5) Qualifying Patients at
   a time. A person who has been found guilty or pleaded guilty or nolo contendere in a criminal proceeding, regardless
   of whether or not the adjudication of guilt or sentence is withheld by a court of this state, another state, or the federal
   government for any felony, shall not be a Designated Caregiver. 3
   (g) "Enclosed, Locked Facility" means a closet, room, greenhouse or other enclosed area equipped with locks or other
   security devices that permit access only by a Cardholder.
   (h) "Hardship Cultivation Certificate" means a document issued by The Department that identifies a location at the
   primary residence of a Qualifying Patient or Designated Caregiver that is approved for the Qualifying Patient or
   Designated Caregiver to cultivate Cannabis for the Qualifying Patient's Medical Use based on documentation of the
   Qualifying Patient's lack of access to a Nonprofit Cannabis Care Center. A person who has been found guilty or
   pleaded guilty or nolo contendere in a criminal proceeding, regardless of whether or not the adjudication of guilt or
   sentence is withheld by a court of this state, another state, or the federal government for any felony, shall not be
   permitted to obtain a Hardship Cultivation Certificate.
   (i) "Medical Use" means the acquisition, possession, preparation, use, delivery, transfer or transportation of Cannabis
   or paraphernalia relating to the administration of Cannabis to treat or alleviate a Qualifying Patient's Qualifying Medical
   Condition or symptoms associated with the Qualifying Patient's Qualifying Medical Condition.
   U) "Nonprofit Cannabis Care Center" means a not-for-profit entity that has registered with The Department pursuant to
   section 109, and performs any combination of the activities therein described.
   (k) "Nonprofit Cannabis Care Center Agent" means an employee, supervisor, volunteer, owner, or agent of a Nonprofit
   Cannabis Care Center who:
   ( 1) Is twenty-one (21) years of age or older;
   (2) Works at the Nonprofit Cannabis Care Center; and
   (3) Has registered with The Department pursuant to section 109.
   (I) "Physician" means a doctor of medicine who holds a valid and existing license to practice medicine pursuant to
   Arkansas Code Title 17, Chapter 95 or its successor; or a doctor of osteopathic medicine who holds a valid and
   existing license pursuant to Arkansas Code Title 17, Chapter 91 or its successor, and has been issued a registration
   from the United States Drug Enforcement Administration to prescribe controlled substances.
   (m) "Qualifying Medical Condition" means one (1) or more of the following:
   (1) Adiposis Dolorosa (Dercum's Disease); Alzheimer's Disease or the agitation thereof; Amyotrophic Lateral
   Sclerosis (ALS); Anorexia; Arnold-Chiari Malformation; Arthritis; Attention Deficit Disorder/Attention Deficit
   Hyperactivity Disorder (ADD/ADHD); Autism; Bipolar Disorder; Bulimia; Cancer; Causalgia; Chronic Inflammatory
   Demyelinating Polyneuropathy (CIDP); Chronic Insomnia; Chronic Obstructive Pulmonary Disease (COPD); Complex
   regional pain syndrome (CRPS)-Types I and II; Crohn's Disease; Dystonia; Emphysema; Fibrous Dysplasia;
   Fibromyalgia; General Anxiety Disorder, Glaucoma; Hepatitis C; Positive Status for Human Immunodeficiency Virus
   and/or Acquired Immune Deficiency Syndrome (HIV/AIDS); Hydrocephalus; Hydromyelia; Interstitial Cystitis; Lupus;
   Migraines; Myasthenia Gravis; Myoclonus; Nail-Patella Syndrome; Neurofibromatosis; Parkinson's Disease; Posterior
   Lateral Sclerosis(PLS); Post-Concussion Syndrome; Post Traumatic Stress Disorder (PTSD); Reflex Sympathetic
   Dystrophy (RSD); Residual Limb and Phantom Pain; Restless Leg Syndrome (RLS); Sjogren's Syndrome;
   Spinocerebellar Ataxia (SCA); Spinal Cord Injury; and/or disease (including but not limited to Arachnoiditis);
   Syringomelia; Tarlov Cysts; Tourette's Syndrome Traumatic Brain Injury; Ulcerative Colitis; or the treatment of any of
   these conditions.
   (2) A chronic or debilitating disease or medical condition or its treatment that produces one or more of the following:
   cachexia or Wasting Syndrome; peripheral neuropathy; intractable pain, which is pain that has not responded to
   ordinary medications, treatment, or surgical measures for more than three (3) months; severe nausea; seizures, 4
   including those characteristic of Epilepsy; or severe and persistent muscle spasms, including those characteristic of
   Multiple Sclerosis; or
   (3) Any other medical condition or its treatment approved by The Department as provided for in subsection 104(g).
   (n) "Qualifying Patient" means a person who has been diagnosed by a Physician as having a Qualifying Medical
   Condition, and who has registered with The Department pursuant to subsection 105(a).
   (o) "Registry Identification Card" means a document issued by The Department that identifies a person as a Qualifying
   Patient, Designated Caregiver, Cannabis Testing Lab Agent, or a Nonprofit Cannabis Care Center Agent.
   (p) "The Department" means The Arkansas Department of Health or its successor.
   (q) "Usable Cannabis," means all Cannabis and any mixture or preparation except seeds and growing plants, but
   does not include the weight of any ingredients other than Cannabis that are combined with Cannabis and prepared for
   consumption as food or drink, oils, tinctures, lotions or salves.
   (r) "Visiting Qualifying Patient" means a patient with a Qualifying Medical Condition who is not a resident of Arkansas
   or who has been a resident of Arkansas for less than thirty (30) days, and who is in actual possession of a Registry
   Identification Card, or its equivalent, that is issued under the laws of another state, district, territory, commonwealth or
   insular possession of the United States, and pertains to a Qualifying Medical Condition under this section.
   (s) "Written Certification" means a document signed by a Physician stating that in the Physician's professional opinion,
   after having completed a full assessment of the Qualifying Patient's medical history and current medical condition
   made in the course of a bona fide Physician-patient relationship, the Qualifying Patient has a Qualifying Medical
   Condition and the potential benefits of the Medical Use of Cannabis would likely outweigh the health risks for the
   Qualifying Patient. A Written Certification shall specify the Qualifying Patient's Qualifying Medical Condition, which also
   shall be noted in the Qualifying Patient's medical records.
   SECTION 103. Protections for the Medical Use of Cannabis
   (a) Qualifying Patient. A Qualifying Patient in actual possession of a Registry Identification Card shall not be subject to
   arrest, prosecution or penalty in any manner or denied any right or privilege, including but not limited to a civil penalty
   or disciplinary action by a business or occupational or professional licensing board or bureau, for Medical Use of
   Cannabis in accordance with this chapter as long as the Qualifying Patient possesses an amount of Cannabis that:
   (1) Is not more than two and one-half (2 %) ounces of Usable Cannabis; and
   (2) If the Qualifying Patient has a Hardship Cultivation Certificate, does not exceed ten (10) Cannabis plants, only of
   which five (5) may be greater than twelve (12) inches in height or diameter. The Cannabis plants must be kept in an
   Enclosed, Locked Facility unless they are being transported because the Qualifying Patient is moving, or they are
   being transported to the Qualifying Patient's property. In addition to the Cannabis plants, the Qualifying Patient may
   possess harvested Cannabis in varying stages of processing in excess of the amount allowed under subdivision (a)(1)
   of this subsection in order to ensure the Qualifying Patient is able to maintain a sufficient supply to meet his or her
   personal medical needs. The harvested Cannabis must be kept in the Enclosed, Locked Facility where the Cannabis
   plants were grown.
   (b) Designated Caregiver. A Designated Caregiver in actual possession of a Registry Identification Card shall not be
   subject to arrest, prosecution or penalty in any manner or denied any right or privilege, including but not limited to a
   civil penalty or disciplinary action by a business or occupational or professional licensing board or bureau, for Assisting
   a Qualifying Patient to whom the Designated Caregiver is connected through The Department's registration process 5
   with the Medical Use of Cannabis in accordance with this chapter, as long as the Designated Caregiver possesses an
   amount of Cannabis that:
   (1) Is not more than two and one-half ( 2~) ounces of Usable Cannabis for each Qualifying Patient to whom the
   Designated Caregiver is connected through The Department's registration process; and
   (2) For each Qualifying Patient who has a Hardship Cultivation Certification and who has specified that the Designated
   Caregiver is allowed under state law to cultivate Cannabis for the Qualifying Patient, does not exceed ten (10)
   Cannabis plants, only of which five (5) may be greater than twelve (12) inches in height or diameter, provided in no
   circumstance shall the total number of plants exceed fifty (50). The Cannabis plants must be kept in an Enclosed,
   Locked Facility unless they are being transported because the Designated Caregiver is moving or they are being
   transported to a Qualifying Patient's property. In addition to the Cannabis plants, the Designated Caregiver may
   possess harvested Cannabis in varying stages of processing in excess of the amount allowed under subdivision (b)(1)
   of this subsection in order to ensure that each Qualifying Patient is able to maintain a sufficient supply to meet his or
   her personal medical needs. The harvested Cannabis must be kept in the Enclosed, Locked Facility where the
   Cannabis plants were grown.
   (c) Presumption.
   (1) A Qualifying Patient is presumed to be lawfully engaged in the Medical Use of Cannabis in accordance with this
   chapter if the Qualifying Patient is in actual possession of a Registry Identification Card and possesses an amount of
   Cannabis that does not exceed the amount allowed under this chapter.
   (2) A Designated Caregiver is presumed to be lawfully engaged in Assisting with the Medical Use of Cannabis in
   accordance with this chapter if the Designated Caregiver is in actual possession of a Registry Identification Card and
   possesses an amount of Cannabis that does not exceed the amount allowed under this chapter.
   (3) The presumption made in subdivisions 103(c)(1) and 103(c)(2) shall be rebutted by evidence that conduct related
   to Cannabis was not for the purpose of treating or alleviating the Qualifying Patient's Qualifying Medical Condition or
   symptoms associated with the Qualifying Medical Condition, in accordance with this chapter.
   (d) Cardholder not subject to arrest. A Cardholder shall not be subject to arrest, prosecution or penalty in any manner
   or denied any right or privilege, including but not limited to a civil penalty or disciplinary action by a business or
   occupational or professional licensing board or bureau, for giving an amount of Usable Cannabis the person is allowed
   to possess under subsections 103(a) or 103(b) to a Qualifying Patient or Designated Caregiver for the Qualifying
   Patient's Medical Use, when nothing of value is transferred in return or for offering to do the same.
   (e) Transfer of Cannabis
   (1) A Nonprofit Cannabis Care Center may accept Cannabis from other Nonprofit Cannabis Care Centers in Arkansas.
   (2) A Nonprofit Cannabis Care Center may transfer or sell Cannabis, to other Nonprofit Cannabis Care Centers, or
   Qualifying Patients with Hardship Cultivation Certificate in Arkansas, or a Designated Caregiver for a Qualifying
   Patient with Hardship Cultivation Certificate in Arkansas.
   (3) A Nonprofit Cannabis Care Center may transfer or sell Usable Cannabis to a Qualifying Patient without a Hardship
   Cultivation Certificate in Arkansas, or to a Designated Caregiver for a Qualifying Patient without a Hardship Cultivation
   Certificate in Arkansas.
   (4) A Nonprofit Cannabis Care Center may transfer Cannabis to and from a Cannabis Testing Lab. 6
   (5) A Nonprofit Cannabis Care Center may accept a donation of Cannabis without compensation, from individuals and
   entities from jurisdictions outside of Arkansas who are allowed to cultivate Cannabis under the laws of their state of
   legal residency.
   (6) Individuals and entities from jurisdictions outside of Arkansas who are allowed to cultivate Cannabis under the laws
   of their state of legal residency shall not be subject to arrest, prosecution, or penalty, or denied any right or privilege
   for donating Cannabis to Nonprofit Cannabis Care Centers.
   (f) Discrimination
   (1) No school or landlord may refuse to enroll or lease to, or otherwise penalize, an individual solely for his or her
   status as a Qualifying Patient or a Designated Caregiver, unless failing to do so would put the school or landlord in
   violation of federal law or regulations.
   (2) For the purposes of medical care, including organ transplants, a Qualifying Patient's use of Cannabis in
   accordance with this chapter shall be considered the equivalent of the authorized use of any other medication used at
   the direction of a Physician, and shall not constitute the use of an illicit substance.
   (3) An employer shall not discriminate against an individual in hiring, termination, or any term or condition of
   employment, or otherwise penalize an individual, based upon the individual's past or present status as a Qualifying
   Patient or Designated Caregiver.
   (g) Person shall not be denied custody of or visitation with minor. A person otherwise entitled to custody of, or
   visitation or parenting time with, a minor shall not be denied custody, visitation or parenting time and there shall be no
   finding of abuse solely for conduct allowed under this chapter and there shall be no presumption of neglect or child
   endangerment for conduct allowed under this chapter, unless the individual's behavior is such that it creates an
   unreasonable danger to the safety or welfare of the minor that can be established by clear and convincing evidence.
   (h) A Designated Caregiver may receive reimbursement of costs or expenses, and reasonable compensation for time
   or services, associated with Assisting a Qualifying Patient's Medical Use of Cannabis as long as the Designated
   Caregiver is connected to the Qualifying Patient through The Department's registration process. Any such
   compensation does not constitute the sale of controlled substances.
   (i) Physician not subject to penalty. A Physician shall not be subject to arrest, prosecution or penalty in any manner or
   denied any right or privilege, including but not limited to a civil penalty or disciplinary action by the Arkansas State
   Medical Board or by any other business, occupational or professional licensing board or bureau, solely for providing
   Written Certifications.
   U) Person not subject to penalty for providing Qualifying Patient or Designated Caregiver Cannabis paraphernalia. A
   person shall not be subject to arrest, prosecution or penalty in any manner or denied any right or privilege, including
   but not limited to a civil penalty or disciplinary action by a business or occupational or professional licensing board or
   bureau, for providing a Qualifying Patient or a Designated Caregiver with Cannabis paraphernalia for purposes of
   facilitating a Qualifying Patient's Medical Use of Cannabis.
   (k) Any Cannabis, Cannabis paraphernalia, licit property or interest in licit property that is possessed, owned, or used
   in connection with the Medical Use of Cannabis, as allowed under this chapter, or property incidental to such use,
   shall not be seized or forfeited.
   (I) Person not subject to penalty for being in presence of Medical Use of Cannabis. A person shall not be subject to
   arrest, prosecution or penalty in any manner or denied any right or privilege, including but not limited to a civil penalty
   or disciplinary action by a business or occupational or professional licensing board or bureau, simply for being in the 7
   presence or vicinity of the Medical Use of Cannabis as allowed under this chapter or for directly Assisting a physically
   disabled Qualifying Patient with using or administering Cannabis.
   (m) Effect of Registry Identification Card issued by another jurisdiction. A Registry Identification Card, or its equivalent,
   that is issued under the laws of another state, district, territory, commonwealth or insular possession of the United
   States that allows, in the jurisdiction of issuance, a Visiting Qualifying Patient may obtain a temporary Registry
   Identification Card to possess and purchase Usable Cannabis for Medical Use, issued by The Department, provided
   that the same Qualifying Medical Condition as defined in subsection 102(m) exists, for a maximum of a 30 day period
   SECTION 104. Rules
   (a) Rule making power. The Department shall adopt rules to carry out the purposes of this chapter. Rules adopted
   pursuant to this Act are rules as defined in Arkansas Code§ 25-15-201 et seq., the Arkansas Administrative
   Procedure Act.
   (b) Registry Identification Cards. Not later than one hundred twenty ( 120) days after the effective date of this chapter,
   The Department shall adopt rules governing the manner in which it considers applications for and renewals of Registry
   Identification Cards. The Department's rules must establish application and renewal fees not to exceed fifty dollars
   ($50.00) per year. The Department shall establish a sliding scale of application and renewal fees based upon a
   Qualifying Patient's family income. The Department may accept donations from private sources in order to reduce the
   application and renewal fees.
   ( c) Hardship Cultivation Certificates. Not later than one ( 1) year after the effective date of this chapter, The
   Department shall adopt rules governing the manner in which it considers applications for and renewals of Hardship
   Cultivation Certificates. The Department's rules must establish application and renewal fees not to exceed one
   hundred dollars ($100) per year. The Department shall establish a sliding scale of application and renewal fees based
   upon a Qualifying Patient's family income. The Department may accept donations from private sources in order to
   reduce the application and renewal fees.
   (d) Nonprofit Cannabis Care Centers. Not later than one hundred twenty (120) days after the effective date of this
   chapter, The Department shall adopt rules with the goal of protecting against diversion and theft, without imposing an
   undue burden on the registered Nonprofit Cannabis Care Centers or compromising the confidentiality of Qualifying
   Patients or their Designated Caregivers, including rules governing:
   (1) The manner in which it considers applications for and renewals of registration certificates for Nonprofit Cannabis
   Care Centers;
   (2) The form and content of registration and renewal applications;
   (3) Oversight requirements for Nonprofit Cannabis Care Centers;
   (4) Record-keeping requirements for Nonprofit Cannabis Care Centers;
   (5) Security requirements for Nonprofit Cannabis Care Centers which shall include lighting, physical security, alarm
   requirements, and measures to prevent loitering;
   (6) Sanitary requirements for Nonprofit Cannabis Care Centers;
   (7) Electrical safety requirements for Nonprofit Cannabis Care Centers;
   (8) The specification of acceptable forms of picture identification that a Nonprofit Cannabis Care Center may accept; 8
   (9) Personnel requirements including how many volunteers a Nonprofit Cannabis Care Center is permitted to have and
   requirements for supervision;
   (10) Labeling standards for Usable Cannabis distributed to Qualifying Patients;
   (11) Procedures for suspending or terminating the registration of Nonprofit Cannabis Care Centers that violate the
   provisions of this section or the rules adopted pursuant to this section, procedures for appealing penalties, and a
   schedule of penalties;
   (12) Procedures for inspections and investigations of Nonprofit Cannabis Care Centers;
   (13) Advertising restrictions for Nonprofit Cannabis Care Centers;
   (14) Permissible hours of operation for Nonprofit Cannabis Care Center sales; and
   (15) Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this
   chapter.
   (e) Application and renewal fees for Nonprofit Cannabis Care Centers. Not later than one hundred twenty (120) days
   after the effective date of this chapter, The Department shall adopt rules establishing application and renewal fees for
   Nonprofit Cannabis Care Center registration certificates, according to the following:
   (1) Nonprofit Cannabis Care Center application fees shall not exceed five thousand dollars ($5,000);
   (2) Nonprofit Cannabis Care Center renewal fees shall not exceed one thousand dollars ($1,000).
   (f) Cannabis Testing Labs. Not later than one hundred twenty (120) days after the effective date of this chapter, The
   Department shall adopt rules with the goal of protecting against diversion and theft, without imposing an undue burden
   on the registered Cannabis Testing Lab or compromising the confidentiality of Cannabis Testing Lab Records.
   (1) The manner in which it considers applications for and renewals of registration certificates for Cannabis Testing
   Labs;
   (2) The form and content of registration and renewal applications;
   (3) Oversight requirements for Cannabis Testing Labs;
   (4) Record-keeping requirements for Cannabis Testing Labs;
   (5) Security requirements for Cannabis Testing Labs which shall include lighting, physical security, alarm
   requirements, and measures to prevent loitering;
   (6) Sanitary requirements for Cannabis Testing Labs;
   (7) Electrical safety requirements for Cannabis Testing Labs;
   (8) Labeling standards for Usable Cannabis distributed to Qualifying Patients;
   (9) Procedures for suspending or terminating the registration of Cannabis Testing Lab that violate the provisions of this
   section or the rules adopted pursuant to this section, procedures for appealing penalties, and a schedule of penalties;
   (10) Procedures for inspections and investigations of Cannabis Testing Labs; 9
   ( 11) Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this
   chapter.
   (g) Application and renewal fees for Cannabis Testing Labs. Not later than one hundred twenty (120) days after the
   effective date of this chapter, The Department shall adopt rules establishing application and renewal fees for Cannabis
   Testing Labs registration certificates, according to the following:
   (1) Cannabis Testing Labs application fees shall not exceed one thousand dollars ($1,000).
   (2) Cannabis Testing Labs renewal fees shall not exceed two hundred fifty dollars ($250).
   (h) Affordable dispensing. Not later than one hundred eighty (180) days after the effective date of this chapter, The
   Department shall adopt rules establishing a system to provide for the safe and affordable dispensing of Usable
   Cannabis to Qualifying Patients who are unable to afford a sufficient supply of Usable Cannabis based upon the
   Qualifying Patient's income and existing financial resources that:
   (1) Allow Qualifying Patients to apply to The Department to be eligible to purchase Usable Cannabis on a sliding scale
   from Nonprofit Cannabis Care Centers; and
   (2) Any remaining sales tax revenue made pursuant to subdivision 117 (c)(1) shall be used to provide Usable
   Cannabis on the sliding scale to Qualifying patients determined to be eligible pursuant to subdivision (h)(1) of this
   subsection
   (2) Require each Nonprofit Cannabis Care Center to devote a maximum of 1 % percent of its gross revenue, as
   determined by The Department, to providing Usable Cannabis on the sliding scale to Qualifying Patients determined to
   be eligible pursuant to subdivision (h)(1) of this subsection.
   (i) Adding Qualifying Medical Conditions. Not later than one hundred twenty (120) days after the effective date of this
   chapter, The Department shall adopt rules that govern the manner in which The Department shall consider petitions
   from the public to add medical conditions or treatments to the list of Qualifying Medical Conditions set forth in
   subsection 102(m).
   (1) In considering such petitions, The Department shall include public notice of, and an opportunity to comment in a
   public hearing upon, such petitions.
   (2) In considering such petitions, The Department shall add medical conditions or treatments to the list of Qualifying
   Medical Conditions set forth in subsection 102(m) if patients suffering from the medical conditions or undergoing the
   treatments in question would derive therapeutic benefit from the use of Cannabis, taking into account the positive and
   negative health effects of such use. The Department shall consider published studies in peer-reviewed journals,
   Physician testimony, and public comments made pursuant to subdivision 104(i)(1) in making such determination.
   (3) The Department shall approve or deny such petitions within sixty (60) days of their submission. The approval or
   denial of such a petition constitutes final agency action, subject to judicial review, and jurisdiction for judicial review is
   vested in the Circuit Court of Pulaski County.
   SECTION 105. Registry Identification Cards
   (a) Application for Registry Identification Card and qualifications. The Department shall issue Registry Identification
   Cards to Qualifying Patients who submit, in accordance with The Department's rules:
   (1) Written Certification;
   (2) Application or renewal fee; 10
   (3) Name, address and date of birth of the Qualifying Patient, except that if the applicant is homeless, no address is
   required;
   (4) Name, address and telephone number of the Qualifying Patient's Physician;
   (5) Name, street address and date of birth of the Qualifying Patient's Designated Caregiver, if any;
   (6) Name and address of the Nonprofit Cannabis Care Center that the Qualifying Patient designates, if any. A
   Qualifying Patient shall designate only one Nonprofit Cannabis Care Center at a time; or
   (7) A Qualifying Patient that obtains a Hardship Cultivation Certificate shall designate that the Qualifying Patient or the
   Qualifying Patient's Designated Caregiver will grow Cannabis for the Qualifying Patient's Medical Use;
   (8) A signed statement from the Qualifying Patient pledging not to divert Cannabis to anyone who is not allowed to
   possess Cannabis pursuant to this chapter; and
   (9) A signed statement from the Designated Caregiver, if any, agreeing to be the Qualifying Patient's Designated
   Caregiver and pledging not to divert Cannabis to anyone who is not allowed to possess Cannabis pursuant to this
   chapter.
   (b) Issuing Registry Identification Card to minor. The Department shall not issue a Registry Identification Card to a
   Qualifying Patient who is under eighteen (18) years of age 1,mless:
   (1) The Qualifying Patient's Physician has explained the potential risks and benefits of the Medical Use of Cannabis to
   the Qualifying Patient and to a parent, guardian or person having legal custody of the Qualifying Patient; and
   (2) A parent, guardian or person having legal custody consents in writing to:
   (A) Allow the Qualifying Patient's Medical Use of Cannabis;
   (B) Serve as the Qualifying Patient's Designated Caregivers; and
   (C) Control the acquisition of the Cannabis and the dosage and frequency of the Medical Use of Cannabis by the
   Qualifying Patient.
   (c) Department approval or denial. The Department shall verify the information contained in an application or renewal
   submitted pursuant to this section and shall approve or deny an application or renewal within fourteen ( 14) days of
   receiving it. The Department may deny an application or renewal only if the applicant did not provide the information
   required pursuant to this section, the applicant previously had a Registry Identification Card revoked, The Department
   determines that the information provided was falsified, or The Department determines the Written Certification was not
   made in the context of a bona fide Physician-patient relationship. Rejection of an application or renewal is considered
   a final agency action, subject to judicial review, and jurisdiction is vested in the Circuit Court of Pulaski County.
   (d) Designated Caregiver Registry Identification Card. The Department shall issue a Registry Identification Card to the
   Designated Caregiver, if any, who is named in a Qualifying Patient's approved application pursuant to subsection
   105(a) of this section. A person who has been found guilty or pleaded guilty or nolo contendere in a criminal
   proceeding, regardless of whether or not the adjudication of guilt or sentence is withheld by a court of this state,
   another state, or the federal government for any felony, shall not be a Designated Caregiver and shall not be issued a
   Designated Caregiver Registry Identification Card. The Department shall conduct a background check of each
   prospective Designated Caregiver in order to carry out this subsection.
   (e) Registry Identification Card issuance. The Department shall issue Registry Identification Cards to Qualifying
   Patients and Designated Caregivers within five (5) days of approving an application or renewal under this section. 11
   ( 1) Registry Identification Cards expire one (1) year after the date of issuance, unless the Physician states in the
   Written Certification that he believes the Qualifying Patient would benefit from the Medical Use of Cannabis only until a
   specified earlier date, then the Registry Identification Card shall expire on that date.
   (2) In the case of Qualifying Patients and Designated Caregivers, Registry Identification Cards shall contain:
   (A) The name, address and date of birth of the Qualifying Patient or Designated Caregiver;
   (8) The name, address and date of birth of the Qualifying Patient's Designated Caregiver, if any;
   (C) The date of issuance and expiration date of the Registry Identification Card;
   (D) A random, 10-digit alphanumeric identification number that is unique to the Qualifying Patient or Designated
   Caregiver;
   (E) A photograph, if The Department decides to require one; and
   (F) A clear designation showing whether the Qualifying Patient or Designated Caregiver will be allowed under state
   law to cultivate Cannabis plants for the Qualifying Patient's Medical Use.
   (f) Notification of changes in status or loss of card. This subsection governs notification of changes in status or the loss
   of a Registry Identification Card.
   ( 1) A Qualifying Patient shall notify The Department within fifteen ( 15) days of any change in the Qualifying Patient's
   name, address, Designated Caregiver or preference regarding who may cultivate Cannabis for the Qualifying Patient
   or if the Qualifying Patient ceases to have a Qualifying Medical Condition.
   (2) A Nonprofit Cannabis Care Center shall notify The Department within fifteen (15) days of any change in the name
   or address of a Nonprofit Cannabis Care Center Agent issued a Registry Identification Card in accordance with
   subsection 109(g).
   (3) A Qualifying Patient or a Nonprofit Cannabis Care Center who fails to notify The Department as required under
   subdivisions 105(f)(1) or 105(f)(2) commits a civil violation for which a penalty of not more than one hundred fifty
   dollars ($150) may be adjudged and collected by The Department.
   (4) If the Qualifying Patient's certifying Physician notifies The Department in writing that the Qualifying Patient has
   ceased to suffer from a Qualifying Medical Condition, the Qualifying Patient's Registry Identification Card becomes
   void upon notification by The Department to the Qualifying Patient.
   (5) A Designated Caregiver, Cannabis Testing Lab, or Nonprofit Cannabis Care Center shall notify The Department of
   any change in the Designated Caregiver's, Cannabis Testing Lab's, or Nonprofit Cannabis Care Center's name or
   address within ten (10) days of such change. A Designated Caregiver, Cannabis Testing Lab, or Nonprofit Cannabis
   Care Center who fails to notify The Department of any of these changes commits a civil violation for which a penalty of
   not more than one hundred fifty dollars ($150) may be adjudged and collected by The Department
   (6) When a Qualifying Patient or Designated Caregiver notifies The Department of any changes listed in this
   subsection, The Department shall issue the Qualifying Patient and the Designated Caregiver a new Registry
   Identification Card within ten (10) days of receiving the updated information and a ten dollar ($10.00) fee.
   (7) When a Qualifying Patient changes the Qualifying Patient's Designated Caregiver, The Department shall notify the
   previous Designated Caregiver within ten (10) days. The previous Designated Caregiver's protections as provided in
   this chapter expire ten (10) days after notification by The Department. 12
   (8) If a Cardholder loses the Cardholder's Registry Identification Card, the Cardholder shall notify The Department and
   submit a ten dollar ($10.00) fee within ten (10) days of losing the card. Within five (5) days after such notification, The
   Department shall issue a new Registry Identification Card with a new random identification number.
   (g) Confidentiality.
   (1) Applications and supporting information submitted by Qualifying Patients and Designated Caregivers under this
   chapter, including information regarding Designated Caregivers and Physicians, shall be treated as a confidential
   medical record.
   (2) The Department shall maintain a confidential list of the persons to whom The Department has issued Registry
   Identification Cards and Hardship Cultivation Certificates. Individual names and other identifying information on the list
   are confidential, exempt from the Arkansas Freedom of Information Act of 1967, Arkansas Code§ 25-19-101 et seq.,
   and not subject to disclosure except to authorized employees of The Department as necessary to perform official
   duties of The Department.
   (3) The Department shall verify to law enforcement personnel whether a Registry Identification Card or Hardship
   Cultivation Certificate is valid without disclosing more information than is reasonably necessary to verify the
   authenticity of the Registry Identification Card or Hardship Cultivation Certificate.
   (4) A person, including an employee or official of The Department or another state agency or local government, who
   breaches the confidentiality of information obtained pursuant to this chapter commits a Class A misdemeanor.
   However, employees of The Department shall notify law enforcement about falsified or fraudulent information
   submitted to The Department as long as the employee who suspects that falsified or fraudulent information has been
   submitted confers with the employee's supervisor and both agree that circumstances exist that warrant reporting.
   (h) Cardholder who sells Cannabis to person not allowed to possess. Any Cardholder who transfers Cannabis to a
   person who is not a Cardholder under this chapter shall have his Registry Identification Card and Hardship Cultivation
   Certificate revoked and shall be subject to any other penalties established by law for unlawful transfer of a controlled
   substance. The Department shall revoke the Registry Identification Card or Hardship Cultivation Certificate of any
   Cardholder who violates any provision of this chapter, and the Cardholder is subject to any other penalties established
   in law for the violation.
   (i) Annual report. The Department shall submit to the Legislature an annual report that does not disclose any
   identifying information about Cardholders or Physicians, but does contain, at a minimum:
   (1) The number of applications and renewals filed for Registry Identification Cards;
   (2) The number of Qualifying Patients and Designated Caregivers approved in each county;
   (3) The number of applications and renewals for Hardship Cultivation Certificates;
   (4) The number of Hardship Cultivation Certificates approved in each county;
   (5) The nature of the Qualifying Medical Conditions of the Qualifying Patients;
   (6) The number of Registry Identification Cards revoked;
   (7) The number of Physicians providing Written Certifications for Qualifying Patients;
   (8) The number of registered Nonprofit Cannabis Care Centers; and
   (9) The number of Nonprofit Cannabis Care Center Agents. 13
   (10) The number of Cannabis Testing Labs.
   (11) The number of Cannabis Testing Lab Agents.
   SECTION 106. Hardship Cultivation Certificates
   (a) Application for Hardship Cultivation Certificates and qualifications. The Department shall issue Hardship Cultivation
   Certificates to Qualifying Patients who, in accordance with rules issued by The Department, submit:
   (1) A written explanation and supporting documentation of the Qualifying Patient's need for a Hardship Cultivation
   Certificate based on a lack of a Nonprofit Cannabis Care Center within twenty (20) miles of the Qualifying Patient's
   residence;
   (2) An application or renewal fee;
   (3) A copy of the Qualifying Patient's Registry Identification Card;
   (4) The address and description of the single location that shall be used for the cultivation of Cannabis, which shall be
   either the primary residence of the Qualifying Patient or the Designated Caregiver; and
   (5) Any other information required by The Department.
   (b) Department approval or denial. The Department shall verify the information contained in an application or renewal
   submitted pursuant to this section and shall approve or deny an application or renewal within thirty (30) days of
   receiving it. The Department may deny an application or renewal only if the applicant did not provide the information
   required pursuant to this section, the applicant previously had a Hardship Cultivation Certificate revoked, The
   Department determines that the Qualifying Patient does not have a verified hardship and is within twenty (20) miles of
   a registered Nonprofit Cannabis Care Center, or The Department determines that the information provided was
   falsified. Rejection of an application or renewal is considered a final agency action, subject to judicial review, and
   jurisdiction is vested in the Circuit Court of Pulaski County.
   (c) Hardship Cultivation Certificate issuance. The Department shall issue Hardship Cultivation Certificates to
   Qualifying Patients within five (5) days of approving an application or renewal under this section. Hardship Cultivation
   Certificates expire one (1) year after the date of issuance.
   (d) Notification of changes in status. This subsection governs notification of changes in status.
   (1) A Qualifying Patient shall notify The Department within fifteen (15) days if the Qualifying Patient ceases to have the
   hardship which qualified the Qualifying Patient for a Hardship Cultivation Certificate under subdivision 106(a)( 1 ).
   (2) The Hardship Cultivation Certificate becomes void 120 days after receipt by The Department that the Qualifying
   Patient ceases to have a qualifying hardship or at the expiration date, whichever comes first
   (e) Location of cultivation. This subsection governs the location of cultivation.
   (1) A Qualifying Patient with a Hardship Cultivation Certificate shall only cultivate Cannabis at the location specified in
   the application and approved by The Department.
   (2) The Hardship Cultivation Certificate must be displayed and clearly visible at the location where Cannabis is
   cultivated.
   (3) At any given location, cultivation shall occur pursuant to only one (1) Hardship Cultivation Certificate unless it is the
   primary residence of more than one (1) Qualifying Patient for whom The Department has approved a Hardship 14
   Cultivation Certificate for that location or it is the primary residence of a Designated Caregiver who is the Designated
   Caregiver for more than one (1) Qualifying Patient for whom The Department has approved a Hardship Cultivation
   Certificate for that location.
   (4) Cannabis cultivation and storage of Cannabis produced by the cultivation shall be in an Enclosed, Locked Facility.
   (f) Inspection of cultivation. The Department shall inspect and search the location of cultivation specified in a Hardship
   Cultivation Certificate during normal business hours.
   (g) Felony exclusion. The Department shall not issue a Hardship Cultivation Certificate to any Qualifying Patient or
   Designated Caregiver who has been found guilty or pleaded guilty or nofo contendere in a criminal proceeding,
   regardless of whether or not the adjudication of guilt or sentence is withheld by a court of this state, another state, or
   the federal government for any felony. The Department shall conduct a background check of each prospective
   Hardship Cultivation Certificate applicant in order to carry out this subsection. The Department shall notify the
   Qualifying Patient or Designated Caregiver in writing of the reason for denying the Hardship Cultivation Certificate.
   SECTION 107. Scope
   (a) Limitations. This chapter does not permit any person to:
   ( 1) Undertake any task under the influence of Cannabis when doing so would constitute negligence or professional
   malpractice;
   (2) Possess, smoke, or otherwise engage in the Medical Use of Cannabis:
   (A) In a school bus;
   (8) On the grounds of any daycare center, preschool, or primary or secondary school;
   (C) At a drug or alcohol treatment facility;
   (D) At a skating rink, Boys Club, Girls Club, YMCA, YWCA, or any similar community or recreation center;
   (E) In any correctional facility;
   (F) On any form of public transportation; or
   (G) In any public place;
   (3) Operate, navigate or be in actual physical control of any motor vehicle, aircraft, motorized watercraft or any other
   vehicle drawn by power other than muscular power while under the influence of Cannabis; or
   (4) Use Cannabis if that person does not have a Qualifying Medical Condition.
   (b) Construction. This chapter shall not be construed to require:
   (1) A government medical assistance program or private health insurer to reimburse a person for costs associated with
   the Medical Use of Cannabis;
   (2) An employer to accommodate the ingestion of Cannabis in any workplace or any employee working while under
   the influence of Cannabis;
   (3) Any individual or establishment in lawful possession of property to allow a guest, client, customer, or other visitor to
   use Cannabis on or in that property; or 15
   (4) A landlord to permit a Qualifying Patient to smoke Cannabis on any or in any leased property, except that a
   landlord shall not prohibit the Medical Use of Cannabis on leased property by a Qualifying Patient through means
   other than smoking, including but not limited to the ingestion of medical Cannabis or the inhalation through
   vaporization, as long as the tenant in possession of the property provides permission to the Qualifying Patient to use
   medical Cannabis in the rented property.
   (c) Penalty for fraudulent representation. Fraudulent representation to a law enforcement official of any fact or
   circumstance relating to the Medical Use of Cannabis to avoid arrest or prosecution is a civil violation punishable by a
   fine of five hundred dollars ($500) payable to The Department, which is in addition to any other penalties that may
   apply for making a false statement to law enforcement or for the use of Cannabis other than use undertaken pursuant
   to this chapter.
   SECTION 108. Affirmative defense and dismissal for Medical Use of Cannabis
   (a) Affirmative defense. Except as provided in subsection 107(a) and this section, an individual may assert a medical
   purpose for using Cannabis as an affirmative defense to prosecution for an offense involving Cannabis intended for
   the individual's Medical Use, and this defense shall be presumed valid and the prosecution shall be dismissed where
   the evidence demonstrates that:
   ( 1) The individual is:
   (A) A Qualifying Patient, Designated Caregiver, Cannabis Testing Agent, or Nonprofit Cannabis Care Center Agent:
   and
   (B) In compliance with the conditions imposed in section 103 of this Act: or
   (2) All of the following apply:
   (A) The Department has delayed the review of the individual's application, the issuance of the individual's Registry
   Identification Card, or both for a period of greater than sixty (60) days: and
   (B)The individual's application meets the requirements of a Qualifying Patient, Designated Caregiver, Cannabis
   Testing Lab Agent, or Nonprofit Cannabis Care Center Agent; and
   (b) Limitations. The defense and motion to dismiss shall not prevail if either of the following are proven:
   ( 1) The individual's Registry Identification Card has been revoked; or
   (2) The purposes for the possession or cultivation of Cannabis were not solely for Medical Use.
   (c) Possession of Registry Identification Card is required. An individual is required to be in actual, physical possession
   of a Registry Identification Card to raise the affirmative defense set forth in this section.
   (d) Protections. If an individual demonstrates a Medical Use of Cannabis pursuant to this section, except as provided
   in subsection 107(a), the individual shall not be subject to the following:
   ( 1) Disciplinary action by an occupational or professional licensing board or bureau; or
   (2) Forfeiture of any interest in or right to non-Cannabis, licit property.
   SECTION 109. Registration, certification of Nonprofit Cannabis Care Centers
   (a) Nonprofit Cannabis Care Center registration required. Nonprofit Cannabis Care Centers shall register with The
   Department. 16
   (b) Issuing Nonprofit Cannabis Care Center registration certificates. Not later than sixty (60) days after receiving an
   application for a Nonprofit Cannabis Care Center, The Department shall register the Nonprofit Cannabis Care Center
   and issue a registration certificate and a random 10-digit alphanumeric identification number if:
   ( 1) The prospective Nonprofit Cannabis Care Center had submitted the following:
   (A) The application fee;
   (B) An application, including:
   (i) The legal name of the Nonprofit Cannabis Care Center;
   (ii) The physical address of the Nonprofit Cannabis Care Center and the physical address of one (1) additional
   location, if any, where Cannabis will be cultivated, neither of which shall be within one thousand feet (1000') of a public
   or private school existing before the date of the Nonprofit Cannabis Care Center application;
   (iii) The name, address and date of birth of each Nonprofit Cannabis Care Center Agent;
   (iv) Written procedures to ensure accurate record-keeping and adequate security measures;
   (v) If the city, town or county in which the Nonprofit Cannabis Care Center would be located has enacted zoning
   restrictions, a sworn statement certifying that the Nonprofit Cannabis Care Center will operate in compliance with the
   restrictions; and
   (vi) A sworn statement that none of the Nonprofit Cannabis Care Center Agents is under twenty-one (21) years of age;
   (2) None of the owners, board members, or officers has been found guilty or pleaded guilty or nolo contendere in a
   criminal proceeding, regardless of whether or not the adjudication of guilt or sentence is withheld by a court of this
   state, another state, or the federal government for any felony; and
   (3) None of the owners, board members or officers has previously been an owner, board member, or officer of a
   Nonprofit Cannabis Care Center that has had its registration certificate revoked.
   (4) Owners of a Nonprofit Cannabis Care Center must be an established resident of Arkansas for a minimum of two
   (2) years.
   (c) Number of Nonprofit Cannabis Care Centers limited. The Department shall not issue more than one (1) Nonprofit
   Cannabis Care Center registration certificate for every twenty (20) pharmacies that have obtained a pharmacy permit
   from the Arkansas State Board of Pharmacy and operate within the state, except that The Department may issue
   Nonprofit Cannabis Care Center registration certificates in excess of this limit if The Department determines that
   additional Nonprofit Cannabis Care Centers are necessary to provide convenient access to Usable Cannabis by
   Qualifying Patients in all parts of the state.
   (d) Criminal background checks. The Department shall conduct criminal background checks on each prospective
   owner, board member, or officer in order to carry out subdivision 109(b)(2).
   (e) Allowable conduct. A Nonprofit Cannabis Care Center registered under this section may acquire, possess,
   manufacture, prepare, deliver, transfer and transport Cannabis, supply, sell, and dispense Usable Cannabis, Cannabis
   paraphernalia, and related supplies and educational materials, to Qualifying Patients who have designated it as their
   Nonprofit Cannabis Care Center and to their Designated Caregivers for the Qualifying Patients' Medical Use. Nonprofit
   Cannabis Care Centers are required to have all Usable Cannabis tested by a certified Cannabis Testing Lab and
   labeled for potency, and to guarantee pesticide free, organically grown product. A Nonprofit Cannabis Care Center
   may receive compensation for providing the goods and services allowed by this section. A Nonprofit Cannabis Care 17
   Center may possess Cannabis and non-Cannabis parts of the Cannabis plant necessary for the cultivation of
   Cannabis. A Nonprofit Cannabis Care Center may also cultivate and possess whichever of the following quantities is
   greater:
   (1) One hundred (100) Cannabis plants, of which only fifty (50) may be greater than twelve (12) inches in height or
   diameter, and the Cannabis produced by the plants or predecessor plants; or
   (2) ten (10) Cannabis plants, of which only five (5) may be greater than twelve (12) inches in height or diameter, and
   all Cannabis produced by the plants or predecessor plants, for each Qualifying Patient who has designated the
   Nonprofit Cannabis Care Center to provide him or her with Cannabis for Medical Use.
   (f) Tracking. The Department shall track the number of Qualifying Patients who have designated each Nonprofit
   Cannabis Care Center to cultivate Cannabis for them and issue a monthly written statement to the Nonprofit Cannabis
   Care Center identifying the number of Qualifying Patients who have designated that Nonprofit Cannabis Care Center
   along with the Registry Identification Card numbers of each Qualifying Patient and each Qualifying Patient's
   Designated Caregivers. This statement must be updated each time a new Qualifying Patient designates the Nonprofit
   Cannabis Care Center or ceases to designate the Nonprofit Cannabis Care Center and may be transmitted
   electronically if The Department's rules so provide. The Department shall provide by rule that the updated written
   statements shall not be required more frequently than one (1) time per week.
   (g) Nonprofit Cannabis Care Center Agent Registry Identification Card. The Department shall issue each Nonprofit
   Cannabis Care Center Agent a Registry Identification Card within ten (10) days of receipt of the person's name,
   address and date of birth under subdivision 109(b)(1)(B)(iii,) and a fee in an amount established by The Department.
   Each card must specify that the Cardholder is a Nonprofit Cannabis Care Center Agent and must contain:
   ( 1) The name, address and date of birth of the Nonprofit Cannabis Care Center Agent;
   (2) The legal name of the Nonprofit Cannabis Care Center with which the Nonprofit Cannabis Care Center Agent is
   affiliated;
   (3) A random identification number that is unique to the Cardholder;
   (4) The date of issuance and expiration date of the Registry Identification Card; and
   (5) A photograph, if The Department decides to require one.
   (h) Felony exclusion. The Department shall not issue a Registry Identification Card to any Nonprofit Cannabis Care
   Center Agent who has been found guilty or pleaded guilty or nolo contendere in a criminal proceeding, regardless of
   whether or not the adjudication of guilt or sentence is withheld by a court of this state, another state, or the federal
   government for any felony. The Department shall conduct a background check of each prospective Nonprofit
   Cannabis Care Center Agent in order to carry out this subsection. The Department shall notify the Nonprofit Cannabis
   Care Center Agent in writing of the reason for denying the Registry Identification Card.
   (i) Expiration. A Nonprofit Cannabis Care Center registration certificate and the Registry Identification Card for each
   Nonprofit Cannabis Care Center Agent expire one (1) year after the date of issuance. The Department shall issue
   renewal Nonprofit Cannabis Care Center registration certificates and renewal Registry Identification Cards within ten
   (10) days prior to their expiration. A Registry Identification Card of a Nonprofit Cannabis Care Center Agent expires
   upon notification by a Nonprofit Cannabis Care Center that such person ceases to work at the Nonprofit Cannabis
   Care Center.
   SECTION 110. Nonprofit Cannabis Care Center inspections and search requirements 18
   (a) Reasonable inspection and search. Nonprofit Cannabis Care Centers are highly regulated by the state. A Nonprofit
   Cannabis Care Center therefore is subject to reasonable inspection and search by The Department, including of its
   inventory and records of transactions. Inspection and search under this subsection shall be conducted during normal
   business hours and in a reasonable manner. This does not preclude use of a search warrant if probable cause to
   believe a criminal offense has occurred on the premises.
   (b) Nonprofit Cannabis Care Center requirements. This subsection governs the operations of Nonprofit Cannabis Care
   Centers.
   (1) A Nonprofit Cannabis Care Center must be operated on a not-for-profit basis for the mutual benefit of its members
   and patrons. A Nonprofit Cannabis Care Center need not be recognized as a tax-exempt organization under 26 U.S.C.
   § 501(c)(3).
   (2) A Nonprofit Cannabis Care Center shall not be located within one thousand feet (1000') of the property line of a
   pre-existing public or private school.
   (3) A Nonprofit Cannabis Care Center shall notify The Department within ten (10) days of when a Nonprofit Cannabis
   Care Center Agent ceases to work at the Nonprofit Cannabis Care Center.
   (4) A Nonprofit Cannabis Care Center shall notify The Department in writing of the name, address and date of birth of
   any new Nonprofit Cannabis Care Center Agent and shall submit a fee in an amount established by The Department
   for a new Registry Identification Card before the new Nonprofit Cannabis Care Center Agent begins working at the
   Nonprofit Cannabis Care Center.
   (5) A Nonprofit Cannabis Care Center shall implement appropriate security measures to deter and prevent
   unauthorized entrance into areas containing Cannabis and the theft of Cannabis.
   (6) A Nonprofit Cannabis Care Center must have procedures for the oversight of the Nonprofit Cannabis Care Center
   and procedures to ensure accurate record keeping.
   (7) Each Nonprofit Cannabis Care Center shall keep the following records, dating back at least one ( 1) year:
   (A) Records of the disposal of Cannabis that is not distributed by the Nonprofit Cannabis Care Center to Qualifying
   Patients who have designated the Nonprofit Cannabis Care Center to cultivate for them; and
   (B) A record of each transaction, including the amount of Usable Cannabis dispensed, the amount of compensation,
   and the Registry Identification Card number of the Qualifying Patient or Designated Caregiver.
   (8) Each Nonprofit Cannabis Care Center shall:
   (A) Conduct an initial comprehensive inventory of all Usable Cannabis available for dispensing, Cannabis plants and
   seedlings at each approved location on the date the Nonprofit Cannabis Care Center first dispenses Cannabis; and
   (B) Conduct a monthly comprehensive inventory of all Cannabis, including Usable Cannabis available for dispensing,
   at each approved location.
   (9) A Nonprofit Cannabis Care Center is prohibited from acquiring, possessing, cultivating, preparing, manufacturing,
   delivering, transferring, transporting, supplying or dispensing Cannabis for any purpose except to Assist Qualifying
   Patients with the Medical Use of Cannabis directly or through the Qualifying Patients' Designated Caregiver.
   ( 10) All cultivation of Cannabis must take place in an Enclosed, Locked Facility. 19
   (11) A Nonprofit Cannabis Care Center or a Nonprofit Cannabis Care Center Agent shall not dispense more than two
   and one-half (2 %) ounces of Usable Cannabis to a Qualifying Patient or to a Designated Caregiver on behalf of a
   Qualifying Patient during a fifteen (15) day period. Each time a Nonprofit Cannabis Care Center Agent dispenses
   Usable Cannabis to a Qualifying Patient directly or through the Qualifying Patient's Designated Caregiver, he must
   consult the Nonprofit Cannabis Care Center's records to verify that the records do not indicate that the dispensing of
   Usable Cannabis would cause the Qualifying Patient to receive more Usable Cannabis than is permitted in a fifteen
   (15) day period. Each time Usable Cannabis is dispensed, the Nonprofit Cannabis Care Center Agent shall record the
   date the Usable Cannabis was dispensed and the amount dispensed. All records must be kept according to the
   Registry Identification Card number of the Qualifying Patient and Designated Caregiver, if any.
   (12) The Nonprofit Cannabis Care Center records with Qualifying Patient information shall be treated as a confidential
   medical record.
   Section 111. Registration, certification of Cannabis Testing Labs
   (a) Cannabis Testing Lab registration required. Cannabis Testing Lab shall register with The Department.
   (b) Issuing Cannabis Testing Lab registration certificates. Not later than sixty (60) days after receiving an application
   for a Cannabis Testing Lab, The Department shall register Cannabis Testing Lab and issue a registration certificate
   and a random 10-digit alphanumeric identification number if:
   (1) The prospective Cannabis Testing Lab had submitted the following:
   (A) The application fee;
   (8) An application, including:
   (i) The legal name of the Cannabis Testing Lab;
   (ii) The physical address of the Cannabis Testing Lab of which shall not be within one thousand feet (1000') of a public
   or private school existing before the date of the Cannabis Testing Lab application;
   (iii) The name, address and date of birth of each Cannabis Testing Lab Agent;
   (iv) Written procedures to ensure accurate record-keeping and adequate security measures;
   (v) If the city, town or county in which the Cannabis Testing Lab would be located has enacted zoning restrictions, a
   sworn statement certifying that the Cannabis Testing Lab will operate in compliance with the restrictions; and
   (vi) A sworn statement that none of the Cannabis Testing Lab Agents is under twenty-one (21) years of age;
   (2) None of the owners, board members, or officers has been found guilty or pleaded guilty or nolo contendere in a
   criminal proceeding, regardless of whether or not the adjudication of guilt or sentence is withheld by a court of this
   state, another state, or the federal government for any felony; and
   (3) None of the owners, board members or officers has previously been an owner, board member, or officer of a
   Cannabis Testing Lab that has had its registration certificate revoked.
   (d) Criminal background checks. The Department shall conduct criminal background checks on each prospective
   owner, board member, or officer in order to carry out subdivision 111 (b)(2).
   (e) Allowable conduct. A registered Cannabis Testing Lab under this section may acquire, possess, transfer and
   transport Cannabis. A Cannabis Testing Lab may receive compensation for providing the services allowed by this 20
   section. A Cannabis Testing Lab may possess Cannabis and non-Cannabis parts of the Cannabis plant necessary for
   the testing and labeling of Cannabis
   (g) Cannabis Testing Lab Agent Registry Identification Card. The Department shall issue each Cannabis Testing Lab
   Agent a Registry Identification Card within ten (10) days of receipt of the person's name, address and date of birth
   under subdivision 111 (b)(1 )(B)(iii,) and a fee in an amount established by The Department. Each card must specify
   that the Cardholder is a Cannabis Testing Lab Agent and must contain:
   (1) The name, address and date of birth of the Cannabis Testing Lab Agent;
   (2) The legal name of the Cannabis Testing Lab with which the Cannabis Testing Lab Agent is affiliated;
   (3) A random identification number that is unique to the Card holder;
   (4) The date of issuance and expiration date of the Registry Identification Card; and
   (5) A photograph, if The Department decides to require one.
   (h) Felony exclusion. The Department shall not issue a Registry Identification Card to any Cannabis Testing Lab
   Agent who has been found guilty or pleaded guilty or nolo contendere in a criminal proceeding, regardless of whether
   or not the adjudication of guilt or sentence is withheld by a court of this state, another state, or the federal government
   for any felony. The Department shall conduct a background check of each prospective Cannabis Testing Lab Agent in
   order to carry out this subsection. The Department shall notify the Cannabis Testing Lab Agent in writing of the
   reason for denying the Registry Identification Card.
   (i) Expiration. A Cannabis Testing Lab registration certificate and the Registry Identification Card for each Cannabis
   Testing Lab Agent expire one (1) year after the date of issuance. The Department shall issue renewal Cannabis
   Testing Lab registration certificates and renewal Registry Identification Cards within ten (10) days prior to their
   expiration. A Registry Identification Card of a Cannabis Testing Lab Agent expires upon notification by a Cannabis
   Testing Lab that such person ceases to work at the Cannabis Testing Lab.
   U).) Reasonable inspection and search. Cannabis Testing Labs are highly regulated by the state. A Cannabis Testing
   Lab therefore is subject to reasonable inspection and search by The Department, including of its inventory and
   records. Inspection and search under this subsection shall be conducted during normal business hours and in a
   reasonable manner. This does not preclude use of a search warrant if probable cause to believe a criminal offense
   has occurred on the premises.
   SECTION 112. Immunity for Nonprofit Cannabis Care Centers and Cannabis Testing Labs
   (a) Protections for Nonprofit Cannabis Care Centers and Cannabis Testing Labs. No Nonprofit Cannabis Care Center
   or Cannabis Testing Labs shall be subject to the following:
   (1) Prosecution for the Medical Use of Cannabis in accordance with the provisions of this chapter and any rule
   adopted by The Department pursuant to this chapter;
   (2) Inspection and search, except pursuant to subsection 11 O(a) and subsection 111 U), or upon a search warrant
   issued by a court or judicial officer;
   (3) Seizure of Cannabis, except upon any order issued by a court or judicial officer and with due process of law; or
   (4) Imposition of any penalty or denial of any right or privilege including, but not limited to, imposition of a civil penalty
   or disciplinary action by an occupational or professional licensing board or entity, solely for acting in accordance with 21
   this chapter for a Nonprofit Cannabis Care Center to Assist Qualifying Patients or Designated Caregivers with the
   Medical Use of Cannabis or for a Cannabis Testing Labs to have possession of Cannabis for testing purposes.
   (b) Protections for Nonprofit Cannabis Care Center Agents and Cannabis Testing Lab Agents. No Nonprofit Cannabis
   Care Center Agent or Cannabis Testing Lab Agent shall be subject to arrest, prosecution, search, seizure, or penalty
   in any manner, or denied any right or privilege including, but not limited to, civil penalty or disciplinary action by a
   business, or occupational, or professional licensing board or entity, solely for working for or with a Nonprofit Cannabis
   Care Center or a Cannabis Testing Lab to engage in acts permitted by this chapter.
   SECTION 113. Prohibitions for Nonprofit Cannabis Care Centers and Cannabis Testing Labs
   (a)A Nonprofit Cannabis Care Center shall not dispense, deliver or otherwise transfer Cannabis to a person other than
   a Qualifying Patient who has designated the Nonprofit Cannabis Care Center to cultivate Cannabis for them or to the
   Qualifying Patient's Designated Caregiver, or another Nonprofit Cannabis Care Center, or to a Cannabis Testing Lab
   for testing purposes.
   (b)A Cannabis Testing Lab shall not deliver or otherwise transfer Cannabis to any person other than a Nonprofit
   Cannabis Care Center Agent.
   (b) The Department shall immediately revoke the Registry Identification Card of a Nonprofit Cannabis Care Center
   Agent or Cannabis Testing Agent who is found to have violated subsection 113(a) or subsection 113(b), and such a
   person shall be disqualified from serving as a Nonprofit Cannabis Care Center Agent or Cannabis Testing Lab Agent.
   (c) A person who has been found guilty or pleaded guilty or no/o contendere in a criminal proceeding, regardless of
   whether or not the adjudication of guilt or sentence is withheld by a court of this state, another state, or the federal
   government for any felony shall not be a Nonprofit Cannabis Care Center Agent or a Cannabis Testing Lab Agent.. A
   Nonprofit Cannabis Care Center Agent or Cannabis Testing Lab Agent in violation of this subsection commits a civil
   violation for which a fine of not more than $1,000 may be adjudged and collected by The Department. A Nonprofit
   Cannabis Care Center Agent or a Cannabis Testing Lab Agent in violation of this subsection and who at the time of
   the violation has been previously found to have violated this subsection commits a Class C misdemeanor.
   SECTION 114. Local regulation.
   This chapter does not prohibit a city, incorporated town or county of this state from limiting the number of Nonprofit
   Cannabis Care Centers that may operate in the political subdivision as it sees fit or from enacting reasonable zoning
   regulations applicable to Nonprofit Cannabis Care Centers.
   SECTION 115. Prohibited conduct for Physicians.
   A Physician shall not:
   (a) Accept, solicit, or offer any form of pecuniary remuneration from or to a Nonprofit Cannabis Care Center or other
   provider of Cannabis.
   (b) Offer a discount or other thing of value to a Qualifying Patient who uses or agrees to use a particular Nonprofit
   Cannabis Care Center.
   (c) Examine a patient for purposes of diagnosing a Qualifying Medical Condition at a location where Cannabis is sold
   or distributed.
   (d) Hold an economic interest in a Nonprofit Cannabis Care Center if the Physician certifies the Qualifying Medical
   Condition of a patient for participation in the medical Cannabis program. 22
   SECTION 116. Enforcement
   (a) Department failure to adopt rules. If The Department fails to adopt rules to implement this chapter within the time
   prescribed, any Arkansas citizen may commence a mandamus action in Pulaski County Circuit Court to compel The
   Department to perform the actions mandated pursuant to the provisions of this chapter.
   (b) Department failure to issue a valid Registry Identification Card or Hardship Cultivation Certificate. If The
   Department fails to issue a valid Registry Identification Card or Hardship Cultivation Certificate in response to a valid
   application or renewal submitted pursuant to this chapter within forty-five (45) days of its submission, the Registry
   Identification Card or Hardship Cultivation Certificate is deemed granted, and a copy of the application or renewal is
   deemed a valid Registry Identification Card or Hardship Cultivation Certificate.
   (c) Department failure to accept or process applications for Registry Identification Cards. If at any time after the
   effective date of this chapter, allowing time for adoption of rules, The Department has failed to accept or process
   applications in a reasonable timely manner under subsection 1 OS(c), a notarized statement by a Qualifying Patient
   containing the information required in an application, pursuant to subsection 1 OS( a), is deemed a valid Registry
   Identification Card.
   (d) Department failure to accept or process applications for Hardship Cultivation Certificates. If at any time after the
   effective date of this chapter, allowing time for adoption of rules, The Department has failed to accept or process
   applications in a reasonable timely manner under subsection 106(b), for Hardship Cultivation Certificates, a notarized
   statement by a Qualifying Patient containing the information required in an application, pursuant to section 106(a), is
   deemed a valid Hardship Cultivation Certificate.
   SECTION 117. Taxation and distribution of proceeds.
   (a) The sale of Cannabis under this chapter is subject to all state and local taxes.
   (b) No special taxes will be added to the sale of medical cannabis
   (c) The state sales tax revenues received by the Department of Finance and Administration from the sale of Cannabis
   under this chapter shall be distributed as special revenue to The Department to cover the cost of administering this
   chapter. Any remaining revenue shall be allocated as special revenues and shall be used to provide Usable Cannabis
   on the sliding scale to Qualifying patients determined to be eligible pursuant to subdivision 104(h)(1).
   SECTION 118. No implied repeal.
   By adoption of this Act, there is no implied repeal of the existing Arkansas laws criminalizing possession of Cannabis
   for purposes not specified in this Act. This Act also acknowledges that Cannabis use, possession, and distribution for
   any purpose remain illegal under federal law. Nothing in this Act requires the violation of federal law or purports to give
   immunity under federal law.
   SECTION 119. Severability
   If any provision or section of this Act or the application thereof to any person or circumstance is held invalid, such
   invalidity shall not affect any other provisions or application of the Act which can be given effect without the invalid
   provisions or applications, and to this end the provisions of the Act are declared to be severable.