Cannabis Legalization and Regulation in Arkansas
Arkansas has not legalized adult-use cannabis. Recreational possession, sale, and cultivation remain illegal under state law. Possession of small amounts carries criminal penalties, though efforts to pass adult-use legalization via ballot initiatives have been attempted and failed, most recently in 2022.
Medical cannabis was legalized in 2016 through Amendment 98, known as the Arkansas Medical Marijuana Amendment. Registered patients with qualifying conditions may purchase up to 2.5 ounces of cannabis every 14 days from licensed dispensaries. Home cultivation is not permitted. Approved products include flower, concentrates, tinctures, topicals, edibles, and capsules.
The Arkansas Department of Health oversees patient registration, while the Alcoholic Beverage Control Division and the Medical Marijuana Commission regulate cultivation facilities, processors, dispensaries, and testing labs. The program is vertically integrated with a limited number of licensed operators, creating a tightly controlled market.
Hemp cultivation and hemp-derived CBD products are legal in Arkansas if they contain no more than 0.3% THC. Intoxicating hemp cannabinoids such as delta-8 THC are restricted and fall under cannabis program rules when intended for human consumption. All products must comply with state requirements for testing, packaging, and labeling.
For cannabis operators, Arkansas represents a limited but established medical market with significant compliance requirements. Banks and financial service providers require thorough documentation, including license verification, tax IDs, ownership disclosures, operating agreements, and financial statements. Because cannabis remains largely cash-based, secure armored transport, reconciled deposits, AML/BSA monitoring, and audit-ready accounting are required. Excise and sales tax compliance is closely monitored, making accurate reporting essential for financial stability and banking access.
The Arkansas Department of Health and the state’s Medical Marijuana Commission oversee regulation of the medical cannabis program. For official program details, licensing resources, and compliance updates, visit: https://www.healthy.arkansas.gov/programs-services/topics/medical-marijuana
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