Why did the Arkansas AG reject the 2018 cannabis constitutional amendment that would have repealed and replaced Amendment 98?

Plain-English summary

John W. Hall Jr. submitted a 2018 constitutional amendment titled "Arkansas Cannabis Adult and Medical Use and Regulation Amendment." Unlike the other 2018 cannabis proposals, Hall's amendment would have explicitly repealed Amendment 98 (the Arkansas Medical Marijuana Amendment of 2016) and replaced it with a new framework. The amendment also invoked the Tenth Amendment to the U.S. Constitution as the asserted source of authority for legalizing cannabis under state and local law despite federal prohibition.

AG Leslie Rutledge rejected the popular name and ballot title for failure to sufficiently summarize the substance of the proposed amendment and describe the changes the proposal would make to existing state law. The same Bradley v. Hall principle the AG applied throughout the 2018 cannabis cluster controlled here: voters need to understand from the title alone what they are choosing between (existing law, including Amendment 98) and what they would replace it with.

This proposal did not qualify for the November 2018 ballot.

Currency note

This opinion was issued in 2018. 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.

Federal cannabis classification, the Arkansas Medical Marijuana Amendment 98's implementing rules, and the AG's ballot-title review standards have all evolved since 2018. Anyone working on a current Arkansas cannabis initiative or assessing existing rights under Amendment 98 should consult current law.

Common questions

What is Amendment 98 and why is repealing it a big deal?

Amendment 98 to the Arkansas Constitution, approved by Arkansas voters in 2016, established the Arkansas Medical Marijuana Amendment (AMMA). It set up a state-administered medical marijuana program with specific protections for qualifying patients and their caregivers, license categories for cultivators and dispensaries, and limits on how the General Assembly can amend the program. Repealing Amendment 98 would unwind all of that. Voters considering Hall's proposal needed to understand they were not just voting on recreational legalization, they were also voting to repeal the existing medical marijuana program in favor of a new one.

Why does the Tenth Amendment reference matter?

Because under federal law (the Controlled Substances Act), cannabis remains a Schedule I controlled substance. Hall's proposal asserted that the people of Arkansas could legalize cannabis under their reserved Tenth Amendment powers despite federal prohibition. That is a contestable legal claim and not a question the AG resolves at the ballot-title stage. But the AG noted the federal preemption issue exists, and a clean ballot title would have to summarize the proposal's stance on it.

What replaced Amendment 98 in Hall's proposal?

A "simplified method of acquiring medical cannabis for a greater number of qualifying conditions at a reduced tax rate and at any dispensary." Patients with medical cannabis cards would purchase at the same tax rate as pharmaceutical drugs, and minors with at least one qualifying condition (and parental consent) could also access it. The AG's complaint was that the ballot title did not give voters a clear picture of these changes against the baseline of existing Amendment 98.

Did this proposal make it to the 2018 ballot?

No. Like the other 2018 cannabis amendments (Reed's 2018-051, Berry's 2018-046), Hall's amendment did not qualify for the November 2018 ballot. The 2018 cycle saw multiple competing cannabis proposals in Arkansas and none cleared the AG and signature thresholds.

Could a future Arkansas amendment legitimately repeal Amendment 98?

Yes, in principle. Arkansas voters can amend their own constitution. But a sponsor proposing a repeal-and-replace would have to draft both the repeal and the replacement clearly, and the ballot title would have to disclose that fundamental change. That is the basic message of this rejection.

Background and statutory framework

The standard the AG applied is the Arkansas Supreme Court's longstanding rule that voters need to understand the proposal's effect on existing law. Bradley v. Hall, 220 Ark. 925, 251 S.W.2d 470 (1952), is the foundational case: the voter is making a choice between retaining existing law and substituting something new, and the ballot title must describe the choice clearly.

Where the new measure repeals or significantly amends an existing constitutional provision (Amendment 98 here), the obligation to describe the change is sharper, not weaker.

Citations

• Ark. Code Ann. § 7-9-107 (Supp. 2017)
• Ark. Const., amend. 98 (Arkansas Medical Marijuana Amendment, 2016)
• U.S. Const., amend. X (Tenth Amendment, invoked by the proposal)
• Bailey v. McCuen, 318 Ark. 277, 884 S.W.2d 938 (1994)
• Roberts v. Priest, 341 Ark. 813, 20 S.W.3d 376 (2000)
• Bradley v. Hall, 220 Ark. 925, 251 S.W.2d 470 (1952)

Source

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

Original opinion text

Opinion No. 2018-047
May 4, 2018
Mr. John W. Hall Jr.
Attorney at Law
1202 Main Street, Suite 210
Little Rock, AR 72202
Dear Mr. Hall:
STATE OF ARKANSAS
ATTORN EY GENERAL
LESLI E RUTLEDGE
I am writing in response to your request for certification, pursuant to Ark. Code
Ann. § 7-9-107 (Supp. 2017), of the popular name and ballot title for a proposed
initiated measure.
At the outset, I wish to make clear to you that the decision to certify or reject
a popular name and ballot title is in no way a reflection of my view of the
merits of a particular proposal. I am not authorized to, and do not, consider
the merits of the measure when making a decision to certify or reject.
Arkansas Code Annotated § 7-9-107 authorizes my office to 1) certify the popular
name and ballot title of a proposed measure, 2) substitute and certify the popular
name and ballot title, if practicable, or 3) reject the entire submission if "the ballot
title, or the nature of the issue, is presented in such manner that the ballot title
would be misleading" to voters. 1 The purpose of my review under section 7-9-107
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 In this way, voters will
have a fair understanding of the issues presented by referenced to the ballot title
alone.3
1 Ark. Code Ann.§ 7-9-107(c) (Supp. 2017).
2 See Arkansas Women's Political Caucus v. Riviere, 283 Ark. 463, 466, 677 S.W.2d 846, 848
(I 948).
3 Becker v. Riviere, 270 Ark. 2 I 9, 226, 604 S.W.2d 555, 558 (1980) (internal citations omitted).
323 CENTEl1. STREET. SU ITE 200 · LITTLE ROCK. ARKANSAS 72201
TELEPHONE (501) 682-2007 · FAX (501) 682-8084
ARKANSASAG.GOV Mr. John W. Hall Jr., Esq.
Opinion No. 2018-047
Page 2
Section 7-9-107 neither requires nor authorizes this office to make legal
determinations concerning the merits of the proposed 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,"4 this office will not require that a measure's proponents
acknowledge in the ballot title any possible constitutional infirmities.5
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 proposal.
REQUEST
You have requested certification, pursuant to Ark. Code Ann. § 7-9-107, of
the following popular name and ballot title for a proposed constitutional
amendment:
Popular Name
Arkansas Cannabis Adult and Medical Use and Regulation Amendment
Ballot Title
A constitutional amendment:
To make possession and growth of cannabis (marijuana) for personal
use by adults legal under state and local law, despite the statutory
prohibition in federal law, because this amendment is implemented
by the People of Arkansas under the Tenth Amendment to the U.S.
Constitution.
To repeal Amendment 98 of [sic] the Arkansas Constitution, the
Arkansas Medical Marijuana Amendment of 2016. It replaces
Amendment 98 with a simplified method of acquiring medical
4 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); Plugge v. McCuen, 310 Ark. 654, 841S.W.2d139
(1992).
5 As part of my review, however, I may address constitutional concerns for consideration by the
measure's proponents. Mr. John W. Hall Jr., Esq.
Opinion No. 2018-047
Page 3
cannabis for a greater number of qualifying conditions at a reduced
tax rate and at any dispensary.
It allows patients with a medical cannabis card with a qualifying
condition to purchase cannabis at the same tax rate as
pharmaceutical drugs and to allow minors with at least one qualify
[sic] condition with a medical cannabis card the right to use cannabis
and to assign a designated caregiver to purchase and administer the
cannabis to the minor.
To allow the sale of cannabis (marijuana) to adults (persons 21 years
of age or older) for personal use; to allow the personal and
commercial cultivation, possession, and use of cannabis by adults; to
permit the taxation of revenue derived from commercial cannabis
facilities; to permit the promulgation of administrative rules and
regulations for commercial sales and production and personal
possession and production through the Alcohol Beverage Control
Division of the Department of Finance and Administration; and to
prescribe certain penalties for violations of this amendment.
To allow adults [sic] possession of up to four ounces of cannabis in
one's own home or on their person for personal use as a state
constitutional right as long as minors (those under 21) do not possess
or have access to it.
To allow up to six mature plants and six seedlings (no higher or
wider than 12 inches) to be grown for personal use and to allow
licensed dispensaries to grow up to 200 mature plants (any size) and
200 seedlings (no higher or wider than 12 inches), subject to
increase depending on market supply and demand.
Cultivation facilities and dispensaries holding medical marijuana
licenses under Amendment 98 are grandfathered in, and they may
continue to provide cannabis to adults until the ABC has received,
processed, and issued licenses for adult use facilities, but must
continue to serve patients that are in possession of a medical
cannabis card with the same product and price structure that was
available prior to implementing adult use sales. Mr. John W. Hall Jr., Esq.
Opinion No. 2018-047
Page 4
Individuals may petition to initiate a local ordinance to provide for
the number of cannabis establishments allowed within a
municipality or county or to completely prohibit cannabis
establishments within a municipality or county. Such ordinance
shall be submitted to the electors of the municipality or county at the
next regular biennial election when a petition is signed by qualified
electors in the municipality in [sic] a number of signatures equal to
the percentage required for a local option or repeal of local option
election. (That is currently 3 8% of the votes cast for chief executive
or circuit clerk by qualified electors in the municipality at the last
preceding general election. If the percentage changes by the General
Assembly, the percentage for cannabis local option [sic] be the same
as for alcohol local option. That change, however, must occur no
less than one year before an election.)
To proscribe limits and penalties for driving or boating under the
influence of cannabis.
To require the Arkansas Alcohol Beverage Control Division to
develop and publish rules and regulations for all cannabis businesses
and to issue licenses to all cannabis establishments and allow
municipalities to act if the ABC does not.
To promote the benefits of medical cannabis to combat opiod [sic]
and other drug abuse.
To eradicate the illicit market in cannabis.
To promote tourism.
To distribute state sales tax for the sale of cannabis as follows: 40%
for public education, pre-K-12; 15% for maintenance and repairs to
roads and bridges; 15% for the implementation, administration, and
enforcement of this amendment; 10% for drug rehabilitation efforts
by grants or direct state expenditures; 10% for salaries and support
of prosecutors; and 10% for salaries and support of public defenders.
To seal the records of all those convicted at any time of
misdemeanor possession of cannabis, if not already sealed, and
without fee. Mr. John W. Hall Jr., Esq.
Opinion No. 2018-047
Page 5
To release those incarcerated in Arkansas prisons or jails, if any, for
cannabis charges of possession of 16 ounces or less or possession or
cultivation of six or less cannabis plants, and to seal their records,
and to seal the records of any persons who have served their
sentence [sic] and been released for charges of possession of 16
ounces or less or possession or cultivation of six or less plants.
This Amendment shall be broadly construed to accomplish its intent,
and, where possible, it is self-executing.
RESPONSE
My statutory duty is to certify, substitute and certify, or reject the entire proposal
submitted. Your submission has a fundamental flaw that requires me to reject the
ballot title, popular name, and proposed measure as drafted. Your proposed ballot
title is wholly inadequate, in my view, to fairly and adequately summarize the
substance of your proposed constitutional amendment.6 But more importantly, I
believe the length and complexity of your proposed amendment preclude the
crafting of a ballot title that will satisfy the rigorous standards that section 7-9-107
obligates my office to verify.
DISCUSSION
The Court has acknowledged that the Arkansas Constitution "does not specify a
limit on the length of a proposal.. .. "7 But the Court has also noted a "practical
constraint" in this regard:
6 According to the Court, a ballot title will not be legally sufficient unless it "adequately
inform[s]" the voters of the contents of a proposed amendment or act so that they can make a
"reasoned decision in the voting booth." Lange v. Martin, 2016 Ark. 337, 500 S.W.3d 154, at n.

2. The title must be "free of any misleading tendency whether by amplification, omission, or
   fallacy, and it must not be tinged with partisan coloring." Bailey v. McCuen, 318 Ark. 277, 284,
   884 S.W.2d 938, 942 (1994). Language "tinged with partisan coloring" has been identified by
   the Arkansas Supreme Court as language that "creates a fatally misleading tendency" (Crochet v.
   Priest, 326 Ark. 338, 347, 931 S.W.2d 128, 133 (1996)) or that "gives the voter only the
   impression that the proponents of the proposed amendment wish to convey of the activity
   represented by the words." Christian Civic Action Committee v. McCuen, 318 Ark. 241, 249, 884
   S.W.2d 605, 610 (1994).
   7 Walker. v. Priest, 342 Ark. 410, 417, 29 S.W.3d 657, 659 (2000) (citing Amendment 7, which is
   currently codified as Ark. Const. art. 5, § 1). Mr. John W. Hall Jr., Esq.
   Opinion No. 2018-047
   Page 6
   [T]here is in effect a practical constraint on the length of both a
   proposed amendment and its ballot title that stems from the
   requirements that a ballot title convey the scope and import of the
   proposal while also imparting a fair description of the proposal to
   allow voters to vote intelligently in the limited time allotted them in
   a voting booth. 8
   The Court has pronounced that "[a] proposed measure must be of a size capable of
   having a ballot title which will not only convey the scope and import of the
   measure, but also impart a description of the proposal so voters can cast their votes
   intelligently and with a fair understanding on the issue."9 This has led the Court to
   observe that a sponsor's "choice or insistence in covering [the subject matter] in so
   much detail can be said to have sounded the proposal's own death knell."10 The
   Court further explained that a proposal may be "so all-encompassing that to
   include every important factor of the proposal in the ballot title would cause the
   ballot title to be so complex, detailed and lengthy that the Arkansas voter could
   not intelligently make a choice on the title within the five minutes allowed in the
   voting booth." 11
   In my judgment, your proposed twenty-seven-page constitutional amendment is so
   expansive that its scope and import cannot, as a practical matter, be conveyed to
   the voter in a ballot title that will satisfy the Court's test for ballot title sufficiency.
   Its subject matter includes the regulation and licensing of the "adult use" of
   marijuana; the "medical" use of marijuana (including the repeal, but continued
   efficacy in some respects, of Amendment 98 to the Arkansas Constitution); the
   authorization and prohibition of various specific acts in relation to both categories
   of marijuana use; actions relating to industrial hemp; local licensing and regulation
   of certain marijuana-related entities; and taxation and penalties in connection with
   marijuana-related activities, among other matters. It is detailed to an extent that I
   do not believe a sufficient ballot title can be crafted.
   In sum, the ballot title you have submitted fails to sufficiently summarize the
   substance of your proposed constitutional amendment and describe changes the
   8 Crochet, 326 Ark. at 343-44, 931 S.W.2d at 130-31.
   9 Id.
   '0 Page v. McCuen, 318 Ark. 342, 347, 884 S.W.2d 951, 954 (1994).
   11 Id. (citations omitted) (concluding that the proposal's text was "so expansive that it precludes
   the writing of an acceptable ballot title."). Mr. John W. Hall Jr., Esq.
   Opinion No. 2018-047
   Page 7
   proposal would make in existing state law. But this failure cannot be rectified, in
   my opinion. I believe this is a case where the text, in the words of the Court,
   "precludes the writing of an acceptable ballot title."12 Because the voters have a
   limited amount of time to spend in the voting booth, they cannot practically be
   expected to read and comprehend a ballot title of the complexity, detail, and length
   that would be necessary in this case to meet the criteria established by section 7-9-
   107 and the Court.
   CONCLUSION
   My office is not charged with any role in drafting initiated amendments or acts.
   Nor can I advise individual sponsors, who must vet their proposed measures,
   popular names, and ballot titles to ensure they meet the criteria established by
   section 7-9-107 and the Arkansas Supreme Court. Your submission falls short of
   these criteria. I must therefore reject your ballot title, popular name, and proposed
   measure.
   Sincerely,
   -==-.;;;::> ~. //~k
   ~-- ,Y
   LESLIE RUTLEDGE
   Attorney General
   Enclosure
   i2 Id. Name of Initiative Amendment:
   ARKANSAS CANNABIS ADULT AND MEDICAL USE AND
   REGULATION AMENDMENT
   Ballot Title:
   A constitutional amendment:
   To make possession and growth of cannabis (marijuana) for personal use by adults legal
   under state and local law, despite the statutory prohibition in federal law, because this
   amendment is implemented by the People of Arkansas under the Tenth Amendment to the U.S.
   Constitution.
   To repeal Amendment 98 of the Arkansas Constitution, the Arkansas Medical Marijuana
   Amendment of2016. It replaces Amendment 98 with a simplified method of acquiring medical
   cannabis for a greater number of qualifying conditions at a reduced tax rate and at any
   dispensary.
   It allows patients with a medical cannabis card with a qualifying condition to purchase
   cannabis at the same tax rate as pharmaceutical drugs and to allow minors with at least one
   qualify condition with a medical cannabis card the right to use cannabis and to assign a
   designated caregiver to purchase and administer the cannabis to the minor.
   To allow the sale of cannabis (marijuana) to adults (persons 21 years of age or older) for
   personal use; to allow the personal and commercial cultivation, possession, and use of cannabis
   by adults; to permit the taxation of revenue derived from commercial cannabis facilities; to
   permit the promulgation of administrative rules and regulations for commercial sales and
   production and personal possession and production through the Alcohol Beverage Control
   Division of the Department of Finance and Administration; and to prescribe certain penalties for
   violations of this amendment.
   To allow adults possession of up to four ounces of cannabis in one's own home or on
   their person for personal use as a state constitutional right as long as minors (those under 21) do
   not possess or have access to it.
   1 To allow up to six mature plants and six seedlings (no higher or wider than 12 inches) to
   be grown for personal use and to allow licensed dispensaries to grow up to 200 mature plants
   (any size) and 200 seedlings (no higher or wider than 12 inches), subject to increase depending
   on market supply and demand.
   Cultivation facilities and dispensaries holding medical marijuana licenses under
   Amendment 98 are grandfathered in, and they may continue to provide cannabis to adults until
   the ABC has received, processed, and issued licenses for adult use facilities, but must continue to
   serve patients that are in possession of a medical cannabis card with the same product and price
   structure that was available prior to implementing adult use sales.
   Individuals may petition to initiate a local ordinance to provide for the number of
   cannabis establishments allowed within a municipality or county or to completely prohibit
   cannabis establishments within a municipality or county. Such ordinance shall be submitted to
   the electors of the municipality or county at the next regular biennial election when a petition is
   signed by qualified electors in the municipality in a number of signatures equal to the percentage
   required for a local option or repeal oflocal option election. (That is currently 38% of the votes
   cast for chief executive or circuit clerk by qualified electors in the municipality at the last
   preceding general election. If the percentage changes by the General Assembly, the percentage
   for cannabis local option be the same as for alcohol local option. That change, however, must
   occur no less than one year before an election.)
   To proscribe limits and penalties for driving or boating under the influence of cannabis.
   To require the Arkansas Alcohol Beverage Control Division to develop and publish rules
   and regulations for all cannabis businesses and to issue licenses to all cannabis establishments
   and allow municipalities to act if the ABC does not.
   To promote the benefits of medical cannabis to combat opiod and other drug abuse.
   To eradicate the illicit market in cannabis.
   To promote tourism.
   To distribute state sales tax for the sale of cannabis as follows: 40% for public education,
   pre-K-12; 15% for maintenance and repairs to roads and bridges; 15% for the implementation,
   administration, and enforcement of this amendment; 10% for drug rehabilitation efforts by grants
   or direct state expenditures; 10% for salaries and support of prosecutors; and 10% for salaries
   and support of public defenders.
   2 To seal the records of all those convicted at any time of misdemeanor possession of
   cannabis, if not already sealed, and without fee.
   To release those incarcerated in Arkansas prisons or jails, if any, for cannabis charges of
   possession of 16 ounces or less or possession or cultivation of six or less cannabis plants, and to
   seal their records, and to seal the records of any persons who have served their sentence and been
   released for charges of possession of 16 ounces or less or possession or cultivation of six or less
   plants.
   This Amendment shall be broadly construed to accomplish its intent, and, where possible,
   it is self-executing.
   Table of Contents:
   Section 1. Title
   Section 2. Purpose
   Section 3. Definitions
   Section 4. Cannabis adult use licensing and regulation by ABC and ADH and recognized
   medical conditions
   Section 5. Rules and regulations of the ABC and ADH for cannabis regulation and
   judicial review
   Section 6. Licensing
   Section 7. Acts permitted and not permitted by cannabis establishments, processors, and
   transporters
   Section 8. Laws not affected by this Amendment
   Section 9. Actions not unlawful under this Amendment
   Section 10. Local control of cannabis establishments
   Section 11. Taxation consumers and of cannabis establishments
   Section 12. Cannabis regulation fund
   Section 13. Penalties
   Section 14. Prior convictions for those in possession of 16 ounces or less
   Section 15. Enforceability of contracts
   Section 16. Reciprocity
   Section 17. Construction
   3 Section 18. Changes to this Amendment
   Section 19. Amendment 98 repealed
   Section 20. Effective date
   The People of the State of Arkansas enact:
   Section 1. Title
   This Amendment shall be known and may be cited as the Arkansas Cannabis Adult and
   Medical Use and Regulation Amendment.
   Section 2. Purpose
   (a) The purpose of this Amendment is to make possession and growth of cannabis
   (marijuana) for personal or medical use by adults legal under state and local law, despite the
   statutory prohibition in federal law because this Amendment is implemented by the People of
   Arkansas under the Tenth Amendment to the U.S. Constitution, and to control the commercial
   production and distribution of cannabis under a system that licenses, regulates, and taxes the
   businesses involved.
   (b) The intent is to prevent arrest and criminal penalty for personal possession and
   cultivation of cannabis by adults 21 years of age or older under Arkansas law, recognizing that
   federal law still criminalizes cannabis use and possession; to remove from the illicit market the
   commercial production and distribution of cannabis; to prevent revenue generated from
   commerce in cannabis from going to criminal enterprises or gangs; to prevent the distribution of
   cannabis to persons under 21 years of age, unless they hold a medical cannabis card; to prevent
   the diversion of cannabis to illicit markets; to ensure the safety of cannabis and cannabis-infused
   products; and to ensure the security of cannabis establishments.
   ( c) The intent is to enable all Arkansas prisoners convicted of a crime of possession
   of 16 ounces or less of cannabis or six or less cannabis plants, to be released from incarceration,
   unpaid monetary penalty, or probationary monitoring, and sealing their record, and to seal any
   records of those previously arrested, indicted, or convicted of 16 ounces or less of possession of
   cannabis or cultivation of six cannabis plants.
   4 (d) By repealing Amendment 98 in§ 19, this Amendment eliminates the Medical
   Marijuana Commission under Amendment 98, but (1) any licensed entity (dispensary, cultivator,
   transporter, anything) is grandfathered in and can continue to operate under the auspices of the
   ABC pending their adoption of rules, (2) applications submitted to the Medical Marijuana
   Commission are still valid and shall be considered by the ABC, and (3) patient cardholders
   continue to be able to purchase cannabis paying the same rate of taxes as any pharmaceutical
   medication from any dispensary.
   Section 3. Definitions
   (a) "ABC" means the Alcohol Beverage Control division of the Department of
   Finance and Administration.
   (b) "ADH" means the Arkansas Department of Health.
   (c) "Cannabis" means all parts of the plant of the genus cannabis, 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, or its seeds or resin, including
   cannabis concentrate and cannabis-infused products. For purposes of this Amendment, cannabis
   does not include:
   (1) the mature stalks of the plant; fiber produced from the stalks; 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 those stalks,
   fiber, oil, or cake; or any sterilized seed of the plant that is incapable of germination;
   industrial hemp; or
   (2) any other ingredient combined with cannabis to prepare topical or oral
   administrations, food, beverages, or other products.
   ( d) "Cannabis accessories" means any equipment, paraphernalia, product, material, or
   combination of equipment, products, or materials that are specifically designed for use in
   planting, propagating, cultivating, growing, harvesting, manufacturing, compounding,
   converting, producing, processing, preparing, testing, analyzing, packaging, repackaging,
   storing, containing, ingesting, inhaling, or otherwise introducing cannabis into the human body.
   ( e) "Cannabis concentrate" means the resin extracted from any part of the plant of the
   genus cannabis.
   5 (f) "Cannabis cultivation facility" means a person licensed to cultivate cannabis and
   sell or otherwise transfer cannabis to cannabis dispensaries, cannabis processors, or cannabis
   testing facilities.
   (g) "Cannabis dispensary" means a person licensed to cultivate up to 200 mature
   cannabis plants and 200 cannabis seedlings (no higher or wider than 12 inches), obtain cannabis
   from cannabis establishments, and to sell or otherwise transfer cannabis to cannabis processors
   or individuals who are 21 years of age or older.
   (h) "Cannabis establishment" means a cannabis cultivation center, cannabis testing
   facility, cannabis processor, cannabis dispensary, cannabis secure transporter, or any other type
   of cannabis-related business licensed by the ABC.
   (i) "Cannabis grower" means a cannabis cultivation facility or cannabis dispensary
   that grows cannabis.
   (j) "Cannabis-infused product" means a topical formulation, tincture, beverage,
   edible substance, or similar product containing cannabis and other ingredients and that is
   intended for human consumption.
   (k) "Cannabis processor" means a person licensed to obtain cannabis from cannabis
   establishments, process and package cannabis, and sell or otherwise transfer cannabis to cannabis
   establishments.
   (l) "Cannabis secure transporter" means a person licensed to obtain cannabis from
   cannabis establishments in order to transport cannabis to cannabis establishments.
   (m) "Cannabis testing facility" means a person licensed to test cannabis, including
   certification for potency and the presence of contaminants.
   (n) "Cultivate" means to propagate, breed, grow, harvest, dry, cure, or separate parts
   of the cannabis plant by manual or mechanical means.
   (o) "Licensee" means a person holding a state license.
   (p) "Municipal license" means a license issued by a municipality pursuant to this
   Amendment that allows a person to operate a cannabis establishment in that municipality.
   (q) "Municipality" means a city, township, or county.
   (r) "Person" means an individual, corporation, limited liability company, partnership
   of any type, trust, or other legal entity.
   6 (s) "Process" or "processing" means to separate or otherwise prepare parts of the
   cannabis plant and to compound, blend, extract, infuse, or otherwise make or prepare cannabis
   concentrate or cannabis-infused products.
   (t) "State license" means a license issued by the ABC that allows a person to operate
   a cannabis establishment.
   (u) "Under the influence" means THCAl of 15 ng/ml or more. The State, through the
   AHD, shall follow same testing levels as required by the U.S. Department of Transportation of
   commercial vehicle operators: An initial test must show THCAl of 50 ng/ml or more and a
   mandatory confirmatory test must show THCA 1 of 15 ng/ml or more to be under the influence.
   If the US DOT standard changes, state law may change to be the same for consistency, as the
   ADH chooses, by adoption of a regulation and publication of different standard than this one.
   (v) "Unreasonably impracticable" means that the measures necessary to comply with
   the rules or ordinances adopted pursuant to this Amendment subject licensees to unreasonable
   risk or require such a high investment of money, time, or any other resource or asset that a
   reasonably prudent businessperson would not operate the cannabis establishment.
   Section 4. Cannabis adult use licensing and regulation by ABC and ADH and recognized
   medical conditions
   (a) ABC:
   (1) The regulation and licensing of the adult use of cannabis is delegated to
   the ABC, and it cannot be restricted or eliminated except as provided.
   (2) The ABC is responsible for implementing most of this Amendment and
   has the powers and duties necessary to reasonably control the commercial and medical
   production and distribution of cannabis.
   (3) The ABC may contract with advisors and consultants as necessary to
   adequately perform its duties.
   (4) The ABC may limit the number of cannabis dispensary licenses to no less
   than the same formula used for liquor sale licenses and liquor or beer by the drink.
   Cannabis cultivation facility licenses are limited to no less than one cannabis cultivation
   facility license per twenty cannabis dispensaries.
   (5) Responsibilities of the ABC must include:
   7 (A) Promulgating rules and regulations pursuant to this Amendment
   that are necessary to implement, administer, and enforce this Amendment under §
   5.
   (B) Granting or denying each application for licensure and
   investigating each applicant to determine eligibility for licensure, including
   conducting a background investigation on each person holding an ownership
   interest in the applicant, and the ABC can retain consultants and other experts for
   licensure and use the Arkansas State Police for initial background investigations if
   necessary.
   (C) Enforcement to ensure compliance with this Amendment and the
   rules promulgated hereunder. The ABC shall perform investigations of
   compliance and regular inspections of cannabis establishments and take
   appropriate disciplinary action against a licensee, including collecting civil
   penalties for violations of this Amendment or rules, and suspending, restricting, or
   revoking a state license; depositing all fees collected in the cannabis regulation
   fund established by this Amendment, and submitting an annual report to the
   Governor covering the previous year, which report shall include a description of
   enforcement and disciplinary actions taken against licensees, and a statement of
   ABC's revenues and expenses related to enforcement of this Amendment, and the
   number of state licenses of each class issued, demographic information on
   licensees, and a statement of revenues and expenses of the ABC related to the
   implementation, administration, and enforcement of this Amendment.
   (D) Failure of ABC to timely license dispensaries shall have the
   following effect:
   (i) If the ABC does not timely promulgate rules or accept or
   process applications in accordance with this Amendment, beginning six
   months after the effective date of this Amendment, an applicant may
   submit an application for a cannabis establishment directly to the chief
   executive's office of the municipality where the cannabis establishment
   will be located.
   8 (b) (1)
   (ii) If a cannabis establishment submits an application to a
   municipality under this section, the municipality shall issue a municipal
   license to the applicant within 60 days of receipt of the application unless
   the municipality finds and notifies the applicant that the applicant is not in
   compliance with an ordinance or rule adopted pursuant to this
   Amendment.
   (iii) If a municipality issues a municipal license pursuant to this
   section: the municipality shall notify the ABC that the municipal license
   has been issued; the municipal license has the same force and effect as a
   state license; and the holder of the municipal license is not subject to
   regulation or enforcement by the ABC during the municipal license term,
   but is instead subject to regulation and enforcement by the local legislative
   body (council or quorum court or their delegatee) and the local police
   agency with jurisdiction instead of the ABC.
   (iv) A municipality cannot otherwise deny a license except
   under provided by local option provided for in this Amendment.
   The ADH shall establish rules and regulations to issue medical cannabis
   patient cards on a recommendation from an MD, APRN, or DO and cards are good for
   one year subject to renewal, unless condition is considered chronic, then license would be
   good for five years. One year license will be a maximum of $10, five year license will be
   a maximum of$25.
   (2) Minors will be required to have a designated caregiver to purchase and
   administer cannabis to minor.
   (2) Qualifying conditions:
   (A) Specific medical conditions for medical cannabis patient cards are
   as follows: Adiposis Dolorosa (Dercum's Disease); Alzheimer's Disease or the
   agitation thereof; Amyotrophic Lateral Sclerosis (ALS); Anorexia; Amold-Chiari
   Malformation; Arthritis; Asthma; 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);
   9 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.
   (B) 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 months; severe nausea; seizures, including those characteristic of Epilepsy;
   or severe and persistent muscle spasms, including those characteristic of Multiple
   Sclerosis.
   (C) Any other medical condition or its treatment approved by ADH in
   its rulemaking power. A person who is aggrieved by the ADH's refusal to
   recognize a medical condition has a right of judicial review that the ADH
   arbitrarily refused to recognize that condition.
   Section 5. Rules and regulations of the ABC and AHD
   (a) ABC:
   (1) In accord with the Administrative Procedure Act, the ABC shall
   promulgate reasonable rules to implement and administer this Amendment including:
   (A) Procedures for issuing a state license will be comparable to those
   of liquor stores for dispensaries and liquor distributors for cultivators. To the
   10 extent possible, however, the ABC should be governed by the philosophy that the
   free market should ultimately control in considering granting licenses under this
   Amendment.
   (B) A schedule of reasonable fees in amounts not more than necessary
   to pay for implementation, administration, and enforcement costs of this
   Amendment and on a sliding scale relative to the size of each licensee or the
   volume of business conducted by the licensee.
   (C) Qualifications for licensure that are directly and demonstrably
   related to the operation of a cannabis establishment, provided that a prior
   conviction solely for a cannabis-related offense does not disqualify an individual
   or otherwise affect eligibility for licensure, unless the offense involved
   distribution of a controlled substance to a minor.
   (D) Requirements and standards for safe cultivation, processing, and
   distribution of cannabis by cannabis establishments, including health standards to
   ensure the safe preparation of cannabis-infused products and prohibitions on
   pesticides that are not safe for use on cannabis.
   (E) Testing, packaging, and labeling standards, procedures, and
   requirements for cannabis, including a maximum tetrahydrocannabinol level for
   cannabis-infused products, a requirement that a representative sample of cannabis
   be tested by a cannabis testing facility, and a requirement that the amount of
   cannabis or cannabis concentrate contained within a cannabis-infused product be
   specified on the product label.
   (F) Security requirements, including lighting, physical security, and
   alarm requirements, and requirements for securely transporting cannabis between
   cannabis establishments, provided that such requirements do not prohibit
   cultivation of cannabis in greenhouses.
   (G) Record keeping requirements for cannabis establishments and
   monitoring requirements to track the transfer of cannabis by licensees to prevent
   illegal diversion of cannabis to the illicit market.
   (H) Requirements for the operation of cannabis secure transporters to
   ensure that all cannabis establishments are properly served.
   11 (!) Reasonable restrictions on advertising, marketing, and displaying
   cannabis at cannabis establishments consistent with the First Amendment to the
   U.S. Constitution and Art. 2, § 6 of the Arkansas Constitution, but signs and
   advertising cannot be prohibited, only reasonably regulated.
   (J) A plan to promote and encourage participation in the cannabis
   industry by people from communities that have been disproportionately impacted
   by cannabis prohibition and enforcement, and to positively impact those
   communities.
   (K) Penalties for failure to comply with any rule promulgated pursuant
   to this section or for any violation of this Amendment by a licensee, including
   civil fines and suspension, revocation, or restriction of a state license.
   (2) In furtherance of the intent of this Amendment, the ABC may promulgate
   rules to provide for:
   (A) The issuance of additional types or classes of state licenses to
   operate cannabis-related businesses, including licenses that authorize only limited
   cultivation, processing, transportation, delivery, storage, sale, or purchase of
   cannabis;
   (B) Licenses that authorize the consumption of cannabis within
   designated areas; licenses that authorize the consumption of cannabis at special
   events in limited areas and for a limited time; licenses that authorize cultivation
   for purposes of propagation; and licenses intended to facilitate scientific research
   or education.
   (C) The increase of any dispensary license beyond 200 plants and
   seedlings depending upon whether supply and demand for product reasonably
   justifies it after notice and public hearing.
   (3) Additionally, the ABC may not promulgate a rule that:
   (A) Establishes a limit on the number of any type of state licenses that
   may be granted. The free market, however, shall otherwise control the number of
   licensees that survive, but the General Assembly may limit the number of
   locations to no greater extent that establishments selling alcoholic beverages or
   beer or wine are limited.
   12 (B) Requires a customer to provide a cannabis dispensary with
   identifying information other than identification to determine the customer's age
   or requires the cannabis dispensary to acquire or record personal information
   about customers other than information typically required in a retail transaction.
   (C) Prohibits a cultivation facility, cannabis processor, or cannabis
   dispensary from operating within a single facility.
   (D) Prohibits an out-of-state person from buying cannabis.
   (E) Prohibits checks or credit or debit cards from being used for
   cannabis transactions, although federal law may restrict national banks from
   doing so.
   (F) Is unreasonable or impracticable in operation.
   Section 6. Licensing
   (a) Each application for a state license must be submitted to the ABC. Upon receipt
   of a complete application and application fee, the ABC shall forward a copy of the application to
   the municipality in which the cannabis establishment is to be located, determine whether the
   applicant and the premises qualify for the state license and comply with this Amendment, and
   either issue the appropriate state license or send the applicant a notice of rejection setting forth
   specific reasons why the ABC did not approve the state license application within 90 days.
   (b) The ABC shall issue the following state license types: cannabis dispensary;
   cannabis testing facility; cannabis secure transporter; cannabis processor; and cannabis
   cultivation facility.
   ( c) Except as otherwise provided in this section, the ABC shall approve a state
   license application and issue a state license if:
   (1) The applicant has submitted an application in compliance with the rules
   promulgated by the ABC, is in compliance with this Amendment's rules, and has paid the
   required fee;
   (2) The municipality in which the proposed cannabis establishment will be
   located does not notify the ABC that the proposed cannabis establishment violates an
   ordinance consistent with this Amendment and which was in effect at the time of
   application;
   13 (3) The property where the proposed cannabis establishment, whether medical
   or adult use, is to be located is not within an area zoned exclusively for residential use
   and is not within 1,000 feet (front door to front door, not property lines) of a pre-existing
   public or private school providing education in pre-kindergarten or any of grades K-12 or
   a church, temple, synagogue, or other house of worship unless a municipality adopts an
   ordinance that reduces this distance requirement;
   (4) No person who holds an ownership interest in the cannabis establishment
   applicant will hold an ownership interest in more than one cannabis cultivation facility or
   in more than three cannabis dispensaries.
   ( d) If a municipality limits the number of cannabis establishments that may be
   licensed in the municipality pursuant to § 10 of this Amendment and that prevents the ABC from
   issuing a state license to all applicants who meet the requirements of this section, the ABC shall
   decide among competing applications by a competitive process intended to select applicants who
   are best suited to operate in compliance with this Amendment within the municipality.
   (e) All state licenses are effective for one year unless the ABC issues the state license
   for a longer term. A state license is renewed upon receipt of a complete renewal application and
   a renewal fee from any cannabis establishment in good standing. Renewal must not be denied
   arbitrarily or without due process.
   (f) The ABC shall begin accepting applications for cannabis establishments within
   120 days after the effective date of this Amendment. Except as otherwise provided in this
   section, for nine months after the ABC begins to receive applications for cannabis
   establishments, the ABC may only accept applications for licensure: for a cannabis cultivation
   facility or cannabis dispensary, from persons who are residents of Arkansas; for a cannabis
   testing facility, cannabis processor, or a cannabis secure transporter, from persons holding a state
   operating license; and pursuant to repealed Amendment 98 from any applicant. If the ABC
   determines that additional state licenses are necessary to seek to minimize the illegal market for
   cannabis in this state, to efficiently meet the public demand for cannabis, or to provide for
   reasonable access to cannabis in rural areas, the ABC may issue additional licenses.
   (g) Applications under this Amendment are exempt from disclosure under the
   Freedom of Information Act except for the name and address of the applicant and other
   14 information the ABC determines should be disclosed in the public interest. The rest is protected
   as a trade secret.
   (h) Actions of the ABC are subject to judicial review by an aggrieved party with
   standing shall be brought under the Arkansas Administrative Procedure Act.
   (i) Cultivation facilities and dispensaries holding medical marijuana licenses under
   repealed Amendment 98 shall be grandfathered in to Amendment law and provide cannabis to
   adults 21 years of age and older and but must continue to serve the patients with a medical
   cannabis card with the same product and price structure prior to adult use sales until the ABC has
   received, processed, and issued licenses for adult use facilities.
   Section 7. Acts permitted and not permitted by cannabis establishments, processors, and
   transporters
   behalf:
   (a) A cannabis establishment, processor, or transporter, or person acting on their
   (1) May not allow cultivation, processing, sale, or display of cannabis or
   cannabis accessories to be visible from a public place outside of the cannabis
   establishment without the use of visual aids.
   (2) May not cultivate, process, test, or store cannabis at any location other
   than a physical address approved by the ABC and within an enclosed area that is secured
   in a manner that prevents access by persons not permitted by the cannabis establishment
   to access the area.
   (3) Shall secure every entrance to the establishment so that access to areas
   containing cannabis is restricted to employees and other persons permitted by the
   cannabis establishment to access the area and to agents of the ABC, state and local law
   enforcement officers, and emergency personnel, and shall secure its inventory and
   equipment during and after operating hours to deter and prevent theft of cannabis and
   cannabis accessories.
   (4) Is subject to reasonable inspection by the ABC during the hours of
   operation to inspect the licensed premises or to audit the books and records of the
   cannabis establishment, provided that no audit of the cannabis establishment shall
   15 interfere with the normal operation of the establishment. For Fourth Amendment
   purposes, cannabis establishments are "closely regulated businesses."
   (5) May sell or otherwise transfer cannabis that was not produced, distributed,
   and taxed in compliance with this Amendment.
   (6) May not allow minors to not work for compensation or as volunteers in
   the cannabis establishment. To knowingly do so or to permit it may be designated a
   misdemeanor by the legislature. In a criminal prosecution or regulatory action, there is
   defense for transfer, sale, or giving cannabis to an underage person if the person
   reasonably believed and verified that the recipient appeared to be 21 years of age or older
   by means of what appeared to be a government issued photographic identification
   containing a date of birth, and the person complied with any rules promulgated pursuant
   to this Amendment.
   (7) May not sell edible cannabis-infused candy in shapes or packages that are
   intentionally attractive to children or that are easily confused with commercially sold
   candy that does not contain cannabis.
   (8) May not sell or otherwise transfer cannabis that is not contained in a
   resealable child-resistant package designed to be significantly difficult for children under
   5 years of age to open and not too difficult for normal adults to use properly unless the
   cannabis is transferred for consumption on the premises where sold.
   (9) No cannabis establishment may sell or otherwise transfer tobacco or
   alcohol.
   (10) Cultivator licenses shall have no limit on number of plants that can be
   produced.
   ( 11) A cannabis secure transporter can possess, store, or transport cannabis to
   or from a cannabis establishment and may receive compensation for services. A licensed
   transporter and their workers working within his, her, or its license is exempt from
   criminal prosecution.
   (12) A cannabis testing, cultivation, or transportation facility can test, possess,
   repackage, store, transfer, or transport cannabis to or from a cannabis establishment and
   may receive compensation for services.
   (b) Violations:
   16 (1) The legislature may determine which violations of this Amendment are
   misdemeanors and which will be violations of ABC regulations. Because this
   Amendment establishes personal possession of cannabis is a state constitutional right, for
   a violation of this Amendment to be a misdemeanor, the lowest burden of proof for a
   criminal violation is "knowingly."
   (2) Other criminal penalties not expressly or impliedly superseded by this
   Amendment remain in effect and are subject to change by the legislature.
   Section 8. Laws not affected by this Amendment
   (a) This Amendment does not authorize:
   (1) Operating, navigating, or being in physical control of any motor vehicle,
   aircraft, off-road recreational vehicle, or motor powered or sail boat while under the
   influence of cannabis or consuming cannabis by smoking within the passenger area of a
   vehicle upon a public way.
   (2) The transfer of cannabis or cannabis accessories to a person under the age
   of 21, unless they have a medical cannabis card issued by the ADH.
   (3) Any person under the age of 21 to possess, consume, purchase, or
   otherwise obtain, cultivate, process, transport, or sell cannabis, unless they have a
   medical cannabis card.
   (4) The separation of plant resin by butane extraction or another method that
   utilizes a substance with a flashpoint below 100°F in any public place, motor vehicle, or
   within the curtilage of any residential structure.
   ( 5) The consumption of cannabis in a public place or smoking cannabis where
   prohibited by the person who owns, occupies, or manages the property.
   (A) Except for purposes of this subdivision, a public place does not
   include an area designated for consumption within a municipality that has
   authorized consumption in designated areas that are not accessible to persons
   under 21 years of age. It also does not include one's backyard if not exposed to
   public view.
   (B) A person has a reasonable expectation of privacy in his, her, or its
   backyard or other fenced in property for cultivating cannabis plants. Therefore,
   17 this reasonable expectation of privacy is not defeated by the use of binoculars,
   drones, aircraft, heat-sensing devices, cameras, other optical aids, ladders, looking
   over fences from an adjoining property, or otherwise from outside of an enclosed
   area equipped with locks or other functioning security devices that restrict access
   to the area.
   (7) Possessing cannabis accessories, or possessing or consuming cannabis, on
   the grounds of a public or private school where children attend classes in pre-K-12, in a
   school bus, or on the grounds of any correctional facility, medical permit or not. A minor
   in school who has a medical cannabis card, however, can be administered their
   medication as any other pharmaceutical medication.
   (8) Possessing more than four ounces of cannabis within a person's place of
   residence, unless the excess cannabis in varying stages of growth or processing is stored
   in an enclosed, locked container or place.
   (b) This Amendment does not require an employer to permit or accommodate
   conduct otherwise allowed by this Amendment in any workplace or on the employer's property.
   This is an employer choice, even with medical cannabis. This Amendment does not prevent an
   employer from refusing to hire, discharging, disciplining, or otherwise taking adverse
   employment action against a person with respect to hire, tenure, terms, conditions, or privileges
   of employment because that person was working under the influence of cannabis. (And a mere
   positive drug test does not mean "under the influence.")
   ( d) Thi~ Amendment allows a person to prohibit or otherwise regulate the
   consumption, cultivation, distribution, processing, sale, or display of cannabis and cannabis
   accessories on property the person owns, occupies, or manages, except that a lease agreement
   may not prohibit a tenant from lawfully possessing and consuming cannabis by means other than
   smoking. Thus, a landlord has complete authority to prohibit smoking cannabis in the rented or
   leased property or on common areas of the property. This is the landlord's choice. An ABC
   license holder with a restaurant or bar that excludes minors may permit consumption and sale of
   cannabis on the premises. Violation, however, is only a violation of the lease and cannot be a
   criminal offense except that repeated violations and refusals to comply may result in the offense
   of criminal trespass if the landlord's documented requests knowingly ignored by the tenant.
   18 Section 9. Acts permitted under this Amendment
   As a state constitutional right, a person 21 years of age or older is not subject to
   prosecution, penalties, or forfeitures, including revocation of probation or parole or denial of any
   other right or privilege, for possession or use of cannabis:
   (a) In a person's residence.
   (1) Possessing, storing, and processing not more than four ounces of cannabis
   and any cannabis produced by cannabis plants cultivated on the premises, and cultivating
   not more than six mature cannabis plants for personal use, provided that no more than 12
   cannabis plants (with six being seedlings not larger than 12 inches in width or height) are
   possessed, cultivated, or processed on the premises at once.
   (2) Possessing, using, consuming, internally possessing, purchasing,
   transporting, or processing 4 ounces or less of cannabis, except that not more than 20
   grams of cannabis may be in the form of cannabis concentrate.
   (3) Giving away or otherwise transferring without remuneration up to 22
   ounces of cannabis, except that not more than 20 grams of cannabis may be in the form of
   cannabis concentrate, to a person 21 years of age or older, as long as the transfer is not
   advertised or promoted to the public.
   ( 4) Assisting or aiding another person who is 21 years of age or older in any
   of the acts described in this section.
   (5) Possession in the home where minors are present is lawful if the minors
   are not exposed to cannabis or second-hand smoke from cannabis nor otherwise directly
   or indirectly exposed to cannabis.
   (b) On the person or in a vehicle:
   (1) Possession of up to four grams is not a criminal offense in Arkansas as
   long as it is not visible to others.
   (2) For possession of more than four grams, it is a complete defense under this
   section that the person acquired the cannabis from a licensed dispensary within the
   previous 24 hours as shown by a sales receipt and is transporting it home.
   ( c) Cannabis accessories: The use, manufacture, possession, and purchase of cannabis
   accessories by a person 21 years of age or older, and the distribution or sale of cannabis
   accessories to a person 21 years of age or older, is authorized; not unlawful; not an offense; not
   19 grounds for seizing or forfeiting property; not grounds for arrest, prosecution, or penalty in any
   manner, including conditions of or revocation of probation or parole, including the offense of
   simultaneous possession of firearms and drugs (as already provided by Arkansas law); and not
   grounds to deny any other right or privilege.
   (d) Custody or visitation: A person shall not be denied custody of, or visitation with,
   a minor or incapacitated adult based solely on conduct that is permitted by this Amendment,
   though custody may be denied if the person's behavior is such that it creates a clear and present
   or unreasonable danger to the minor or incapacitated adult that can be clearly articulated and
   substantiated by clear and convincing evidence. The determination that a person creates a clear
   and present or unreasonable danger must be made only during a judicial hearing and cannot
   solely be made by the Department of Human Services or any other agency. Therefore, the
   agency must petition a court for such a determination. It is the obligation of the agency to make
   the record for review, and nothing will be presumed. Appellate review is also de novo. A person
   engaging in lawful acts under this Amendment, by those acts alone, shall not be subject to claims
   of child abuse or neglect, or be the subject of confidential child abuse or neglect or parental
   unfitness reports or the child maltreatment registry, made by the n·epartment of Human Services
   or any other state or local agency.
   (e) Probation or parole: No person on probation or parole will be subject to
   revocation or probation or parole or other penalty solely for possession of a personal or medical
   use quantity. The fact possession of cannabis is a federal offense is not a reason for limitation of
   their right to possess small quantities or use in Arkansas. Probation or parole may, however, limit
   nonmedical consumption with a showing of a rehabilitative need.
   (f) Other acts:
   (1) Possessing, cultivating, processing, obtaining, transferring, or transporting
   industrial hemp shall not be prohibited.
   (2) Providing professional services to prospective or licensed cannabis
   establishments related to activity under this Amendment by lawyers, accountants,
   medical personnel, state or national banks, credit unions, cannabis experts, investment
   advisors, or any other profession is lawful and no state regulatory body may prohibit or
   limit it.
   20 (3) No law shall otherwise prohibit leasing, selling, or otherwise allowing the
   use of property owned, occupied, or managed for activities allowed under this
   Amendment.
   Section 10. Local control of cannabis establishments
   (a) Except as otherwise provided, a municipality may completely prohibit or limit the
   number of cannabis establishments within its boundaries but only by a popular vote of the people
   in a local option election governed as follows:
   (1) By petition. Individuals may petition to initiate an ordinance to provide for
   the number of cannabis establishments allowed within a municipality or county or to
   completely prohibit cannabis establishments within a municipality or county. Such
   ordinance shall be submitted to the electors of the municipality or county at the next
   regular biennial election when a petition is signed by qualified electors in the
   municipality in a number equal to or greater than 38% of the votes cast for chief
   executive by qualified electors in the municipality at the last preceding general election
   and in counties equal to or greater than 38% of the votes case for circuit clerk in the last
   general election. (38% is the current percentage required by statute for an alcohol local
   option election. If that is changed by the General Assembly, the percentage for cannabis
   local option be the same as for alcohol local option. However, that change must occur no
   less than one year before a general election, and otherwise the highest percentage
   applies.)
   (2) Local ordinance. The municipality's governing body, city council, or
   quorum court may propose an ordinance and such ordinance shall be submitted to the
   electors of the municipality at the next regular election. The proposed ordinance shall
   have no effect to amend this Amendment or subsequent regulations regarding this
   Amendment until the proposed ordinance is passed by popular vote.
   (3) Adoption of ordinance. Any license granted before a biennial vote limiting
   a cannabis establishment shall continue for seven years so the licensee can recoup its
   investment.
   21 (b) A municipality may adopt other ordinances that are not unreasonably
   impracticable and do not conflict with this Amendment or with any rule promulgated pursuant to
   this Amendment that:
   (1) Establish reasonable restrictions on public signs related to cannabis
   establishments.
   (2) Reasonably regulate the time, place, and manner of operation of cannabis
   establishments and of the production, manufacture, sale, or display of cannabis
   accessories; however, mandated hours cannot be less than 12 hours a day and Sunday and
   holiday sales cannot be prohibited. Days and hours of operation are the business's choice.
   (3) Authorize the sale of cannabis for consumption in designated areas that
   are not accessible to persons under 21 years of age, or at special events in limited areas
   and for a limited time.
   ( 4) Designate a violation of the ordinance and provide for a civil penalty for
   that violation by a cannabis establishment, provided that such violation is a civil
   infraction and such civil penalty is not more than $500.
   ( c) A municipality may adopt an ordinance requiring a cannabis establishment
   located within the municipality to obtain a municipal or county license but may not impose
   qualifications for licensure that conflict with this Amendment or rules promulgated by the ABC
   and the license fee must be reasonable and on a par with fees for other sales establishments.
   ( d) License fees:
   ( 1) If a municipality licenses a cannabis establishment, it may charge an
   annual license fee no more than that of a liquor store to defray application,
   administrative, and enforcement costs associated with the licensed operation of the
   cannabis establishment in the municipality.
   (2) Otherwise, the license fee can be no more than that charged a liquor store.
   (e) The state, county, or municipality may not adopt any law or ordinance that
   restricts the transportation of cannabis from a cannabis grower to a cannabis processor, to a
   cannabis testing facility, to a cannabis dispensary, to a customer to possess, or to a customer's
   home.
   Section 11. Taxation of consumers and cannabis establishments
   22 (a) In computing net income taxes for cannabis establishments, deductions from state
   taxes are allowed for all the ordinary and necessary expenses paid or incurred during the taxable
   year in carrying out a trade or business.
   (b) Sales taxes shall be imposed at every level from grow to dispensary sale.
   (c) For dispensary sales, in addition to standard retail sales taxes:
   (1) a state excise tax is imposed at a rate not to exceed 8% of the sales price in
   addition to the state sales tax; and
   (2) a local cannabis sales tax is imposed at a rate not to exceed 3% of the sales
   price for and additional county and city sales tax, and a local tax to promote tourism may
   be added up to 2% more ifthe locality already imposes a tourism tax on food
   establishments, hotels, or other services.
   (c) However, medical cannabis consumers shall only pay sales tax the same as on
   prescription drugs.
   ( d) Except as otherwise provided by a rule promulgated by the Department of
   Finance and Administration, a product subject to the tax imposed by this section may not be
   bundled in a single transaction with a product or service that is not subject to the tax imposed by
   this section so as to avoid taxes.
   (e) The Department of Finance and Administration shall administer the taxes
   imposed under this Amendment and may promulgate rules that prescribe a method and manner
   for payment of the tax to ensure proper tax collection.
   Section 12. Cannabis regulation fund
   (a) The cannabis regulation fund is created in the Department of Finance and
   Administration. The Department of Finance and Administration shall deposit all money collected
   under this Amendment and the ABC shall deposit all fees and fines collected into the fund. The
   state treasurer shall direct the investment of the fund and shall credit the fund interest and
   earnings from fund investments. The ABC shall administer the fund for auditing purposes.
   Money in the fund shall not lapse to the General Fund.
   (b) Funds for the initial activities of the ABC to implement this Amendment shall be
   appropriated from the general fund. The ABC shall repay any amount appropriated under this
   subsection from proceeds in the fund.
   23 ( c) The Treasurer shall allocate state money collected under this Amendment as
   follows for legislative appropriation:
   (1) 40% for public education, pre-K-12;
   (2) 15% for maintenance and repairs to roads and bridges;
   (3) 15% for the implementation, administration, and enforcement of this
   Amendment;
   (4) 10% for drug rehabilitation efforts by grants or direct state expenditures;
   ( 5) 10% for salaries and support of deputy prosecuting attorneys and 10% for
   salaries and support of public defenders.
   ( d) County and city sales taxes should be disbursed to their respective General Fund
   or the tourism tax fund, as the case may be.
   Section 13. Penalties
   A person who commits any of the following acts, not otherwise authorized by this
   Amendment to conduct such activities, may be punished only as provided in this section and is
   not subject to any other form of punishment or disqualification, unless the person consents to
   another disposition authorized by law:
   (a) Unlicensed delivery, with or without consideration:
   ( 1) to a person under 18, four grams or less is a class A misdemeanor
   (2) to a person 18-20, four grams or less is a violation and not a crime subject
   to a civil penalty of up to $1,000.
   (3) four grams to four ounces is a class A misdemeanor.
   (4) Otherwise, the criminal law controls. Moreover, the legislature may lessen
   these penalties, but it cannot increase them.
   (b) Possession by a person of more than four ounces but less than 16 ounces in one's
   home, or cultivation of more than six but not more than 12 plants in the home or on the curtilage
   is guilty of only a violation and it is punishable only by a civil penalty of up to $1,000.
   Otherwise, the criminal code controls by weight of drugs or with a purpose to deliver. Packaging
   does not create an inference of purpose to deliver.
   (c) Operating any vehicle or motor or sail powered boat under the influence is treated
   the same as driving while intoxicated under existing law.
   24 ( d) Conviction of any drug offense shall not result in adverse action against a driver's
   license. Ark. Code Ann. § 27-16-915 is repealed. People need driver's licenses to get to work,
   and§ 27-16-915 deters no one.
   Section 14. Prior convictions for those in possession of 16 ounces or less
   (a) Any person convicted of possession or possession with intent or purpose to
   deliver of 16 ounces or less of cannabis or cultivation or manufacture with six or fewer plants
   prior to the effective date of this Amendment is entitled to have his or her conviction sealed on
   application to the court of conviction merely by citing this Amendment.
   (b) It does not matter whether fines and costs have been paid or how many prior
   convictions they have had, misdemeanor or felony, but fines and costs already paid are not
   subject to refund.
   (c) Any person in prison or jail or on probation or parole shall be released from
   custody or supervision on the effective date of this Amendment or have that sentence voided and
   the balance of his or her term recalculated.
   (d) No filing fee shall be required.
   (e) The conviction will be sealed on the person's application on an ACIC form
   without the need for judicial action.
   (t) If the record is ever visible to some state agency or police agency, it will state
   "Sealed under Amendment " [whichever number this Amendment is assigned by the Secretary
   of State].
   Section 15. Enforceability of contracts
   (a) It is the public policy of this state, and in keeping with the constitutional
   prohibition against impairing the obligation of contracts, that contracts for licensed activity for
   products, goods, services, and rental or purchase of real or personal property are fully
   enforceable in the courts of Arkansas.
   (b) Likewise, employer and landlord choice with adequate notice to the employee or
   other agent or tenant is enforceable and shall be recognized by the courts or state agencies.
   Section 16. Reciprocity
   25 Medical cannabis patient cards from any state, the District of Columbia, any U.S.
   territory, possession, commonwealth, or tribe, or Canada are fully recognized in Arkansas.
   Section 17. Construction
   (a) This Amendment shall be broadly construed to accomplish its intent as stated in§
   2 of this Amendment.
   (b) All other laws inconsistent with this Amendment do not apply to conduct that is
   permitted by this Amendment.
   (c) Nothing in this Amendment purports to supersede any applicable federal law.
   ( d) All provisions of this Amendment are self-executing.
   ( e) Any part or subpart of this Amendment that is found invalid as to any person or
   circumstance shall not affect the application of any other part or subpart of this Amendment that
   can be given full effect without the invalid section or application.
   Section 18. Changes to this Amendment
   (a) Changes to this Amendment may only be made by a supermajority three-fourths
   vote of the Legislature, except as provided in subjection (b), but any changes to this Amendment
   must further the purposes of this Amendment and not restrict it. Failure to further the purposes of
   this Amendment voids the law on judicial review.
   (b) Despite a supermajority, the following cannot be repealed or changed:
   ( 1) This Amendment cannot be repealed except by a vote of the People.
   (2) The implementation of this Amendment shall not be delayed.
   (3) The number of dispensaries or cultivation facilities shall not be reduced.
   (4) The release of those individuals incarcerated in Arkansas prisons for
   cannabis possession shall not be repealed.
   (5) The right for individuals to grow their own cannabis shall not be repealed,
   nor the number of plants allowed reduced.
   (6) The allowable number of cannabis plants grown by dispensaries shall not
   be reduced.
   (7) The taxes on personal use or medical use of cannabis cannot be changed.
   Section 19. Amendment 98 repealed
   26 (a) Amendment 98 is repealed.
   (b) Any person or entity which has a license under Amendment 98 shall continue to
   exist and shall be recognized by the ABC and may continue operating pending issuance of ABC
   licenses under this Amendment.
   (c) Any applications already turned in under Amendment 98 to the ABC and Medical
   Marijuana Commission shall be considered by the ABC for the licenses they were submitted for
   under this Amendment.
   Section 20. Effective date; many provisions self-executing
   (a) This Amendment shall take effect the day after approval by the voters without
   regard to when the Secretary of State certifies the vote.
   (b) As much of this Amendment as possible is self-executing and needs no legislative
   action to be effective. The fact the legislature adopts laws for clarification or amplification does
   not make a provision not self-executing.
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