Why was the Arkansas Cannabis Amendment ballot title rejected for failing to clearly explain its effect on the existing medical marijuana amendment?

Plain-English summary

Attorney John W. Hall Jr. asked the Arkansas Attorney General to certify the popular name and ballot title of a proposed Arkansas Cannabis Amendment. The proposed title covered adult cannabis possession and cultivation, medical patient certification, dispensaries, licensing, taxation, and record sealing. The AG rejected the title, popular name, and proposed measure under Ark. Code Ann. § 7-9-107. She said the ballot title failed to explain how the proposal would relate to the Arkansas Medical Marijuana Amendment of 2016 (AMMA), and the proposal itself was unclear on that relationship.

The AG identified two connected problems. First, the ballot title offered "minimal information about the AMMA" and did not sufficiently summarize differences in patient licensing or the licensing and regulation of dispensaries and cultivation facilities. Second, uncertainty in the proposed text prevented the AG from writing a satisfactory substitute title. She said voters should not have to "speculate about proposed changes in the law." Her review did not address whether cannabis legalization was good policy.

The opinion discussed the proposed title's statement that it would "allow an MD, APRN, or DO to certify a medical cannabis patient." It did not explain how that process compared with the AMMA's registry identification cards. The proposed text called for Department of Health rules on "medical cannabis patient cards" but did not define that term or "medical marijuana patient." The AG could not tell whether the AMMA would govern the Department's new rules.

On business licensing, the title said the Medical Marijuana Commission would be abolished and referred to Alcohol Beverage Control Division (ABC) regulation. The AG's stated concern was that the title did not sufficiently summarize the proposal's detailed state licensing procedures, qualifications, restrictions, and ABC authority, including their relation to the AMMA's existing system. She did not identify a contradiction between the words "abolish" and "eliminate," criticize an enacting clause, or discuss a strikethrough in a section heading as a reason for rejection.

Currency note

Issued August 23, 2018. This opinion concerns a proposed ballot measure and the certification standards applied to that submission. It does not establish current cannabis law.

Why the title could not be certified

Arkansas law authorized the AG to certify a submitted popular name and ballot title, substitute and certify a suitable one when practicable, or reject the submission if the title or issue would mislead voters. The AG explained that a ballot title must let voters understand a proposal's scope and significance from the title alone. She cited the rule that a title cannot be approved when the proposal's own text contributes to confusion between the measure and its title.

The proposed amendment would not repeal the AMMA, but the AG found its effect on medical use unclear. The overlap concerned patient licensing and entities cultivating and dispensing for medical use. The proposed title spoke of medical patient certification without explaining its relation to AMMA registry cards. The proposed measure's undefined card terms made the missing explanation hard to supply. The AG said that uncertainty "prevents adequate summation" of the patient licensing changes.

The licensing problem extended to dispensaries and cultivation facilities. The title described ABC rulemaking and said AMMA dispensaries could sell to adults, while the text contained detailed licensing provisions. The AG wrote that the title "does not sufficiently summarize" those provisions and was otherwise silent about differences from the AMMA. Voters therefore could not determine how the proposal would affect the existing medical program or ABC's powers under it.

The AG said these were threshold deficiencies, not necessarily every problem with the submission. Because they stemmed partly from the measure's text, she could not proceed with further review or craft a title satisfying the court's standards. The opinion calls for clarification of the proposal and a title that conforms to the clarified text.

Common questions

Did the AG reject recreational cannabis as a policy?

No. The opinion says certification or rejection "is in no way a reflection of my view of the merits" and that the AG does not consider the measure's merits during this review.

Could a shorter rewritten ballot title have solved this submission?

The AG said the proposal itself was unclear about its effect on the AMMA. Without clarification of that text, she could not draft a satisfactory title. The opinion also says the sponsor is responsible for crafting the measure and accurately summarizing it before submission.

Did the AG find that the Commission's proposed abolition was contradicted by the measure?

No such contradiction appears in her analysis. She quoted the title's abolition language while explaining that the title did not adequately summarize the measure's licensing and regulatory provisions. The opinion's stated defect concerns what voters would know about the proposed system and its effect on the AMMA.

What happens after a rejection?

The opinion gives the sponsor the reasons this submission could not be certified and says its listed deficiencies "are not necessarily all the issues" preventing certification. It does not decide the merits of a future revised submission.

Citations

Ark. Code Ann. § 7-9-107; Ark. Const. amend. 98; Roberts v. Priest, 341 Ark. 813, 825, 20 S.W.3d 376, 382 (2000); Bailey v. McCuen, 318 Ark. 277, 884 S.W.2d 938 (1994).

Source

• Official opinion search: https://arkansasag.gov/divisions/opinions-foia/attorney-general-opinions-search/

Original opinion text

STATE OF ARKANSA S
ATTORNEY GENERAL
LE SLIE RUTLED GE

Opinion No. 2018-099

August 23, 2018

John W. Hall Jr., Esq.
1202 Main Street, Suite 210
Little Rock, AR 72202

Dear Mr. Hall:

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 I 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 reference 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 (1948). 3 Becker v. Riviere, 270 Ark. 219, 226, 604 S.W.2d 555, 558 (1980) (internal citations omitted).

323 CENTER STREET. SU ITE 200 · L ITTLE RO C K. ARKANSAS 7220 1 TELEPHONE (50 1) 682-2007 · FAX (501) 682-8084 ARKANSASAG.GOV

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 2

It follows from my duty to reject misleading submissions that any ballot title submitted for review should represent the sponsor's attempt to summarize his proposed amendment or act in a non-misleading fashion. At the time they are submitted to my office under section 7-9-107, the popular name and ballot title for proposed constitutional amendments and acts "should be complete enough to convey an intelligible idea of the scope and import of the proposal." 4 And while I am authorized to substitute and certify a ballot title that is more suitable (in terms of affording voters a fair understanding of the issues presented), section 7-9-107 does not contemplate that I generate a ballot title when the ballot title submitted is wholly deficient. Nor does the statute require that I modify the proposed measure itself in order to then summarize the measure's text in a suitable ballot title. Crafting the measure's text and accurately summarizing that text in a ballot title are the sponsor's responsibility prior to submission.

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 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, acknowledging cannabis use, possession and distribution for any purpose remain illegal under federal law.

To amend Amendment 98, to allow medical cannabis patients to purchase at any dispensary, regardless if that dispensary was created under Amendment 98 or the Arkansas Cannabis Amendment, allow an MD, APRN, or DO to certify a medical cannabis patient and increase the number of qualifying conditions.

4
Bailey v. McCuen, 318 Ark. 277, 285, 884 S.W.2d 938, 942 (1994) (internal quotation omitted).

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 3

A minor in school who has a medical cannabis card can be administered their medication by the school nurse, as with any other pharmaceutical medication.

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 [sic]

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. To allow adults home cultivation of up to 6 mature plants and 6 seedlings.

To abolish the medical marijuana commission and replace the authority of licensing with the Alcohol beverage control [sic]. To allow medical marijuana dispensaries to also sell to adults over 21 for recreational use.

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.

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 that the property where the proposed cannabis establishment 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.

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 4

To distribute state sales tax for the sale of cannabis as follows: All state sales tax will go to public pre-k program [sic]. Any surplus will go to public school teacher salaries [sic]

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 fewer 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 fewer plants.

This amendment shall be broadly construed to accomplish its intent, and, where possible, it is self-executing.

GUIDELINES

The popular name is primarily a useful legislative device. 5 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. 6 The popular name is to be considered together with the ballot title in determining the ballot title's sufficiency. 7

"It has long been regarded as axiomatic that the majority of voters, when called upon to vote for or against a proposed measure, will derive their information about its contents from an inspection of the ballot title immediately before exercising the right of suffrage." 8 Accordingly, 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. 9 According to the Court, a ballot title will not be legally sufficient unless it "adequately inform[ s]" the voters of the contents

5
Pafford v. Hall, 217 Ark. 734, 739, 233 S.W.2d 72, 75 (1950).
6
See, 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). For a better understanding of the term "partisan coloring," see infra note 19. 7 May v. Daniels, 359 Ark. 100, 105, 194 S.W.3d 771, 776 (2004).
8
Wilson v. Martin, 2016 Ark. 334, *7, 500 S.W.3d 160, 166 (citing Christian Civic Action Committee v. McCuen, 318 Ark. 241, 884 S.W.2d 605 (1994)). 9 Becker, 270 Ark. at 226, 604 S.W.2d at 558 (internal citations omitted).

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 5

of a proposed amendment or act so that they can make a "reasoned decision in the voting booth." 10 A ballot title's failure to "honestly and accurately reflect what is contained in the proposed [act or] Amendment" may lead the Court to conclude that the "omission is significant. " 11 The Court has also disapproved the use of terms that are "technical and not readily understood by voters." 12 Without a definition of such terms in the ballot title, the title may be deemed insufficient. 13

Additionally, if information omitted from the ballot title is an "essential fact which would give the voter serious ground for reflection, it must be disclosed." 14 At the same time, however, a ballot title must be brief and concise; 15 otherwise voters could run afoul of the statutory five-minute limit in voting booths 16 when other voters are waiting in line. 17 The ballot title is not required to be perfect, nor is it reasonable to expect the title to cover or anticipate every possible legal argument the proposed measure might evoke. 18 Yet the title must be "free of any misleading tendency whether by amplification, omission, or fallacy, and it must not be tinged with partisan coloring." 19 The ballot title must be honest and impartial, 20 and it

10
Lange v. Martin, 2016 Ark. 337, 500 S.W.3d 154, at n. 2.

11
Id. at 9, 500 S.W.3d at 159.
12
Wilson, 2016 Ark. 334, 9, 500 S.W.3d at 167 (stating that "voters [should not] be placed in a position of either having to be an expert in the subject or having to guess as to the effect his or her vote would have").

13
Id., 500 S.W.3d at 167.
14
Bailey, 318 Ark. at 285, 884 S.W.2d at 942.

15
See Ark. Code Ann.§ 7-9-107(b).
16
Ark Code Ann. § 7-5-309 (Supp. 2017).

17
Bailey, 318 Ark. at 284, 884 S.W.2d at 944.
18
Id. at 293, 884 S.W.2d at 946-47.
19
Id. at 284, 884 S.W.2d at 942. 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, 318 Ark. at 249, 884 S.W.2d at 610. 20 Becker v. McCuen, 303 Ark. 482, 489, 798 S.W.2d 71, 74 (1990).

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 6

must convey an intelligible idea of the scope and significance of a proposed change in the law. 21

Furthermore, the Court has confirmed that a ballot title cannot be approved if the text of the proposed measure itself contributes to confusion and disconnect between the language in the popular name and the ballot title and the language in the measure. 22 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. ,m 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 (I) clarification or removal of the ambiguities in the proposal itself, and (2) conformance of the popular name and ballot title to the newly worded proposal.

RESPONSE

My statutory duty is to certify, substitute and certify, or reject the entire proposal. In this case, I must reject the ballot title, popular name, and proposed measure due to certain threshold, fundamental flaws. The ballot title you have submitted fails to give voters a complete understanding of how the proposed constitutional amendment relates to the Arkansas Medical Marijuana Amendment of 2016 ("AMMA"), which deals with matters that overlap your proposal. But the proposal itself-which is a detailed attempt to make the recreational use of marijuana by adults legal under state law, while also changing the AMMA in some respects-is unclear in this regard. Hence, it is impossible to craft a ballot title that will satisfy the standards set by the Arkansas Supreme Court.
Absent clarification, I believe the Arkansas Supreme Court would have serious concerns about voters' ability to fully understand and appreciate the issues presented in your proposed amendment. Voters are entitled to know how your proposal would affect the AMMA. This requires the use of clear and precise terms in both the text and ballot title, so that voters do not have to speculate about proposed changes in the law.

21
Christian Civic Action Committee, 318 Ark. at 245, 884 S.W.2d at 607 (internal quotations omitted). 22 Roberts v. Priest, 341 Ark. 813, 825, 20 S.W.3d 376, 382 (2000).

23 Id.

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 7

DISCUSSION

Your proposed amendment would not repeal the AMMA, 24 but the effect of the proposal on the "medical use" of marijuana under the AMMA is unclear. The AMMA authorizes and regulates the "medical use" of marijuana, which is defined under the AMMA as:
the acquisition, possession, use, delivery, transfer, or transportation of marijuana or paraphernalia relating to the administration of marijuana to treat or alleviate a qualifying patient's medical condition or symptoms associated with the qualifying patient's qualifying medical condition. 25

The AMMA and your proposed amendment appear to overlap in most of the areas covered by this "medical use" definition, specifically regarding patient licensing and the licensing and regulation of entities that may cultivate and dispense for "medical use." Yet your proposed ballot title contains minimal information about the AMMA, "medical cannabis", and "medical marijuana". And the limited information you do provide does not offer sufficient insight into the proposed amendment's effect on the AMMA.

For example, the ballot title states that the amendment would "allow an MD, APRN, or DO to certify a medical cannabis patient[,]" but it provides no information about the certification process or how it compares with the issuance of "registry identification cards" under the AMMA. 26 The proposed measure itself states that the Department of Health "shall establish rules and regulations to issue medical cannabis patient cards on a recommendation from an MD, APRN, or

24
Section 3 of the proposed measure is entitled "Amend Amendment 98 repealed." I realize that one of your previous submissions included the proposed repeal of Amendment 98. But the strikethrough of a term, like "repealed" here, ordinarily indicates that the language stricken is currently the law and that the law is being changed in this way. Because Amendment 98 has not been repealed, your use of the strikethrough here is confusing and potentially misleading.

I must also repeat my previous admonition that an enacting clause should not be included for a proposed constitutional amendment. See Op. Att'y Gen. 2018-076. 25 Ark. Const. amend. 98, § 2(11) (Supp. 2017) ..
26
See id. at § 5 (providing for the Department of Health's issuance of "registry identification cards to qualifying patients and designated caregivers" who submit a physician's "written certification,'' and outlining the Heath Departments regulatory authority and other matters in connection with registry ID cards).

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 8

DO .... " 27 But the term "medical cannabis patient card" is not defined; the measure likewise does not define "medical marijuana patient." It is unclear under the proposal whether the AMMA applies to the Health Department's development of these "rules and regulations" concerning patient cards.

There plainly are some significant differences between the proposed amendment and the AMMA in this area of patient licensing-differences that are not reflected in the ballot title you have proposed. But the uncertainty under the proposal itself regarding the effect on the AMMA prevents adequate summation of these important features in a ballot title for the measure.

Relatedly, your proposed ballot title states that the amendment would "abolish the medical marijuana commission and replace the authority of licensing with the Alcohol beverage control [sic] [ABC]." 28 The ballot title also states that the amendment would "permit the promulgation of administrative rules and regulations for commercial sales and production and personal possession and production through the [ABC]." 29 The proposal itself addresses "state license[s]" in detail, 30 including the applicable procedures, qualifications, restrictions, and ABC's regulatory authority in connection therewith. 31 But the ballot title does not

27
Section 4(b)(l). The measure does not elaborate on "APRN" and "DO" and the meaning of these acronyms may not be readily apparent to all voters. 28 The measure itself states, in Section 3(d), that "[t]he Medical Marijuana Commission is to be eliminated." (Emphasis added). While it may not be your intent, this language contemplates some future action to eliminate the Commission, without specifying a process or time frame. The ballot title is therefore misleading when it states the proposed amendment "would abolish" the Commission. 29 The proposal itself states that "[t]he ABC ... has the powers and duties necessary to reasonably control the commercial and medical production and distribution of cannabis." Section 4(b)(2) (emphasis added) (see infra note 32 regarding the numbering of this subsection). The difference between the ballot title's reference to ABC's regulatory authority over "commercial sales and production" and this language in the measure itself regarding ABC's power to "reasonably control . . . commercial and medical production" gives rise to uncertainty and is potentially misleading. 30 Section 2(t) defines "State license" as "a license issued by the ABC that allows a person to operate a cannabis establishment," with the latter term defined in section 2(h) as "a cannabis cultivation center, cannabis testing facility, cannabis processor, cannabis dispensary, cannabis secure transpo11er, or any other type of cannabis-related business licensed by the ABC." Licensing is addressed in Sections 5 and 6. 31 Sections 4 through 7.

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 9

sufficiently summarize the measure's prov1s1ons concerning licensing and regulation-whether for recreational or medical use.

The AMMA likewise comprehensive!~ addresses the licensing and regulation of dispensaries and cultivation facilities. 2 But the ballot title you have submitted only states that the proposed amendment would "allow medical cannabis patients to purchase at any dispensary, regardless if that dispensary was created under [the AMMA]," 33 and that that it would "allow medical marijuana dispensaries to also sell to adults over 21 for recreational use." The ballot title is otherwise silent with respect to the differences between the proposed amendment and the AMMA regarding dispensaries and cultivation facilities, or the extent to which the proposal would alter the AMMA. It is therefore impossible to determine from the ballot title how your proposal would affect the AMMA and ABC's powers thereunder. Without this information, voters will not be able to make an informed decision about what they are being asked to add to the Arkansas Constitution.

I have previously explained to you the importance of 1) accurately summarizing the proposed measure's text, and 2) sufficiently informing the voters about the changes that they are being asked to approve. 34 I therefore will not further elaborate on these requirements. I will simply note that the ballot title you have proposed does neither. It consequently falls far short of the Court's requirements and is fatally misleading.

CONCLUSION

My office, in the certification of ballot titles and popular names, does not address 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 Ark. Code Ann. § 7-9-107, and my duty is to the electorate.

Your submission falls short of the minimum criteria under section 7-9-107. My office attempts in the usual course to identify problems in the text of a proposed measure that prevent certification of a satisfactory ballot title. However, I am 32 Amend. 98, § 8. See also id. at § 9 (registration and certification of cultivation facility agents and dispensary agents), § 10 (dispensary and cultivation facility inspections and requirements), and§§ 12 and 13 (prohibitions for dispensaries, and cultivation facilities, respectively). 33 Again, the measure does not define "medical cannabis patients," and it is unclear how this term relates to "qualifying patients" under the AMMA. 34 See Op. Att'y Gen. 2017-126.

John W. Hall Jr., Esq.
Opinion No. 2018-099
Page 10

unable in light of the above threshold deficiencies to proceed with any further review of this submission. These deficiencies are not necessarily all the issues preventing certification of a popular name and ballot title for your proposed measure. But they are sufficiently serious that I must reject your entire ballot title, popular name, and proposed measure.

Sincerely,

~_;:;>-
L. //~.,,
LESLIE RUTLEDGE
Attorney General

Enclosure

Name of Initiative Amendment:

ARKANSAS CANNABIS 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, acknowledging cannabis use, possession and distribution for any purpose remain illegal under federal law.

To amend Amendment 98, to allow medical cannabis patients to purchase at any dispensary, regardless if that dispensary was created under Amendment 98 or the Arkansas Cannabis Amendment, allow an MD, APRN, or DO to certify a medical cannabis patient and increase the number of qualifying conditions.

A minor in school who has a medical cannabis card can be administered their medication by the school nurse, as with any other pharmaceutical medication

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

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. To allow adults home cultivation of up to 6 mature plants and 6 seedlings.

To abolish the medical marijuana commission and replace the authority of licensing with the Alcohol beverage control. To allow medical marijuana dispensaries to also sell to adults over 21 for recreational use.

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.

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 that the property where the proposed cannabis establishment· 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;

To distribute state sales tax for the sale of cannabis as follows: All state sales tax will go to public pre-k program. Any surplus will go to public school teacher salaries

1

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 fewer 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 fewer plants.

This Amendment shall be broadly construed to accomplish its intent, and, where possible, it is self-executing.

The People of the State of Arkansas enact:

Section 1. Title

This Amendment shall be known and may be cited as the Arkansas Cannabis Amendment.

Section 2. 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; 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 ofthe plant of the genus cannabis.

(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.

2

(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.

(I) "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.

(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 the 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 THCAl of 15 ng/ml or more to be under the influence. If the USDOT standard changes, state law may change to be the same for consistency, as the ADH chooses, by adoption of a regulation and publication of a 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

3

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 3. Amend Amendment 98 repealed

(a) To amend Amendment 98, to allow medical cannabis patients to purchase at any dispensary, regardless if that dispensary was created under Amendment 98 or the Arkansas Cannabis Amendment

{b) Any person or entity which has a Cannabis Establishment license under Amendment 98 shall continue to exist and shall be recognized by the ABC and may continue operating with their current license until its expiration date and will be eligible for renewal under the ABC rules; shall continue to serve medical cannabis patients, but also provide sales for adult use.

(c) Patients with a medical cannabis card may purchase from any dispensary.

(d) The Medical Marijuana Commission is to be eliminated

Section 4. Cannabis adult use licensing and regulation by ABC and ADH and recognized medical conditions

(b) 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.

(5) Responsibilities of the ABC must include:

(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 its rules, and suspending, restricting, or revoking a state

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license; deposit all fees collected in the cannabis regulation fund established by this Amendment, and submit 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.

(b) ADH:

(1) 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 the condition is considered chronic, in which case the license would be good for five years. License fees shall be set at a reasonable amount with reduced rates for low income patients.

(2) Minors will be required to have a designated caregiver to purchase and administer cannabis to the minor.

(3) 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; Arnold-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); 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 on the grounds that the ADH arbitrarily refused to recognize that condition.

Section 5. Rules and regulations of the ABC

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(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 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.

(Fl 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.

(I) 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.

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(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 200 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 than establishments selling alcoholic beverages or beer or wine are limited.

(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) Is unreasonably 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;

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(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;

(3) The property where the proposed cannabis establishment 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 twelve months after the ABC begins to receive applications for cannabis establishments, the ABC may only accept applications for licensure from persons who are residents of Arkansas or if multiple owners, the majority of ownership stake must be held by residents of Arkansas; except if the ABC determines that additional licenses are necessary 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 begin to accept applications from out of state.

(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 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 and shall be brought under the Arkansas Administrative Procedure Act.

(i) Cultivation facilities and dispensaries holding medical marijuana licenses under Amendment 98 shall be grandfathered into this Amendment and may provide cannabis to adults 21 years of age and older while continuing to serve the patients with a medical cannabis card.

Section 7. Acts permitted and not permitted by cannabis establishments, processors, and transporters

(a) A cannabis establishment, processor, or transporter, or person acting on their behalf:

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(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 its 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 interfere with the normal operation of the establishment. For Fourth Amendment purposes, cannabis establishments are "closely regulated businesses."

(5) May not sell or otherwise transfer cannabis that was not produced, distributed, and taxed in compliance with this Amendment.

(6) May not allow minors to 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 General Assembly. In a criminal prosecution or regulatory action, there is a defense for transferring, selling, 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) Cultivator licenses shall have no limit on the number of plants that can be produced.

(10) 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.

(11) 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:

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(1) The General Assembly may determine which violations of this Amendment are misdemeanors and which will be violations of ABC regulations. Because this Amendment establishes that 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 General Assembly.

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 lQQ!lF in any public place, motor vehicle, or within the curtilage of any residential structure.

(5) The smoking 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 smoking within a municipality that has authorized smoking 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, 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.

(6) 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, is not allowed, with or without a medical permit. A minor in school who has a medical cannabis card, however, can be administered their medication by the school nurse, as with any other pharmaceutical medication.

(7) 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.

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(a) 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's 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.")

(b) This Amendment allows a person to prohibit or otherwise regulate the smoking, 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 smoking 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 are knowingly ignored by the tenant.

Section 9. Acts permitted under this Amendment

As a state constitutional right, a person 21 year 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 four 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 exposed to cannabis.

(b) On the person or in a vehicle:

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(1) Possession of up to four ounces is not a criminal offense in Arkansas as long as it is not visible to others.

(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 grounds for seizing or forfeiting property; not grounds for arrest, prosecution, or penalty in any manner, including 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, although 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 or other party requesting denial of custody or visitation to make the record for review, and nothing will be presumed. Appellate review is also de nova. 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 Department 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 of probation or parole or other penalty solely for possession of a personal or medical use quantity, no matter that possession of cannabis is a federal offense. The People of Arkansas find that is is not a reason for limitation of their right to possess small quantities or use in Arkansas because possession of small amounts as provided in this Amendment is not a criminal offense. Probation or parole may, however, limit non medical consumption with a showing of a rehabilitative need as long as it exists.

(f) Other acts:

(1) 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.

(2) 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

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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 cast for circuit clerk in the preceding 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 shall 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.

(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 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.

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(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

(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 and an 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.

(d) However, medical cannabis consumers shall only pay sales tax at the same rate as prescription drugs.

(e) 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.

(f) 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.

(g) After five years, the General Assembly may reevaluate tax rates on adult use sales.

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.

(c) The Treasurer shall allocate state money collected under this Amendment as follows for legislative appropriation:

(1) 100% for public pre-K-12 program;

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(2) Any surplus will go to public school teacher salaries

(d) County and city sales taxes shall be disbursed to their respective General Fund or the tourism tax fund.

Section 13. Prior convictions for those in possession of 16 ounces or less

(a) Any person convicted of possession, 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.

(f) If the record is visible to any state agency or police agency, it shall state "Sealed under Amendment_" [whichever number this Amendment is assigned by the Secretary of State].

Section 14. 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 15. Reciprocity

Medical cannabis patient cards from any state, the District of Columbia, any U.S. territory, possession, commonwealth, or tribe or tribal nation, or Canada are fully recognized in Arkansas.

Section 16. 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.

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(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 17. Changes to this Amendment

(a) Changes to this Amendment may only be made by a supermajority three-fourths vote of the General Assembly, 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 shall not be repealed or changed:

(1) This Amendment shall not be repealed except by a vote of the People.

(2) The implementation of this Amendment shall not be delayed.

(3) The number of dispensaries shall not be reduced.

(4) The release of those individuals incarcerated in Arkansas prisons for cannabis possession or the sealing of their records shall not be repealed.

(5) The right for individuals to cultivate their own cannabis shall not be repealed, nor the number of plants allowed reduced.

(6) The allowable number of cannabis plants cultivated by dispensaries shall not be reduced.

(7) The taxes on medical use of cannabis shall not be increased.

(8) The tax disbursement shall not be altered.

Section 18. 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 that the General Assembly adopts laws for clarification or amplification does not make a provision not self-executing.

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(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 17. Changes to this Amendment

(a) Changes to this Amendment may only be made by a supermajority three-fourths vote of the General Assembly, 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 shall not be repealed or changed:

(1) This Amendment shall not be repealed except by a vote of the People.

(2) The implementation of this Amendment shall not be delayed.

(3) The number of dispensaries shall not be reduced.

(4) The release of those individuals incarcerated in Arkansas prisons for cannabis possession or the sealing of their records shall not be repealed.

(5) The right for individuals to cultivate their own cannabis shall not be repealed, nor the number of plants allowed reduced.

(6) The allowable number of cannabis plants cultivated by dispensaries shall not be reduced.

(7) The taxes on medical use of cannabis shall not be increased.

(8) The tax disbursement shall not be altered.

Section 18. 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 that the General Assembly adopts laws for clarification or amplification does not make a provision not self-executing.

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