Arkansas Medical Marijuana Commission's directives taking shape

The Arkansas Medical Marijuana Commission is nearing completion on its rules governing facilities that grow and sell the drug for use by patients.

Commission Chairman Ronda Henry-Tillman told members Tuesday to review carefully the draft regulations and prepare for a final vote at the panel's next meeting.

That meeting is scheduled for 3:30 p.m. Feb. 21 at 1515 W. Seventh St. in Little Rock.

If the rules are approved, the commission will begin taking written public comments. If more than 25 people request a public hearing to comment, then the commission is required to provide one. The rules also will face review by lawmakers.

Given public interest in the panel's work, commission member Carlos Roman jokingly asked whether War Memorial Stadium would be available for the hearing.

[MARIJUANA BILL TRACKER: Status of all bills tied to marijuana in Arkansas legislature]

While lawmakers have proposed changes to the commission's duties -- including a bill that would halt implementation until the federal government changes the law to allow medical marijuana -- commission members said Tuesday that they have to move forward.

"The only concern I have is seeing this thing set up for a successful launch," Roman said when asked about one proposed change, to give the commission the power to decide whether dispensaries should be allowed to grow marijuana. "I'm going to try to uphold the amendment as they wrote it."

The Arkansas Medical Marijuana Amendment, approved by voters in November, allows the commission to authorize between 20 and 40 dispensaries and between four and eight cultivation facilities. In its draft rules, the commission would authorize 32 dispensaries and five cultivation facilities. The commission is one of three agencies involved in starting up the process of allowing Arkansans to use medical marijuana. Other agencies are in charge of inspecting the facilities and issuing registry cards for patients.

Cultivation facilities will be chosen by the commission based on the merits of their applications. An application will cost $15,000. Unsuccessful applicants will receive $7,500 back.

Applicants must provide proof of assets or a surety bond of $1 million and proof of at least $500,000 in liquid assets.

Successful applicants will have to pay an annual $100,000 licensing fee and submit an initial $500,000 performance bond.

Dispensary applicants will have to meet minimum requirements to enter a lottery to draw numbers in order to present their plans to the commission. The commission can then approve or deny their license applications.

Applications cost $7,500. Unsuccessful applicants will receive half the fee back.

Dispensaries would be allowed to grow up to 50 "mature" plants under the marijuana amendment, though legislation has been filed to remove that provision.

Dispensaries that opt not to grow any marijuana will pay a $2,500 annual licensing fee.

However, dispensaries that choose to grow marijuana will have to provide proof of assets or a $200,000 surety bond and proof of at least $100,000 in liquid assets.

They also will have to pay an annual $25,000 fee and initially hold a $100,000 performance bond.

David Couch, the Little Rock lawyer who sponsored the constitutional amendment, said the grow provision for dispensaries was intended to allow dispensaries to produce particular varieties that might not be grown by cultivators and to act as a check on the pricing power of the cultivation facilities, which would grow most of the marijuana.

Two other state entities also are required to develop rules under the Arkansas Medical Marijuana Amendment.

The Alcoholic Beverage Control Division of the Department of Finance and Administration will inspect the dispensaries where marijuana is sold and the cultivation facilities where it's grown. The division has yet to approve its rules.

The Department of Health will issue registry identification cards for patients who have any of 18 qualifying conditions as defined in the amendment. Among the permitted conditions are cancer, glaucoma, Tourette's syndrome, Alzheimer's disease and hepatitis C.

The state Board of Health approved its rules Jan. 26. Robert Brech, the department's general counsel, said in an email that the board will hold a public hearing March 10 at 4815 W. Markham St. to allow for public comment.

Metro on 02/08/2017