Arkansas House Bill HB1722 Latest Draft

                            Stricken language would be deleted from and underlined language would be added to present law. 
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State of Arkansas     1 
95th General Assembly A Bill     2 
Regular Session, 2025  	HOUSE BILL 1722 3 
 4 
By: Representative J. Moore 5 
By: Senator G. Stubblefield 6 
 7 
For An Act To Be Entitled 8 
AN ACT TO PROVIDE FOR THE REGULATION OF HEMP-DERIVED 9 
PRODUCTS BY THE ARKANSAS TOBACCO CONTROL BOARD; TO 10 
AMEND THE ARKANSAS LAW TO ALLOW THE REGULATION AND 11 
PURCHASE OF HEMP-DERIVED PRODUCTS; TO DECLARE AN 12 
EMERGENCY; AND FOR OTHER PURPOSES. 13 
 14 
 15 
Subtitle 16 
TO PROVIDE FOR THE REGULATION OF HEMP -17 
DERIVED PRODUCTS BY THE ARKANSAS TOBACCO 18 
CONTROL BOARD; TO AMEND THE ARKANSAS LAW 19 
TO ALLOW THE REGULATION AND PURCHASE OF 20 
HEMP-DERIVED PRODUCTS; AND TO DECLARE AN 21 
EMERGENCY. 22 
 23 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 
 25 
 SECTION 1.  Arkansas Code § 5-64-101(16)(B)(vi), concerning the 26 
exclusion from the definition of "marijuana" within the Uniform Controlled 27 
Substances Act, is amended to read as follows: 28 
 (vi)  Hemp-derived cannabidiol that: Hemp as defined 29 
in § 20-56-501 et seq., or 30 
 (a)  Contains not more than three -tenths of one 31 
percent (0.3%) of delta -9 tetrahydrocannabinol (THC) on a dry weight basis as 32 
verified by a nationally accredited laboratory for quality, purity, and 33 
accuracy standards; and 34 
 (b)  Is not approved by the United States Food 35 
and Drug Administration for marketing as a medication; 36    	HB1722 
 
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 1 
 SECTION 2.  Arkansas Code § 5 -64-215(a)(2), concerning the substances 2 
in Schedule VI of the Uniform Controlled Substances Act, is amended to read 3 
as follows: 4 
 (2)  Tetrahydrocannabinols, unless the tetrahydrocannabinol is: 5 
 (A)  Contained in hemp-derived cannabidiol hemp or a hemp-6 
derived product under § 20 -56-501 et seq.; 7 
 (B)  Not more than three -tenths of one percent (0.3%) of 8 
delta-9 tetrahydrocannabinol in the hemp -derived cannabidiol on a dry weight 9 
basis as verified by a nationally accredited laboratory for quality, purity, 10 
and accuracy standards; and 11 
 (C)(B) Not approved Approved by the United States Food and 12 
Drug Administration for marketing as a medication; 13 
 14 
 SECTION 3.  Arkansas Code § 5 -64-215(a)(5)(A)(i), concerning the 15 
substances in Schedule VI of the Uniform Controlled Substances Act, is 16 
amended to read as follows: 17 
 (A)(i)  Tetrahydrocannabinols, including without limitation 18 
the following: 19 
 (a)  Delta-1 cis or trans tetrahydrocannabinol , 20 
otherwise known as a delta -9 cis or trans tetrahydrocannabinol, and its 21 
optical isomers; 22 
 (b)  Delta-6 cis or trans tetrahydrocannabinol , 23 
otherwise known as a delta -8 cis or trans tetrahydrocannabinol, and its 24 
optical isomers; and 25 
 (c)  Delta-3,4 cis or trans 26 
tetrahydrocannabinol , otherwise known as a delta -6a,10a cis or trans 27 
tetrahydrocannabinol, and its optical isomers ; 28 
 (d)  Delta-10 cis or trans 29 
tetrahydrocannabinol, and its optical isomers; 30 
 (e)  Delta-8 tetrahydrocannabinol acetate 31 
ester; 32 
 (f)  Delta-9 tetrahydrocannabinol acetate 33 
ester; 34 
 (g)  Delta-6a,10a tetrahydrocannabinol acetate 35 
ester; 36    	HB1722 
 
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 (h)  Delta-10 tetrahydrocannabinol acetate 1 
ester; 2 
 (i)  A product derived from industrial hemp 3 
that was produced as a result of a synthetic chemical process that converted 4 
the industrial hemp or a substance contained in the industrial hemp into 5 
delta-8, delta-9, delta-6a,10a, or delta-10 tetrahydrocannabinol including 6 
their respective acetate esters; and 7 
 (j)  Any other psychoactive substance derived 8 
therein. 9 
 10 
 SECTION 4.  Arkansas Code § 19 -6-831, effective until the contingency 11 
in Acts 2023, No. 629, § 17, is met, is amended to read as follows: 12 
 19-6-831.  Arkansas Tobacco Control Revenue Fund. 13 
 (a)  There is created on the books of the Treasurer of State, the 14 
Auditor of the State, and the Chief Fiscal Officer of the State a special 15 
revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 16 
 (b)(1)  All permit and license fees received by Arkansas Tobacco 17 
Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 18 
seq., and § 20-56-501 et seq. shall be deposited into the State Treasury as 19 
special revenues to the credit of the fund. 20 
 (2)  The fund also shall consist of any other revenues authorized 21 
by law. 22 
 (c)(1)  The fund shall be used for expenses incurred by Arkansas 23 
Tobacco Control in the organization, maintenance, operation, and merchant 24 
education and training with regard to enforcement of § 5 -27-227, the Arkansas 25 
Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-501 et seq., 26 
and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 27 
 (2)  Expenditures of moneys in the fund are subject to the 28 
General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 29 
Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 30 
laws. 31 
 (3)  The receipts and disbursements of Arkansas Tobacco Control 32 
shall be audited annually by Arkansas Legislative Audit. 33 
 34 
 SECTION 5.  Arkansas Code § 19 -6-831, effective if the contingency in 35 
Acts 2023, No. 629, § 17, is met, is repealed. 36    	HB1722 
 
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 19-6-831. Arkansas Tobacco Control Revenue Fund. 1 
 (a)  There is created on the books of the Treasurer of State, the 2 
Auditor of the State, and the Chief Fiscal Officer of the State a special 3 
revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 4 
 (b)(1)  All permit and license fees received by Arkansas Tobacco 5 
Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 6 
seq., and § 20-56-401 et seq., shall be deposited into the State Treasury as 7 
special revenues to the credit of the fund. 8 
 (2)  The fund also shall consist of any other revenues authorized 9 
by law. 10 
 (c)(1)  The fund shall be used for expenses incurred by Arkansas 11 
Tobacco Control in the organization, maintenance, operation, and merchant 12 
education and training with regard to enforcement of § 5 -27-227, the Arkansas 13 
Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-401 et seq., 14 
and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 15 
 (2)  Expenditures of moneys in the fund are subject to the 16 
General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 17 
Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 18 
laws. 19 
 (3)  The receipts and disbursements of Arkansas Tobacco Control 20 
shall be audited annually by Arkansas Legislative Audit. 21 
 22 
 SECTION 6.  Arkansas Code Title 20, Chapter 56, is amended to add an 23 
additional subchapter to read as follows: 24 
Subchapter 5 - Hemp-Derived Products 25 
 26 
 20-56-501.  Purpose. 27 
 It is the intent of this subchapter to provide regulation of hemp -28 
derived products to: 29 
 (1)  Assure that when hemp -derived products are distributed in 30 
this state, they are not contaminated and are distributed only to persons 31 
authorized to receive hemp -derived products; 32 
 (2)  Protect and promote the public health and welfare of the 33 
residents of this state; 34 
 (3)  Provide for the close supervision and control of the 35 
permitting of persons to sell hemp and hemp -derived products in this state to 36    	HB1722 
 
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ensure that hemp and hemp -derived products are fresh, not contaminated, and 1 
are properly taxed, stamped, stored, and distributed only to persons 2 
authorized to receive hemp and hemp -derived products in this state; 3 
 (4)  Impose permits, fees, taxes, and restrictions on the 4 
privilege of dealing in or otherwise doing business in hemp and hemp	-derived 5 
products in order to promote the public health and welfare of the residents 6 
of this state and to protect the revenue collection procedures incorporated 7 
within this subchapter; and 8 
 (5)  Create a three-tiered system of a manufacturer, wholesaler, 9 
and retailer of hemp and hemp -derived products. 10 
 11 
 20-56-502.  Applicability. 12 
 (a)  This subchapter does not permit a person to: 13 
 (1)  Undertake a task under the influence of hemp -derived 14 
products when doing so would constitute negligence or professional 15 
malpractice; or 16 
 (2)  Possess, smoke, or otherwise engage in the use of hemp or 17 
hemp-derived products: 18 
 (A)  On a school bus; 19 
 (B)  On the grounds of a daycare center, preschool, primary 20 
or secondary school, college, or university; 21 
 (C)  At a drug or alcohol treatment facility; 22 
 (D)  At a community or recreation center; 23 
 (E)  In a correctional facility; 24 
 (F)  On any form of public transportation; or 25 
 (G)  On any property that is under control of the Arkansas 26 
National Guard or the United States military; or 27 
 (H)  In the operation, navigation, or actual physical 28 
control of a motor vehicle, aircraft, motorized watercraft, or any other 29 
vehicle drawn by power other than muscle power while under the influence of 30 
hemp-derived products. 31 
 (b)  This subchapter does not require: 32 
 (1)  An employer to accommodate the ingestion of hemp -derived 33 
products in a workplace or an employee working while under the influence of 34 
hemp-derived products; 35 
 (2)  An individual or establishment in lawful possession of 36    	HB1722 
 
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property to allow a guest, client, customer, or other visitor to use hemp	-1 
derived products on or in that property; or 2 
 (3)  An individual or establishment in lawful possession of 3 
property to admit a guest, client, customer, or other visitor who is 4 
inebriated as a result of his or her use of hemp -derived products. 5 
 6 
 20-56-503.  Definitions. 7 
 As used in this subchapter: 8 
 (1)  "Annual" or "annually" means the fiscal year from July 1 9 
through the next June 30; 10 
 (2)  "Approved laboratory" means a laboratory that is accredited 11 
by the National Institute on Drug Abuse, the National Environmental 12 
Laboratory Accreditation Conference, the International Organization for 13 
Standardization or similar accrediting entity as determined by Arkansas 14 
Tobacco Control and that has been approved by the Director of Arkansas 15 
Tobacco Control specifically for the testing of hemp -derived products; 16 
 (3)  "Consumer" means a member of the public at large; 17 
 (4)(A)  "Current use of hemp or hemp -derived product" means use 18 
of hemp-derived products that justifies the good faith belief of an employer 19 
that an applicant or employee is engaging in the use of hemp or hemp	-derived 20 
product. 21 
 (B)  "Current use of hemp or hemp -derived product" is 22 
presumed when a positive test result for delta -9 tetrahydrocannabinol -9 23 
carboxylic acid, also known as THCA; 24 
 (5)  "Days" means calendar days unless otherwise specified; 25 
 (6)  "Employee" means an individual employed by an employer; 26 
 (7)  "Employer" means an entity that employs one (1) or more 27 
employees or independent contractors; 28 
 (8)(A)  "Good faith belief" means reasonable reliance on a fact, 29 
or that which is held out to be factual, without intent to deceive or be 30 
deceived and without reckless or malicious disregard for the truth. 31 
 (B)  "Good faith belief" does not include a belief formed 32 
with gross negligence. 33 
 (C)  "Good faith belief" may be based on any of the 34 
following: 35 
 (i)  Observed conduct, behavior, or appearance; 36    	HB1722 
 
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 (ii)  Information reported by a person believed to be 1 
reliable, including without limitation a report by a person who witnessed the 2 
use or possession of hemp or hemp -derived products by an applicant or 3 
employee in the workplace; 4 
 (iii)  Written, electronic, or verbal statements from 5 
the employee or other persons; 6 
 (iv)  Lawful video surveillance; 7 
 (v)  A record of a government agency, law enforcement 8 
agency, or court; 9 
 (vi)  A positive test result for delta -9 10 
tetrahydrocannabinol -9 carboxylic acid; 11 
 (vii)  A warning label, usage standard, or other 12 
printed material that accompany instructions for usable hemp or hemp	-derived 13 
products; 14 
 (viii)  Information from a physician, medical review 15 
officer, or a retailer; 16 
 (ix)  Information from reputable reference sources in 17 
print or on the internet; 18 
 (x)  Other information reasonably believed to be 19 
reliable or accurate; or 20 
 (xi)  Any combination of the items listed in 21 
subdivision (8)(C)(i) -(x) of this section; 22 
 (9)  "Hemp" means the plant Cannabis sativa and any part of the 23 
plant, including the seeds of the plant, and all derivatives, extracts, 24 
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 25 
not, with a delta-9 tetrahydrocannabinol concentration of not more than 26 
three-tenths percent (0.3%) on a dry weight basis; 27 
 (10)  "Hemp-derived e-liquid product" means a liquid hemp -derived 28 
product that contains hemp that is inhaled when using a vapor product, and 29 
that may or may not include without limitation propylene glycol, vegetable 30 
glycerin, and flavorings; 31 
 (11)(A)  "Hemp-derived product" means a product intended for 32 
human consumption including consumption by vapor inhalation as defined in 33 
this subchapter, or a component of a product, that is derived from hemp, 34 
including all derivatives, extracts, cannabinoids, isomers, acids, salts, and 35 
salts of isomers, and any product made from such derivatives. 36    	HB1722 
 
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 (B)  "Hemp-derived product" includes a hemp -derived e-1 
liquid product and a vapor product. 2 
 (C)  "Hemp-derived product" does not include: 3 
 (i)  A product intended for animal consumption or 4 
use; 5 
 (ii)  A cosmetic as defined by § 20 -56-202; 6 
 (iii)  Any marijuana, medical marijuana, or other 7 
cannabis product containing delta -9 tetrahydrocannabinol greater than three -8 
tenths percent (0.3%) on a dry weight basis as administered, licensed, and 9 
otherwise regulated by the Alcoholic Beverage Control Division, the Medical 10 
Marijuana Commission, and the Department of Health under the Arkansas Medical 11 
Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 12 
 (iv)  A raw hemp product, including any intact plant, 13 
flower, buds, leaves, or stems; 14 
 (v)  A drug in the form for which an application 15 
filed in accordance with 21 U.S.C. § 355 is approved by the United States 16 
Food and Drug Administration; 17 
 (vi)  A dietary supplement as defined by the Federal 18 
Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or 19 
 (vii)  A fabric, textile, cordage, fiber, fuel, 20 
paper, construction material, plastic, seed, seed meal, and seed oil; 21 
 (12)(A)  "Manufacturer" means a person that manufactures, 22 
fabricates, assembles, or processes a hemp -derived product, including without 23 
limitation federally licensed importers and federally licensed distributors 24 
that deal in hemp-derived products. 25 
 (B)  "Manufacturer" includes: 26 
 (i)  An entity representing the manufacturer with 27 
regard to the sale of hemp -derived products produced by the manufacturer to 28 
wholesalers or permitted retailers; and 29 
 (ii)  A person that mixes, compounds, extracts, 30 
infuses, blends, processes, repackages, or resizes hemp -derived products 31 
including the extraction of cannabinoids from hemp biomass. 32 
 (C)  "Manufacturer" does not include a person that engages 33 
in the agricultural production of hemp, such as growing, planting, and 34 
harvesting of raw hemp biomass regulated by the State Plant Board; 35 
 (13)  "Minor" means a person who is under twenty -one (21) years 36    	HB1722 
 
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of age; 1 
 (14)  "Person" means an individual, retailer, wholesaler, 2 
manufacturer, firm, association, company, partnership, limited liability 3 
company, corporation, joint -stock company, club, agency, syndicate, the State 4 
of Arkansas, county, municipal corporation or other political subdivision of 5 
the state, receiver, trustee, fiduciary, or trade association; 6 
 (15)  "Place of business" means the physical location: 7 
 (A)  Where orders for hemp -derived products are taken or 8 
received or where hemp -derived products are sold; and 9 
 (B)  That is on file with Arkansas Tobacco Control; 10 
 (16)  "Positive test result" means a result that is at or above 11 
the cutoff concentration level established by the United States Department of 12 
Transportation or state laws regarding being under the influence of delta	-9 13 
tetrahydrocannabinol, whichever is lower; 14 
 (17)  "Retailer" means a person that purchases hemp -derived 15 
products from permitted wholesalers for the purpose of selling the hemp	-16 
derived products in person and over the counter at retail to consumers; 17 
 (18)(A)  "Safety sensitive position" means any position involving 18 
a safety sensitive function under federal regulations governing drug and 19 
alcohol testing adopted by the United States Department of Transportation or 20 
any other rules, guidelines, or regulations adopted by any other federal or 21 
state agency. 22 
 (B)  "Safety sensitive position" also means any position 23 
designated in writing by an employer as a safety sensitive position in which 24 
a person performing the position while under the influence of hemp -derived 25 
products may constitute a threat to health or safety, including without 26 
limitation a position: 27 
 (i)  That requires any of the following activities: 28 
 (a)  Carrying a firearm; 29 
 (b)  Performing life -threatening procedures; 30 
 (c)  Working with confidential information or 31 
documents pertaining to criminal investigations; or 32 
 (d)  Working with hazardous or flammable 33 
materials, controlled substances, food, or medicine; or 34 
 (ii)  In which a lapse of attention could result in 35 
injury, illness, or death, including without limitation a position that 36    	HB1722 
 
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includes the operating, repairing, maintaining, or monitoring of heavy 1 
equipment, machinery, aircraft, motorized watercraft, or motor vehicles as 2 
part of the job duties; 3 
 (19)(A)  "Sale" or "sell" means a transfer, exchange, or barter 4 
in any manner or by any means for any consideration, including distributing 5 
or shipping hemp-derived product in connection with a sale. 6 
 (B)  A sale "in" or "into" a state refers to the state in 7 
which the destination point of the hemp -derived product is located in the 8 
sale without regard to where title was transferred. 9 
 (C)  A sale "from" a state refers to the sale of a hemp -10 
derived product that is located in that state to the destination in question 11 
without regard to where title was transferred; 12 
 (20)  "Self-service display" means a display: 13 
 (A)  That contains a hemp -derived product, or any component 14 
of a hemp-derived product; 15 
 (B)  That is located in an area where customers are 16 
permitted; and 17 
 (C)  In which the hemp-derived product, or any component of 18 
a hemp-derived product is readily accessible to a customer without the 19 
assistance of a salesperson; 20 
 (21)  "Tetrahydrocannabinol" means a compound that is the 21 
natural, primary active cannabinoid substance or its equivalent contained in 22 
the plant of the genus cannabis or in the resinous extracts of the plant, 23 
including derivatives or isomers derived from such cannabinoids; 24 
 (22)(A)  "Under the influence" means symptoms of the current use 25 
of hemp or hemp-derived products that may negatively impact the performance 26 
of job duties or tasks or constitute a threat to health or safety. 27 
 (B)  "Under the influence" includes without limitation: 28 
 (i)  Symptoms of the applicant's or employee's 29 
speech, walking, standing, physical dexterity, agility, coordination, 30 
actions, movement, demeanor, appearance, clothing, odor, or other irrational 31 
or unusual behavior that are inconsistent with the usual conduct of the 32 
applicant or employee; 33 
 (ii)  Negligence or carelessness in operating 34 
equipment, machinery, or production or manufacturing processes; 35 
 (iii)  Disregard for safety; 36    	HB1722 
 
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 (iv)  Involvement in an accident that results in: 1 
 (a)  Damage to equipment, machinery, or 2 
property; 3 
 (b)  Disruption of a production or 4 
manufacturing process; or 5 
 (c)  An injury; or 6 
 (v) Other symptoms causing a reasonable suspicion 7 
that the current use of hemp or hemp -derived products may negatively impact 8 
the performance of job duties or tasks or constitute a threat to health or 9 
safety; 10 
 (23)  "Vapor product" means a hemp -derived product that is an 11 
electronic oral device of any size or shape that contains a vapor of hemp or 12 
hemp-derived e-liquid product that when used or inhaled simulates smoking, 13 
regardless of whether a visible vapor is produced, including without 14 
limitation a device that: 15 
 (A)  Is composed of a heating element, battery, electronic 16 
circuit, chemical process, mechanical device, or a combination of heating 17 
element, battery, electronic circuit, chemical process, or mechanical device; 18 
 (B)  Works in combination with a cartridge, other 19 
container, or liquid delivery device containing hemp or hemp -derived e-liquid 20 
product and manufactured for use with vapor products; 21 
 (C)  Is manufactured, distributed, marketed, or sold as any 22 
type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 23 
other produced name or descriptor; and 24 
 (D)  Does not include a product regulated as a drug or 25 
device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 26 
as it existed on January 1, 2015; 27 
 (24)  "Warehouse" means a place where hemp -derived products are 28 
stored for another person and to or from which place the hemp -derived 29 
products are shipped or delivered upon order by the owner of the hemp	-derived 30 
products to the warehouse; and 31 
 (27)  "Wholesaler" means a person that: 32 
 (A)  Does business within the state; 33 
 (B)  Purchases hemp-derived products from any source; 34 
 (C)  Distributes or sells the hemp -derived products to 35 
other wholesalers or retailers; and 36    	HB1722 
 
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 (D)  Does not distribute or sell the tobacco products, 1 
vapor products, alternative nicotine products, or e -liquid products at retail 2 
to consumers. 3 
 4 
 20-56-504.  Construction — Prohibitions. 5 
 (a)  A hemp-derived product shall not be delivered, sold, or otherwise 6 
distributed in this state except in conformity with all applicable laws and 7 
regulations, including this subchapter and rules promulgated under this 8 
subchapter. 9 
 (b)  A person shall not sell, deal with, deliver, cause to be delivered 10 
to a retailer or consumer, or otherwise do business in hemp -derived products 11 
without first registering with the Director of Arkansas Tobacco Control and 12 
obtaining a permit for that purpose. 13 
 (c)  A product intended for human consumption or inhalation that is 14 
derived from hemp and contains tetrahydrocannabinol shall not be permitted or 15 
allowed under the laws of this state, other than hemp -derived products. 16 
 (d)  A hemp-derived product shall be prepackaged and shelf stable. 17 
 (e)  A hemp-derived product shall not contain or include any of the 18 
following: 19 
 (1)  Alcoholic beverages, including without limitation beer, 20 
wine, intoxicating liquor, or any other alcoholic beverage as defined by the 21 
Arkansas Alcoholic Control Act, § 3 -1-101 et seq., and § 3 -5-202; 22 
 (2)  Products containing nicotine or tobacco; 23 
 (3)  Inhalable products or other products labeled or advertised 24 
for the purpose of smoking or in the form of a cigarette, cigar, or pre	-roll, 25 
or packaged or combined with other items designed to facilitate smoking such 26 
as rolling papers or pipes, except hemp -derived e-liquid products; or 27 
 (4)  Medical devices, prescription drugs, or drugs otherwise 28 
approved by the United States Food and Drug Administration. 29 
 (f)  The business of handling, receiving, possessing, storing, 30 
distributing, taking orders for, soliciting orders of, selling, offering for 31 
sale, and dealing in, through sale, barter, or exchange, hemp -derived 32 
products is declared to be a privilege under the laws of the State of 33 
Arkansas. 34 
 35 
 20-56-505.  Permits. 36    	HB1722 
 
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 (a)(1)  Each person listed in this section, before commencing business, 1 
or if already in business, before continuing business, shall pay an annual 2 
privilege fee and secure a permit from the Director of Arkansas Tobacco 3 
Control. 4 
 (2)  A person purchasing an existing permitted retail location 5 
may, with the permission of the seller and Arkansas Tobacco Control, operate 6 
under the selling owner's permit for no more than thirty (30) days from the 7 
date of the sale. 8 
 (b)(1)  In addition to securing a permit under subsection (a) of this 9 
section, a manufacturer whose products are sold in this state shall register 10 
the business with the Secretary of the Department of Finance and 11 
Administration. 12 
 (2)  A wholesaler of hemp -derived products shall secure the 13 
proper wholesale permit. 14 
 (3)  Every retailer of hemp -derived products that operates a 15 
place of business shall secure the proper retail permit. 16 
 (4)  Before issuing a manufacturer, wholesaler, or retailer 17 
permit, Arkansas Tobacco Control shall determine that the permit is not being 18 
issued in violation of prohibitions under § 20 -56-506. 19 
 (c)(1)  Permits shall be issued as follows: 20 
 (A)  A permit for a sole proprietorship is issued in the 21 
owner's name and in the fictitious business name, if any; 22 
 (B)(i)  A permit for a partnership or limited liability 23 
company is issued in the name of: 24 
 (a)  The managing partner or managing member; 25 
and  26 
 (b)  The partnership or limited liability 27 
company. 28 
 (ii)  If the managing partner or managing member of a 29 
limited liability company is a partnership, limited liability company, or 30 
corporation, then the permit shall be issued in the name of: 31 
 (a)  The president or chief executive officer; 32 
and 33 
 (b)  The partnership or limited liability 34 
company; and 35 
 (C) A permit for a publicly traded or nonpublicly traded 36    	HB1722 
 
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corporation is issued in the name of the president or chief executive officer 1 
of the corporation and in the name of the corporation. 2 
 (2)  It is a violation for a permitted entity not to provide 3 
written notification to the director within thirty (30) days of a change in 4 
the following: 5 
 (A)  The managing member of a partnership, managing member 6 
of a limited liability company, or president or chief executive officer of a 7 
corporation, partnership, or limited liability company; or 8 
 (B)  The stockholders effecting twenty -five percent (25%) 9 
or more of the total voting shares of a nonpublicly traded corporation. 10 
 (d)(1)  When an entity transfers a business permitted under this 11 
subchapter, the entity to which the business is transferred: 12 
 (A)  Shall apply for a new permit under this subchapter; 13 
 (B)  May be issued a new permit under this subchapter; and 14 
 (C)  May operate under the selling entity's permit for no 15 
more than thirty (30) days from the date of the sale. 16 
 (2)  When a partnership or limited liability company permitted 17 
under this subchapter changes, removes, or replaces the managing partner, 18 
managing member, president, or chief executive officer: 19 
 (A)  The existing permit issued under this subchapter is 20 
void; and 21 
 (B)  The partnership or limited liability company: 22 
 (i)  Shall apply for a new permit under this 23 
subchapter; 24 
 (ii)  May be issued a new permit under this 25 
subchapter; and 26 
 (iii)  May operate under the voided permit for no 27 
more than thirty (30) days from the date of the change, removal, or 28 
replacement of the managing member of a partnership, managing member of a 29 
limited liability company, or president or chief executive officer of a 30 
corporation, partnership, or limited liability company. 31 
 (3)  When a nonpublicly traded corporation permitted under this 32 
subchapter changes, removes, or replaces the president or chief executive 33 
officer named on the permit or changes, removes, or replaces a stockholder 34 
who owns fifty percent (50%) or more of the total voting shares of the 35 
nonpublicly traded corporation's stock: 36    	HB1722 
 
 	15 	03/10/2025 1:26:46 PM JMB422 
 (A)  The permit issued under this subchapter is void; and 1 
 (B)  The nonpublicly traded corporation: 2 
 (i)  Shall apply for a new permit under this 3 
subchapter; 4 
 (ii)  May be issued a new permit under this 5 
subchapter; and 6 
 (iii)  May operate under the voided permit for no 7 
more than thirty (30) days from the date of the change, removal, or 8 
replacement of the president, chief executive officer, or stockholder. 9 
 (4)  When a publicly traded corporation permitted under this 10 
subchapter changes, removes, or replaces the president or chief executive 11 
officer named on the permit or changes, removes, or replaces a stockholder 12 
who owns fifty percent (50%) or more of the total voting shares of the 13 
publicly traded corporation's stock: 14 
 (A)  The permit issued under this subchapter is void; and 15 
 (B)  The publicly traded corporation: 16 
 (i)  Shall apply for a new permit under this 17 
subchapter; 18 
 (ii)  May be issued a new permit under this 19 
subchapter; and 20 
 (iii)  May operate under the voided permit for no 21 
more than thirty (30) days from the date of the change, removal, or 22 
replacement of the president, chief executive officer, or stockholder. 23 
 (e)  An entity may apply for and be issued a permit under this 24 
subchapter in advance of the effective date of the permit to facilitate 25 
continuity of business operations. 26 
 27 
 20-56-506.  Permits - Limitation of interests 28 
 (a)(1)  A person with an ownership, equity, or management interest in a 29 
permitted wholesaler may also have an ownership, equity, or management 30 
interest in a permitted retailer, but shall not have any ownership, equity, 31 
or management interest in a manufacturer. 32 
 (2)  A person with an ownership, equity, or management interest 33 
in a permitted retailer may also have an ownership, equity, or management 34 
interest in a permitted wholesaler, but a retailer shall not have any 35 
ownership, equity, or management interest in a manufacturer. 36    	HB1722 
 
 	16 	03/10/2025 1:26:46 PM JMB422 
 (3)  A person with an ownership, equity, or management interest 1 
in a permitted manufacturer shall not have any ownership, equity, or 2 
management interest in a permitted wholesaler or retailer. 3 
 (b)  A management company shall not manage a permitted manufacturer and 4 
a permitted wholesaler or retailer simultaneously. 5 
 (c)  A permit to manufacture hemp -derived products shall not be issued 6 
to any person with an ownership, equity, or management interest in either a 7 
wholesaler or retailer. 8 
 9 
 20-56-507.  Permits — Location — Background check required. 10 
 (a)(1)  A retail, wholesale, or manufacturer permit shall not be issued 11 
to a residential address, a mobile structure or vehicle, or for an address 12 
not zoned appropriately for the business seeking to secure the permit. 13 
 (2)  A retail or wholesale permit may be issued to a person who 14 
currently holds a retail or wholesale permit if the locations are different. 15 
 (b)  A permit shall not be issued to: 16 
 (1)  A person who has pleaded guilty or nolo contendere to or 17 
been found guilty of a felony; or 18 
 (2)  A business owned or operated, in whole or in part, by a 19 
person who has pleaded guilty or nolo contendere to or been found guilty of a 20 
felony. 21 
 (c)  Arkansas Tobacco Control shall conduct a criminal background check 22 
on each permit applicant and application, utilizing its Arkansas Crime 23 
Information Center access as a law enforcement agency, in accordance with §§ 24 
12-12-1008 — 12-12-1011. 25 
 26 
 20-56-508.  Permits — Annual privilege fees. 27 
 (a)  The annual privilege fee for each permit authorized by this 28 
subchapter is established as follows: 29 
 (1)  Wholesale Hemp-derived Products Permit .............. $1,000 30 
 (2)  Retail Hemp-derived Products Permit ................... $100 31 
 (3)  Manufacturer Hemp -derived Products Permit .......... $10,000 32 
 (b)(1)  All permits issued under this subchapter shall expire on June 33 
30 following the effective date of issuance. 34 
 (2)(A)  Upon the failure to renew timely a permit issued under 35 
this subchapter, a late fee of two (2) times the amount of the appropriate 36    	HB1722 
 
 	17 	03/10/2025 1:26:46 PM JMB422 
permit fee shall be owed in addition to the annual privilege fee for the 1 
renewal of the permit. 2 
 (B)  An expired permit that is not renewed before September 3 
1 following the expiration of the permit shall not be renewed, and the holder 4 
of the expired permit shall submit an application for a new permit. 5 
 (3)  A permit shall not be issued to the applicant until the late 6 
fee and the permit fee have been paid. 7 
 (c)  A permit issued under this subchapter shall not be renewed for a 8 
permit holder who is delinquent more than ninety (90) days on a privilege 9 
fee, tax relating to the sale or dispensing of hemp -derived products, or any 10 
other state and local tax due the Secretary of the Department of Finance and 11 
Administration. 12 
 (d)  A person who is delinquent more than ninety (90) days on a state 13 
or local tax may not renew or obtain a permit issued under this subchapter 14 
except upon certification that the permit holder has entered into a repayment 15 
agreement with the Department of Finance and Administration and is current on 16 
the payments. 17 
 (e)  A permit holder who has unpaid fees, civil penalties, or an 18 
unserved permit suspension may not transfer, sell, or give hemp -derived 19 
product inventory of the business associated with the permit to a third party 20 
until all fees and civil penalties are paid in full and all suspensions are 21 
completed successfully, nor shall any third party be issued a new permit for 22 
the business location. 23 
 (f)  Each manufacturer and wholesaler shall retain copies of all 24 
invoices for the purchase or sale of any hemp -derived products for a period 25 
of at least three (3) years subject to examination by the secretary and the 26 
Director of Arkansas Tobacco Control or their authorized agents upon demand 27 
at any time during regular business hours. 28 
 (g)  A retailer shall: 29 
 (1)  Maintain copies of at least the last ninety (90) days of 30 
hemp-derived product invoices, which the retailer shall provide immediately 31 
upon demand; 32 
 (2)(A)  Make the invoices that are older than ninety (90) days 33 
available upon demand at any time during regular business hours in the retail 34 
store. 35 
 (B)  Except as provided in subdivision (g)(2)(C) of this 36    	HB1722 
 
 	18 	03/10/2025 1:26:46 PM JMB422 
section, an agent of Arkansas Tobacco Control may determine a reasonable time 1 
frame for which invoices are to be provided under subdivision (g)(2)(A) of 2 
this section. 3 
 (C)  An invoice that is provided seventy -two (72) hours or 4 
more after the demand shall not be considered for purposes of determining a 5 
violation of this subsection; 6 
 (3)  Retain invoices for all hemp -derived products in the retail 7 
store even if the invoice for the hemp -derived products is older than three 8 
(3) years; 9 
 (4)  Maintain a copy of the signed server awareness forms for 10 
each employee of the retailer who engages in the sale of hemp -derived 11 
products, which the retailer shall provide immediately upon demand; 12 
 (5)(A)  Maintain a copy of any complete transfer forms showing: 13 
 (i)  The hemp-derived products that were transferred; 14 
 (ii)  The permitted location from which the hemp -15 
derived products were transferred; and 16 
 (iii)  When the transfer occurred. 17 
 (B)  A transfer form shall be completed contemporaneously 18 
with the transfer and shall be provided immediately by the retailer upon 19 
demand; and 20 
 (6)  If any inventory was submitted with a permit application, 21 
maintain a copy of the submitted inventory form, which the retailer shall 22 
provide immediately upon demand. 23 
 (h)  A wholesaler and manufacturer shall: 24 
 (1)  Maintain three (3) years of hemp -derived product invoices 25 
that are available upon demand during regular business hours in the permitted 26 
location; and 27 
 (2)  Permit Arkansas Tobacco Control and authorized personnel of 28 
Arkansas Tobacco Control to enter into and inspect stock of hemp -derived 29 
products, and any documents and records relating to receipts and 30 
disbursements of hemp -derived products. 31 
 (i)  An invoice from a wholesaler to a retailer shall contain the name 32 
or other identifying information of the wholesaler and the retailer. 33 
 (j)(1)  A nonresident wholesaler shall also keep a record of all hemp	-34 
derived products purchased for distribution within this state. 35 
 (2)  All books, records, and memoranda pertaining to the purchase 36    	HB1722 
 
 	19 	03/10/2025 1:26:46 PM JMB422 
and sale of the hemp -derived products under subdivision (j)(1) of this 1 
section shall be subject to inspection by Arkansas Tobacco Control. 2 
 (k)  Authorized personnel of Arkansas Tobacco Control shall not release 3 
to the Arkansas Tobacco Control Board or to the public any information 4 
identifying customers of the manufacturer, wholesaler, or warehouse except 5 
when necessary to notify the board of alleged violations of this subchapter. 6 
 7 
 20-56-509.  Permits — Not transferable — Duplicates. 8 
 (a)  A permit under this subchapter is not transferable to a: 9 
 (1)  Subsequent owner or operator; or 10 
 (2)  Different physical location unless the permit holder obtains 11 
permission from the Director of Arkansas Tobacco Control. 12 
 (b)  A person purchasing an existing permitted retail location may 13 
operate under the selling owner's permit for no more than thirty (30) days 14 
from the date of the sale. 15 
 (c)  When a permit is lost by a permit holder, a duplicate permit may 16 
be issued upon application and for a fee of five dollars ($5.00) when 17 
sufficient proof has been provided to the director. 18 
 19 
 20-56-510.  Permits — Suspension or revocation. 20 
 (a)  All permits issued under this subchapter may be suspended or 21 
revoked by the Director of Arkansas Tobacco Control for any violation of this 22 
subchapter or the rules pertaining to this subchapter, subject to a hearing 23 
before the Arkansas Tobacco Control Board at the next regularly scheduled 24 
board meeting. 25 
 (b)  The director may revoke all permits to deal in hemp -derived 26 
products associated with any person who is convicted of or pleads guilty or 27 
nolo contendere to a criminal violation of this subchapter, subject to a 28 
hearing before the board at the next regularly scheduled board meeting. 29 
 (c)(1)  The director shall revoke all permits to manufacture hemp -30 
derived products associated with any person who acquires in any contractual 31 
or de facto ownership, equity, or management interest or control in a 32 
wholesaler or retailer of hemp -derived products simultaneously with the 33 
permit to manufacture hemp -derived products. 34 
 (2)  The director’s decision to revoke a permit may be appealed 35 
to the board within thirty (30) calendar days of receiving notice of the 36    	HB1722 
 
 	20 	03/10/2025 1:26:46 PM JMB422 
permit revocation. 1 
 2 
 20-56-511.  Advertising prohibitions and packaging requirements. 3 
 (a)  A hemp-derived product distributed or offered for sale in this 4 
state shall include the following information on the product label or product 5 
packaging: 6 
 (1)  The name of the hemp -derived product manufacturer, whether 7 
in-state or out-of-state, and distributor, whether in -state or out-of-state; 8 
 (2)  Product labeling clearly showing that the product contains 9 
material derived from hemp and not marijuana or medical marijuana; and 10 
 (3)  Any other marking, words, statement, or symbol as required 11 
by Arkansas Tobacco Control by rule. 12 
 (b)  A person shall not advertise, market, or offer for sale in this 13 
state any hemp-derived product by using, in the labeling or design of the 14 
product, its packaging, or in its advertising or marketing materials, trade 15 
dress, trademarks, branding, or other related imagery that: 16 
 (1)  Imitates or replicates those of food brands or other related 17 
products that are marketed to or are commonly associated with children or 18 
minors, including without limitation breakfast cereal, cookies, juice drinks, 19 
frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 20 
 (2)  Depicts or signifies characters or symbols that are known to 21 
a reasonable person to appeal primarily to or are commonly associated with 22 
children or minors, including without limitation superheroes, cartoons or 23 
cartoon characters, including anime characters, comic book characters, video 24 
game characters, television show characters, movie characters, mythical 25 
creatures, unicorns, or that otherwise incorporates related imagery or 26 
scenery; or 27 
 (3)  Uses the terms "candy", "candies", “cake",” “cakes", “pies", 28 
or “cupcakes” or any variant of these terms, or any other term referencing a 29 
type or brand of candy, cakes, pastries, or pies, including types or brands 30 
of candy, cakes, pastries, or pies that do not include the words "candy", 31 
"candies", “cake", “cakes", “pies", or “cupcakes” in their names, labels, or 32 
slogans. 33 
 34 
 20-56-512.  Testing. 35 
 (a)  All hemp-derived products sold in this state shall be tested by an 36    	HB1722 
 
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approved laboratory. 1 
 (b)  An approved laboratory shall be an independent third -party 2 
laboratory. 3 
 (c)  A hemp-derived product sold in this state shall be tested for the 4 
following and marked as to the hemp -derived product chemical makeup before 5 
being sold to consumers: 6 
 (1)  Cannabinoid profile; 7 
 (2)  Solvents; 8 
 (3)  Pesticides; 9 
 (4)  Microbials; 10 
 (5)  Heavy metals; and 11 
 (6)  Foreign matter. 12 
 (d)  A hemp-derived product shall not be distributed or sold in this 13 
state without a certificate of analysis from an approved laboratory that 14 
confirms: 15 
 (1)  The hemp-derived product was tested by an approved 16 
laboratory; 17 
 (2)  A tested representative sample of the hemp -derived product 18 
contained a total tetrahydrocannabinol concentration that did not exceed 19 
three-tenths percent (0.3%) under this subchapter; and 20 
 (3)  A detailed analysis and list of the chemical makeup of the 21 
tested hemp-derived product under subsection (c) of this section. 22 
 (e)  Arkansas Tobacco Control may periodically sample, analyze, and 23 
test any hemp-derived product located in this state. 24 
 (f)  The Director of Arkansas Tobacco Control may: 25 
 (1)  Investigate and issue subpoenas to any permittee or approved 26 
laboratory used by a permittee that the director has reasonable suspicion of 27 
intentionally producing falsified test results on hemp -derived products; and 28 
 (2)  Promulgate rules for the enforcement of this section and set 29 
penalties for any violation of the rules. 30 
 31 
 20-56-513.  Providing minors with hemp -derived products — Purchase, 32 
use, or possession prohibited. 33 
 (a)(1)  It is unlawful for a person to give, barter, or sell to a minor 34 
a hemp-derived product. 35 
 (2)  Except as provided in subdivision (a)(3) of this section, a 36    	HB1722 
 
 	22 	03/10/2025 1:26:46 PM JMB422 
person who pleads guilty or nolo contendere to or is found guilty of 1 
violating subdivision (a)(1) of this section is guilty of a Class A 2 
misdemeanor. 3 
 (3)  An employee or owner of a retail location permitted under 4 
this subchapter who violates subdivision (a)(1) of this section while inside 5 
the retail location upon conviction is subject to a fine not to exceed one 6 
hundred dollars ($100) per violation. 7 
 (b)(1)  It is unlawful for a minor to: 8 
 (A)  Use or possess or to purchase or attempt to purchase a 9 
hemp-derived product; or 10 
 (B)  For the purpose of obtaining or attempting to obtain a 11 
hemp-derived product, falsely represent himself or herself not to be a minor 12 
by displaying proof of age that is false, fraudulent, or not actually proof 13 
of the minor's age. 14 
 (2)  Any hemp-derived product found in the possession of a minor 15 
may be confiscated and destroyed by a law enforcement officer. 16 
 (c)(1)  It is not an offense under subsection (b) of this section if: 17 
 (A)  The minor was acting at the direction of an authorized 18 
agent of Arkansas Tobacco Control to enforce or ensure compliance with laws 19 
relating to the prohibition of the sale of hemp -derived product to minors; 20 
 (B)  The minor was acting at the direction of an authorized 21 
agent of the Division of Aging, Adult, and Behavioral Health Services of the 22 
Department of Human Services to compile statistical data relating to the sale 23 
of hemp-derived products to minors; 24 
 (C)  The minor was acting at the request of a permit holder 25 
to assist the permit holder by performing a check on the permit holder's own 26 
retail business to see if the permit holder's employees would sell hemp	-27 
derived products to the minor; or 28 
 (D)  The minor was acting as an agent of a retail permit 29 
holder within the scope of employment. 30 
 (2)  A minor performing activities under subdivision (c)(1) of 31 
this section shall: 32 
 (A)  Display the appearance of a minor; 33 
 (B)  Have the written consent of the minor's parent or 34 
guardian to perform the activity on file with the agency utilizing the minor; 35 
and 36    	HB1722 
 
 	23 	03/10/2025 1:26:46 PM JMB422 
 (C)(i)  Present a true and correct identification if asked. 1 
 (ii)  Any failure on the part of a minor to provide 2 
true and correct identification upon request is a defense to any action under 3 
this section or a civil action under § 26 -57-256. 4 
 (d)  A person who sells hemp -derived products has the right to deny the 5 
sale of a hemp-derived product to a person. 6 
 (e)  It is unlawful for a person who has been issued a permit or a 7 
license under this subchapter to fail to display in a conspicuous place a 8 
sign indicating that the sale of hemp -derived products to or purchase or 9 
possession of hemp-derived products by a minor is prohibited by law. 10 
 (f)  It is unlawful for a manufacturer whose hemp -derived product is 11 
distributed in this state and any person who has been issued a permit or 12 
license under this subchapter to distribute a free sample of a hemp -derived 13 
product, or any component of a hemp -derived product or coupon that entitles 14 
the holder of the coupon to a free sample of any hemp -derived product, or any 15 
component of a hemp-derived product: 16 
 (1)  In or on any public street or sidewalk within five hundred 17 
feet (500') of a playground, public school, or other facility when the 18 
playground, public school, or other facility is being used primarily by 19 
minors for recreational, educational, or other purposes; or 20 
 (2)  To a minor. 21 
 (g)  It is unlawful for a person that has been issued a permit or 22 
license under this subchapter to: 23 
 (1)  Sell or distribute a hemp -derived product through a self -24 
service display, a vending machine, or an order executed solely over the 25 
internet or similar means; or 26 
 (2)  Advertise or promote hemp -derived products in a manner that 27 
is intended to appeal to children. 28 
 (h)  A retail permit holder or license holder who violates a provision 29 
in this section is subject to penalties under § 26 -57-256. 30 
 (i)(1)  A notice of an alleged violation of this section shall be given 31 
to the holder of a retail permit or license or an agent of the holder within 32 
ten (10) days of the alleged violation. 33 
 (2)(A)  The notice under subdivision (i)(1) of this section shall 34 
contain the date and time of the alleged violation. 35 
 (B)(i)  The notice under subdivision (i)(1) of this section 36    	HB1722 
 
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shall also include either the name of the person making the alleged sale or 1 
information reasonably necessary to determine the location in the store that 2 
allegedly made the sale. 3 
 (ii)  When appropriate, information under subdivision 4 
(i)(2)(B)(i) of this section should include without limitation the: 5 
 (a)  Cash register number of the sale in the 6 
store; 7 
 (b)  Physical location of the sale in the 8 
store; and 9 
 (c)  If possible, the lane or aisle number of 10 
the sale in the store. 11 
 (j)  Notwithstanding the provisions of subsection (h) of this section, 12 
when reviewing for a possible violation, a court shall consider whether: 13 
 (1)  The business has adopted and enforced a written policy 14 
against selling hemp -derived products to minors; 15 
 (2)  The business has informed its employees of the applicable 16 
laws regarding the sale of hemp -derived products to minors; 17 
 (3)  The business has required employees to verify the age of a  18 
customer attempting to purchase a hemp -derived product by way of photographic 19 
identification; 20 
 (4)  The business has established and imposed disciplinary 21 
sanctions for noncompliance; and 22 
 (5)  The appearance of the purchaser of the hemp -derived product 23 
was such that an ordinary prudent person would believe him or her to be of 24 
legal age to make the purchase. 25 
 (k)  A person convicted of violating a provision of this section whose 26 
permit or license to distribute or sell a hemp -derived product is suspended 27 
or revoked upon conviction shall surrender to the court any permit or license 28 
to distribute or sell a hemp -derived product, and the court shall transmit 29 
the permit or license to distribute or sell a hemp -derived product to the 30 
Director of Arkansas Tobacco Control: 31 
 (1)  To suspend or revoke the person's permit or license to 32 
distribute or sell a hemp -derived product and to not renew the permit or 33 
license; and 34 
 (2)  Not to issue a new permit or license to that person for the 35 
period of time determined by the court in accordance with this section. 36    	HB1722 
 
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 1 
 20-56-514.  Penalties. 2 
 (a)  A person within the jurisdiction of this state who is not 3 
permitted to sell, deliver, or cause to be delivered hemp -derived products to 4 
retailers or consumers and who sells, takes orders from, delivers, or causes 5 
to be delivered immediately or in the future a hemp -derived products to 6 
retailers or consumers, is guilty of a Class A misdemeanor. 7 
 (b)  A person engaged in buying, selling, or otherwise doing business 8 
in hemp-derived products in this state without first obtaining the proper 9 
permit upon conviction is guilty of a Class A misdemeanor. 10 
 11 
 20-56-515.  Purchases from unregistered, unpermitted dealers unlawful. 12 
 (a)  It is unlawful for a retailer of hemp -derived products to purchase 13 
hemp-derived products from a person other than a permitted manufacturer, 14 
permitted wholesaler, or other permitted retailer. 15 
 (b)  A retailer violating this subchapter upon conviction is guilty of 16 
a Class A misdemeanor for each purchase defined in subsection (a) of this 17 
section. 18 
 19 
 20-56-516.  Failure to allow inspection unlawful. 20 
 A person who is required to pay taxes or obtain a permit under this 21 
subchapter who fails or refuses to allow the Department of Finance and 22 
Administration or Arkansas Tobacco Control to examine or inspect the person's 23 
inventory of hemp-derived products, invoice books, papers, and memoranda 24 
considered necessary to secure information directly relating to the 25 
enforcement of this subchapter upon conviction is guilty of a Class A 26 
misdemeanor and may have his or her permit immediately suspended by the 27 
Director of Arkansas Tobacco Control, subject to a hearing before the 28 
Arkansas Tobacco Control Board at the next regularly scheduled board meeting. 29 
 30 
 20-56-517.  Wholesalers — Restrictions — Criminal violations. 31 
 A wholesaler shall conduct the wholesaler's business subject to the 32 
following restrictions: 33 
 (1)  The wholesaler shall secure a permit from Arkansas Tobacco 34 
Control; and 35 
 (2)  Except as otherwise provided in this subchapter, a 36    	HB1722 
 
 	26 	03/10/2025 1:26:46 PM JMB422 
wholesaler may sell hemp -derived products only to persons properly permitted 1 
under this subchapter. 2 
 3 
 20-56-518.  Civil and criminal actions. 4 
 (a)  All civil actions arising under this subchapter shall be brought 5 
by and in the name of the Secretary of the Department of Finance and 6 
Administration or the Director of Arkansas Tobacco Control, whichever is 7 
appropriate under the provisions of this subchapter. 8 
 (b)  All criminal actions shall be brought and prosecuted by the 9 
prosecuting attorney of the county where the criminal action occurred. 10 
 11 
 20-56-519.  No bond for costs required. 12 
 A bond for costs is not required of the Department of Finance and 13 
Administration, Arkansas Tobacco Control, or the Arkansas Tobacco Control 14 
Board in any court in this state for the prosecution of a violation of this 15 
subchapter. 16 
 17 
 20-56-520.  Criminal actions — Appeals. 18 
 (a)  In all prosecutions in the district courts, this state shall have 19 
the same right of appeal to the circuit courts of this state and upon the 20 
same terms as the defendant now has under the law in misdemeanor cases. 21 
 (b)  When appealed, the cases shall be tried de novo by the circuit 22 
court. 23 
 24 
 20-56-521.  Employer protection. 25 
 (a)  A cause of action shall not be established against an employer 26 
based upon, and an employer is not prohibited from, any of the following 27 
actions: 28 
 (1)  Establishing and implementing a substance abuse or drug -free 29 
workplace policy that may include a drug testing program that complies with 30 
state or federal law and taking action with respect to an applicant or 31 
employee under the policy; 32 
 (2)  Acting on the employer's good faith belief that an employee: 33 
 (A)  Possessed, smoked, ingested, or otherwise engaged in 34 
the use of hemp-derived products while on the premises of the employer or 35 
during the hours of employment; or 36    	HB1722 
 
 	27 	03/10/2025 1:26:46 PM JMB422 
 (B)  Was under the influence of hemp -derived products while 1 
on the premises of the employer or during the hours of employment, provided 2 
that a positive test result for hemp -derived product cannot provide the sole 3 
basis for the employer's good faith belief; or 4 
 (3)  Acting to exclude an employee from being employed in or 5 
performing a safety sensitive position based on the employer's good faith 6 
belief that the employee was engaged in the current use of a hemp -derived 7 
product. 8 
 (b)  The authorized or protected actions of an employer under this 9 
section include without limitation: 10 
 (1)  Implementing, monitoring, or taking measures to assess, 11 
supervise, or control the job performance of an employee; 12 
 (2)  Reassigning an employee to a different position or job 13 
duties; 14 
 (3)  Placing an employee on paid or unpaid leave; 15 
 (4)  Suspending or terminating an employee; 16 
 (5)  Requiring an employee to successfully complete a substance 17 
abuse program before returning to work; 18 
 (6)  Refusing to hire an applicant; or 19 
 (7)  Any combination of the actions listed in subdivisions (b)(1) 20 
— (b)(6) of this section. 21 
 (c)  This section does not waive the sovereign immunity of this state. 22 
 23 
 20-56-522.  Enforcement — Penalties. 24 
 (a)  It is the duty of all state, county, and city officers to assist 25 
Arkansas Tobacco Control in enforcing this subchapter. 26 
 (b)  A person within the jurisdiction of this state who is not 27 
permitted to sell, deliver, or cause to be delivered hemp -derived products to 28 
retailers or consumers and who sells, takes orders from, delivers, or causes 29 
to be delivered immediately or in the future any hemp -derived products to 30 
retailers or consumers, is guilty of a Class A misdemeanor. 31 
 (c)  A person engaged in buying, selling, or otherwise doing business 32 
in hemp-derived products in this state without first obtaining the proper 33 
permit upon conviction is guilty of a Class A misdemeanor. 34 
 35 
 20-56-523.  Rules. 36    	HB1722 
 
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 The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 1 
may promulgate rules for the proper enforcement of their powers and duties 2 
under this subchapter, including without limitation the regulation of 3 
processing, transportation, delivery, sale, and purchase of hemp -derived 4 
products in accordance with this subchapter and the power to levy penalties 5 
for violations of this subchapter. 6 
 7 
 SECTION 7.  Arkansas Code Title 20, Chapter 56, Subchapter 4, as 8 
amended by Acts 2025, No. 176, § 2, effective if the contingency in Acts 9 
2023, No. 629, § 17, is met, is repealed. 10 
Subchapter 4 — Hemp-Derived Products 11 
 12 
 20-56-401.  Purpose. 13 
 It is the intent of this subchapter to provide regulation of certain 14 
hemp-derived products to: 15 
 (1)  Prevent the sale and use of illicit hemp -based products 16 
within Arkansas; and 17 
 (2)  Protect and promote the public health and welfare of the 18 
residents of this state. 19 
 20 
 20-56-402.  Definitions. 21 
 As used in this subchapter: 22 
 (1)  “Annual” or “annually” means the fiscal year from July 1 23 
through the next June 30; 24 
 (2)  “Approved laboratory” means a laboratory that is accredited 25 
by the National Institute on Drug Abuse, the National Environmental 26 
Laboratory Accreditation Conference, the International Organization for 27 
Standardization, or a similar accrediting entity as determined by Arkansas 28 
Tobacco Control and that has been approved by the Director of Arkansas 29 
Tobacco Control specifically for the testing of hemp -derived product; 30 
 (3)  “Consumer” means a member of the public at large; 31 
 (4)  “Days” means calendar days unless otherwise specified; 32 
 (5)  “Finished product” means a product intended for consumer use 33 
to be sold at retail; 34 
 (6)  “Hemp” means the plant Cannabis sativa and any part of the 35 
plant, including the seeds of the plant, that contains a delta -9 36    	HB1722 
 
 	29 	03/10/2025 1:26:46 PM JMB422 
tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 1 
less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 2 
isomers, acids, salts, and salts of isomers, whether growing or not; 3 
 (7)  “Hemp-derived e-liquid product” means a liquid hemp -derived 4 
product that contains hemp that is inhaled when using a vapor product, and 5 
that may or may not include without limitation propylene glycol, vegetable 6 
glycerin, and flavorings; 7 
 (8)(A)  “Hemp-derived product” means a product intended for any 8 
form of human consumption, including consumption by vapor inhalation, or a 9 
component of a product, that is derived from hemp, including all derivatives, 10 
extracts, cannabinoids, isomers, acids, salts, and salts of isomers, and any 11 
product made from such derivatives, and that contains greater than three	-12 
tenths of one percent (0.3%) tetrahydrocannabinol. 13 
 (B)  “Hemp-derived product” includes a hemp -derived e-14 
liquid product and a vapor product. 15 
 (C)  “Hemp-derived product” does not include: 16 
 (i)  A product intended for animal consumption or 17 
use; 18 
 (ii) A cosmetic as defined by § 20 -56-202; 19 
 (iii) Any marijuana, medical marijuana, or other 20 
cannabis product containing delta -9 tetrahydrocannabinol greater than three -21 
tenths of one percent (0.3%) on a dry -weight basis as administered, licensed, 22 
and otherwise regulated by the Alcoholic Beverage Control Division, the 23 
Medical Marijuana Commission, and the Department of Health under the Arkansas 24 
Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 25 
 (iv) A raw hemp product, including any intact plant, 26 
flower, buds, leaves, or stems; 27 
 (v)  A drug in the form for which an application 28 
filed in accordance with 21 U.S.C. § 355 is approved by the United States 29 
Food and Drug Administration; 30 
 (vi) A dietary supplement as defined by the Federal 31 
Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or 32 
 (vii) A fabric, textile, cordage, fiber, fuel, paper, 33 
construction material, plastic, seed, seed meal, and seed oil; 34 
 (9)(A)  “Manufacturer” means a person that manufactures, 35 
fabricates, assembles, or processes a hemp -derived product, including without 36    	HB1722 
 
 	30 	03/10/2025 1:26:46 PM JMB422 
limitation federally licensed importers and federally licensed distributors 1 
that deal in hemp-derived products. 2 
 (B)  “Manufacturer” includes: 3 
 (i)  A sales entity affiliate of the manufacturer or 4 
any other entity representing the manufacturer with regard to the sale of 5 
hemp-derived products produced by the manufacturer to wholesalers or 6 
permitted retailers; and 7 
 (ii) A person that mixes, compounds, extracts, 8 
infuses, blends, processes, repackages, or resizes hemp -derived products 9 
including the extraction of cannabinoids from hemp biomass. 10 
 (C)  “Manufacturer” does not include a person who engages 11 
in the agricultural production of hemp, such as growing, planting, and 12 
harvesting of raw hemp biomass regulated by the State Plant Board; 13 
 (10) “Minor” means a person who is under twenty -one (21) years of 14 
age; 15 
 (11) “Person” means an individual, retailer, wholesaler, 16 
manufacturer, firm, association, company, partnership, limited liability 17 
company, corporation, joint -stock company, club, agency, syndicate, the State 18 
of Arkansas, county, municipal corporation or other political subdivision of 19 
the state, receiver, trustee, fiduciary, or trade association; 20 
 (12) “Place of business” means the physical location: 21 
 (A)  Where orders for hemp -derived products are taken or 22 
received or where hemp -derived products are sold; and 23 
 (B)  That is on file with Arkansas Tobacco Control; 24 
 (13) “Retailer” means a person that purchases hemp -derived 25 
products from permitted wholesalers for the purpose of selling the hemp	-26 
derived products in person and over the counter at retail to consumers; 27 
 (14)(A)  “Sale” or “sell” means a transfer, exchange, or 28 
barter in any manner or by any means for any consideration, including 29 
distributing or shipping hemp-derived product in connection with a sale. 30 
 (B)  A sale “in” or “into” a state refers to the state in 31 
which the destination point of the hemp -derived product is located in the 32 
sale without regard to where title was transferred. 33 
 (C)  A sale “from” a state refers to the sale of a hemp -34 
derived product that is located in that state to the destination in question 35 
without regard to where title was transferred; 36    	HB1722 
 
 	31 	03/10/2025 1:26:46 PM JMB422 
 (15) “Self-service display” means a display: 1 
 (A)  That contains a hemp -derived product, or any component 2 
of a hemp-derived product; 3 
 (B)  That is located in an area where customers are 4 
permitted; and 5 
 (C)  In which the hemp -derived product, or any component of 6 
a hemp-derived product, is readily accessible to a customer without the 7 
assistance of a salesperson; 8 
 (16) “Tetrahydrocannabinol” means a compound that is the natural, 9 
primary active cannabinoid substance or its equivalent contained in the plant 10 
of the genus cannabis or in the resinous extracts of the plant, including 11 
derivatives or isomers derived from such cannabinoids; 12 
 (17) “Vapor product” means hemp -derived product that is an 13 
electronic oral device of any size or shape that contains a vapor of hemp or 14 
hemp-derived e-liquid product that when used or inhaled simulates smoking, 15 
regardless of whether a visible vapor is produced, including without 16 
limitation a device that: 17 
 (A)  Is composed of a heating element, battery, electronic 18 
circuit, chemical process, mechanical device, or a combination of heating 19 
element, battery, electronic circuit, chemical process, or mechanical device; 20 
 (B)  Works in combination with a cartridge, other 21 
container, or liquid delivery device containing hemp or hemp -derived e-liquid 22 
product and manufactured for use with vapor products; 23 
 (C)  Is manufactured, distributed, marketed, or sold as any 24 
type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 25 
other produced name or descriptor; and 26 
 (D)  Does not include a product regulated as a drug or 27 
device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 28 
as it existed on January 1, 2015; 29 
 (18) “Warehouse” means a place where hemp -derived products are 30 
stored for another person and to or from which place the hemp -derived 31 
products are shipped or delivered upon order by the owner of the hemp	-derived 32 
products, to the warehouse; and 33 
 (19) “Wholesaler” means a person other than a manufacturer or a 34 
person owned or operated by a manufacturer that: 35 
 (A)  Does business within the state; 36    	HB1722 
 
 	32 	03/10/2025 1:26:46 PM JMB422 
 (B)  Purchases hemp-derived products from any source; 1 
 (C)  Distributes or sells the hemp -derived products to 2 
other wholesalers, or retailers; and 3 
 (D)  Does not distribute or sell the hemp -derived products 4 
at retail to consumers. 5 
 6 
 20-56-403.  Construction. 7 
 (a)  A hemp-derived product shall not be delivered, sold, bought, or 8 
used in this state except in conformity with all applicable laws and 9 
regulations, including this subchapter and any rules promulgated under this 10 
subchapter. 11 
 (b)  A person shall not sell a hemp -derived product without being 12 
permitted by Arkansas Tobacco Control. 13 
 (c)  A product intended for human consumption or inhalation that is 14 
derived from hemp and contains tetrahydrocannabinol shall not be permitted or 15 
allowed under the laws of this state, other than hemp -derived products if 16 
otherwise legal under state law. 17 
 (d)(1)  A hemp-derived product shall not be combined with or contain 18 
any of the following: 19 
 (A)  Any liquid, hydrocolloid, animal -based substance, 20 
thickener, sweetener, flavoring, synthetic product, propylene glycol, 21 
vegetable glycerin, or other non -hemp-derived substance; 22 
 (B)  Nicotine or tobacco; or 23 
 (C)  Any amount of tetrahydrocannabinol as to create a 24 
danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 25 
other risk to the public. 26 
 (2)  Medical devices, prescription drugs, or drugs otherwise 27 
approved by the United States Food and Drug Administration shall not be 28 
considered hemp-derived products. 29 
 (e)  The business of handling, receiving, possessing, storing, 30 
distributing, taking orders for, soliciting orders of, selling, offering for 31 
sale, and dealing in, through sale, barter, or exchange, hemp -derived 32 
products is declared to be a privilege under the Arkansas Constitution and 33 
laws of the State of Arkansas. 34 
 35 
 20-56-404.  Permits. 36    	HB1722 
 
 	33 	03/10/2025 1:26:46 PM JMB422 
 (a)(1)  Each person listed in this section, before commencing business, 1 
or if already in business, before continuing business, shall pay an annual 2 
privilege fee and secure a permit from the Director of Arkansas Tobacco 3 
Control. 4 
 (2)  A person purchasing an existing permitted retail location 5 
may, with the permission of the seller and Arkansas Tobacco Control, operate 6 
under the selling owner's permit for no more than thirty (30) days from the 7 
date of the sale. 8 
 (b)(1)  In addition to securing a permit under subsection (a) of this 9 
section, a manufacturer whose products are sold in this state shall register 10 
with the Secretary of the Department of Finance and Administration. 11 
 (2)  A wholesaler of hemp -derived products shall secure the 12 
proper wholesale permit. 13 
 (3)  Every retailer of hemp -derived products that operates a 14 
place of business shall secure the proper retail permit. 15 
 (c)(1)  Permits shall be issued as follows: 16 
 (A)  A permit for a sole proprietorship is issued in the 17 
owner's name and in the fictitious business name, if any; 18 
 (B)(i)  A permit for a partnership or limited liability 19 
company is issued in the name of: 20 
 (a)  The managing partner or managing member; 21 
and 22 
 (b)  The partnership or limited liability 23 
company. 24 
 (ii) If the managing partner or managing member of a 25 
limited liability company is a partnership, limited liability company, or 26 
corporation, then the permit shall be issued in the name of: 27 
 (a)  The president or chief executive officer; 28 
and 29 
 (b)  The partnership or limited liability 30 
company; and 31 
 (C)  A permit for a publicly traded or nonpublicly traded 32 
corporation is issued in the name of the president or chief executive officer 33 
of the corporation and in the name of the corporation. 34 
 (2)  It is a violation for a permitted entity not to provide 35 
written notification to the director within thirty (30) days of a change in 36    	HB1722 
 
 	34 	03/10/2025 1:26:46 PM JMB422 
the following: 1 
 (A)  The managing partner, limited liability company 2 
managing member, or president or chief executive officer of a corporation, 3 
partnership, or limited liability company; or 4 
 (B)  The stockholders effecting twenty -five percent (25%) 5 
or more of the total voting shares of a nonpublicly traded corporation. 6 
 (d)(1)  When an entity transfers a business permitted under this 7 
subchapter, the entity to which the business is transferred: 8 
 (A)  Shall apply for a new permit under this subchapter; 9 
 (B)  May be issued a new permit under this subchapter; and 10 
 (C)  May operate under the selling entity's permit for no 11 
more than thirty (30) days from the date of the sale. 12 
 (2)  When a partnership or limited liability company permitted 13 
under this subchapter changes, removes, or replaces the managing partner, 14 
managing member, president, or chief executive officer: 15 
 (A)  The existing permit issued under this subchapter is 16 
void; and 17 
 (B)  The partnership or limited liability company: 18 
 (i)  Shall apply for a new permit under this 19 
subchapter; 20 
 (ii) May be issued a new permit under this 21 
subchapter; and 22 
 (iii) May operate under the voided permit for no more 23 
than thirty (30) days from the date of the change, removal, or replacement of 24 
the managing partner, managing member, president, or chief executive officer. 25 
 (3)  When a nonpublicly traded corporation permitted under this 26 
subchapter changes, removes, or replaces the president or chief executive 27 
officer named on the permit or changes, removes, or replaces a stockholder 28 
who owns fifty percent (50%) or more of the total voting shares of the 29 
nonpublicly traded corporation's stock: 30 
 (A)  The permit issued under this subchapter is void; and 31 
 (B)  The nonpublicly traded corporation: 32 
 (i)  Shall apply for a new permit under this 33 
subchapter; 34 
 (ii) May be issued a new permit under this 35 
subchapter; and 36    	HB1722 
 
 	35 	03/10/2025 1:26:46 PM JMB422 
 (iii) May operate under the voided permit for no more 1 
than thirty (30) days from the date of the change, removal, or replacement of 2 
the president, chief executive officer, or stockholder. 3 
 (4)  When a publicly traded corporation permitted under this 4 
subchapter changes, removes, or replaces the president or chief executive 5 
officer named on the permit or changes, removes, or replaces a stockholder 6 
who owns fifty percent (50%) or more of the total voting shares of the 7 
publicly traded corporation's stock: 8 
 (A)  The permit issued under this subchapter is void; and 9 
 (B)  The publicly traded corporation: 10 
 (i)  Shall apply for a new permit under this 11 
subchapter; 12 
 (ii) May be issued a new permit under this 13 
subchapter; and 14 
 (iii) May operate under the voided permit for no more 15 
than thirty (30) days from the date of the change, removal, or replacement of 16 
the president, chief executive officer, or stockholder. 17 
 (e)  An entity may apply for and be issued a permit under this 18 
subchapter in advance of the effective date of the permit to facilitate 19 
continuity of business operations. 20 
 21 
 20-56-405.  Permits — Location — Background check required. 22 
 (a)  A retail, wholesale, or manufacturer permit shall not be issued to 23 
a residential address, a mobile structure or vehicle, or for an address not 24 
zoned appropriately for the business seeking to secure the permit. 25 
 (b)  A permit shall not be issued to: 26 
 (1)  A person who has pleaded guilty or nolo contendere to or 27 
been found guilty of a felony; or 28 
 (2)  A business owned or operated, in whole or in part, by a 29 
person who has pleaded guilty or nolo contendere to or been found guilty of a 30 
felony. 31 
 (c)  Arkansas Tobacco Control shall conduct a criminal background check 32 
on each permit applicant and application, utilizing its Arkansas Crime 33 
Information Center access as a law enforcement agency, in accordance with §§ 34 
12-12-1008 — 12-12-1011. 35 
 36    	HB1722 
 
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 20-56-406.  Permits — Annual privilege fees. 1 
 (a)  The annual privilege fee for each permit authorized by this 2 
subchapter is established as follows: 3 
 (1)  Wholesale Hemp-derived Products Permit.............$5,000 4 
 (2)  Retail Hemp-derived Products Permit.............$5,000 5 
 (3)  Manufacturer Hemp -derived Products Permit.............$5,000 6 
 (b)(1)  All permits issued under this subchapter shall expire on June 7 
30 following the effective date of issuance. 8 
 (2)(A)  Upon the failure to timely renew a permit issued under 9 
this subchapter, a late fee of two (2) times the amount of the appropriate 10 
permit fee shall be owed in addition to the annual privilege fee for the 11 
permit. 12 
 (B)  An expired permit that is not renewed before September 13 
1 following the expiration of the permit shall not be renewed, and the holder 14 
of the expired permit shall submit an application for a new permit. 15 
 (3)  A permit shall not be issued to the applicant until the late 16 
fee and the permit fee have been paid. 17 
 (c)  A permit issued under this subchapter shall not be renewed for a 18 
permit holder who is delinquent more than ninety (90) days on a privilege 19 
fee, tax relating to the sale or dispensing of hemp -derived products, or any 20 
other state and local tax due to the Secretary of the Department of Finance 21 
and Administration. 22 
 (d)  A person who is delinquent more than ninety (90) days on a state 23 
or local tax may not renew or obtain a permit issued under this subchapter 24 
except upon certification that the permit holder has entered into a repayment 25 
agreement with the Department of Finance and Administration and is current on 26 
the payments. 27 
 (e)  A permit holder who has unpaid fees, civil penalties, or an 28 
unserved permit suspension may not transfer, sell, or give hemp -derived 29 
product inventory of the business associated with the permit to a third party 30 
until all fees and civil penalties are paid in full and all suspensions are 31 
completed successfully, nor shall any third party be issued a new permit for 32 
the business location. 33 
 (f)  Each manufacturer, wholesaler, and retailer shall retain copies of 34 
all invoices for the purchase or sale of any hemp -derived products for a 35 
period of at least ten (10) years subject to examination by the Secretary of 36    	HB1722 
 
 	37 	03/10/2025 1:26:46 PM JMB422 
the Department of Finance and Administration and the Director of Arkansas 1 
Tobacco Control or their authorized agents upon demand at any time during 2 
regular business hours. 3 
 (g)  A retailer shall: 4 
 (1)  Maintain copies of at least the last three hundred sixty -5 
five (365) days of hemp -derived product invoices, which the retailer shall 6 
provide immediately upon demand; 7 
 (2)(A)  Make the invoices that are older than three hundred 8 
sixty-five (365) days available upon demand at any time during normal 9 
business hours in the retail store. 10 
 (B)  Except as provided in subdivision (g)(2)(C) of this 11 
section, an agent of Arkansas Tobacco Control may determine a reasonable time 12 
frame for which invoices are to be provided under subdivision (g)(2)(A) of 13 
this section. 14 
 (C)  An invoice that is provided seventy -two (72) hours or 15 
more after the demand shall not be considered for purposes of determining a 16 
violation of this subsection; 17 
 (3)  Retain invoices for all hemp -derived products in the retail 18 
store even if the invoice for the hemp -derived products is older than three 19 
(3) years; 20 
 (4)  Maintain a copy of the signed server awareness forms for 21 
each employee of the retailer who engages in the sale of hemp -derived 22 
products, which the retailer shall provide immediately upon demand; 23 
 (5)(A)  Maintain a copy of any complete transfer forms showing: 24 
 (i)  The hemp-derived products that were transferred; 25 
 (ii) The permitted location from which the hemp -26 
derived products were transferred; and 27 
 (iii) When the transfer occurred. 28 
 (B)  A transfer form shall be completed contemporaneously 29 
with the transfer and shall be provided immediately by the retailer upon 30 
demand; and 31 
 (6)  If any inventory was submitted with a permit application, 32 
maintain a copy of the submitted inventory form, which the retailer shall 33 
provide immediately upon demand. 34 
 (h)  A wholesaler and manufacturer shall: 35 
 (1)  Maintain ten (10) years of hemp -derived product invoices 36    	HB1722 
 
 	38 	03/10/2025 1:26:46 PM JMB422 
that are available upon demand during normal business hours in the permitted 1 
location; and 2 
 (2)  Permit Arkansas Tobacco Control and authorized personnel of 3 
Arkansas Tobacco Control to enter into and inspect stock of hemp -derived 4 
products, and any documents and records relating to receipts and 5 
disbursements of hemp -derived products. 6 
 (i)  An invoice from a wholesaler to a retailer shall contain the name 7 
or other identifying information of the wholesaler and the retailer. 8 
 (j)(1)  A nonresident wholesaler shall also keep a record of all hemp	-9 
derived products purchased for distribution within this state. 10 
 (2)  All books, records, and memoranda pertaining to the purchase 11 
and sale of the hemp -derived products under subdivision (j)(1) of this 12 
section shall be subject to inspection by Arkansas Tobacco Control. 13 
 (k)  Authorized personnel of Arkansas Tobacco Control shall not release 14 
to the Arkansas Tobacco Control Board or to the public any information 15 
identifying customers of the manufacturer, wholesaler, or warehouse except 16 
when necessary to notify the board of alleged violations of this subchapter. 17 
 18 
 20-56-407.  Permits — Not transferable — Duplicates. 19 
 (a)  A permit under this subchapter is not: 20 
 (1)  Transferable to a subsequent owner or operator; or 21 
 (2)  Transferable to a different physical location unless the 22 
permit holder obtains permission from the Director of Arkansas Tobacco 23 
Control. 24 
 (b)  A person purchasing an existing permitted retail location may 25 
operate under the selling owner's permit for no more than thirty (30) days 26 
from the date of the sale. 27 
 (c)  When a permit is lost by a permit holder, a duplicate permit may 28 
be issued upon application and for a fee of five dollars ($5.00) when 29 
sufficient proof has been given to the Director of Arkansas Tobacco Control. 30 
 31 
 20-56-408.  Permits — Suspension or revocation. 32 
 (a)  All permits issued under this subchapter shall be suspended or 33 
revoked by the Director of Arkansas Tobacco Control for any violation of this 34 
subchapter or the rules pertaining to this subchapter, subject to a hearing 35 
before the Arkansas Tobacco Control Board at the next regularly scheduled 36    	HB1722 
 
 	39 	03/10/2025 1:26:46 PM JMB422 
board meeting. 1 
 (b)  The director may revoke all permits to deal in hemp -derived 2 
products associated with any person who is convicted of or pleads guilty or 3 
nolo contendere to criminally violating this subchapter, subject to a hearing 4 
before the board at the next regularly scheduled board meeting. 5 
 6 
 20-56-409.  Advertising prohibitions and packaging requirements. 7 
 (a)  A hemp-derived product distributed or offered for sale in this 8 
state shall include the following information on the product label or product 9 
packaging: 10 
 (1)  The name of the hemp -derived product manufacturer, whether 11 
in-state or out-of-state, and distributor, whether in -state or out-of-state; 12 
 (2)  Product labeling clearly showing that the product contains 13 
material derived from hemp and not marijuana or medical marijuana; and 14 
 (3)  Any other marking, words, statement, or symbol as required 15 
by Arkansas Tobacco Control through rules. 16 
 (b)  A person shall not advertise, market, or offer for sale in this 17 
state any hemp-derived product by using, in the labeling or design of the 18 
product, its packaging, or in its advertising or marketing materials, trade 19 
dress, trademarks, branding, or other related imagery that: 20 
 (1)  Imitates or replicates those of food brands or other related 21 
products that are marketed to or are commonly associated with children or 22 
minors, including without limitation breakfast cereal, cookies, juice drinks, 23 
soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 24 
 (2)  Depicts or signifies characters or symbols that are known to 25 
a reasonable person to appeal primarily to or are commonly associated with 26 
children or minors, including without limitation superheroes, cartoons or 27 
cartoon characters, including anime characters, comic book characters, video 28 
game characters, television show characters, movie characters, mythical 29 
creatures, unicorns, or that otherwise incorporates related imagery or 30 
scenery; or 31 
 (3)  Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 32 
or “cupcakes” or any variant of these terms, or any other term referencing a 33 
type or brand of candy, cakes, pastries, or pies, including types or brands 34 
of candy, cakes, pastries, or pies that do not include the words “candy”, 35 
“candies”, “cake”, “cakes”, “pies”, or “cupcakes” in their names, labels, or 36    	HB1722 
 
 	40 	03/10/2025 1:26:46 PM JMB422 
slogans. 1 
 2 
 20-56-410.  Testing. 3 
 (a)  All hemp-derived products sold in this state shall be tested by an 4 
approved laboratory. 5 
 (b)  An approved laboratory shall be an independent third -party 6 
laboratory. 7 
 (c)  A hemp-derived product sold in this state shall be tested for the 8 
following and marked as to the hemp -derived product chemical makeup before 9 
being sold to consumers: 10 
 (1)  Cannabinoid profile; 11 
 (2)  Solvents; 12 
 (3)  Pesticides; 13 
 (4)  Microbials; 14 
 (5)  Heavy metals; and 15 
 (6)  Any non-hemp-based substance. 16 
 (d)  A hemp-derived product shall not be distributed or sold in this 17 
state without a certificate of analysis from an approved laboratory that 18 
confirms: 19 
 (1)  The hemp-derived product was tested by an approved 20 
laboratory; 21 
 (2)  A tested representative sample of the hemp -derived product 22 
contained a total delta -9 tetrahydrocannabinol concentration that did not 23 
exceed three-tenths of one percent (0.3%) under this subchapter; and 24 
 (3)  A detailed analysis and list of chemical makeup of the 25 
tested hemp-derived product under subsection (c) of this section. 26 
 (e)  Arkansas Tobacco Control may periodically sample, analyze, and 27 
test any hemp-derived product located in this state. 28 
 (f)  The Director of Arkansas Tobacco Control shall: 29 
 (1)  Investigate and issue subpoenas to any permittee or approved 30 
laboratory used by a permittee that the director has reasonable suspicion of 31 
intentionally producing falsified test results on hemp -derived products; and 32 
 (2)  Promulgate rules for the enforcement of this section and set 33 
penalties for any violation of the rules. 34 
 35 
 20-56-411.  Providing minors with hemp -derived products — Purchase, 36    	HB1722 
 
 	41 	03/10/2025 1:26:46 PM JMB422 
use, or possession prohibited. 1 
 (a)(1)  It is unlawful for any person to give, barter, or sell to a 2 
minor a hemp-derived product. 3 
 (2)  Except as provided in subdivision (a)(3) of this section, a 4 
person who pleads guilty or nolo contendere to or is found guilty of 5 
violating subdivision (a)(1) of this section is guilty of a Class A 6 
misdemeanor. 7 
 (3)  An employee or owner of a retail location permitted under 8 
this subchapter who violates subdivision (a)(1) of this section while inside 9 
the retail location upon conviction is subject to a fine not to exceed one 10 
hundred dollars ($100) per violation. 11 
 (b)(1)  It is unlawful for a minor to: 12 
 (A)  Use or possess or to purchase or attempt to purchase a 13 
hemp-derived product; or 14 
 (B)  For the purpose of obtaining or attempting to obtain a 15 
hemp-derived product, falsely represent himself or herself not to be a minor 16 
by displaying proof of age that is false, fraudulent, or not actually proof 17 
of the minor's age. 18 
 (2)  Any hemp-derived product found in the possession of a minor 19 
may be confiscated and destroyed by a law enforcement officer. 20 
 (c)(1)  It is not an offense under subsection (b) of this section if: 21 
 (A)  The minor was acting at the direction of an authorized 22 
agent of Arkansas Tobacco Control to enforce or ensure compliance with laws 23 
relating to the prohibition of the sale of hemp -derived product to minors; 24 
 (B)  The minor was acting at the direction of an authorized 25 
agent of the Division of Aging, Adult, and Behavioral Health Services of the 26 
Department of Human Services to compile statistical data relating to the sale 27 
of hemp-derived products to minors; 28 
 (C)  The minor was acting at the request of a permit holder 29 
to assist the permit holder by performing a check on the permit holder's own 30 
retail business to see if the permit holder's employees would sell hemp	-31 
derived products to the minor; or 32 
 (D)  The minor was acting as an agent of a retail permit 33 
holder within the scope of employment. 34 
 (2)  A minor performing activities under subdivision (c)(1) of 35 
this section shall: 36    	HB1722 
 
 	42 	03/10/2025 1:26:46 PM JMB422 
 (A)  Display the appearance of a minor; 1 
 (B)  Have the written consent of the minor's parent or 2 
guardian to perform the activity on file with the agency utilizing the minor; 3 
and 4 
 (C)(i)  Present a true and correct identification if asked. 5 
 (ii) Any failure on the part of a minor to provide 6 
true and correct identification upon request is a defense to any action under 7 
this section or a civil action under § 26 -57-256. 8 
 (d)  Any person who sells hemp -derived products has the right to deny 9 
the sale of any hemp -derived product to any person. 10 
 (e)  It is unlawful for any person who has been issued a permit or a 11 
license under this subchapter to fail to display in a conspicuous place a 12 
sign indicating that the sale of hemp -derived products to or purchase or 13 
possession of hemp-derived products by a minor is prohibited by law. 14 
 (f)  It is unlawful for any manufacturer whose hemp -derived product is 15 
distributed in this state and any person who has been issued a permit or 16 
license under this subchapter to distribute a free sample of any hemp	-derived 17 
product, or any component of a hemp -derived product or coupon that entitles 18 
the holder of the coupon to any free sample of any hemp -derived product, or 19 
any component of a hemp -derived product: 20 
 (1)  In or on any public street or sidewalk within five hundred 21 
feet (500′) of any playground, public school, or other facility when the 22 
playground, public school, or other facility is being used primarily by 23 
minors for recreational, educational, or other purposes; or 24 
 (2)  To any minor. 25 
 (g)  It is unlawful for any person that has been issued a permit or 26 
license under this subchapter to: 27 
 (1)  Sell or distribute a hemp -derived product through a self -28 
service display, a vending machine, or an order executed solely over the 29 
internet or similar means; or 30 
 (2)  Advertise or promote hemp -derived products in a manner that 31 
is intended to appeal to children. 32 
 (h)  Any retail permit holder or license holder who violates any 33 
provision in this section is deemed guilty of a violation and subject to 34 
penalties under § 26 -57-256. 35 
 (i)(1)  A notice of an alleged violation of this section shall be given 36    	HB1722 
 
 	43 	03/10/2025 1:26:46 PM JMB422 
to the holder of a retail permit or license or an agent of the holder within 1 
ten (10) days of the alleged violation. 2 
 (2)(A)  The notice under subdivision (i)(1) of this section shall 3 
contain the date and time of the alleged violation. 4 
 (B)(i)  The notice under subdivision (i)(1) of this section 5 
shall also include either the name of the person making the alleged sale or 6 
information reasonably necessary to determine the location in the store that 7 
allegedly made the sale. 8 
 (ii)  When appropriate, information under subdivision 9 
(i)(2)(B)(i) of this section should include, but not be limited to, the: 10 
 (a)  Cash register number of the sale in the 11 
store; 12 
 (b)  Physical location of the sale in the 13 
store; and 14 
 (c)  If possible, the lane or aisle number of 15 
the sale in the store. 16 
 (j)  Notwithstanding the provisions of subsection (h) of this section, 17 
the court shall consider the following factors when reviewing a possible 18 
violation: 19 
 (1)  The business has adopted and enforced a written policy 20 
against selling hemp -derived products to minors; 21 
 (2)  The business has informed its employees of the applicable 22 
laws regarding the sale of hemp -derived products to minors; 23 
 (3)  The business has required employees to verify the age of a 24 
customer attempting to purchase a hemp -derived product by way of photographic 25 
identification; 26 
 (4)  The business has established and imposed disciplinary 27 
sanctions for noncompliance; and 28 
 (5)  That the appearance of the purchaser of the hemp -derived 29 
product was such that an ordinary prudent person would believe him or her to 30 
be of legal age to make the purchase. 31 
 (k)  A person convicted of violating any provision of this section 32 
whose permit or license to distribute or sell a hemp -derived product is 33 
suspended or revoked upon conviction shall surrender to the court any permit 34 
or license to distribute or sell a hemp -derived product, and the court shall 35 
transmit the permit or license to distribute or sell a hemp -derived product 36    	HB1722 
 
 	44 	03/10/2025 1:26:46 PM JMB422 
to the Director of Arkansas Tobacco Control: 1 
 (1)  To suspend or revoke the person's permit or license to 2 
distribute or sell a hemp -derived product and to not renew the permit or 3 
license; and 4 
 (2)  Not to issue any new permit or license to that person for 5 
the period of time determined by the court in accordance with this section. 6 
 7 
 20-56-412.  Enforcement — Penalties. 8 
 (a)  It is the duty of all state, county, and city officers to assist 9 
Arkansas Tobacco Control in enforcing this subchapter. 10 
 (b)  A person within the jurisdiction of this state who is not 11 
permitted to sell hemp -derived products to retailers or consumers and who 12 
sells, takes orders from, delivers, or causes to be delivered immediately or 13 
in the future any hemp -derived products to retailers or consumers in the 14 
State of Arkansas is guilty of a Class A misdemeanor. 15 
 (c)  A person engaged in buying or selling hemp -derived products in 16 
this state without first obtaining the proper permit upon conviction is 17 
guilty of a Class A misdemeanor. 18 
 (d)  This subchapter does not prohibit in any form the continuous 19 
transportation through Arkansas of the plant Cannabis sativa L., and any part 20 
of that plant, including the seeds thereof and all derivatives, extracts, 21 
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 22 
not, with a total delta -9 tetrahydrocannabinol concentration of not more than 23 
three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 24 
hemp producer in another state to a licensed hemp handler in another state. 25 
 26 
 20-56-413.  Rules. 27 
 The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 28 
may promulgate rules for the proper enforcement of their powers and duties 29 
under this subchapter, including without limitation the regulation of 30 
processing, transportation, delivery, sale, and purchase of hemp -derived 31 
products in accordance with this subchapter and the power to levy penalties 32 
for violations of this subchapter. 33 
 34 
 SECTION 8.  Arkansas Code § 26 -57-247(b), effective until the 35 
contingency in Acts 2023, No. 629, § 17, is met, concerning those unstamped 36    	HB1722 
 
 	45 	03/10/2025 1:26:46 PM JMB422 
and untaxed items that may be seized by the Director of Arkansas Tobacco 1 
Control, is amended to add an additional subdivision read as follows: 2 
 (5)  Hemp products are possessed, sold, or offered for sale in 3 
violation of § 20-56-501 et seq. 4 
 5 
 SECTION 9.  Arkansas Code § 26 -57-247, effective if the contingency in 6 
Acts 2023, No. 629, § 17, is met, is repealed. 7 
 26-57-247.  Seizure, forfeiture, and disposition of tobacco products 8 
and other property. 9 
 (a)  Cigarettes to which stamps have not been affixed as provided by 10 
law are subject to seizure and shall be held as evidence for prosecution. 11 
 (b)  The Director of Arkansas Tobacco Control may seize and hold for 12 
disposition of the courts or the Arkansas Tobacco Control Board all tobacco 13 
products, vapor products, alternative nicotine products, e -liquid products, 14 
or hemp-derived products found in the possession of a person dealing in, or a 15 
consumer of, tobacco products, vapor products, alternative nicotine products, 16 
e-liquid products, or hemp -derived products if: 17 
 (1)  Prima facie evidence exists that the full amount of excise 18 
tax due on the tobacco products has not been paid to the Secretary of the 19 
Department of Finance and Administration; 20 
 (2)  Tobacco products, vapor products, alternative nicotine 21 
products, or e-liquid products are in the possession of a wholesaler who does 22 
not possess a current Arkansas wholesale permit; 23 
 (3)  A retail establishment does not possess a current Arkansas 24 
retail permit; 25 
 (4)  The tobacco products, vapor products, alternative nicotine 26 
products, or e-liquid products have been offered for sale to the public at 27 
another location without a current Arkansas retail permit; or 28 
 (5)  Hemp-derived products are possessed, sold, or offered for 29 
sale in violation of § 20 -56-401 et seq. 30 
 (c)  Property, including money, used to facilitate a violation of this 31 
subchapter or the Unfair Cigarette Sales Act, § 4 -75-701 et seq., may be 32 
seized and forfeited to the state. 33 
 (d)(1)  A prosecuting attorney may institute a civil action against a 34 
person who is convicted of a criminal violation under this subchapter or the 35 
Unfair Cigarette Sales Act, § 4 -75-701 et seq., to obtain a judgment for: 36    	HB1722 
 
 	46 	03/10/2025 1:26:46 PM JMB422 
 (A)  Damages in an amount equal to the value of the 1 
property, funds, or a monetary instrument involved in the violation; 2 
 (B)  The proceeds acquired by a person involved in the 3 
enterprise or by reason of conduct in furtherance of the violation; and 4 
 (C)  Costs incurred by Arkansas Tobacco Control in the 5 
investigation, prosecution, and adjudication of criminal, civil, and 6 
administrative proceedings. 7 
 (2)  The standard of proof in an action brought under subdivision 8 
(d)(1) of this section is preponderance of the evidence. 9 
 (e)  The following are subject to forfeiture under this section upon 10 
order by a circuit court: 11 
 (1)  Tobacco products, vapor products, alternative nicotine 12 
products, or e-liquid products distributed, dispensed, or acquired in 13 
violation of this subchapter; 14 
 (2)  Raw materials, products, or equipment used or intended for 15 
use in manufacturing, compounding, processing, delivering, importing, or 16 
exporting a tobacco product, vapor product, alternative nicotine product, or 17 
e-liquid product in violation of this subchapter; 18 
 (3)  Property that is used or intended for use as a container for 19 
property described in subdivision (e)(1) or subdivision (e)(2) of this 20 
section; 21 
 (4)(A)  Except as provided in subdivision (e)(4)(B) of this 22 
section, a conveyance, including an aircraft, vehicle, or vessel, that is 23 
used or intended to be used to transport or in any manner to facilitate the 24 
transportation for the purpose of sale or receipt of property described in 25 
subdivision (e)(1) or subdivision (e)(2) of this section. 26 
 (B)(i)  A conveyance used by a person as a common carrier 27 
in the transaction of business as a common carrier is not subject to 28 
forfeiture under this section unless it appears that the owner or other 29 
person in charge of the conveyance is a consenting party or privy to a 30 
violation of this subchapter. 31 
 (ii) A conveyance is not subject to forfeiture under 32 
this section by reason of an act or omission established by the owner of the 33 
conveyance to have been committed or omitted without his or her knowledge or 34 
consent. 35 
 (C)  Upon a showing described in subdivision (e)(4)(B)(i) 36    	HB1722 
 
 	47 	03/10/2025 1:26:46 PM JMB422 
of this section by the owner or interest holder of a conveyance, the 1 
conveyance may nevertheless be forfeited if the prosecuting attorney 2 
establishes that the owner or interest holder either knew or should 3 
reasonably have known that the conveyance would be used to transport or in 4 
any manner to facilitate the transportation for the purpose of sale or 5 
receipt of property described in subdivision (e)(1) or subdivision (e)(2) of 6 
this section. 7 
 (D)  A conveyance encumbered by a bona fide security 8 
interest is subject to the interest of the secured party if the secured party 9 
neither had knowledge of nor consented to an act or omission in violation of 10 
this subchapter; 11 
 (5)  A book, record, or research product or material, including a 12 
formula, microfilm, tape, or data that is used or intended for use in 13 
violation of this subchapter; 14 
 (6)(A)  Except as provided in subdivision (e)(6)(B) of this 15 
section, a thing of value, including: 16 
 (i)  Firearms purchased from the proceeds of the sale 17 
of untaxed tobacco products, vapor products, alternative nicotine products, 18 
or e-liquid products in violation of this subchapter or used in furtherance 19 
of a criminal offense as described in § 26 -57-245; 20 
 (ii) Proceeds or profits traceable to an exchange 21 
described in subdivision (e)(6)(A)(i) of this section; and 22 
 (iii) Money, negotiable instruments, or security used 23 
or intended to be used to facilitate a violation of this subchapter. 24 
 (B)  Property shall not be forfeited under subdivision 25 
(e)(6)(A) of this section to the extent of the interest of an owner by reason 26 
of an act or omission established by him or her by a preponderance of the 27 
evidence to have been committed or omitted without his or her knowledge or 28 
consent; 29 
 (7)(A)  Money, coins, or currency found in close proximity to a 30 
forfeitable tobacco product, vapor product, alternative nicotine product, or 31 
e-liquid product or a forfeitable record of an importation of a tobacco 32 
product, vapor product, alternative nicotine product, or e -liquid product is 33 
presumed to be forfeitable under this section. 34 
 (B)  The burden of proof is upon a claimant of the money, 35 
coins, or currency to rebut the presumption in subdivision (e)(7)(A) of this 36    	HB1722 
 
 	48 	03/10/2025 1:26:46 PM JMB422 
section by a preponderance of the evidence; and 1 
 (8)(A)  Except as provided in subdivision (e)(8)(B) of this 2 
section, real property if it substantially assisted in, facilitated in any 3 
manner, or was used or intended for use in the commission of any act 4 
prohibited by this subchapter. 5 
 (B)(i)  Real property is not subject to forfeiture under 6 
this section by reason of an act or omission established by the owner of the 7 
real property by a preponderance of the evidence to have been committed or 8 
omitted without his or her knowledge or consent. 9 
 (ii) A forfeiture of real property encumbered by a 10 
mortgage or other lien is subject to the interest of the secured party if the 11 
secured party neither had knowledge of nor consented to an act or omission in 12 
violation of this subchapter. 13 
 (iii) If the circuit court finds by a preponderance 14 
of the evidence that grounds for a forfeiture exist under this section, the 15 
court shall enter an order requiring the forfeiture of the real property. 16 
 (C)  Upon an order of forfeiture of real property, the 17 
order shall be filed on the day issued and shall have prospective effect. 18 
 (D)  A forfeiture of real property does not affect the 19 
title of a bona fide purchaser who purchased the real property before the 20 
issuance of the order, and the order has no force or effect on the title of 21 
the bona fide purchaser. 22 
 (E)  A lis pendens filed in connection with an action 23 
pending under this section that may result in the forfeiture of real property 24 
is effective only from the time filed and has no retroactive effect. 25 
 (f)  A tobacco product, vapor product, alternative nicotine product, or 26 
e-liquid product that is possessed, transferred, sold, or offered for sale in 27 
violation of this subchapter may be seized and immediately forfeited to the 28 
state. 29 
 (g)(1)  Property subject to forfeiture under this subchapter may be 30 
seized by a law enforcement agent upon process issued by a circuit court 31 
having jurisdiction over the property on petition filed by the prosecuting 32 
attorney of the judicial circuit. 33 
 (2)  Seizure without process may be made if: 34 
 (A)  The seizure is incident to an arrest or a search under 35 
a search warrant or an inspection under the regulatory authority of Arkansas 36    	HB1722 
 
 	49 	03/10/2025 1:26:46 PM JMB422 
Tobacco Control; 1 
 (B)  The property subject to seizure has been the subject 2 
of a prior judgment in favor of the state in a criminal injunction or 3 
forfeiture proceeding based upon this subchapter; 4 
 (C)  The seizing law enforcement agency has probable cause 5 
to believe that the property is directly or indirectly dangerous to health or 6 
safety; or 7 
 (D)  The seizing law enforcement agency has probable cause 8 
to believe that the property was used or is intended to be used in violation 9 
of this subchapter. 10 
 (h)(1)  A state or local law enforcement agency shall not transfer 11 
property seized by the state or local agency under this section to a federal 12 
entity for forfeiture under federal law unless the circuit court having 13 
jurisdiction over the property enters an order, upon petition by the 14 
prosecuting attorney, authorizing the property to be transferred to the 15 
federal entity. 16 
 (2)  The transfer shall not be approved unless it reasonably 17 
appears that the activity giving rise to the investigation or seizure 18 
involves more than one (1) state or the nature of the investigation or 19 
seizure would be better pursued under federal law. 20 
 (i)(1)  Property seized for forfeiture under this section is not 21 
subject to replevin but is deemed to be in the custody of the seizing law 22 
enforcement agency subject only to an order or decree of the circuit court 23 
having jurisdiction over the property seized. 24 
 (2)  Subject to a need to retain the property as evidence, when 25 
property is seized under this subchapter, the seizing law enforcement agency 26 
may: 27 
 (A)  Remove the property to a place designated by the 28 
circuit court; 29 
 (B)  Place the property under constructive seizure, posting 30 
notice of pending forfeiture on it by: 31 
 (i)  Giving notice of pending forfeiture to its 32 
owners and interest holders; or 33 
 (ii) Filing notice of pending forfeiture in an 34 
appropriate public record relating to the property; 35 
 (C)  Remove the property to a storage area for safekeeping 36    	HB1722 
 
 	50 	03/10/2025 1:26:46 PM JMB422 
or, if the property is a negotiable instrument or money or is not needed for 1 
evidentiary purposes, deposit it into an interest -bearing account; or 2 
 (D)  Provide for another agency or custodian, including an 3 
owner, secured party, mortgagee, or lienholder, to take custody of the 4 
property and service, maintain, and operate it as reasonably necessary to 5 
maintain its value in an appropriate location within the jurisdiction of the 6 
court. 7 
 (3)(A)  In case of transfer of property, a transfer receipt shall 8 
be prepared by the transferring agency. 9 
 (B)  The transfer receipt shall: 10 
 (i)  List a detailed and complete description of the 11 
property being transferred; 12 
 (ii) State to whom the property is being transferred 13 
and the source or authorization for the transfer; and 14 
 (iii) Be signed by both the transferor and the 15 
transferee. 16 
 (C)  Both transferor and transferee shall maintain a copy 17 
of the transfer receipt. 18 
 (4)  A person who acts as custodian of property under this 19 
section is not liable to any person on account of an act done in a reasonable 20 
manner in compliance with an order under this subchapter. 21 
 (j)(1)  Property seized by a state or local law enforcement officer 22 
under this section who is detached to, deputized or commissioned by, or 23 
working in conjunction with a federal agency remains subject to this section. 24 
 (2)(A)  If property is seized for forfeiture by a law enforcement 25 
agency under this section, the seizing law enforcement officer shall prepare 26 
and sign a confiscation report. 27 
 (B)(i)  The party from whom the property is seized shall 28 
also sign the confiscation report if present and shall immediately receive a 29 
copy of the confiscation report. 30 
 (ii) If the party refuses to sign the confiscation 31 
report, the confiscation report shall be signed by one (1) additional law 32 
enforcement officer, stating that the party refused to sign the confiscation 33 
report. 34 
 (C)  The original confiscation report shall be: 35 
 (i)  Filed with the seizing law enforcement agency 36    	HB1722 
 
 	51 	03/10/2025 1:26:46 PM JMB422 
within forty-eight (48) hours after the seizure; and 1 
 (ii) Maintained in a separate file. 2 
 (D)  One (1) copy of the confiscation report shall be 3 
retained by the seizing law enforcement officer. 4 
 (3)  The confiscation report shall contain the following 5 
information: 6 
 (A)  A detailed description of the property seized 7 
including serial or model numbers and odometer or hour reading of vehicles or 8 
equipment; 9 
 (B)  The date of seizure; 10 
 (C)  The name and address of the party from whom the 11 
property was seized; 12 
 (D)  The reason for the seizure; 13 
 (E)  The location where the property will be held; 14 
 (F)  The seizing law enforcement officer's name; and 15 
 (G)  A signed statement by the seizing law enforcement 16 
officer stating that the confiscation report is true and complete. 17 
 (4)  Within three (3) business days after receiving the 18 
confiscation report, the seizing law enforcement agency shall forward a copy 19 
of the confiscation report to the prosecuting attorney for the district where 20 
the property was seized and to the director. 21 
 (5)(A)  Arkansas Legislative Audit shall notify the director and 22 
a circuit court in the county of a law enforcement agency, prosecuting 23 
attorney, or other public entity that the law enforcement agency, prosecuting 24 
attorney, or public entity is ineligible to receive forfeited funds, 25 
forfeited property, or grants from the council, if Arkansas Legislative Audit 26 
determines by its own investigation or upon written notice from the director 27 
that: 28 
 (i)  The law enforcement agency failed to complete 29 
and file the confiscation reports as required by this section; 30 
 (ii) The law enforcement agency, prosecuting 31 
attorney, or public entity has not properly accounted for the seized 32 
property; or 33 
 (iii) The prosecuting attorney has failed to comply 34 
with the notification requirement set forth in subdivision (m)(2) of this 35 
section. 36    	HB1722 
 
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 (B)  After the notice, the circuit court shall not issue an 1 
order distributing seized property to that law enforcement agency, 2 
prosecuting attorney, or public entity, nor shall a grant be awarded by the 3 
council to that law enforcement agency, prosecuting attorney, or public 4 
entity until: 5 
 (i)  The appropriate officials of the law enforcement 6 
agency, prosecuting attorney, or public entity have appeared before the 7 
Legislative Joint Auditing Committee; and 8 
 (ii) The Legislative Joint Auditing Committee has 9 
adopted a motion authorizing subsequent transfers of forfeited property to 10 
the law enforcement agency, prosecuting attorney, or public entity. 11 
 (C)(i)  If a law enforcement agency, prosecuting attorney, 12 
or other public entity is ineligible to receive forfeited property, the 13 
circuit court shall order money that would have been distributed to that law 14 
enforcement agency, prosecuting attorney, or public entity to be transmitted 15 
to the Treasurer of State for deposit into the Special State Assets 16 
Forfeiture Fund. 17 
 (ii) If the property is not cash, the circuit court 18 
shall order the property converted to cash under this section and the 19 
proceeds transmitted to the Treasurer of State for deposit into the Special 20 
State Assets Forfeiture Fund. 21 
 (D)  Moneys deposited into the Special State Assets 22 
Forfeiture Fund are not subject to recovery or retrieval by an ineligible law 23 
enforcement agency, prosecuting attorney, or other public entity. 24 
 (6)  The director shall establish by rule a standardized 25 
confiscation report form to be used by all law enforcement agencies, with 26 
specific instructions and guidelines concerning the nature and dollar value 27 
of all property, including firearms, to be included in the confiscation 28 
report and forwarded to the office of the local prosecuting attorney and the 29 
director under this subsection. 30 
 (k)(1)(A)  The prosecuting attorney shall initiate forfeiture 31 
proceedings by filing a complaint with the circuit clerk of the county where 32 
the property was seized and by serving the complaint on all known owners and 33 
interest holders of the seized property in accordance with the Arkansas Rules 34 
of Civil Procedure. 35 
 (B)  The complaint may be based on in rem or in personam 36    	HB1722 
 
 	53 	03/10/2025 1:26:46 PM JMB422 
jurisdiction but shall not be filed to avoid the distribution requirements 1 
set forth in subdivision (l)(1) of this section. 2 
 (C)  The prosecuting attorney shall mail a copy of the 3 
complaint to the director within five (5) calendar days after filing the 4 
complaint. 5 
 (2)(A)  The complaint shall include a copy of the confiscation 6 
report and shall be filed within sixty (60) days after receiving a copy of 7 
the confiscation report from the seizing law enforcement agency. 8 
 (B)  In a case involving real property, the complaint shall 9 
be filed within sixty (60) days of the defendant's conviction on the charge 10 
giving rise to the forfeiture. 11 
 (3)(A)  The prosecuting attorney may file the complaint after the 12 
expiration of the time only if the complaint is accompanied by a statement of 13 
good cause for the late filing. 14 
 (B)  However, the complaint shall not be filed more than 15 
one hundred twenty (120) days after either the date of the seizure or, in a 16 
case involving real property, the date of the defendant's conviction. 17 
 (C)(i)  If the circuit court determines that good cause has 18 
not been established, the circuit court shall order that the seized property 19 
be returned to the owner or interest holder. 20 
 (ii) In addition, items seized but not subject to 21 
forfeiture under this section or subject to disposition under law or the 22 
Arkansas Rules of Criminal Procedure may be ordered returned to the owner or 23 
interest holder. 24 
 (iii) If the owner or interest holder cannot be 25 
determined, the court may order disposition of the property. 26 
 (4)  Within the time set forth in the Arkansas Rules of Civil 27 
Procedure, the owner or interest holder of the seized property shall file 28 
with the circuit clerk a verified answer to the complaint that shall include: 29 
 (A)  A statement describing the seized property and the 30 
owner's interest or interest holder's interest in the seized property with 31 
supporting documents to establish the owner's interest or interest holder's 32 
interest; 33 
 (B)  A certification by the owner or interest holder 34 
stating that he or she has read the document and that it has not been filed 35 
for an improper purpose; 36    	HB1722 
 
 	54 	03/10/2025 1:26:46 PM JMB422 
 (C)  A statement setting forth any defense to forfeiture; 1 
and 2 
 (D)  The address at which the owner or interest holder will 3 
accept mail. 4 
 (5)(A)  If the owner or interest holder fails to file an answer, 5 
the prosecuting attorney may move for default judgment under the Arkansas 6 
Rules of Civil Procedure. 7 
 (B)(i)  If a timely answer has been filed, the prosecuting 8 
attorney has the burden of proving by a preponderance of the evidence that 9 
the seized property should be forfeited. 10 
 (ii) After the prosecuting attorney has presented 11 
proof, an owner or interest holder of the property seized is allowed to 12 
present evidence showing why the seized property should not be forfeited. 13 
 (iii) If the circuit court determines that grounds 14 
for forfeiting the seized property exist and that a defense to forfeiture has 15 
not been established by the owner or interest holder, the circuit court shall 16 
enter an order under this section. However, if the circuit court determines 17 
either that the prosecuting attorney has failed to establish that grounds for 18 
forfeiting the seized property exist or that the owner or interest holder has 19 
established a defense to forfeiture, the court shall order that the seized 20 
property be immediately returned to the owner or interest holder. 21 
 (l)(1)  If the circuit court having jurisdiction over the seized 22 
property finds upon a hearing by a preponderance of the evidence that grounds 23 
for a forfeiture exist under this subchapter, the circuit court shall enter 24 
an order: 25 
 (A)  To permit the law enforcement agency or prosecuting 26 
attorney to retain the seized property for law enforcement or prosecutorial 27 
purposes, subject to the following provisions: 28 
 (i)(a)  Seized property may not be retained for 29 
official use for more than three (3) years, unless the circuit court finds 30 
that the seized property has been used for law enforcement or prosecutorial 31 
purposes and authorizes continued use for those purposes on an annual basis. 32 
 (b)  At the end of the retention period, the 33 
seized property shall be sold and eighty percent (80%) of the proceeds shall 34 
be deposited into the tobacco control fund of the retaining law enforcement 35 
agency or prosecuting attorney, and twenty percent (20%) of the proceeds 36    	HB1722 
 
 	55 	03/10/2025 1:26:46 PM JMB422 
shall be deposited into the State Treasury as special revenues to be credited 1 
to the Special State Assets Forfeiture Fund. 2 
 (c)  The retaining law enforcement agency or 3 
prosecuting attorney may sell the retained seized property during the time 4 
allowed for retention. However, the proceeds of the sale shall be distributed 5 
as set forth in subdivision (l)(1)(A)(i)(b) of this section; 6 
 (ii) If the circuit court determines that retained 7 
seized property has been used for personal use or by non -law enforcement 8 
personnel for non-law enforcement purposes, the circuit court shall order the 9 
seized property to be sold under § 5 -5-101(e) and (f), and the proceeds shall 10 
be deposited into the State Treasury as special revenues to be credited to 11 
the Special State Assets Forfeiture Fund; 12 
 (iii)(a)  A law enforcement agency may use 13 
forfeited property or money if the circuit court's order specifies that the 14 
forfeited property or money is forfeited to the prosecuting attorney, 15 
sheriff, chief of police, Division of Arkansas State Police, director, or 16 
Arkansas Highway Police Division of the Arkansas Department of 17 
Transportation. 18 
 (b)  After the order, the prosecuting attorney, 19 
sheriff, chief of police, Division of Arkansas State Police, director, or 20 
Arkansas Highway Police Division of the Arkansas Department of Transportation 21 
shall maintain an inventory of the forfeited property or money, be 22 
accountable for the forfeited property or money, and be subject to 23 
subdivision (j)(5) of this section with respect to the forfeited property or 24 
money; 25 
 (iv)(a)  An aircraft is forfeited to the office 26 
of the director and may be used only for tobacco, vapor product, alternative 27 
nicotine product, or e -liquid product smuggling interdiction efforts within 28 
the discretion of the director. 29 
 (b)  However, if the director determines that 30 
the aircraft should be sold, the proceeds of the sale shall be distributed as 31 
set forth in subdivision (l)(1)(A)(i)(b) of this section; 32 
 (v)  A firearm not retained for official use shall be 33 
disposed of in accordance with state and federal law; and 34 
 (vi) A tobacco product, vapor product, alternative 35 
nicotine product, or e -liquid product shall be destroyed pursuant to a court 36    	HB1722 
 
 	56 	03/10/2025 1:26:46 PM JMB422 
order; 1 
 (B)(i)  To sell seized property that is not required by law 2 
to be destroyed and that is not harmful to the public. 3 
 (ii) Seized property described in subdivision 4 
(l)(1)(B)(i) of this section shall be sold at a public sale by the retaining 5 
law enforcement agency or prosecuting attorney under § 5 -5-101(e) and (f); or 6 
 (C)  To transfer a motor vehicle to a school district for 7 
use in a driver education course. 8 
 (2)  Disposition of forfeited property under this subsection is 9 
subject to the need to retain the forfeited property as evidence in any 10 
related proceeding. 11 
 (3)  Within three (3) business days after the entry of the order, 12 
the circuit clerk shall forward to the director copies of the confiscation 13 
report, the circuit court's order, and other documentation detailing the 14 
disposition of the seized property. 15 
 (m)(1)(A)  Subject to subdivision (j)(5) of this section, the proceeds 16 
of sales conducted under this section and moneys forfeited or obtained by 17 
judgment or settlement under this subchapter shall be deposited and 18 
distributed in the manner provided in this subsection. 19 
 (B)  Moneys received from a federal forfeiture for a 20 
violation of this subchapter shall be deposited and distributed under this 21 
section. 22 
 (2)(A)  The proceeds of a sale and moneys forfeited or obtained 23 
by judgment or settlement under this subchapter shall be deposited into the 24 
asset forfeiture fund of the prosecuting attorney and is subject to the 25 
following provisions: 26 
 (i)  If, during a calendar year, the aggregate amount 27 
of moneys deposited into the asset forfeiture fund exceeds twenty thousand 28 
dollars ($20,000) per county, the prosecuting attorney, within fourteen (14) 29 
days after that time, shall notify the circuit judges in the judicial 30 
district and the director; 31 
 (ii) Subsequent to the notification set forth in this 32 
section, twenty percent (20%) of the proceeds of an additional sale and 33 
additional moneys forfeited or obtained by judgment or settlement under this 34 
subchapter in the same calendar year shall be deposited into the State 35 
Treasury as special revenues to be credited to the Special State Assets 36    	HB1722 
 
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Forfeiture Fund, and the remainder shall be deposited into the asset 1 
forfeiture fund of the prosecuting attorney; 2 
 (iii) Failure by the prosecuting attorney to comply 3 
with the notification requirement set forth in this section renders the 4 
prosecuting attorney and an entity eligible to receive forfeited moneys or 5 
property from the prosecuting attorney ineligible to receive forfeited moneys 6 
or property, except as provided in this section; and 7 
 (iv) Twenty percent (20%) of moneys in excess of 8 
twenty thousand dollars ($20,000) that have been retained but not reported as 9 
required by this section are subject to recovery for deposit into the Special 10 
State Assets Forfeiture Fund. 11 
 (B)  The prosecuting attorney shall administer expenditures 12 
from the asset forfeiture fund, which is subject to audit by Arkansas 13 
Legislative Audit. Moneys distributed from the asset forfeiture fund shall be 14 
used only for law enforcement and prosecutorial purposes. Moneys in the asset 15 
forfeiture fund shall be distributed in the following order: 16 
 (i)  For the satisfaction of a bona fide security 17 
interest or lien; 18 
 (ii) For payment of a proper expense of the 19 
proceeding for forfeiture and sale, including expenses of seizure, 20 
maintenance of custody, advertising, and court costs; 21 
 (iii) Any balance under three hundred fifty thousand 22 
dollars ($350,000) shall be distributed proportionally so as to reflect 23 
generally the contribution of the appropriate local or state law enforcement 24 
or prosecutorial agency's participation in any activity that led to the 25 
seizure or forfeiture of the property or deposit of moneys under this 26 
subchapter; and 27 
 (iv) Any balance over three hundred fifty thousand 28 
dollars ($350,000) shall be forwarded to the director to be transferred to 29 
the State Treasury for deposit into the Special State Assets Forfeiture Fund 30 
for distribution under this section. 31 
 (C)(i)  For a forfeiture in an amount greater than three 32 
hundred fifty thousand dollars ($350,000) from which expenses are paid for a 33 
proceeding for forfeiture and sale under this section, an itemized accounting 34 
of the expenses shall be delivered to the director within ten (10) calendar 35 
days after the distribution of the funds. 36    	HB1722 
 
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 (ii) The itemized accounting shall include the 1 
expenses paid, to whom paid, and for what purposes the expenses were paid. 2 
 (3)(A)  Moneys received by a prosecuting attorney or law 3 
enforcement agency from a federal forfeiture for a violation of this 4 
subchapter shall be deposited and maintained in a separate account. 5 
 (B)  However, a balance over three hundred fifty thousand 6 
dollars ($350,000) shall be distributed as required under this section. 7 
 (4)  Other moneys shall not be maintained in the account except 8 
for interest income generated by the account. 9 
 (5)  Moneys in the account shall only be used for law enforcement 10 
and prosecutorial purposes consistent with governing federal law. 11 
 (6)  The account is subject to audit by Arkansas Legislative 12 
Audit. 13 
 (7)  A balance over three hundred fifty thousand dollars 14 
($350,000) shall be transferred to the State Treasury for deposit into the 15 
Special State Assets Forfeiture Fund in which it shall be maintained 16 
separately and distributed consistently with governing federal law and upon 17 
the advice of the director. 18 
 (n)  In personam jurisdiction may be based on a person's presence in 19 
the state or on his or her conduct in the state, as set out in § 16 -4-101(C), 20 
and is subject to the following additional provisions: 21 
 (1)  A temporary restraining order under this section may be 22 
entered ex parte on application of the state upon a showing that: 23 
 (A)  There is probable cause to believe that the property 24 
with respect to which the order is sought is subject to forfeiture under this 25 
section; and 26 
 (B)  Notice of the action would jeopardize the availability 27 
of the property for forfeiture; 28 
 (2)(A)  Notice of the entry of a temporary restraining order and 29 
an opportunity for hearing shall be afforded to a person known to have an 30 
interest in the property. 31 
 (B)  The hearing shall be held at the earliest possible 32 
date consistent with Rule 65 of the Arkansas Rules of Civil Procedure and is 33 
limited to the issues of whether: 34 
 (i)  There is a probability that the state will 35 
prevail on the issue of forfeiture and that failure to enter the temporary 36    	HB1722 
 
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restraining order will result in the property's being destroyed, conveyed, 1 
alienated, encumbered, disposed of, received, removed from the jurisdiction 2 
of the circuit court, concealed, or otherwise made unavailable for 3 
forfeiture; and 4 
 (ii) The need to preserve the availability of 5 
property through the entry of the requested temporary restraining order 6 
outweighs the hardship on an owner or interest holder against whom the 7 
temporary restraining order is to be entered; 8 
 (3)  The state has the burden of proof by a preponderance of the 9 
evidence to show that the defendant's property is subject to forfeiture; 10 
 (4)(A)  On a determination of liability of a person for conduct 11 
giving rise to forfeiture under this section, the circuit court shall enter a 12 
judgment of forfeiture of the property subject to forfeiture as alleged in 13 
the complaint and may authorize the prosecuting attorney or a law enforcement 14 
officer to seize property subject to forfeiture under this section not 15 
previously seized or not then under seizure. 16 
 (B)  The order of forfeiture shall be consistent with 17 
subsection (l) of this section. 18 
 (C)  In connection with the judgment, on application of the 19 
state, the circuit court may enter an appropriate order to protect the 20 
interest of the state in property ordered forfeited; and 21 
 (5)  Subsequent to the finding of liability and order of 22 
forfeiture, the following procedures apply: 23 
 (A)  The attorney for the state shall give notice of 24 
pending forfeiture in the manner provided in Rule 4 of the Arkansas Rules of 25 
Civil Procedure to an owner or interest holder who has not previously been 26 
given notice; 27 
 (B)  An owner of or interest holder in property that has 28 
been ordered forfeited and whose claim is not precluded may file a claim 29 
within thirty (30) days after initial notice of pending forfeiture or after 30 
notice under Rule 4 of the Arkansas Rules of Civil Procedure, whichever is 31 
earlier; and 32 
 (C)  The circuit court may amend the in personam order of 33 
forfeiture if the circuit court determines that a claimant has established 34 
that he or she has an interest in the property and that the interest is 35 
exempt under this section. 36    	HB1722 
 
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 (o)  The circuit court shall order the forfeiture of other property of 1 
a claimant or defendant up to the value of the claimant's or defendant's 2 
property found by the circuit court to be subject to forfeiture under this 3 
section if any of the forfeitable property had remained under the control or 4 
custody of the claimant or defendant and: 5 
 (1)  Cannot be located; 6 
 (2)  Was transferred or conveyed to, sold to, or deposited with a 7 
third party; 8 
 (3)  Is beyond the jurisdiction of the circuit court; 9 
 (4)  Was substantially diminished in value while not in the 10 
actual physical custody of the seizing law enforcement agency; 11 
 (5)  Was commingled with other property that cannot be divided 12 
without difficulty; or 13 
 (6)  Is subject to interest exempted from forfeiture under this 14 
subchapter. 15 
 (p)(1)  There is created on the books of law enforcement agencies and 16 
prosecuting attorneys a tobacco control fund. 17 
 (2)  The fund shall consist of moneys obtained under this section 18 
and other revenue as may be provided by law or ordinance. 19 
 (3)  Moneys in the tobacco control fund shall be appropriated on 20 
a continuing basis and are not subject to the Revenue Stabilization Law, § 21 
19-5-101 et seq. 22 
 (4)(A)  The fund shall be used for law enforcement and 23 
prosecutorial purposes. 24 
 (B)  Each prosecuting attorney shall submit to the Director 25 
of Arkansas Tobacco Control on or before June 30 of each year a report 26 
detailing moneys received and expenditures made from the tobacco control fund 27 
during the preceding twelve -month period. 28 
 (5)  The law enforcement agencies and prosecuting attorneys shall 29 
submit to the director on or before June 30 of each year a report detailing 30 
any moneys received and expenditures made from the tobacco control fund 31 
during the preceding twelve -month period. 32 
 (6)  Moneys from the tobacco control fund may not supplant other 33 
local, state, or federal funds. 34 
 (7)  The tobacco control fund is subject to audit by Arkansas 35 
Legislative Audit. 36    	HB1722 
 
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 1 
 SECTION 10.  Arkansas Code § 26 -57-255(g)(3), effective until the 2 
contingency in Acts 2023, No. 629, § 17, is met, concerning the powers and 3 
duties of the Arkansas Tobacco Control Board, is amended to read as follows: 4 
 (3)(A)  Conduct public hearings when appropriate regarding a 5 
permit authorized under this subchapter or in violation of this subchapter, 6 
the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-501 7 
et seq., or any other federal, state, or local statute, ordinance, rule, or 8 
regulation concerning the sale of tobacco products, vapor products, 9 
alternative nicotine products, or e -liquid products to minors , or the rules 10 
promulgated by Arkansas Tobacco Control. 11 
 (B)  After notice and hearing held in accordance with the 12 
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 13 
finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4	-75-14 
701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 15 
Tobacco Control, the board may suspend or revoke any or all permits issued by 16 
the director to any person. 17 
 (C)  The board may levy a civil penalty in an amount not to 18 
exceed five thousand dollars ($5,000) for each violation against a person 19 
found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 20 
§ 4-75-701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 21 
Tobacco Control. 22 
 (D)  Each day of a violation is a separate violation. 23 
 (E)  A civil penalty under subdivision (g)(3)(C) of this 24 
section is in addition to any penalties levied by the board under § 26	-57-25 
248. 26 
 (F)  In conducting a hearing under this subdivision (g)(3), 27 
the board may examine or cause to be examined under oath any witness and the 28 
books and records of a permitted person or other person; 29 
 30 
 SECTION 11.  Arkansas Code § 26 -57-255, effective if the contingency in 31 
Acts 2023, No. 629, § 17, is met, is repealed. 32 
 26-57-255.  Arkansas Tobacco Control Board — Creation — Definition.33 
 (a)  There is created the Arkansas Tobacco Control Board to consist of 34 
the following eight (8) members appointed by the Governor: 35 
 (1)  Two (2) members of the board shall be wholesalers of tobacco 36    	HB1722 
 
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products, vapor products, alternative nicotine products, or e -liquid 1 
products; 2 
 (2)  Two (2) members of the board shall be retailers of tobacco 3 
products, vapor products, alternative nicotine products, or e -liquid 4 
products; and 5 
 (3)  Four (4) members of the board shall be members of the public 6 
at large who are not public employees or officials, at least one (1) of whom 7 
shall be an African-American, and two (2) of whom shall be appointed by the 8 
Governor after consulting the Arkansas Medical Society, Inc. and subject to 9 
confirmation by the Senate. 10 
 (b)  The Governor shall designate which member of the board shall act 11 
as chair and that person shall serve as chair for two (2) years unless his or 12 
her membership on the board ceases prior to the end of the two -year period. 13 
 (c)(1)  All members of the board shall be residents of the State of 14 
Arkansas and confirmed by the Senate. 15 
 (2)  The term of office shall be five (5) years. 16 
 (d)(1)  A minimum of five (5) members is required for a quorum. 17 
 (2)(A)  All action by the board shall be by a majority vote of 18 
the board members present at the regular or special meeting, and the board 19 
may take no official action in connection with a matter except at a regular 20 
or special meeting. 21 
 (B)  In the event of a tie vote of the members of the 22 
board, the Director of Arkansas Tobacco Control may cast the deciding vote. 23 
 (e)  A person who is not a citizen of the United States and who has not 24 
resided in the State of Arkansas for at least two (2) consecutive years 25 
immediately preceding the date of appointment shall not be appointed to the 26 
board. 27 
 (f)  Each member of the board and the director shall take and subscribe 28 
to an oath that he or she will support and enforce this subchapter, the 29 
tobacco control laws of this state, the Arkansas Constitution, and the United 30 
States Constitution. 31 
 (g)  The board shall: 32 
 (1)  Act as the adjudicatory body for Arkansas Tobacco Control; 33 
 (2)  Have responsibility for approving the issuance, suspension, 34 
and revocation of the permits enumerated in § 26 -57-219; 35 
 (3)(A)  Conduct public hearings when appropriate regarding a 36    	HB1722 
 
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permit authorized under this subchapter or in violation of this subchapter, 1 
the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-401 2 
et seq., or any other federal, state, or local statute, ordinance, rule, or 3 
regulation concerning the sale of tobacco products, vapor products, 4 
alternative nicotine products, e -liquid products, or hemp -derived products to 5 
minors or the rules promulgated by Arkansas Tobacco Control. 6 
 (B)  After notice and hearing held in accordance with the 7 
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 8 
finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4	-75-9 
701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 10 
Tobacco Control, the board may suspend or revoke any or all permits issued by 11 
the director to any person. 12 
 (C)  The board may levy a civil penalty in an amount not to 13 
exceed five thousand dollars ($5,000) for each violation against a person 14 
found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 15 
§ 4-75-701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 16 
Tobacco Control. 17 
 (D)  Each day of a violation is a separate violation. 18 
 (E)  A civil penalty under subdivision (g)(3)(C) of this 19 
section is in addition to any penalties levied by the board under § 26	-57-20 
248. 21 
 (F)  In conducting a hearing under this subdivision (g)(3), 22 
the board may examine or cause to be examined under oath any witness and the 23 
books and records of a permitted person or other person; 24 
 (4)  When requested by the written petition of at least three (3) 25 
interested parties, conduct public hearings to receive testimony regarding 26 
the facts relevant to the issuance of a permit under this subchapter; and 27 
 (5)(A)  Not have authority in criminal prosecutions or the 28 
assessment or collection of any taxes. 29 
 (B)  However, the board shall refuse to approve the 30 
issuance or renewal of a permit issued by the director for the failure to pay 31 
taxes or fees imposed on tobacco products or any permit fees imposed under 32 
this subchapter or any other state or local taxes. 33 
 (h)(1)  The board may assess penalties for a violation of § 5 -27-227 34 
according to the following schedule: 35 
 (A)  For a first violation within a forty -eight-month 36    	HB1722 
 
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period, a civil penalty not to exceed two hundred fifty dollars ($250); 1 
 (B)  For a second violation within a forty -eight-month 2 
period, a civil penalty not to exceed five hundred dollars ($500) and 3 
suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 4 
two (2) days; 5 
 (C)  For a third violation within a forty -eight-month 6 
period, a civil penalty not to exceed one thousand dollars ($1,000) and 7 
suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 8 
seven (7) days; 9 
 (D)  For a fourth or subsequent violation within a forty -10 
eight-month period, a civil penalty not to exceed two thousand dollars 11 
($2,000) and suspension of the permit enumerated in § 26 -57-219 for a period 12 
not to exceed fourteen (14) days; and 13 
 (E)  For a fifth or subsequent violation within a forty-14 
eight-month period, in addition to the other penalties provided under this 15 
subsection, the permit enumerated in § 26 -57-219 may be revoked. 16 
 (2)(A)  A penalty under this subsection shall not be imposed on a 17 
retailer or an agent or employee of a retailer who can establish an 18 
affirmative defense that before the date of the violation the retailer or 19 
agent or employee of the retailer furnishing the tobacco products, vapor 20 
products, alternative nicotine products, e -liquid products, or cigarette 21 
papers reasonably relied on proof of age that identified the person receiving 22 
the tobacco products, vapor products, alternative nicotine products, e	-liquid 23 
products, or cigarette papers as not being a minor. 24 
 (B)  As used in this subsection, “proof of age” means valid 25 
documentation issued by a governmental agency containing the person's 26 
photograph, date of birth, and an expiration date. 27 
 (3)(A)  For a corporation or business with more than one (1) 28 
retail location, to determine the number of accumulated violations for 29 
purposes of the penalty schedule stated in this subsection, violations of § 30 
5-27-227 by one (1) retail location shall not be accumulated against other 31 
retail locations of that same corporation or business. 32 
 (B)  For a retail location, for purposes of the penalty 33 
schedule stated in this subsection, violations accumulated and assessed 34 
against a prior owner of the retail location shall not be accumulated against 35 
a new owner of the same retail location unless approved by the board. 36    	HB1722 
 
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 1 
 SECTION 12.  Arkansas Code § 26 -57-256(a)(2) and (3), effective until 2 
the contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 3 
Arkansas Tobacco Control, are amended to read as follows: 4 
 (2)(A)  Receive applications for and issue, refuse, suspend, and 5 
revoke permits listed in § 26 -57-219 and § 20-56-501 et seq. 6 
 (B)  Arkansas Tobacco Control shall refuse to issue or 7 
renew any permits issued by the Director of Arkansas Tobacco Control for the 8 
failure to pay: 9 
 (i)  Any applicable taxes or fees imposed on tobacco 10 
products,; 11 
 (ii)  Permit permit fees imposed under this 12 
subchapter and § 20-56-501 et seq.;, or 13 
 (iii)  Any any other state or local taxes; 14 
 (3)  Prescribe forms of applications for permits under this 15 
subchapter and § 20-56-501 et seq; 16 
 17 
 SECTION 13.  Uncodified Section 17 of Acts 2023, No. 629, which 18 
reflects changes to the references to "Sections 6 -14", and "Sections 2 -5" in 19 
Acts 2023, No. 629, §§ 16 and 17 made by the Arkansas Code Revision 20 
Commission, is repealed. 21 
 SECTION 17.  Contingent effective date. 22 
 Sections 6-14 [8-16] of this act shall become effective only upon the 23 
certification of the Arkansas Attorney General that the State of Arkansas is 24 
currently enjoined from enforcing Sections 2 -5 [2-7] of this act relating to 25 
delta-8 tetrahydrocannabinol and delta -10 tetrahyrdocannabinol, but no 26 
earlier than August 1, 2023. 27 
 28 
 SECTION 14.  DO NOT CODIFY.  Rules. 29 
 (a)  When adopting the initial rules required under this act, Arkansas 30 
Tobacco Control shall file the final rules with the Secretary of State for 31 
adoption under § 25-15-204(f): 32 
 (1)  On or before January 1, 2026; or 33 
 (2)  If approval under § 10 -3-309 has not occurred by January 1, 34 
2026, as soon as practicable after approval under § 10 -3-309. 35 
 (b)  Arkansas Tobacco Control shall file the proposed rules with the 36    	HB1722 
 
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Legislative Council under § 10 -3-309(c) sufficiently in advance of January 1, 1 
2026, so that the Legislative Council may consider the rules for approval 2 
before January 1, 2026. 3 
 4 
 SECTION 15.  EMERGENCY CLAUSE.  It is found and determined by the 5 
General Assembly of the State of Arkansas that minors in this state are 6 
currently purchasing hemp -derived products without any regulations or testing 7 
of the hemp-derived products; that minors are becoming ill when taking 8 
synthetic drugs that they believe are hemp -derived products; and that this 9 
act is immediately necessary to regulate the hemp -derived products, including 10 
testing requirements, to ensure the health and safety of the minors of this 11 
state. Therefore, an emergency is declared to exist, and this act being 12 
immediately necessary for the preservation of the public peace, health, and 13 
safety shall become effective on: 14 
 (1)  The date of its approval by the Governor; 15 
 (2)  If the bill is neither approved nor vetoed by the Governor, 16 
the expiration of the period of time during which the Governor may veto the 17 
bill; or 18 
 (3)  If the bill is vetoed by the Governor and the veto is 19 
overridden, the date the last house overrides the veto. 20 
 21 
 22 
 23 
 24 
 25 
 26 
 27 
 28 
 29 
 30 
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 34 
 35 
 36