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 SENATE BILL 455 3
4
By: Senator J. Bryant 5
By: Representative Gonzales 6
7
For An Act To Be Entitled 8
AN ACT TO ALLOW REGULATION OF HEMP PRODUCTS BY 9
ARKANSAS TOBACCO CONTROL; TO AMEND THE UNIFORM 10
CONTROLLED SUBSTANCES ACT TO REMOVE CERTAIN 11
SUBSTANCES THAT ARE DEFINED AS HEMP PRODUCTS; AND FOR 12
OTHER PURPOSES. 13
14
15
Subtitle 16
TO ALLOW REGULATION OF HEMP PRODUCTS BY 17
ARKANSAS TOBACCO CONTROL; AND TO AMEND 18
THE UNIFORM CONTROLLED SUBSTANCES ACT TO 19
REMOVE CERTAIN SUBSTANCES THAT ARE 20
DEFINED AS HEMP PRODUCTS. 21
22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
24
SECTION 1. Arkansas Code § 5 -64-101(16)(B)(vi), concerning the 25
exclusion from the definition of "marijuana" within the Uniform Controlled 26
Substances Act, is amended to read as follows: 27
(vi) Hemp-derived cannabidiol that: Hemp as defined 28
in § 20-56-501 or 29
(a) Contains not more than three -tenths of one 30
percent (0.3%) of delta -9 tetrahydrocannabinol (THC) on a dry weight basis as 31
verified by a nationally accredited laboratory for quality, purity, and 32
accuracy standards; and 33
(b) Is not approved by the United States Food 34
and Drug Administration for marketing as a medication; 35
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SECTION 2. Arkansas Code § 5 -64-215(a)(2), concerning the substances 1
in Schedule VI of the Uniform Controlled Substances Act, is amended to read 2
as follows: 3
(2) Tetrahydrocannabinols, unless the tetrahydrocannabinol is: 4
(A) Contained in hemp-derived cannabidiol hemp or a hemp 5
product under § 20-56-501; or 6
(B) Not more than three -tenths of one percent (0.3%) of 7
delta-9 tetrahydrocannabinol in the hemp -derived cannabidiol on a dry weight 8
basis as verified by a nationally accredited laboratory for quality, purity, 9
and accuracy standards; and 10
(C)(B) Not approved Approved by the United States Food and 11
Drug Administration for marketing as a medication; 12
13
SECTION 3. Arkansas Code § 5 -64-215(a)(5)(A)(i), concerning the 14
substances in Schedule VI of the Uniform Controlled Substances Act, is 15
amended to read as follows: 16
(A)(i) Tetrahydrocannabinols, including without limitation 17
the following: 18
(a) Delta-1 cis or trans tetrahydrocannabinol , 19
otherwise known as a delta -9 cis or trans tetrahydrocannabinol, and its 20
optical isomers; 21
(b) Delta-6 cis or trans tetrahydrocannabinol , 22
otherwise known as a delta -8 cis or trans tetrahydrocannabinol, and its 23
optical isomers; and 24
(c) Delta-3,4 cis or trans 25
tetrahydrocannabinol , otherwise known as a delta -6a,10a cis or trans 26
tetrahydrocannabinol, and its optical isomers ; 27
(d) Delta-10 cis or trans 28
tetrahydrocannabinol, and its optical isomers; 29
(e) Delta-8 tetrahydrocannabinol acetate 30
ester; 31
(f) Delta-9 tetrahydrocannabinol acetate 32
ester; 33
(g) Delta-6a,10a tetrahydrocannabinol acetate 34
ester; 35
(h) Delta-10 tetrahydrocannabinol acetate 36 SB455
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ester; 1
(i) A product derived from industrial hemp 2
that was produced as a result of a synthetic chemical process that converted 3
the industrial hemp or a substance contained in the industrial hemp into 4
delta-8, delta-9, delta-6a,10a, or delta-10 tetrahydrocannabinol including 5
their respective acetate esters; and 6
(j) Any other psychoactive substance derived 7
therein. 8
9
SECTION 4. Arkansas Code § 19-6-831(b), effective until the 10
contingency in Acts 2023, No. 629, § 17, is met, is amended to read as 11
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 SB455
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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 Products 25
26
20-56-501. Definitions. 27
As used in this subchapter: 28
(1) “Hemp” means the plant Cannabis sativa and any part of the 29
plant, including the seeds of the plant, that contains a delta -9 30
tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 31
less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 32
isomers, acids, salts, and salts of isomers, whether growing or not; 33
(2) "Hemp product" means any product derived from or containing 34
hemp, including without limitation oils, extracts, delta -8 35
tetrahydrocannabinol, delta -10 tetrahydrocannabinol, and other hemp -derived 36 SB455
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cannabinoids; and 1
(3)(A) “Minor” means a person who is under twenty -one (21) years 2
of age. 3
(B) “Minor” does not include a person who is under twenty -4
one (21) years of age if the person presents a military identification card 5
establishing that he or she is a member of the United States Armed Forces. 6
7
20-56-502. Regulation and enforcement. 8
(a) Arkansas Tobacco Control shall regulate and enforce the provisions 9
of this subchapter concerning hemp and hemp products. 10
(b) Arkansas Tobacco Control shall: 11
(1) Issue permits to manufacture, distribute, or sell hemp 12
products; 13
(2) Identify and disclose foreign ownership interests in 14
permitted operations; 15
(3) Conduct inspections of hemp product retailers and 16
manufacturers; 17
(4) Enforce age restrictions on the purchase of hemp products; 18
and 19
(5) Impose fines and penalties for violations of this 20
subchapter. 21
22
20-56-503. Permits. 23
(a) All manufacturers, wholesalers, and retailers of hemp products 24
shall obtain a permit from Arkansas Tobacco Control. 25
(b) The permit fees shall be as follows: 26
(1) Two hundred fifty dollars ($250) annually for wholesalers 27
and retailers of hemp products; and 28
(2) Five hundred dollars ($500) annually for manufacturers of 29
hemp products. 30
(c) A permit holder shall comply with all rules adopted by Arkansas 31
Tobacco Control, including without limitation: 32
(1) Registering the company with Arkansas Tobacco Control; 33
(2) Disclosing ownership of the company; and 34
(3) Adhering to testing, packaging, and labeling requirements 35
under this subchapter. 36 SB455
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1
20-56-504. Testing and safety. 2
(a) Hemp products sold in this state shall be tested by a laboratory 3
that meets the quality management system and technical competence 4
requirements of the ISO/IEC 17025 standard or by a laboratory that is ISO 5
17025 certified, or an equivalent standard or certified by a similar 6
standard. 7
(b) Incoming raw material and products shall be subject to appropriate 8
test protocols, including without limitation testing for heavy metals, 9
mycotoxins, pesticides, and residual solvents to ensure the safety of the 10
finished product. 11
(c) Testing information and results shall be available on the 12
manufacturer's or brand's website or through a quick -response code or similar 13
method. 14
15
20-56-505. Packaging and labeling. 16
(a) A hemp product shall be packaged in a child -resistant container. 17
(b) A label on a hemp product shall clearly state: 18
(1) The ingredient listing in descending order, including all 19
cannabinoids; 20
(2) The website or quick -response code to testing information 21
and results; 22
(3) An indication that the hemp product is not intended for a 23
person under twenty-one (21) years of age; 24
(4) Warnings that reference contraindications, major allergen 25
warnings, and directions for use; 26
(5) The lot number and batch number; and 27
(6) Contact information for the manufacturer. 28
29
20-56-506. Advertising and marketing. 30
(a) Advertising for a hemp product shall not target minors. 31
(b) Packaging for a hemp product shall not use imagery associated with 32
candy or any products that are marketed exclusively to children. 33
34
20-56-507. Manufacturing. 35
All hemp products sold in this state shall be manufactured in 36 SB455
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accordance with good manufacturing practices. 1
2
20-56-508. Age restrictions. 3
(a) It is unlawful for any minor to purchase, possess, or use any hemp 4
product. 5
(b) A retailer shall verify the age of all purchasers of hemp products 6
through a government -issued identification. 7
8
20-56-509. Penalties. 9
(a) A violation of this subchapter may result in Arkansas Tobacco 10
Control taking any of the following actions: 11
(1) Fining up to one thousand dollars ($1,000) per violation; 12
(2) Suspending or revoking a permit issued under this 13
subchapter; or 14
(3) Pursuing criminal charges for repeat offenders or sales to 15
minors. 16
(b) All fees, fines, and penalties collected under this subchapter 17
shall be used to fund enforcement activities for this subchapter by Arkansas 18
Tobacco Control. 19
20
20-56-510. Rules. 21
The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 22
may promulgate rules for the proper enforcement of their powers and duties 23
under this subchapter, including without limitation the regulation of 24
processing, transportation, delivery, sale, and purchase of hemp products in 25
accordance with this subchapter and the power to levy penalties for 26
violations of this subchapter. 27
28
20-56-511. Federal preemption. 29
Upon the certification of the Arkansas Tobacco Control that federal law 30
prohibits the sale or use of hemp products, this subchapter shall prohibit 31
the sale or use of hemp products in the same manner as the federal law. 32
33
SECTION 7. Arkansas Code Title 20, Chapter 56, Subchapter 4, effective 34
if the contingency in Acts 2023, No. 629, § 17, is met, is repealed. 35
Subchapter 4 — Hemp-Derived Products 36 SB455
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1
20-56-401. Purpose. 2
It is the intent of this subchapter to provide regulation of certain 3
hemp-derived products to: 4
(1) Prevent the sale and use of illicit hemp -based products 5
within Arkansas; and 6
(2) Protect and promote the public health and welfare of the 7
residents of this state. 8
9
20-56-402. Definitions. 10
As used in this subchapter: 11
(1) “Annual” or “annually” means the fiscal year from July 1 12
through the next June 30; 13
(2) “Approved laboratory” means a laboratory that is accredited 14
by the National Institute on Drug Abuse, the National Environmental 15
Laboratory Accreditation Conference, the International Organization for 16
Standardization, or a similar accrediting entity as determined by Arkansas 17
Tobacco Control and that has been approved by the Director of Arkansas 18
Tobacco Control specifically for the testing of hemp -derived product; 19
(3) “Consumer” means a member of the public at large; 20
(4) “Days” means calendar days unless otherwise specified; 21
(5) “Finished product” means a product intended for consumer use 22
to be sold at retail; 23
(6) “Hemp” means the plant Cannabis sativa and any part of the 24
plant, including the seeds of the plant, that contains a delta -9 25
tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 26
less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 27
isomers, acids, salts, and salts of isomers, whether growing or not; 28
(7) “Hemp-derived e-liquid product” means a liquid hemp -derived 29
product that contains hemp that is inhaled when using a vapor product, and 30
that may or may not include without limitation propylene glycol, vegetable 31
glycerin, and flavorings; 32
(8)(A) “Hemp-derived product” means a product intended for any 33
form of human consumption, including consumption by vapor inhalation, or a 34
component of a product, that is derived from hemp, including all derivatives, 35
extracts, cannabinoids, isomers, acids, salts, and salts of isomers, and any 36 SB455
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product made from such derivatives, and that contains greater than three -1
tenths of one percent (0.3%) tetrahydrocannabinol. 2
(B) “Hemp-derived product” includes a hemp -derived e-3
liquid product and a vapor product. 4
(C) “Hemp-derived product” does not include: 5
(i) A product intended for animal consumption or 6
use; 7
(ii) A cosmetic as defined by § 20 -56-202; 8
(iii) Any marijuana, medical marijuana, or other 9
cannabis product containing delta -9 tetrahydrocannabinol greater than three -10
tenths of one percent (0.3%) on a dry -weight basis as administered, licensed, 11
and otherwise regulated by the Alcoholic Beverage Control Division, the 12
Medical Marijuana Commission, and the Department of Health under the Arkansas 13
Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 14
(iv) A raw hemp product, including any intact plant, 15
flower, buds, leaves, or stems; 16
(v) A drug in the form for which an application 17
filed in accordance with 21 U.S.C. § 355 is approved by the United States 18
Food and Drug Administration; 19
(vi) A dietary supplement as defined by the Federal 20
Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or 21
(vii) A fabric, textile, cordage, fiber, fuel, paper, 22
construction material, plastic, seed, seed meal, and seed oil; 23
(9)(A) “Manufacturer” means a person that manufactures, 24
fabricates, assembles, or processes a hemp -derived product, including without 25
limitation federally licensed importers and federally licensed distributors 26
that deal in hemp-derived products. 27
(B) “Manufacturer” includes: 28
(i) A sales entity affiliate of the manufacturer or 29
any other entity representing the manufacturer with regard to the sale of 30
hemp-derived products produced by the manufacturer to wholesalers or 31
permitted retailers; and 32
(ii) A person that mixes, compounds, extracts, 33
infuses, blends, processes, repackages, or resizes hemp -derived products 34
including the extraction of cannabinoids from hemp biomass. 35
(C) “Manufacturer” does not include a person who engages 36 SB455
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in the agricultural production of hemp, such as growing, planting, and 1
harvesting of raw hemp biomass regulated by the State Plant Board; 2
(10) “Minor” means a person who is under twenty -one (21) years of 3
age; 4
(11) “Person” means an individual, retailer, wholesaler, 5
manufacturer, firm, association, company, partnership, limited liability 6
company, corporation, joint -stock company, club, agency, syndicate, the State 7
of Arkansas, county, municipal corporation or other political subdivision of 8
the state, receiver, trustee, fiduciary, or trade association; 9
(12) “Place of business” means the physical location: 10
(A) Where orders for hemp -derived products are taken or 11
received or where hemp -derived products are sold; and 12
(B) That is on file with Arkansas Tobacco Control; 13
(13) “Retailer” means a person that purchases hemp -derived 14
products from permitted wholesalers for the purpose of selling the hemp -15
derived products in person and over the counter at retail to consumers; 16
(14)(A) “Sale” or “sell” means a transfer, exchange, or 17
barter in any manner or by any means for any consideration, including 18
distributing or shipping hemp -derived product in connection with a sale. 19
(B) A sale “in” or “into” a state refers to the state in 20
which the destination point of the hemp -derived product is located in the 21
sale without regard to where title was transferred. 22
(C) A sale “from” a state refers to the sale of a hemp -23
derived product that is located in that state to the destination in question 24
without regard to where title was transferred; 25
(15) “Self-service display” means a display: 26
(A) That contains a hemp -derived product, or any component 27
of a hemp-derived product; 28
(B) That is located in an area where customers are 29
permitted; and 30
(C) In which the hemp -derived product, or any component of 31
a hemp-derived product, is readily accessible to a customer without the 32
assistance of a salesperson; 33
(16) “Tetrahydrocannabinol” means a compound that is the natural, 34
primary active cannabinoid substance or its equivalent contained in the plant 35
of the genus cannabis or in the resinous extracts of the plant, including 36 SB455
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derivatives or isomers derived from such cannabinoids; 1
(17) “Vapor product” means hemp -derived product that is an 2
electronic oral device of any size or shape that contains a vapor of hemp or 3
hemp-derived e-liquid product that when used or inhaled simulates smoking, 4
regardless of whether a visible vapor is produced, including without 5
limitation a device that: 6
(A) Is composed of a heating element, battery, electronic 7
circuit, chemical process, mechanical device, or a combination of heating 8
element, battery, electronic circuit, chemical process, or mechanical device; 9
(B) Works in combination with a cartridge, other 10
container, or liquid delivery device containing hemp or hemp -derived e-liquid 11
product and manufactured for use with vapor products; 12
(C) Is manufactured, distributed, marketed, or sold as any 13
type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 14
other produced name or descriptor; and 15
(D) Does not include a product regulated as a drug or 16
device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 17
as it existed on January 1, 2015; 18
(18) “Warehouse” means a place where hemp -derived products are 19
stored for another person and to or from which place the hemp -derived 20
products are shipped or delivered upon order by the owner of the hemp -derived 21
products, to the warehouse; and 22
(19) “Wholesaler” means a person other than a manufacturer or a 23
person owned or operated by a manufacturer that: 24
(A) Does business within the state; 25
(B) Purchases hemp-derived products from any source; 26
(C) Distributes or sells the hemp -derived products to 27
other wholesalers, or retailers; and 28
(D) Does not distribute or sell the hemp -derived products 29
at retail to consumers. 30
31
20-56-403. Construction. 32
(a) A hemp-derived product shall not be delivered, sold, bought, or 33
used in this state except in conformity with all applicable laws and 34
regulations, including this subchapter and any rules promulgated under this 35
subchapter. 36 SB455
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(b) A person shall not sell a hemp -derived product without being 1
permitted by Arkansas Tobacco Control. 2
(c) A product intended for human consumption or inhalation that is 3
derived from hemp and contains tetrahydrocannabinol shall not be permitted or 4
allowed under the laws of this state, other than hemp -derived products if 5
otherwise legal under state law. 6
(d)(1) A hemp-derived product shall not be combined with or contain 7
any of the following: 8
(A) Any liquid, hydrocolloid, animal -based substance, 9
thickener, sweetener, flavoring, synthetic product, propylene glycol, 10
vegetable glycerin, or other non -hemp-derived substance; 11
(B) Nicotine or tobacco; or 12
(C) Any amount of tetrahydrocannabinol as to create a 13
danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 14
other risk to the public. 15
(2) Medical devices, prescription drugs, or drugs otherwise 16
approved by the United States Food and Drug Administration shall not be 17
considered hemp-derived products. 18
(e) The business of handling, receiving, possessing, storing, 19
distributing, taking orders for, soliciting orders of, selling, offering for 20
sale, and dealing in, through sale, barter, or exchange, hemp -derived 21
products is declared to be a privilege under the Arkansas Constitution and 22
laws of the State of Arkansas. 23
24
20-56-404. Permits. 25
(a)(1) Each person listed in this section, before commencing business, 26
or if already in business, before continuing business, shall pay an annual 27
privilege fee and secure a permit from the Director of Arkansas Tobacco 28
Control. 29
(2) A person purchasing an existing permitted retail location 30
may, with the permission of the seller and Arkansas Tobacco Control, operate 31
under the selling owner's permit for no more than thirty (30) days from the 32
date of the sale. 33
(b)(1) In addition to securing a permit under subsection (a) of this 34
section, a manufacturer whose products are sold in this state shall register 35
with the Secretary of the Department of Finance and Administration. 36 SB455
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(2) A wholesaler of hemp -derived products shall secure the 1
proper wholesale permit. 2
(3) Every retailer of hemp -derived products that operates a 3
place of business shall secure the proper retail permit. 4
(c)(1) Permits shall be issued as follows: 5
(A) A permit for a sole proprietorship is issued in the 6
owner's name and in the fictitious business name, if any; 7
(B)(i) A permit for a partnership or limited liability 8
company is issued in the name of: 9
(a) The managing partner or managing member; 10
and 11
(b) The partnership or limited liability 12
company. 13
(ii) If the managing partner or managing member of a 14
limited liability company is a partnership, limited liability company, or 15
corporation, then the permit shall be issued in the name of: 16
(a) The president or chief executive officer; 17
and 18
(b) The partnership or limited liability 19
company; and 20
(C) A permit for a publicly traded or nonpublicly traded 21
corporation is issued in the name of the president or chief executive officer 22
of the corporation and in the name of the corporation. 23
(2) It is a violation for a permitted entity not to provide 24
written notification to the director within thirty (30) days of a change in 25
the following: 26
(A) The managing partner, limited liability company 27
managing member, or president or chief executive officer of a corporation, 28
partnership, or limited liability company; or 29
(B) The stockholders effecting twenty -five percent (25%) 30
or more of the total voting shares of a nonpublicly traded corporation. 31
(d)(1) When an entity transfers a business permitted under this 32
subchapter, the entity to which the business is transferred: 33
(A) Shall apply for a new permit under this subchapter; 34
(B) May be issued a new permit under this subchapter; and 35
(C) May operate under the selling entity's permit for no 36 SB455
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more than thirty (30) days from the date of the sale. 1
(2) When a partnership or limited liability company permitted 2
under this subchapter changes, removes, or replaces the managing partner, 3
managing member, president, or chief executive officer: 4
(A) The existing permit issued under this subchapter is 5
void; and 6
(B) The partnership or limited liability company: 7
(i) Shall apply for a new permit under this 8
subchapter; 9
(ii) May be issued a new permit under this 10
subchapter; and 11
(iii) May operate under the voided permit for no more 12
than thirty (30) days from the date of the change, removal, or replacement of 13
the permit. 14
(3) When a nonpublicly traded corporation permitted under this 15
subchapter changes, removes, or replaces the president or chief executive 16
officer named on the permit or changes, removes, or replaces a stockholder 17
who owns fifty percent (50%) or more of the total voting shares of the 18
nonpublicly traded corporation's stock: 19
(A) The permit issued under this subchapter is void; and 20
(B) The nonpublicly traded corporation: 21
(i) Shall apply for a new permit under this 22
subchapter; 23
(ii) May be issued a new permit under this 24
subchapter; and 25
(iii) May operate under the voided permit for no more 26
than thirty (30) days from the date of the change, removal, or replacement of 27
the permit. 28
(4) When a publicly traded corporation permitted under this 29
subchapter changes, removes, or replaces the president or chief executive 30
officer named on the permit or changes, removes, or replaces a stockholder 31
who owns fifty percent (50%) or more of the total voting shares of the 32
publicly traded corporation's stock: 33
(A) The permit issued under this subchapter is void; and 34
(B) The publicly traded corporation: 35
(i) Shall apply for a new permit under this 36 SB455
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subchapter; 1
(ii) May be issued a new permit under this 2
subchapter; and 3
(iii) May operate under the voided permit for no more 4
than thirty (30) days from the date of the change, removal, or replacement of 5
the permit. 6
(e) An entity may apply for and be issued a permit under this 7
subchapter in advance of the effective date of the permit to facilitate 8
continuity of business operations. 9
10
20-56-405. Permits — Location — Background check required. 11
(a) A retail, wholesale, or manufacturer permit shall not be issued to 12
a residential address, a mobile structure or vehicle, or for an address not 13
zoned appropriately for the business seeking to secure the permit. 14
(b) A permit shall not be issued to: 15
(1) A person who has pleaded guilty or nolo contendere to or 16
been found guilty of a felony; or 17
(2) A business owned or operated, in whole or in part, by a 18
person who has pleaded guilty or nolo contendere to or been found guilty of a 19
felony. 20
(c) Arkansas Tobacco Control shall conduct a criminal background check 21
on each permit applicant and application, utilizing its Arkansas Crime 22
Information Center access as a law enforcement agency, in accordance with §§ 23
12-12-1008 — 12-12-1011. 24
25
20-56-406. Permits — Annual privilege fees. 26
(a) The annual privilege fee for each permit authorized by this 27
subchapter is established as follows: 28
(1) Wholesale Hemp-derived Products Permit.............$5,000 29
(2) Retail Hemp-derived Products Permit.............$5,000 30
(3) Manufacturer Hemp -derived Products Permit.............$5,000 31
(b)(1) All permits issued under this subchapter shall expire on June 32
30 following the effective date of issuance. 33
(2)(A) Upon the failure to timely renew a permit issued under 34
this subchapter, a late fee of two (2) times the amount of the appropriate 35
permit fee shall be owed in addition to the annual privilege fee for the 36 SB455
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permit. 1
(B) An expired permit that is not renewed before September 2
1 following the expiration of the permit shall not be renewed, and the holder 3
of the expired permit shall submit an application for a new permit. 4
(3) A permit shall not be issued to the applicant until the late 5
fee and the permit fee have been paid. 6
(c) A permit issued under this subchapter shall not be renewed for a 7
permit holder who is delinquent more than ninety (90) days on a privilege 8
fee, tax relating to the sale or dispensing of hemp -derived products, or any 9
other state and local tax due to the Secretary of the Department of Finance 10
and Administration. 11
(d) A person who is delinquent more than ninety (90) days on a state 12
or local tax may not renew or obtain a permit issued under this subchapter 13
except upon certification that the permit holder has entered into a repayment 14
agreement with the Department of Finance and Administration and is current on 15
the payments. 16
(e) A permit holder who has unpaid fees, civil penalties, or an 17
unserved permit suspension may not transfer, sell, or give hemp -derived 18
product inventory of the business associated with the permit to a third party 19
until all fees and civil penalties are paid in full and all suspensions are 20
completed successfully, nor shall any third party be issued a new permit for 21
the business location. 22
(f) Each manufacturer, wholesaler, and retailer shall retain copies of 23
all invoices for the purchase or sale of any hemp -derived products for a 24
period of at least ten (10) years subject to examination by the Secretary of 25
the Department of Finance and Administration and the Director of Arkansas 26
Tobacco Control or their authorized agents upon demand at any time during 27
regular business hours. 28
(g) A retailer shall: 29
(1) Maintain copies of at least the last three hundred sixty -30
five (365) days of hemp -derived product invoices, which the retailer shall 31
provide immediately upon demand; 32
(2)(A) Make the invoices that are older than three hundred 33
sixty-five (365) days available upon demand at any time during normal 34
business hours in the retail store. 35
(B) Except as provided in subdivision (g)(2)(C) of this 36 SB455
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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 ten (10) years of hemp -derived product invoices 25
that are available upon demand during normal 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 SB455
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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
20-56-407. Permits — Not transferable — Duplicates. 8
(a) A permit under this subchapter is not: 9
(1) Transferable to a subsequent owner or operator; or 10
(2) Transferable to a different physical location unless the 11
permit holder obtains permission from the Director of Arkansas Tobacco 12
Control. 13
(b) A person purchasing an existing permitted retail location may 14
operate under the selling owner's permit for no more than thirty (30) days 15
from the date of the sale. 16
(c) When a permit is lost by a permit holder, a duplicate permit may 17
be issued upon application and for a fee of five dollars ($5.00) when 18
sufficient proof has been given to the Director of Arkansas Tobacco Control. 19
20
20-56-408. Permits — Suspension or revocation. 21
(a) All permits issued under this subchapter shall be suspended or 22
revoked by the Director of Arkansas Tobacco Control for any violation of this 23
subchapter or the rules pertaining to this subchapter, subject to a hearing 24
before the Arkansas Tobacco Control Board at the next regularly scheduled 25
board meeting. 26
(b) The director may revoke all permits to deal in hemp -derived 27
products associated with any person who is convicted of or pleads guilty or 28
nolo contendere to criminally violating this subchapter, subject to a hearing 29
before the board at the next regularly scheduled board meeting. 30
31
20-56-409. Advertising prohibitions and packaging requirements. 32
(a) A hemp-derived product distributed or offered for sale in this 33
state shall include the following information on the product label or product 34
packaging: 35
(1) The name of the hemp -derived product manufacturer, whether 36 SB455
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in-state or out-of-state, and distributor, whether in -state or out-of-state; 1
(2) Product labeling clearly showing that the product contains 2
material derived from hemp and not marijuana or medical marijuana; and 3
(3) Any other marking, words, statement, or symbol as required 4
by Arkansas Tobacco Control through rules. 5
(b) A person shall not advertise, market, or offer for sale in this 6
state any hemp-derived product by using, in the labeling or design of the 7
product, its packaging, or in its advertising or marketing materials, trade 8
dress, trademarks, branding, or other related imagery that: 9
(1) Imitates or replicates those of food brands or other related 10
products that are marketed to or are commonly associated with children or 11
minors, including without limitation breakfast cereal, cookies, juice drinks, 12
soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 13
(2) Depicts or signifies characters or symbols that are known to 14
a reasonable person to appeal primarily to or are commonly associated with 15
children or minors, including without limitation superheroes, cartoons or 16
cartoon characters, including anime characters, comic book characters, video 17
game characters, television show characters, movie characters, mythical 18
creatures, unicorns, or that otherwise incorporates related imagery or 19
scenery; or 20
(3) Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 21
or “cupcakes” or any variant of these terms, or any other term referencing a 22
type or brand of candy, cakes, pastries, or pies, including types or brands 23
of candy, cakes, pastries, or pies that do not include the words “candy”, 24
“candies”, “cake”, “cakes”, “pies”, or “cupcakes” in their names, labels, or 25
slogans. 26
27
20-56-410. Testing. 28
(a) All hemp-derived products sold in this state shall be tested by an 29
approved laboratory. 30
(b) An approved laboratory shall be an independent third -party 31
laboratory. 32
(c) A hemp-derived product sold in this state shall be tested for the 33
following and marked as to the hemp -derived product chemical makeup before 34
being sold to consumers: 35
(1) Cannabinoid profile; 36 SB455
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(2) Solvents; 1
(3) Pesticides; 2
(4) Microbials; 3
(5) Heavy metals; and 4
(6) Any non-hemp-based substance. 5
(d) A hemp-derived product shall not be distributed or sold in this 6
state without a certificate of analysis from an approved laboratory that 7
confirms: 8
(1) The hemp-derived product was tested by an approved 9
laboratory; 10
(2) A tested representative sample of the hemp -derived product 11
contained a total delta -9 tetrahydrocannabinol concentration that did not 12
exceed three-tenths of one percent (0.3%) under this subchapter; and 13
(3) A detailed analysis and list of chemical makeup of the 14
tested hemp-derived product under subsection (c) of this section. 15
(e) Arkansas Tobacco Control may periodically sample, analyze, and 16
test any hemp-derived product located in this state. 17
(f) The Director of Arkansas Tobacco Control shall: 18
(1) Investigate and issue subpoenas to any permittee or approved 19
laboratory used by a permittee that the director has reasonable suspicion of 20
intentionally producing falsified test results on hemp -derived products; and 21
(2) Promulgate rules for the enforcement of this section and set 22
penalties for any violation of the rules. 23
24
20-56-411. Providing minors with hemp -derived products — Purchase, 25
use, or possession prohibited. 26
(a)(1) It is unlawful for any person to give, barter, or sell to a 27
minor a hemp-derived product. 28
(2) Except as provided in subdivision (a)(3) of this section, a 29
person who pleads guilty or nolo contendere to or is found guilty of 30
violating subdivision (a)(1) of this section is guilty of a Class A 31
misdemeanor. 32
(3) An employee or owner of a retail location permitted under 33
this subchapter who violates subdivision (a)(1) of this section while inside 34
the retail location upon conviction is subject to a fine not to exceed one 35
hundred dollars ($100) per violation. 36 SB455
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(b)(1) It is unlawful for a minor to: 1
(A) Use or possess or to purchase or attempt to purchase a 2
hemp-derived product; or 3
(B) For the purpose of obtaining or attempting to obtain a 4
hemp-derived product, falsely represent himself or herself not to be a minor 5
by displaying proof of age that is false, fraudulent, or not actually proof 6
of the minor's age. 7
(2) Any hemp-derived product found in the possession of a minor 8
may be confiscated and destroyed by a law enforcement officer. 9
(c)(1) It is not an offense under subsection (b) of this section if: 10
(A) The minor was acting at the direction of an authorized 11
agent of Arkansas Tobacco Control to enforce or ensure compliance with laws 12
relating to the prohibition of the sale of hemp -derived product to minors; 13
(B) The minor was acting at the direction of an authorized 14
agent of the Division of Aging, Adult, and Behavioral Health Services of the 15
Department of Human Services to compile statistical data relating to the sale 16
of hemp-derived products to minors; 17
(C) The minor was acting at the request of a permit holder 18
to assist the permit holder by performing a check on the permit holder's own 19
retail business to see if the permit holder's employees would sell hemp -20
derived products to the minor; or 21
(D) The minor was acting as an agent of a retail permit 22
holder within the scope of employment. 23
(2) A minor performing activities under subdivision (c)(1) of 24
this section shall: 25
(A) Display the appearance of a minor; 26
(B) Have the written consent of the minor's parent or 27
guardian to perform the activity on file with the agency utilizing the minor; 28
and 29
(C)(i) Present a true and correct identification if asked. 30
(ii) Any failure on the part of a minor to provide 31
true and correct identification upon request is a defense to any action under 32
this section or a civil action under § 26 -57-256. 33
(d) Any person who sells hemp -derived products has the right to deny 34
the sale of any hemp -derived product to any person. 35
(e) It is unlawful for any person who has been issued a permit or a 36 SB455
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license under this subchapter to fail to display in a conspicuous place a 1
sign indicating that the sale of hemp -derived products to or purchase or 2
possession of hemp-derived products by a minor is prohibited by law. 3
(f) It is unlawful for any manufacturer whose hemp -derived product is 4
distributed in this state and any person who has been issued a permit or 5
license under this subchapter to distribute a free sample of any hemp -derived 6
product, or any component of a hemp -derived product or coupon that entitles 7
the holder of the coupon to any free sample of any hemp -derived product, or 8
any component of a hemp -derived product: 9
(1) In or on any public street or sidewalk within five hundred 10
feet (500′) of any playground, public school, or other facility when the 11
playground, public school, or other facility is being used primarily by 12
minors for recreational, educational, or other purposes; or 13
(2) To any minor. 14
(g) It is unlawful for any person that has been issued a permit or 15
license under this subchapter to: 16
(1) Sell or distribute a hemp -derived product through a self -17
service display, a vending machine, or an order executed solely over the 18
internet or similar means; or 19
(2) Advertise or promote hemp -derived products in a manner that 20
is intended to appeal to children. 21
(h) Any retail permit holder or license holder who violates any 22
provision in this section is deemed guilty of a violation and subject to 23
penalties under § 26 -57-256. 24
(i)(1) A notice of an alleged violation of this section shall be given 25
to the holder of a retail permit or license or an agent of the holder within 26
ten (10) days of the alleged violation. 27
(2)(A) The notice under subdivision (i)(1) of this section shall 28
contain the date and time of the alleged violation. 29
(B)(i) The notice under subdivision (i)(1) of this section 30
shall also include either the name of the person making the alleged sale or 31
information reasonably necessary to determine the location in the store that 32
allegedly made the sale. 33
(ii) When appropriate, information under subdivision 34
(i)(2)(B)(i) of this section should include, but not be limited to, the: 35
(a) Cash register number of the sale in the 36 SB455
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store; 1
(b) Physical location of the sale in the 2
store; and 3
(c) If possible, the lane or aisle number of 4
the sale in the store. 5
(j) Notwithstanding the provisions of subsection (h) of this section, 6
the court shall consider the following factors when reviewing a possible 7
violation: 8
(1) The business has adopted and enforced a written policy 9
against selling hemp -derived products to minors; 10
(2) The business has informed its employees of the applicable 11
laws regarding the sale of hemp -derived products to minors; 12
(3) The business has required employees to verify the age of a 13
customer attempting to purchase a hemp -derived product by way of photographic 14
identification; 15
(4) The business has established and imposed disciplinary 16
sanctions for noncompliance; and 17
(5) That the appearance of the purchaser of the hemp -derived 18
product was such that an ordinary prudent person would believe him or her to 19
be of legal age to make the purchase. 20
(k) A person convicted of violating any provision of this section 21
whose permit or license to distribute or sell a hemp -derived product is 22
suspended or revoked upon conviction shall surrender to the court any permit 23
or license to distribute or sell a hemp -derived product, and the court shall 24
transmit the permit or license to distribute or sell a hemp -derived product 25
to the Director of Arkansas Tobacco Control: 26
(1) To suspend or revoke the person's permit or license to 27
distribute or sell a hemp -derived product and to not renew the permit or 28
license; and 29
(2) Not to issue any new permit or license to that person for 30
the period of time determined by the court in accordance with this section. 31
32
20-56-412. Enforcement — Penalties. 33
(a) It is the duty of all state, county, and city officers to assist 34
Arkansas Tobacco Control in enforcing this subchapter. 35
(b) A person within the jurisdiction of this state who is not 36 SB455
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permitted to sell hemp -derived products to retailers or consumers and who 1
sells, takes orders from, delivers, or causes to be delivered immediately or 2
in the future any hemp -derived products to retailers or consumers in the 3
State of Arkansas is guilty of a Class A misdemeanor. 4
(c) A person engaged in buying or selling hemp -derived products in 5
this state without first obtaining the proper permit upon conviction is 6
guilty of a Class A misdemeanor. 7
(d) This subchapter does not prohibit in any form the continuous 8
transportation through Arkansas of the plant Cannabis sativa L., and any part 9
of that plant, including the seeds thereof and all derivatives, extracts, 10
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 11
not, with a total delta -9 tetrahydrocannabinol concentration of not more than 12
three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 13
hemp producer in another state to a licensed hemp handler in another state. 14
15
20-56-413. Rules. 16
The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 17
may promulgate rules for the proper enforcement of their powers and duties 18
under this subchapter, including without limitation the regulation of 19
processing, transportation, delivery, sale, and purchase of hemp -derived 20
products in accordance with this subchapter and the power to levy penalties 21
for violations of this subchapter. 22
23
SECTION 8. Arkansas Code § 26 -57-247(b), effective until the 24
contingency in Acts 2023, No. 629, § 17, is met, concerning those unstamped 25
and untaxed items that may be seized by the Director of Arkansas Tobacco 26
Control, is amended to add an additional subdivision read as follows: 27
(5) Hemp products are possessed, sold, or offered for sale in 28
violation of § 20-56-501 et seq. 29
30
SECTION 9. Arkansas Code § 26 -57-247, effective if the contingency in 31
Acts 2023, No. 629, § 17, is met, is repealed. 32
26-57-247. Seizure, forfeiture, and disposition of tobacco products 33
and other property. 34
(a) Cigarettes to which stamps have not been affixed as provided by 35
law are subject to seizure and shall be held as evidence for prosecution. 36 SB455
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(b) The Director of Arkansas Tobacco Control may seize and hold for 1
disposition of the courts or the Arkansas Tobacco Control Board all tobacco 2
products, vapor products, alternative nicotine products, e -liquid products, 3
or hemp-derived products found in the possession of a person dealing in, or a 4
consumer of, tobacco products, vapor products, alternative nicotine products, 5
e-liquid products, or hemp -derived products if: 6
(1) Prima facie evidence exists that the full amount of excise 7
tax due on the tobacco products has not been paid to the Secretary of the 8
Department of Finance and Administration; 9
(2) Tobacco products, vapor products, alternative nicotine 10
products, or e-liquid products are in the possession of a wholesaler who does 11
not possess a current Arkansas wholesale permit; 12
(3) A retail establishment does not possess a current Arkansas 13
retail permit; 14
(4) The tobacco products, vapor products, alternative nicotine 15
products, or e-liquid products have been offered for sale to the public at 16
another location without a current Arkansas retail permit; or 17
(5) Hemp-derived products are possessed, sold, or offered for 18
sale in violation of § 20 -56-401 et seq. 19
(c) Property, including money, used to facilitate a violation of this 20
subchapter or the Unfair Cigarette Sales Act, § 4 -75-701 et seq., may be 21
seized and forfeited to the state. 22
(d)(1) A prosecuting attorney may institute a civil action against a 23
person who is convicted of a criminal violation under this subchapter or the 24
Unfair Cigarette Sales Act, § 4 -75-701 et seq., to obtain a judgment for: 25
(A) Damages in an amount equal to the value of the 26
property, funds, or a monetary instrument involved in the violation; 27
(B) The proceeds acquired by a person involved in the 28
enterprise or by reason of conduct in furtherance of the violation; and 29
(C) Costs incurred by Arkansas Tobacco Control in the 30
investigation, prosecution, and adjudication of criminal, civil, and 31
administrative proceedings. 32
(2) The standard of proof in an action brought under subdivision 33
(d)(1) of this section is preponderance of the evidence. 34
(e) The following are subject to forfeiture under this section upon 35
order by a circuit court: 36 SB455
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(1) Tobacco products, vapor products, alternative nicotine 1
products, or e-liquid products distributed, dispensed, or acquired in 2
violation of this subchapter; 3
(2) Raw materials, products, or equipment used or intended for 4
use in manufacturing, compounding, processing, delivering, importing, or 5
exporting a tobacco product, vapor product, alternative nicotine product, or 6
e-liquid product in violation of this subchapter; 7
(3) Property that is used or intended for use as a container for 8
property described in subdivision (e)(1) or subdivision (e)(2) of this 9
section; 10
(4)(A) Except as provided in subdivision (e)(4)(B) of this 11
section, a conveyance, including an aircraft, vehicle, or vessel, that is 12
used or intended to be used to transport or in any manner to facilitate the 13
transportation for the purpose of sale or receipt of property described in 14
subdivision (e)(1) or subdivision (e)(2) of this section. 15
(B)(i) A conveyance used by a person as a common carrier 16
in the transaction of business as a common carrier is not subject to 17
forfeiture under this section unless it appears that the owner or other 18
person in charge of the conveyance is a consenting party or privy to a 19
violation of this subchapter. 20
(ii) A conveyance is not subject to forfeiture under 21
this section by reason of an act or omission established by the owner of the 22
conveyance to have been committed or omitted without his or her knowledge or 23
consent. 24
(C) Upon a showing described in subdivision (e)(4)(B)(i) 25
of this section by the owner or interest holder of a conveyance, the 26
conveyance may nevertheless be forfeited if the prosecuting attorney 27
establishes that the owner or interest holder either knew or should 28
reasonably have known that the conveyance would be used to transport or in 29
any manner to facilitate the transportation for the purpose of sale or 30
receipt of property described in subdivision (e)(1) or subdivision (e)(2) of 31
this section. 32
(D) A conveyance encumbered by a bona fide security 33
interest is subject to the interest of the secured party if the secured party 34
neither had knowledge of nor consented to an act or omission in violation of 35
this subchapter; 36 SB455
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(5) A book, record, or research product or material, including a 1
formula, microfilm, tape, or data that is used or intended for use in 2
violation of this subchapter; 3
(6)(A) Except as provided in subdivision (e)(6)(B) of this 4
section, a thing of value, including: 5
(i) Firearms purchased from the proceeds of the sale 6
of untaxed tobacco products, vapor products, alternative nicotine products, 7
or e-liquid products in violation of this subchapter or used in furtherance 8
of a criminal offense as described in § 26 -57-245; 9
(ii) Proceeds or profits traceable to an exchange 10
described in subdivision (e)(6)(A)(i) of this section; and 11
(iii) Money, negotiable instruments, or security used 12
or intended to be used to facilitate a violation of this subchapter. 13
(B) Property shall not be forfeited under subdivision 14
(e)(6)(A) of this section to the extent of the interest of an owner by reason 15
of an act or omission established by him or her by a preponderance of the 16
evidence to have been committed or omitted without his or her knowledge or 17
consent; 18
(7)(A) Money, coins, or currency found in close proximity to a 19
forfeitable tobacco product, vapor product, alternative nicotine product, or 20
e-liquid product or a forfeitable record of an importation of a tobacco 21
product, vapor product, alternative nicotine product, or e -liquid product is 22
presumed to be forfeitable under this section. 23
(B) The burden of proof is upon a claimant of the money, 24
coins, or currency to rebut the presumption in subdivision (e)(7)(A) of this 25
section by a preponderance of the evidence; and 26
(8)(A) Except as provided in subdivision (e)(8)(B) of this 27
section, real property if it substantially assisted in, facilitated in any 28
manner, or was used or intended for use in the commission of any act 29
prohibited by this subchapter. 30
(B)(i) Real property is not subject to forfeiture under 31
this section by reason of an act or omission established by the owner of the 32
real property by a preponderance of the evidence to have been committed or 33
omitted without his or her knowledge or consent. 34
(ii) A forfeiture of real property encumbered by a 35
mortgage or other lien is subject to the interest of the secured party if the 36 SB455
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secured party neither had knowledge of nor consented to an act or omission in 1
violation of this subchapter. 2
(iii) If the circuit court finds by a preponderance 3
of the evidence that grounds for a forfeiture exist under this section, the 4
court shall enter an order requiring the forfeiture of the real property. 5
(C) Upon an order of forfeiture of real property, the 6
order shall be filed on the day issued and shall have prospective effect. 7
(D) A forfeiture of real property does not affect the 8
title of a bona fide purchaser who purchased the real property before the 9
issuance of the order, and the order has no force or effect on the title of 10
the bona fide purchaser. 11
(E) A lis pendens filed in connection with an action 12
pending under this section that may result in the forfeiture of real property 13
is effective only from the time filed and has no retroactive effect. 14
(f) A tobacco product, vapor product, alternative nicotine product, or 15
e-liquid product that is possessed, transferred, sold, or offered for sale in 16
violation of this subchapter may be seized and immediately forfeited to the 17
state. 18
(g)(1) Property subject to forfeiture under this subchapter may be 19
seized by a law enforcement agent upon process issued by a circuit court 20
having jurisdiction over the property on petition filed by the prosecuting 21
attorney of the judicial circuit. 22
(2) Seizure without process may be made if: 23
(A) The seizure is incident to an arrest or a search under 24
a search warrant or an inspection under the regulatory authority of Arkansas 25
Tobacco Control; 26
(B) The property subject to seizure has been the subject 27
of a prior judgment in favor of the state in a criminal injunction or 28
forfeiture proceeding based upon this subchapter; 29
(C) The seizing law enforcement agency has probable cause 30
to believe that the property is directly or indirectly dangerous to health or 31
safety; or 32
(D) The seizing law enforcement agency has probable cause 33
to believe that the property was used or is intended to be used in violation 34
of this subchapter. 35
(h)(1) A state or local law enforcement agency shall not transfer 36 SB455
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property seized by the state or local agency under this section to a federal 1
entity for forfeiture under federal law unless the circuit court having 2
jurisdiction over the property enters an order, upon petition by the 3
prosecuting attorney, authorizing the property to be transferred to the 4
federal entity. 5
(2) The transfer shall not be approved unless it reasonably 6
appears that the activity giving rise to the investigation or seizure 7
involves more than one (1) state or the nature of the investigation or 8
seizure would be better pursued under federal law. 9
(i)(1) Property seized for forfeiture under this section is not 10
subject to replevin but is deemed to be in the custody of the seizing law 11
enforcement agency subject only to an order or decree of the circuit court 12
having jurisdiction over the property seized. 13
(2) Subject to a need to retain the property as evidence, when 14
property is seized under this subchapter, the seizing law enforcement agency 15
may: 16
(A) Remove the property to a place designated by the 17
circuit court; 18
(B) Place the property under constructive seizure, posting 19
notice of pending forfeiture on it by: 20
(i) Giving notice of pending forfeiture to its 21
owners and interest holders; or 22
(ii) Filing notice of pending forfeiture in an 23
appropriate public record relating to the property; 24
(C) Remove the property to a storage area for safekeeping 25
or, if the property is a negotiable instrument or money or is not needed for 26
evidentiary purposes, deposit it into an interest -bearing account; or 27
(D) Provide for another agency or custodian, including an 28
owner, secured party, mortgagee, or lienholder, to take custody of the 29
property and service, maintain, and operate it as reasonably necessary to 30
maintain its value in an appropriate location within the jurisdiction of the 31
court. 32
(3)(A) In case of transfer of property, a transfer receipt shall 33
be prepared by the transferring agency. 34
(B) The transfer receipt shall: 35
(i) List a detailed and complete description of the 36 SB455
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property being transferred; 1
(ii) State to whom the property is being transferred 2
and the source or authorization for the transfer; and 3
(iii) Be signed by both the transferor and the 4
transferee. 5
(C) Both transferor and transferee shall maintain a copy 6
of the transfer receipt. 7
(4) A person who acts as custodian of property under this 8
section is not liable to any person on account of an act done in a reasonable 9
manner in compliance with an order under this subchapter. 10
(j)(1) Property seized by a state or local law enforcement officer 11
under this section who is detached to, deputized or commissioned by, or 12
working in conjunction with a federal agency remains subject to this section. 13
(2)(A) If property is seized for forfeiture by a law enforcement 14
agency under this section, the seizing law enforcement officer shall prepare 15
and sign a confiscation report. 16
(B)(i) The party from whom the property is seized shall 17
also sign the confiscation report if present and shall immediately receive a 18
copy of the confiscation report. 19
(ii) If the party refuses to sign the confiscation 20
report, the confiscation report shall be signed by one (1) additional law 21
enforcement officer, stating that the party refused to sign the confiscation 22
report. 23
(C) The original confiscation report shall be: 24
(i) Filed with the seizing law enforcement agency 25
within forty-eight (48) hours after the seizure; and 26
(ii) Maintained in a separate file. 27
(D) One (1) copy of the confiscation report shall be 28
retained by the seizing law enforcement officer. 29
(3) The confiscation report shall contain the following 30
information: 31
(A) A detailed description of the property seized 32
including serial or model numbers and odometer or hour reading of vehicles or 33
equipment; 34
(B) The date of seizure; 35
(C) The name and address of the party from whom the 36 SB455
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property was seized; 1
(D) The reason for the seizure; 2
(E) The location where the property will be held; 3
(F) The seizing law enforcement officer's name; and 4
(G) A signed statement by the seizing law enforcement 5
officer stating that the confiscation report is true and complete. 6
(4) Within three (3) business days after receiving the 7
confiscation report, the seizing law enforcement agency shall forward a copy 8
of the confiscation report to the prosecuting attorney for the district where 9
the property was seized and to the director. 10
(5)(A) Arkansas Legislative Audit shall notify the director and 11
a circuit court in the county of a law enforcement agency, prosecuting 12
attorney, or other public entity that the law enforcement agency, prosecuting 13
attorney, or public entity is ineligible to receive forfeited funds, 14
forfeited property, or grants from the council, if Arkansas Legislative Audit 15
determines by its own investigation or upon written notice from the director 16
that: 17
(i) The law enforcement agency failed to complete 18
and file the confiscation reports as required by this section; 19
(ii) The law enforcement agency, prosecuting 20
attorney, or public entity has not properly accounted for the seized 21
property; or 22
(iii) The prosecuting attorney has failed to comply 23
with the notification requirement set forth in subdivision (m)(2) of this 24
section. 25
(B) After the notice, the circuit court shall not issue an 26
order distributing seized property to that law enforcement agency, 27
prosecuting attorney, or public entity, nor shall a grant be awarded by the 28
council to that law enforcement agency, prosecuting attorney, or public 29
entity until: 30
(i) The appropriate officials of the law enforcement 31
agency, prosecuting attorney, or public entity have appeared before the 32
Legislative Joint Auditing Committee; and 33
(ii) The Legislative Joint Auditing Committee has 34
adopted a motion authorizing subsequent transfers of forfeited property to 35
the law enforcement agency, prosecuting attorney, or public entity. 36 SB455
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(C)(i) If a law enforcement agency, prosecuting attorney, 1
or other public entity is ineligible to receive forfeited property, the 2
circuit court shall order money that would have been distributed to that law 3
enforcement agency, prosecuting attorney, or public entity to be transmitted 4
to the Treasurer of State for deposit into the Special State Assets 5
Forfeiture Fund. 6
(ii) If the property is not cash, the circuit court 7
shall order the property converted to cash under this section and the 8
proceeds transmitted to the Treasurer of State for deposit into the Special 9
State Assets Forfeiture Fund. 10
(D) Moneys deposited into the Special State Assets 11
Forfeiture Fund are not subject to recovery or retrieval by an ineligible law 12
enforcement agency, prosecuting attorney, or other public entity. 13
(6) The director shall establish by rule a standardized 14
confiscation report form to be used by all law enforcement agencies, with 15
specific instructions and guidelines concerning the nature and dollar value 16
of all property, including firearms, to be included in the confiscation 17
report and forwarded to the office of the local prosecuting attorney and the 18
director under this subsection. 19
(k)(1)(A) The prosecuting attorney shall initiate forfeiture 20
proceedings by filing a complaint with the circuit clerk of the county where 21
the property was seized and by serving the complaint on all known owners and 22
interest holders of the seized property in accordance with the Arkansas Rules 23
of Civil Procedure. 24
(B) The complaint may be based on in rem or in personam 25
jurisdiction but shall not be filed to avoid the distribution requirements 26
set forth in subdivision (l)(1) of this section. 27
(C) The prosecuting attorney shall mail a copy of the 28
complaint to the director within five (5) calendar days after filing the 29
complaint. 30
(2)(A) The complaint shall include a copy of the confiscation 31
report and shall be filed within sixty (60) days after receiving a copy of 32
the confiscation report from the seizing law enforcement agency. 33
(B) In a case involving real property, the complaint shall 34
be filed within sixty (60) days of the defendant's conviction on the charge 35
giving rise to the forfeiture. 36 SB455
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(3)(A) The prosecuting attorney may file the complaint after the 1
expiration of the time only if the complaint is accompanied by a statement of 2
good cause for the late filing. 3
(B) However, the complaint shall not be filed more than 4
one hundred twenty (120) days after either the date of the seizure or, in a 5
case involving real property, the date of the defendant's conviction. 6
(C)(i) If the circuit court determines that good cause has 7
not been established, the circuit court shall order that the seized property 8
be returned to the owner or interest holder. 9
(ii) In addition, items seized but not subject to 10
forfeiture under this section or subject to disposition under law or the 11
Arkansas Rules of Criminal Procedure may be ordered returned to the owner or 12
interest holder. 13
(iii) If the owner or interest holder cannot be 14
determined, the court may order disposition of the property. 15
(4) Within the time set forth in the Arkansas Rules of Civil 16
Procedure, the owner or interest holder of the seized property shall file 17
with the circuit clerk a verified answer to the complaint that shall include: 18
(A) A statement describing the seized property and the 19
owner's interest or interest holder's interest in the seized property with 20
supporting documents to establish the owner's interest or interest holder's 21
interest; 22
(B) A certification by the owner or interest holder 23
stating that he or she has read the document and that it has not been filed 24
for an improper purpose; 25
(C) A statement setting forth any defense to forfeiture; 26
and 27
(D) The address at which the owner or interest holder will 28
accept mail. 29
(5)(A) If the owner or interest holder fails to file an answer, 30
the prosecuting attorney may move for default judgment under the Arkansas 31
Rules of Civil Procedure. 32
(B)(i) If a timely answer has been filed, the prosecuting 33
attorney has the burden of proving by a preponderance of the evidence that 34
the seized property should be forfeited. 35
(ii) After the prosecuting attorney has presented 36 SB455
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proof, an owner or interest holder of the property seized is allowed to 1
present evidence showing why the seized property should not be forfeited. 2
(iii) If the circuit court determines that grounds 3
for forfeiting the seized property exist and that a defense to forfeiture has 4
not been established by the owner or interest holder, the circuit court shall 5
enter an order under this section. However, if the circuit court determines 6
either that the prosecuting attorney has failed to establish that grounds for 7
forfeiting the seized property exist or that the owner or interest holder has 8
established a defense to forfeiture, the court shall order that the seized 9
property be immediately returned to the owner or interest holder. 10
(l)(1) If the circuit court having jurisdiction over the seized 11
property finds upon a hearing by a preponderance of the evidence that grounds 12
for a forfeiture exist under this subchapter, the circuit court shall enter 13
an order: 14
(A) To permit the law enforcement agency or prosecuting 15
attorney to retain the seized property for law enforcement or prosecutorial 16
purposes, subject to the following provisions: 17
(i)(a) Seized property may not be retained for 18
official use for more than three (3) years, unless the circuit court finds 19
that the seized property has been used for law enforcement or prosecutorial 20
purposes and authorizes continued use for those purposes on an annual basis. 21
(b) At the end of the retention period, the 22
seized property shall be sold and eighty percent (80%) of the proceeds shall 23
be deposited into the tobacco control fund of the retaining law enforcement 24
agency or prosecuting attorney, and twenty percent (20%) of the proceeds 25
shall be deposited into the State Treasury as special revenues to be credited 26
to the Special State Assets Forfeiture Fund. 27
(c) The retaining law enforcement agency or 28
prosecuting attorney may sell the retained seized property during the time 29
allowed for retention. However, the proceeds of the sale shall be distributed 30
as set forth in subdivision (l)(1)(A)(i)(b) of this section; 31
(ii) If the circuit court determines that retained 32
seized property has been used for personal use or by non -law enforcement 33
personnel for non-law enforcement purposes, the circuit court shall order the 34
seized property to be sold under § 5 -5-101(e) and (f), and the proceeds shall 35
be deposited into the State Treasury as special revenues to be credited to 36 SB455
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the Special State Assets Forfeiture Fund; 1
(iii)(a) A law enforcement agency may use 2
forfeited property or money if the circuit court's order specifies that the 3
forfeited property or money is forfeited to the prosecuting attorney, 4
sheriff, chief of police, Division of Arkansas State Police, director, or 5
Arkansas Highway Police Division of the Arkansas Department of 6
Transportation. 7
(b) After the order, the prosecuting attorney, 8
sheriff, chief of police, Division of Arkansas State Police, director, or 9
Arkansas Highway Police Division of the Arkansas Department of Transportation 10
shall maintain an inventory of the forfeited property or money, be 11
accountable for the forfeited property or money, and be subject to 12
subdivision (j)(5) of this section with respect to the forfeited property or 13
money; 14
(iv)(a) An aircraft is forfeited to the office 15
of the director and may be used only for tobacco, vapor product, alternative 16
nicotine product, or e -liquid product smuggling interdiction efforts within 17
the discretion of the director. 18
(b) However, if the director determines that 19
the aircraft should be sold, the proceeds of the sale shall be distributed as 20
set forth in subdivision (l)(1)(A)(i)(b) of this section; 21
(v) A firearm not retained for official use shall be 22
disposed of in accordance with state and federal law; and 23
(vi) A tobacco product, vapor product, alternative 24
nicotine product, or e -liquid product shall be destroyed pursuant to a court 25
order; 26
(B)(i) To sell seized property that is not required by law 27
to be destroyed and that is not harmful to the public. 28
(ii) Seized property described in subdivision 29
(l)(1)(B)(i) of this section shall be sold at a public sale by the retaining 30
law enforcement agency or prosecuting attorney under § 5 -5-101(e) and (f); or 31
(C) To transfer a motor vehicle to a school district for 32
use in a driver education course. 33
(2) Disposition of forfeited property under this subsection is 34
subject to the need to retain the forfeited property as evidence in any 35
related proceeding. 36 SB455
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(3) Within three (3) business days after the entry of the order, 1
the circuit clerk shall forward to the director copies of the confiscation 2
report, the circuit court's order, and other documentation detailing the 3
disposition of the seized property. 4
(m)(1)(A) Subject to subdivision (j)(5) of this section, the proceeds 5
of sales conducted under this section and moneys forfeited or obtained by 6
judgment or settlement under this subchapter shall be deposited and 7
distributed in the manner provided in this subsection. 8
(B) Moneys received from a federal forfeiture for a 9
violation of this subchapter shall be deposited and distributed under this 10
section. 11
(2)(A) The proceeds of a sale and moneys forfeited or obtained 12
by judgment or settlement under this subchapter shall be deposited into the 13
asset forfeiture fund of the prosecuting attorney and is subject to the 14
following provisions: 15
(i) If, during a calendar year, the aggregate amount 16
of moneys deposited into the asset forfeiture fund exceeds twenty thousand 17
dollars ($20,000) per county, the prosecuting attorney, within fourteen (14) 18
days after that time, shall notify the circuit judges in the judicial 19
district and the director; 20
(ii) Subsequent to the notification set forth in this 21
section, twenty percent (20%) of the proceeds of an additional sale and 22
additional moneys forfeited or obtained by judgment or settlement under this 23
subchapter in the same calendar year shall be deposited into the State 24
Treasury as special revenues to be credited to the Special State Assets 25
Forfeiture Fund, and the remainder shall be deposited into the asset 26
forfeiture fund of the prosecuting attorney; 27
(iii) Failure by the prosecuting attorney to comply 28
with the notification requirement set forth in this section renders the 29
prosecuting attorney and an entity eligible to receive forfeited moneys or 30
property from the prosecuting attorney ineligible to receive forfeited moneys 31
or property, except as provided in this section; and 32
(iv) Twenty percent (20%) of moneys in excess of 33
twenty thousand dollars ($20,000) that have been retained but not reported as 34
required by this section are subject to recovery for deposit into the Special 35
State Assets Forfeiture Fund. 36 SB455
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(B) The prosecuting attorney shall administer expenditures 1
from the asset forfeiture fund, which is subject to audit by Arkansas 2
Legislative Audit. Moneys distributed from the asset forfeiture fund shall be 3
used only for law enforcement and prosecutorial purposes. Moneys in the asset 4
forfeiture fund shall be distributed in the following order: 5
(i) For the satisfaction of a bona fide security 6
interest or lien; 7
(ii) For payment of a proper expense of the 8
proceeding for forfeiture and sale, including expenses of seizure, 9
maintenance of custody, advertising, and court costs; 10
(iii) Any balance under three hundred fifty thousand 11
dollars ($350,000) shall be distributed proportionally so as to reflect 12
generally the contribution of the appropriate local or state law enforcement 13
or prosecutorial agency's participation in any activity that led to the 14
seizure or forfeiture of the property or deposit of moneys under this 15
subchapter; and 16
(iv) Any balance over three hundred fifty thousand 17
dollars ($350,000) shall be forwarded to the director to be transferred to 18
the State Treasury for deposit into the Special State Assets Forfeiture Fund 19
for distribution under this section. 20
(C)(i) For a forfeiture in an amount greater than three 21
hundred fifty thousand dollars ($350,000) from which expenses are paid for a 22
proceeding for forfeiture and sale under this section, an itemized accounting 23
of the expenses shall be delivered to the director within ten (10) calendar 24
days after the distribution of the funds. 25
(ii) The itemized accounting shall include the 26
expenses paid, to whom paid, and for what purposes the expenses were paid. 27
(3)(A) Moneys received by a prosecuting attorney or law 28
enforcement agency from a federal forfeiture for a violation of this 29
subchapter shall be deposited and maintained in a separate account. 30
(B) However, a balance over three hundred fifty thousand 31
dollars ($350,000) shall be distributed as required under this section. 32
(4) Other moneys shall not be maintained in the account except 33
for interest income generated by the account. 34
(5) Moneys in the account shall only be used for law enforcement 35
and prosecutorial purposes consistent with governing federal law. 36 SB455
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(6) The account is subject to audit by Arkansas Legislative 1
Audit. 2
(7) A balance over three hundred fifty thousand dollars 3
($350,000) shall be transferred to the State Treasury for deposit into the 4
Special State Assets Forfeiture Fund in which it shall be maintained 5
separately and distributed consistently with governing federal law and upon 6
the advice of the director. 7
(n) In personam jurisdiction may be based on a person's presence in 8
the state or on his or her conduct in the state, as set out in § 16 -4-101(C), 9
and is subject to the following additional provisions: 10
(1) A temporary restraining order under this section may be 11
entered ex parte on application of the state upon a showing that: 12
(A) There is probable cause to believe that the property 13
with respect to which the order is sought is subject to forfeiture under this 14
section; and 15
(B) Notice of the action would jeopardize the availability 16
of the property for forfeiture; 17
(2)(A) Notice of the entry of a temporary restraining order and 18
an opportunity for hearing shall be afforded to a person known to have an 19
interest in the property. 20
(B) The hearing shall be held at the earliest possible 21
date consistent with Rule 65 of the Arkansas Rules of Civil Procedure and is 22
limited to the issues of whether: 23
(i) There is a probability that the state will 24
prevail on the issue of forfeiture and that failure to enter the temporary 25
restraining order will result in the property's being destroyed, conveyed, 26
alienated, encumbered, disposed of, received, removed from the jurisdiction 27
of the circuit court, concealed, or otherwise made unavailable for 28
forfeiture; and 29
(ii) The need to preserve the availability of 30
property through the entry of the requested temporary restraining order 31
outweighs the hardship on an owner or interest holder against whom the 32
temporary restraining order is to be entered; 33
(3) The state has the burden of proof by a preponderance of the 34
evidence to show that the defendant's property is subject to forfeiture; 35
(4)(A) On a determination of liability of a person for conduct 36 SB455
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giving rise to forfeiture under this section, the circuit court shall enter a 1
judgment of forfeiture of the property subject to forfeiture as alleged in 2
the complaint and may authorize the prosecuting attorney or a law enforcement 3
officer to seize property subject to forfeiture under this section not 4
previously seized or not then under seizure. 5
(B) The order of forfeiture shall be consistent with 6
subsection (l) of this section. 7
(C) In connection with the judgment, on application of the 8
state, the circuit court may enter an appropriate order to protect the 9
interest of the state in property ordered forfeited; and 10
(5) Subsequent to the finding of liability and order of 11
forfeiture, the following procedures apply: 12
(A) The attorney for the state shall give notice of 13
pending forfeiture in the manner provided in Rule 4 of the Arkansas Rules of 14
Civil Procedure to an owner or interest holder who has not previously been 15
given notice; 16
(B) An owner of or interest holder in property that has 17
been ordered forfeited and whose claim is not precluded may file a claim 18
within thirty (30) days after initial notice of pending forfeiture or after 19
notice under Rule 4 of the Arkansas Rules of Civil Procedure, whichever is 20
earlier; and 21
(C) The circuit court may amend the in personam order of 22
forfeiture if the circuit court determines that a claimant has established 23
that he or she has an interest in the property and that the interest is 24
exempt under this section. 25
(o) The circuit court shall order the forfeiture of other property of 26
a claimant or defendant up to the value of the claimant's or defendant's 27
property found by the circuit court to be subject to forfeiture under this 28
section if any of the forfeitable property had remained under the control or 29
custody of the claimant or defendant and: 30
(1) Cannot be located; 31
(2) Was transferred or conveyed to, sold to, or deposited with a 32
third party; 33
(3) Is beyond the jurisdiction of the circuit court; 34
(4) Was substantially diminished in value while not in the 35
actual physical custody of the seizing law enforcement agency; 36 SB455
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(5) Was commingled with other property that cannot be divided 1
without difficulty; or 2
(6) Is subject to interest exempted from forfeiture under this 3
subchapter. 4
(p)(1) There is created on the books of law enforcement agencies and 5
prosecuting attorneys a tobacco control fund. 6
(2) The fund shall consist of moneys obtained under this section 7
and other revenue as may be provided by law or ordinance. 8
(3) Moneys in the tobacco control fund shall be appropriated on 9
a continuing basis and are not subject to the Revenue Stabilization Law, § 10
19-5-101 et seq. 11
(4)(A) The fund shall be used for law enforcement and 12
prosecutorial purposes. 13
(B) Each prosecuting attorney shall submit to the Director 14
of Arkansas Tobacco Control on or before June 30 of each year a report 15
detailing moneys received and expenditures made from the tobacco control fund 16
during the preceding twelve -month period. 17
(5) The law enforcement agencies and prosecuting attorneys shall 18
submit to the director on or before June 30 of each year a report detailing 19
any moneys received and expenditures made from the tobacco control fund 20
during the preceding twelve -month period. 21
(6) Moneys from the tobacco control fund may not supplant other 22
local, state, or federal funds. 23
(7) The tobacco control fund is subject to audit by Arkansas 24
Legislative Audit. 25
26
SECTION 10. Arkansas Code § 26 -57-255(g)(3), effective until the 27
contingency in Acts 2023, No. 629, § 17, is met, concerning the powers and 28
duties of the Arkansas Tobacco Control Board, is amended to read as follows: 29
(3)(A) Conduct public hearings when appropriate regarding a 30
permit authorized under this subchapter or in violation of this subchapter, 31
the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-501 32
et seq., or any other federal, state, or local statute, ordinance, rule, or 33
regulation concerning the sale of tobacco products, vapor products, 34
alternative nicotine products, or e -liquid products to minors , or the rules 35
promulgated by Arkansas Tobacco Control. 36 SB455
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(B) After notice and hearing held in accordance with the 1
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 2
finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-3
701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 4
Tobacco Control, the board may suspend or revoke any or all permits issued by 5
the director to any person. 6
(C) The board may levy a civil penalty in an amount not to 7
exceed five thousand dollars ($5,000) one thousand dollars ($1,000) for each 8
violation against a person found to be in violation of this subchapter, the 9
Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 20-56-501 et seq., or the 10
rules promulgated by Arkansas Tobacco Control. 11
(D) Each day of a violation is a separate violation. 12
(E) A civil penalty under subdivision (g)(3)(C) of this 13
section is in addition to any penalties levied by the board under § 26 -57-14
248. 15
(F) In conducting a hearing under this subdivision (g)(3), 16
the board may examine or cause to be examined under oath any witness and the 17
books and records of a permitted person or other person; 18
19
SECTION 11. Arkansas Code § 26 -57-255, effective if the contingency in 20
Acts 2023, No. 629, § 17, is met, is repealed. 21
26-57-255. Arkansas Tobacco Control Board — Creation — Definition.22
(a) There is created the Arkansas Tobacco Control Board to consist of 23
the following eight (8) members appointed by the Governor: 24
(1) Two (2) members of the board shall be wholesalers of tobacco 25
products, vapor products, alternative nicotine products, or e -liquid 26
products; 27
(2) Two (2) members of the board shall be retailers of tobacco 28
products, vapor products, alternative nicotine products, or e -liquid 29
products; and 30
(3) Four (4) members of the board shall be members of the public 31
at large who are not public employees or officials, at least one (1) of whom 32
shall be an African-American, and two (2) of whom shall be appointed by the 33
Governor after consulting the Arkansas Medical Society, Inc. and subject to 34
confirmation by the Senate. 35
(b) The Governor shall designate which member of the board shall act 36 SB455
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as chair and that person shall serve as chair for two (2) years unless his or 1
her membership on the board ceases prior to the end of the two -year period. 2
(c)(1) All members of the board shall be residents of the State of 3
Arkansas and confirmed by the Senate. 4
(2) The term of office shall be five (5) years. 5
(d)(1) A minimum of five (5) members is required for a quorum. 6
(2)(A) All action by the board shall be by a majority vote of 7
the board members present at the regular or special meeting, and the board 8
may take no official action in connection with a matter except at a regular 9
or special meeting. 10
(B) In the event of a tie vote of the members of the 11
board, the Director of Arkansas Tobacco Control may cast the deciding vote. 12
(e) A person who is not a citizen of the United States and who has not 13
resided in the State of Arkansas for at least two (2) consecutive years 14
immediately preceding the date of appointment shall not be appointed to the 15
board. 16
(f) Each member of the board and the director shall take and subscribe 17
to an oath that he or she will support and enforce this subchapter, the 18
tobacco control laws of this state, the Arkansas Constitution, and the United 19
States Constitution. 20
(g) The board shall: 21
(1) Act as the adjudicatory body for Arkansas Tobacco Control; 22
(2) Have responsibility for approving the issuance, suspension, 23
and revocation of the permits enumerated in § 26 -57-219; 24
(3)(A) Conduct public hearings when appropriate regarding a 25
permit authorized under this subchapter or in violation of this subchapter, 26
the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-401 27
et seq., or any other federal, state, or local statute, ordinance, rule, or 28
regulation concerning the sale of tobacco products, vapor products, 29
alternative nicotine products, e -liquid products, or hemp -derived products to 30
minors or the rules promulgated by Arkansas Tobacco Control. 31
(B) After notice and hearing held in accordance with the 32
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 33
finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-34
701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 35
Tobacco Control, the board may suspend or revoke any or all permits issued by 36 SB455
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the director to any person. 1
(C) The board may levy a civil penalty in an amount not to 2
exceed five thousand dollars ($5,000) for each violation against a person 3
found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 4
§ 4-75-701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 5
Tobacco Control. 6
(D) Each day of a violation is a separate violation. 7
(E) A civil penalty under subdivision (g)(3)(C) of this 8
section is in addition to any penalties levied by the board under § 26 -57-9
248. 10
(F) In conducting a hearing under this subdivision (g)(3), 11
the board may examine or cause to be examined under oath any witness and the 12
books and records of a permitted person or other person; 13
(4) When requested by the written petition of at least three (3) 14
interested parties, conduct public hearings to receive testimony regarding 15
the facts relevant to the issuance of a permit under this subchapter; and 16
(5)(A) Not have authority in criminal prosecutions or the 17
assessment or collection of any taxes. 18
(B) However, the board shall refuse to approve the 19
issuance or renewal of a permit issued by the director for the failure to pay 20
taxes or fees imposed on tobacco products or any permit fees imposed under 21
this subchapter or any other state or local taxes. 22
(h)(1) The board may assess penalties for a violation of § 5 -27-227 23
according to the following schedule: 24
(A) For a first violation within a forty -eight-month 25
period, a civil penalty not to exceed two hundred fifty dollars ($250); 26
(B) For a second violation within a forty -eight-month 27
period, a civil penalty not to exceed five hundred dollars ($500) and 28
suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 29
two (2) days; 30
(C) For a third violation within a forty -eight-month 31
period, a civil penalty not to exceed one thousand dollars ($1,000) and 32
suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 33
seven (7) days; 34
(D) For a fourth or subsequent violation within a forty -35
eight-month period, a civil penalty not to exceed two thousand dollars 36 SB455
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($2,000) and suspension of the permit enumerated in § 26 -57-219 for a period 1
not to exceed fourteen (14) days; and 2
(E) For a fifth or subsequent violation within a forty -3
eight-month period, in addition to the other penalties provided under this 4
subsection, the permit enumerated in § 26 -57-219 may be revoked. 5
(2)(A) A penalty under this subsection shall not be imposed on a 6
retailer or an agent or employee of a retailer who can establish an 7
affirmative defense that before the date of the violation the retailer or 8
agent or employee of the retailer furnishing the tobacco products, vapor 9
products, alternative nicotine products, e -liquid products, or cigarette 10
papers reasonably relied on proof of age that identified the person receiving 11
the tobacco products, vapor products, alternative nicotine products, e -liquid 12
products, or cigarette papers as not being a minor. 13
(B) As used in this subsection, “proof of age” means valid 14
documentation issued by a governmental agency containing the person's 15
photograph, date of birth, and an expiration date. 16
(3)(A) For a corporation or business with more than one (1) 17
retail location, to determine the number of accumulated violations for 18
purposes of the penalty schedule stated in this subsection, violations of § 19
5-27-227 by one (1) retail location shall not be accumulated against other 20
retail locations of that same corporation or business. 21
(B) For a retail location, for purposes of the penalty 22
schedule stated in this subsection, violations accumulated and assessed 23
against a prior owner of the retail location shall not be accumulated against 24
a new owner of the same retail location unless approved by the board. 25
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SECTION 12. Arkansas Code § 26 -57-256(a)(2) and (3), effective until 27
the contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 28
Arkansas Tobacco Control, are amended to read as follows: 29
(2)(A) Receive applications for and issue, refuse, suspend, and 30
revoke permits listed in § 26 -57-219 and § 20-56-501 et seq. 31
(B) Arkansas Tobacco Control shall refuse to issue or 32
renew any permits issued by the Director of Arkansas Tobacco Control for the 33
failure to pay: 34
(i) Any applicable taxes or fees imposed on tobacco 35
products,; 36 SB455
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(ii) Permit permit fees imposed under this 1
subchapter and § 20-56-501 et seq.;, or 2
(iii) Any any other state or local taxes; 3
(3) Prescribe forms of applications for permits under this 4
subchapter and § 20-56-501 et seq; 5
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SECTION 13. Arkansas Code § 26 -57-256, effective if the contingency in 7
Acts 2023, No. 629, § 17, is met, is repealed. 8
26-57-256. Arkansas Tobacco Control — Powers. 9
(a) Arkansas Tobacco Control shall: 10
(1) Promulgate rules for the proper enforcement and 11
implementation of this subchapter and the Unfair Cigarette Sales Act, § 4 -75-12
701 et seq.; 13
(2)(A) Receive applications for and issue, refuse, suspend, and 14
revoke permits listed in § 26 -57-219 and § 20-56-401 et seq. 15
(B) Arkansas Tobacco Control shall refuse to issue or 16
renew any permits issued by the Director of Arkansas Tobacco Control for the 17
failure to pay: 18
(i) Any applicable taxes or fees imposed on tobacco 19
products; 20
(ii) Permit fees imposed under this subchapter or on 21
hemp-derived products under § 20 -56-401 et seq.; or 22
(iii) Other state or local taxes; 23
(3) Prescribe forms of applications for permits under this 24
subchapter and § 20-56-401 et seq.; 25
(4)(A) Cooperate with the Revenue Division of the Department of 26
Finance and Administration in the enforcement of the tax laws affecting the 27
sale of tobacco products in this state and in the enforcement of all other 28
state and local tax laws. 29
(B) To facilitate efforts to cooperate with the division 30
concerning the enforcement of all other state and local tax laws, Arkansas 31
Tobacco Control shall immediately require that the following additional 32
information be provided by all applicants for permit issuance or renewal: 33
(i) Federal tax identification numbers issued by the 34
Internal Revenue Service; 35
(ii) Social Security numbers; and 36 SB455
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(iii) State sales tax account numbers assigned by the 1
Department of Finance and Administration, if applicable. 2
(C)(i) Each year Arkansas Tobacco Control shall provide a 3
list of all applicants for the issuance or renewal of all tobacco products, 4
vapor product, alternative nicotine product, or e -liquid product permits to 5
the Secretary of the Department of Finance and Administration. 6
(ii) This list shall contain the identifying 7
information required by subdivision (a)(4)(B) of this section as well as the 8
name of the permittee and the permittee's current business address; 9
(5)(A) Collect civil penalties assessed by the Arkansas Tobacco 10
Control Board under § 26 -57-255. 11
(B) Unless the civil penalty is paid within fifteen (15) 12
days following the date for an appeal from the order, the director shall have 13
the power to institute a civil action in the Pulaski County Circuit Court to 14
recover the civil penalties assessed; and 15
(6)(A) Provide notice to the retail location of an alleged 16
violation of § 5-27-227 within ten (10) days of the alleged violation. 17
(B) The notice required under subdivision (a)(6)(A) of 18
this section shall contain the date and time of the alleged violation. 19
(b) Any tobacco products, vapor products, alternative nicotine 20
products, e-liquid products, hemp -derived products as defined in § 20 -56-402, 21
or cigarette papers found in the possession of a minor may be confiscated and 22
destroyed. 23
(c) Except as otherwise provided by law, the penalties collected under 24
this section shall be deposited into the State Treasury. 25
26
SECTION 14. Arkansas Code § 26 -57-256(b), effective until the 27
contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 28
Arkansas Tobacco Control, is amended to read as follows: 29
(b) Any tobacco products, vapor products, alternative nicotine 30
products, e-liquid products, hemp products as defined in § 20 -56-501, or 31
cigarette papers found in the possession of a minor may be confiscated and 32
destroyed. 33
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SECTION 15. Uncodified Section 17 of Acts 2023, No. 629, which 35
reflects changes to the references to "Sections 6 -13", "Sections 6-14", and 36 SB455
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"Sections 2-5" in Acts 2023, No. 629, §§ 16 and 17 made by the Arkansas Code 1
Revision Commission, is repealed. 2
SECTION 17. Contingent effective date. 3
Sections 6-14 [8-16] of this act shall become effective only upon the 4
certification of the Arkansas Attorney General that the State of Arkansas is 5
currently enjoined from enforcing Sections 2 -5 [2-7] of this act relating to 6
delta-8 tetrahydrocannabinol and delta -10 tetrahyrdocannabinol, but no 7
earlier than August 1, 2023. 8
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