Arkansas 2025 Regular Session

Arkansas Senate Bill SB455 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to present law.
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3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 SENATE BILL 455 3
6	6	4
7	7	By: Senator J. Bryant 5
8	8	By: Representative Gonzales 6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO ALLOW REGULATION OF HEMP PRODUCTS BY 9
12	12	ARKANSAS TOBACCO CONTROL; TO AMEND THE UNIFORM 10
13	13	CONTROLLED SUBSTANCES ACT TO REMOVE CERTAIN 11
14	14	SUBSTANCES THAT ARE DEFINED AS HEMP PRODUCTS; AND FOR 12
15	15	OTHER PURPOSES. 13
16	16	14
17	17	15
18	18	Subtitle 16
19	19	TO ALLOW REGULATION OF HEMP PRODUCTS BY 17
20	20	ARKANSAS TOBACCO CONTROL; AND TO AMEND 18
21	21	THE UNIFORM CONTROLLED SUBSTANCES ACT TO 19
22	22	REMOVE CERTAIN SUBSTANCES THAT ARE 20
23	23	DEFINED AS HEMP PRODUCTS. 21
24	24	22
25	25	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
26	26	24
27	27	SECTION 1. Arkansas Code § 5 -64-101(16)(B)(vi), concerning the 25
28	28	exclusion from the definition of "marijuana" within the Uniform Controlled 26
29	29	Substances Act, is amended to read as follows: 27
30	30	(vi) Hemp-derived cannabidiol that: Hemp as defined 28
31	31	in § 20-56-501 or 29
32	32	(a) Contains not more than three -tenths of one 30
33	33	percent (0.3%) of delta -9 tetrahydrocannabinol (THC) on a dry weight basis as 31
34	34	verified by a nationally accredited laboratory for quality, purity, and 32
35	35	accuracy standards; and 33
36	36	(b) Is not approved by the United States Food 34
37	37	and Drug Administration for marketing as a medication; 35
38	38	36 SB455
39	39
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41	41	SECTION 2. Arkansas Code § 5 -64-215(a)(2), concerning the substances 1
42	42	in Schedule VI of the Uniform Controlled Substances Act, is amended to read 2
43	43	as follows: 3
44	44	(2) Tetrahydrocannabinols, unless the tetrahydrocannabinol is: 4
45	45	(A) Contained in hemp-derived cannabidiol hemp or a hemp 5
46	46	product under § 20-56-501; or 6
47	47	(B) Not more than three -tenths of one percent (0.3%) of 7
48	48	delta-9 tetrahydrocannabinol in the hemp -derived cannabidiol on a dry weight 8
49	49	basis as verified by a nationally accredited laboratory for quality, purity, 9
50	50	and accuracy standards; and 10
51	51	(C)(B) Not approved Approved by the United States Food and 11
52	52	Drug Administration for marketing as a medication; 12
53	53	13
54	54	SECTION 3. Arkansas Code § 5 -64-215(a)(5)(A)(i), concerning the 14
55	55	substances in Schedule VI of the Uniform Controlled Substances Act, is 15
56	56	amended to read as follows: 16
57	57	(A)(i) Tetrahydrocannabinols, including without limitation 17
58	58	the following: 18
59	59	(a) Delta-1 cis or trans tetrahydrocannabinol , 19
60	60	otherwise known as a delta -9 cis or trans tetrahydrocannabinol, and its 20
61	61	optical isomers; 21
62	62	(b) Delta-6 cis or trans tetrahydrocannabinol , 22
63	63	otherwise known as a delta -8 cis or trans tetrahydrocannabinol, and its 23
64	64	optical isomers; and 24
65	65	(c) Delta-3,4 cis or trans 25
66	66	tetrahydrocannabinol , otherwise known as a delta -6a,10a cis or trans 26
67	67	tetrahydrocannabinol, and its optical isomers ; 27
68	68	(d) Delta-10 cis or trans 28
69	69	tetrahydrocannabinol, and its optical isomers; 29
70	70	(e) Delta-8 tetrahydrocannabinol acetate 30
71	71	ester; 31
72	72	(f) Delta-9 tetrahydrocannabinol acetate 32
73	73	ester; 33
74	74	(g) Delta-6a,10a tetrahydrocannabinol acetate 34
75	75	ester; 35
76	76	(h) Delta-10 tetrahydrocannabinol acetate 36 SB455
77	77
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79	79	ester; 1
80	80	(i) A product derived from industrial hemp 2
81	81	that was produced as a result of a synthetic chemical process that converted 3
82	82	the industrial hemp or a substance contained in the industrial hemp into 4
83	83	delta-8, delta-9, delta-6a,10a, or delta-10 tetrahydrocannabinol including 5
84	84	their respective acetate esters; and 6
85	85	(j) Any other psychoactive substance derived 7
86	86	therein. 8
87	87	9
88	88	SECTION 4. Arkansas Code § 19-6-831(b), effective until the 10
89	89	contingency in Acts 2023, No. 629, § 17, is met, is amended to read as 11
90	90	follows: 12
91	91	19-6-831. Arkansas Tobacco Control Revenue Fund. 13
92	92	(a) There is created on the books of the Treasurer of State, the 14
93	93	Auditor of the State, and the Chief Fiscal Officer of the State a special 15
94	94	revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 16
95	95	(b)(1) All permit and license fees received by Arkansas Tobacco 17
96	96	Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 18
97	97	seq., and § 20-56-501 et seq. shall be deposited into the State Treasury as 19
98	98	special revenues to the credit of the fund. 20
99	99	(2) The fund also shall consist of any other revenues authorized 21
100	100	by law. 22
101	101	(c)(1) The fund shall be used for expenses incurred by Arkansas 23
102	102	Tobacco Control in the organization, maintenance, operation, and merchant 24
103	103	education and training with regard to enforcement of § 5 -27-227, the Arkansas 25
104	104	Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-501 et seq., 26
105	105	and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 27
106	106	(2) Expenditures of moneys in the fund are subject to the 28
107	107	General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 29
108	108	Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 30
109	109	laws. 31
110	110	(3) The receipts and disbursements of Arkansas Tobacco Control 32
111	111	shall be audited annually by Arkansas Legislative Audit. 33
112	112	34
113	113	SECTION 5. Arkansas Code § 19 -6-831, effective if the contingency in 35
114	114	Acts 2023, No. 629, § 17, is met, is repealed. 36 SB455
115	115
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117	117	19-6-831. Arkansas Tobacco Control Revenue Fund. 1
118	118	(a) There is created on the books of the Treasurer of State, the 2
119	119	Auditor of the State, and the Chief Fiscal Officer of the State a special 3
120	120	revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 4
121	121	(b)(1) All permit and license fees received by Arkansas Tobacco 5
122	122	Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 6
123	123	seq., and § 20-56-401 et seq., shall be deposited into the State Treasury as 7
124	124	special revenues to the credit of the fund. 8
125	125	(2) The fund also shall consist of any other revenues authorized 9
126	126	by law. 10
127	127	(c)(1) The fund shall be used for expenses incurred by Arkansas 11
128	128	Tobacco Control in the organization, maintenance, operation, and merchant 12
129	129	education and training with regard to enforcement of § 5 -27-227, the Arkansas 13
130	130	Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-401 et seq., 14
131	131	and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 15
132	132	(2) Expenditures of moneys in the fund are subject to the 16
133	133	General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 17
134	134	Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 18
135	135	laws. 19
136	136	(3) The receipts and disbursements of Arkansas Tobacco Control 20
137	137	shall be audited annually by Arkansas Legislative Audit. 21
138	138	22
139	139	SECTION 6. Arkansas Code Title 20, Chapter 56, is amended to add an 23
140	140	additional subchapter to read as follows: 24
141	141	Subchapter 5 — Hemp Products 25
142	142	26
143	143	20-56-501. Definitions. 27
144	144	As used in this subchapter: 28
145	145	(1) “Hemp” means the plant Cannabis sativa and any part of the 29
146	146	plant, including the seeds of the plant, that contains a delta -9 30
147	147	tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 31
148	148	less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 32
149	149	isomers, acids, salts, and salts of isomers, whether growing or not; 33
150	150	(2) "Hemp product" means any product derived from or containing 34
151	151	hemp, including without limitation oils, extracts, delta -8 35
152	152	tetrahydrocannabinol, delta -10 tetrahydrocannabinol, and other hemp -derived 36 SB455
153	153
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155	155	cannabinoids; and 1
156	156	(3)(A) “Minor” means a person who is under twenty -one (21) years 2
157	157	of age. 3
158	158	(B) “Minor” does not include a person who is under twenty -4
159	159	one (21) years of age if the person presents a military identification card 5
160	160	establishing that he or she is a member of the United States Armed Forces. 6
161	161	7
162	162	20-56-502. Regulation and enforcement. 8
163	163	(a) Arkansas Tobacco Control shall regulate and enforce the provisions 9
164	164	of this subchapter concerning hemp and hemp products. 10
165	165	(b) Arkansas Tobacco Control shall: 11
166	166	(1) Issue permits to manufacture, distribute, or sell hemp 12
167	167	products; 13
168	168	(2) Identify and disclose foreign ownership interests in 14
169	169	permitted operations; 15
170	170	(3) Conduct inspections of hemp product retailers and 16
171	171	manufacturers; 17
172	172	(4) Enforce age restrictions on the purchase of hemp products; 18
173	173	and 19
174	174	(5) Impose fines and penalties for violations of this 20
175	175	subchapter. 21
176	176	22
177	177	20-56-503. Permits. 23
178	178	(a) All manufacturers, wholesalers, and retailers of hemp products 24
179	179	shall obtain a permit from Arkansas Tobacco Control. 25
180	180	(b) The permit fees shall be as follows: 26
181	181	(1) Two hundred fifty dollars ($250) annually for wholesalers 27
182	182	and retailers of hemp products; and 28
183	183	(2) Five hundred dollars ($500) annually for manufacturers of 29
184	184	hemp products. 30
185	185	(c) A permit holder shall comply with all rules adopted by Arkansas 31
186	186	Tobacco Control, including without limitation: 32
187	187	(1) Registering the company with Arkansas Tobacco Control; 33
188	188	(2) Disclosing ownership of the company; and 34
189	189	(3) Adhering to testing, packaging, and labeling requirements 35
190	190	under this subchapter. 36 SB455
191	191
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193	193	1
194	194	20-56-504. Testing and safety. 2
195	195	(a) Hemp products sold in this state shall be tested by a laboratory 3
196	196	that meets the quality management system and technical competence 4
197	197	requirements of the ISO/IEC 17025 standard or by a laboratory that is ISO 5
198	198	17025 certified, or an equivalent standard or certified by a similar 6
199	199	standard. 7
200	200	(b) Incoming raw material and products shall be subject to appropriate 8
201	201	test protocols, including without limitation testing for heavy metals, 9
202	202	mycotoxins, pesticides, and residual solvents to ensure the safety of the 10
203	203	finished product. 11
204	204	(c) Testing information and results shall be available on the 12
205	205	manufacturer's or brand's website or through a quick -response code or similar 13
206	206	method. 14
207	207	15
208	208	20-56-505. Packaging and labeling. 16
209	209	(a) A hemp product shall be packaged in a child -resistant container. 17
210	210	(b) A label on a hemp product shall clearly state: 18
211	211	(1) The ingredient listing in descending order, including all 19
212	212	cannabinoids; 20
213	213	(2) The website or quick -response code to testing information 21
214	214	and results; 22
215	215	(3) An indication that the hemp product is not intended for a 23
216	216	person under twenty-one (21) years of age; 24
217	217	(4) Warnings that reference contraindications, major allergen 25
218	218	warnings, and directions for use; 26
219	219	(5) The lot number and batch number; and 27
220	220	(6) Contact information for the manufacturer. 28
221	221	29
222	222	20-56-506. Advertising and marketing. 30
223	223	(a) Advertising for a hemp product shall not target minors. 31
224	224	(b) Packaging for a hemp product shall not use imagery associated with 32
225	225	candy or any products that are marketed exclusively to children. 33
226	226	34
227	227	20-56-507. Manufacturing. 35
228	228	All hemp products sold in this state shall be manufactured in 36 SB455
229	229
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231	231	accordance with good manufacturing practices. 1
232	232	2
233	233	20-56-508. Age restrictions. 3
234	234	(a) It is unlawful for any minor to purchase, possess, or use any hemp 4
235	235	product. 5
236	236	(b) A retailer shall verify the age of all purchasers of hemp products 6
237	237	through a government -issued identification. 7
238	238	8
239	239	20-56-509. Penalties. 9
240	240	(a) A violation of this subchapter may result in Arkansas Tobacco 10
241	241	Control taking any of the following actions: 11
242	242	(1) Fining up to one thousand dollars ($1,000) per violation; 12
243	243	(2) Suspending or revoking a permit issued under this 13
244	244	subchapter; or 14
245	245	(3) Pursuing criminal charges for repeat offenders or sales to 15
246	246	minors. 16
247	247	(b) All fees, fines, and penalties collected under this subchapter 17
248	248	shall be used to fund enforcement activities for this subchapter by Arkansas 18
249	249	Tobacco Control. 19
250	250	20
251	251	20-56-510. Rules. 21
252	252	The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 22
253	253	may promulgate rules for the proper enforcement of their powers and duties 23
254	254	under this subchapter, including without limitation the regulation of 24
255	255	processing, transportation, delivery, sale, and purchase of hemp products in 25
256	256	accordance with this subchapter and the power to levy penalties for 26
257	257	violations of this subchapter. 27
258	258	28
259	259	20-56-511. Federal preemption. 29
260	260	Upon the certification of the Arkansas Tobacco Control that federal law 30
261	261	prohibits the sale or use of hemp products, this subchapter shall prohibit 31
262	262	the sale or use of hemp products in the same manner as the federal law. 32
263	263	33
264	264	SECTION 7. Arkansas Code Title 20, Chapter 56, Subchapter 4, effective 34
265	265	if the contingency in Acts 2023, No. 629, § 17, is met, is repealed. 35
266	266	Subchapter 4 — Hemp-Derived Products 36 SB455
267	267
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269	269	1
270	270	20-56-401. Purpose. 2
271	271	It is the intent of this subchapter to provide regulation of certain 3
272	272	hemp-derived products to: 4
273	273	(1) Prevent the sale and use of illicit hemp -based products 5
274	274	within Arkansas; and 6
275	275	(2) Protect and promote the public health and welfare of the 7
276	276	residents of this state. 8
277	277	9
278	278	20-56-402. Definitions. 10
279	279	As used in this subchapter: 11
280	280	(1) “Annual” or “annually” means the fiscal year from July 1 12
281	281	through the next June 30; 13
282	282	(2) “Approved laboratory” means a laboratory that is accredited 14
283	283	by the National Institute on Drug Abuse, the National Environmental 15
284	284	Laboratory Accreditation Conference, the International Organization for 16
285	285	Standardization, or a similar accrediting entity as determined by Arkansas 17
286	286	Tobacco Control and that has been approved by the Director of Arkansas 18
287	287	Tobacco Control specifically for the testing of hemp -derived product; 19
288	288	(3) “Consumer” means a member of the public at large; 20
289	289	(4) “Days” means calendar days unless otherwise specified; 21
290	290	(5) “Finished product” means a product intended for consumer use 22
291	291	to be sold at retail; 23
292	292	(6) “Hemp” means the plant Cannabis sativa and any part of the 24
293	293	plant, including the seeds of the plant, that contains a delta -9 25
294	294	tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 26
295	295	less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 27
296	296	isomers, acids, salts, and salts of isomers, whether growing or not; 28
297	297	(7) “Hemp-derived e-liquid product” means a liquid hemp -derived 29
298	298	product that contains hemp that is inhaled when using a vapor product, and 30
299	299	that may or may not include without limitation propylene glycol, vegetable 31
300	300	glycerin, and flavorings; 32
301	301	(8)(A) “Hemp-derived product” means a product intended for any 33
302	302	form of human consumption, including consumption by vapor inhalation, or a 34
303	303	component of a product, that is derived from hemp, including all derivatives, 35
304	304	extracts, cannabinoids, isomers, acids, salts, and salts of isomers, and any 36 SB455
305	305
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307	307	product made from such derivatives, and that contains greater than three -1
308	308	tenths of one percent (0.3%) tetrahydrocannabinol. 2
309	309	(B) “Hemp-derived product” includes a hemp -derived e-3
310	310	liquid product and a vapor product. 4
311	311	(C) “Hemp-derived product” does not include: 5
312	312	(i) A product intended for animal consumption or 6
313	313	use; 7
314	314	(ii) A cosmetic as defined by § 20 -56-202; 8
315	315	(iii) Any marijuana, medical marijuana, or other 9
316	316	cannabis product containing delta -9 tetrahydrocannabinol greater than three -10
317	317	tenths of one percent (0.3%) on a dry -weight basis as administered, licensed, 11
318	318	and otherwise regulated by the Alcoholic Beverage Control Division, the 12
319	319	Medical Marijuana Commission, and the Department of Health under the Arkansas 13
320	320	Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 14
321	321	(iv) A raw hemp product, including any intact plant, 15
322	322	flower, buds, leaves, or stems; 16
323	323	(v) A drug in the form for which an application 17
324	324	filed in accordance with 21 U.S.C. § 355 is approved by the United States 18
325	325	Food and Drug Administration; 19
326	326	(vi) A dietary supplement as defined by the Federal 20
327	327	Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or 21
328	328	(vii) A fabric, textile, cordage, fiber, fuel, paper, 22
329	329	construction material, plastic, seed, seed meal, and seed oil; 23
330	330	(9)(A) “Manufacturer” means a person that manufactures, 24
331	331	fabricates, assembles, or processes a hemp -derived product, including without 25
332	332	limitation federally licensed importers and federally licensed distributors 26
333	333	that deal in hemp-derived products. 27
334	334	(B) “Manufacturer” includes: 28
335	335	(i) A sales entity affiliate of the manufacturer or 29
336	336	any other entity representing the manufacturer with regard to the sale of 30
337	337	hemp-derived products produced by the manufacturer to wholesalers or 31
338	338	permitted retailers; and 32
339	339	(ii) A person that mixes, compounds, extracts, 33
340	340	infuses, blends, processes, repackages, or resizes hemp -derived products 34
341	341	including the extraction of cannabinoids from hemp biomass. 35
342	342	(C) “Manufacturer” does not include a person who engages 36 SB455
343	343
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345	345	in the agricultural production of hemp, such as growing, planting, and 1
346	346	harvesting of raw hemp biomass regulated by the State Plant Board; 2
347	347	(10) “Minor” means a person who is under twenty -one (21) years of 3
348	348	age; 4
349	349	(11) “Person” means an individual, retailer, wholesaler, 5
350	350	manufacturer, firm, association, company, partnership, limited liability 6
351	351	company, corporation, joint -stock company, club, agency, syndicate, the State 7
352	352	of Arkansas, county, municipal corporation or other political subdivision of 8
353	353	the state, receiver, trustee, fiduciary, or trade association; 9
354	354	(12) “Place of business” means the physical location: 10
355	355	(A) Where orders for hemp -derived products are taken or 11
356	356	received or where hemp -derived products are sold; and 12
357	357	(B) That is on file with Arkansas Tobacco Control; 13
358	358	(13) “Retailer” means a person that purchases hemp -derived 14
359	359	products from permitted wholesalers for the purpose of selling the hemp -15
360	360	derived products in person and over the counter at retail to consumers; 16
361	361	(14)(A) “Sale” or “sell” means a transfer, exchange, or 17
362	362	barter in any manner or by any means for any consideration, including 18
363	363	distributing or shipping hemp -derived product in connection with a sale. 19
364	364	(B) A sale “in” or “into” a state refers to the state in 20
365	365	which the destination point of the hemp -derived product is located in the 21
366	366	sale without regard to where title was transferred. 22
367	367	(C) A sale “from” a state refers to the sale of a hemp -23
368	368	derived product that is located in that state to the destination in question 24
369	369	without regard to where title was transferred; 25
370	370	(15) “Self-service display” means a display: 26
371	371	(A) That contains a hemp -derived product, or any component 27
372	372	of a hemp-derived product; 28
373	373	(B) That is located in an area where customers are 29
374	374	permitted; and 30
375	375	(C) In which the hemp -derived product, or any component of 31
376	376	a hemp-derived product, is readily accessible to a customer without the 32
377	377	assistance of a salesperson; 33
378	378	(16) “Tetrahydrocannabinol” means a compound that is the natural, 34
379	379	primary active cannabinoid substance or its equivalent contained in the plant 35
380	380	of the genus cannabis or in the resinous extracts of the plant, including 36 SB455
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383	383	derivatives or isomers derived from such cannabinoids; 1
384	384	(17) “Vapor product” means hemp -derived product that is an 2
385	385	electronic oral device of any size or shape that contains a vapor of hemp or 3
386	386	hemp-derived e-liquid product that when used or inhaled simulates smoking, 4
387	387	regardless of whether a visible vapor is produced, including without 5
388	388	limitation a device that: 6
389	389	(A) Is composed of a heating element, battery, electronic 7
390	390	circuit, chemical process, mechanical device, or a combination of heating 8
391	391	element, battery, electronic circuit, chemical process, or mechanical device; 9
392	392	(B) Works in combination with a cartridge, other 10
393	393	container, or liquid delivery device containing hemp or hemp -derived e-liquid 11
394	394	product and manufactured for use with vapor products; 12
395	395	(C) Is manufactured, distributed, marketed, or sold as any 13
396	396	type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 14
397	397	other produced name or descriptor; and 15
398	398	(D) Does not include a product regulated as a drug or 16
399	399	device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 17
400	400	as it existed on January 1, 2015; 18
401	401	(18) “Warehouse” means a place where hemp -derived products are 19
402	402	stored for another person and to or from which place the hemp -derived 20
403	403	products are shipped or delivered upon order by the owner of the hemp -derived 21
404	404	products, to the warehouse; and 22
405	405	(19) “Wholesaler” means a person other than a manufacturer or a 23
406	406	person owned or operated by a manufacturer that: 24
407	407	(A) Does business within the state; 25
408	408	(B) Purchases hemp-derived products from any source; 26
409	409	(C) Distributes or sells the hemp -derived products to 27
410	410	other wholesalers, or retailers; and 28
411	411	(D) Does not distribute or sell the hemp -derived products 29
412	412	at retail to consumers. 30
413	413	31
414	414	20-56-403. Construction. 32
415	415	(a) A hemp-derived product shall not be delivered, sold, bought, or 33
416	416	used in this state except in conformity with all applicable laws and 34
417	417	regulations, including this subchapter and any rules promulgated under this 35
418	418	subchapter. 36 SB455
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421	421	(b) A person shall not sell a hemp -derived product without being 1
422	422	permitted by Arkansas Tobacco Control. 2
423	423	(c) A product intended for human consumption or inhalation that is 3
424	424	derived from hemp and contains tetrahydrocannabinol shall not be permitted or 4
425	425	allowed under the laws of this state, other than hemp -derived products if 5
426	426	otherwise legal under state law. 6
427	427	(d)(1) A hemp-derived product shall not be combined with or contain 7
428	428	any of the following: 8
429	429	(A) Any liquid, hydrocolloid, animal -based substance, 9
430	430	thickener, sweetener, flavoring, synthetic product, propylene glycol, 10
431	431	vegetable glycerin, or other non -hemp-derived substance; 11
432	432	(B) Nicotine or tobacco; or 12
433	433	(C) Any amount of tetrahydrocannabinol as to create a 13
434	434	danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 14
435	435	other risk to the public. 15
436	436	(2) Medical devices, prescription drugs, or drugs otherwise 16
437	437	approved by the United States Food and Drug Administration shall not be 17
438	438	considered hemp-derived products. 18
439	439	(e) The business of handling, receiving, possessing, storing, 19
440	440	distributing, taking orders for, soliciting orders of, selling, offering for 20
441	441	sale, and dealing in, through sale, barter, or exchange, hemp -derived 21
442	442	products is declared to be a privilege under the Arkansas Constitution and 22
443	443	laws of the State of Arkansas. 23
444	444	24
445	445	20-56-404. Permits. 25
446	446	(a)(1) Each person listed in this section, before commencing business, 26
447	447	or if already in business, before continuing business, shall pay an annual 27
448	448	privilege fee and secure a permit from the Director of Arkansas Tobacco 28
449	449	Control. 29
450	450	(2) A person purchasing an existing permitted retail location 30
451	451	may, with the permission of the seller and Arkansas Tobacco Control, operate 31
452	452	under the selling owner's permit for no more than thirty (30) days from the 32
453	453	date of the sale. 33
454	454	(b)(1) In addition to securing a permit under subsection (a) of this 34
455	455	section, a manufacturer whose products are sold in this state shall register 35
456	456	with the Secretary of the Department of Finance and Administration. 36 SB455
457	457
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459	459	(2) A wholesaler of hemp -derived products shall secure the 1
460	460	proper wholesale permit. 2
461	461	(3) Every retailer of hemp -derived products that operates a 3
462	462	place of business shall secure the proper retail permit. 4
463	463	(c)(1) Permits shall be issued as follows: 5
464	464	(A) A permit for a sole proprietorship is issued in the 6
465	465	owner's name and in the fictitious business name, if any; 7
466	466	(B)(i) A permit for a partnership or limited liability 8
467	467	company is issued in the name of: 9
468	468	(a) The managing partner or managing member; 10
469	469	and 11
470	470	(b) The partnership or limited liability 12
471	471	company. 13
472	472	(ii) If the managing partner or managing member of a 14
473	473	limited liability company is a partnership, limited liability company, or 15
474	474	corporation, then the permit shall be issued in the name of: 16
475	475	(a) The president or chief executive officer; 17
476	476	and 18
477	477	(b) The partnership or limited liability 19
478	478	company; and 20
479	479	(C) A permit for a publicly traded or nonpublicly traded 21
480	480	corporation is issued in the name of the president or chief executive officer 22
481	481	of the corporation and in the name of the corporation. 23
482	482	(2) It is a violation for a permitted entity not to provide 24
483	483	written notification to the director within thirty (30) days of a change in 25
484	484	the following: 26
485	485	(A) The managing partner, limited liability company 27
486	486	managing member, or president or chief executive officer of a corporation, 28
487	487	partnership, or limited liability company; or 29
488	488	(B) The stockholders effecting twenty -five percent (25%) 30
489	489	or more of the total voting shares of a nonpublicly traded corporation. 31
490	490	(d)(1) When an entity transfers a business permitted under this 32
491	491	subchapter, the entity to which the business is transferred: 33
492	492	(A) Shall apply for a new permit under this subchapter; 34
493	493	(B) May be issued a new permit under this subchapter; and 35
494	494	(C) May operate under the selling entity's permit for no 36 SB455
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497	497	more than thirty (30) days from the date of the sale. 1
498	498	(2) When a partnership or limited liability company permitted 2
499	499	under this subchapter changes, removes, or replaces the managing partner, 3
500	500	managing member, president, or chief executive officer: 4
501	501	(A) The existing permit issued under this subchapter is 5
502	502	void; and 6
503	503	(B) The partnership or limited liability company: 7
504	504	(i) Shall apply for a new permit under this 8
505	505	subchapter; 9
506	506	(ii) May be issued a new permit under this 10
507	507	subchapter; and 11
508	508	(iii) May operate under the voided permit for no more 12
509	509	than thirty (30) days from the date of the change, removal, or replacement of 13
510	510	the permit. 14
511	511	(3) When a nonpublicly traded corporation permitted under this 15
512	512	subchapter changes, removes, or replaces the president or chief executive 16
513	513	officer named on the permit or changes, removes, or replaces a stockholder 17
514	514	who owns fifty percent (50%) or more of the total voting shares of the 18
515	515	nonpublicly traded corporation's stock: 19
516	516	(A) The permit issued under this subchapter is void; and 20
517	517	(B) The nonpublicly traded corporation: 21
518	518	(i) Shall apply for a new permit under this 22
519	519	subchapter; 23
520	520	(ii) May be issued a new permit under this 24
521	521	subchapter; and 25
522	522	(iii) May operate under the voided permit for no more 26
523	523	than thirty (30) days from the date of the change, removal, or replacement of 27
524	524	the permit. 28
525	525	(4) When a publicly traded corporation permitted under this 29
526	526	subchapter changes, removes, or replaces the president or chief executive 30
527	527	officer named on the permit or changes, removes, or replaces a stockholder 31
528	528	who owns fifty percent (50%) or more of the total voting shares of the 32
529	529	publicly traded corporation's stock: 33
530	530	(A) The permit issued under this subchapter is void; and 34
531	531	(B) The publicly traded corporation: 35
532	532	(i) Shall apply for a new permit under this 36 SB455
533	533
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535	535	subchapter; 1
536	536	(ii) May be issued a new permit under this 2
537	537	subchapter; and 3
538	538	(iii) May operate under the voided permit for no more 4
539	539	than thirty (30) days from the date of the change, removal, or replacement of 5
540	540	the permit. 6
541	541	(e) An entity may apply for and be issued a permit under this 7
542	542	subchapter in advance of the effective date of the permit to facilitate 8
543	543	continuity of business operations. 9
544	544	10
545	545	20-56-405. Permits — Location — Background check required. 11
546	546	(a) A retail, wholesale, or manufacturer permit shall not be issued to 12
547	547	a residential address, a mobile structure or vehicle, or for an address not 13
548	548	zoned appropriately for the business seeking to secure the permit. 14
549	549	(b) A permit shall not be issued to: 15
550	550	(1) A person who has pleaded guilty or nolo contendere to or 16
551	551	been found guilty of a felony; or 17
552	552	(2) A business owned or operated, in whole or in part, by a 18
553	553	person who has pleaded guilty or nolo contendere to or been found guilty of a 19
554	554	felony. 20
555	555	(c) Arkansas Tobacco Control shall conduct a criminal background check 21
556	556	on each permit applicant and application, utilizing its Arkansas Crime 22
557	557	Information Center access as a law enforcement agency, in accordance with §§ 23
558	558	12-12-1008 — 12-12-1011. 24
559	559	25
560	560	20-56-406. Permits — Annual privilege fees. 26
561	561	(a) The annual privilege fee for each permit authorized by this 27
562	562	subchapter is established as follows: 28
563	563	(1) Wholesale Hemp-derived Products Permit.............$5,000 29
564	564	(2) Retail Hemp-derived Products Permit.............$5,000 30
565	565	(3) Manufacturer Hemp -derived Products Permit.............$5,000 31
566	566	(b)(1) All permits issued under this subchapter shall expire on June 32
567	567	30 following the effective date of issuance. 33
568	568	(2)(A) Upon the failure to timely renew a permit issued under 34
569	569	this subchapter, a late fee of two (2) times the amount of the appropriate 35
570	570	permit fee shall be owed in addition to the annual privilege fee for the 36 SB455
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573	573	permit. 1
574	574	(B) An expired permit that is not renewed before September 2
575	575	1 following the expiration of the permit shall not be renewed, and the holder 3
576	576	of the expired permit shall submit an application for a new permit. 4
577	577	(3) A permit shall not be issued to the applicant until the late 5
578	578	fee and the permit fee have been paid. 6
579	579	(c) A permit issued under this subchapter shall not be renewed for a 7
580	580	permit holder who is delinquent more than ninety (90) days on a privilege 8
581	581	fee, tax relating to the sale or dispensing of hemp -derived products, or any 9
582	582	other state and local tax due to the Secretary of the Department of Finance 10
583	583	and Administration. 11
584	584	(d) A person who is delinquent more than ninety (90) days on a state 12
585	585	or local tax may not renew or obtain a permit issued under this subchapter 13
586	586	except upon certification that the permit holder has entered into a repayment 14
587	587	agreement with the Department of Finance and Administration and is current on 15
588	588	the payments. 16
589	589	(e) A permit holder who has unpaid fees, civil penalties, or an 17
590	590	unserved permit suspension may not transfer, sell, or give hemp -derived 18
591	591	product inventory of the business associated with the permit to a third party 19
592	592	until all fees and civil penalties are paid in full and all suspensions are 20
593	593	completed successfully, nor shall any third party be issued a new permit for 21
594	594	the business location. 22
595	595	(f) Each manufacturer, wholesaler, and retailer shall retain copies of 23
596	596	all invoices for the purchase or sale of any hemp -derived products for a 24
597	597	period of at least ten (10) years subject to examination by the Secretary of 25
598	598	the Department of Finance and Administration and the Director of Arkansas 26
599	599	Tobacco Control or their authorized agents upon demand at any time during 27
600	600	regular business hours. 28
601	601	(g) A retailer shall: 29
602	602	(1) Maintain copies of at least the last three hundred sixty -30
603	603	five (365) days of hemp -derived product invoices, which the retailer shall 31
604	604	provide immediately upon demand; 32
605	605	(2)(A) Make the invoices that are older than three hundred 33
606	606	sixty-five (365) days available upon demand at any time during normal 34
607	607	business hours in the retail store. 35
608	608	(B) Except as provided in subdivision (g)(2)(C) of this 36 SB455
609	609
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611	611	section, an agent of Arkansas Tobacco Control may determine a reasonable time 1
612	612	frame for which invoices are to be provided under subdivision (g)(2)(A) of 2
613	613	this section. 3
614	614	(C) An invoice that is provided seventy -two (72) hours or 4
615	615	more after the demand shall not be considered for purposes of determining a 5
616	616	violation of this subsection; 6
617	617	(3) Retain invoices for all hemp -derived products in the retail 7
618	618	store even if the invoice for the hemp -derived products is older than three 8
619	619	(3) years; 9
620	620	(4) Maintain a copy of the signed server awareness forms for 10
621	621	each employee of the retailer who engages in the sale of hemp -derived 11
622	622	products, which the retailer shall provide immediately upon demand; 12
623	623	(5)(A) Maintain a copy of any complete transfer forms showing: 13
624	624	(i) The hemp-derived products that were transferred; 14
625	625	(ii) The permitted location from which the hemp -15
626	626	derived products were transferred; and 16
627	627	(iii) When the transfer occurred. 17
628	628	(B) A transfer form shall be completed contemporaneously 18
629	629	with the transfer and shall be provided immediately by the retailer upon 19
630	630	demand; and 20
631	631	(6) If any inventory was submitted with a permit application, 21
632	632	maintain a copy of the submitted inventory form, which the retailer shall 22
633	633	provide immediately upon demand. 23
634	634	(h) A wholesaler and manufacturer shall: 24
635	635	(1) Maintain ten (10) years of hemp -derived product invoices 25
636	636	that are available upon demand during normal business hours in the permitted 26
637	637	location; and 27
638	638	(2) Permit Arkansas Tobacco Control and authorized personnel of 28
639	639	Arkansas Tobacco Control to enter into and inspect stock of hemp -derived 29
640	640	products, and any documents and records relating to receipts and 30
641	641	disbursements of hemp -derived products. 31
642	642	(i) An invoice from a wholesaler to a retailer shall contain the name 32
643	643	or other identifying information of the wholesaler and the retailer. 33
644	644	(j)(1) A nonresident wholesaler shall also keep a record of all hemp -34
645	645	derived products purchased for distribution within this state. 35
646	646	(2) All books, records, and memoranda pertaining to the purchase 36 SB455
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649	649	and sale of the hemp -derived products under subdivision (j)(1) of this 1
650	650	section shall be subject to inspection by Arkansas Tobacco Control. 2
651	651	(k) Authorized personnel of Arkansas Tobacco Control shall not release 3
652	652	to the Arkansas Tobacco Control Board or to the public any information 4
653	653	identifying customers of the manufacturer, wholesaler, or warehouse except 5
654	654	when necessary to notify the board of alleged violations of this subchapter. 6
655	655	7
656	656	20-56-407. Permits — Not transferable — Duplicates. 8
657	657	(a) A permit under this subchapter is not: 9
658	658	(1) Transferable to a subsequent owner or operator; or 10
659	659	(2) Transferable to a different physical location unless the 11
660	660	permit holder obtains permission from the Director of Arkansas Tobacco 12
661	661	Control. 13
662	662	(b) A person purchasing an existing permitted retail location may 14
663	663	operate under the selling owner's permit for no more than thirty (30) days 15
664	664	from the date of the sale. 16
665	665	(c) When a permit is lost by a permit holder, a duplicate permit may 17
666	666	be issued upon application and for a fee of five dollars ($5.00) when 18
667	667	sufficient proof has been given to the Director of Arkansas Tobacco Control. 19
668	668	20
669	669	20-56-408. Permits — Suspension or revocation. 21
670	670	(a) All permits issued under this subchapter shall be suspended or 22
671	671	revoked by the Director of Arkansas Tobacco Control for any violation of this 23
672	672	subchapter or the rules pertaining to this subchapter, subject to a hearing 24
673	673	before the Arkansas Tobacco Control Board at the next regularly scheduled 25
674	674	board meeting. 26
675	675	(b) The director may revoke all permits to deal in hemp -derived 27
676	676	products associated with any person who is convicted of or pleads guilty or 28
677	677	nolo contendere to criminally violating this subchapter, subject to a hearing 29
678	678	before the board at the next regularly scheduled board meeting. 30
679	679	31
680	680	20-56-409. Advertising prohibitions and packaging requirements. 32
681	681	(a) A hemp-derived product distributed or offered for sale in this 33
682	682	state shall include the following information on the product label or product 34
683	683	packaging: 35
684	684	(1) The name of the hemp -derived product manufacturer, whether 36 SB455
685	685
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687	687	in-state or out-of-state, and distributor, whether in -state or out-of-state; 1
688	688	(2) Product labeling clearly showing that the product contains 2
689	689	material derived from hemp and not marijuana or medical marijuana; and 3
690	690	(3) Any other marking, words, statement, or symbol as required 4
691	691	by Arkansas Tobacco Control through rules. 5
692	692	(b) A person shall not advertise, market, or offer for sale in this 6
693	693	state any hemp-derived product by using, in the labeling or design of the 7
694	694	product, its packaging, or in its advertising or marketing materials, trade 8
695	695	dress, trademarks, branding, or other related imagery that: 9
696	696	(1) Imitates or replicates those of food brands or other related 10
697	697	products that are marketed to or are commonly associated with children or 11
698	698	minors, including without limitation breakfast cereal, cookies, juice drinks, 12
699	699	soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 13
700	700	(2) Depicts or signifies characters or symbols that are known to 14
701	701	a reasonable person to appeal primarily to or are commonly associated with 15
702	702	children or minors, including without limitation superheroes, cartoons or 16
703	703	cartoon characters, including anime characters, comic book characters, video 17
704	704	game characters, television show characters, movie characters, mythical 18
705	705	creatures, unicorns, or that otherwise incorporates related imagery or 19
706	706	scenery; or 20
707	707	(3) Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 21
708	708	or “cupcakes” or any variant of these terms, or any other term referencing a 22
709	709	type or brand of candy, cakes, pastries, or pies, including types or brands 23
710	710	of candy, cakes, pastries, or pies that do not include the words “candy”, 24
711	711	“candies”, “cake”, “cakes”, “pies”, or “cupcakes” in their names, labels, or 25
712	712	slogans. 26
713	713	27
714	714	20-56-410. Testing. 28
715	715	(a) All hemp-derived products sold in this state shall be tested by an 29
716	716	approved laboratory. 30
717	717	(b) An approved laboratory shall be an independent third -party 31
718	718	laboratory. 32
719	719	(c) A hemp-derived product sold in this state shall be tested for the 33
720	720	following and marked as to the hemp -derived product chemical makeup before 34
721	721	being sold to consumers: 35
722	722	(1) Cannabinoid profile; 36 SB455
723	723
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725	725	(2) Solvents; 1
726	726	(3) Pesticides; 2
727	727	(4) Microbials; 3
728	728	(5) Heavy metals; and 4
729	729	(6) Any non-hemp-based substance. 5
730	730	(d) A hemp-derived product shall not be distributed or sold in this 6
731	731	state without a certificate of analysis from an approved laboratory that 7
732	732	confirms: 8
733	733	(1) The hemp-derived product was tested by an approved 9
734	734	laboratory; 10
735	735	(2) A tested representative sample of the hemp -derived product 11
736	736	contained a total delta -9 tetrahydrocannabinol concentration that did not 12
737	737	exceed three-tenths of one percent (0.3%) under this subchapter; and 13
738	738	(3) A detailed analysis and list of chemical makeup of the 14
739	739	tested hemp-derived product under subsection (c) of this section. 15
740	740	(e) Arkansas Tobacco Control may periodically sample, analyze, and 16
741	741	test any hemp-derived product located in this state. 17
742	742	(f) The Director of Arkansas Tobacco Control shall: 18
743	743	(1) Investigate and issue subpoenas to any permittee or approved 19
744	744	laboratory used by a permittee that the director has reasonable suspicion of 20
745	745	intentionally producing falsified test results on hemp -derived products; and 21
746	746	(2) Promulgate rules for the enforcement of this section and set 22
747	747	penalties for any violation of the rules. 23
748	748	24
749	749	20-56-411. Providing minors with hemp -derived products — Purchase, 25
750	750	use, or possession prohibited. 26
751	751	(a)(1) It is unlawful for any person to give, barter, or sell to a 27
752	752	minor a hemp-derived product. 28
753	753	(2) Except as provided in subdivision (a)(3) of this section, a 29
754	754	person who pleads guilty or nolo contendere to or is found guilty of 30
755	755	violating subdivision (a)(1) of this section is guilty of a Class A 31
756	756	misdemeanor. 32
757	757	(3) An employee or owner of a retail location permitted under 33
758	758	this subchapter who violates subdivision (a)(1) of this section while inside 34
759	759	the retail location upon conviction is subject to a fine not to exceed one 35
760	760	hundred dollars ($100) per violation. 36 SB455
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763	763	(b)(1) It is unlawful for a minor to: 1
764	764	(A) Use or possess or to purchase or attempt to purchase a 2
765	765	hemp-derived product; or 3
766	766	(B) For the purpose of obtaining or attempting to obtain a 4
767	767	hemp-derived product, falsely represent himself or herself not to be a minor 5
768	768	by displaying proof of age that is false, fraudulent, or not actually proof 6
769	769	of the minor's age. 7
770	770	(2) Any hemp-derived product found in the possession of a minor 8
771	771	may be confiscated and destroyed by a law enforcement officer. 9
772	772	(c)(1) It is not an offense under subsection (b) of this section if: 10
773	773	(A) The minor was acting at the direction of an authorized 11
774	774	agent of Arkansas Tobacco Control to enforce or ensure compliance with laws 12
775	775	relating to the prohibition of the sale of hemp -derived product to minors; 13
776	776	(B) The minor was acting at the direction of an authorized 14
777	777	agent of the Division of Aging, Adult, and Behavioral Health Services of the 15
778	778	Department of Human Services to compile statistical data relating to the sale 16
779	779	of hemp-derived products to minors; 17
780	780	(C) The minor was acting at the request of a permit holder 18
781	781	to assist the permit holder by performing a check on the permit holder's own 19
782	782	retail business to see if the permit holder's employees would sell hemp -20
783	783	derived products to the minor; or 21
784	784	(D) The minor was acting as an agent of a retail permit 22
785	785	holder within the scope of employment. 23
786	786	(2) A minor performing activities under subdivision (c)(1) of 24
787	787	this section shall: 25
788	788	(A) Display the appearance of a minor; 26
789	789	(B) Have the written consent of the minor's parent or 27
790	790	guardian to perform the activity on file with the agency utilizing the minor; 28
791	791	and 29
792	792	(C)(i) Present a true and correct identification if asked. 30
793	793	(ii) Any failure on the part of a minor to provide 31
794	794	true and correct identification upon request is a defense to any action under 32
795	795	this section or a civil action under § 26 -57-256. 33
796	796	(d) Any person who sells hemp -derived products has the right to deny 34
797	797	the sale of any hemp -derived product to any person. 35
798	798	(e) It is unlawful for any person who has been issued a permit or a 36 SB455
799	799
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801	801	license under this subchapter to fail to display in a conspicuous place a 1
802	802	sign indicating that the sale of hemp -derived products to or purchase or 2
803	803	possession of hemp-derived products by a minor is prohibited by law. 3
804	804	(f) It is unlawful for any manufacturer whose hemp -derived product is 4
805	805	distributed in this state and any person who has been issued a permit or 5
806	806	license under this subchapter to distribute a free sample of any hemp -derived 6
807	807	product, or any component of a hemp -derived product or coupon that entitles 7
808	808	the holder of the coupon to any free sample of any hemp -derived product, or 8
809	809	any component of a hemp -derived product: 9
810	810	(1) In or on any public street or sidewalk within five hundred 10
811	811	feet (500′) of any playground, public school, or other facility when the 11
812	812	playground, public school, or other facility is being used primarily by 12
813	813	minors for recreational, educational, or other purposes; or 13
814	814	(2) To any minor. 14
815	815	(g) It is unlawful for any person that has been issued a permit or 15
816	816	license under this subchapter to: 16
817	817	(1) Sell or distribute a hemp -derived product through a self -17
818	818	service display, a vending machine, or an order executed solely over the 18
819	819	internet or similar means; or 19
820	820	(2) Advertise or promote hemp -derived products in a manner that 20
821	821	is intended to appeal to children. 21
822	822	(h) Any retail permit holder or license holder who violates any 22
823	823	provision in this section is deemed guilty of a violation and subject to 23
824	824	penalties under § 26 -57-256. 24
825	825	(i)(1) A notice of an alleged violation of this section shall be given 25
826	826	to the holder of a retail permit or license or an agent of the holder within 26
827	827	ten (10) days of the alleged violation. 27
828	828	(2)(A) The notice under subdivision (i)(1) of this section shall 28
829	829	contain the date and time of the alleged violation. 29
830	830	(B)(i) The notice under subdivision (i)(1) of this section 30
831	831	shall also include either the name of the person making the alleged sale or 31
832	832	information reasonably necessary to determine the location in the store that 32
833	833	allegedly made the sale. 33
834	834	(ii) When appropriate, information under subdivision 34
835	835	(i)(2)(B)(i) of this section should include, but not be limited to, the: 35
836	836	(a) Cash register number of the sale in the 36 SB455
837	837
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839	839	store; 1
840	840	(b) Physical location of the sale in the 2
841	841	store; and 3
842	842	(c) If possible, the lane or aisle number of 4
843	843	the sale in the store. 5
844	844	(j) Notwithstanding the provisions of subsection (h) of this section, 6
845	845	the court shall consider the following factors when reviewing a possible 7
846	846	violation: 8
847	847	(1) The business has adopted and enforced a written policy 9
848	848	against selling hemp -derived products to minors; 10
849	849	(2) The business has informed its employees of the applicable 11
850	850	laws regarding the sale of hemp -derived products to minors; 12
851	851	(3) The business has required employees to verify the age of a 13
852	852	customer attempting to purchase a hemp -derived product by way of photographic 14
853	853	identification; 15
854	854	(4) The business has established and imposed disciplinary 16
855	855	sanctions for noncompliance; and 17
856	856	(5) That the appearance of the purchaser of the hemp -derived 18
857	857	product was such that an ordinary prudent person would believe him or her to 19
858	858	be of legal age to make the purchase. 20
859	859	(k) A person convicted of violating any provision of this section 21
860	860	whose permit or license to distribute or sell a hemp -derived product is 22
861	861	suspended or revoked upon conviction shall surrender to the court any permit 23
862	862	or license to distribute or sell a hemp -derived product, and the court shall 24
863	863	transmit the permit or license to distribute or sell a hemp -derived product 25
864	864	to the Director of Arkansas Tobacco Control: 26
865	865	(1) To suspend or revoke the person's permit or license to 27
866	866	distribute or sell a hemp -derived product and to not renew the permit or 28
867	867	license; and 29
868	868	(2) Not to issue any new permit or license to that person for 30
869	869	the period of time determined by the court in accordance with this section. 31
870	870	32
871	871	20-56-412. Enforcement — Penalties. 33
872	872	(a) It is the duty of all state, county, and city officers to assist 34
873	873	Arkansas Tobacco Control in enforcing this subchapter. 35
874	874	(b) A person within the jurisdiction of this state who is not 36 SB455
875	875
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877	877	permitted to sell hemp -derived products to retailers or consumers and who 1
878	878	sells, takes orders from, delivers, or causes to be delivered immediately or 2
879	879	in the future any hemp -derived products to retailers or consumers in the 3
880	880	State of Arkansas is guilty of a Class A misdemeanor. 4
881	881	(c) A person engaged in buying or selling hemp -derived products in 5
882	882	this state without first obtaining the proper permit upon conviction is 6
883	883	guilty of a Class A misdemeanor. 7
884	884	(d) This subchapter does not prohibit in any form the continuous 8
885	885	transportation through Arkansas of the plant Cannabis sativa L., and any part 9
886	886	of that plant, including the seeds thereof and all derivatives, extracts, 10
887	887	cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 11
888	888	not, with a total delta -9 tetrahydrocannabinol concentration of not more than 12
889	889	three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 13
890	890	hemp producer in another state to a licensed hemp handler in another state. 14
891	891	15
892	892	20-56-413. Rules. 16
893	893	The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 17
894	894	may promulgate rules for the proper enforcement of their powers and duties 18
895	895	under this subchapter, including without limitation the regulation of 19
896	896	processing, transportation, delivery, sale, and purchase of hemp -derived 20
897	897	products in accordance with this subchapter and the power to levy penalties 21
898	898	for violations of this subchapter. 22
899	899	23
900	900	SECTION 8. Arkansas Code § 26 -57-247(b), effective until the 24
901	901	contingency in Acts 2023, No. 629, § 17, is met, concerning those unstamped 25
902	902	and untaxed items that may be seized by the Director of Arkansas Tobacco 26
903	903	Control, is amended to add an additional subdivision read as follows: 27
904	904	(5) Hemp products are possessed, sold, or offered for sale in 28
905	905	violation of § 20-56-501 et seq. 29
906	906	30
907	907	SECTION 9. Arkansas Code § 26 -57-247, effective if the contingency in 31
908	908	Acts 2023, No. 629, § 17, is met, is repealed. 32
909	909	26-57-247. Seizure, forfeiture, and disposition of tobacco products 33
910	910	and other property. 34
911	911	(a) Cigarettes to which stamps have not been affixed as provided by 35
912	912	law are subject to seizure and shall be held as evidence for prosecution. 36 SB455
913	913
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915	915	(b) The Director of Arkansas Tobacco Control may seize and hold for 1
916	916	disposition of the courts or the Arkansas Tobacco Control Board all tobacco 2
917	917	products, vapor products, alternative nicotine products, e -liquid products, 3
918	918	or hemp-derived products found in the possession of a person dealing in, or a 4
919	919	consumer of, tobacco products, vapor products, alternative nicotine products, 5
920	920	e-liquid products, or hemp -derived products if: 6
921	921	(1) Prima facie evidence exists that the full amount of excise 7
922	922	tax due on the tobacco products has not been paid to the Secretary of the 8
923	923	Department of Finance and Administration; 9
924	924	(2) Tobacco products, vapor products, alternative nicotine 10
925	925	products, or e-liquid products are in the possession of a wholesaler who does 11
926	926	not possess a current Arkansas wholesale permit; 12
927	927	(3) A retail establishment does not possess a current Arkansas 13
928	928	retail permit; 14
929	929	(4) The tobacco products, vapor products, alternative nicotine 15
930	930	products, or e-liquid products have been offered for sale to the public at 16
931	931	another location without a current Arkansas retail permit; or 17
932	932	(5) Hemp-derived products are possessed, sold, or offered for 18
933	933	sale in violation of § 20 -56-401 et seq. 19
934	934	(c) Property, including money, used to facilitate a violation of this 20
935	935	subchapter or the Unfair Cigarette Sales Act, § 4 -75-701 et seq., may be 21
936	936	seized and forfeited to the state. 22
937	937	(d)(1) A prosecuting attorney may institute a civil action against a 23
938	938	person who is convicted of a criminal violation under this subchapter or the 24
939	939	Unfair Cigarette Sales Act, § 4 -75-701 et seq., to obtain a judgment for: 25
940	940	(A) Damages in an amount equal to the value of the 26
941	941	property, funds, or a monetary instrument involved in the violation; 27
942	942	(B) The proceeds acquired by a person involved in the 28
943	943	enterprise or by reason of conduct in furtherance of the violation; and 29
944	944	(C) Costs incurred by Arkansas Tobacco Control in the 30
945	945	investigation, prosecution, and adjudication of criminal, civil, and 31
946	946	administrative proceedings. 32
947	947	(2) The standard of proof in an action brought under subdivision 33
948	948	(d)(1) of this section is preponderance of the evidence. 34
949	949	(e) The following are subject to forfeiture under this section upon 35
950	950	order by a circuit court: 36 SB455
951	951
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953	953	(1) Tobacco products, vapor products, alternative nicotine 1
954	954	products, or e-liquid products distributed, dispensed, or acquired in 2
955	955	violation of this subchapter; 3
956	956	(2) Raw materials, products, or equipment used or intended for 4
957	957	use in manufacturing, compounding, processing, delivering, importing, or 5
958	958	exporting a tobacco product, vapor product, alternative nicotine product, or 6
959	959	e-liquid product in violation of this subchapter; 7
960	960	(3) Property that is used or intended for use as a container for 8
961	961	property described in subdivision (e)(1) or subdivision (e)(2) of this 9
962	962	section; 10
963	963	(4)(A) Except as provided in subdivision (e)(4)(B) of this 11
964	964	section, a conveyance, including an aircraft, vehicle, or vessel, that is 12
965	965	used or intended to be used to transport or in any manner to facilitate the 13
966	966	transportation for the purpose of sale or receipt of property described in 14
967	967	subdivision (e)(1) or subdivision (e)(2) of this section. 15
968	968	(B)(i) A conveyance used by a person as a common carrier 16
969	969	in the transaction of business as a common carrier is not subject to 17
970	970	forfeiture under this section unless it appears that the owner or other 18
971	971	person in charge of the conveyance is a consenting party or privy to a 19
972	972	violation of this subchapter. 20
973	973	(ii) A conveyance is not subject to forfeiture under 21
974	974	this section by reason of an act or omission established by the owner of the 22
975	975	conveyance to have been committed or omitted without his or her knowledge or 23
976	976	consent. 24
977	977	(C) Upon a showing described in subdivision (e)(4)(B)(i) 25
978	978	of this section by the owner or interest holder of a conveyance, the 26
979	979	conveyance may nevertheless be forfeited if the prosecuting attorney 27
980	980	establishes that the owner or interest holder either knew or should 28
981	981	reasonably have known that the conveyance would be used to transport or in 29
982	982	any manner to facilitate the transportation for the purpose of sale or 30
983	983	receipt of property described in subdivision (e)(1) or subdivision (e)(2) of 31
984	984	this section. 32
985	985	(D) A conveyance encumbered by a bona fide security 33
986	986	interest is subject to the interest of the secured party if the secured party 34
987	987	neither had knowledge of nor consented to an act or omission in violation of 35
988	988	this subchapter; 36 SB455
989	989
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991	991	(5) A book, record, or research product or material, including a 1
992	992	formula, microfilm, tape, or data that is used or intended for use in 2
993	993	violation of this subchapter; 3
994	994	(6)(A) Except as provided in subdivision (e)(6)(B) of this 4
995	995	section, a thing of value, including: 5
996	996	(i) Firearms purchased from the proceeds of the sale 6
997	997	of untaxed tobacco products, vapor products, alternative nicotine products, 7
998	998	or e-liquid products in violation of this subchapter or used in furtherance 8
999	999	of a criminal offense as described in § 26 -57-245; 9
1000	1000	(ii) Proceeds or profits traceable to an exchange 10
1001	1001	described in subdivision (e)(6)(A)(i) of this section; and 11
1002	1002	(iii) Money, negotiable instruments, or security used 12
1003	1003	or intended to be used to facilitate a violation of this subchapter. 13
1004	1004	(B) Property shall not be forfeited under subdivision 14
1005	1005	(e)(6)(A) of this section to the extent of the interest of an owner by reason 15
1006	1006	of an act or omission established by him or her by a preponderance of the 16
1007	1007	evidence to have been committed or omitted without his or her knowledge or 17
1008	1008	consent; 18
1009	1009	(7)(A) Money, coins, or currency found in close proximity to a 19
1010	1010	forfeitable tobacco product, vapor product, alternative nicotine product, or 20
1011	1011	e-liquid product or a forfeitable record of an importation of a tobacco 21
1012	1012	product, vapor product, alternative nicotine product, or e -liquid product is 22
1013	1013	presumed to be forfeitable under this section. 23
1014	1014	(B) The burden of proof is upon a claimant of the money, 24
1015	1015	coins, or currency to rebut the presumption in subdivision (e)(7)(A) of this 25
1016	1016	section by a preponderance of the evidence; and 26
1017	1017	(8)(A) Except as provided in subdivision (e)(8)(B) of this 27
1018	1018	section, real property if it substantially assisted in, facilitated in any 28
1019	1019	manner, or was used or intended for use in the commission of any act 29
1020	1020	prohibited by this subchapter. 30
1021	1021	(B)(i) Real property is not subject to forfeiture under 31
1022	1022	this section by reason of an act or omission established by the owner of the 32
1023	1023	real property by a preponderance of the evidence to have been committed or 33
1024	1024	omitted without his or her knowledge or consent. 34
1025	1025	(ii) A forfeiture of real property encumbered by a 35
1026	1026	mortgage or other lien is subject to the interest of the secured party if the 36 SB455
1027	1027
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1029	1029	secured party neither had knowledge of nor consented to an act or omission in 1
1030	1030	violation of this subchapter. 2
1031	1031	(iii) If the circuit court finds by a preponderance 3
1032	1032	of the evidence that grounds for a forfeiture exist under this section, the 4
1033	1033	court shall enter an order requiring the forfeiture of the real property. 5
1034	1034	(C) Upon an order of forfeiture of real property, the 6
1035	1035	order shall be filed on the day issued and shall have prospective effect. 7
1036	1036	(D) A forfeiture of real property does not affect the 8
1037	1037	title of a bona fide purchaser who purchased the real property before the 9
1038	1038	issuance of the order, and the order has no force or effect on the title of 10
1039	1039	the bona fide purchaser. 11
1040	1040	(E) A lis pendens filed in connection with an action 12
1041	1041	pending under this section that may result in the forfeiture of real property 13
1042	1042	is effective only from the time filed and has no retroactive effect. 14
1043	1043	(f) A tobacco product, vapor product, alternative nicotine product, or 15
1044	1044	e-liquid product that is possessed, transferred, sold, or offered for sale in 16
1045	1045	violation of this subchapter may be seized and immediately forfeited to the 17
1046	1046	state. 18
1047	1047	(g)(1) Property subject to forfeiture under this subchapter may be 19
1048	1048	seized by a law enforcement agent upon process issued by a circuit court 20
1049	1049	having jurisdiction over the property on petition filed by the prosecuting 21
1050	1050	attorney of the judicial circuit. 22
1051	1051	(2) Seizure without process may be made if: 23
1052	1052	(A) The seizure is incident to an arrest or a search under 24
1053	1053	a search warrant or an inspection under the regulatory authority of Arkansas 25
1054	1054	Tobacco Control; 26
1055	1055	(B) The property subject to seizure has been the subject 27
1056	1056	of a prior judgment in favor of the state in a criminal injunction or 28
1057	1057	forfeiture proceeding based upon this subchapter; 29
1058	1058	(C) The seizing law enforcement agency has probable cause 30
1059	1059	to believe that the property is directly or indirectly dangerous to health or 31
1060	1060	safety; or 32
1061	1061	(D) The seizing law enforcement agency has probable cause 33
1062	1062	to believe that the property was used or is intended to be used in violation 34
1063	1063	of this subchapter. 35
1064	1064	(h)(1) A state or local law enforcement agency shall not transfer 36 SB455
1065	1065
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1067	1067	property seized by the state or local agency under this section to a federal 1
1068	1068	entity for forfeiture under federal law unless the circuit court having 2
1069	1069	jurisdiction over the property enters an order, upon petition by the 3
1070	1070	prosecuting attorney, authorizing the property to be transferred to the 4
1071	1071	federal entity. 5
1072	1072	(2) The transfer shall not be approved unless it reasonably 6
1073	1073	appears that the activity giving rise to the investigation or seizure 7
1074	1074	involves more than one (1) state or the nature of the investigation or 8
1075	1075	seizure would be better pursued under federal law. 9
1076	1076	(i)(1) Property seized for forfeiture under this section is not 10
1077	1077	subject to replevin but is deemed to be in the custody of the seizing law 11
1078	1078	enforcement agency subject only to an order or decree of the circuit court 12
1079	1079	having jurisdiction over the property seized. 13
1080	1080	(2) Subject to a need to retain the property as evidence, when 14
1081	1081	property is seized under this subchapter, the seizing law enforcement agency 15
1082	1082	may: 16
1083	1083	(A) Remove the property to a place designated by the 17
1084	1084	circuit court; 18
1085	1085	(B) Place the property under constructive seizure, posting 19
1086	1086	notice of pending forfeiture on it by: 20
1087	1087	(i) Giving notice of pending forfeiture to its 21
1088	1088	owners and interest holders; or 22
1089	1089	(ii) Filing notice of pending forfeiture in an 23
1090	1090	appropriate public record relating to the property; 24
1091	1091	(C) Remove the property to a storage area for safekeeping 25
1092	1092	or, if the property is a negotiable instrument or money or is not needed for 26
1093	1093	evidentiary purposes, deposit it into an interest -bearing account; or 27
1094	1094	(D) Provide for another agency or custodian, including an 28
1095	1095	owner, secured party, mortgagee, or lienholder, to take custody of the 29
1096	1096	property and service, maintain, and operate it as reasonably necessary to 30
1097	1097	maintain its value in an appropriate location within the jurisdiction of the 31
1098	1098	court. 32
1099	1099	(3)(A) In case of transfer of property, a transfer receipt shall 33
1100	1100	be prepared by the transferring agency. 34
1101	1101	(B) The transfer receipt shall: 35
1102	1102	(i) List a detailed and complete description of the 36 SB455
1103	1103
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1105	1105	property being transferred; 1
1106	1106	(ii) State to whom the property is being transferred 2
1107	1107	and the source or authorization for the transfer; and 3
1108	1108	(iii) Be signed by both the transferor and the 4
1109	1109	transferee. 5
1110	1110	(C) Both transferor and transferee shall maintain a copy 6
1111	1111	of the transfer receipt. 7
1112	1112	(4) A person who acts as custodian of property under this 8
1113	1113	section is not liable to any person on account of an act done in a reasonable 9
1114	1114	manner in compliance with an order under this subchapter. 10
1115	1115	(j)(1) Property seized by a state or local law enforcement officer 11
1116	1116	under this section who is detached to, deputized or commissioned by, or 12
1117	1117	working in conjunction with a federal agency remains subject to this section. 13
1118	1118	(2)(A) If property is seized for forfeiture by a law enforcement 14
1119	1119	agency under this section, the seizing law enforcement officer shall prepare 15
1120	1120	and sign a confiscation report. 16
1121	1121	(B)(i) The party from whom the property is seized shall 17
1122	1122	also sign the confiscation report if present and shall immediately receive a 18
1123	1123	copy of the confiscation report. 19
1124	1124	(ii) If the party refuses to sign the confiscation 20
1125	1125	report, the confiscation report shall be signed by one (1) additional law 21
1126	1126	enforcement officer, stating that the party refused to sign the confiscation 22
1127	1127	report. 23
1128	1128	(C) The original confiscation report shall be: 24
1129	1129	(i) Filed with the seizing law enforcement agency 25
1130	1130	within forty-eight (48) hours after the seizure; and 26
1131	1131	(ii) Maintained in a separate file. 27
1132	1132	(D) One (1) copy of the confiscation report shall be 28
1133	1133	retained by the seizing law enforcement officer. 29
1134	1134	(3) The confiscation report shall contain the following 30
1135	1135	information: 31
1136	1136	(A) A detailed description of the property seized 32
1137	1137	including serial or model numbers and odometer or hour reading of vehicles or 33
1138	1138	equipment; 34
1139	1139	(B) The date of seizure; 35
1140	1140	(C) The name and address of the party from whom the 36 SB455
1141	1141
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1143	1143	property was seized; 1
1144	1144	(D) The reason for the seizure; 2
1145	1145	(E) The location where the property will be held; 3
1146	1146	(F) The seizing law enforcement officer's name; and 4
1147	1147	(G) A signed statement by the seizing law enforcement 5
1148	1148	officer stating that the confiscation report is true and complete. 6
1149	1149	(4) Within three (3) business days after receiving the 7
1150	1150	confiscation report, the seizing law enforcement agency shall forward a copy 8
1151	1151	of the confiscation report to the prosecuting attorney for the district where 9
1152	1152	the property was seized and to the director. 10
1153	1153	(5)(A) Arkansas Legislative Audit shall notify the director and 11
1154	1154	a circuit court in the county of a law enforcement agency, prosecuting 12
1155	1155	attorney, or other public entity that the law enforcement agency, prosecuting 13
1156	1156	attorney, or public entity is ineligible to receive forfeited funds, 14
1157	1157	forfeited property, or grants from the council, if Arkansas Legislative Audit 15
1158	1158	determines by its own investigation or upon written notice from the director 16
1159	1159	that: 17
1160	1160	(i) The law enforcement agency failed to complete 18
1161	1161	and file the confiscation reports as required by this section; 19
1162	1162	(ii) The law enforcement agency, prosecuting 20
1163	1163	attorney, or public entity has not properly accounted for the seized 21
1164	1164	property; or 22
1165	1165	(iii) The prosecuting attorney has failed to comply 23
1166	1166	with the notification requirement set forth in subdivision (m)(2) of this 24
1167	1167	section. 25
1168	1168	(B) After the notice, the circuit court shall not issue an 26
1169	1169	order distributing seized property to that law enforcement agency, 27
1170	1170	prosecuting attorney, or public entity, nor shall a grant be awarded by the 28
1171	1171	council to that law enforcement agency, prosecuting attorney, or public 29
1172	1172	entity until: 30
1173	1173	(i) The appropriate officials of the law enforcement 31
1174	1174	agency, prosecuting attorney, or public entity have appeared before the 32
1175	1175	Legislative Joint Auditing Committee; and 33
1176	1176	(ii) The Legislative Joint Auditing Committee has 34
1177	1177	adopted a motion authorizing subsequent transfers of forfeited property to 35
1178	1178	the law enforcement agency, prosecuting attorney, or public entity. 36 SB455
1179	1179
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1181	1181	(C)(i) If a law enforcement agency, prosecuting attorney, 1
1182	1182	or other public entity is ineligible to receive forfeited property, the 2
1183	1183	circuit court shall order money that would have been distributed to that law 3
1184	1184	enforcement agency, prosecuting attorney, or public entity to be transmitted 4
1185	1185	to the Treasurer of State for deposit into the Special State Assets 5
1186	1186	Forfeiture Fund. 6
1187	1187	(ii) If the property is not cash, the circuit court 7
1188	1188	shall order the property converted to cash under this section and the 8
1189	1189	proceeds transmitted to the Treasurer of State for deposit into the Special 9
1190	1190	State Assets Forfeiture Fund. 10
1191	1191	(D) Moneys deposited into the Special State Assets 11
1192	1192	Forfeiture Fund are not subject to recovery or retrieval by an ineligible law 12
1193	1193	enforcement agency, prosecuting attorney, or other public entity. 13
1194	1194	(6) The director shall establish by rule a standardized 14
1195	1195	confiscation report form to be used by all law enforcement agencies, with 15
1196	1196	specific instructions and guidelines concerning the nature and dollar value 16
1197	1197	of all property, including firearms, to be included in the confiscation 17
1198	1198	report and forwarded to the office of the local prosecuting attorney and the 18
1199	1199	director under this subsection. 19
1200	1200	(k)(1)(A) The prosecuting attorney shall initiate forfeiture 20
1201	1201	proceedings by filing a complaint with the circuit clerk of the county where 21
1202	1202	the property was seized and by serving the complaint on all known owners and 22
1203	1203	interest holders of the seized property in accordance with the Arkansas Rules 23
1204	1204	of Civil Procedure. 24
1205	1205	(B) The complaint may be based on in rem or in personam 25
1206	1206	jurisdiction but shall not be filed to avoid the distribution requirements 26
1207	1207	set forth in subdivision (l)(1) of this section. 27
1208	1208	(C) The prosecuting attorney shall mail a copy of the 28
1209	1209	complaint to the director within five (5) calendar days after filing the 29
1210	1210	complaint. 30
1211	1211	(2)(A) The complaint shall include a copy of the confiscation 31
1212	1212	report and shall be filed within sixty (60) days after receiving a copy of 32
1213	1213	the confiscation report from the seizing law enforcement agency. 33
1214	1214	(B) In a case involving real property, the complaint shall 34
1215	1215	be filed within sixty (60) days of the defendant's conviction on the charge 35
1216	1216	giving rise to the forfeiture. 36 SB455
1217	1217
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1219	1219	(3)(A) The prosecuting attorney may file the complaint after the 1
1220	1220	expiration of the time only if the complaint is accompanied by a statement of 2
1221	1221	good cause for the late filing. 3
1222	1222	(B) However, the complaint shall not be filed more than 4
1223	1223	one hundred twenty (120) days after either the date of the seizure or, in a 5
1224	1224	case involving real property, the date of the defendant's conviction. 6
1225	1225	(C)(i) If the circuit court determines that good cause has 7
1226	1226	not been established, the circuit court shall order that the seized property 8
1227	1227	be returned to the owner or interest holder. 9
1228	1228	(ii) In addition, items seized but not subject to 10
1229	1229	forfeiture under this section or subject to disposition under law or the 11
1230	1230	Arkansas Rules of Criminal Procedure may be ordered returned to the owner or 12
1231	1231	interest holder. 13
1232	1232	(iii) If the owner or interest holder cannot be 14
1233	1233	determined, the court may order disposition of the property. 15
1234	1234	(4) Within the time set forth in the Arkansas Rules of Civil 16
1235	1235	Procedure, the owner or interest holder of the seized property shall file 17
1236	1236	with the circuit clerk a verified answer to the complaint that shall include: 18
1237	1237	(A) A statement describing the seized property and the 19
1238	1238	owner's interest or interest holder's interest in the seized property with 20
1239	1239	supporting documents to establish the owner's interest or interest holder's 21
1240	1240	interest; 22
1241	1241	(B) A certification by the owner or interest holder 23
1242	1242	stating that he or she has read the document and that it has not been filed 24
1243	1243	for an improper purpose; 25
1244	1244	(C) A statement setting forth any defense to forfeiture; 26
1245	1245	and 27
1246	1246	(D) The address at which the owner or interest holder will 28
1247	1247	accept mail. 29
1248	1248	(5)(A) If the owner or interest holder fails to file an answer, 30
1249	1249	the prosecuting attorney may move for default judgment under the Arkansas 31
1250	1250	Rules of Civil Procedure. 32
1251	1251	(B)(i) If a timely answer has been filed, the prosecuting 33
1252	1252	attorney has the burden of proving by a preponderance of the evidence that 34
1253	1253	the seized property should be forfeited. 35
1254	1254	(ii) After the prosecuting attorney has presented 36 SB455
1255	1255
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1257	1257	proof, an owner or interest holder of the property seized is allowed to 1
1258	1258	present evidence showing why the seized property should not be forfeited. 2
1259	1259	(iii) If the circuit court determines that grounds 3
1260	1260	for forfeiting the seized property exist and that a defense to forfeiture has 4
1261	1261	not been established by the owner or interest holder, the circuit court shall 5
1262	1262	enter an order under this section. However, if the circuit court determines 6
1263	1263	either that the prosecuting attorney has failed to establish that grounds for 7
1264	1264	forfeiting the seized property exist or that the owner or interest holder has 8
1265	1265	established a defense to forfeiture, the court shall order that the seized 9
1266	1266	property be immediately returned to the owner or interest holder. 10
1267	1267	(l)(1) If the circuit court having jurisdiction over the seized 11
1268	1268	property finds upon a hearing by a preponderance of the evidence that grounds 12
1269	1269	for a forfeiture exist under this subchapter, the circuit court shall enter 13
1270	1270	an order: 14
1271	1271	(A) To permit the law enforcement agency or prosecuting 15
1272	1272	attorney to retain the seized property for law enforcement or prosecutorial 16
1273	1273	purposes, subject to the following provisions: 17
1274	1274	(i)(a) Seized property may not be retained for 18
1275	1275	official use for more than three (3) years, unless the circuit court finds 19
1276	1276	that the seized property has been used for law enforcement or prosecutorial 20
1277	1277	purposes and authorizes continued use for those purposes on an annual basis. 21
1278	1278	(b) At the end of the retention period, the 22
1279	1279	seized property shall be sold and eighty percent (80%) of the proceeds shall 23
1280	1280	be deposited into the tobacco control fund of the retaining law enforcement 24
1281	1281	agency or prosecuting attorney, and twenty percent (20%) of the proceeds 25
1282	1282	shall be deposited into the State Treasury as special revenues to be credited 26
1283	1283	to the Special State Assets Forfeiture Fund. 27
1284	1284	(c) The retaining law enforcement agency or 28
1285	1285	prosecuting attorney may sell the retained seized property during the time 29
1286	1286	allowed for retention. However, the proceeds of the sale shall be distributed 30
1287	1287	as set forth in subdivision (l)(1)(A)(i)(b) of this section; 31
1288	1288	(ii) If the circuit court determines that retained 32
1289	1289	seized property has been used for personal use or by non -law enforcement 33
1290	1290	personnel for non-law enforcement purposes, the circuit court shall order the 34
1291	1291	seized property to be sold under § 5 -5-101(e) and (f), and the proceeds shall 35
1292	1292	be deposited into the State Treasury as special revenues to be credited to 36 SB455
1293	1293
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1295	1295	the Special State Assets Forfeiture Fund; 1
1296	1296	(iii)(a) A law enforcement agency may use 2
1297	1297	forfeited property or money if the circuit court's order specifies that the 3
1298	1298	forfeited property or money is forfeited to the prosecuting attorney, 4
1299	1299	sheriff, chief of police, Division of Arkansas State Police, director, or 5
1300	1300	Arkansas Highway Police Division of the Arkansas Department of 6
1301	1301	Transportation. 7
1302	1302	(b) After the order, the prosecuting attorney, 8
1303	1303	sheriff, chief of police, Division of Arkansas State Police, director, or 9
1304	1304	Arkansas Highway Police Division of the Arkansas Department of Transportation 10
1305	1305	shall maintain an inventory of the forfeited property or money, be 11
1306	1306	accountable for the forfeited property or money, and be subject to 12
1307	1307	subdivision (j)(5) of this section with respect to the forfeited property or 13
1308	1308	money; 14
1309	1309	(iv)(a) An aircraft is forfeited to the office 15
1310	1310	of the director and may be used only for tobacco, vapor product, alternative 16
1311	1311	nicotine product, or e -liquid product smuggling interdiction efforts within 17
1312	1312	the discretion of the director. 18
1313	1313	(b) However, if the director determines that 19
1314	1314	the aircraft should be sold, the proceeds of the sale shall be distributed as 20
1315	1315	set forth in subdivision (l)(1)(A)(i)(b) of this section; 21
1316	1316	(v) A firearm not retained for official use shall be 22
1317	1317	disposed of in accordance with state and federal law; and 23
1318	1318	(vi) A tobacco product, vapor product, alternative 24
1319	1319	nicotine product, or e -liquid product shall be destroyed pursuant to a court 25
1320	1320	order; 26
1321	1321	(B)(i) To sell seized property that is not required by law 27
1322	1322	to be destroyed and that is not harmful to the public. 28
1323	1323	(ii) Seized property described in subdivision 29
1324	1324	(l)(1)(B)(i) of this section shall be sold at a public sale by the retaining 30
1325	1325	law enforcement agency or prosecuting attorney under § 5 -5-101(e) and (f); or 31
1326	1326	(C) To transfer a motor vehicle to a school district for 32
1327	1327	use in a driver education course. 33
1328	1328	(2) Disposition of forfeited property under this subsection is 34
1329	1329	subject to the need to retain the forfeited property as evidence in any 35
1330	1330	related proceeding. 36 SB455
1331	1331
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1333	1333	(3) Within three (3) business days after the entry of the order, 1
1334	1334	the circuit clerk shall forward to the director copies of the confiscation 2
1335	1335	report, the circuit court's order, and other documentation detailing the 3
1336	1336	disposition of the seized property. 4
1337	1337	(m)(1)(A) Subject to subdivision (j)(5) of this section, the proceeds 5
1338	1338	of sales conducted under this section and moneys forfeited or obtained by 6
1339	1339	judgment or settlement under this subchapter shall be deposited and 7
1340	1340	distributed in the manner provided in this subsection. 8
1341	1341	(B) Moneys received from a federal forfeiture for a 9
1342	1342	violation of this subchapter shall be deposited and distributed under this 10
1343	1343	section. 11
1344	1344	(2)(A) The proceeds of a sale and moneys forfeited or obtained 12
1345	1345	by judgment or settlement under this subchapter shall be deposited into the 13
1346	1346	asset forfeiture fund of the prosecuting attorney and is subject to the 14
1347	1347	following provisions: 15
1348	1348	(i) If, during a calendar year, the aggregate amount 16
1349	1349	of moneys deposited into the asset forfeiture fund exceeds twenty thousand 17
1350	1350	dollars ($20,000) per county, the prosecuting attorney, within fourteen (14) 18
1351	1351	days after that time, shall notify the circuit judges in the judicial 19
1352	1352	district and the director; 20
1353	1353	(ii) Subsequent to the notification set forth in this 21
1354	1354	section, twenty percent (20%) of the proceeds of an additional sale and 22
1355	1355	additional moneys forfeited or obtained by judgment or settlement under this 23
1356	1356	subchapter in the same calendar year shall be deposited into the State 24
1357	1357	Treasury as special revenues to be credited to the Special State Assets 25
1358	1358	Forfeiture Fund, and the remainder shall be deposited into the asset 26
1359	1359	forfeiture fund of the prosecuting attorney; 27
1360	1360	(iii) Failure by the prosecuting attorney to comply 28
1361	1361	with the notification requirement set forth in this section renders the 29
1362	1362	prosecuting attorney and an entity eligible to receive forfeited moneys or 30
1363	1363	property from the prosecuting attorney ineligible to receive forfeited moneys 31
1364	1364	or property, except as provided in this section; and 32
1365	1365	(iv) Twenty percent (20%) of moneys in excess of 33
1366	1366	twenty thousand dollars ($20,000) that have been retained but not reported as 34
1367	1367	required by this section are subject to recovery for deposit into the Special 35
1368	1368	State Assets Forfeiture Fund. 36 SB455
1369	1369
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1371	1371	(B) The prosecuting attorney shall administer expenditures 1
1372	1372	from the asset forfeiture fund, which is subject to audit by Arkansas 2
1373	1373	Legislative Audit. Moneys distributed from the asset forfeiture fund shall be 3
1374	1374	used only for law enforcement and prosecutorial purposes. Moneys in the asset 4
1375	1375	forfeiture fund shall be distributed in the following order: 5
1376	1376	(i) For the satisfaction of a bona fide security 6
1377	1377	interest or lien; 7
1378	1378	(ii) For payment of a proper expense of the 8
1379	1379	proceeding for forfeiture and sale, including expenses of seizure, 9
1380	1380	maintenance of custody, advertising, and court costs; 10
1381	1381	(iii) Any balance under three hundred fifty thousand 11
1382	1382	dollars ($350,000) shall be distributed proportionally so as to reflect 12
1383	1383	generally the contribution of the appropriate local or state law enforcement 13
1384	1384	or prosecutorial agency's participation in any activity that led to the 14
1385	1385	seizure or forfeiture of the property or deposit of moneys under this 15
1386	1386	subchapter; and 16
1387	1387	(iv) Any balance over three hundred fifty thousand 17
1388	1388	dollars ($350,000) shall be forwarded to the director to be transferred to 18
1389	1389	the State Treasury for deposit into the Special State Assets Forfeiture Fund 19
1390	1390	for distribution under this section. 20
1391	1391	(C)(i) For a forfeiture in an amount greater than three 21
1392	1392	hundred fifty thousand dollars ($350,000) from which expenses are paid for a 22
1393	1393	proceeding for forfeiture and sale under this section, an itemized accounting 23
1394	1394	of the expenses shall be delivered to the director within ten (10) calendar 24
1395	1395	days after the distribution of the funds. 25
1396	1396	(ii) The itemized accounting shall include the 26
1397	1397	expenses paid, to whom paid, and for what purposes the expenses were paid. 27
1398	1398	(3)(A) Moneys received by a prosecuting attorney or law 28
1399	1399	enforcement agency from a federal forfeiture for a violation of this 29
1400	1400	subchapter shall be deposited and maintained in a separate account. 30
1401	1401	(B) However, a balance over three hundred fifty thousand 31
1402	1402	dollars ($350,000) shall be distributed as required under this section. 32
1403	1403	(4) Other moneys shall not be maintained in the account except 33
1404	1404	for interest income generated by the account. 34
1405	1405	(5) Moneys in the account shall only be used for law enforcement 35
1406	1406	and prosecutorial purposes consistent with governing federal law. 36 SB455
1407	1407
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1409	1409	(6) The account is subject to audit by Arkansas Legislative 1
1410	1410	Audit. 2
1411	1411	(7) A balance over three hundred fifty thousand dollars 3
1412	1412	($350,000) shall be transferred to the State Treasury for deposit into the 4
1413	1413	Special State Assets Forfeiture Fund in which it shall be maintained 5
1414	1414	separately and distributed consistently with governing federal law and upon 6
1415	1415	the advice of the director. 7
1416	1416	(n) In personam jurisdiction may be based on a person's presence in 8
1417	1417	the state or on his or her conduct in the state, as set out in § 16 -4-101(C), 9
1418	1418	and is subject to the following additional provisions: 10
1419	1419	(1) A temporary restraining order under this section may be 11
1420	1420	entered ex parte on application of the state upon a showing that: 12
1421	1421	(A) There is probable cause to believe that the property 13
1422	1422	with respect to which the order is sought is subject to forfeiture under this 14
1423	1423	section; and 15
1424	1424	(B) Notice of the action would jeopardize the availability 16
1425	1425	of the property for forfeiture; 17
1426	1426	(2)(A) Notice of the entry of a temporary restraining order and 18
1427	1427	an opportunity for hearing shall be afforded to a person known to have an 19
1428	1428	interest in the property. 20
1429	1429	(B) The hearing shall be held at the earliest possible 21
1430	1430	date consistent with Rule 65 of the Arkansas Rules of Civil Procedure and is 22
1431	1431	limited to the issues of whether: 23
1432	1432	(i) There is a probability that the state will 24
1433	1433	prevail on the issue of forfeiture and that failure to enter the temporary 25
1434	1434	restraining order will result in the property's being destroyed, conveyed, 26
1435	1435	alienated, encumbered, disposed of, received, removed from the jurisdiction 27
1436	1436	of the circuit court, concealed, or otherwise made unavailable for 28
1437	1437	forfeiture; and 29
1438	1438	(ii) The need to preserve the availability of 30
1439	1439	property through the entry of the requested temporary restraining order 31
1440	1440	outweighs the hardship on an owner or interest holder against whom the 32
1441	1441	temporary restraining order is to be entered; 33
1442	1442	(3) The state has the burden of proof by a preponderance of the 34
1443	1443	evidence to show that the defendant's property is subject to forfeiture; 35
1444	1444	(4)(A) On a determination of liability of a person for conduct 36 SB455
1445	1445
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1447	1447	giving rise to forfeiture under this section, the circuit court shall enter a 1
1448	1448	judgment of forfeiture of the property subject to forfeiture as alleged in 2
1449	1449	the complaint and may authorize the prosecuting attorney or a law enforcement 3
1450	1450	officer to seize property subject to forfeiture under this section not 4
1451	1451	previously seized or not then under seizure. 5
1452	1452	(B) The order of forfeiture shall be consistent with 6
1453	1453	subsection (l) of this section. 7
1454	1454	(C) In connection with the judgment, on application of the 8
1455	1455	state, the circuit court may enter an appropriate order to protect the 9
1456	1456	interest of the state in property ordered forfeited; and 10
1457	1457	(5) Subsequent to the finding of liability and order of 11
1458	1458	forfeiture, the following procedures apply: 12
1459	1459	(A) The attorney for the state shall give notice of 13
1460	1460	pending forfeiture in the manner provided in Rule 4 of the Arkansas Rules of 14
1461	1461	Civil Procedure to an owner or interest holder who has not previously been 15
1462	1462	given notice; 16
1463	1463	(B) An owner of or interest holder in property that has 17
1464	1464	been ordered forfeited and whose claim is not precluded may file a claim 18
1465	1465	within thirty (30) days after initial notice of pending forfeiture or after 19
1466	1466	notice under Rule 4 of the Arkansas Rules of Civil Procedure, whichever is 20
1467	1467	earlier; and 21
1468	1468	(C) The circuit court may amend the in personam order of 22
1469	1469	forfeiture if the circuit court determines that a claimant has established 23
1470	1470	that he or she has an interest in the property and that the interest is 24
1471	1471	exempt under this section. 25
1472	1472	(o) The circuit court shall order the forfeiture of other property of 26
1473	1473	a claimant or defendant up to the value of the claimant's or defendant's 27
1474	1474	property found by the circuit court to be subject to forfeiture under this 28
1475	1475	section if any of the forfeitable property had remained under the control or 29
1476	1476	custody of the claimant or defendant and: 30
1477	1477	(1) Cannot be located; 31
1478	1478	(2) Was transferred or conveyed to, sold to, or deposited with a 32
1479	1479	third party; 33
1480	1480	(3) Is beyond the jurisdiction of the circuit court; 34
1481	1481	(4) Was substantially diminished in value while not in the 35
1482	1482	actual physical custody of the seizing law enforcement agency; 36 SB455
1483	1483
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1485	1485	(5) Was commingled with other property that cannot be divided 1
1486	1486	without difficulty; or 2
1487	1487	(6) Is subject to interest exempted from forfeiture under this 3
1488	1488	subchapter. 4
1489	1489	(p)(1) There is created on the books of law enforcement agencies and 5
1490	1490	prosecuting attorneys a tobacco control fund. 6
1491	1491	(2) The fund shall consist of moneys obtained under this section 7
1492	1492	and other revenue as may be provided by law or ordinance. 8
1493	1493	(3) Moneys in the tobacco control fund shall be appropriated on 9
1494	1494	a continuing basis and are not subject to the Revenue Stabilization Law, § 10
1495	1495	19-5-101 et seq. 11
1496	1496	(4)(A) The fund shall be used for law enforcement and 12
1497	1497	prosecutorial purposes. 13
1498	1498	(B) Each prosecuting attorney shall submit to the Director 14
1499	1499	of Arkansas Tobacco Control on or before June 30 of each year a report 15
1500	1500	detailing moneys received and expenditures made from the tobacco control fund 16
1501	1501	during the preceding twelve -month period. 17
1502	1502	(5) The law enforcement agencies and prosecuting attorneys shall 18
1503	1503	submit to the director on or before June 30 of each year a report detailing 19
1504	1504	any moneys received and expenditures made from the tobacco control fund 20
1505	1505	during the preceding twelve -month period. 21
1506	1506	(6) Moneys from the tobacco control fund may not supplant other 22
1507	1507	local, state, or federal funds. 23
1508	1508	(7) The tobacco control fund is subject to audit by Arkansas 24
1509	1509	Legislative Audit. 25
1510	1510	26
1511	1511	SECTION 10. Arkansas Code § 26 -57-255(g)(3), effective until the 27
1512	1512	contingency in Acts 2023, No. 629, § 17, is met, concerning the powers and 28
1513	1513	duties of the Arkansas Tobacco Control Board, is amended to read as follows: 29
1514	1514	(3)(A) Conduct public hearings when appropriate regarding a 30
1515	1515	permit authorized under this subchapter or in violation of this subchapter, 31
1516	1516	the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-501 32
1517	1517	et seq., or any other federal, state, or local statute, ordinance, rule, or 33
1518	1518	regulation concerning the sale of tobacco products, vapor products, 34
1519	1519	alternative nicotine products, or e -liquid products to minors , or the rules 35
1520	1520	promulgated by Arkansas Tobacco Control. 36 SB455
1521	1521
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1523	1523	(B) After notice and hearing held in accordance with the 1
1524	1524	Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 2
1525	1525	finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-3
1526	1526	701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 4
1527	1527	Tobacco Control, the board may suspend or revoke any or all permits issued by 5
1528	1528	the director to any person. 6
1529	1529	(C) The board may levy a civil penalty in an amount not to 7
1530	1530	exceed five thousand dollars ($5,000) one thousand dollars ($1,000) for each 8
1531	1531	violation against a person found to be in violation of this subchapter, the 9
1532	1532	Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 20-56-501 et seq., or the 10
1533	1533	rules promulgated by Arkansas Tobacco Control. 11
1534	1534	(D) Each day of a violation is a separate violation. 12
1535	1535	(E) A civil penalty under subdivision (g)(3)(C) of this 13
1536	1536	section is in addition to any penalties levied by the board under § 26 -57-14
1537	1537	248. 15
1538	1538	(F) In conducting a hearing under this subdivision (g)(3), 16
1539	1539	the board may examine or cause to be examined under oath any witness and the 17
1540	1540	books and records of a permitted person or other person; 18
1541	1541	19
1542	1542	SECTION 11. Arkansas Code § 26 -57-255, effective if the contingency in 20
1543	1543	Acts 2023, No. 629, § 17, is met, is repealed. 21
1544	1544	26-57-255. Arkansas Tobacco Control Board — Creation — Definition.22
1545	1545	(a) There is created the Arkansas Tobacco Control Board to consist of 23
1546	1546	the following eight (8) members appointed by the Governor: 24
1547	1547	(1) Two (2) members of the board shall be wholesalers of tobacco 25
1548	1548	products, vapor products, alternative nicotine products, or e -liquid 26
1549	1549	products; 27
1550	1550	(2) Two (2) members of the board shall be retailers of tobacco 28
1551	1551	products, vapor products, alternative nicotine products, or e -liquid 29
1552	1552	products; and 30
1553	1553	(3) Four (4) members of the board shall be members of the public 31
1554	1554	at large who are not public employees or officials, at least one (1) of whom 32
1555	1555	shall be an African-American, and two (2) of whom shall be appointed by the 33
1556	1556	Governor after consulting the Arkansas Medical Society, Inc. and subject to 34
1557	1557	confirmation by the Senate. 35
1558	1558	(b) The Governor shall designate which member of the board shall act 36 SB455
1559	1559
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1561	1561	as chair and that person shall serve as chair for two (2) years unless his or 1
1562	1562	her membership on the board ceases prior to the end of the two -year period. 2
1563	1563	(c)(1) All members of the board shall be residents of the State of 3
1564	1564	Arkansas and confirmed by the Senate. 4
1565	1565	(2) The term of office shall be five (5) years. 5
1566	1566	(d)(1) A minimum of five (5) members is required for a quorum. 6
1567	1567	(2)(A) All action by the board shall be by a majority vote of 7
1568	1568	the board members present at the regular or special meeting, and the board 8
1569	1569	may take no official action in connection with a matter except at a regular 9
1570	1570	or special meeting. 10
1571	1571	(B) In the event of a tie vote of the members of the 11
1572	1572	board, the Director of Arkansas Tobacco Control may cast the deciding vote. 12
1573	1573	(e) A person who is not a citizen of the United States and who has not 13
1574	1574	resided in the State of Arkansas for at least two (2) consecutive years 14
1575	1575	immediately preceding the date of appointment shall not be appointed to the 15
1576	1576	board. 16
1577	1577	(f) Each member of the board and the director shall take and subscribe 17
1578	1578	to an oath that he or she will support and enforce this subchapter, the 18
1579	1579	tobacco control laws of this state, the Arkansas Constitution, and the United 19
1580	1580	States Constitution. 20
1581	1581	(g) The board shall: 21
1582	1582	(1) Act as the adjudicatory body for Arkansas Tobacco Control; 22
1583	1583	(2) Have responsibility for approving the issuance, suspension, 23
1584	1584	and revocation of the permits enumerated in § 26 -57-219; 24
1585	1585	(3)(A) Conduct public hearings when appropriate regarding a 25
1586	1586	permit authorized under this subchapter or in violation of this subchapter, 26
1587	1587	the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-401 27
1588	1588	et seq., or any other federal, state, or local statute, ordinance, rule, or 28
1589	1589	regulation concerning the sale of tobacco products, vapor products, 29
1590	1590	alternative nicotine products, e -liquid products, or hemp -derived products to 30
1591	1591	minors or the rules promulgated by Arkansas Tobacco Control. 31
1592	1592	(B) After notice and hearing held in accordance with the 32
1593	1593	Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 33
1594	1594	finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-34
1595	1595	701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 35
1596	1596	Tobacco Control, the board may suspend or revoke any or all permits issued by 36 SB455
1597	1597
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1599	1599	the director to any person. 1
1600	1600	(C) The board may levy a civil penalty in an amount not to 2
1601	1601	exceed five thousand dollars ($5,000) for each violation against a person 3
1602	1602	found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 4
1603	1603	§ 4-75-701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 5
1604	1604	Tobacco Control. 6
1605	1605	(D) Each day of a violation is a separate violation. 7
1606	1606	(E) A civil penalty under subdivision (g)(3)(C) of this 8
1607	1607	section is in addition to any penalties levied by the board under § 26 -57-9
1608	1608	248. 10
1609	1609	(F) In conducting a hearing under this subdivision (g)(3), 11
1610	1610	the board may examine or cause to be examined under oath any witness and the 12
1611	1611	books and records of a permitted person or other person; 13
1612	1612	(4) When requested by the written petition of at least three (3) 14
1613	1613	interested parties, conduct public hearings to receive testimony regarding 15
1614	1614	the facts relevant to the issuance of a permit under this subchapter; and 16
1615	1615	(5)(A) Not have authority in criminal prosecutions or the 17
1616	1616	assessment or collection of any taxes. 18
1617	1617	(B) However, the board shall refuse to approve the 19
1618	1618	issuance or renewal of a permit issued by the director for the failure to pay 20
1619	1619	taxes or fees imposed on tobacco products or any permit fees imposed under 21
1620	1620	this subchapter or any other state or local taxes. 22
1621	1621	(h)(1) The board may assess penalties for a violation of § 5 -27-227 23
1622	1622	according to the following schedule: 24
1623	1623	(A) For a first violation within a forty -eight-month 25
1624	1624	period, a civil penalty not to exceed two hundred fifty dollars ($250); 26
1625	1625	(B) For a second violation within a forty -eight-month 27
1626	1626	period, a civil penalty not to exceed five hundred dollars ($500) and 28
1627	1627	suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 29
1628	1628	two (2) days; 30
1629	1629	(C) For a third violation within a forty -eight-month 31
1630	1630	period, a civil penalty not to exceed one thousand dollars ($1,000) and 32
1631	1631	suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 33
1632	1632	seven (7) days; 34
1633	1633	(D) For a fourth or subsequent violation within a forty -35
1634	1634	eight-month period, a civil penalty not to exceed two thousand dollars 36 SB455
1635	1635
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1637	1637	($2,000) and suspension of the permit enumerated in § 26 -57-219 for a period 1
1638	1638	not to exceed fourteen (14) days; and 2
1639	1639	(E) For a fifth or subsequent violation within a forty -3
1640	1640	eight-month period, in addition to the other penalties provided under this 4
1641	1641	subsection, the permit enumerated in § 26 -57-219 may be revoked. 5
1642	1642	(2)(A) A penalty under this subsection shall not be imposed on a 6
1643	1643	retailer or an agent or employee of a retailer who can establish an 7
1644	1644	affirmative defense that before the date of the violation the retailer or 8
1645	1645	agent or employee of the retailer furnishing the tobacco products, vapor 9
1646	1646	products, alternative nicotine products, e -liquid products, or cigarette 10
1647	1647	papers reasonably relied on proof of age that identified the person receiving 11
1648	1648	the tobacco products, vapor products, alternative nicotine products, e -liquid 12
1649	1649	products, or cigarette papers as not being a minor. 13
1650	1650	(B) As used in this subsection, “proof of age” means valid 14
1651	1651	documentation issued by a governmental agency containing the person's 15
1652	1652	photograph, date of birth, and an expiration date. 16
1653	1653	(3)(A) For a corporation or business with more than one (1) 17
1654	1654	retail location, to determine the number of accumulated violations for 18
1655	1655	purposes of the penalty schedule stated in this subsection, violations of § 19
1656	1656	5-27-227 by one (1) retail location shall not be accumulated against other 20
1657	1657	retail locations of that same corporation or business. 21
1658	1658	(B) For a retail location, for purposes of the penalty 22
1659	1659	schedule stated in this subsection, violations accumulated and assessed 23
1660	1660	against a prior owner of the retail location shall not be accumulated against 24
1661	1661	a new owner of the same retail location unless approved by the board. 25
1662	1662	26
1663	1663	SECTION 12. Arkansas Code § 26 -57-256(a)(2) and (3), effective until 27
1664	1664	the contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 28
1665	1665	Arkansas Tobacco Control, are amended to read as follows: 29
1666	1666	(2)(A) Receive applications for and issue, refuse, suspend, and 30
1667	1667	revoke permits listed in § 26 -57-219 and § 20-56-501 et seq. 31
1668	1668	(B) Arkansas Tobacco Control shall refuse to issue or 32
1669	1669	renew any permits issued by the Director of Arkansas Tobacco Control for the 33
1670	1670	failure to pay: 34
1671	1671	(i) Any applicable taxes or fees imposed on tobacco 35
1672	1672	products,; 36 SB455
1673	1673
1674	1674	45 03/13/2025 1:38:51 PM JMB314
1675	1675	(ii) Permit permit fees imposed under this 1
1676	1676	subchapter and § 20-56-501 et seq.;, or 2
1677	1677	(iii) Any any other state or local taxes; 3
1678	1678	(3) Prescribe forms of applications for permits under this 4
1679	1679	subchapter and § 20-56-501 et seq; 5
1680	1680	6
1681	1681	SECTION 13. Arkansas Code § 26 -57-256, effective if the contingency in 7
1682	1682	Acts 2023, No. 629, § 17, is met, is repealed. 8
1683	1683	26-57-256. Arkansas Tobacco Control — Powers. 9
1684	1684	(a) Arkansas Tobacco Control shall: 10
1685	1685	(1) Promulgate rules for the proper enforcement and 11
1686	1686	implementation of this subchapter and the Unfair Cigarette Sales Act, § 4 -75-12
1687	1687	701 et seq.; 13
1688	1688	(2)(A) Receive applications for and issue, refuse, suspend, and 14
1689	1689	revoke permits listed in § 26 -57-219 and § 20-56-401 et seq. 15
1690	1690	(B) Arkansas Tobacco Control shall refuse to issue or 16
1691	1691	renew any permits issued by the Director of Arkansas Tobacco Control for the 17
1692	1692	failure to pay: 18
1693	1693	(i) Any applicable taxes or fees imposed on tobacco 19
1694	1694	products; 20
1695	1695	(ii) Permit fees imposed under this subchapter or on 21
1696	1696	hemp-derived products under § 20 -56-401 et seq.; or 22
1697	1697	(iii) Other state or local taxes; 23
1698	1698	(3) Prescribe forms of applications for permits under this 24
1699	1699	subchapter and § 20-56-401 et seq.; 25
1700	1700	(4)(A) Cooperate with the Revenue Division of the Department of 26
1701	1701	Finance and Administration in the enforcement of the tax laws affecting the 27
1702	1702	sale of tobacco products in this state and in the enforcement of all other 28
1703	1703	state and local tax laws. 29
1704	1704	(B) To facilitate efforts to cooperate with the division 30
1705	1705	concerning the enforcement of all other state and local tax laws, Arkansas 31
1706	1706	Tobacco Control shall immediately require that the following additional 32
1707	1707	information be provided by all applicants for permit issuance or renewal: 33
1708	1708	(i) Federal tax identification numbers issued by the 34
1709	1709	Internal Revenue Service; 35
1710	1710	(ii) Social Security numbers; and 36 SB455
1711	1711
1712	1712	46 03/13/2025 1:38:51 PM JMB314
1713	1713	(iii) State sales tax account numbers assigned by the 1
1714	1714	Department of Finance and Administration, if applicable. 2
1715	1715	(C)(i) Each year Arkansas Tobacco Control shall provide a 3
1716	1716	list of all applicants for the issuance or renewal of all tobacco products, 4
1717	1717	vapor product, alternative nicotine product, or e -liquid product permits to 5
1718	1718	the Secretary of the Department of Finance and Administration. 6
1719	1719	(ii) This list shall contain the identifying 7
1720	1720	information required by subdivision (a)(4)(B) of this section as well as the 8
1721	1721	name of the permittee and the permittee's current business address; 9
1722	1722	(5)(A) Collect civil penalties assessed by the Arkansas Tobacco 10
1723	1723	Control Board under § 26 -57-255. 11
1724	1724	(B) Unless the civil penalty is paid within fifteen (15) 12
1725	1725	days following the date for an appeal from the order, the director shall have 13
1726	1726	the power to institute a civil action in the Pulaski County Circuit Court to 14
1727	1727	recover the civil penalties assessed; and 15
1728	1728	(6)(A) Provide notice to the retail location of an alleged 16
1729	1729	violation of § 5-27-227 within ten (10) days of the alleged violation. 17
1730	1730	(B) The notice required under subdivision (a)(6)(A) of 18
1731	1731	this section shall contain the date and time of the alleged violation. 19
1732	1732	(b) Any tobacco products, vapor products, alternative nicotine 20
1733	1733	products, e-liquid products, hemp -derived products as defined in § 20 -56-402, 21
1734	1734	or cigarette papers found in the possession of a minor may be confiscated and 22
1735	1735	destroyed. 23
1736	1736	(c) Except as otherwise provided by law, the penalties collected under 24
1737	1737	this section shall be deposited into the State Treasury. 25
1738	1738	26
1739	1739	SECTION 14. Arkansas Code § 26 -57-256(b), effective until the 27
1740	1740	contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 28
1741	1741	Arkansas Tobacco Control, is amended to read as follows: 29
1742	1742	(b) Any tobacco products, vapor products, alternative nicotine 30
1743	1743	products, e-liquid products, hemp products as defined in § 20 -56-501, or 31
1744	1744	cigarette papers found in the possession of a minor may be confiscated and 32
1745	1745	destroyed. 33
1746	1746	34
1747	1747	SECTION 15. Uncodified Section 17 of Acts 2023, No. 629, which 35
1748	1748	reflects changes to the references to "Sections 6 -13", "Sections 6-14", and 36 SB455
1749	1749
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1751	1751	"Sections 2-5" in Acts 2023, No. 629, §§ 16 and 17 made by the Arkansas Code 1
1752	1752	Revision Commission, is repealed. 2
1753	1753	SECTION 17. Contingent effective date. 3
1754	1754	Sections 6-14 [8-16] of this act shall become effective only upon the 4
1755	1755	certification of the Arkansas Attorney General that the State of Arkansas is 5
1756	1756	currently enjoined from enforcing Sections 2 -5 [2-7] of this act relating to 6
1757	1757	delta-8 tetrahydrocannabinol and delta -10 tetrahyrdocannabinol, but no 7
1758	1758	earlier than August 1, 2023. 8
1759	1759	9
1760	1760	10
1761	1761	11
1762	1762	12
1763	1763	13
1764	1764	14
1765	1765	15
1766	1766	16
1767	1767	17
1768	1768	18
1769	1769	19
1770	1770	20
1771	1771	21
1772	1772	22
1773	1773	23
1774	1774	24
1775	1775	25
1776	1776	26
1777	1777	27
1778	1778	28
1779	1779	29
1780	1780	30
1781	1781	31
1782	1782	32
1783	1783	33
1784	1784	34
1785	1785	35
1786	1786	36