Arkansas Senate Bill SB533 Draft / Bill

                    Stricken language would be deleted from and underlined language would be added to present law. 
*JMB498* 	03/20/2025 11:19:12 AM JMB498 
State of Arkansas     1 
95th General Assembly A Bill     2 
Regular Session, 2025  	SENATE BILL 533 3 
 4 
By: Senator Dees 5 
By: Representative Gazaway 6 
 7 
For An Act To Be Entitled 8 
AN ACT TO PROVIDE FOR THE REGULATION OF CONSUMABLE 9 
HEMP PRODUCTS BY THE ARKANSAS TOBACCO CONTROL BOARD; 10 
TO AMEND THE ARKANSAS LAW TO ALLOW THE REGULATION AND 11 
PURCHASE OF CONSUMABLE HEMP PRODUCTS; TO ESTABLISH A 12 
DIRECTORY FOR CONSUMABLE HEMP MANUFACTURERS; TO 13 
DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 14 
 15 
 16 
Subtitle 17 
TO PROVIDE FOR THE REGULATION OF 18 
CONSUMABLE HEMP PRODUCTS BY THE ARKANSAS 19 
TOBACCO CONTROL BOARD; TO AMEND THE 20 
ARKANSAS LAW TO ALLOW THE REGULATION AND 21 
PURCHASE OF CONSUMABLE HEMP PRODUCT; AND 22 
TO DECLARE AN EMERGENCY. 23 
 24 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25 
 26 
 SECTION 1.  Arkansas Code § 2 -15-503(5), concerning the definition of 27 
"industrial hemp" within the Arkansas Industrial Hemp Production Act, is 28 
amended to read as follows: 29 
 (5)  “Industrial hemp” means the plant Cannabis sativa and any part of 30 
the plant, including the seeds of the plant and all derivatives, extracts, 31 
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 32 
not, with a total the lesser of a delta-9 tetrahydrocannabinol concentration 33 
of no more than three -tenths of one percent (0.3%) of the hemp-derived 34 
cannabadiol on a dry weight basis , unless specifically controlled under the 35 
Uniform Controlled Substances Act, § 5 -64-101 et seq. for hemp or as 36    	SB533 
 
 	2 	03/20/2025 11:19:12 AM JMB498 
otherwise defined by 7 U.S.C. § 1639o, as existing on January 1, 2025	; 1 
 2 
 SECTION 2.  Arkansas Code § 5 -64-101(16)(B), concerning the exclusion 3 
from the definition of "marijuana" within the Uniform Controlled Substances 4 
Act, is amended to add an additional subdivision to read as follows: 5 
 (vii)  Consumable hemp product as defined under § 20 -6 
56-501 et seq.; 7 
 8 
 SECTION 3.  Arkansas Code § 5 -64-215(a)(2), concerning the substances 9 
in Schedule VI of the Uniform Controlled Substances Act, is amended to read 10 
as follows: 11 
 (2)  Tetrahydrocannabinols, unless the tetrahydrocannabinol is: 12 
 (A)  Contained in hemp -derived cannabidiol; 13 
 (B)  Not more than the lesser of three-tenths of one 14 
percent (0.3%) of delta-9 tetrahydrocannabinol in the hemp-derived 15 
cannabidiol concentration of more than three tenths of one percent (0.3%) on 16 
a dry weight basis for hemp or as otherwise defined by 7 U.S.C. § 1639o, as 17 
existing on January 1, 2025, as verified by a nationally accredited 18 
laboratory for quality, purity, and accuracy standards; and 19 
 (C)  Not approved by the United States Food and Drug 20 
Administration for marketing as a medication; 21 
 22 
 SECTION 4.  Arkansas Code § 5 -64-215(a)(5)(A)(i), concerning the 23 
substances in Schedule VI of the Uniform Controlled Substances Act, is 24 
amended to add an additional subdivision to read as follows: 25 
 (k)  An intoxicating hemp product as defined 26 
under § 20-56-501 et seq.; 27 
 28 
 SECTION 5.  Arkansas Code § 5 -64-215(d), concerning the substances in 29 
Schedule VI of the Uniform Controlled Substances Act, is amended to read as 30 
follows: 31 
 (d)  This section does not prohibit the continuous interstate 32 
transportation or shipment through Arkansas of the plant Cannabis sativa L., 33 
and any part of that plant, including the seeds thereof and all derivatives, 34 
extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether 35 
growing or not, with the lesser of a delta-9 tetrahydrocannabinol 36    	SB533 
 
 	3 	03/20/2025 11:19:12 AM JMB498 
concentration of not more than three -tenths of one percent (0.3%) on a dry 1 
weight basis, produced in accordance with or as otherwise defined in 7 U.S.C. 2 
§ 1639o et seq., as existing on January 1, 2025. 3 
 4 
 SECTION 6.  Arkansas Code § 19 -6-301(254), concerning the enumerated 5 
special revenues in this state, is amended to read as follows: 6 
 (254)  All permit and license fees received by Arkansas Tobacco 7 
Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 8 
seq., and § 20-56-501 et seq.; 9 
 10 
 SECTION 7.  Arkansas Code § 19 -6-831, effective until the contingency 11 
in Acts 2023, No. 629, § 17, is met, is amended to read as follows: 12 
 19-6-831.  Arkansas Tobacco Control Revenue Fund. 13 
 (a)  There is created on the books of the Treasurer of State, the 14 
Auditor of the State, and the Chief Fiscal Officer of the State a special 15 
revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 16 
 (b)(1)  All permit and license fees received by Arkansas Tobacco 17 
Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 18 
seq., and § 20-56-501 et seq. shall be deposited into the State Treasury as 19 
special revenues to the credit of the fund. 20 
 (2)  The fund also shall consist of any other revenues authorized 21 
by law. 22 
 (c)(1)  The fund shall be used for expenses incurred by Arkansas 23 
Tobacco Control in the organization, maintenance, operation, and merchant 24 
education and training with regard to enforcement of § 5 -27-227, the Arkansas 25 
Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-501 et seq., 26 
and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 27 
 (2)  Expenditures of moneys in the fund are subject to the 28 
General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 29 
Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 30 
laws. 31 
 (3)  The receipts and disbursements of Arkansas Tobacco Control 32 
shall be audited annually by Arkansas Legislative Audit. 33 
 34 
 SECTION 8.  Arkansas Code § 19 -6-831, effective if the contingency in 35 
Acts 2023, No. 629, § 17, is met, is repealed. 36    	SB533 
 
 	4 	03/20/2025 11:19:12 AM JMB498 
 19-6-831.  Arkansas Tobacco Control Revenue Fund. 1 
 (a)  There is created on the books of the Treasurer of State, the 2 
Auditor of the State, and the Chief Fiscal Officer of the State a special 3 
revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 4 
 (b)(1)  All permit and license fees received by Arkansas Tobacco 5 
Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 6 
seq., and § 20-56-401 et seq., shall be deposited into the State Treasury as 7 
special revenues to the credit of the fund. 8 
 (2)  The fund also shall consist of any other revenues authorized 9 
by law. 10 
 (c)(1)  The fund shall be used for expenses incurred by Arkansas 11 
Tobacco Control in the organization, maintenance, operation, and merchant 12 
education and training with regard to enforcement of § 5 -27-227, the Arkansas 13 
Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-401 et seq., 14 
and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 15 
 (2)  Expenditures of moneys in the fund are subject to the 16 
General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 17 
Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 18 
laws. 19 
 (3)  The receipts and disbursements of Arkansas Tobacco Control 20 
shall be audited annually by Arkansas Legislative Audit. 21 
 22 
 SECTION 9. Arkansas Code Title 20, Chapter 56, is amended to add an 23 
additional subchapter to read as follows: 24 
Subchapter 5 — Consumable Hemp Products 25 
 26 
 20-56-501.  Legislative intent. 27 
 It is the intent of the General Assembly that this subchapter shall: 28 
 (1)  Regulate the manufacture, production, distribution, and sale 29 
of consumable hemp products; 30 
 (2)  Prevent the manufacturing, production, distribution, 31 
marketing, sale, and use of intoxicating hemp products within Arkansas; and 32 
 (3)  Protect and promote the public health and welfare of the 33 
residents of this state. 34 
 35 
 20-56-502.  Definitions. 36    	SB533 
 
 	5 	03/20/2025 11:19:12 AM JMB498 
 As used in this subchapter: 1 
 (1)  “Annual” or “annually” means the fiscal year from July 1 2 
through the next June 30; 3 
 (2)  “Approved laboratory” means a laboratory that is accredited 4 
by the National Institute on Drug Abuse, the National Environmental 5 
Laboratory Accreditation Conference, the International Organization for 6 
Standardization, or similar accrediting entity as determined by Arkansas 7 
Tobacco Control and that has been approved by the Director of Arkansas 8 
Tobacco Control specifically for the testing of consumable hemp product; 9 
 (3)(A)  “Cannabis” means all parts of the plant of the genus 10 
cannabis, the flower, the seeds thereof, the resin extracted from any part of 11 
the plant and every compound, manufacture, salt, derivative, mixture or 12 
preparation of the plant, and its seeds or its resin, including whole plant 13 
extracts. 14 
 (B)  "Cannabis" does not include cannabis -derived drug 15 
products approved by the United States Food and Drug Administration under 16 
Section 505 of the Federal Food, Drug, and Cosmetic Act, as existing on 17 
January 1, 2025; 18 
 (4)  “Consumable hemp product” means a finished product that 19 
includes part of the hemp plant, including naturally derived cannabinoids, 20 
compounds, concentrates, extracts, isolates, or derivatives that is intended 21 
for human consumption and not marketed for intoxicating effect and is: 22 
 (A)  A cosmetic as defined by 21 U.S.C. § 321, as existing 23 
on January 1, 2025, that meets the federally defined tetrahydrocannabinol 24 
level; 25 
 (B)  Any product generally recognized as safe by the United 26 
States Food and Drug Administration under the Federal Food, Drug, and 27 
Cosmetic Act, 21 U.S.C. § 301 et seq., and the intended mode of consumption 28 
comports with generally recognized as safe recognition; or 29 
 (C)  A product that has no more than one milligram (1 mg) 30 
of total tetrahydrocannabinol per container and minimum ratio of cannabidiol 31 
to tetrahydrocannabinol of greater than fifteen to one (15:1) and is: 32 
 (i)  A full spectrum hemp extract or cannabinoid hemp 33 
product containing multiple hemp -derived cannabinoids, terpenes, and other 34 
naturally occurring compounds, processed without the intentional complete 35 
removal of any compound and without the addition of isolated cannabinoids; or 36    	SB533 
 
 	6 	03/20/2025 11:19:12 AM JMB498 
 (ii)  A product primarily containing and marketed as 1 
cannabidiol, cannabichromene, cannabinol, cannabigerol, cannabicycol, 2 
cannabidivarin, cannabielsoin, cannabicitran, cannabicycol, cannabielsoin, or 3 
tetrahydrocannabivarin; 4 
 (5)  “Consumable hemp distributor” means a person that receives 5 
raw hemp, hemp floral material, extracts, distillates, isolates, or any 6 
extracted form of hemp as long as the extracted form of hemp is extracted 7 
from hemp for the manufacturing, distribution, or processing of any 8 
consumable hemp product including without limitation edibles, tinctures, 9 
smokables, vaporization devices, lubricants, salves, lotions, hemp floral 10 
material, concentrates, distillates, or liquids; 11 
 (6)(A)  “Consumable hemp manufacturer” means a person that 12 
manufacturers, fabricates, assembles, or processes a hemp -derived product, 13 
including without limitation federally licensed importers and federally 14 
licensed distributors that deal in consumable hemp products. 15 
 (B)  “Consumable hemp manufacturer” includes: 16 
 (i)  A sales entity affiliate of the manufacturer or 17 
any other entity representing the manufacturer with regard to the sale of 18 
consumable hemp products produced by the manufacturer or wholesalers or 19 
permitted retailers; and 20 
 (ii)  A person that mixes, compounds, extracts, 21 
infuses, blends, processes, repackages, or resizes consumable hemp products 22 
including the extraction of cannabinoids from hemp biomass. 23 
 (C)  “Consumable hemp manufacturer” does not include a 24 
person who engages in the agricultural production of hemp, such as growing, 25 
planting, and harvesting of raw hemp biomass regulated by the State Plant 26 
Board; 27 
 (7)  “Consumable hemp retailer” means a dealer licensed by the 28 
Arkansas Tobacco Control Board, other than a consumable hemp wholesaler, 29 
whose principal place of business is that of selling merchandise at retail, 30 
including online sales, and who sells consumable hemp products; 31 
 (8)  “Consumable hemp wholesaler” means a dealer licensed by the 32 
Arkansas Tobacco Control Board whose principal place of business is that of a 33 
wholesaler dealer, and who is known to the trade as such, that sells any 34 
consumable hemp products to licensed consumable hemp retailers only for the 35 
purpose of resale to consumers; 36    	SB533 
 
 	7 	03/20/2025 11:19:12 AM JMB498 
 (9)  “Consumer” means a member of the public at large; 1 
 (10)  “Consumption” means any method of ingestion of or 2 
application to the body, including eating, drinking, inhaling, absorbing, or 3 
injecting, through which a product is metabolized or is otherwise subject to 4 
a biotransformative process when introduced into the human body; 5 
 (11)(A)  “Container” means any final packaged product that is 6 
offered, intended for sale, or sold to a consumer in the form of an external 7 
package, can, bottle, bag, or other receptacle that can hold hemp or 8 
consumable hemp products. 9 
 (B)  "Container" does not include: 10 
 (i)  Exit packaging, a shipping container, or an 11 
outer wrapping used solely for the transport of products in bulk quantity; or 12 
 (ii)  Any package, can, bottle, bag, or other 13 
receptacle that may house the products individually inside the external 14 
container; 15 
 (12)  “Days” means calendar days unless otherwise specified; 16 
 (13)  “Delta-9 tetrahydrocannabinol” means the sum of the 17 
percentage by weight of tetrahydrocannabinol acid multiplied by eight hundred 18 
seventy-seven thousandths (0.877) plus the percentage by weight of delta -9 19 
tetrahydrocannabinol; 20 
 (14)  “Federally defined tetrahydrocannabinol level” means the 21 
lesser of a delta-9 tetrahydrocannabinol concentration of not more than three 22 
tenths of one percent (0.3%) on a dry weight basis for hemp or as otherwise 23 
defined in 7 U.S.C. § 1639o, as existing on January 1, 2025; 24 
 (15)  “Finished product” means a product intended for consumer 25 
use to be sold at retail; 26 
 (16)  “Hemp” means the plant Cannabis sativa and any part of the 27 
plant, including the seeds of the plant, that contains a delta -9 28 
tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 29 
less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 30 
isomers, acids, salts, and salts of isomers, whether growing or not; 31 
 (17)(A)  “Intoxicating hemp product” means a finished product 32 
intended for human consumption that is derived from or contains hemp or hemp 33 
extract and contains a total tetrahydrocannabinol concentration that exceeds 34 
zero percent (0%) when tested in its finished form. 35 
 (B)  "Intoxicating hemp product" may contain derivatives, 36    	SB533 
 
 	8 	03/20/2025 11:19:12 AM JMB498 
extracts, cannabinoids, isomers, acids, salts, and salts of isomers including 1 
without limitation: 2 
 (i)  Delta-10 tetrahydrocannabinol and its isomers; 3 
 (ii)  Delta-9 tetrahydrocannabinol and its isomers; 4 
 (iii)  Delta-8 tetrahydrocannabinol and its isomers; 5 
 (iv)  Delta-7 tetrahydrocannabinol and its isomers; 6 
 (v)  Delta-6a, 10a tetrahydrocannabinol and its 7 
isomers; 8 
 (vi)  Exo-tetrahydrocannabinol; 9 
 (vii)  Metabolites of tetrahydrocannabinol, including 10 
11-hydroxy-tetrahydrocannabinol, 3 -27 hydroxy-tetrahydrocannabinol, or 7 -11 
hydroxy-tetrahydrocannabinol; 12 
 (viii)  Tetrahydrocannabinolic acid; 13 
 (ix)  Hydrogenated forms of tetrahydrocannabinol, 14 
including hexahydrocannabinol, hexaydrocannabiphrol, and 15 
hexahydrocannabihexol; 16 
 (x)  Synthetic forms of tetrahydrocannabinol, 17 
including dronabinol; 18 
 (xi)  Ester forms of tetrahydrocannabinol, including 19 
delta-8 tetrahydrocannabinol, tetrahydrocannabinol -O-acetate, delta-9 20 
tetrahydrocannabinol -O-acetate, and hexahydrocannabinol -O-6 acetate; 21 
 (xii)  Tetrahydrocannabivarins, including delta -8 22 
tetrahydrocannabivarin but excluding delta -9 tetrahydrocannabivarin; 23 
 (xiii)  Analogues or tetrahydrocannabinols with an 24 
alkyl chain of four (4) or more carbon atoms, including 25 
tetrahydrocannabiphorols, tetrahydrocannabioctyls, tetrahydocannabihexols, or 26 
tetrahydrocannabutols; 27 
 (xiv)  Any combination of the compounds, including 28 
hexahydrocannabiphorol -o-ester; and 29 
 (xv)  Any other cannabinoid classified as an 30 
intoxicant by rule of the Arkansas Tobacco Control Board. 31 
 (C)  "Intoxicating hemp product" does not include a 32 
consumable hemp product or medical marijuana regulated under the Arkansas 33 
Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 34 
 (18)  “Minor” means a person who is under twenty -one (21) years 35 
of age; 36    	SB533 
 
 	9 	03/20/2025 11:19:12 AM JMB498 
 (19)  “Person” means an individual, retailer, wholesaler, 1 
manufacturer, firm, association, company, partnership, limited liability 2 
company, corporation, joint -stock company, club, agency, syndicate, county, 3 
municipal corporation or other political subdivision of the state, receiver, 4 
trustee, fiduciary, or trade association; 5 
 (20)  “Principal place of business” means the physical location: 6 
 (A)  Where orders for consumable hemp products are taken or 7 
received or where consumable hemp products are sold; and 8 
 (B)  That is on file with the Arkansas Tobacco Control 9 
Board; 10 
 (21)  “Produce” means to grow industrial hemp for market or for 11 
cultivation for market; 12 
 (22)(A)  “Sale” or “sell” means a transfer, exchange, or barter 13 
in any manner or by any means for any consideration, including distributing 14 
or shipping consumable hemp products in connection with a sale. 15 
 (B)  A sale “in” or “into” a state refers to the state in 16 
which the destination point of the consumable hemp product is located in the 17 
sale without regard to where title was transferred. 18 
 (C)  A sale “from” a state refers to the sale of a 19 
consumable hemp product that is located in that state to the destination in 20 
question without regard to where title was transferred; 21 
 (23)  “Tetrahydrocannabinol” means a compound that is the 22 
natural, primary active cannabinoid substance or its equivalent contained in 23 
the plant of the genus Cannabis or in the resinous extracts of the plant, 24 
including derivatives or isomers derived from such cannabinoids; 25 
 (24)  "Total tetrahydrocannabinol" means the total concentration 26 
of all tetrahydrocannabinols, including delta -8 tetrahydrocannabinol, delta -9 27 
tetrahydrocannabinol, delta -10 tetrahydrocannabinol, tetrahydrocannabinolic 28 
acid or its decarboxylated equivalent, and any other chemically similar 29 
compound, substance, derivative, or isomer of tetrahydrocannabinol, and any 30 
other cannabinoid identified by the Arkansas Tobacco Control Board; and 31 
 (25)  “Warehouse” means a place where consumable hemp products 32 
are stored for another person and to or from which place the consumable hemp 33 
products are shipped or delivered upon order by the owner of the consumable 34 
hemp, to the warehouse. 35 
 36    	SB533 
 
 	10 	03/20/2025 11:19:12 AM JMB498 
 20-56-503.  Construction. 1 
 (a)  A consumable hemp product shall not be delivered, sold, bought, or 2 
used in this state except in conformity with applicable laws and rules, 3 
including this subchapter and rules promulgated under this subchapter. 4 
 (b)  A person shall not manufacture, process, distribute, or sell a 5 
consumable hemp product without being permitted by the Arkansas Tobacco 6 
Control Board. 7 
 (c)  A product intended for human consumption or inhalation that is 8 
derived from hemp and contains tetrahydrocannabinol shall not be permitted or 9 
allowed under the laws of this state, other than consumable hemp products if 10 
otherwise legal under state law. 11 
 (d)(1)  A consumable hemp product shall not be combined with or contain 12 
any of the following: 13 
 (A)  Ethanol; 14 
 (B)  Nicotine or tobacco; or 15 
 (C)  Any amount of tetrahydrocannabinol as to create a 16 
danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 17 
other risk to the public. 18 
 (2)  A medical device, prescription drug, or drug otherwise 19 
approved by the United States Food and Drug Administration is not a 20 
consumable hemp product. 21 
 (e)  The business of handling, receiving, possessing, storing, 22 
distributing, taking orders for, soliciting orders of, selling, offering for 23 
sale, and dealing in, through sale, barter, or exchange, consumable hemp 24 
products is declared to be a privilege under the laws of this state. 25 
 26 
 20-56-504.  Permits. 27 
 (a)(1)  Each person listed in this section, before commencing business 28 
or if already in business, before continuing business, shall pay an annual 29 
privilege fee and secure a permit from the Director of Arkansas Tobacco 30 
Control. 31 
 (2)  A person purchasing an existing permitted retail location 32 
may, with the permission of the seller and the Arkansas Tobacco Control 33 
Board, operate under the selling owner’s permit for no more than thirty (30) 34 
days from the date of the sale. 35 
 (b)(1)  In addition to securing a permit under subsection (a) of this 36    	SB533 
 
 	11 	03/20/2025 11:19:12 AM JMB498 
section, a consumable hemp manufacturer whose products are sold in this state 1 
shall register with the Secretary of the Department of Finance and 2 
Administration. 3 
 (2)  A consumable hemp wholesaler shall secure the proper 4 
wholesale permit. 5 
 (3)  Every consumable hemp retailer that operates a place of 6 
business shall secure the proper retail permit. 7 
 (c)(1)  Permits shall be issued as follows: 8 
 (A)  A permit for a sole proprietorship is issued in the 9 
owner’s name and in the fictitious business name, if any; 10 
 (B)(i)  A permit for a partnership or limited liability 11 
company is issued in the name of: 12 
 (a)  The managing partner or managing member; 13 
and 14 
 (b)  The partnership or limited liability 15 
company. 16 
 (ii)  If the managing partner or managing member of a 17 
limited liability company is a partnership, limited liability company, or 18 
corporation, then the permit shall be issued in the name of: 19 
 (a)  The president or chief executive officer; 20 
and 21 
 (b)  The partnership or limited liability 22 
company; and 23 
 (C)  A permit for a publicly traded or nonpublicly traded 24 
corporation shall be issued in the name of the president or chief executive 25 
officer of the corporation and in the name of the corporation. 26 
 (2)  It is a violation for a permitted entity not to provide 27 
written notification to the director within thirty (30) days of a change in 28 
the following: 29 
 (A)  The managing partner of a partnership, managing member 30 
of a limited liability company, or president or chief executive officer of a 31 
corporation, partnership, or limited liability company; or 32 
 (B)  The stockholders effecting twenty -five percent (25%) 33 
or more of the total voting shares of a nonpublicly traded corporation. 34 
 (d)(1)  When an entity transfers a business permitted under this 35 
subchapter, the entity to which the business is transferred: 36    	SB533 
 
 	12 	03/20/2025 11:19:12 AM JMB498 
 (A)  Shall apply for a new permit under this subchapter; 1 
 (B)  May be issued a new permit under this subchapter; and 2 
 (C)  May operate under the selling entity’s permit for no 3 
more than thirty (30) days from the date of the sale. 4 
 (2)  When a partnership or limited liability company permitted 5 
under this subchapter changes, removes, or replaces the managing partner, 6 
managing member, president, or chief executive officer: 7 
 (A)  The existing permit issued under this subchapter is 8 
void; and 9 
 (B)  The partnership or limited liability company: 10 
 (i)  Shall apply for a new permit under this 11 
subchapter; 12 
 (ii)  May be issued a new permit under this 13 
subchapter; and 14 
 (iii)  May operate under the voided permit for no 15 
more than thirty (30) days from the date of the change, removal, or 16 
replacement of the managing partner, managing member, president, or chief 17 
executive officer. 18 
 (3)  When a nonpublicly traded corporation permitted under this 19 
subchapter changes, removes, or replaces the president or chief executive 20 
officer named on the permit or changes, removes, or replaces a stockholder 21 
who owns fifty percent (50%) or more of the total voting shares of the 22 
nonpublicly traded corporation’s stock: 23 
 (A)  The permit issued under this subchapter is void; and 24 
 (B)  The nonpublicly traded corporation: 25 
 (i)  Shall apply for a new permit under this 26 
subchapter; 27 
 (ii)  May be issued a new permit under this 28 
subchapter; and 29 
 (iii)  May operate under the voided permit for no 30 
more than thirty (30) days from the date of the change, removal, or 31 
replacement of the president, chief executive officer, or stockholder. 32 
 (4)  When a publicly traded corporation permitted under this 33 
subchapter changes, removes, or replaces the president or chief executive 34 
officer named on the permit or changes, removes, or replaces a stockholder 35 
who owns fifty percent (50%) or more of the total voting shares of the 36    	SB533 
 
 	13 	03/20/2025 11:19:12 AM JMB498 
publicly traded corporation’s stock: 1 
 (A)  The permit issued under this subchapter is void; and 2 
 (B)  The publicly traded corporation: 3 
 (i)  Shall apply for a new permit under this 4 
subchapter; 5 
 (ii)  May be issued a new permit under this 6 
subchapter; and 7 
 (iii)  May operate under the voided permit for no 8 
more than thirty (30) days from the date of the change, removal, or 9 
replacement of the president, chief executive officer, or stockholder. 10 
 (e)  An entity may apply for and be issued a permit under this 11 
subchapter in advance of the effective date of the permit to facilitate 12 
continuity of business operations. 13 
 14 
 20-56-505.  Permits — Location — Background check required. 15 
 (a)  A consumable hemp retailer permit, consumable hemp wholesaler 16 
permit, or consumable hemp manufacturer permit shall not be issued to a 17 
residential address, a mobile structure, vehicle, or for an address not zoned 18 
appropriately for the business seeking to secure the permit. 19 
 (b)  A permit shall not be issued to: 20 
 (1)  A person who has pleaded guilty or nolo contendere to or 21 
been found guilty of a felony; or 22 
 (2)  A business owned or operated, in whole or in part, by a 23 
person who has pleaded guilty or nolo contendere to or been found guilty of a 24 
felony. 25 
 (c)  The Arkansas Tobacco Control Board shall conduct a criminal 26 
background check on each permit applicant and application, using the Arkansas 27 
Crime Information Center. 28 
 29 
 20-56-506.  Permits — Annual privilege fees. 30 
 (a)  The annual privilege fee for each permit authorized by this 31 
subchapter is established as follows: 32 
 (1)  Consumable hemp wholesaler permit               $5,000 33 
 (2)  Consumable hemp retailer permit                 $5,000 34 
 (3)  Consumable hemp manufacturer permit             $5,000 35 
 (b)(1)  All permits issued under this subchapter shall expire on June 36    	SB533 
 
 	14 	03/20/2025 11:19:12 AM JMB498 
30 following the effective date of issuance. 1 
 (2)(A)  Upon the failure to timely renew a permit issued under 2 
this subchapter, a late fee of two (2) times the amount of the appropriate 3 
permit fee shall be owed in addition to the annual privilege fee for the 4 
permit. 5 
 (B)  An expired permit that is not renewed before September 6 
1 following the expiration of the permit shall not be renewed, and the holder 7 
of the expired permit shall submit an application for a new permit. 8 
 (3)  A permit shall not be issued to the applicant until the late 9 
fee and the permit fee have been paid. 10 
 (c)  A permit issued under this subchapter shall not be renewed for a 11 
permit holder who is delinquent more than ninety (90) days on a privilege 12 
fee, tax relating to the sale or dispensing of a consumable hemp product, or 13 
any other state and local tax due the Secretary of the Department of Finance 14 
and Administration. 15 
 (d)  A person who is delinquent more than ninety (90) days on a state 16 
or local tax may not renew or obtain a permit issued under this subchapter 17 
except upon certification that the permit holder has entered into a repayment 18 
agreement with the Department of Finance and Administration and is current on 19 
the payments. 20 
 (e)  A permit holder who has unpaid fees, civil penalties, or an 21 
unserved permit suspension may not transfer, sell, or give consumable hemp 22 
product inventory of the business associated with the permit to a third party 23 
until all fees and civil penalties are paid in full and all suspensions are 24 
completed successfully, nor shall any third party be issued a new permit for 25 
the business location. 26 
 (f)  Each consumable hemp manufacturer, consumable hemp wholesaler, and 27 
consumable hemp retailer shall retain copies of all invoices for the purchase 28 
or sale of any consumable hemp product for a period of at least ten (10) 29 
years subject to examination by the secretary and the Director of Arkansas 30 
Tobacco Control or their authorized agents upon demand at any time during 31 
regular business hours. 32 
 (g)  A consumable hemp retailer shall: 33 
 (1)  Maintain copies of at least the last three hundred sixty -34 
five (365) days of consumable hemp product invoices, which the retailer shall 35 
provide immediately upon demand; 36    	SB533 
 
 	15 	03/20/2025 11:19:12 AM JMB498 
 (2)(A)  Make the invoices that are older than three hundred 1 
sixty-five (365) days available upon demand at any time during normal 2 
business hours in the retail store. 3 
 (B)  Except as provided in subdivision (g)(2)(C) of this 4 
section, an agent of the Arkansas Tobacco Control Board may determine a 5 
reasonable time frame for which invoices are to be provided under subdivision 6 
(g)(2)(A) of this section. 7 
 (C)  An invoice that is provided seventy -two (72) hours 8 
more after the demand shall not be considered for purposes of determining 9 
violation of this subsection; 10 
 (3)  Retain invoices for all consumable hemp products in the 11 
retail store even if the invoice for the consumable hemp product is older 12 
than three (3) years; 13 
 (4)  Maintain a copy of the signed server awareness forms for 14 
each employee of the retailer who engages in the sale of consumable hemp 15 
products, which the retailer shall provide immediately upon demand; 16 
 (5)(A)  Maintain a copy of any complete transfer forms showing: 17 
 (i)  The consumable hemp products that were 18 
transferred; 19 
 (ii)  The permitted location from which the 20 
consumable hemp products were transferred; and 21 
 (iii)  When the transfer occurred. 22 
 (B)  A transfer form shall be completed contemporaneously 23 
with the transfer and shall be provided immediately by the retailer upon 24 
demand; and 25 
 (6)  If any inventory was submitted with a permit application, 26 
maintain a copy of the submitted inventory form, which the retailer shall 27 
provide immediately upon demand. 28 
 (h)  A consumable hemp wholesaler and consumable hemp manufacturer 29 
shall: 30 
 (1) Maintain ten (10) years of consumable hemp product invoices 31 
that are available upon demand during normal business hours in the permitted 32 
location; and 33 
 (2)  Permit the board and authorized personnel of the board to 34 
enter into and inspect stock of consumable hemp products, and any documents 35 
and records relating to receipts and disbursements of consumable hemp 36    	SB533 
 
 	16 	03/20/2025 11:19:12 AM JMB498 
products. 1 
 (i)  An invoice from a consumable hemp wholesaler to a consumable hemp 2 
retailer shall contain the name or other identifying information of the 3 
consumable hemp wholesaler and the consumable hemp retailer. 4 
 (j)(1)  A nonresident consumable hemp wholesaler shall also keep a 5 
record of all consumable hemp products purchased for distribution within this 6 
state. 7 
 (2)  All books, records, and memoranda pertaining to the purchase 8 
and sale of the consumable hemp products under subdivision (j)(1) of this 9 
section shall be subject to inspection by the board. 10 
 (k)  Authorized personnel of the board shall not release to the board 11 
or to the public any information identifying customers of the consumable hemp 12 
manufacturer, consumable hemp wholesaler, or warehouse except when necessary 13 
to notify the board of alleged violations of this subchapter. 14 
 15 
 20-56-507.  Permits — Not transferable — Duplicates. 16 
 (a)  A permit under this subchapter is not transferable to a: 17 
 (1)  Subsequent owner or operator; or 18 
 (2)  Different physical location unless the permit holder obtains 19 
permission from the Director of Arkansas Tobacco Control. 20 
 (b)  A person purchasing an existing permitted retail location may 21 
operate under the selling owner’s permit for no more than thirty (30) days 22 
from the date of the sale. 23 
 (c)  When a permit is lost by a permit holder, a duplicate permit may 24 
be issued upon application and for a fee of five dollars ($5.00) when 25 
sufficient proof has been given to the director. 26 
 27 
 20-56-508.  Permits — Suspension or revocation. 28 
 (a)  All permits issued under this subchapter shall be suspended or 29 
revoked by the Director of Arkansas Tobacco Control for any violation of this 30 
subchapter or the rules pertaining to this subchapter, subject to a hearing 31 
before the Arkansas Tobacco Control Board at the next regularly scheduled 32 
board meeting. 33 
 (b)  The director may revoke all permits to deal in consumable hemp 34 
products associated with any person who is convicted of or pleads guilty or 35 
nolo contendere to a criminal violation of this subchapter, subject to a 36    	SB533 
 
 	17 	03/20/2025 11:19:12 AM JMB498 
hearing before the board at the next regularly scheduled board meeting. 1 
 2 
 20-56-509.  Advertising prohibitions and packaging requirements. 3 
 (a)  A consumable hemp product distributed or offered for sale in this 4 
state shall include the following information on the product label or product 5 
packaging: 6 
 (1)  The name of the consumable hemp product distributor or 7 
consumable hemp product manufacturer, whether in -state or out-of-state; 8 
 (2)  Product labeling clearly showing that the product contains 9 
material derived from hemp and not marijuana or medical marijuana; and 10 
 (3)  Any other marking, words, statement, or symbol as required 11 
by the Arkansas Tobacco Control Board through rules. 12 
 (b)  A person shall not advertise, market, or offer for sale in this 13 
state any consumable hemp product by using, in the labeling or design of the 14 
product, its packaging, or in its advertising or marketing materials, trade 15 
dress, trademarks, branding, or other related imagery that: 16 
 (1)  Imitates or replicates those of food brands or other related 17 
products that are marketed to or are commonly associated with children or 18 
minors, including without limitation breakfast cereal, cookies, juice drinks, 19 
soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 20 
 (2)  Depicts or signifies characters or symbols that are known to 21 
a reasonable person to appeal primarily to or are commonly associated with 22 
children or minors, including without limitation superheroes, cartoons or 23 
cartoon characters, including anime characters, comic book characters, video 24 
game characters, television show characters, movie characters, mythical 25 
creatures, unicorns, or that otherwise incorporates related imagery or 26 
scenery; or 27 
 (3) Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 28 
or “cupcakes” or any variant of these terms, or any other term referencing a 29 
type or brand of candy, cakes, pastries, or pies, including types or brands 30 
of candy, cakes, pastries, or pies that do not include the words “candy”, 31 
“candies”, “cake”, “cakes”, "pastries", “pies”, or “cupcakes” in their names, 32 
labels, or slogans. 33 
 34 
 20-56-510.  Testing. 35 
 (a)  All consumable hemp sold in this state shall be tested by an 36    	SB533 
 
 	18 	03/20/2025 11:19:12 AM JMB498 
approved laboratory. 1 
 (b)  An approved laboratory shall be an independent third -party 2 
laboratory. 3 
 (c)  A consumable hemp product sold in this state shall be tested for 4 
the following and marked as to the consumable hemp product chemical makeup 5 
before being sold to consumers: 6 
 (1)  Cannabinoid profile; 7 
 (2)  Solvents; 8 
 (3)  Pesticides; 9 
 (4)  Microbials; 10 
 (5)  Heavy metals; and 11 
 (6)  Any non-hemp-based substance. 12 
 (d)  A consumable hemp product shall not be distributed or sold in this 13 
state without a certificate of analysis from an approved laboratory that 14 
confirms: 15 
 (1)  The consumable hemp product was tested by an approved 16 
laboratory; 17 
 (2)  A tested representative sample of the consumable hemp 18 
product contained a total delta -9 tetrahydrocannabinol concentration that did 19 
not exceed three-tenths of one percent (0.3%) under this subchapter; and 20 
 (3)  A detailed analysis and list of the chemical makeup of the 21 
tested consumable hemp product under subsection (c) of this section. 22 
 (e)  The Arkansas Tobacco Control Board may periodically sample, 23 
analyze, and test any consumable hemp product located in this state. 24 
 (f)  The Director of Arkansas Tobacco Control shall: 25 
 (1)  Investigate and issue subpoenas to any permittee or approved 26 
laboratory used by a permittee that the director has reasonable suspicion of 27 
intentionally producing falsified test results on consumable hemp; and 28 
 (2)  Promulgate rules for the enforcement of this section and set 29 
penalties for any violation of the rules. 30 
 31 
 20-56-511.  Providing minors with consumable hemp products — Purchase, 32 
use, or possession prohibited. 33 
 (a)(1)  It is unlawful for any person to give, barter, or sell to a 34 
minor a consumable hemp product. 35 
 (2)  Except as provided in subdivision (a)(3) of this section, a 36    	SB533 
 
 	19 	03/20/2025 11:19:12 AM JMB498 
person who pleads guilty or nolo contendere to or is found guilty of 1 
violating subdivision (a)(1) of this section is guilty of a Class A 2 
misdemeanor. 3 
 (3)  An employee or owner of a retail location permitted under 4 
this subchapter who violates subdivision (a)(1) of this section while inside 5 
the retail location upon conviction is subject to a fine not to exceed one 6 
hundred dollars ($100) per violation. 7 
 (b)(1)  It is unlawful for a minor to: 8 
 (A)  Use or possess or to purchase or attempt to purchase a 9 
consumable hemp product; or 10 
 (B)  For the purpose of obtaining or attempting to obtain a 11 
consumable hemp product, falsely represent himself or herself not to be a 12 
minor by displaying proof of age that is false, fraudulent, or not actually 13 
proof of the minor’s age. 14 
 (2)  Any consumable hemp product found in the possession of a 15 
minor may be confiscated and destroyed by a law enforcement officer. 16 
 (c)(1)  It is not an offense under subsection (b) of this section if: 17 
 (A)  The minor was acting at the direction of an authorized 18 
agent of the Arkansas Tobacco Control Board to enforce or ensure compliance 19 
with laws relating to the prohibition of the sale of consumable hemp product 20 
to minors; 21 
 (B)  The minor was acting at the direction of an authorized 22 
agent of the Division of Aging, Adult, and Behavioral Health Services of the 23 
Department of Human Services to compile statistical data relating to the sale 24 
of consumable hemp products to minors; 25 
 (C)  The minor was acting at the request of a permit holder 26 
to assist the permit holder by performing a check on the permit holder’s own 27 
retail business to see if the permit holder’s employees would sell consumable 28 
hemp products to the minor; or 29 
 (D)  The minor was acting as an agent of a retail permit 30 
holder within the scope of employment. 31 
 (2)  A minor performing activities under subdivision (c)(1) of 32 
this section shall: 33 
 (A)  Display the appearance of a minor; 34 
 (B)  Have the written consent of the minor’s parent or 35 
guardian to perform the activity on file with the agency utilizing the minor; 36    	SB533 
 
 	20 	03/20/2025 11:19:12 AM JMB498 
and 1 
 (C)(i)  Present a true and correct identification if asked. 2 
 (ii)  Any failure on the part of a minor to provide 3 
true and correct identification upon request is a defense to any action under 4 
this section or a civil action under § 26 -57-256. 5 
 (d)  Any person who sells consumable hemp products has the right to 6 
deny the sale of any consumable hemp product to any person. 7 
 (e)  It is unlawful for any person who has been issued a permit or a 8 
license under this subchapter to fail to display in a conspicuous place a 9 
sign indicating that the sale of consumable hemp products to or purchase or 10 
possession of consumable hemp products by a minor is prohibited by law. 11 
 (f)  It is unlawful for any manufacturer whose consumable hemp product 12 
is distributed in this state and any person who has been issued a permit or 13 
license under this subchapter to distribute a free sample of any consumable 14 
hemp product or any component of a consumable hemp product or coupon that 15 
entitles the holder of the coupon to any free sample of any consumable hemp 16 
product or any component of a consumable hemp product: 17 
 (1)  In or on any public street or sidewalk within five hundred 18 
feet (500’) of any playground, public school, or other facility when the 19 
playground, public school, or other facility is being used primarily by 20 
minors for recreational, educational, or other purposes; or 21 
 (2)  To any minor. 22 
 (g)  It is unlawful for any person that has been issued a permit or 23 
license under this subchapter to: 24 
 (1)  Sell or distribute a consumable hemp product through a self -25 
service display, a vending machine, or an order executed solely over the 26 
internet or similar means; or 27 
 (2)  Advertise or promote consumable hemp in a manner that is 28 
intended to appeal to minors. 29 
 (h)  Any retail permit holder or license holder who violates any 30 
provision in this section is deemed guilty of a violation and subject to 31 
penalties under § 26 -57-256. 32 
 (i)(1)  A notice of an alleged violation of this section shall be given 33 
to the holder of a retail permit or license or an agent of the holder within 34 
ten (10) days of the alleged violation. 35 
 (2)  The notice under subdivision (i)(1) of this section shall: 36    	SB533 
 
 	21 	03/20/2025 11:19:12 AM JMB498 
 (A)  Contain the date and time of the alleged violation; 1 
and 2 
 (B)(i)  Include either the name of the person making the 3 
alleged sale or information reasonably necessary to determine the location in 4 
the store that allegedly made the sale. 5 
 (ii)  When appropriate, information under subdivision 6 
(i)(2)(B)(i) of this section shall include without limitation: 7 
 (a)  The cash register number of the sale in 8 
the store; 9 
 (b)  The physical location of the sale in the 10 
store; and 11 
 (c)  If possible, the lane or aisle number of 12 
the sale in the store. 13 
 (j)  Notwithstanding the provisions of subsection (h) of this section, 14 
the court shall consider the following factors when reviewing a possible 15 
violation: 16 
 (1)  The business has adopted and enforced a written policy 17 
against selling consumable hemp products to minors; 18 
 (2)  The business has informed its employees of the applicable 19 
laws regarding the sale of consumable hemp product to minors; 20 
 (3)  The business has required employees to verify the age of a 21 
customer attempting to purchase a consumable hemp product by way of 22 
photographic identification; 23 
 (4)  The business has established and imposed disciplinary 24 
sanctions for noncompliance; and 25 
 (5)  The appearance of the purchaser of the consumable hemp 26 
product was such that an ordinary prudent person would believe him or her to 27 
be of legal age to make the purchase. 28 
 (k)  A person convicted of violating any provision of this section 29 
whose permit or license to distribute or sell a consumable hemp product is 30 
suspended or revoked upon conviction shall surrender to the court any permit 31 
or license to distribute or sell a consumable hemp product, and the court 32 
shall transmit the permit or license to distribute or sell a consumable hemp 33 
product to the Director of Arkansas Tobacco Control: 34 
 (1)  To suspend or revoke the person’s permit or license to 35 
distribute or sell a consumable hemp product and to not renew the permit or 36    	SB533 
 
 	22 	03/20/2025 11:19:12 AM JMB498 
license; and 1 
 (2)  Not to issue any new permit or license to that person for 2 
the period of time determined by the court in accordance with this section. 3 
 4 
 20-56-512.  Enforcement — Penalties. 5 
 (a)  It is the duty of all state, county, and city officials to assist 6 
the Arkansas Tobacco Control Board in enforcing this subchapter. 7 
 (b)  A person within the jurisdiction of this state who is not 8 
permitted to sell consumable hemp products to retailers or consumers and who 9 
sells, takes orders from, delivers, or causes to be delivered immediately or 10 
in the future any consumable hemp to retailers or consumers in this state 11 
upon conviction is guilty of a Class A misdemeanor. 12 
 (c)  A person engaged in buying or selling consumable hemp products in 13 
this state without first obtaining the proper permit upon conviction is 14 
guilty of a Class A misdemeanor. 15 
 (d)  This subchapter does not prohibit the interstate transportation or 16 
shipment through this state of the plant Cannabis sativa L., and any part of 17 
that plant, including the seeds thereof and all derivatives, extracts, 18 
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 19 
not, with a total delta -9 tetrahydrocannabinol concentration of not more than 20 
three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 21 
hemp producer in another state to a licensed hemp handler in another state. 22 
 23 
 20-56-513.  Prohibitions. 24 
 (a)  It shall be unlawful for any person to: 25 
 (1)  Violate this subchapter or any rules promulgated under this 26 
subchapter; 27 
 (2)  Manufacture, produce, or market any product derived from 28 
cannabis for sale within this state, except as authorized under this 29 
subchapter and the Arkansas Medical Marijuana Amendment of 2016, Arkansas 30 
Constitution, Amendment 98; 31 
 (3) Sell or distribute any product derived from cannabis within 32 
this state or to consumers of this state, except as authorized under this 33 
subchapter and the Arkansas Medical Marijuana Amendment of 2016, Arkansas 34 
Constitution, Amendment 98; 35 
 (4)  Manufacture, distribute, sell, or market a consumable hemp 36    	SB533 
 
 	23 	03/20/2025 11:19:12 AM JMB498 
product that is not reported to the Arkansas Tobacco Control Board as 1 
required by this subchapter; 2 
 (5)  Manufacture, produce, market, or sell any intoxicating hemp 3 
product; 4 
 (6)  Sell any consumable hemp product to a minor; or 5 
 (7)  Market or promote a consumable hemp product or other hemp 6 
product: 7 
 (A)  For an intoxicating effect; 8 
 (B)  As containing tetrahydrocannabinol; or 9 
 (C)  With unlawful drug or health claims. 10 
 (b)  Any person that purposely, knowingly, or recklessly violates this 11 
subchapter relating to hemp production, manufacture, sale, distribution, 12 
marketing, or processing shall be guilty of a misdemeanor and, upon 13 
conviction of the violation, shall be fined in an amount not to exceed five 14 
thousand dollars ($5,000), or sentenced to imprisonment in the county jail 15 
for not more than one (1) year, or both. 16 
 (c)  Notwithstanding subsection (b) of this section, any person that 17 
purposefully, recklessly, or knowingly manufactures, markets, or sells an 18 
intoxicating hemp product shall be guilty of a felony. 19 
 (d)  Any violation of this subchapter is a deceptive and unconscionable 20 
trade practice under the Deceptive Trade Practices Act, § 4 -88-101 et seq., 21 
and all remedies, penalties, and authority granted to the Attorney General 22 
under the Deceptive Trade Practices Act, § 4 -88-101 et seq., shall be 23 
available to the Attorney General for the enforcement of this subchapter. 24 
 (e)  The prosecuting attorney in the county where the alleged crime was 25 
committed shall also have full authority to enforce this subchapter. 26 
 (f)  This subchapter does not prohibit the bringing of a civil action 27 
against a violator of this subchapter by an individual harmed by the 28 
violator’s acts or omissions. 29 
 30 
 20-56-514.  Consumable hemp product directory. 31 
 (a)  By December 1, 2025, and annually thereafter, every licensed 32 
consumable hemp manufacturer of a consumable hemp product that is sold for 33 
retail sale in this state, whether the consumable hemp product manufacturer 34 
is located in or outside this state, shall execute and deliver to the 35 
Arkansas Tobacco Control Board a certification, under penalty of perjury, on 36    	SB533 
 
 	24 	03/20/2025 11:19:12 AM JMB498 
a form and in a manner prescribed by the board, that the manufacturer is 1 
compliant with this subchapter. 2 
 (b)  The certification form shall separately list each brand name, 3 
category, product name, and flavor for each consumable hemp product that is 4 
sold in this state. 5 
 (c)(1)  On and after December 1, 2025, the board shall maintain and 6 
make publicly available on its official website a directory that lists all 7 
consumable hemp product manufacturers, brand names, categories, product 8 
names, and flavors for which certification forms have been submitted and 9 
approved by the board and shall update the directory at least monthly to 10 
ensure accuracy. 11 
 (2)  The board shall establish a process to provide licensed 12 
consumable hemp retailers, consumable hemp distributors, and consumable hemp 13 
wholesalers notice of the initial publication of the directory and changes 14 
made to the directory in the prior month. 15 
 (d)  After ninety (90) calendar days following publication of the 16 
directory, consumable hemp products not listed in the directory and intended 17 
for retail sale in this state are subject to seizure, forfeiture, and 18 
destruction, and shall not be purchased or sold for retail sale in this 19 
state. 20 
 (e)  Any person who sells or offers for sale a consumable hemp product 21 
for retail sale in this state that is not included in the directory shall be 22 
subject to a civil penalty of up to five hundred dollars ($500) for each 23 
individual consumable hemp product offered for sale in violation of this 24 
section until the offending consumable hemp product is removed from the 25 
market or until the offending consumable hemp product is properly listed on 26 
the directory. 27 
 (f)  The civil penalty collected under this section shall be deposited 28 
into the State Treasury as special revenues to the credit of the Arkansas 29 
Tobacco Control Revenue Fund. 30 
 31 
 20-56-515.  Notice required at point of sale — Penalties. 32 
 (a)  A person shall not sell or offer for sale a consumable hemp 33 
product in this state unless a clearly visible notice is posted at the 34 
location where the consumable hemp product is available for purchase. 35 
 (b)  The notice described under subsection (a) of this section shall 36    	SB533 
 
 	25 	03/20/2025 11:19:12 AM JMB498 
state that: 1 
 (1)  A consumable hemp product contains tetrahydrocannabinol; 2 
 (2)  Women who are pregnant or breastfeeding should not use 3 
products that contain tetrahydrocannabinol due to the risk of birth defects 4 
and other developmental defects; and 5 
 (3)  A minor shall not purchase a consumable hemp product. 6 
 (c)(1)  In addition to the penalties under this subchapter and the 7 
Arkansas Industrial Hemp Production Act, § 2 -15-501 et seq., any person who 8 
sells or offers for sale a consumable hemp product without a notice as 9 
described in this section shall be fined not less than five hundred dollars 10 
($500) for the first offense and not more than one thousand dollars ($1,000) 11 
for each subsequent offense. 12 
 (2)  Each violation, and every day in which a violation occurs, 13 
constitutes a separate violation. 14 
 (d)  Fines collected under this section shall be deposited into the 15 
State Treasury as special revenues to the credit of the Arkansas Tobacco 16 
Control Revenue Fund. 17 
 18 
 20-56-516.  Rules. 19 
 The Director of Arkansas Tobacco Control may promulgate rules for the 20 
proper enforcement of his or her powers and duties under this subchapter, 21 
including without limitation the regulation of processing, transportation, 22 
delivery, sale, and purchase of consumable hemp products in accordance with 23 
this subchapter and the power to levy penalties for violations of this 24 
subchapter. 25 
 26 
 SECTION 10.  Arkansas Code Title 20, Chapter 56, Subchapter 4, as 27 
amended by Acts 2025, No. 176, § 2, effective if the contingency in Acts 28 
2023, No. 629, § 17, is met, is repealed. 29 
Subchapter 4 — Hemp-Derived Products 30 
 31 
 20-56-401.  Purpose. 32 
 It is the intent of this subchapter to provide regulation of certain 33 
hemp-derived products to: 34 
 (1)  Prevent the sale and use of illicit hemp -based products 35 
within Arkansas; and 36    	SB533 
 
 	26 	03/20/2025 11:19:12 AM JMB498 
 (2)  Protect and promote the public health and welfare of the 1 
residents of this state. 2 
 3 
 20-56-402.  Definitions. 4 
 As used in this subchapter: 5 
 (1)  “Annual” or “annually” means the fiscal year from July 1 6 
through the next June 30; 7 
 (2)  “Approved laboratory” means a laboratory that is accredited 8 
by the National Institute on Drug Abuse, the National Environmental 9 
Laboratory Accreditation Conference, the International Organization for 10 
Standardization, or a similar accrediting entity as determined by Arkansas 11 
Tobacco Control and that has been approved by the Director of Arkansas 12 
Tobacco Control specifically for the testing of hemp -derived product; 13 
 (3)  “Consumer” means a member of the public at large; 14 
 (4)  “Days” means calendar days unless otherwise specified; 15 
 (5)  “Finished product” means a product intended for consumer use 16 
to be sold at retail; 17 
 (6)  “Hemp” means the plant Cannabis sativa and any part of the 18 
plant, including the seeds of the plant, that contains a delta -9 19 
tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 20 
less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 21 
isomers, acids, salts, and salts of isomers, whether growing or not; 22 
 (7)  “Hemp-derived e-liquid product” means a liquid hemp -derived 23 
product that contains hemp that is inhaled when using a vapor product, and 24 
that may or may not include without limitation propylene glycol, vegetable 25 
glycerin, and flavorings; 26 
 (8)(A)  “Hemp-derived product” means a product intended for any 27 
form of human consumption, including consumption by vapor inhalation, or a 28 
component of a product, that is derived from hemp, including all derivatives, 29 
extracts, cannabinoids, isomers, acids, salts, and salts of isomers, and any 30 
product made from such derivatives, and that contains greater than three	-31 
tenths of one percent (0.3%) tetrahydrocannabinol. 32 
 (B)  “Hemp-derived product” includes a hemp -derived e-33 
liquid product and a vapor product. 34 
 (C)  “Hemp-derived product” does not include: 35 
 (i)  A product intended for animal consumption or 36    	SB533 
 
 	27 	03/20/2025 11:19:12 AM JMB498 
use; 1 
 (ii) A cosmetic as defined by § 20 -56-202; 2 
 (iii) Any marijuana, medical marijuana, or other 3 
cannabis product containing delta -9 tetrahydrocannabinol greater than three -4 
tenths of one percent (0.3%) on a dry -weight basis as administered, licensed, 5 
and otherwise regulated by the Alcoholic Beverage Control Division, the 6 
Medical Marijuana Commission, and the Department of Health under the Arkansas 7 
Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 8 
 (iv) A raw hemp product, including any intact plant, 9 
flower, buds, leaves, or stems; 10 
 (v)  A drug in the form for which an application 11 
filed in accordance with 21 U.S.C. § 355 is approved by the United States 12 
Food and Drug Administration; 13 
 (vi) A dietary supplement as defined by the Federal 14 
Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or 15 
 (vii) A fabric, textile, cordage, fiber, fuel, paper, 16 
construction material, plastic, seed, seed meal, and seed oil; 17 
 (9)(A)  “Manufacturer” means a person that manufactures, 18 
fabricates, assembles, or processes a hemp -derived product, including without 19 
limitation federally licensed importers and federally licensed distributors 20 
that deal in hemp-derived products. 21 
 (B)  “Manufacturer” includes: 22 
 (i)  A sales entity affiliate of the manufacturer or 23 
any other entity representing the manufacturer with regard to the sale of 24 
hemp-derived products produced by the manufacturer to wholesalers or 25 
permitted retailers; and 26 
 (ii) A person that mixes, compounds, extracts, 27 
infuses, blends, processes, repackages, or resizes hemp -derived products 28 
including the extraction of cannabinoids from hemp biomass. 29 
 (C)  “Manufacturer” does not include a person who engages 30 
in the agricultural production of hemp, such as growing, planting, and 31 
harvesting of raw hemp biomass regulated by the State Plant Board; 32 
 (10) “Minor” means a person who is under twenty -one (21) years of 33 
age; 34 
 (11) “Person” means an individual, retailer, wholesaler, 35 
manufacturer, firm, association, company, partnership, limited liability 36    	SB533 
 
 	28 	03/20/2025 11:19:12 AM JMB498 
company, corporation, joint -stock company, club, agency, syndicate, the State 1 
of Arkansas, county, municipal corporation or other political subdivision of 2 
the state, receiver, trustee, fiduciary, or trade association; 3 
 (12) “Place of business” means the physical location: 4 
 (A)  Where orders for hemp -derived products are taken or 5 
received or where hemp -derived products are sold; and 6 
 (B)  That is on file with Arkansas Tobacco Control; 7 
 (13) “Retailer” means a person that purchases hemp -derived 8 
products from permitted wholesalers for the purpose of selling the hemp	-9 
derived products in person and over the counter at retail to consumers; 10 
 (14)(A)  “Sale” or “sell” means a transfer, exchange, or 11 
barter in any manner or by any means for any consideration, including 12 
distributing or shipping hemp -derived product in connection with a sale. 13 
 (B)  A sale “in” or “into” a state refers to the state in 14 
which the destination point of the hemp -derived product is located in the 15 
sale without regard to where title was transferred. 16 
 (C)  A sale “from” a state refers to the sale of a hemp -17 
derived product that is located in that state to the destination in question 18 
without regard to where title was transferred; 19 
 (15) “Self-service display” means a display: 20 
 (A)  That contains a hemp -derived product, or any component 21 
of a hemp-derived product; 22 
 (B)  That is located in an area where customers are 23 
permitted; and 24 
 (C)  In which the hemp -derived product, or any component of 25 
a hemp-derived product, is readily accessible to a customer without the 26 
assistance of a salesperson; 27 
 (16) “Tetrahydrocannabinol” means a compound that is the natural, 28 
primary active cannabinoid substance or its equivalent contained in the plant 29 
of the genus cannabis or in the resinous extracts of the plant, including 30 
derivatives or isomers derived from such cannabinoids; 31 
 (17) “Vapor product” means hemp -derived product that is an 32 
electronic oral device of any size or shape that contains a vapor of hemp or 33 
hemp-derived e-liquid product that when used or inhaled simulates smoking, 34 
regardless of whether a visible vapor is produced, including without 35 
limitation a device that: 36    	SB533 
 
 	29 	03/20/2025 11:19:12 AM JMB498 
 (A)  Is composed of a heating element, battery, electronic 1 
circuit, chemical process, mechanical device, or a combination of heating 2 
element, battery, electronic circuit, chemical process, or mechanical device; 3 
 (B)  Works in combination with a cartridge, other 4 
container, or liquid delivery device containing hemp or hemp -derived e-liquid 5 
product and manufactured for use with vapor products; 6 
 (C)  Is manufactured, distributed, marketed, or sold as any 7 
type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 8 
other produced name or descriptor; and 9 
 (D)  Does not include a product regulated as a drug or 10 
device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 11 
as it existed on January 1, 2015; 12 
 (18) “Warehouse” means a place where hemp -derived products are 13 
stored for another person and to or from which place the hemp -derived 14 
products are shipped or delivered upon order by the owner of the hemp	-derived 15 
products, to the warehouse; and 16 
 (19) “Wholesaler” means a person other than a manufacturer or a 17 
person owned or operated by a manufacturer that: 18 
 (A)  Does business within the state; 19 
 (B)  Purchases hemp-derived products from any source; 20 
 (C)  Distributes or sells the hemp -derived products to 21 
other wholesalers, or retailers; and 22 
 (D)  Does not distribute or sell the hemp -derived products 23 
at retail to consumers. 24 
 25 
 20-56-403.  Construction. 26 
 (a)  A hemp-derived product shall not be delivered, sold, bought, or 27 
used in this state except in conformity with all applicable laws and 28 
regulations, including this subchapter and any rules promulgated under this 29 
subchapter. 30 
 (b)  A person shall not sell a hemp -derived product without being 31 
permitted by Arkansas Tobacco Control. 32 
 (c)  A product intended for human consumption or inhalation that is 33 
derived from hemp and contains tetrahydrocannabinol shall not be permitted or 34 
allowed under the laws of this state, other than hemp -derived products if 35 
otherwise legal under state law. 36    	SB533 
 
 	30 	03/20/2025 11:19:12 AM JMB498 
 (d)(1)  A hemp-derived product shall not be combined with or contain 1 
any of the following: 2 
 (A)  Any liquid, hydrocolloid, animal -based substance, 3 
thickener, sweetener, flavoring, synthetic product, propylene glycol, 4 
vegetable glycerin, or other non -hemp-derived substance; 5 
 (B)  Nicotine or tobacco; or 6 
 (C)  Any amount of tetrahydrocannabinol as to create a 7 
danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 8 
other risk to the public. 9 
 (2)  Medical devices, prescription drugs, or drugs otherwise 10 
approved by the United States Food and Drug Administration shall not be 11 
considered hemp-derived products. 12 
 (e)  The business of handling, receiving, possessing, storing, 13 
distributing, taking orders for, soliciting orders of, selling, offering for 14 
sale, and dealing in, through sale, barter, or exchange, hemp -derived 15 
products is declared to be a privilege under the Arkansas Constitution and 16 
laws of the State of Arkansas. 17 
 18 
 20-56-404.  Permits. 19 
 (a)(1)  Each person listed in this section, before commencing business, 20 
or if already in business, before continuing business, shall pay an annual 21 
privilege fee and secure a permit from the Director of Arkansas Tobacco 22 
Control. 23 
 (2)  A person purchasing an existing permitted retail location 24 
may, with the permission of the seller and Arkansas Tobacco Control, operate 25 
under the selling owner's permit for no more than thirty (30) days from the 26 
date of the sale. 27 
 (b)(1)  In addition to securing a permit under subsection (a) of this 28 
section, a manufacturer whose products are sold in this state shall register 29 
with the Secretary of the Department of Finance and Administration. 30 
 (2)  A wholesaler of hemp -derived products shall secure the 31 
proper wholesale permit. 32 
 (3)  Every retailer of hemp -derived products that operates a 33 
place of business shall secure the proper retail permit. 34 
 (c)(1)  Permits shall be issued as follows: 35 
 (A)  A permit for a sole proprietorship is issued in the 36    	SB533 
 
 	31 	03/20/2025 11:19:12 AM JMB498 
owner's name and in the fictitious business name, if any; 1 
 (B)(i)  A permit for a partnership or limited liability 2 
company is issued in the name of: 3 
 (a)  The managing partner or managing member; 4 
and 5 
 (b)  The partnership or limited liability 6 
company. 7 
 (ii) If the managing partner or managing member of a 8 
limited liability company is a partnership, limited liability company, or 9 
corporation, then the permit shall be issued in the name of: 10 
 (a)  The president or chief executive officer; 11 
and 12 
 (b)  The partnership or limited liability 13 
company; and 14 
 (C)  A permit for a publicly traded or nonpublicly traded 15 
corporation is issued in the name of the president or chief executive officer 16 
of the corporation and in the name of the corporation. 17 
 (2)  It is a violation for a permitted entity not to provide 18 
written notification to the director within thirty (30) days of a change in 19 
the following: 20 
 (A)  The managing partner, limited liability company 21 
managing member, or president or chief executive officer of a corporation, 22 
partnership, or limited liability company; or 23 
 (B)  The stockholders effecting twenty -five percent (25%) 24 
or more of the total voting shares of a nonpublicly traded corporation. 25 
 (d)(1)  When an entity transfers a business permitted under this 26 
subchapter, the entity to which the business is transferred: 27 
 (A)  Shall apply for a new permit under this subchapter; 28 
 (B)  May be issued a new permit under this subchapter; and 29 
 (C)  May operate under the selling entity's permit for no 30 
more than thirty (30) days from the date of the sale. 31 
 (2)  When a partnership or limited liability company permitted 32 
under this subchapter changes, removes, or replaces the managing partner, 33 
managing member, president, or chief executive officer: 34 
 (A)  The existing permit issued under this subchapter is 35 
void; and 36    	SB533 
 
 	32 	03/20/2025 11:19:12 AM JMB498 
 (B)  The partnership or limited liability company: 1 
 (i)  Shall apply for a new permit under this 2 
subchapter; 3 
 (ii) May be issued a new permit under this 4 
subchapter; and 5 
 (iii) May operate under the voided permit for no more 6 
than thirty (30) days from the date of the change, removal, or replacement of 7 
the managing partner, managing member, president, or chief executive officer. 8 
 (3)  When a nonpublicly traded corporation permitted under this 9 
subchapter changes, removes, or replaces the president or chief executive 10 
officer named on the permit or changes, removes, or replaces a stockholder 11 
who owns fifty percent (50%) or more of the total voting shares of the 12 
nonpublicly traded corporation's stock: 13 
 (A)  The permit issued under this subchapter is void; and 14 
 (B)  The nonpublicly traded corporation: 15 
 (i)  Shall apply for a new permit under this 16 
subchapter; 17 
 (ii) May be issued a new permit under this 18 
subchapter; and 19 
 (iii) May operate under the voided permit for no more 20 
than thirty (30) days from the date of the change, removal, or replacement of 21 
the president, chief executive officer, or stockholder. 22 
 (4)  When a publicly traded corporation permitted under this 23 
subchapter changes, removes, or replaces the president or chief executive 24 
officer named on the permit or changes, removes, or replaces a stockholder 25 
who owns fifty percent (50%) or more of the total voting shares of the 26 
publicly traded corporation's stock: 27 
 (A)  The permit issued under this subchapter is void; and 28 
 (B)  The publicly traded corporation: 29 
 (i)  Shall apply for a new permit under this 30 
subchapter; 31 
 (ii) May be issued a new permit under this 32 
subchapter; and 33 
 (iii) May operate under the voided permit for no more 34 
than thirty (30) days from the date of the change, removal, or replacement of 35 
the president, chief executive officer, or stockholder. 36    	SB533 
 
 	33 	03/20/2025 11:19:12 AM JMB498 
 (e)  An entity may apply for and be issued a permit under this 1 
subchapter in advance of the effective date of the permit to facilitate 2 
continuity of business operations. 3 
 4 
 20-56-405.  Permits — Location — Background check required. 5 
 (a)  A retail, wholesale, or manufacturer permit shall not be issued to 6 
a residential address, a mobile structure or vehicle, or for an address not 7 
zoned appropriately for the business seeking to secure the permit. 8 
 (b)  A permit shall not be issued to: 9 
 (1)  A person who has pleaded guilty or nolo contendere to or 10 
been found guilty of a felony; or 11 
 (2)  A business owned or operated, in whole or in part, by a 12 
person who has pleaded guilty or nolo contendere to or been found guilty of a 13 
felony. 14 
 (c)  Arkansas Tobacco Control shall conduct a criminal background check 15 
on each permit applicant and application, utilizing its Arkansas Crime 16 
Information Center access as a law enforcement agency, in accordance with §§ 17 
12-12-1008 — 12-12-1011. 18 
 19 
 20-56-406.  Permits — Annual privilege fees. 20 
 (a)  The annual privilege fee for each permit authorized by this 21 
subchapter is established as follows: 22 
 (1)  Wholesale Hemp-derived Products Permit.............$5,000 23 
 (2)  Retail Hemp-derived Products Permit.............$5,000 24 
 (3)  Manufacturer Hemp -derived Products Permit.............$5,000 25 
 (b)(1)  All permits issued under this subchapter shall expire on June 26 
30 following the effective date of issuance. 27 
 (2)(A)  Upon the failure to timely renew a permit issued under 28 
this subchapter, a late fee of two (2) times the amount of the appropriate 29 
permit fee shall be owed in addition to the annual privilege fee for the 30 
permit. 31 
 (B)  An expired permit that is not renewed before September 32 
1 following the expiration of the permit shall not be renewed, and the holder 33 
of the expired permit shall submit an application for a new permit. 34 
 (3)  A permit shall not be issued to the applicant until the late 35 
fee and the permit fee have been paid. 36    	SB533 
 
 	34 	03/20/2025 11:19:12 AM JMB498 
 (c)  A permit issued under this subchapter shall not be renewed for a 1 
permit holder who is delinquent more than ninety (90) days on a privilege 2 
fee, tax relating to the sale or dispensing of hemp -derived products, or any 3 
other state and local tax due to the Secretary of the Department of Finance 4 
and Administration. 5 
 (d)  A person who is delinquent more than ninety (90) days on a state 6 
or local tax may not renew or obtain a permit issued under this subchapter 7 
except upon certification that the permit holder has entered into a repayment 8 
agreement with the Department of Finance and Administration and is current on 9 
the payments. 10 
 (e)  A permit holder who has unpaid fees, civil penalties, or an 11 
unserved permit suspension may not transfer, sell, or give hemp -derived 12 
product inventory of the business associated with the permit to a third party 13 
until all fees and civil penalties are paid in full and all suspensions are 14 
completed successfully, nor shall any third party be issued a new permit for 15 
the business location. 16 
 (f)  Each manufacturer, wholesaler, and retailer shall retain copies of 17 
all invoices for the purchase or sale of any hemp -derived products for a 18 
period of at least ten (10) years subject to examination by the Secretary of 19 
the Department of Finance and Administration and the Director of Arkansas 20 
Tobacco Control or their authorized agents upon demand at any time during 21 
regular business hours. 22 
 (g)  A retailer shall: 23 
 (1)  Maintain copies of at least the last three hundred sixty -24 
five (365) days of hemp -derived product invoices, which the retailer shall 25 
provide immediately upon demand; 26 
 (2)(A)  Make the invoices that are older than three hundred 27 
sixty-five (365) days available upon demand at any time during normal 28 
business hours in the retail store. 29 
 (B)  Except as provided in subdivision (g)(2)(C) of this 30 
section, an agent of Arkansas Tobacco Control may determine a reasonable time 31 
frame for which invoices are to be provided under subdivision (g)(2)(A) of 32 
this section. 33 
 (C)  An invoice that is provided seventy -two (72) hours or 34 
more after the demand shall not be considered for purposes of determining a 35 
violation of this subsection; 36    	SB533 
 
 	35 	03/20/2025 11:19:12 AM JMB498 
 (3)  Retain invoices for all hemp -derived products in the retail 1 
store even if the invoice for the hemp -derived products is older than three 2 
(3) years; 3 
 (4)  Maintain a copy of the signed server awareness forms for 4 
each employee of the retailer who engages in the sale of hemp -derived 5 
products, which the retailer shall provide immediately upon demand; 6 
 (5)(A)  Maintain a copy of any complete transfer forms showing: 7 
 (i)  The hemp-derived products that were transferred; 8 
 (ii) The permitted location from which the hemp -9 
derived products were transferred; and 10 
 (iii) When the transfer occurred. 11 
 (B)  A transfer form shall be completed contemporaneously 12 
with the transfer and shall be provided immediately by the retailer upon 13 
demand; and 14 
 (6)  If any inventory was submitted with a permit application, 15 
maintain a copy of the submitted inventory form, which the retailer shall 16 
provide immediately upon demand. 17 
 (h)  A wholesaler and manufacturer shall: 18 
 (1)  Maintain ten (10) years of hemp -derived product invoices 19 
that are available upon demand during normal business hours in the permitted 20 
location; and 21 
 (2)  Permit Arkansas Tobacco Control and authorized personnel of 22 
Arkansas Tobacco Control to enter into and inspect stock of hemp -derived 23 
products, and any documents and records relating to receipts and 24 
disbursements of hemp -derived products. 25 
 (i)  An invoice from a wholesaler to a retailer shall contain the name 26 
or other identifying information of the wholesaler and the retailer. 27 
 (j)(1)  A nonresident wholesaler shall also keep a record of all hemp	-28 
derived products purchased for distribution within this state. 29 
 (2)  All books, records, and memoranda pertaining to the purchase 30 
and sale of the hemp -derived products under subdivision (j)(1) of this 31 
section shall be subject to inspection by Arkansas Tobacco Control. 32 
 (k)  Authorized personnel of Arkansas Tobacco Control shall not release 33 
to the Arkansas Tobacco Control Board or to the public any information 34 
identifying customers of the manufacturer, wholesaler, or warehouse except 35 
when necessary to notify the board of alleged violations of this subchapter. 36    	SB533 
 
 	36 	03/20/2025 11:19:12 AM JMB498 
 1 
 20-56-407.  Permits — Not transferable — Duplicates. 2 
 (a)  A permit under this subchapter is not: 3 
 (1)  Transferable to a subsequent owner or operator; or 4 
 (2)  Transferable to a different physical location unless the 5 
permit holder obtains permission from the Director of Arkansas Tobacco 6 
Control. 7 
 (b)  A person purchasing an existing permitted retail location may 8 
operate under the selling owner's permit for no more than thirty (30) days 9 
from the date of the sale. 10 
 (c)  When a permit is lost by a permit holder, a duplicate permit may 11 
be issued upon application and for a fee of five dollars ($5.00) when 12 
sufficient proof has been given to the Director of Arkansas Tobacco Control. 13 
 14 
 20-56-408.  Permits — Suspension or revocation. 15 
 (a)  All permits issued under this subchapter shall be suspended or 16 
revoked by the Director of Arkansas Tobacco Control for any violation of this 17 
subchapter or the rules pertaining to this subchapter, subject to a hearing 18 
before the Arkansas Tobacco Control Board at the next regularly scheduled 19 
board meeting. 20 
 (b)  The director may revoke all permits to deal in hemp -derived 21 
products associated with any person who is convicted of or pleads guilty or 22 
nolo contendere to criminally violating this subchapter, subject to a hearing 23 
before the board at the next regularly scheduled board meeting. 24 
 25 
 20-56-409.  Advertising prohibitions and packaging requirements. 26 
 (a)  A hemp-derived product distributed or offered for sale in this 27 
state shall include the following information on the product label or product 28 
packaging: 29 
 (1)  The name of the hemp -derived product manufacturer, whether 30 
in-state or out-of-state, and distributor, whether in -state or out-of-state; 31 
 (2)  Product labeling clearly showing that the product contains 32 
material derived from hemp and not marijuana or medical marijuana; and 33 
 (3)  Any other marking, words, statement, or symbol as required 34 
by Arkansas Tobacco Control through rules. 35 
 (b)  A person shall not advertise, market, or offer for sale in this 36    	SB533 
 
 	37 	03/20/2025 11:19:12 AM JMB498 
state any hemp-derived product by using, in the labeling or design of the 1 
product, its packaging, or in its advertising or marketing materials, trade 2 
dress, trademarks, branding, or other related imagery that: 3 
 (1)  Imitates or replicates those of food brands or other related 4 
products that are marketed to or are commonly associated with children or 5 
minors, including without limitation breakfast cereal, cookies, juice drinks, 6 
soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 7 
 (2)  Depicts or signifies characters or symbols that are known to 8 
a reasonable person to appeal primarily to or are commonly associated with 9 
children or minors, including without limitation superheroes, cartoons or 10 
cartoon characters, including anime characters, comic book characters, video 11 
game characters, television show characters, movie characters, mythical 12 
creatures, unicorns, or that otherwise incorporates related imagery or 13 
scenery; or 14 
 (3)  Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 15 
or “cupcakes” or any variant of these terms, or any other term referencing a 16 
type or brand of candy, cakes, pastries, or pies, including types or brands 17 
of candy, cakes, pastries, or pies that do not include the words “candy”, 18 
“candies”, “cake”, “cakes”, “pies”, or “cupcakes” in their names, labels, or 19 
slogans. 20 
 21 
 20-56-410.  Testing. 22 
 (a)  All hemp-derived products sold in this state shall be tested by an 23 
approved laboratory. 24 
 (b)  An approved laboratory shall be an independent third -party 25 
laboratory. 26 
 (c)  A hemp-derived product sold in this state shall be tested for the 27 
following and marked as to the hemp -derived product chemical makeup before 28 
being sold to consumers: 29 
 (1)  Cannabinoid profile; 30 
 (2)  Solvents; 31 
 (3)  Pesticides; 32 
 (4)  Microbials; 33 
 (5)  Heavy metals; and 34 
 (6)  Any non-hemp-based substance. 35 
 (d)  A hemp-derived product shall not be distributed or sold in this 36    	SB533 
 
 	38 	03/20/2025 11:19:12 AM JMB498 
state without a certificate of analysis from an approved laboratory that 1 
confirms: 2 
 (1)  The hemp-derived product was tested by an approved 3 
laboratory; 4 
 (2)  A tested representative sample of the hemp -derived product 5 
contained a total delta -9 tetrahydrocannabinol concentration that did not 6 
exceed three-tenths of one percent (0.3%) under this subchapter; and 7 
 (3)  A detailed analysis and list of chemical makeup of the 8 
tested hemp-derived product under subsection (c) of this section. 9 
 (e)  Arkansas Tobacco Control may periodically sample, analyze, and 10 
test any hemp-derived product located in this state. 11 
 (f)  The Director of Arkansas Tobacco Control shall: 12 
 (1)  Investigate and issue subpoenas to any permittee or approved 13 
laboratory used by a permittee that the director has reasonable suspicion of 14 
intentionally producing falsified test results on hemp -derived products; and 15 
 (2)  Promulgate rules for the enforcement of this section and set 16 
penalties for any violation of the rules. 17 
 18 
 20-56-411.  Providing minors with hemp -derived products — Purchase, 19 
use, or possession prohibited. 20 
 (a)(1)  It is unlawful for any person to give, barter, or sell to a 21 
minor a hemp-derived product. 22 
 (2)  Except as provided in subdivision (a)(3) of this section, a 23 
person who pleads guilty or nolo contendere to or is found guilty of 24 
violating subdivision (a)(1) of this section is guilty of a Class A 25 
misdemeanor. 26 
 (3)  An employee or owner of a retail location permitted under 27 
this subchapter who violates subdivision (a)(1) of this section while inside 28 
the retail location upon conviction is subject to a fine not to exceed one 29 
hundred dollars ($100) per violation. 30 
 (b)(1)  It is unlawful for a minor to: 31 
 (A)  Use or possess or to purchase or attempt to purchase a 32 
hemp-derived product; or 33 
 (B)  For the purpose of obtaining or attempting to obtain a 34 
hemp-derived product, falsely represent himself or herself not to be a minor 35 
by displaying proof of age that is false, fraudulent, or not actually proof 36    	SB533 
 
 	39 	03/20/2025 11:19:12 AM JMB498 
of the minor's age. 1 
 (2)  Any hemp-derived product found in the possession of a minor 2 
may be confiscated and destroyed by a law enforcement officer. 3 
 (c)(1)  It is not an offense under subsection (b) of this section if: 4 
 (A)  The minor was acting at the direction of an authorized 5 
agent of Arkansas Tobacco Control to enforce or ensure compliance with laws 6 
relating to the prohibition of the sale of hemp -derived product to minors; 7 
 (B)  The minor was acting at the direction of an authorized 8 
agent of the Division of Aging, Adult, and Behavioral Health Services of the 9 
Department of Human Services to compile statistical data relating to the sale 10 
of hemp-derived products to minors; 11 
 (C)  The minor was acting at the request of a permit holder 12 
to assist the permit holder by performing a check on the permit holder's own 13 
retail business to see if the permit holder's employees would sell hemp	-14 
derived products to the minor; or 15 
 (D)  The minor was acting as an agent of a retail permit 16 
holder within the scope of employment. 17 
 (2)  A minor performing activities under subdivision (c)(1) of 18 
this section shall: 19 
 (A)  Display the appearance of a minor; 20 
 (B)  Have the written consent of the minor's parent or 21 
guardian to perform the activity on file with the agency utilizing the minor; 22 
and 23 
 (C)(i)  Present a true and correct identification if asked. 24 
 (ii) Any failure on the part of a minor to provide 25 
true and correct identification upon request is a defense to any action under 26 
this section or a civil action under § 26 -57-256. 27 
 (d)  Any person who sells hemp -derived products has the right to deny 28 
the sale of any hemp -derived product to any person. 29 
 (e)  It is unlawful for any person who has been issued a permit or a 30 
license under this subchapter to fail to display in a conspicuous place a 31 
sign indicating that the sale of hemp -derived products to or purchase or 32 
possession of hemp-derived products by a minor is prohibited by law. 33 
 (f)  It is unlawful for any manufacturer whose hemp -derived product is 34 
distributed in this state and any person who has been issued a permit or 35 
license under this subchapter to distribute a free sample of any hemp	-derived 36    	SB533 
 
 	40 	03/20/2025 11:19:12 AM JMB498 
product, or any component of a hemp -derived product or coupon that entitles 1 
the holder of the coupon to any free sample of any hemp -derived product, or 2 
any component of a hemp -derived product: 3 
 (1)  In or on any public street or sidewalk within five hundred 4 
feet (500′) of any playground, public school, or other facility when the 5 
playground, public school, or other facility is being used primarily by 6 
minors for recreational, educational, or other purposes; or 7 
 (2)  To any minor. 8 
 (g)  It is unlawful for any person that has been issued a permit or 9 
license under this subchapter to: 10 
 (1)  Sell or distribute a hemp -derived product through a self -11 
service display, a vending machine, or an order executed solely over the 12 
internet or similar means; or 13 
 (2)  Advertise or promote hemp -derived products in a manner that 14 
is intended to appeal to children. 15 
 (h)  Any retail permit holder or license holder who violates any 16 
provision in this section is deemed guilty of a violation and subject to 17 
penalties under § 26 -57-256. 18 
 (i)(1)  A notice of an alleged violation of this section shall be given 19 
to the holder of a retail permit or license or an agent of the holder within 20 
ten (10) days of the alleged violation. 21 
 (2)(A)  The notice under subdivision (i)(1) of this section shall 22 
contain the date and time of the alleged violation. 23 
 (B)(i)  The notice under subdivision (i)(1) of this section 24 
shall also include either the name of the person making the alleged sale or 25 
information reasonably necessary to determine the location in the store that 26 
allegedly made the sale. 27 
 (ii)  When appropriate, information under subdivision 28 
(i)(2)(B)(i) of this section should include, but not be limited to, the: 29 
 (a)  Cash register number of the sale in the 30 
store; 31 
 (b)  Physical location of the sale in the 32 
store; and 33 
 (c)  If possible, the lane or aisle number of 34 
the sale in the store. 35 
 (j)  Notwithstanding the provisions of subsection (h) of this section, 36    	SB533 
 
 	41 	03/20/2025 11:19:12 AM JMB498 
the court shall consider the following factors when reviewing a possible 1 
violation: 2 
 (1)  The business has adopted and enforced a written policy 3 
against selling hemp -derived products to minors; 4 
 (2)  The business has informed its employees of the applicable 5 
laws regarding the sale of hemp -derived products to minors; 6 
 (3)  The business has required employees to verify the age of a 7 
customer attempting to purchase a hemp -derived product by way of photographic 8 
identification; 9 
 (4)  The business has established and imposed disciplinary 10 
sanctions for noncompliance; and 11 
 (5)  That the appearance of the purchaser of the hemp -derived 12 
product was such that an ordinary prudent person would believe him or her to 13 
be of legal age to make the purchase. 14 
 (k)  A person convicted of violating any provision of this section 15 
whose permit or license to distribute or sell a hemp -derived product is 16 
suspended or revoked upon conviction shall surrender to the court any permit 17 
or license to distribute or sell a hemp -derived product, and the court shall 18 
transmit the permit or license to distribute or sell a hemp -derived product 19 
to the Director of Arkansas Tobacco Control: 20 
 (1)  To suspend or revoke the person's permit or license to 21 
distribute or sell a hemp -derived product and to not renew the permit or 22 
license; and 23 
 (2)  Not to issue any new permit or license to that person for 24 
the period of time determined by the court in accordance with this section. 25 
 26 
 20-56-412.  Enforcement — Penalties. 27 
 (a)  It is the duty of all state, county, and city officers to assist 28 
Arkansas Tobacco Control in enforcing this subchapter. 29 
 (b)  A person within the jurisdiction of this state who is not 30 
permitted to sell hemp -derived products to retailers or consumers and who 31 
sells, takes orders from, delivers, or causes to be delivered immediately or 32 
in the future any hemp -derived products to retailers or consumers in the 33 
State of Arkansas is guilty of a Class A misdemeanor. 34 
 (c)  A person engaged in buying or selling hemp -derived products in 35 
this state without first obtaining the proper permit upon conviction is 36    	SB533 
 
 	42 	03/20/2025 11:19:12 AM JMB498 
guilty of a Class A misdemeanor. 1 
 (d)  This subchapter does not prohibit in any form the continuous 2 
transportation through Arkansas of the plant Cannabis sativa L., and any part 3 
of that plant, including the seeds thereof and all derivatives, extracts, 4 
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 5 
not, with a total delta -9 tetrahydrocannabinol concentration of not more than 6 
three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 7 
hemp producer in another state to a licensed hemp handler in another state. 8 
 9 
 20-56-413.  Rules. 10 
 The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 11 
may promulgate rules for the proper enforcement of their powers and duties 12 
under this subchapter, including without limitation the regulation of 13 
processing, transportation, delivery, sale, and purchase of hemp -derived 14 
products in accordance with this subchapter and the power to levy penalties 15 
for violations of this subchapter. 16 
 17 
 SECTION 11.  Arkansas Code § 26 -57-247(b), effective until the 18 
contingency in Acts 2023, No. 629, § 17, is met, concerning those unstamped 19 
and untaxed items that may be seized by the Director of Arkansas Tobacco 20 
Control, is amended to read as follows: 21 
 (b)  The Director of Arkansas Tobacco Control may seize and hold for 22 
disposition of the courts or the Arkansas Tobacco Control Board all tobacco 23 
products, vapor products, alternative nicotine products, or e-liquid 24 
products, consumable hemp products, or intoxicating hemp products found in 25 
the possession of a person dealing in, or a consumer of, tobacco products, 26 
vapor products, alternative nicotine products, or e-liquid products, 27 
consumable hemp products, or intoxicating hemp products if: 28 
 (1)  Prima facie evidence exists that the full amount of excise 29 
tax due on the tobacco products has not been paid to the Secretary of the 30 
Department of Finance and Administration; 31 
 (2)  Tobacco products, vapor products, alternative nicotine 32 
products, or e-liquid products are in the possession of a wholesaler who does 33 
not possess a current Arkansas wholesale permit; 34 
 (3)  A retail establishment does not possess a current Arkansas 35 
retail permit; 36    	SB533 
 
 	43 	03/20/2025 11:19:12 AM JMB498 
 (4)  The tobacco products, vapor products, alternative nicotine 1 
products, or e-liquid products have been offered for sale to the public at 2 
another location without a current Arkansas retail permit .; or 3 
 (5)  Consumable hemp products or intoxicating hemp products are 4 
possessed, sold, or offered for sale in violation of § 20 -56-501 et seq. 5 
 6 
 SECTION 12.  Arkansas Code § 26 -57-247, effective if the contingency in 7 
Acts 2023, No. 629, § 17, is met, is repealed. 8 
 26-57-247.  Seizure, forfeiture, and disposition of tobacco products 9 
and other property. 10 
 (a)  Cigarettes to which stamps have not been affixed as provided by 11 
law are subject to seizure and shall be held as evidence for prosecution. 12 
 (b)  The Director of Arkansas Tobacco Control may seize and hold for 13 
disposition of the courts or the Arkansas Tobacco Control Board all tobacco 14 
products, vapor products, alternative nicotine products, e -liquid products, 15 
or hemp-derived products found in the possession of a person dealing in, or a 16 
consumer of, tobacco products, vapor products, alternative nicotine products, 17 
e-liquid products, or hemp -derived products if: 18 
 (1)  Prima facie evidence exists that the full amount of excise 19 
tax due on the tobacco products has not been paid to the Secretary of the 20 
Department of Finance and Administration; 21 
 (2)  Tobacco products, vapor products, alternative nicotine 22 
products, or e-liquid products are in the possession of a wholesaler who does 23 
not possess a current Arkansas wholesale permit; 24 
 (3)  A retail establishment does not possess a current Arkansas 25 
retail permit; 26 
 (4)  The tobacco products, vapor products, alternative nicotine 27 
products, or e-liquid products have been offered for sale to the public at 28 
another location without a current Arkansas retail permit; or 29 
 (5)  Hemp-derived products are possessed, sold, or offered for 30 
sale in violation of § 20 -56-401 et seq. 31 
 (c)  Property, including money, used to facilitate a violation of this 32 
subchapter or the Unfair Cigarette Sales Act, § 4 -75-701 et seq., may be 33 
seized and forfeited to the state. 34 
 (d)(1)  A prosecuting attorney may institute a civil action against a 35 
person who is convicted of a criminal violation under this subchapter or the 36    	SB533 
 
 	44 	03/20/2025 11:19:12 AM JMB498 
Unfair Cigarette Sales Act, § 4 -75-701 et seq., to obtain a judgment for: 1 
 (A)  Damages in an amount equal to the value of the 2 
property, funds, or a monetary instrument involved in the violation; 3 
 (B)  The proceeds acquired by a person involved in the 4 
enterprise or by reason of conduct in furtherance of the violation; and 5 
 (C)  Costs incurred by Arkansas Tobacco Control in the 6 
investigation, prosecution, and adjudication of criminal, civil, and 7 
administrative proceedings. 8 
 (2)  The standard of proof in an action brought under subdivision 9 
(d)(1) of this section is preponderance of the evidence. 10 
 (e)  The following are subject to forfeiture under this section upon 11 
order by a circuit court: 12 
 (1)  Tobacco products, vapor products, alternative nicotine 13 
products, or e-liquid products distributed, dispensed, or acquired in 14 
violation of this subchapter; 15 
 (2)  Raw materials, products, or equipment used or intended for 16 
use in manufacturing, compounding, processing, delivering, importing, or 17 
exporting a tobacco product, vapor product, alternative nicotine product, or 18 
e-liquid product in violation of this subchapter; 19 
 (3)  Property that is used or intended for use as a container for 20 
property described in subdivision (e)(1) or subdivision (e)(2) of this 21 
section; 22 
 (4)(A)  Except as provided in subdivision (e)(4)(B) of this 23 
section, a conveyance, including an aircraft, vehicle, or vessel, that is 24 
used or intended to be used to transport or in any manner to facilitate the 25 
transportation for the purpose of sale or receipt of property described in 26 
subdivision (e)(1) or subdivision (e)(2) of this section. 27 
 (B)(i)  A conveyance used by a person as a common carrier 28 
in the transaction of business as a common carrier is not subject to 29 
forfeiture under this section unless it appears that the owner or other 30 
person in charge of the conveyance is a consenting party or privy to a 31 
violation of this subchapter. 32 
 (ii) A conveyance is not subject to forfeiture under 33 
this section by reason of an act or omission established by the owner of the 34 
conveyance to have been committed or omitted without his or her knowledge or 35 
consent. 36    	SB533 
 
 	45 	03/20/2025 11:19:12 AM JMB498 
 (C)  Upon a showing described in subdivision (e)(4)(B)(i) 1 
of this section by the owner or interest holder of a conveyance, the 2 
conveyance may nevertheless be forfeited if the prosecuting attorney 3 
establishes that the owner or interest holder either knew or should 4 
reasonably have known that the conveyance would be used to transport or in 5 
any manner to facilitate the transportation for the purpose of sale or 6 
receipt of property described in subdivision (e)(1) or subdivision (e)(2) of 7 
this section. 8 
 (D)  A conveyance encumbered by a bona fide security 9 
interest is subject to the interest of the secured party if the secured party 10 
neither had knowledge of nor consented to an act or omission in violation of 11 
this subchapter; 12 
 (5)  A book, record, or research product or material, including a 13 
formula, microfilm, tape, or data that is used or intended for use in 14 
violation of this subchapter; 15 
 (6)(A)  Except as provided in subdivision (e)(6)(B) of this 16 
section, a thing of value, including: 17 
 (i)  Firearms purchased from the proceeds of the sale 18 
of untaxed tobacco products, vapor products, alternative nicotine products, 19 
or e-liquid products in violation of this subchapter or used in furtherance 20 
of a criminal offense as described in § 26 -57-245; 21 
 (ii) Proceeds or profits traceable to an exchange 22 
described in subdivision (e)(6)(A)(i) of this section; and 23 
 (iii) Money, negotiable instruments, or security used 24 
or intended to be used to facilitate a violation of this subchapter. 25 
 (B)  Property shall not be forfeited under subdivision 26 
(e)(6)(A) of this section to the extent of the interest of an owner by reason 27 
of an act or omission established by him or her by a preponderance of the 28 
evidence to have been committed or omitted without his or her knowledge or 29 
consent; 30 
 (7)(A)  Money, coins, or currency found in close proximity to a 31 
forfeitable tobacco product, vapor product, alternative nicotine product, or 32 
e-liquid product or a forfeitable record of an importation of a tobacco 33 
product, vapor product, alternative nicotine product, or e -liquid product is 34 
presumed to be forfeitable under this section. 35 
 (B)  The burden of proof is upon a claimant of the money, 36    	SB533 
 
 	46 	03/20/2025 11:19:12 AM JMB498 
coins, or currency to rebut the presumption in subdivision (e)(7)(A) of this 1 
section by a preponderance of the evidence; and 2 
 (8)(A)  Except as provided in subdivision (e)(8)(B) of this 3 
section, real property if it substantially assisted in, facilitated in any 4 
manner, or was used or intended for use in the commission of any act 5 
prohibited by this subchapter. 6 
 (B)(i)  Real property is not subject to forfeiture under 7 
this section by reason of an act or omission established by the owner of the 8 
real property by a preponderance of the evidence to have been committed or 9 
omitted without his or her knowledge or consent. 10 
 (ii) A forfeiture of real property encumbered by a 11 
mortgage or other lien is subject to the interest of the secured party if the 12 
secured party neither had knowledge of nor consented to an act or omission in 13 
violation of this subchapter. 14 
 (iii) If the circuit court finds by a preponderance 15 
of the evidence that grounds for a forfeiture exist under this section, the 16 
court shall enter an order requiring the forfeiture of the real property. 17 
 (C)  Upon an order of forfeiture of real property, the 18 
order shall be filed on the day issued and shall have prospective effect. 19 
 (D)  A forfeiture of real property does not affect the 20 
title of a bona fide purchaser who purchased the real property before the 21 
issuance of the order, and the order has no force or effect on the title of 22 
the bona fide purchaser. 23 
 (E)  A lis pendens filed in connection with an action 24 
pending under this section that may result in the forfeiture of real property 25 
is effective only from the time filed and has no retroactive effect. 26 
 (f)  A tobacco product, vapor product, alternative nicotine product, or 27 
e-liquid product that is possessed, transferred, sold, or offered for sale in 28 
violation of this subchapter may be seized and immediately forfeited to the 29 
state. 30 
 (g)(1)  Property subject to forfeiture under this subchapter may be 31 
seized by a law enforcement agent upon process issued by a circuit court 32 
having jurisdiction over the property on petition filed by the prosecuting 33 
attorney of the judicial circuit. 34 
 (2)  Seizure without process may be made if: 35 
 (A)  The seizure is incident to an arrest or a search under 36    	SB533 
 
 	47 	03/20/2025 11:19:12 AM JMB498 
a search warrant or an inspection under the regulatory authority of Arkansas 1 
Tobacco Control; 2 
 (B)  The property subject to seizure has been the subject 3 
of a prior judgment in favor of the state in a criminal injunction or 4 
forfeiture proceeding based upon this subchapter; 5 
 (C)  The seizing law enforcement agency has probable cause 6 
to believe that the property is directly or indirectly dangerous to health or 7 
safety; or 8 
 (D)  The seizing law enforcement agency has probable cause 9 
to believe that the property was used or is intended to be used in violation 10 
of this subchapter. 11 
 (h)(1)  A state or local law enforcement agency shall not transfer 12 
property seized by the state or local agency under this section to a federal 13 
entity for forfeiture under federal law unless the circuit court having 14 
jurisdiction over the property enters an order, upon petition by the 15 
prosecuting attorney, authorizing the property to be transferred to the 16 
federal entity. 17 
 (2)  The transfer shall not be approved unless it reasonably 18 
appears that the activity giving rise to the investigation or seizure 19 
involves more than one (1) state or the nature of the investigation or 20 
seizure would be better pursued under federal law. 21 
 (i)(1)  Property seized for forfeiture under this section is not 22 
subject to replevin but is deemed to be in the custody of the seizing law 23 
enforcement agency subject only to an order or decree of the circuit court 24 
having jurisdiction over the property seized. 25 
 (2)  Subject to a need to retain the property as evidence, when 26 
property is seized under this subchapter, the seizing law enforcement agency 27 
may: 28 
 (A)  Remove the property to a place designated by the 29 
circuit court; 30 
 (B)  Place the property under constructive seizure, posting 31 
notice of pending forfeiture on it by: 32 
 (i)  Giving notice of pending forfeiture to its 33 
owners and interest holders; or 34 
 (ii) Filing notice of pending forfeiture in an 35 
appropriate public record relating to the property; 36    	SB533 
 
 	48 	03/20/2025 11:19:12 AM JMB498 
 (C)  Remove the property to a storage area for safekeeping 1 
or, if the property is a negotiable instrument or money or is not needed for 2 
evidentiary purposes, deposit it into an interest -bearing account; or 3 
 (D)  Provide for another agency or custodian, including an 4 
owner, secured party, mortgagee, or lienholder, to take custody of the 5 
property and service, maintain, and operate it as reasonably necessary to 6 
maintain its value in an appropriate location within the jurisdiction of the 7 
court. 8 
 (3)(A)  In case of transfer of property, a transfer receipt shall 9 
be prepared by the transferring agency. 10 
 (B)  The transfer receipt shall: 11 
 (i)  List a detailed and complete description of the 12 
property being transferred; 13 
 (ii) State to whom the property is being transferred 14 
and the source or authorization for the transfer; and 15 
 (iii) Be signed by both the transferor and the 16 
transferee. 17 
 (C)  Both transferor and transferee shall maintain a copy 18 
of the transfer receipt. 19 
 (4)  A person who acts as custodian of property under this 20 
section is not liable to any person on account of an act done in a reasonable 21 
manner in compliance with an order under this subchapter. 22 
 (j)(1)  Property seized by a state or local law enforcement officer 23 
under this section who is detached to, deputized or commissioned by, or 24 
working in conjunction with a federal agency remains subject to this section. 25 
 (2)(A)  If property is seized for forfeiture by a law enforcement 26 
agency under this section, the seizing law enforcement officer shall prepare 27 
and sign a confiscation report. 28 
 (B)(i)  The party from whom the property is seized shall 29 
also sign the confiscation report if present and shall immediately receive a 30 
copy of the confiscation report. 31 
 (ii) If the party refuses to sign the confiscation 32 
report, the confiscation report shall be signed by one (1) additional law 33 
enforcement officer, stating that the party refused to sign the confiscation 34 
report. 35 
 (C)  The original confiscation report shall be: 36    	SB533 
 
 	49 	03/20/2025 11:19:12 AM JMB498 
 (i)  Filed with the seizing law enforcement agency 1 
within forty-eight (48) hours after the seizure; and 2 
 (ii) Maintained in a separate file. 3 
 (D)  One (1) copy of the confiscation report shall be 4 
retained by the seizing law enforcement officer. 5 
 (3)  The confiscation report shall contain the following 6 
information: 7 
 (A)  A detailed description of the property seized 8 
including serial or model numbers and odometer or hour reading of vehicles or 9 
equipment; 10 
 (B)  The date of seizure; 11 
 (C)  The name and address of the party from whom the 12 
property was seized; 13 
 (D)  The reason for the seizure; 14 
 (E)  The location where the property will be held; 15 
 (F)  The seizing law enforcement officer's name; and 16 
 (G)  A signed statement by the seizing law enforcement 17 
officer stating that the confiscation report is true and complete. 18 
 (4)  Within three (3) business days after receiving the 19 
confiscation report, the seizing law enforcement agency shall forward a copy 20 
of the confiscation report to the prosecuting attorney for the district where 21 
the property was seized and to the director. 22 
 (5)(A)  Arkansas Legislative Audit shall notify the director and 23 
a circuit court in the county of a law enforcement agency, prosecuting 24 
attorney, or other public entity that the law enforcement agency, prosecuting 25 
attorney, or public entity is ineligible to receive forfeited funds, 26 
forfeited property, or grants from the council, if Arkansas Legislative Audit 27 
determines by its own investigation or upon written notice from the director 28 
that: 29 
 (i)  The law enforcement agency failed to complete 30 
and file the confiscation reports as required by this section; 31 
 (ii) The law enforcement agency, prosecuting 32 
attorney, or public entity has not properly accounted for the seized 33 
property; or 34 
 (iii) The prosecuting attorney has failed to comply 35 
with the notification requirement set forth in subdivision (m)(2) of this 36    	SB533 
 
 	50 	03/20/2025 11:19:12 AM JMB498 
section. 1 
 (B)  After the notice, the circuit court shall not issue an 2 
order distributing seized property to that law enforcement agency, 3 
prosecuting attorney, or public entity, nor shall a grant be awarded by the 4 
council to that law enforcement agency, prosecuting attorney, or public 5 
entity until: 6 
 (i)  The appropriate officials of the law enforcement 7 
agency, prosecuting attorney, or public entity have appeared before the 8 
Legislative Joint Auditing Committee; and 9 
 (ii) The Legislative Joint Auditing Committee has 10 
adopted a motion authorizing subsequent transfers of forfeited property to 11 
the law enforcement agency, prosecuting attorney, or public entity. 12 
 (C)(i)  If a law enforcement agency, prosecuting attorney, 13 
or other public entity is ineligible to receive forfeited property, the 14 
circuit court shall order money that would have been distributed to that law 15 
enforcement agency, prosecuting attorney, or public entity to be transmitted 16 
to the Treasurer of State for deposit into the Special State Assets 17 
Forfeiture Fund. 18 
 (ii) If the property is not cash, the circuit court 19 
shall order the property converted to cash under this section and the 20 
proceeds transmitted to the Treasurer of State for deposit into the Special 21 
State Assets Forfeiture Fund. 22 
 (D)  Moneys deposited into the Special State Assets 23 
Forfeiture Fund are not subject to recovery or retrieval by an ineligible law 24 
enforcement agency, prosecuting attorney, or other public entity. 25 
 (6)  The director shall establish by rule a standardized 26 
confiscation report form to be used by all law enforcement agencies, with 27 
specific instructions and guidelines concerning the nature and dollar value 28 
of all property, including firearms, to be included in the confiscation 29 
report and forwarded to the office of the local prosecuting attorney and the 30 
director under this subsection. 31 
 (k)(1)(A)  The prosecuting attorney shall initiate forfeiture 32 
proceedings by filing a complaint with the circuit clerk of the county where 33 
the property was seized and by serving the complaint on all known owners and 34 
interest holders of the seized property in accordance with the Arkansas Rules 35 
of Civil Procedure. 36    	SB533 
 
 	51 	03/20/2025 11:19:12 AM JMB498 
 (B)  The complaint may be based on in rem or in personam 1 
jurisdiction but shall not be filed to avoid the distribution requirements 2 
set forth in subdivision (l)(1) of this section. 3 
 (C)  The prosecuting attorney shall mail a copy of the 4 
complaint to the director within five (5) calendar days after filing the 5 
complaint. 6 
 (2)(A)  The complaint shall include a copy of the confiscation 7 
report and shall be filed within sixty (60) days after receiving a copy of 8 
the confiscation report from the seizing law enforcement agency. 9 
 (B)  In a case involving real property, the complaint shall 10 
be filed within sixty (60) days of the defendant's conviction on the charge 11 
giving rise to the forfeiture. 12 
 (3)(A)  The prosecuting attorney may file the complaint after the 13 
expiration of the time only if the complaint is accompanied by a statement of 14 
good cause for the late filing. 15 
 (B)  However, the complaint shall not be filed more than 16 
one hundred twenty (120) days after either the date of the seizure or, in a 17 
case involving real property, the date of the defendant's conviction. 18 
 (C)(i)  If the circuit court determines that good cause has 19 
not been established, the circuit court shall order that the seized property 20 
be returned to the owner or interest holder. 21 
 (ii) In addition, items seized but not subject to 22 
forfeiture under this section or subject to disposition under law or the 23 
Arkansas Rules of Criminal Procedure may be ordered returned to the owner or 24 
interest holder. 25 
 (iii) If the owner or interest holder cannot be 26 
determined, the court may order disposition of the property. 27 
 (4)  Within the time set forth in the Arkansas Rules of Civil 28 
Procedure, the owner or interest holder of the seized property shall file 29 
with the circuit clerk a verified answer to the complaint that shall include: 30 
 (A)  A statement describing the seized property and the 31 
owner's interest or interest holder's interest in the seized property with 32 
supporting documents to establish the owner's interest or interest holder's 33 
interest; 34 
 (B)  A certification by the owner or interest holder 35 
stating that he or she has read the document and that it has not been filed 36    	SB533 
 
 	52 	03/20/2025 11:19:12 AM JMB498 
for an improper purpose; 1 
 (C)  A statement setting forth any defense to forfeiture; 2 
and 3 
 (D)  The address at which the owner or interest holder will 4 
accept mail. 5 
 (5)(A)  If the owner or interest holder fails to file an answer, 6 
the prosecuting attorney may move for default judgment under the Arkansas 7 
Rules of Civil Procedure. 8 
 (B)(i)  If a timely answer has been filed, the prosecuting 9 
attorney has the burden of proving by a preponderance of the evidence that 10 
the seized property should be forfeited. 11 
 (ii) After the prosecuting attorney has presented 12 
proof, an owner or interest holder of the property seized is allowed to 13 
present evidence showing why the seized property should not be forfeited. 14 
 (iii) If the circuit court determines that grounds 15 
for forfeiting the seized property exist and that a defense to forfeiture has 16 
not been established by the owner or interest holder, the circuit court shall 17 
enter an order under this section. However, if the circuit court determines 18 
either that the prosecuting attorney has failed to establish that grounds for 19 
forfeiting the seized property exist or that the owner or interest holder has 20 
established a defense to forfeiture, the court shall order that the seized 21 
property be immediately returned to the owner or interest holder. 22 
 (l)(1)  If the circuit court having jurisdiction over the seized 23 
property finds upon a hearing by a preponderance of the evidence that grounds 24 
for a forfeiture exist under this subchapter, the circuit court shall enter 25 
an order: 26 
 (A)  To permit the law enforcement agency or prosecuting 27 
attorney to retain the seized property for law enforcement or prosecutorial 28 
purposes, subject to the following provisions: 29 
 (i)(a)  Seized property may not be retained for 30 
official use for more than three (3) years, unless the circuit court finds 31 
that the seized property has been used for law enforcement or prosecutorial 32 
purposes and authorizes continued use for those purposes on an annual basis. 33 
 (b)  At the end of the retention period, the 34 
seized property shall be sold and eighty percent (80%) of the proceeds shall 35 
be deposited into the tobacco control fund of the retaining law enforcement 36    	SB533 
 
 	53 	03/20/2025 11:19:12 AM JMB498 
agency or prosecuting attorney, and twenty percent (20%) of the proceeds 1 
shall be deposited into the State Treasury as special revenues to be credited 2 
to the Special State Assets Forfeiture Fund. 3 
 (c)  The retaining law enforcement agency or 4 
prosecuting attorney may sell the retained seized property during the time 5 
allowed for retention. However, the proceeds of the sale shall be distributed 6 
as set forth in subdivision (l)(1)(A)(i)(b) of this section; 7 
 (ii) If the circuit court determines that retained 8 
seized property has been used for personal use or by non -law enforcement 9 
personnel for non-law enforcement purposes, the circuit court shall order the 10 
seized property to be sold under § 5 -5-101(e) and (f), and the proceeds shall 11 
be deposited into the State Treasury as special revenues to be credited to 12 
the Special State Assets Forfeiture Fund; 13 
 (iii)(a)  A law enforcement agency may use forfeited 14 
property or money if the circuit court's order specifies that the forfeited 15 
property or money is forfeited to the prosecuting attorney, sheriff, chief of 16 
police, Division of Arkansas State Police, director, or Arkansas Highway 17 
Police Division of the Arkansas Department of Transportation. 18 
 (b)  After the order, the prosecuting attorney, 19 
sheriff, chief of police, Division of Arkansas State Police, director, or 20 
Arkansas Highway Police Division of the Arkansas Department of Transportation 21 
shall maintain an inventory of the forfeited property or money, be 22 
accountable for the forfeited property or money, and be subject to 23 
subdivision (j)(5) of this section with respect to the forfeited property or 24 
money; 25 
 (iv)(a)  An aircraft is forfeited to the office of 26 
the director and may be used only for tobacco, vapor product, alternative 27 
nicotine product, or e -liquid product smuggling interdiction efforts within 28 
the discretion of the director. 29 
 (b)  However, if the director determines that 30 
the aircraft should be sold, the proceeds of the sale shall be distributed as 31 
set forth in subdivision (l)(1)(A)(i)(b) of this section; 32 
 (v)  A firearm not retained for official use shall be 33 
disposed of in accordance with state and federal law; and 34 
 (vi) A tobacco product, vapor product, alternative 35 
nicotine product, or e -liquid product shall be destroyed pursuant to a court 36    	SB533 
 
 	54 	03/20/2025 11:19:12 AM JMB498 
order; 1 
 (B)(i)  To sell seized property that is not required by law 2 
to be destroyed and that is not harmful to the public. 3 
 (ii) Seized property described in subdivision 4 
(l)(1)(B)(i) of this section shall be sold at a public sale by the retaining 5 
law enforcement agency or prosecuting attorney under § 5 -5-101(e) and (f); or 6 
 (C)  To transfer a motor vehicle to a school district for 7 
use in a driver education course. 8 
 (2)  Disposition of forfeited property under this subsection is 9 
subject to the need to retain the forfeited property as evidence in any 10 
related proceeding. 11 
 (3)  Within three (3) business days after the entry of the order, 12 
the circuit clerk shall forward to the director copies of the confiscation 13 
report, the circuit court's order, and other documentation detailing the 14 
disposition of the seized property. 15 
 (m)(1)(A)  Subject to subdivision (j)(5) of this section, the proceeds 16 
of sales conducted under this section and moneys forfeited or obtained by 17 
judgment or settlement under this subchapter shall be deposited and 18 
distributed in the manner provided in this subsection. 19 
 (B)  Moneys received from a federal forfeiture for a 20 
violation of this subchapter shall be deposited and distributed under this 21 
section. 22 
 (2)(A)  The proceeds of a sale and moneys forfeited or obtained 23 
by judgment or settlement under this subchapter shall be deposited into the 24 
asset forfeiture fund of the prosecuting attorney and is subject to the 25 
following provisions: 26 
 (i)  If, during a calendar year, the aggregate amount 27 
of moneys deposited into the asset forfeiture fund exceeds twenty thousand 28 
dollars ($20,000) per county, the prosecuting attorney, within fourteen (14) 29 
days after that time, shall notify the circuit judges in the judicial 30 
district and the director; 31 
 (ii) Subsequent to the notification set forth in this 32 
section, twenty percent (20%) of the proceeds of an additional sale and 33 
additional moneys forfeited or obtained by judgment or settlement under this 34 
subchapter in the same calendar year shall be deposited into the State 35 
Treasury as special revenues to be credited to the Special State Assets 36    	SB533 
 
 	55 	03/20/2025 11:19:12 AM JMB498 
Forfeiture Fund, and the remainder shall be deposited into the asset 1 
forfeiture fund of the prosecuting attorney; 2 
 (iii) Failure by the prosecuting attorney to comply 3 
with the notification requirement set forth in this section renders the 4 
prosecuting attorney and an entity eligible to receive forfeited moneys or 5 
property from the prosecuting attorney ineligible to receive forfeited moneys 6 
or property, except as provided in this section; and 7 
 (iv) Twenty percent (20%) of moneys in excess of 8 
twenty thousand dollars ($20,000) that have been retained but not reported as 9 
required by this section are subject to recovery for deposit into the Special 10 
State Assets Forfeiture Fund. 11 
 (B)  The prosecuting attorney shall administer expenditures 12 
from the asset forfeiture fund, which is subject to audit by Arkansas 13 
Legislative Audit. Moneys distributed from the asset forfeiture fund shall be 14 
used only for law enforcement and prosecutorial purposes. Moneys in the asset 15 
forfeiture fund shall be distributed in the following order: 16 
 (i)  For the satisfaction of a bona fide security 17 
interest or lien; 18 
 (ii) For payment of a proper expense of the 19 
proceeding for forfeiture and sale, including expenses of seizure, 20 
maintenance of custody, advertising, and court costs; 21 
 (iii) Any balance under three hundred fifty thousand 22 
dollars ($350,000) shall be distributed proportionally so as to reflect 23 
generally the contribution of the appropriate local or state law enforcement 24 
or prosecutorial agency's participation in any activity that led to the 25 
seizure or forfeiture of the property or deposit of moneys under this 26 
subchapter; and 27 
 (iv) Any balance over three hundred fifty thousand 28 
dollars ($350,000) shall be forwarded to the director to be transferred to 29 
the State Treasury for deposit into the Special State Assets Forfeiture Fund 30 
for distribution under this section. 31 
 (C)(i)  For a forfeiture in an amount greater than three 32 
hundred fifty thousand dollars ($350,000) from which expenses are paid for a 33 
proceeding for forfeiture and sale under this section, an itemized accounting 34 
of the expenses shall be delivered to the director within ten (10) calendar 35 
days after the distribution of the funds. 36    	SB533 
 
 	56 	03/20/2025 11:19:12 AM JMB498 
 (ii) The itemized accounting shall include the 1 
expenses paid, to whom paid, and for what purposes the expenses were paid. 2 
 (3)(A)  Moneys received by a prosecuting attorney or law 3 
enforcement agency from a federal forfeiture for a violation of this 4 
subchapter shall be deposited and maintained in a separate account. 5 
 (B)  However, a balance over three hundred fifty thousand 6 
dollars ($350,000) shall be distributed as required under this section. 7 
 (4)  Other moneys shall not be maintained in the account except 8 
for interest income generated by the account. 9 
 (5)  Moneys in the account shall only be used for law enforcement 10 
and prosecutorial purposes consistent with governing federal law. 11 
 (6)  The account is subject to audit by Arkansas Legislative 12 
Audit. 13 
 (7)  A balance over three hundred fifty thousand dollars 14 
($350,000) shall be transferred to the State Treasury for deposit into the 15 
Special State Assets Forfeiture Fund in which it shall be maintained 16 
separately and distributed consistently with governing federal law and upon 17 
the advice of the director. 18 
 (n)  In personam jurisdiction may be based on a person's presence in 19 
the state or on his or her conduct in the state, as set out in § 16 -4-101(C), 20 
and is subject to the following additional provisions: 21 
 (1)  A temporary restraining order under this section may be 22 
entered ex parte on application of the state upon a showing that: 23 
 (A)  There is probable cause to believe that the property 24 
with respect to which the order is sought is subject to forfeiture under this 25 
section; and 26 
 (B)  Notice of the action would jeopardize the availability 27 
of the property for forfeiture; 28 
 (2)(A)  Notice of the entry of a temporary restraining order and 29 
an opportunity for hearing shall be afforded to a person known to have an 30 
interest in the property. 31 
 (B)  The hearing shall be held at the earliest possible 32 
date consistent with Rule 65 of the Arkansas Rules of Civil Procedure and is 33 
limited to the issues of whether: 34 
 (i)  There is a probability that the state will 35 
prevail on the issue of forfeiture and that failure to enter the temporary 36    	SB533 
 
 	57 	03/20/2025 11:19:12 AM JMB498 
restraining order will result in the property's being destroyed, conveyed, 1 
alienated, encumbered, disposed of, received, removed from the jurisdiction 2 
of the circuit court, concealed, or otherwise made unavailable for 3 
forfeiture; and 4 
 (ii) The need to preserve the availability of 5 
property through the entry of the requested temporary restraining order 6 
outweighs the hardship on an owner or interest holder against whom the 7 
temporary restraining order is to be entered; 8 
 (3)  The state has the burden of proof by a preponderance of the 9 
evidence to show that the defendant's property is subject to forfeiture; 10 
 (4)(A)  On a determination of liability of a person for conduct 11 
giving rise to forfeiture under this section, the circuit court shall enter a 12 
judgment of forfeiture of the property subject to forfeiture as alleged in 13 
the complaint and may authorize the prosecuting attorney or a law enforcement 14 
officer to seize property subject to forfeiture under this section not 15 
previously seized or not then under seizure. 16 
 (B)  The order of forfeiture shall be consistent with 17 
subsection (l) of this section. 18 
 (C)  In connection with the judgment, on application of the 19 
state, the circuit court may enter an appropriate order to protect the 20 
interest of the state in property ordered forfeited; and 21 
 (5)  Subsequent to the finding of liability and order of 22 
forfeiture, the following procedures apply: 23 
 (A)  The attorney for the state shall give notice of 24 
pending forfeiture in the manner provided in Rule 4 of the Arkansas Rules of 25 
Civil Procedure to an owner or interest holder who has not previously been 26 
given notice; 27 
 (B)  An owner of or interest holder in property that has 28 
been ordered forfeited and whose claim is not precluded may file a claim 29 
within thirty (30) days after initial notice of pending forfeiture or after 30 
notice under Rule 4 of the Arkansas Rules of Civil Procedure, whichever is 31 
earlier; and 32 
 (C)  The circuit court may amend the in personam order of 33 
forfeiture if the circuit court determines that a claimant has established 34 
that he or she has an interest in the property and that the interest is 35 
exempt under this section. 36    	SB533 
 
 	58 	03/20/2025 11:19:12 AM JMB498 
 (o)  The circuit court shall order the forfeiture of other property of 1 
a claimant or defendant up to the value of the claimant's or defendant's 2 
property found by the circuit court to be subject to forfeiture under this 3 
section if any of the forfeitable property had remained under the control or 4 
custody of the claimant or defendant and: 5 
 (1)  Cannot be located; 6 
 (2)  Was transferred or conveyed to, sold to, or deposited with a 7 
third party; 8 
 (3)  Is beyond the jurisdiction of the circuit court; 9 
 (4)  Was substantially diminished in value while not in the 10 
actual physical custody of the seizing law enforcement agency; 11 
 (5)  Was commingled with other property that cannot be divided 12 
without difficulty; or 13 
 (6)  Is subject to interest exempted from forfeiture under this 14 
subchapter. 15 
 (p)(1)  There is created on the books of law enforcement agencies and 16 
prosecuting attorneys a tobacco control fund. 17 
 (2)  The fund shall consist of moneys obtained under this section 18 
and other revenue as may be provided by law or ordinance. 19 
 (3)  Moneys in the tobacco control fund shall be appropriated on 20 
a continuing basis and are not subject to the Revenue Stabilization Law, § 21 
19-5-101 et seq. 22 
 (4)(A)  The fund shall be used for law enforcement and 23 
prosecutorial purposes. 24 
 (B)  Each prosecuting attorney shall submit to the Director 25 
of Arkansas Tobacco Control on or before June 30 of each year a report 26 
detailing moneys received and expenditures made from the tobacco control fund 27 
during the preceding twelve -month period. 28 
 (5)  The law enforcement agencies and prosecuting attorneys shall 29 
submit to the director on or before June 30 of each year a report detailing 30 
any moneys received and expenditures made from the tobacco control fund 31 
during the preceding twelve -month period. 32 
 (6)  Moneys from the tobacco control fund may not supplant other 33 
local, state, or federal funds. 34 
 (7)  The tobacco control fund is subject to audit by Arkansas 35 
Legislative Audit. 36    	SB533 
 
 	59 	03/20/2025 11:19:12 AM JMB498 
 1 
 SECTION 13.  Arkansas Code § 26 -57-249(b), effective until the 2 
contingency in Acts 2023, No. 629, § 17, is met, concerning the procedure for 3 
destruction of products upon conviction, is amended to read as follows: 4 
 (b)  Upon an administrative finding of guilty of any person charged 5 
with a violation of a state tobacco product, vapor product, alternative 6 
nicotine product, or e-liquid product, or consumable hemp product law or rule 7 
in a proceeding before the Arkansas Tobacco Control Board where the 8 
investigation resulted in the seizure of tobacco products, vapor products, 9 
alternative nicotine products, or e-liquid products, or consumable hemp 10 
products, the board shall issue an order to destroy the tobacco products, 11 
vapor products, alternative nicotine products, or e-liquid products, or 12 
consumable hemp products confiscated by Arkansas Tobacco Control or by any 13 
state, county, or municipal officer in this state. 14 
 15 
 SECTION 14.  Arkansas Code § 26 -57-249, effective if the contingency in 16 
Acts 2023, No. 629, § 17, is met, is repealed. 17 
 26-57-249.  Destruction of products upon conviction — Procedure. 18 
 (a)  Upon a criminal conviction of a person charged with a violation of 19 
a tobacco product, vapor product, alternative nicotine product, or e	-liquid 20 
product law or rule where the investigation resulted in the seizure of 21 
tobacco products, vapor products, alternative nicotine products, or e	-liquid 22 
products, the court shall issue an order to destroy the tobacco products, 23 
vapor products, alternative nicotine products, or e -liquid products 24 
confiscated by Arkansas Tobacco Control or by any state, county, or municipal 25 
officer in this state. 26 
 (b)  Upon an administrative finding of guilty of any person charged 27 
with a violation of a state tobacco product, vapor product, alternative 28 
nicotine product, e-liquid product, or hemp -derived product law or rule in a 29 
proceeding before the Arkansas Tobacco Control Board where the investigation 30 
resulted in the seizure of tobacco products, vapor products, alternative 31 
nicotine products, e -liquid products, or hemp -derived products, the board 32 
shall issue an order to destroy the tobacco products, vapor products, 33 
alternative nicotine products, e -liquid products, or hemp -derived products 34 
confiscated by Arkansas Tobacco Control or by any state, county, or municipal 35 
officer in this state. 36    	SB533 
 
 	60 	03/20/2025 11:19:12 AM JMB498 
 (c)  Every court of record in this state shall notify the Director of 1 
Arkansas Tobacco Control of the disposition made of each case in the court as 2 
to whether the defendant was convicted or acquitted. 3 
 (d)  Upon application of the director, the board or the court issuing a 4 
destruction order may instead release the tobacco products, vapor products, 5 
alternative nicotine products, or e -liquid products to the use and benefit of 6 
Arkansas Tobacco Control for suitable law enforcement or training purposes. 7 
 (e)(1)  If a court or the board issues a destruction order, the person 8 
charged with the violation is responsible for any destruction fees incurred 9 
by Arkansas Tobacco Control. 10 
 (2)  Destruction fees may vary but shall be determined by the 11 
current industry standard for the destruction of tobacco products, vapor 12 
products, alternative nicotine products, and e -liquid products. 13 
 14 
 SECTION 15.  Arkansas Code § 26 -57-255(g)(3), effective until the 15 
contingency in Acts 2023, No. 629, § 17, is met, concerning the powers and 16 
duties of the Arkansas Tobacco Control Board, is amended to read as follows: 17 
 (3)(A)  Conduct public hearings when appropriate regarding a 18 
permit authorized under this subchapter or in violation of this subchapter, 19 
the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-501 20 
et seq., or any other federal, state, or local statute, ordinance, rule, or 21 
regulation concerning the sale of tobacco products, vapor products, 22 
alternative nicotine products, or e-liquid products, or consumable hemp 23 
products to minors, or the rules promulgated by Arkansas Tobacco Control. 24 
 (B)  After notice and hearing held in accordance with the 25 
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 26 
finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4	-75-27 
701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 28 
Tobacco Control, the board may suspend or revoke any or all permits issued by 29 
the director to any person. 30 
 (C)  The board may levy a civil penalty in an amount not to 31 
exceed five thousand dollars ($5,000) for each violation against a person 32 
found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 33 
§ 4-75-701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 34 
Tobacco Control. 35 
 (D)  Each day of a violation is a separate violation. 36    	SB533 
 
 	61 	03/20/2025 11:19:12 AM JMB498 
 (E)  A civil penalty under subdivision (g)(3)(C) of this 1 
section is in addition to any penalties levied by the board under § 26	-57-2 
248. 3 
 (F)  In conducting a hearing under this subdivision (g)(3), 4 
the board may examine or cause to be examined under oath any witness and the 5 
books and records of a permitted person or other person; 6 
 7 
 SECTION 16.  Arkansas Code § 26 -57-255, effective if the contingency in 8 
Acts 2023, No. 629, § 17, is met, is repealed. 9 
 26-57-255.  Arkansas Tobacco Control Board — Creation — Definition.10 
 (a)  There is created the Arkansas Tobacco Control Board to consist of 11 
the following eight (8) members appointed by the Governor: 12 
 (1)  Two (2) members of the board shall be wholesalers of tobacco 13 
products, vapor products, alternative nicotine products, or e -liquid 14 
products; 15 
 (2)  Two (2) members of the board shall be retailers of tobacco 16 
products, vapor products, alternative nicotine products, or e -liquid 17 
products; and 18 
 (3)  Four (4) members of the board shall be members of the public 19 
at large who are not public employees or officials, at least one (1) of whom 20 
shall be an African-American, and two (2) of whom shall be appointed by the 21 
Governor after consulting the Arkansas Medical Society, Inc. and subject to 22 
confirmation by the Senate. 23 
 (b)  The Governor shall designate which member of the board shall act 24 
as chair and that person shall serve as chair for two (2) years unless his or 25 
her membership on the board ceases prior to the end of the two -year period. 26 
 (c)(1)  All members of the board shall be residents of the State of 27 
Arkansas and confirmed by the Senate. 28 
 (2)  The term of office shall be five (5) years. 29 
 (d)(1)  A minimum of five (5) members is required for a quorum. 30 
 (2)(A)  All action by the board shall be by a majority vote of 31 
the board members present at the regular or special meeting, and the board 32 
may take no official action in connection with a matter except at a regular 33 
or special meeting. 34 
 (B)  In the event of a tie vote of the members of the 35 
board, the Director of Arkansas Tobacco Control may cast the deciding vote. 36    	SB533 
 
 	62 	03/20/2025 11:19:12 AM JMB498 
 (e)  A person who is not a citizen of the United States and who has not 1 
resided in the State of Arkansas for at least two (2) consecutive years 2 
immediately preceding the date of appointment shall not be appointed to the 3 
board. 4 
 (f)  Each member of the board and the director shall take and subscribe 5 
to an oath that he or she will support and enforce this subchapter, the 6 
tobacco control laws of this state, the Arkansas Constitution, and the United 7 
States Constitution. 8 
 (g)  The board shall: 9 
 (1)  Act as the adjudicatory body for Arkansas Tobacco Control; 10 
 (2)  Have responsibility for approving the issuance, suspension, 11 
and revocation of the permits enumerated in § 26 -57-219; 12 
 (3)(A)  Conduct public hearings when appropriate regarding a 13 
permit authorized under this subchapter or in violation of this subchapter, 14 
the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-401 15 
et seq., or any other federal, state, or local statute, ordinance, rule, or 16 
regulation concerning the sale of tobacco products, vapor products, 17 
alternative nicotine products, e -liquid products, or hemp -derived products to 18 
minors or the rules promulgated by Arkansas Tobacco Control. 19 
 (B)  After notice and hearing held in accordance with the 20 
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 21 
finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4	-75-22 
701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 23 
Tobacco Control, the board may suspend or revoke any or all permits issued by 24 
the director to any person. 25 
 (C)  The board may levy a civil penalty in an amount not to 26 
exceed five thousand dollars ($5,000) for each violation against a person 27 
found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 28 
§ 4-75-701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 29 
Tobacco Control. 30 
 (D)  Each day of a violation is a separate violation. 31 
 (E)  A civil penalty under subdivision (g)(3)(C) of this 32 
section is in addition to any penalties levied by the board under § 26	-57-33 
248. 34 
 (F)  In conducting a hearing under this subdivision (g)(3), 35 
the board may examine or cause to be examined under oath any witness and the 36    	SB533 
 
 	63 	03/20/2025 11:19:12 AM JMB498 
books and records of a permitted person or other person; 1 
 (4)  When requested by the written petition of at least three (3) 2 
interested parties, conduct public hearings to receive testimony regarding 3 
the facts relevant to the issuance of a permit under this subchapter; and 4 
 (5)(A)  Not have authority in criminal prosecutions or the 5 
assessment or collection of any taxes. 6 
 (B)  However, the board shall refuse to approve the 7 
issuance or renewal of a permit issued by the director for the failure to pay 8 
taxes or fees imposed on tobacco products or any permit fees imposed under 9 
this subchapter or any other state or local taxes. 10 
 (h)(1)  The board may assess penalties for a violation of § 5 -27-227 11 
according to the following schedule: 12 
 (A)  For a first violation within a forty -eight-month 13 
period, a civil penalty not to exceed two hundred fifty dollars ($250); 14 
 (B)  For a second violation within a forty -eight-month 15 
period, a civil penalty not to exceed five hundred dollars ($500) and 16 
suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 17 
two (2) days; 18 
 (C)  For a third violation within a forty -eight-month 19 
period, a civil penalty not to exceed one thousand dollars ($1,000) and 20 
suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 21 
seven (7) days; 22 
 (D)  For a fourth or subsequent violation within a forty -23 
eight-month period, a civil penalty not to exceed two thousand dollars 24 
($2,000) and suspension of the permit enumerated in § 26 -57-219 for a period 25 
not to exceed fourteen (14) days; and 26 
 (E)  For a fifth or subsequent violation within a forty -27 
eight-month period, in addition to the other penalties provided under this 28 
subsection, the permit enumerated in § 26 -57-219 may be revoked. 29 
 (2)(A)  A penalty under this subsection shall not be imposed on a 30 
retailer or an agent or employee of a retailer who can establish an 31 
affirmative defense that before the date of the violation the retailer or 32 
agent or employee of the retailer furnishing the tobacco products, vapor 33 
products, alternative nicotine products, e -liquid products, or cigarette 34 
papers reasonably relied on proof of age that identified the person receiving 35 
the tobacco products, vapor products, alternative nicotine products, e	-liquid 36    	SB533 
 
 	64 	03/20/2025 11:19:12 AM JMB498 
products, or cigarette papers as not being a minor. 1 
 (B)  As used in this subsection, “proof of age” means valid 2 
documentation issued by a governmental agency containing the person's 3 
photograph, date of birth, and an expiration date. 4 
 (3)(A)  For a corporation or business with more than one (1) 5 
retail location, to determine the number of accumulated violations for 6 
purposes of the penalty schedule stated in this subsection, violations of § 7 
5-27-227 by one (1) retail location shall not be accumulated against other 8 
retail locations of that same corporation or business. 9 
 (B)  For a retail location, for purposes of the penalty 10 
schedule stated in this subsection, violations accumulated and assessed 11 
against a prior owner of the retail location shall not be accumulated against 12 
a new owner of the same retail location unless approved by the board. 13 
 14 
 SECTION 17.  Arkansas Code § 26 -57-256(a)(2) and (3), effective until 15 
the contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 16 
Arkansas Tobacco Control, are amended to read as follows: 17 
 (2)(A)  Receive applications for and issue, refuse, suspend, and 18 
revoke permits listed in § 26 -57-219 and § 20-56-501 et seq. 19 
 (B)  Arkansas Tobacco Control shall refuse to issue or 20 
renew any permits issued by the Director of Arkansas Tobacco Control for the 21 
failure to pay: 22 
 (i)  Any applicable taxes or fees imposed on tobacco 23 
products,; 24 
 (ii)  Permit permit fees imposed under this 25 
subchapter and § 20-56-501 et seq.;, or 26 
 (iii)  Any any other state or local taxes; 27 
 (3)  Prescribe forms of applications for permits under this 28 
subchapter and § 20-56-501 et seq.; 29 
 30 
 SECTION 18.  Arkansas Code § 26 -57-256(b), effective until the 31 
contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 32 
Arkansas Tobacco Control, is amended to read as follows: 33 
 (b)  Any tobacco products, vapor products, alternative nicotine 34 
products, e-liquid products, consumable hemp products, or cigarette papers 35 
found in the possession of a minor may be confiscated and destroyed. 36    	SB533 
 
 	65 	03/20/2025 11:19:12 AM JMB498 
 1 
 SECTION 19.  Arkansas Code § 26 -57-256, effective if the contingency in 2 
Acts 2023, No. 629, § 17, is met, is repealed. 3 
 26-57-256.  Arkansas Tobacco Control — Powers. 4 
 (a)  Arkansas Tobacco Control shall: 5 
 (1)  Promulgate rules for the proper enforcement and 6 
implementation of this subchapter and the Unfair Cigarette Sales Act, § 4	-75-7 
701 et seq.; 8 
 (2)(A)  Receive applications for and issue, refuse, suspend, and 9 
revoke permits listed in § 26 -57-219 and § 20-56-401 et seq. 10 
 (B)  Arkansas Tobacco Control shall refuse to issue or 11 
renew any permits issued by the Director of Arkansas Tobacco Control for the 12 
failure to pay: 13 
 (i)  Any applicable taxes or fees imposed on tobacco 14 
products; 15 
 (ii)  Permit fees imposed under this subchapter or on 16 
hemp-derived products under § 20 -56-401 et seq.; or 17 
 (iii)  Other state or local taxes; 18 
 (3)  Prescribe forms of applications for permits under this 19 
subchapter and § 20-56-401 et seq.; 20 
 (4)(A)  Cooperate with the Revenue Division of the Department of 21 
Finance and Administration in the enforcement of the tax laws affecting the 22 
sale of tobacco products in this state and in the enforcement of all other 23 
state and local tax laws. 24 
 (B)  To facilitate efforts to cooperate with the division 25 
concerning the enforcement of all other state and local tax laws, Arkansas 26 
Tobacco Control shall immediately require that the following additional 27 
information be provided by all applicants for permit issuance or renewal: 28 
 (i)  Federal tax identification numbers issued by the 29 
Internal Revenue Service; 30 
 (ii)  Social Security numbers; and 31 
 (iii)  State sales tax account numbers assigned by 32 
the Department of Finance and Administration, if applicable. 33 
 (C)(i)  Each year Arkansas Tobacco Control shall provide a 34 
list of all applicants for the issuance or renewal of all tobacco products, 35 
vapor product, alternative nicotine product, or e -liquid product permits to 36    	SB533 
 
 	66 	03/20/2025 11:19:12 AM JMB498 
the Secretary of the Department of Finance and Administration. 1 
 (ii) This list shall contain the identifying 2 
information required by subdivision (a)(4)(B) of this section as well as the 3 
name of the permittee and the permittee's current business address; 4 
 (5)(A)  Collect civil penalties assessed by the Arkansas Tobacco 5 
Control Board under § 26 -57-255. 6 
 (B)  Unless the civil penalty is paid within fifteen (15) 7 
days following the date for an appeal from the order, the director shall have 8 
the power to institute a civil action in the Pulaski County Circuit Court to 9 
recover the civil penalties assessed; and 10 
 (6)(A)  Provide notice to the retail location of an alleged 11 
violation of § 5-27-227 within ten (10) days of the alleged violation. 12 
 (B)  The notice required under subdivision (a)(6)(A) of 13 
this section shall contain the date and time of the alleged violation. 14 
 (b)  Any tobacco products, vapor products, alternative nicotine 15 
products, e-liquid products, hemp -derived products as defined in § 20 -56-402, 16 
or cigarette papers found in the possession of a minor may be confiscated and 17 
destroyed. 18 
 (c)  Except as otherwise provided by law, the penalties collected under 19 
this section shall be deposited into the State Treasury. 20 
 21 
 SECTION 20.  Uncodified Section 17 of Acts 2023, No. 629, which 22 
reflects changes to the references to "Sections 6 -14", and "Sections 2 -5" in 23 
Acts 2023, No. 629, §§ 16 and 17 made by the Arkansas Code Revision 24 
Commission, is repealed. 25 
 SECTION 17.  Contingent effective date. 26 
 Sections 6-14 [8-16] of this act shall become effective only upon the 27 
certification of the Arkansas Attorney General that the State of Arkansas is 28 
currently enjoined from enforcing Sections 2 -5 [2-7] of this act relating to 29 
delta-8 tetrahydrocannabinol and delta -10 tetrahyrdocannabinol, but no 30 
earlier than August 1, 2023. 31 
 32 
 SECTION 21.  DO NOT CODIFY.  SEVERABILITY CLAUSE. If any provision of 33 
this act or the application of this act to any person or circumstance is held 34 
invalid, the invalidity shall not affect other provisions or applications of 35 
this act which can be given effect without the invalid provision or 36    	SB533 
 
 	67 	03/20/2025 11:19:12 AM JMB498 
application, and to this end, the provisions of this act are declared 1 
severable. 2 
 3 
 SECTION 22.  DO NOT CODIFY.  Rules. 4 
 (a)  When adopting the initial rules required under this act, Arkansas 5 
Tobacco Control shall file the final rules with the Secretary of State for 6 
adoption under § 25-15-204(f): 7 
 (1)  On or before January 1, 2026; or 8 
 (2)  If approval under § 10 -3-309 has not occurred by January 1, 9 
2026, as soon as practicable after approval under § 10 -3-309. 10 
 (b)  Arkansas Tobacco Control shall file the proposed rules with the 11 
Legislative Council under § 10 -3-309(c) sufficiently in advance of January 1, 12 
2026, so that the Legislative Council may consider the rules for approval 13 
before January 1, 2026. 14 
 15 
 SECTION 23.  EMERGENCY CLAUSE.  It is found and determined by the 16 
General Assembly of the State of Arkansas that current Arkansas law does not 17 
properly regulate the delta tetrahydrocannabinol substances addressed in this 18 
act; that the absence of proper regulation of these delta 19 
tetrahydrocannabinol substances has allowed anyone of any age to access these 20 
delta tetrahydrocannabinol substances; that this unrestricted access to these 21 
delta tetrahydrocannabinol substances presents a grave risk to public health 22 
and safety; and that this act is immediately necessary to remove the grave 23 
risk to health and safety of the residents of this state.  Therefore, an 24 
emergency is declared to exist, and this act being immediately necessary for 25 
the preservation of the public peace, health, and safety shall become 26 
effective on: 27 
 (1)  The date of its approval by the Governor; 28 
 (2)  If the bill is neither approved nor vetoed by the Governor, 29 
the expiration of the period of time during which the Governor may veto the 30 
bill: or 31 
 (3)  If the bill is vetoed by the Governor and the veto is 32 
overridden, the date the last house overrides the veto. 33 
 34 
 35 
 36