Arkansas Senate Bill SB533 Chaptered / Bill

                    Stricken language would be deleted from and underlined language would be added to present law. 
Act 934 of the Regular Session 
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State of Arkansas As Engrossed:  S4/2/25 H4/8/25   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; AND FOR 13 
OTHER PURPOSES.  14 
 15 
 16 
Subtitle 17 
TO PROVIDE FOR THE REGULATION OF 18 
CONSUMABLE HEMP PRODUCTS BY THE ARKANSAS 19 
TOBACCO CONTROL BOARD; AND TO AMEND THE 20 
ARKANSAS LAW TO ALLOW REGULATION AND 21 
PURCHASE OF CONSUMABLE HEMP PRODUCTS. 22 
 23 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 
 25 
 SECTION 1.  Arkansas Code § 2 -15-503(5), concerning the definition of 26 
"industrial hemp" within the Arkansas Industrial Hemp Production Act, is 27 
amended to read as follows: 28 
 (5)  “Industrial hemp” means the plant Cannabis sativa and any part of 29 
the plant, including the seeds of the plant and all derivatives, extracts, 30 
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 31 
not, with a total the lesser of a delta-9 tetrahydrocannabinol concentration 32 
of no more than three -tenths of one percent (0.3%) of the hemp-derived 33 
cannabadiol on a dry weight basis , unless specifically controlled under the 34 
Uniform Controlled Substances Act, § 5 -64-101 et seq. for hemp or as 35 
otherwise defined by 7 U.S.C. § 1639o, as existing on January 1, 2025	; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 1 
 SECTION 2.  Arkansas Code § 5 -64-101(16)(B), concerning the exclusion 2 
from the definition of "marijuana" within the Uniform Controlled Substances 3 
Act, is amended to add an additional subdivision to read as follows: 4 
 (vii)  Consumable hemp product as defined under § 20 -5 
56-501 et seq.; 6 
 7 
 SECTION 3.  Arkansas Code § 5 -64-215(a)(2), concerning the substances 8 
in Schedule VI of the Uniform Controlled Substances Act, is amended to read 9 
as follows: 10 
 (2)  Tetrahydrocannabinols, unless the tetrahydrocannabinol is: 11 
 (A)  Contained in hemp -derived cannabidiol; 12 
 (B)  Not more than the lesser of three-tenths of one 13 
percent (0.3%) of delta-9 tetrahydrocannabinol in the hemp-derived 14 
cannabidiol concentration of more than three tenths of one percent (0.3%) on 15 
a dry weight basis for hemp or as otherwise defined by 7 U.S.C. § 1639o, as 16 
existing on January 1, 2025, as verified by a nationally accredited 17 
laboratory for quality, purity, and accuracy standards; and 18 
 (C)  Not approved by the United States Food and Drug 19 
Administration for marketing as a medication; 20 
 21 
 SECTION 4.  Arkansas Code § 5 -64-215(a)(5)(A)(i)(i), concerning the 22 
substances in Schedule VI of the Uniform Controlled Substances Act, is 23 
amended to read as follows: 24 
 (i)  A product derived from industrial hemp 25 
that was produced as a result of a synthetic chemical process that converted 26 
the industrial hemp or a substance contained in the industrial hemp into 27 
delta-8, delta-9, delta-6a,10a, or delta-10 tetrahydrocannabinol including 28 
their respective acetate esters and other intoxicating hemp products as 29 
defined in § 20-56-501 et seq.; and 30 
 31 
 SECTION 5.  Arkansas Code § 5 -64-215(a)(5)(A)(i), concerning the 32 
substances in Schedule VI of the Uniform Controlled Substances Act, is 33 
amended to add an additional subdivision to read as follows: 34 
 (k)  An intoxicating hemp product as defined 35 
under § 20-56-501 et seq.; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 1 
 SECTION 6.  Arkansas Code § 5 -64-215(d), concerning the substances in 2 
Schedule VI of the Uniform Controlled Substances Act, is amended to read as 3 
follows: 4 
 (d)  This section does not prohibit the continuous interstate 5 
transportation or shipment through Arkansas of the plant Cannabis sativa L., 6 
and any part of that plant, including the seeds thereof and all derivatives, 7 
extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether 8 
growing or not, with the lesser of a delta-9 tetrahydrocannabinol 9 
concentration of not more than three -tenths of one percent (0.3%) on a dry 10 
weight basis, produced in accordance with or as otherwise defined in 7 U.S.C. 11 
§ 1639o et seq., as existing on January 1, 2025. 12 
 13 
 SECTION 7.  Arkansas Code § 19 -6-301(254), concerning the enumerated 14 
special revenues in this state, is amended to read as follows: 15 
 (254)  All permit and license fees received by Arkansas Tobacco 16 
Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 17 
seq., and § 20-56-501 et seq.; 18 
 19 
 SECTION 8.  Arkansas Code § 19 -6-831, effective until the contingency 20 
in Acts 2023, No. 629, § 17, is met, is amended to read as follows: 21 
 19-6-831.  Arkansas Tobacco Control Revenue Fund. 22 
 (a)  There is created on the books of the Treasurer of State, the 23 
Auditor of the State, and the Chief Fiscal Officer of the State a special 24 
revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 25 
 (b)(1)  All permit and license fees received by Arkansas Tobacco 26 
Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 27 
seq., and § 20-56-501 et seq. shall be deposited into the State Treasury as 28 
special revenues to the credit of the fund. 29 
 (2)  The fund also shall consist of any other revenues authorized 30 
by law. 31 
 (c)(1)  The fund shall be used for expenses incurred by Arkansas 32 
Tobacco Control in the organization, maintenance, operation, and merchant 33 
education and training with regard to enforcement of § 5 -27-227, the Arkansas 34 
Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-501 et seq., 35 
and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (2)  Expenditures of moneys in the fund are subject to the 1 
General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 2 
Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 3 
laws. 4 
 (3)  The receipts and disbursements of Arkansas Tobacco Control 5 
shall be audited annually by Arkansas Legislative Audit. 6 
 7 
 SECTION 9.  Arkansas Code § 19 -6-831, effective if the contingency in 8 
Acts 2023, No. 629, § 17, is met, is repealed. 9 
 19-6-831.  Arkansas Tobacco Control Revenue Fund. 10 
 (a)  There is created on the books of the Treasurer of State, the 11 
Auditor of the State, and the Chief Fiscal Officer of the State a special 12 
revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 13 
 (b)(1)  All permit and license fees received by Arkansas Tobacco 14 
Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 15 
seq., and § 20-56-401 et seq., shall be deposited into the State Treasury as 16 
special revenues to the credit of the fund. 17 
 (2)  The fund also shall consist of any other revenues authorized 18 
by law. 19 
 (c)(1)  The fund shall be used for expenses incurred by Arkansas 20 
Tobacco Control in the organization, maintenance, operation, and merchant 21 
education and training with regard to enforcement of § 5 -27-227, the Arkansas 22 
Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-401 et seq., 23 
and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 24 
 (2)  Expenditures of moneys in the fund are subject to the 25 
General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 26 
Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 27 
laws. 28 
 (3)  The receipts and disbursements of Arkansas Tobacco Control 29 
shall be audited annually by Arkansas Legislative Audit. 30 
 31 
 SECTION 10. Arkansas Code Title 20, Chapter 56, is amended to add an 32 
additional subchapter to read as follows: 33 
Subchapter 5 — Consumable Hemp Products 34 
 35 
 20-56-501.  Legislative intent. 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 It is the intent of the General Assembly that this subchapter shall: 1 
 (1)  Regulate the manufacture, production, distribution, and sale 2 
of consumable hemp products; 3 
 (2)  Prevent the manufacturing, production, distribution, 4 
marketing, sale, and use of intoxicating hemp products within Arkansas; and 5 
 (3)  Protect and promote the public health and welfare of the 6 
residents of this state. 7 
 8 
 20-56-502.  Definitions. 9 
 As used in this subchapter: 10 
 (1)  “Annual” or “annually” means the fiscal year from July 1 11 
through the next June 30; 12 
 (2)  “Approved laboratory” means a laboratory that is accredited 13 
by the National Institute on Drug Abuse, the National Environmental 14 
Laboratory Accreditation Conference, the International Organization for 15 
Standardization, or similar accrediting entity as determined by Arkansas 16 
Tobacco Control and that has been approved by the Director of Arkansas 17 
Tobacco Control specifically for the testing of consumable hemp product; 18 
 (3)(A)  “Cannabis” means all parts of the plant of the genus 19 
cannabis, the flower, the seeds thereof, the resin extracted from any part of 20 
the plant and every compound, manufacture, salt, derivative, mixture or 21 
preparation of the plant, and its seeds or its resin, including whole plant 22 
extracts. 23 
 (B)  "Cannabis" does not include cannabis -derived drug 24 
products approved by the United States Food and Drug Administration under 25 
Section 505 of the Federal Food, Drug, and Cosmetic Act, as existing on 26 
January 1, 2025; 27 
 (4)  “Consumable hemp product” means a finished product that 28 
includes part of the hemp plant, including naturally derived cannabinoids, 29 
compounds, concentrates, extracts, isolates, or derivatives that is intended 30 
for human consumption and not marketed for intoxicating effect and is: 31 
 (A)  A cosmetic as defined by 21 U.S.C. § 321, as existing 32 
on January 1, 2025, that meets the federally defined tetrahydrocannabinol 33 
level; 34 
 (B)  Any product generally recognized as safe by the United 35 
States Food and Drug Administration under the Federal Food, Drug, and 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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Cosmetic Act, 21 U.S.C. § 301 et seq., and the intended mode of consumption 1 
comports with generally recognized as safe recognition; or 2 
 (C)  A product that has no more than one milligram (1 mg) 3 
of total tetrahydrocannabinol per container and minimum ratio of cannabidiol 4 
to tetrahydrocannabinol of greater than fifteen to one (15:1) and is: 5 
 (i)  A full spectrum hemp extract or cannabinoid hemp 6 
product containing multiple hemp -derived cannabinoids, terpenes, and other 7 
naturally occurring compounds, processed without the intentional complete 8 
removal of any compound and without the addition of isolated cannabinoids; or 9 
 (ii)  A product primarily containing and marketed as 10 
cannabidiol, cannabichromene, cannabinol, cannabigerol, cannabicycol, 11 
cannabidivarin, cannabielsoin, cannabicitran, cannabicycol, cannabielsoin, or 12 
tetrahydrocannabivarin; 13 
 (5)  “Consumable hemp distributor” means a person that receives 14 
raw hemp, hemp floral material, extracts, distillates, isolates, or any 15 
extracted form of hemp as long as the extracted form of hemp is extracted 16 
from hemp for the manufacturing, distribution, or processing of any 17 
consumable hemp product including without limitation edibles, tinctures,  18 
lubricants, salves, lotions, hemp floral material, concentrates, distillates, 19 
or liquids; 20 
 (6)(A)  “Consumable hemp manufacturer” means a person that 21 
manufacturers, fabricates, assembles, or processes a hemp -derived product, 22 
including without limitation federally licensed importers and federally 23 
licensed distributors that deal in consumable hemp products. 24 
 (B)  “Consumable hemp manufacturer” includes: 25 
 (i)  A sales entity affiliate of the manufacturer or 26 
any other entity representing the manufacturer with regard to the sale of 27 
consumable hemp products produced by the manufacturer or wholesalers or 28 
permitted retailers; and 29 
 (ii)  A person that mixes, compounds, extracts, 30 
infuses, blends, processes, repackages, or resizes consumable hemp products 31 
including the extraction of cannabinoids from hemp biomass. 32 
 (C)  “Consumable hemp manufacturer” does not include a 33 
person who engages in the agricultural production of hemp, such as growing, 34 
planting, and harvesting of raw hemp biomass regulated by the State Plant 35 
Board; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (7)  “Consumable hemp retailer” means a dealer licensed by the 1 
Arkansas Tobacco Control Board, other than a consumable hemp wholesaler, 2 
whose principal place of business is that of selling merchandise at retail, 3 
including online sales, and who sells consumable hemp products; 4 
 (8)  “Consumable hemp wholesaler” means a dealer licensed by the 5 
Arkansas Tobacco Control Board whose principal place of business is that of a 6 
wholesaler dealer, and who is known to the trade as such, that sells any 7 
consumable hemp products to licensed consumable hemp retailers only for the 8 
purpose of resale to consumers; 9 
 (9)  “Consumer” means a member of the public at large; 10 
 (10)  “Consumption” means any method of ingestion of or 11 
application to the body, including eating, drinking, inhaling, absorbing, or 12 
injecting, through which a product is metabolized or is otherwise subject to 13 
a biotransformative process when introduced into the human body; 14 
 (11)(A)  “Container” means any final packaged product that is 15 
offered, intended for sale, or sold to a consumer in the form of an external 16 
package, can, bottle, bag, or other receptacle that can hold hemp or 17 
consumable hemp products. 18 
 (B)  "Container" does not include: 19 
 (i)  Exit packaging, a shipping container, or an 20 
outer wrapping used solely for the transport of products in bulk quantity; or 21 
 (ii)  Any package, can, bottle, bag, or other 22 
receptacle that may house the products individually inside the external 23 
container; 24 
 (12)  “Days” means calendar days unless otherwise specified; 25 
 (13)  “Delta-9 tetrahydrocannabinol” means the sum of the 26 
percentage by weight of tetrahydrocannabinol acid multiplied by eight hundred 27 
seventy-seven thousandths (0.877) plus the percentage by weight of delta -9 28 
tetrahydrocannabinol; 29 
 (14)  “Federally defined tetrahydrocannabinol level” means the 30 
lesser of a delta-9 tetrahydrocannabinol concentration of not more than three 31 
tenths of one percent (0.3%) on a dry weight basis for hemp or as otherwise 32 
defined in 7 U.S.C. § 1639o, as existing on January 1, 2025; 33 
 (15)  “Finished product” means a product intended for consumer 34 
use to be sold at retail; 35 
 (16)  “Hemp” means the plant Cannabis sativa and any part of the 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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plant, including the seeds of the plant, that contains a delta -9 1 
tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 2 
less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 3 
isomers, acids, salts, and salts of isomers, whether growing or not; 4 
 (17)(A)  “Intoxicating hemp product” means a finished product 5 
intended for human consumption that is derived from or contains hemp or hemp 6 
extract and contains a total tetrahydrocannabinol concentration that exceeds 7 
zero percent (0%) when tested in its finished form. 8 
 (B)  "Intoxicating hemp product" may contain derivatives, 9 
extracts, cannabinoids, isomers, esters, ethers, acids, salts, and salts of 10 
isomers, esters, and ethers whenever the existence of such isomers, esters, 11 
ethers, and salts is possible within the specific chemical designation 12 
including without limitation: 13 
 (i)  Delta-10 cis or trans tetrahydrocannabinol and 14 
its optical isomers; 15 
 (ii)  Delta-9 cis or trans tetrahydrocannabinol and 16 
its optical isomers; 17 
 (iii)  Delta-8 cis or trans tetrahydrocannabinol and 18 
its optical isomers; 19 
 (iv)  Delta-7 cis or trans tetrahydrocannabinol and 20 
its optical isomers; 21 
 (v)  Delta-6a, 10a cis or trans tetrahydrocannabinol 22 
and its optical isomers; 23 
 (vi)  Exo-tetrahydrocannabinol; 24 
 (vii)  Metabolites of tetrahydrocannabinol, including 25 
11-hydroxy-tetrahydrocannabinol, 3 -27 hydroxy-tetrahydrocannabinol, and 7 - 12 26 
hydroxy-tetrahydrocannabinol; 27 
 (viii)  Tetrahydrocannabinolic acid; 28 
 (ix)  Hydrogenated forms of tetrahydrocannabinol, 29 
including hexahydrocannabinol, hexaydrocannabiphrol, and 30 
hexahydrocannabihexol; 31 
 (x)  Synthetic forms of tetrahydrocannabinol,  32 
including dronabinol; 33 
 (xi)  Ester forms of tetrahydrocannabinol, including 34 
delta-8 tetrahydrocannabinol, tetrahydrocannabinol -O-acetate, delta-9 35 
tetrahydrocannabinol -O-acetate, delta-10 tetrahydrocannabinol -O-acetate, 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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delta-6a,10a tetrahydrocannabinol -O-acetate and hexahydrocannabinol -O-6 1 
acetate; 2 
 (xii)  Ether forms of tetrahydrocannabinol and 3 
hexahydrocannabinol including delta -9 tetrahydrocannabinol methyl ether and 4 
delta-8 tetrahydrocannabinol methyl ether; 5 
 (xiii)  Tetrahydrocannabivarins, including delta -8 6 
tetrahydrocannabivarin but excluding delta -9 tetrahydrocannabivarin; 7 
 (xiv)  Analogues or tetrahydrocannabinols with an 8 
alkyl chain of four (4) or more carbon atoms, including 9 
tetrahydrocannabiphorols, tetrahydrocannabioctyls, tetrahydocannabihexols, or 10 
tetrahydrocannabutols; 11 
 (xv)  Delta-8 isotetrahydrocannabinol, delta4(8) -12 
isotetrahydrocannabinol and isohexahydrocannabinol; 13 
 (xvi)  Any combination of the compounds, including 14 
hexahydrocannabiphorol -o-ester and delta-8 tetrahydrocannabiphorol acetate, 15 
delta-9 tetrahydorcannabiphorol acetate; and 16 
 (xvii)(a)  Any other cannabinoid classified as an 17 
intoxicant by rule of the Arkansas Tobacco Control Board. 18 
 (b)  The Arkansas Tobacco Control Board shall 19 
notify the Department of Health when and if additional cannabinoids are 20 
classified as an intoxicant by the Arkansas Tobacco Control Board. 21 
 (C)  "Intoxicating hemp product" does not include a consumable hemp 22 
product or medical marijuana regulated under the Arkansas Medical Marijuana 23 
Amendment of 2016, Arkansas Constitution, Amendment 98; 24 
 (18)  “Minor” means a person who is under twenty -one (21) years 25 
of age; 26 
 (19)  “Person” means an individual, retailer, wholesaler, 27 
manufacturer, firm, association, company, partnership, limited liability 28 
company, corporation, joint -stock company, club, agency, syndicate, county, 29 
municipal corporation or other political subdivision of the state, receiver, 30 
trustee, fiduciary, or trade association; 31 
 (20)  “Principal place of business” means the physical location: 32 
 (A)  Where orders for consumable hemp products are taken or 33 
received or where consumable hemp products are sold; and 34 
 (B)  That is on file with the Arkansas Tobacco Control 35 
Board; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (21)  “Produce” means to grow industrial hemp for market or for 1 
cultivation for market; 2 
 (22)(A)  “Sale” or “sell” means a transfer, exchange, or barter 3 
in any manner or by any means for any consideration, including distributing 4 
or shipping consumable hemp products in connection with a sale. 5 
 (B)  A sale “in” or “into” a state refers to the state in 6 
which the destination point of the consumable hemp product is located in the 7 
sale without regard to where title was transferred. 8 
 (C)  A sale “from” a state refers to the sale of a 9 
consumable hemp product that is located in that state to the destination in 10 
question without regard to where title was transferred; 11 
 (23)  “Tetrahydrocannabinol” means a compound that is the 12 
natural, primary active cannabinoid substance or its equivalent contained in 13 
the plant of the genus Cannabis or in the resinous extracts of the plant, 14 
including derivatives or isomers derived from such cannabinoids; 15 
 (24)  "Total tetrahydrocannabinol" means the total concentration 16 
of all tetrahydrocannabinols, including delta -8 tetrahydrocannabinol, delta -9 17 
tetrahydrocannabinol, delta -10 tetrahydrocannabinol, tetrahydrocannabinolic 18 
acid or its decarboxylated equivalent, and any other chemically similar 19 
compound, substance, derivative, or isomer of tetrahydrocannabinol, and any 20 
other cannabinoid identified by the Arkansas Tobacco Control Board; and 21 
 (25)  “Warehouse” means a place where consumable hemp products 22 
are stored for another person and to or from which place the consumable hemp 23 
products are shipped or delivered upon order by the owner of the consumable 24 
hemp, to the warehouse. 25 
 26 
 20-56-503.  Construction. 27 
 (a)  A consumable hemp product shall not be delivered, sold, bought, or 28 
used in this state except in conformity with applicable laws and rules, 29 
including this subchapter and rules promulgated under this subchapter. 30 
 (b)  A person shall not manufacture, process, distribute, or sell a 31 
consumable hemp product without being permitted by the Arkansas Tobacco 32 
Control Board. 33 
 (c)  A product intended for human consumption or inhalation that is 34 
derived from hemp and contains tetrahydrocannabinol shall not be permitted or 35 
allowed under the laws of this state, other than consumable hemp products if 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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otherwise legal under state law. 1 
 (d)(1)  A consumable hemp product shall not be combined with or contain 2 
any of the following: 3 
 (A)  Ethanol; 4 
 (B)  Nicotine or tobacco; 5 
 (C)  Intoxicating hemp product; or 6 
 (D)  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)  A medical device, prescription drug, or drug otherwise 10 
approved by the United States Food and Drug Administration is not a 11 
consumable hemp product. 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, consumable hemp 15 
products is declared to be a privilege under the laws of this state. 16 
 17 
 20-56-504.  Permits. 18 
 (a)(1)  Each person listed in this section, before commencing business 19 
or if already in business, before continuing business, shall pay an annual 20 
privilege fee and secure a permit from the Director of Arkansas Tobacco 21 
Control. 22 
 (2)  A person purchasing an existing permitted retail location 23 
may, with the permission of the seller and the Arkansas Tobacco Control 24 
Board, operate under the selling owner’s permit for no more than thirty (30) 25 
days from the date of the sale. 26 
 (b)(1)  In addition to securing a permit under subsection (a) of this 27 
section, a consumable hemp manufacturer whose products are sold in this state 28 
shall register with the Secretary of the Department of Finance and 29 
Administration. 30 
 (2)  A consumable hemp wholesaler shall secure the proper 31 
wholesale permit. 32 
 (3)  Every consumable hemp retailer that operates a place of 33 
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  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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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 shall be issued in the name of the president or chief executive 16 
officer 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 of a partnership, managing member 21 
of a limited liability company, or president or chief executive officer of a 22 
corporation, 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  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (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 6 
more than thirty (30) days from the date of the change, removal, or 7 
replacement of the managing partner, managing member, president, or chief 8 
executive officer. 9 
 (3)  When a nonpublicly traded corporation permitted under this 10 
subchapter changes, removes, or replaces the president or chief executive 11 
officer named on the permit or changes, removes, or replaces a stockholder 12 
who owns fifty percent (50%) or more of the total voting shares of the 13 
nonpublicly traded corporation’s stock: 14 
 (A)  The permit issued under this subchapter is void; and 15 
 (B)  The nonpublicly traded corporation: 16 
 (i)  Shall apply for a new permit under this 17 
subchapter; 18 
 (ii)  May be issued a new permit under this 19 
subchapter; and 20 
 (iii)  May operate under the voided permit for no 21 
more than thirty (30) days from the date of the change, removal, or 22 
replacement of the president, chief executive officer, or stockholder. 23 
 (4)  When a publicly traded corporation permitted under this 24 
subchapter changes, removes, or replaces the president or chief executive 25 
officer named on the permit or changes, removes, or replaces a stockholder 26 
who owns fifty percent (50%) or more of the total voting shares of the 27 
publicly traded corporation’s stock: 28 
 (A)  The permit issued under this subchapter is void; and 29 
 (B)  The publicly traded corporation: 30 
 (i)  Shall apply for a new permit under this 31 
subchapter; 32 
 (ii)  May be issued a new permit under this 33 
subchapter; and 34 
 (iii)  May operate under the voided permit for no 35 
more than thirty (30) days from the date of the change, removal, or 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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replacement of the president, chief executive officer, or stockholder. 1 
 (e)  An entity may apply for and be issued a permit under this 2 
subchapter in advance of the effective date of the permit to facilitate 3 
continuity of business operations. 4 
 5 
 20-56-505.  Permits — Location — Background check required. 6 
 (a)  A consumable hemp retailer permit, consumable hemp wholesaler 7 
permit, or consumable hemp manufacturer permit shall not be issued to a 8 
residential address, a mobile structure, vehicle, or for an address not zoned 9 
appropriately for the business seeking to secure the permit. 10 
 (b)  A permit shall not be issued to: 11 
 (1)  A person who has pleaded guilty or nolo contendere to or 12 
been found guilty of a felony; or 13 
 (2)  A business owned or operated, in whole or in part, by a 14 
person who has pleaded guilty or nolo contendere to or been found guilty of a 15 
felony. 16 
 (c)  The Arkansas Tobacco Control Board shall conduct a criminal 17 
background check on each permit applicant and application, using the Arkansas 18 
Crime Information Center. 19 
 20 
 20-56-506.  Permits — Annual privilege fees. 21 
 (a)  The annual privilege fee for each permit authorized by this 22 
subchapter is established as follows: 23 
 (1)  Consumable hemp wholesaler permit               $5,000 24 
 (2)  Consumable hemp retailer permit                 $5,000 25 
 (3)  Consumable hemp manufacturer permit             $5,000 26 
 (b)(1)  All permits issued under this subchapter shall expire on June 27 
30 following the effective date of issuance. 28 
 (2)(A)  Upon the failure to timely renew a permit issued under 29 
this subchapter, a late fee of two (2) times the amount of the appropriate 30 
permit fee shall be owed in addition to the annual privilege fee for the 31 
permit. 32 
 (B)  An expired permit that is not renewed before September 33 
1 following the expiration of the permit shall not be renewed, and the holder 34 
of the expired permit shall submit an application for a new permit. 35 
 (3)  A permit shall not be issued to the applicant until the late 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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fee and the permit fee have been paid. 1 
 (c)  A permit issued under this subchapter shall not be renewed for a 2 
permit holder who is delinquent more than ninety (90) days on a privilege 3 
fee, tax relating to the sale or dispensing of a consumable hemp product, or 4 
any other state and local tax due the Secretary of the Department of Finance 5 
and Administration. 6 
 (d)  A person who is delinquent more than ninety (90) days on a state 7 
or local tax may not renew or obtain a permit issued under this subchapter 8 
except upon certification that the permit holder has entered into a repayment 9 
agreement with the Department of Finance and Administration and is current on 10 
the payments. 11 
 (e)  A permit holder who has unpaid fees, civil penalties, or an 12 
unserved permit suspension may not transfer, sell, or give consumable hemp 13 
product inventory of the business associated with the permit to a third party 14 
until all fees and civil penalties are paid in full and all suspensions are 15 
completed successfully, nor shall any third party be issued a new permit for 16 
the business location. 17 
 (f)  Each consumable hemp manufacturer, consumable hemp wholesaler, and 18 
consumable hemp retailer shall retain copies of all invoices for the purchase 19 
or sale of any consumable hemp product for a period of at least ten (10) 20 
years subject to examination by the secretary and the Director of Arkansas 21 
Tobacco Control or their authorized agents upon demand at any time during 22 
regular business hours. 23 
 (g)  A consumable hemp retailer shall: 24 
 (1)  Maintain copies of at least the last three hundred sixty -25 
five (365) days of consumable hemp product invoices, which the retailer shall 26 
provide immediately upon demand; 27 
 (2)(A)  Make the invoices that are older than three hundred 28 
sixty-five (365) days available upon demand at any time during normal 29 
business hours in the retail store. 30 
 (B)  Except as provided in subdivision (g)(2)(C) of this 31 
section, an agent of the Arkansas Tobacco Control Board may determine a 32 
reasonable time frame for which invoices are to be provided under subdivision 33 
(g)(2)(A) of this section. 34 
 (C)  An invoice that is provided seventy -two (72) hours 35 
more after the demand shall not be considered for purposes of determining 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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violation of this subsection; 1 
 (3)  Retain invoices for all consumable hemp products in the 2 
retail store even if the invoice for the consumable hemp product is older 3 
than three (3) years; 4 
 (4)  Maintain a copy of the signed server awareness forms for 5 
each employee of the retailer who engages in the sale of consumable hemp 6 
products, which the retailer shall provide immediately upon demand; 7 
 (5)(A)  Maintain a copy of any complete transfer forms showing: 8 
 (i)  The consumable hemp products that were 9 
transferred; 10 
 (ii)  The permitted location from which the 11 
consumable hemp products were transferred; and 12 
 (iii)  When the transfer occurred. 13 
 (B)  A transfer form shall be completed contemporaneously 14 
with the transfer and shall be provided immediately by the retailer upon 15 
demand; and 16 
 (6)  If any inventory was submitted with a permit application, 17 
maintain a copy of the submitted inventory form, which the retailer shall 18 
provide immediately upon demand. 19 
 (h)  A consumable hemp wholesaler and consumable hemp manufacturer 20 
shall: 21 
 (1) Maintain ten (10) years of consumable hemp product invoices 22 
that are available upon demand during normal business hours in the permitted 23 
location; and 24 
 (2)  Permit the board and authorized personnel of the board to 25 
enter into and inspect stock of consumable hemp products, and any documents 26 
and records relating to receipts and disbursements of consumable hemp 27 
products. 28 
 (i)  An invoice from a consumable hemp wholesaler to a consumable hemp 29 
retailer shall contain the name or other identifying information of the 30 
consumable hemp wholesaler and the consumable hemp retailer. 31 
 (j)(1)  A nonresident consumable hemp wholesaler shall also keep a 32 
record of all consumable hemp products purchased for distribution within this 33 
state. 34 
 (2)  All books, records, and memoranda pertaining to the purchase 35 
and sale of the consumable hemp products under subdivision (j)(1) of this 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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section shall be subject to inspection by the board. 1 
 (k)  Authorized personnel of the board shall not release to the board 2 
or to the public any information identifying customers of the consumable hemp 3 
manufacturer, consumable hemp wholesaler, or warehouse except when necessary 4 
to notify the board of alleged violations of this subchapter. 5 
 6 
 20-56-507.  Permits — Not transferable — Duplicates. 7 
 (a)  A permit under this subchapter is not transferable to a: 8 
 (1)  Subsequent owner or operator; or 9 
 (2)  Different physical location unless the permit holder obtains 10 
permission from the Director of Arkansas Tobacco Control. 11 
 (b)  A person purchasing an existing permitted retail location may 12 
operate under the selling owner’s permit for no more than thirty (30) days 13 
from the date of the sale. 14 
 (c)  When a permit is lost by a permit holder, a duplicate permit may 15 
be issued upon application and for a fee of five dollars ($5.00) when 16 
sufficient proof has been given to the director. 17 
 18 
 20-56-508.  Permits — Suspension or revocation. 19 
 (a)  All permits issued under this subchapter shall be suspended or 20 
revoked by the Director of Arkansas Tobacco Control for any violation of this 21 
subchapter or the rules pertaining to this subchapter, subject to a hearing 22 
before the Arkansas Tobacco Control Board at the next regularly scheduled 23 
board meeting. 24 
 (b)  The director may revoke all permits to deal in consumable hemp 25 
products associated with any person who is convicted of or pleads guilty or 26 
nolo contendere to a criminal violation of this subchapter, subject to a 27 
hearing before the board at the next regularly scheduled board meeting. 28 
 29 
 20-56-509.  Advertising prohibitions and packaging requirements. 30 
 (a)  A consumable hemp product distributed or offered for sale in this 31 
state shall include the following information on the product label or product 32 
packaging: 33 
 (1)  The name of the consumable hemp product distributor or 34 
consumable hemp product manufacturer, whether in -state or out-of-state; 35 
 (2)  Product labeling clearly showing that the product contains 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	18 	04-08-2025 10:08:29 JMB498 
 
 
material derived from hemp and not marijuana or medical marijuana; and 1 
 (3)  Any other marking, words, statement, or symbol as required 2 
by the Arkansas Tobacco Control Board through rules. 3 
 (b)  A person shall not advertise, market, or offer for sale in this 4 
state any consumable hemp product by using, in the labeling or design of the 5 
product, its packaging, or in its advertising or marketing materials, trade 6 
dress, trademarks, branding, or other related imagery that: 7 
 (1)  Imitates or replicates those of food brands or other related 8 
products that are marketed to or are commonly associated with children or 9 
minors, including without limitation breakfast cereal, cookies, juice drinks, 10 
soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 11 
 (2)  Depicts or signifies characters or symbols that are known to 12 
a reasonable person to appeal primarily to or are commonly associated with 13 
children or minors, including without limitation superheroes, cartoons or 14 
cartoon characters, including anime characters, comic book characters, video 15 
game characters, television show characters, movie characters, mythical 16 
creatures, unicorns, or that otherwise incorporates related imagery or 17 
scenery; or 18 
 (3) Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 19 
or “cupcakes” or any variant of these terms, or any other term referencing a 20 
type or brand of candy, cakes, pastries, or pies, including types or brands 21 
of candy, cakes, pastries, or pies that do not include the words “candy”, 22 
“candies”, “cake”, “cakes”, "pastries", “pies”, or “cupcakes” in their names, 23 
labels, or slogans. 24 
 25 
 20-56-510.  Testing. 26 
 (a)  All consumable hemp sold in this state shall be tested by an 27 
approved laboratory. 28 
 (b)  An approved laboratory shall be an independent third -party 29 
laboratory. 30 
 (c)  A consumable hemp product sold in this state shall be tested for 31 
the following and marked as to the consumable hemp product chemical makeup 32 
before being sold to consumers: 33 
 (1)  Cannabinoid profile; 34 
 (2)  Solvents; 35 
 (3)  Pesticides; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (4)  Microbials; 1 
 (5)  Heavy metals; and 2 
 (6)  Any non-hemp-based substance. 3 
 (d)  A consumable hemp product shall not be distributed or sold in this 4 
state without a certificate of analysis from an approved laboratory that 5 
confirms: 6 
 (1)  The consumable hemp product was tested by an approved 7 
laboratory; 8 
 (2)  A tested representative sample of the consumable hemp 9 
product contained a total delta -9 tetrahydrocannabinol concentration that did 10 
not exceed three-tenths of one percent (0.3%) under this subchapter; and 11 
 (3)  A detailed analysis and list of the chemical makeup of the 12 
tested consumable hemp product under subsection (c) of this section. 13 
 (e)  The Arkansas Tobacco Control Board may periodically sample, 14 
analyze, and test any consumable hemp product located in this state. 15 
 (f)  The Director of Arkansas Tobacco Control shall: 16 
 (1)  Investigate and issue subpoenas to any permittee or approved 17 
laboratory used by a permittee that the director has reasonable suspicion of 18 
intentionally producing falsified test results on consumable hemp; and 19 
 (2)  Promulgate rules for the enforcement of this section and set 20 
penalties for any violation of the rules. 21 
 22 
 20-56-511.  Providing minors with consumable hemp products — Purchase, 23 
use, or possession prohibited. 24 
 (a)(1)  It is unlawful for any person to give, barter, or sell to a 25 
minor a consumable hemp product. 26 
 (2)  Except as provided in subdivision (a)(3) of this section, a 27 
person who pleads guilty or nolo contendere to or is found guilty of 28 
violating subdivision (a)(1) of this section is guilty of a Class A 29 
misdemeanor. 30 
 (3)  An employee or owner of a retail location permitted under 31 
this subchapter who violates subdivision (a)(1) of this section while inside 32 
the retail location upon conviction is subject to a fine not to exceed one 33 
hundred dollars ($100) per violation. 34 
 (b)(1)  It is unlawful for a minor to: 35 
 (A)  Use or possess or to purchase or attempt to purchase a 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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consumable hemp product; or 1 
 (B)  For the purpose of obtaining or attempting to obtain a 2 
consumable hemp product, falsely represent himself or herself not to be a 3 
minor by displaying proof of age that is false, fraudulent, or not actually 4 
proof of the minor’s age. 5 
 (2)  Any consumable hemp product found in the possession of a 6 
minor may be confiscated and destroyed by a law enforcement officer. 7 
 (c)(1)  It is not an offense under subsection (b) of this section if: 8 
 (A)  The minor was acting at the direction of an authorized 9 
agent of the Arkansas Tobacco Control Board to enforce or ensure compliance 10 
with laws relating to the prohibition of the sale of consumable hemp product 11 
to minors; 12 
 (B)  The minor was acting at the direction of an authorized 13 
agent of the Division of Aging, Adult, and Behavioral Health Services of the 14 
Department of Human Services to compile statistical data relating to the sale 15 
of consumable hemp products to minors; 16 
 (C)  The minor was acting at the request of a permit holder 17 
to assist the permit holder by performing a check on the permit holder’s own 18 
retail business to see if the permit holder’s employees would sell consumable 19 
hemp products to the minor; or 20 
 (D)  The minor was acting as an agent of a retail permit 21 
holder within the scope of employment. 22 
 (2)  A minor performing activities under subdivision (c)(1) of 23 
this section shall: 24 
 (A)  Display the appearance of a minor; 25 
 (B)  Have the written consent of the minor’s parent or 26 
guardian to perform the activity on file with the agency utilizing the minor; 27 
and 28 
 (C)(i)  Present a true and correct identification if asked. 29 
 (ii)  Any failure on the part of a minor to provide 30 
true and correct identification upon request is a defense to any action under 31 
this section or a civil action under § 26 -57-256. 32 
 (d)  Any person who sells consumable hemp products has the right to 33 
deny the sale of any consumable hemp product to any person. 34 
 (e)  It is unlawful for any person who has been issued a permit or a 35 
license under this subchapter to fail to display in a conspicuous place a 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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sign indicating that the sale of consumable hemp products to or purchase or 1 
possession of consumable hemp products by a minor is prohibited by law. 2 
 (f)  It is unlawful for any manufacturer whose consumable hemp product 3 
is distributed in this state and any person who has been issued a permit or 4 
license under this subchapter to distribute a free sample of any consumable 5 
hemp product or any component of a consumable hemp product or coupon that 6 
entitles the holder of the coupon to any free sample of any consumable hemp 7 
product or any component of a consumable hemp product: 8 
 (1)  In or on any public street or sidewalk within five hundred 9 
feet (500’) of any playground, public school, or other facility when the 10 
playground, public school, or other facility is being used primarily by 11 
minors for recreational, educational, or other purposes; or 12 
 (2)  To any minor. 13 
 (g)  It is unlawful for any person that has been issued a permit or 14 
license under this subchapter to: 15 
 (1)  Sell or distribute a consumable hemp product through a self -16 
service display, a vending machine, or an order executed solely over the 17 
internet or similar means; or 18 
 (2)  Advertise or promote consumable hemp in a manner that is 19 
intended to appeal to minors. 20 
 (h)  Any retail permit holder or license holder who violates any 21 
provision in this section is deemed guilty of a violation and subject to 22 
penalties under § 26 -57-256. 23 
 (i)(1)  A notice of an alleged violation of this section shall be given 24 
to the holder of a retail permit or license or an agent of the holder within 25 
ten (10) days of the alleged violation. 26 
 (2)  The notice under subdivision (i)(1) of this section shall: 27 
 (A)  Contain the date and time of the alleged violation; 28 
and 29 
 (B)(i)  Include either the name of the person making the 30 
alleged sale or information reasonably necessary to determine the location in 31 
the store that allegedly made the sale. 32 
 (ii)  When appropriate, information under subdivision 33 
(i)(2)(B)(i) of this section shall include without limitation: 34 
 (a)  The cash register number of the sale in 35 
the store; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (b)  The physical location of the sale in the 1 
store; and 2 
 (c)  If possible, the lane or aisle number of 3 
the sale in the store. 4 
 (j)  Notwithstanding the provisions of subsection (h) of this section, 5 
the court shall consider the following factors when reviewing a possible 6 
violation: 7 
 (1)  The business has adopted and enforced a written policy 8 
against selling consumable hemp products to minors; 9 
 (2)  The business has informed its employees of the applicable 10 
laws regarding the sale of consumable hemp product to minors; 11 
 (3)  The business has required employees to verify the age of a 12 
customer attempting to purchase a consumable hemp product by way of 13 
photographic identification; 14 
 (4)  The business has established and imposed disciplinary 15 
sanctions for noncompliance; and 16 
 (5)  The appearance of the purchaser of the consumable hemp 17 
product was such that an ordinary prudent person would believe him or her to 18 
be of legal age to make the purchase. 19 
 (k)  A person convicted of violating any provision of this section 20 
whose permit or license to distribute or sell a consumable hemp product is 21 
suspended or revoked upon conviction shall surrender to the court any permit 22 
or license to distribute or sell a consumable hemp product, and the court 23 
shall transmit the permit or license to distribute or sell a consumable hemp 24 
product to the Director of Arkansas Tobacco Control: 25 
 (1)  To suspend or revoke the person’s permit or license to 26 
distribute or sell a consumable hemp product and to not renew the permit or 27 
license; and 28 
 (2)  Not to issue any new permit or license to that person for 29 
the period of time determined by the court in accordance with this section. 30 
 31 
 20-56-512.  Enforcement — Penalties. 32 
 (a)  It is the duty of all state, county, and city officials to assist 33 
the Arkansas Tobacco Control Board in enforcing this subchapter. 34 
 (b)  A person within the jurisdiction of this state who is not 35 
permitted to sell consumable hemp products to retailers or consumers and who 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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sells, takes orders from, delivers, or causes to be delivered immediately or 1 
in the future any consumable hemp to retailers or consumers in this state 2 
upon conviction is guilty of a Class A misdemeanor. 3 
 (c)  A person engaged in buying or selling consumable hemp products in 4 
this state without first obtaining the proper permit upon conviction is 5 
guilty of a Class A misdemeanor. 6 
 (d)  This subchapter does not prohibit the interstate transportation or 7 
shipment through this state of the plant Cannabis sativa L., and any part of 8 
that plant, including the seeds thereof and all derivatives, extracts, 9 
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 10 
not, with a total delta -9 tetrahydrocannabinol concentration of not more than 11 
three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 12 
hemp producer in another state to a licensed hemp handler in another state. 13 
 14 
 20-56-513.  Prohibitions. 15 
 (a)  It shall be unlawful for any person to: 16 
 (1)  Violate this subchapter or any rules promulgated under this 17 
subchapter; 18 
 (2)  Manufacture, produce, or market any product derived from 19 
cannabis for sale within this state, except as authorized under this 20 
subchapter and the Arkansas Medical Marijuana Amendment of 2016, Arkansas 21 
Constitution, Amendment 98; 22 
 (3) Sell or distribute any product derived from cannabis within 23 
this state or to consumers of this state, except as authorized under this 24 
subchapter and the Arkansas Medical Marijuana Amendment of 2016, Arkansas 25 
Constitution, Amendment 98; 26 
 (4)  Manufacture, distribute, sell, or market a consumable hemp 27 
product that is not reported to the Arkansas Tobacco Control Board as 28 
required by this subchapter; 29 
 (5)  Manufacture, produce, market, or sell any intoxicating hemp 30 
product; 31 
 (6)  Sell any consumable hemp product to a minor; or 32 
 (7)  Market or promote a consumable hemp product or other hemp 33 
product: 34 
 (A)  For an intoxicating effect; 35 
 (B)  As containing tetrahydrocannabinol; or 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (C)  With unlawful drug or health claims. 1 
 (b)  Any person that purposely, knowingly, or recklessly violates this 2 
subchapter relating to hemp production, manufacture, sale, distribution, 3 
marketing, or processing shall be guilty of a misdemeanor and, upon 4 
conviction of the violation, shall be fined in an amount not to exceed five 5 
thousand dollars ($5,000), or sentenced to imprisonment in the county jail 6 
for not more than one (1) year, or both. 7 
 (c)  Notwithstanding subsection (b) of this section, any person that 8 
purposefully, recklessly, or knowingly manufactures, markets, or sells an 9 
intoxicating hemp product shall be guilty of a felony. 10 
 (d)  Any violation of this subchapter is a deceptive and unconscionable 11 
trade practice under the Deceptive Trade Practices Act, § 4 -88-101 et seq., 12 
and all remedies, penalties, and authority granted to the Attorney General 13 
under the Deceptive Trade Practices Act, § 4 -88-101 et seq., shall be 14 
available to the Attorney General for the enforcement of this subchapter. 15 
 (e)  The prosecuting attorney in the county where the alleged crime was 16 
committed shall also have full authority to enforce this subchapter. 17 
 (f)  This subchapter does not prohibit the bringing of a civil action 18 
against a violator of this subchapter by an individual harmed by the 19 
violator’s acts or omissions. 20 
 21 
 20-56-514.  Consumable hemp product directory. 22 
 (a)  By December 1, 2025, and annually thereafter, every licensed 23 
consumable hemp manufacturer of a consumable hemp product that is sold for 24 
retail sale in this state, whether the consumable hemp product manufacturer 25 
is located in or outside this state, shall execute and deliver to the 26 
Arkansas Tobacco Control Board a certification, under penalty of perjury, on 27 
a form and in a manner prescribed by the board, that the manufacturer is 28 
compliant with this subchapter. 29 
 (b)  The certification form shall separately list each brand name, 30 
category, product name, and flavor for each consumable hemp product that is 31 
sold in this state. 32 
 (c)(1)  On and after December 1, 2025, the board shall maintain and 33 
make publicly available on its official website a directory that lists all 34 
consumable hemp product manufacturers, brand names, categories, product 35 
names, and flavors for which certification forms have been submitted and 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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approved by the board and shall update the directory at least monthly to 1 
ensure accuracy. 2 
 (2)  The board shall establish a process to provide licensed 3 
consumable hemp retailers, consumable hemp distributors, and consumable hemp 4 
wholesalers notice of the initial publication of the directory and changes 5 
made to the directory in the prior month. 6 
 (d)  After ninety (90) calendar days following publication of the 7 
directory, consumable hemp products not listed in the directory and intended 8 
for retail sale in this state are subject to seizure, forfeiture, and 9 
destruction, and shall not be purchased or sold for retail sale in this 10 
state. 11 
 (e)  Any person who sells or offers for sale a consumable hemp product 12 
for retail sale in this state that is not included in the directory shall be 13 
subject to a civil penalty of up to five hundred dollars ($500) for each 14 
individual consumable hemp product offered for sale in violation of this 15 
section until the offending consumable hemp product is removed from the 16 
market or until the offending consumable hemp product is properly listed on 17 
the directory. 18 
 (f)  The civil penalty collected under this section shall be deposited 19 
into the State Treasury as special revenues to the credit of the Arkansas 20 
Tobacco Control Revenue Fund. 21 
 22 
 20-56-515.  Notice required at point of sale — Penalties. 23 
 (a)  A person shall not sell or offer for sale a consumable hemp 24 
product in this state unless a clearly visible notice is posted at the 25 
location where the consumable hemp product is available for purchase. 26 
 (b)  The notice described under subsection (a) of this section shall 27 
state that: 28 
 (1)  A consumable hemp product contains tetrahydrocannabinol; 29 
 (2)  Women who are pregnant or breastfeeding should not use 30 
products that contain tetrahydrocannabinol due to the risk of birth defects 31 
and other developmental defects; and 32 
 (3)  A minor shall not purchase a consumable hemp product. 33 
 (c)(1)  In addition to the penalties under this subchapter and the 34 
Arkansas Industrial Hemp Production Act, § 2 -15-501 et seq., any person who 35 
sells or offers for sale a consumable hemp product without a notice as 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	26 	04-08-2025 10:08:29 JMB498 
 
 
described in this section shall be fined not less than five hundred dollars 1 
($500) for the first offense and not more than one thousand dollars ($1,000) 2 
for each subsequent offense. 3 
 (2)  Each violation, and every day in which a violation occurs, 4 
constitutes a separate violation. 5 
 (d)  Fines collected under this section shall be deposited into the 6 
State Treasury as special revenues to the credit of the Arkansas Tobacco 7 
Control Revenue Fund. 8 
 9 
 20-56-516.  Rules. 10 
 The Director of Arkansas Tobacco Control may promulgate rules for the 11 
proper enforcement of his or her powers and duties under this subchapter, 12 
including without limitation the regulation of processing, transportation, 13 
delivery, sale, and purchase of consumable hemp products in accordance with 14 
this subchapter and the power to levy penalties for violations of this 15 
subchapter. 16 
 17 
 SECTION 11.  Arkansas Code Title 20, Chapter 56, Subchapter 4, as 18 
amended by Acts 2025, No. 176, § 2, effective if the contingency in Acts 19 
2023, No. 629, § 17, is met, is repealed. 20 
Subchapter 4 — Hemp-Derived Products 21 
 22 
 20-56-401.  Purpose. 23 
 It is the intent of this subchapter to provide regulation of certain 24 
hemp-derived products to: 25 
 (1)  Prevent the sale and use of illicit hemp -based products 26 
within Arkansas; and 27 
 (2)  Protect and promote the public health and welfare of the 28 
residents of this state. 29 
 30 
 20-56-402.  Definitions. 31 
 As used in this subchapter: 32 
 (1)  “Annual” or “annually” means the fiscal year from July 1 33 
through the next June 30; 34 
 (2)  “Approved laboratory” means a laboratory that is accredited 35 
by the National Institute on Drug Abuse, the National Environmental 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	27 	04-08-2025 10:08:29 JMB498 
 
 
Laboratory Accreditation Conference, the International Organization for 1 
Standardization, or a similar accrediting entity as determined by Arkansas 2 
Tobacco Control and that has been approved by the Director of Arkansas 3 
Tobacco Control specifically for the testing of hemp -derived product; 4 
 (3)  “Consumer” means a member of the public at large; 5 
 (4)  “Days” means calendar days unless otherwise specified; 6 
 (5)  “Finished product” means a product intended for consumer use 7 
to be sold at retail; 8 
 (6)  “Hemp” means the plant Cannabis sativa and any part of the 9 
plant, including the seeds of the plant, that contains a delta -9 10 
tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 11 
less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 12 
isomers, acids, salts, and salts of isomers, whether growing or not; 13 
 (7)  “Hemp-derived e-liquid product” means a liquid hemp -derived 14 
product that contains hemp that is inhaled when using a vapor product, and 15 
that may or may not include without limitation propylene glycol, vegetable 16 
glycerin, and flavorings; 17 
 (8)(A)  “Hemp-derived product” means a product intended for any 18 
form of human consumption, including consumption by vapor inhalation, or a 19 
component of a product, that is derived from hemp, including all derivatives, 20 
extracts, cannabinoids, isomers, acids, salts, and salts of isomers, and any 21 
product made from such derivatives, and that contains greater than three	-22 
tenths of one percent (0.3%) tetrahydrocannabinol. 23 
 (B)  “Hemp-derived product” includes a hemp -derived e-24 
liquid product and a vapor product. 25 
 (C)  “Hemp-derived product” does not include: 26 
 (i)  A product intended for animal consumption or 27 
use; 28 
 (ii) A cosmetic as defined by § 20 -56-202; 29 
 (iii) Any marijuana, medical marijuana, or other 30 
cannabis product containing delta -9 tetrahydrocannabinol greater than three -31 
tenths of one percent (0.3%) on a dry -weight basis as administered, licensed, 32 
and otherwise regulated by the Alcoholic Beverage Control Division, the 33 
Medical Marijuana Commission, and the Department of Health under the Arkansas 34 
Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 35 
 (iv) A raw hemp product, including any intact plant, 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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flower, buds, leaves, or stems; 1 
 (v)  A drug in the form for which an application 2 
filed in accordance with 21 U.S.C. § 355 is approved by the United States 3 
Food and Drug Administration; 4 
 (vi) A dietary supplement as defined by the Federal 5 
Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or 6 
 (vii) A fabric, textile, cordage, fiber, fuel, paper, 7 
construction material, plastic, seed, seed meal, and seed oil; 8 
 (9)(A)  “Manufacturer” means a person that manufactures, 9 
fabricates, assembles, or processes a hemp -derived product, including without 10 
limitation federally licensed importers and federally licensed distributors 11 
that deal in hemp-derived products. 12 
 (B)  “Manufacturer” includes: 13 
 (i)  A sales entity affiliate of the manufacturer or 14 
any other entity representing the manufacturer with regard to the sale of 15 
hemp-derived products produced by the manufacturer to wholesalers or 16 
permitted retailers; and 17 
 (ii) A person that mixes, compounds, extracts, 18 
infuses, blends, processes, repackages, or resizes hemp -derived products 19 
including the extraction of cannabinoids from hemp biomass. 20 
 (C)  “Manufacturer” does not include a person who engages 21 
in the agricultural production of hemp, such as growing, planting, and 22 
harvesting of raw hemp biomass regulated by the State Plant Board; 23 
 (10) “Minor” means a person who is under twenty -one (21) years of 24 
age; 25 
 (11) “Person” means an individual, retailer, wholesaler, 26 
manufacturer, firm, association, company, partnership, limited liability 27 
company, corporation, joint -stock company, club, agency, syndicate, the State 28 
of Arkansas, county, municipal corporation or other political subdivision of 29 
the state, receiver, trustee, fiduciary, or trade association; 30 
 (12) “Place of business” means the physical location: 31 
 (A)  Where orders for hemp -derived products are taken or 32 
received or where hemp -derived products are sold; and 33 
 (B)  That is on file with Arkansas Tobacco Control; 34 
 (13) “Retailer” means a person that purchases hemp -derived 35 
products from permitted wholesalers for the purpose of selling the hemp	-36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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derived products in person and over the counter at retail to consumers; 1 
 (14)(A)  “Sale” or “sell” means a transfer, exchange, or 2 
barter in any manner or by any means for any consideration, including 3 
distributing or shipping hemp -derived product in connection with a sale. 4 
 (B)  A sale “in” or “into” a state refers to the state in 5 
which the destination point of the hemp -derived product is located in the 6 
sale without regard to where title was transferred. 7 
 (C)  A sale “from” a state refers to the sale of a hemp -8 
derived product that is located in that state to the destination in question 9 
without regard to where title was transferred; 10 
 (15) “Self-service display” means a display: 11 
 (A)  That contains a hemp -derived product, or any component 12 
of a hemp-derived product; 13 
 (B)  That is located in an area where customers are 14 
permitted; and 15 
 (C)  In which the hemp -derived product, or any component of 16 
a hemp-derived product, is readily accessible to a customer without the 17 
assistance of a salesperson; 18 
 (16) “Tetrahydrocannabinol” means a compound that is the natural, 19 
primary active cannabinoid substance or its equivalent contained in the plant 20 
of the genus cannabis or in the resinous extracts of the plant, including 21 
derivatives or isomers derived from such cannabinoids; 22 
 (17) “Vapor product” means hemp -derived product that is an 23 
electronic oral device of any size or shape that contains a vapor of hemp or 24 
hemp-derived e-liquid product that when used or inhaled simulates smoking, 25 
regardless of whether a visible vapor is produced, including without 26 
limitation a device that: 27 
 (A)  Is composed of a heating element, battery, electronic 28 
circuit, chemical process, mechanical device, or a combination of heating 29 
element, battery, electronic circuit, chemical process, or mechanical device; 30 
 (B)  Works in combination with a cartridge, other 31 
container, or liquid delivery device containing hemp or hemp -derived e-liquid 32 
product and manufactured for use with vapor products; 33 
 (C)  Is manufactured, distributed, marketed, or sold as any 34 
type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 35 
other produced name or descriptor; and 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (D)  Does not include a product regulated as a drug or 1 
device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 2 
as it existed on January 1, 2015; 3 
 (18) “Warehouse” means a place where hemp -derived products are 4 
stored for another person and to or from which place the hemp -derived 5 
products are shipped or delivered upon order by the owner of the hemp	-derived 6 
products, to the warehouse; and 7 
 (19) “Wholesaler” means a person other than a manufacturer or a 8 
person owned or operated by a manufacturer that: 9 
 (A)  Does business within the state; 10 
 (B)  Purchases hemp-derived products from any source; 11 
 (C)  Distributes or sells the hemp -derived products to 12 
other wholesalers, or retailers; and 13 
 (D)  Does not distribute or sell the hemp -derived products 14 
at retail to consumers. 15 
 16 
 20-56-403.  Construction. 17 
 (a)  A hemp-derived product shall not be delivered, sold, bought, or 18 
used in this state except in conformity with all applicable laws and 19 
regulations, including this subchapter and any rules promulgated under this 20 
subchapter. 21 
 (b)  A person shall not sell a hemp -derived product without being 22 
permitted by Arkansas Tobacco Control. 23 
 (c)  A product intended for human consumption or inhalation that is 24 
derived from hemp and contains tetrahydrocannabinol shall not be permitted or 25 
allowed under the laws of this state, other than hemp-derived products if 26 
otherwise legal under state law. 27 
 (d)(1)  A hemp-derived product shall not be combined with or contain 28 
any of the following: 29 
 (A)  Any liquid, hydrocolloid, animal -based substance, 30 
thickener, sweetener, flavoring, synthetic product, propylene glycol, 31 
vegetable glycerin, or other non -hemp-derived substance; 32 
 (B)  Nicotine or tobacco; or 33 
 (C)  Any amount of tetrahydrocannabinol as to create a 34 
danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 35 
other risk to the public. 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (2)  Medical devices, prescription drugs, or drugs otherwise 1 
approved by the United States Food and Drug Administration shall not be 2 
considered hemp-derived products. 3 
 (e)  The business of handling, receiving, possessing, storing, 4 
distributing, taking orders for, soliciting orders of, selling, offering for 5 
sale, and dealing in, through sale, barter, or exchange, hemp -derived 6 
products is declared to be a privilege under the Arkansas Constitution and 7 
laws of the State of Arkansas. 8 
 9 
 20-56-404.  Permits. 10 
 (a)(1)  Each person listed in this section, before commencing business, 11 
or if already in business, before continuing business, shall pay an annual 12 
privilege fee and secure a permit from the Director of Arkansas Tobacco 13 
Control. 14 
 (2)  A person purchasing an existing permitted retail location 15 
may, with the permission of the seller and Arkansas Tobacco Control, operate 16 
under the selling owner's permit for no more than thirty (30) days from the 17 
date of the sale. 18 
 (b)(1)  In addition to securing a permit under subsection (a) of this 19 
section, a manufacturer whose products are sold in this state shall register 20 
with the Secretary of the Department of Finance and Administration. 21 
 (2)  A wholesaler of hemp -derived products shall secure the 22 
proper wholesale permit. 23 
 (3)  Every retailer of hemp -derived products that operates a 24 
place of business shall secure the proper retail permit. 25 
 (c)(1)  Permits shall be issued as follows: 26 
 (A)  A permit for a sole proprietorship is issued in the 27 
owner's name and in the fictitious business name, if any; 28 
 (B)(i)  A permit for a partnership or limited liability 29 
company is issued in the name of: 30 
 (a)  The managing partner or managing member; 31 
and 32 
 (b)  The partnership or limited liability 33 
company. 34 
 (ii) If the managing partner or managing member of a 35 
limited liability company is a partnership, limited liability company, or 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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corporation, then the permit shall be issued in the name of: 1 
 (a)  The president or chief executive officer; 2 
and 3 
 (b)  The partnership or limited liability 4 
company; and 5 
 (C)  A permit for a publicly traded or nonpublicly traded 6 
corporation is issued in the name of the president or chief executive officer 7 
of the corporation and in the name of the corporation. 8 
 (2)  It is a violation for a permitted entity not to provide 9 
written notification to the director within thirty (30) days of a change in 10 
the following: 11 
 (A)  The managing partner, limited liability company 12 
managing member, or president or chief executive officer of a corporation, 13 
partnership, or limited liability company; or 14 
 (B)  The stockholders effecting twenty -five percent (25%) 15 
or more of the total voting shares of a nonpublicly traded corporation. 16 
 (d)(1)  When an entity transfers a business permitted under this 17 
subchapter, the entity to which the business is transferred: 18 
 (A)  Shall apply for a new permit under this subchapter; 19 
 (B)  May be issued a new permit under this subchapter; and 20 
 (C)  May operate under the selling entity's permit for no 21 
more than thirty (30) days from the date of the sale. 22 
 (2)  When a partnership or limited liability company permitted 23 
under this subchapter changes, removes, or replaces the managing partner, 24 
managing member, president, or chief executive officer: 25 
 (A)  The existing permit issued under this subchapter is 26 
void; and 27 
 (B)  The partnership or limited liability company: 28 
 (i)  Shall apply for a new permit under this 29 
subchapter; 30 
 (ii) May be issued a new permit under this 31 
subchapter; and 32 
 (iii) May operate under the voided permit for no more 33 
than thirty (30) days from the date of the change, removal, or replacement of 34 
the managing partner, managing member, president, or chief executive officer. 35 
 (3)  When a nonpublicly traded corporation permitted under this 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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subchapter changes, removes, or replaces the president or chief executive 1 
officer named on the permit or changes, removes, or replaces a stockholder 2 
who owns fifty percent (50%) or more of the total voting shares of the 3 
nonpublicly traded corporation's stock: 4 
 (A)  The permit issued under this subchapter is void; and 5 
 (B)  The nonpublicly traded corporation: 6 
 (i)  Shall apply for a new permit under this 7 
subchapter; 8 
 (ii) May be issued a new permit under this 9 
subchapter; and 10 
 (iii) May operate under the voided permit for no more 11 
than thirty (30) days from the date of the change, removal, or replacement of 12 
the president, chief executive officer, or stockholder. 13 
 (4)  When a publicly traded corporation permitted under this 14 
subchapter changes, removes, or replaces the president or chief executive 15 
officer named on the permit or changes, removes, or replaces a stockholder 16 
who owns fifty percent (50%) or more of the total voting shares of the 17 
publicly traded corporation's stock: 18 
 (A)  The permit issued under this subchapter is void; and 19 
 (B)  The publicly traded corporation: 20 
 (i)  Shall apply for a new permit under this 21 
subchapter; 22 
 (ii) May be issued a new permit under this 23 
subchapter; and 24 
 (iii) May operate under the voided permit for no more 25 
than thirty (30) days from the date of the change, removal, or replacement of 26 
the president, chief executive officer, or stockholder. 27 
 (e)  An entity may apply for and be issued a permit under this 28 
subchapter in advance of the effective date of the permit to facilitate 29 
continuity of business operations. 30 
 31 
 20-56-405.  Permits — Location — Background check required. 32 
 (a)  A retail, wholesale, or manufacturer permit shall not be issued to 33 
a residential address, a mobile structure or vehicle, or for an address not 34 
zoned appropriately for the business seeking to secure the permit. 35 
 (b)  A permit shall not be issued to: 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (1)  A person who has pleaded guilty or nolo contendere to or 1 
been found guilty of a felony; or 2 
 (2)  A business owned or operated, in whole or in part, by a 3 
person who has pleaded guilty or nolo contendere to or been found guilty of a 4 
felony. 5 
 (c)  Arkansas Tobacco Control shall conduct a criminal background check 6 
on each permit applicant and application, utilizing its Arkansas Crime 7 
Information Center access as a law enforcement agency, in accordance with §§ 8 
12-12-1008 — 12-12-1011. 9 
 10 
 20-56-406.  Permits — Annual privilege fees. 11 
 (a)  The annual privilege fee for each permit authorized by this 12 
subchapter is established as follows: 13 
 (1)  Wholesale Hemp-derived Products Permit.............$5,000 14 
 (2)  Retail Hemp-derived Products Permit.............$5,000 15 
 (3)  Manufacturer Hemp -derived Products Permit.............$5,000 16 
 (b)(1)  All permits issued under this subchapter shall expire on June 17 
30 following the effective date of issuance. 18 
 (2)(A)  Upon the failure to timely renew a permit issued under 19 
this subchapter, a late fee of two (2) times the amount of the appropriate 20 
permit fee shall be owed in addition to the annual privilege fee for the 21 
permit. 22 
 (B)  An expired permit that is not renewed before September 23 
1 following the expiration of the permit shall not be renewed, and the holder 24 
of the expired permit shall submit an application for a new permit. 25 
 (3)  A permit shall not be issued to the applicant until the late 26 
fee and the permit fee have been paid. 27 
 (c)  A permit issued under this subchapter shall not be renewed for a 28 
permit holder who is delinquent more than ninety (90) days on a privilege 29 
fee, tax relating to the sale or dispensing of hemp -derived products, or any 30 
other state and local tax due to the Secretary of the Department of Finance 31 
and Administration. 32 
 (d)  A person who is delinquent more than ninety (90) days on a state 33 
or local tax may not renew or obtain a permit issued under this subchapter 34 
except upon certification that the permit holder has entered into a repayment 35 
agreement with the Department of Finance and Administration and is current on 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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the payments. 1 
 (e)  A permit holder who has unpaid fees, civil penalties, or an 2 
unserved permit suspension may not transfer, sell, or give hemp -derived 3 
product inventory of the business associated with the permit to a third party 4 
until all fees and civil penalties are paid in full and all suspensions are 5 
completed successfully, nor shall any third party be issued a new permit for 6 
the business location. 7 
 (f)  Each manufacturer, wholesaler, and retailer shall retain copies of 8 
all invoices for the purchase or sale of any hemp -derived products for a 9 
period of at least ten (10) years subject to examination by the Secretary of 10 
the Department of Finance and Administration and the Director of Arkansas 11 
Tobacco Control or their authorized agents upon demand at any time during 12 
regular business hours. 13 
 (g)  A retailer shall: 14 
 (1)  Maintain copies of at least the last three hundred sixty -15 
five (365) days of hemp -derived product invoices, which the retailer shall 16 
provide immediately upon demand; 17 
 (2)(A)  Make the invoices that are older than three hundred 18 
sixty-five (365) days available upon demand at any time during normal 19 
business hours in the retail store. 20 
 (B)  Except as provided in subdivision (g)(2)(C) of this 21 
section, an agent of Arkansas Tobacco Control may determine a reasonable time 22 
frame for which invoices are to be provided under subdivision (g)(2)(A) of 23 
this section. 24 
 (C)  An invoice that is provided seventy -two (72) hours or 25 
more after the demand shall not be considered for purposes of determining a 26 
violation of this subsection; 27 
 (3)  Retain invoices for all hemp -derived products in the retail 28 
store even if the invoice for the hemp -derived products is older than three 29 
(3) years; 30 
 (4)  Maintain a copy of the signed server awareness forms for 31 
each employee of the retailer who engages in the sale of hemp -derived 32 
products, which the retailer shall provide immediately upon demand; 33 
 (5)(A)  Maintain a copy of any complete transfer forms showing: 34 
 (i)  The hemp-derived products that were transferred; 35 
 (ii) The permitted location from which the hemp -36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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derived products were transferred; and 1 
 (iii) When the transfer occurred. 2 
 (B)  A transfer form shall be completed contemporaneously 3 
with the transfer and shall be provided immediately by the retailer upon 4 
demand; and 5 
 (6)  If any inventory was submitted with a permit application, 6 
maintain a copy of the submitted inventory form, which the retailer shall 7 
provide immediately upon demand. 8 
 (h)  A wholesaler and manufacturer shall: 9 
 (1)  Maintain ten (10) years of hemp -derived product invoices 10 
that are available upon demand during normal business hours in the permitted 11 
location; and 12 
 (2)  Permit Arkansas Tobacco Control and authorized personnel of 13 
Arkansas Tobacco Control to enter into and inspect stock of hemp -derived 14 
products, and any documents and records relating to receipts and 15 
disbursements of hemp -derived products. 16 
 (i)  An invoice from a wholesaler to a retailer shall contain the name 17 
or other identifying information of the wholesaler and the retailer. 18 
 (j)(1)  A nonresident wholesaler shall also keep a record of all hemp	-19 
derived products purchased for distribution within this state. 20 
 (2)  All books, records, and memoranda pertaining to the purchase 21 
and sale of the hemp -derived products under subdivision (j)(1) of this 22 
section shall be subject to inspection by Arkansas Tobacco Control. 23 
 (k)  Authorized personnel of Arkansas Tobacco Control shall not release 24 
to the Arkansas Tobacco Control Board or to the public any information 25 
identifying customers of the manufacturer, wholesaler, or warehouse except 26 
when necessary to notify the board of alleged violations of this subchapter. 27 
 28 
 20-56-407.  Permits — Not transferable — Duplicates. 29 
 (a)  A permit under this subchapter is not: 30 
 (1)  Transferable to a subsequent owner or operator; or 31 
 (2)  Transferable to a different physical location unless the 32 
permit holder obtains permission from the Director of Arkansas Tobacco 33 
Control. 34 
 (b)  A person purchasing an existing permitted retail location may 35 
operate under the selling owner's permit for no more than thirty (30) days 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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from the date of the sale. 1 
 (c)  When a permit is lost by a permit holder, a duplicate permit may 2 
be issued upon application and for a fee of five dollars ($5.00) when 3 
sufficient proof has been given to the Director of Arkansas Tobacco 	Control. 4 
 5 
 20-56-408.  Permits — Suspension or revocation. 6 
 (a)  All permits issued under this subchapter shall be suspended or 7 
revoked by the Director of Arkansas Tobacco Control for any violation of this 8 
subchapter or the rules pertaining to this subchapter, subject to a hearing 9 
before the Arkansas Tobacco Control Board at the next regularly scheduled 10 
board meeting. 11 
 (b)  The director may revoke all permits to deal in hemp -derived 12 
products associated with any person who is convicted of or pleads guilty or 13 
nolo contendere to criminally violating this subchapter, subject to a hearing 14 
before the board at the next regularly scheduled board meeting. 15 
 16 
 20-56-409.  Advertising prohibitions and packaging requirements. 17 
 (a)  A hemp-derived product distributed or offered for sale in this 18 
state shall include the following information on the product label or product 19 
packaging: 20 
 (1)  The name of the hemp -derived product manufacturer, whether 21 
in-state or out-of-state, and distributor, whether in -state or out-of-state; 22 
 (2)  Product labeling clearly showing that the product contains 23 
material derived from hemp and not marijuana or medical marijuana; and 24 
 (3)  Any other marking, words, statement, or symbol as required 25 
by Arkansas Tobacco Control through rules. 26 
 (b)  A person shall not advertise, market, or offer for sale in this 27 
state any hemp-derived product by using, in the labeling or design of the 28 
product, its packaging, or in its advertising or marketing materials, trade 29 
dress, trademarks, branding, or other related imagery that: 30 
 (1)  Imitates or replicates those of food brands or other related 31 
products that are marketed to or are commonly associated with children or 32 
minors, including without limitation breakfast cereal, cookies, juice drinks, 33 
soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 34 
 (2)  Depicts or signifies characters or symbols that are known to 35 
a reasonable person to appeal primarily to or are commonly associated with 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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children or minors, including without limitation superheroes, cartoons or 1 
cartoon characters, including anime characters, comic book characters, video 2 
game characters, television show characters, movie characters, mythical 3 
creatures, unicorns, or that otherwise incorporates related imagery or 4 
scenery; or 5 
 (3)  Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 6 
or “cupcakes” or any variant of these terms, or any other term referencing a 7 
type or brand of candy, cakes, pastries, or pies, including types or brands 8 
of candy, cakes, pastries, or pies that do not include the words “candy”, 9 
“candies”, “cake”, “cakes”, “pies”, or “cupcakes” in their names, labels, or 10 
slogans. 11 
 12 
 20-56-410.  Testing. 13 
 (a)  All hemp-derived products sold in this state shall be tested by an 14 
approved laboratory. 15 
 (b)  An approved laboratory shall be an independent third -party 16 
laboratory. 17 
 (c)  A hemp-derived product sold in this state shall be tested for the 18 
following and marked as to the hemp -derived product chemical makeup before 19 
being sold to consumers: 20 
 (1)  Cannabinoid profile; 21 
 (2)  Solvents; 22 
 (3)  Pesticides; 23 
 (4)  Microbials; 24 
 (5)  Heavy metals; and 25 
 (6)  Any non-hemp-based substance. 26 
 (d)  A hemp-derived product shall not be distributed or sold in this 27 
state without a certificate of analysis from an approved laboratory that 28 
confirms: 29 
 (1)  The hemp-derived product was tested by an approved 30 
laboratory; 31 
 (2)  A tested representative sample of the hemp -derived product 32 
contained a total delta -9 tetrahydrocannabinol concentration that did not 33 
exceed three-tenths of one percent (0.3%) under this subchapter; and 34 
 (3)  A detailed analysis and list of chemical makeup of the 35 
tested hemp-derived product under subsection (c) of this section. 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (e)  Arkansas Tobacco Control may periodically sample, analyze, and 1 
test any hemp-derived product located in this state. 2 
 (f)  The Director of Arkansas Tobacco Control shall: 3 
 (1)  Investigate and issue subpoenas to any permittee or approved 4 
laboratory used by a permittee that the director has reasonable suspicion of 5 
intentionally producing falsified test results on hemp -derived products; and 6 
 (2)  Promulgate rules for the enforcement of this section and set 7 
penalties for any violation of the rules. 8 
 9 
 20-56-411.  Providing minors with hemp -derived products — Purchase, 10 
use, or possession prohibited. 11 
 (a)(1)  It is unlawful for any person to give, barter, or sell to a 12 
minor a hemp-derived product. 13 
 (2)  Except as provided in subdivision (a)(3) of this section, a 14 
person who pleads guilty or nolo contendere to or is found guilty of 15 
violating subdivision (a)(1) of this section is guilty of a Class A 16 
misdemeanor. 17 
 (3)  An employee or owner of a retail location permitted under 18 
this subchapter who violates subdivision (a)(1) of this section while inside 19 
the retail location upon conviction is subject to a fine not to exceed one 20 
hundred dollars ($100) per violation. 21 
 (b)(1)  It is unlawful for a minor to: 22 
 (A)  Use or possess or to purchase or attempt to purchase a 23 
hemp-derived product; or 24 
 (B)  For the purpose of obtaining or attempting to obtain a 25 
hemp-derived product, falsely represent himself or herself not to be a minor 26 
by displaying proof of age that is false, fraudulent, or not actually proof 27 
of the minor's age. 28 
 (2)  Any hemp-derived product found in the possession of a minor 29 
may be confiscated and destroyed by a law enforcement officer. 30 
 (c)(1)  It is not an offense under subsection (b) of this section if: 31 
 (A)  The minor was acting at the direction of an authorized 32 
agent of Arkansas Tobacco Control to enforce or ensure compliance with laws 33 
relating to the prohibition of the sale of hemp -derived product to minors; 34 
 (B)  The minor was acting at the direction of an authorized 35 
agent of the Division of Aging, Adult, and Behavioral Health Services of the 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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Department of Human Services to compile statistical data relating to the sale 1 
of hemp-derived products to minors; 2 
 (C)  The minor was acting at the request of a permit holder 3 
to assist the permit holder by performing a check on the permit holder's own 4 
retail business to see if the permit holder's employees would sell hemp	-5 
derived products to the minor; or 6 
 (D)  The minor was acting as an agent of a retail permit 7 
holder within the scope of employment. 8 
 (2)  A minor performing activities under subdivision (c)(1) of 9 
this section shall: 10 
 (A)  Display the appearance of a minor; 11 
 (B)  Have the written consent of the minor's parent or 12 
guardian to perform the activity on file with the agency utilizing the minor; 13 
and 14 
 (C)(i)  Present a true and correct identification if asked. 15 
 (ii) Any failure on the part of a minor to provide 16 
true and correct identification upon request is a defense to any action under 17 
this section or a civil action under § 26 -57-256. 18 
 (d)  Any person who sells hemp -derived products has the right to deny 19 
the sale of any hemp -derived product to any person. 20 
 (e)  It is unlawful for any person who has been issued a permit or a 21 
license under this subchapter to fail to display in a conspicuous place a 22 
sign indicating that the sale of hemp -derived products to or purchase or 23 
possession of hemp-derived products by a minor is prohibited by law. 24 
 (f)  It is unlawful for any manufacturer whose hemp -derived product is 25 
distributed in this state and any person who has been issued a permit or 26 
license under this subchapter to distribute a free sample of any hemp	-derived 27 
product, or any component of a hemp -derived product or coupon that entitles 28 
the holder of the coupon to any free sample of any hemp -derived product, or 29 
any component of a hemp -derived product: 30 
 (1)  In or on any public street or sidewalk within five hundred 31 
feet (500′) of any playground, public school, or other facility when the 32 
playground, public school, or other facility is being used primarily by 33 
minors for recreational, educational, or other purposes; or 34 
 (2)  To any minor. 35 
 (g)  It is unlawful for any person that has been issued a permit or 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	41 	04-08-2025 10:08:29 JMB498 
 
 
license under this subchapter to: 1 
 (1)  Sell or distribute a hemp -derived product through a self -2 
service display, a vending machine, or an order executed solely over the 3 
internet or similar means; or 4 
 (2)  Advertise or promote hemp -derived products in a manner that 5 
is intended to appeal to children. 6 
 (h)  Any retail permit holder or license holder who violates any 7 
provision in this section is deemed guilty of a violation and subject to 8 
penalties under § 26 -57-256. 9 
 (i)(1)  A notice of an alleged violation of this section shall be given 10 
to the holder of a retail permit or license or an agent of the holder within 11 
ten (10) days of the alleged violation. 12 
 (2)(A)  The notice under subdivision (i)(1) of this section shall 13 
contain the date and time of the alleged violation. 14 
 (B)(i)  The notice under subdivision (i)(1) of this section 15 
shall also include either the name of the person making the alleged sale or 16 
information reasonably necessary to determine the location in the store that 17 
allegedly made the sale. 18 
 (ii)  When appropriate, information under subdivision 19 
(i)(2)(B)(i) of this section should include, but not be limited to, the: 20 
 (a)  Cash register number of the sale in the 21 
store; 22 
 (b)  Physical location of the sale in the 23 
store; and 24 
 (c)  If possible, the lane or aisle number of 25 
the sale in the store. 26 
 (j)  Notwithstanding the provisions of subsection (h) of this section, 27 
the court shall consider the following factors when reviewing a possible 28 
violation: 29 
 (1)  The business has adopted and enforced a written policy 30 
against selling hemp -derived products to minors; 31 
 (2)  The business has informed its employees of the applicable 32 
laws regarding the sale of hemp -derived products to minors; 33 
 (3)  The business has required employees to verify the age of a 34 
customer attempting to purchase a hemp -derived product by way of photographic 35 
identification; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (4)  The business has established and imposed disciplinary 1 
sanctions for noncompliance; and 2 
 (5)  That the appearance of the purchaser of the hemp -derived 3 
product was such that an ordinary prudent person would believe him or her to 4 
be of legal age to make the purchase. 5 
 (k)  A person convicted of violating any provision of this section 6 
whose permit or license to distribute or sell a hemp -derived product is 7 
suspended or revoked upon conviction shall surrender to the court any permit 8 
or license to distribute or sell a hemp -derived product, and the court shall 9 
transmit the permit or license to distribute or sell a hemp -derived product 10 
to the Director of Arkansas Tobacco Control: 11 
 (1)  To suspend or revoke the person's permit or license to 12 
distribute or sell a hemp -derived product and to not renew the permit or 13 
license; and 14 
 (2)  Not to issue any new permit or license to that person for 15 
the period of time determined by the court in accordance with this section. 16 
 17 
 20-56-412.  Enforcement — Penalties. 18 
 (a)  It is the duty of all state, county, and city officers to assist 19 
Arkansas Tobacco Control in enforcing this subchapter. 20 
 (b)  A person within the jurisdiction of this state who is not 21 
permitted to sell hemp -derived products to retailers or consumers and who 22 
sells, takes orders from, delivers, or causes to be delivered immediately or 23 
in the future any hemp -derived products to retailers or consumers in the 24 
State of Arkansas is guilty of a Class A misdemeanor. 25 
 (c)  A person engaged in buying or selling hemp -derived products in 26 
this state without first obtaining the proper permit upon conviction is 27 
guilty of a Class A misdemeanor. 28 
 (d)  This subchapter does not prohibit in any form the continuous 29 
transportation through Arkansas of the plant Cannabis sativa L., and any part 30 
of that plant, including the seeds thereof and all derivatives, extracts, 31 
cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 32 
not, with a total delta -9 tetrahydrocannabinol concentration of not more than 33 
three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 34 
hemp producer in another state to a licensed hemp handler in another state. 35 
 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 20-56-413.  Rules. 1 
 The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 2 
may promulgate rules for the proper enforcement of their powers and duties 3 
under this subchapter, including without limitation the regulation of 4 
processing, transportation, delivery, sale, and purchase of hemp -derived 5 
products in accordance with this subchapter and the power to levy penalties 6 
for violations of this subchapter. 7 
 8 
 SECTION 12.  Arkansas Code § 26 -57-247(b), effective until the 9 
contingency in Acts 2023, No. 629, § 17, is met, concerning those unstamped 10 
and untaxed items that may be seized by the Director of Arkansas Tobacco 11 
Control, is amended to read as follows: 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, or e-liquid 15 
products, consumable hemp products, or intoxicating hemp products found in 16 
the possession of a person dealing in, or a consumer of, tobacco products, 17 
vapor products, alternative nicotine products, or e-liquid products, 18 
consumable hemp products, or intoxicating hemp products if: 19 
 (1)  Prima facie evidence exists that the full amount of excise 20 
tax due on the tobacco products has not been paid to the Secretary of the 21 
Department of Finance and Administration; 22 
 (2)  Tobacco products, vapor products, alternative nicotine 23 
products, or e-liquid products are in the possession of a wholesaler who does 24 
not possess a current Arkansas wholesale permit; 25 
 (3)  A retail establishment does not possess a current Arkansas 26 
retail permit; 27 
 (4)  The tobacco products, vapor products, alternative nicotine 28 
products, or e-liquid products have been offered for sale to the public at 29 
another location without a current Arkansas retail permit .; or 30 
 (5)  Consumable hemp products or intoxicating hemp products are 31 
possessed, sold, or offered for sale in violation of § 20 -56-501 et seq. 32 
 33 
 SECTION 13. Arkansas Code § 26-57-247, effective if the contingency in 34 
Acts 2023, No. 629, § 17, is met, is repealed. 35 
 26-57-247.  Seizure, forfeiture, and disposition of tobacco products 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	44 	04-08-2025 10:08:29 JMB498 
 
 
and other property. 1 
 (a)  Cigarettes to which stamps have not been affixed as provided by 2 
law are subject to seizure and shall be held as evidence for prosecution. 3 
 (b)  The Director of Arkansas Tobacco Control may seize and hold for 4 
disposition of the courts or the Arkansas Tobacco Control Board all tobacco 5 
products, vapor products, alternative nicotine products, e -liquid products, 6 
or hemp-derived products found in the possession of a person dealing in, or a 7 
consumer of, tobacco products, vapor products, alternative nicotine products, 8 
e-liquid products, or hemp -derived products if: 9 
 (1)  Prima facie evidence exists that the full amount of excise 10 
tax due on the tobacco products has not been paid to the Secretary of the 11 
Department of Finance and Administration; 12 
 (2)  Tobacco products, vapor products, alternative nicotine 13 
products, or e-liquid products are in the possession of a wholesaler who does 14 
not possess a current Arkansas wholesale permit; 15 
 (3)  A retail establishment does not possess a current Arkansas 16 
retail permit; 17 
 (4)  The tobacco products, vapor products, alternative nicotine 18 
products, or e-liquid products have been offered for sale to the public at 19 
another location without a current Arkansas retail permit; or 20 
 (5)  Hemp-derived products are possessed, sold, or offered for 21 
sale in violation of § 20 -56-401 et seq. 22 
 (c)  Property, including money, used to facilitate a violation of this 23 
subchapter or the Unfair Cigarette Sales Act, § 4 -75-701 et seq., may be 24 
seized and forfeited to the state. 25 
 (d)(1)  A prosecuting attorney may institute a civil action against a 26 
person who is convicted of a criminal violation under this subchapter or the 27 
Unfair Cigarette Sales Act, § 4 -75-701 et seq., to obtain a judgment for: 28 
 (A)  Damages in an amount equal to the value of the 29 
property, funds, or a monetary instrument involved in the violation; 30 
 (B)  The proceeds acquired by a person involved in the 31 
enterprise or by reason of conduct in furtherance of the violation; and 32 
 (C)  Costs incurred by Arkansas Tobacco Control in the 33 
investigation, prosecution, and adjudication of criminal, civil, and 34 
administrative proceedings. 35 
 (2)  The standard of proof in an action brought under subdivision 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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(d)(1) of this section is preponderance of the evidence. 1 
 (e)  The following are subject to forfeiture under this section upon 2 
order by a circuit court: 3 
 (1)  Tobacco products, vapor products, alternative nicotine 4 
products, or e-liquid products distributed, dispensed, or acquired in 5 
violation of this subchapter; 6 
 (2)  Raw materials, products, or equipment used or intended for 7 
use in manufacturing, compounding, processing, delivering, importing, or 8 
exporting a tobacco product, vapor product, alternative nicotine product, or 9 
e-liquid product in violation of this subchapter; 10 
 (3)  Property that is used or intended for use as a container for 11 
property described in subdivision (e)(1) or subdivision (e)(2) of this 12 
section; 13 
 (4)(A)  Except as provided in subdivision (e)(4)(B) of this 14 
section, a conveyance, including an aircraft, vehicle, or vessel, that is 15 
used or intended to be used to transport or in any manner to facilitate the 16 
transportation for the purpose of sale or receipt of property described in 17 
subdivision (e)(1) or subdivision (e)(2) of this section. 18 
 (B)(i)  A conveyance used by a person as a common carrier 19 
in the transaction of business as a common carrier is not subject to 20 
forfeiture under this section unless it appears that the owner or other 21 
person in charge of the conveyance is a consenting party or privy to a 22 
violation of this subchapter. 23 
 (ii) A conveyance is not subject to forfeiture under 24 
this section by reason of an act or omission established by the owner of the 25 
conveyance to have been committed or omitted without his or her knowledge or 26 
consent. 27 
 (C)  Upon a showing described in subdivision (e)(4)(B)(i) 28 
of this section by the owner or interest holder of a conveyance, the 29 
conveyance may nevertheless be forfeited if the prosecuting attorney 30 
establishes that the owner or interest holder either knew or should 31 
reasonably have known that the conveyance would be used to transport or in 32 
any manner to facilitate the transportation for the purpose of sale or 33 
receipt of property described in subdivision (e)(1) or subdivision (e)(2) of 34 
this section. 35 
 (D)  A conveyance encumbered by a bona fide security 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	46 	04-08-2025 10:08:29 JMB498 
 
 
interest is subject to the interest of the secured party if the secured party 1 
neither had knowledge of nor consented to an act or omission in violation of 2 
this subchapter; 3 
 (5)  A book, record, or research product or material, including a 4 
formula, microfilm, tape, or data that is used or intended for use in 5 
violation of this subchapter; 6 
 (6)(A)  Except as provided in subdivision (e)(6)(B) of this 7 
section, a thing of value, including: 8 
 (i)  Firearms purchased from the proceeds of the sale 9 
of untaxed tobacco products, vapor products, alternative nicotine products, 10 
or e-liquid products in violation of this subchapter or used in furtherance 11 
of a criminal offense as described in § 26 -57-245; 12 
 (ii) Proceeds or profits traceable to an exchange 13 
described in subdivision (e)(6)(A)(i) of this section; and 14 
 (iii) Money, negotiable instruments, or security used 15 
or intended to be used to facilitate a violation of this subchapter. 16 
 (B)  Property shall not be forfeited under subdivision 17 
(e)(6)(A) of this section to the extent of the interest of an owner by reason 18 
of an act or omission established by him or her by a preponderance of the 19 
evidence to have been committed or omitted without his or her knowledge or 20 
consent; 21 
 (7)(A)  Money, coins, or currency found in close proximity to a 22 
forfeitable tobacco product, vapor product, alternative nicotine product, or 23 
e-liquid product or a forfeitable record of an importation of a tobacco 24 
product, vapor product, alternative nicotine product, or e -liquid product is 25 
presumed to be forfeitable under this section. 26 
 (B)  The burden of proof is upon a claimant of the money, 27 
coins, or currency to rebut the presumption in subdivision (e)(7)(A) of this 28 
section by a preponderance of the evidence; and 29 
 (8)(A)  Except as provided in subdivision (e)(8)(B) of this 30 
section, real property if it substantially assisted in, facilitated in any 31 
manner, or was used or intended for use in the commission of any act 32 
prohibited by this subchapter. 33 
 (B)(i)  Real property is not subject to forfeiture under 34 
this section by reason of an act or omission established by the owner of the 35 
real property by a preponderance of the evidence to have been committed or 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	47 	04-08-2025 10:08:29 JMB498 
 
 
omitted without his or her knowledge or consent. 1 
 (ii) A forfeiture of real property encumbered by a 2 
mortgage or other lien is subject to the interest of the secured party if the 3 
secured party neither had knowledge of nor consented to an act or omission in 4 
violation of this subchapter. 5 
 (iii) If the circuit court finds by a preponderance 6 
of the evidence that grounds for a forfeiture exist under this section, the 7 
court shall enter an order requiring the forfeiture of the real property. 8 
 (C)  Upon an order of forfeiture of real property, the 9 
order shall be filed on the day issued and shall have prospective effect. 10 
 (D)  A forfeiture of real property does not affect the 11 
title of a bona fide purchaser who purchased the real property before the 12 
issuance of the order, and the order has no force or effect on the title of 13 
the bona fide purchaser. 14 
 (E)  A lis pendens filed in connection with an action 15 
pending under this section that may result in the forfeiture of real property 16 
is effective only from the time filed and has no retroactive effect. 17 
 (f)  A tobacco product, vapor product, alternative nicotine product, or 18 
e-liquid product that is possessed, transferred, sold, or offered for sale in 19 
violation of this subchapter may be seized and immediately forfeited to the 20 
state. 21 
 (g)(1)  Property subject to forfeiture under this subchapter may be 22 
seized by a law enforcement agent upon process issued by a circuit court 23 
having jurisdiction over the property on petition filed by the prosecuting 24 
attorney of the judicial circuit. 25 
 (2)  Seizure without process may be made if: 26 
 (A)  The seizure is incident to an arrest or a search under 27 
a search warrant or an inspection under the regulatory authority of Arkansas 28 
Tobacco Control; 29 
 (B)  The property subject to seizure has been the subject 30 
of a prior judgment in favor of the state in a criminal injunction or 31 
forfeiture proceeding based upon this subchapter; 32 
 (C)  The seizing law enforcement agency has probable cause 33 
to believe that the property is directly or indirectly dangerous to health or 34 
safety; or 35 
 (D)  The seizing law enforcement agency has probable cause 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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to believe that the property was used or is intended to be used in violation 1 
of this subchapter. 2 
 (h)(1)  A state or local law enforcement agency shall not transfer 3 
property seized by the state or local agency under this section to a federal 4 
entity for forfeiture under federal law unless the circuit court having 5 
jurisdiction over the property enters an order, upon petition by the 6 
prosecuting attorney, authorizing the property to be transferred to the 7 
federal entity. 8 
 (2)  The transfer shall not be approved unless it reasonably 9 
appears that the activity giving rise to the investigation or seizure 10 
involves more than one (1) state or the nature of the investigation or 11 
seizure would be better pursued under federal law. 12 
 (i)(1)  Property seized for forfeiture under this section is not 13 
subject to replevin but is deemed to be in the custody of the seizing law 14 
enforcement agency subject only to an order or decree of the circuit court 15 
having jurisdiction over the property seized. 16 
 (2)  Subject to a need to retain the property as evidence, when 17 
property is seized under this subchapter, the seizing law enforcement agency 18 
may: 19 
 (A)  Remove the property to a place designated by the 20 
circuit court; 21 
 (B)  Place the property under constructive seizure, posting 22 
notice of pending forfeiture on it by: 23 
 (i)  Giving notice of pending forfeiture to its 24 
owners and interest holders; or 25 
 (ii) Filing notice of pending forfeiture in an 26 
appropriate public record relating to the property; 27 
 (C)  Remove the property to a storage area for safekeeping 28 
or, if the property is a negotiable instrument or money or is not needed for 29 
evidentiary purposes, deposit it into an interest -bearing account; or 30 
 (D)  Provide for another agency or custodian, including an 31 
owner, secured party, mortgagee, or lienholder, to take custody of the 32 
property and service, maintain, and operate it as reasonably necessary to 33 
maintain its value in an appropriate location within the jurisdiction of the 34 
court. 35 
 (3)(A)  In case of transfer of property, a transfer receipt shall 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	49 	04-08-2025 10:08:29 JMB498 
 
 
be prepared by the transferring agency. 1 
 (B)  The transfer receipt shall: 2 
 (i)  List a detailed and complete description of the 3 
property being transferred; 4 
 (ii) State to whom the property is being transferred 5 
and the source or authorization for the transfer; and 6 
 (iii) Be signed by both the transferor and the 7 
transferee. 8 
 (C)  Both transferor and transferee shall maintain a copy 9 
of the transfer receipt. 10 
 (4)  A person who acts as custodian of property under this 11 
section is not liable to any person on account of an act done in a reasonable 12 
manner in compliance with an order under this subchapter. 13 
 (j)(1)  Property seized by a state or local law enforcement officer 14 
under this section who is detached to, deputized or commissioned by, or 15 
working in conjunction with a federal agency remains subject to this section. 16 
 (2)(A)  If property is seized for forfeiture by a law enforcement 17 
agency under this section, the seizing law enforcement officer shall prepare 18 
and sign a confiscation report. 19 
 (B)(i)  The party from whom the property is seized shall 20 
also sign the confiscation report if present and shall immediately receive a 21 
copy of the confiscation report. 22 
 (ii) If the party refuses to sign the confiscation 23 
report, the confiscation report shall be signed by one (1) additional law 24 
enforcement officer, stating that the party refused to sign the confiscation 25 
report. 26 
 (C)  The original confiscation report shall be: 27 
 (i)  Filed with the seizing law enforcement agency 28 
within forty-eight (48) hours after the seizure; and 29 
 (ii) Maintained in a separate file. 30 
 (D)  One (1) copy of the confiscation report shall be 31 
retained by the seizing law enforcement officer. 32 
 (3)  The confiscation report shall contain the following 33 
information: 34 
 (A)  A detailed description of the property seized 35 
including serial or model numbers and odometer or hour reading of vehicles or 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	50 	04-08-2025 10:08:29 JMB498 
 
 
equipment; 1 
 (B)  The date of seizure; 2 
 (C)  The name and address of the party from whom the 3 
property was seized; 4 
 (D)  The reason for the seizure; 5 
 (E)  The location where the property will be held; 6 
 (F)  The seizing law enforcement officer's name; and 7 
 (G)  A signed statement by the seizing law enforcement 8 
officer stating that the confiscation report is true and complete. 9 
 (4)  Within three (3) business days after receiving the 10 
confiscation report, the seizing law enforcement agency shall forward a copy 11 
of the confiscation report to the prosecuting attorney for the district where 12 
the property was seized and to the director. 13 
 (5)(A)  Arkansas Legislative Audit shall notify the director and 14 
a circuit court in the county of a law enforcement agency, prosecuting 15 
attorney, or other public entity that the law enforcement agency, prosecuting 16 
attorney, or public entity is ineligible to receive forfeited funds, 17 
forfeited property, or grants from the council, if Arkansas Legislative Audit 18 
determines by its own investigation or upon written notice from the director 19 
that: 20 
 (i)  The law enforcement agency failed to complete 21 
and file the confiscation reports as required by this section; 22 
 (ii) The law enforcement agency, prosecuting 23 
attorney, or public entity has not properly accounted for the seized 24 
property; or 25 
 (iii) The prosecuting attorney has failed to comply 26 
with the notification requirement set forth in subdivision (m)(2) of this 27 
section. 28 
 (B)  After the notice, the circuit court shall not issue an 29 
order distributing seized property to that law enforcement agency, 30 
prosecuting attorney, or public entity, nor shall a grant be awarded by the 31 
council to that law enforcement agency, prosecuting attorney, or public 32 
entity until: 33 
 (i)  The appropriate officials of the law enforcement 34 
agency, prosecuting attorney, or public entity have appeared before the 35 
Legislative Joint Auditing Committee; and 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	51 	04-08-2025 10:08:29 JMB498 
 
 
 (ii) The Legislative Joint Auditing Committee has 1 
adopted a motion authorizing subsequent transfers of forfeited property to 2 
the law enforcement agency, prosecuting attorney, or public entity. 3 
 (C)(i)  If a law enforcement agency, prosecuting attorney, 4 
or other public entity is ineligible to receive forfeited property, the 5 
circuit court shall order money that would have been distributed to that law 6 
enforcement agency, prosecuting attorney, or public entity to be transmitted 7 
to the Treasurer of State for deposit into the Special State Assets 8 
Forfeiture Fund. 9 
 (ii) If the property is not cash, the circuit court 10 
shall order the property converted to cash under this section and the 11 
proceeds transmitted to the Treasurer of State for deposit into the Special 12 
State Assets Forfeiture Fund. 13 
 (D)  Moneys deposited into the Special State Assets 14 
Forfeiture Fund are not subject to recovery or retrieval by an ineligible law 15 
enforcement agency, prosecuting attorney, or other public entity. 16 
 (6)  The director shall establish by rule a standardized 17 
confiscation report form to be used by all law enforcement agencies, with 18 
specific instructions and guidelines concerning the nature and dollar value 19 
of all property, including firearms, to be included in the confiscation 20 
report and forwarded to the office of the local prosecuting attorney and the 21 
director under this subsection. 22 
 (k)(1)(A)  The prosecuting attorney shall initiate forfeiture 23 
proceedings by filing a complaint with the circuit clerk of the county where 24 
the property was seized and by serving the complaint on all known owners and 25 
interest holders of the seized property in accordance with the Arkansas Rules 26 
of Civil Procedure. 27 
 (B)  The complaint may be based on in rem or in personam 28 
jurisdiction but shall not be filed to avoid the distribution requirements 29 
set forth in subdivision (l)(1) of this section. 30 
 (C)  The prosecuting attorney shall mail a copy of the 31 
complaint to the director within five (5) calendar days after filing the 32 
complaint. 33 
 (2)(A)  The complaint shall include a copy of the confiscation 34 
report and shall be filed within sixty (60) days after receiving a copy of 35 
the confiscation report from the seizing law enforcement agency. 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (B)  In a case involving real property, the complaint shall 1 
be filed within sixty (60) days of the defendant's conviction on the charge 2 
giving rise to the forfeiture. 3 
 (3)(A)  The prosecuting attorney may file the complaint after the 4 
expiration of the time only if the complaint is accompanied by a statement of 5 
good cause for the late filing. 6 
 (B)  However, the complaint shall not be filed more than 7 
one hundred twenty (120) days after either the date of the seizure or, in a 8 
case involving real property, the date of the defendant's conviction. 9 
 (C)(i)  If the circuit court determines that good cause has 10 
not been established, the circuit court shall order that the seized property 11 
be returned to the owner or interest holder. 12 
 (ii) In addition, items seized but not subject to 13 
forfeiture under this section or subject to disposition under law or the 14 
Arkansas Rules of Criminal Procedure may be ordered returned to the owner or 15 
interest holder. 16 
 (iii) If the owner or interest holder cannot be 17 
determined, the court may order disposition of the property. 18 
 (4)  Within the time set forth in the Arkansas Rules of Civil 19 
Procedure, the owner or interest holder of the seized property shall file 20 
with the circuit clerk a verified answer to the complaint that shall include: 21 
 (A)  A statement describing the seized property and the 22 
owner's interest or interest holder's interest in the seized property with 23 
supporting documents to establish the owner's interest or interest holder's 24 
interest; 25 
 (B)  A certification by the owner or interest holder 26 
stating that he or she has read the document and that it has not been filed 27 
for an improper purpose; 28 
 (C)  A statement setting forth any defense to forfeiture; 29 
and 30 
 (D)  The address at which the owner or interest holder will 31 
accept mail. 32 
 (5)(A)  If the owner or interest holder fails to file an answer, 33 
the prosecuting attorney may move for default judgment under the Arkansas 34 
Rules of Civil Procedure. 35 
 (B)(i)  If a timely answer has been filed, the prosecuting 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	53 	04-08-2025 10:08:29 JMB498 
 
 
attorney has the burden of proving by a preponderance of the evidence that 1 
the seized property should be forfeited. 2 
 (ii) After the prosecuting attorney has presented 3 
proof, an owner or interest holder of the property seized is allowed to 4 
present evidence showing why the seized property should not be forfeited. 5 
 (iii) If the circuit court determines that grounds 6 
for forfeiting the seized property exist and that a defense to forfeiture has 7 
not been established by the owner or interest holder, the circuit court shall 8 
enter an order under this section. However, if the circuit court determines 9 
either that the prosecuting attorney has failed to establish that grounds for 10 
forfeiting the seized property exist or that the owner or interest holder has 11 
established a defense to forfeiture, the court shall order that the seized 12 
property be immediately returned to the owner or interest holder. 13 
 (l)(1)  If the circuit court having jurisdiction over the seized 14 
property finds upon a hearing by a preponderance of the evidence that grounds 15 
for a forfeiture exist under this subchapter, the circuit court shall enter 16 
an order: 17 
 (A)  To permit the law enforcement agency or prosecuting 18 
attorney to retain the seized property for law enforcement or prosecutorial 19 
purposes, subject to the following provisions: 20 
 (i)(a)  Seized property may not be retained for 21 
official use for more than three (3) years, unless the circuit court finds 22 
that the seized property has been used for law enforcement or prosecutorial 23 
purposes and authorizes continued use for those purposes on an annual basis. 24 
 (b)  At the end of the retention period, the 25 
seized property shall be sold and eighty percent (80%) of the proceeds shall 26 
be deposited into the tobacco control fund of the retaining law enforcement 27 
agency or prosecuting attorney, and twenty percent (20%) of the proceeds 28 
shall be deposited into the State Treasury as special revenues to be credited 29 
to the Special State Assets Forfeiture Fund. 30 
 (c)  The retaining law enforcement agency or 31 
prosecuting attorney may sell the retained seized property during the time 32 
allowed for retention. However, the proceeds of the sale shall be distributed 33 
as set forth in subdivision (l)(1)(A)(i)(b) of this section; 34 
 (ii) If the circuit court determines that retained 35 
seized property has been used for personal use or by non -law enforcement 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	54 	04-08-2025 10:08:29 JMB498 
 
 
personnel for non-law enforcement purposes, the circuit court shall order the 1 
seized property to be sold under § 5 -5-101(e) and (f), and the proceeds shall 2 
be deposited into the State Treasury as special revenues to be credited to 3 
the Special State Assets Forfeiture Fund; 4 
 (iii)(a)  A law enforcement agency may use forfeited 5 
property or money if the circuit court's order specifies that the forfeited 6 
property or money is forfeited to the prosecuting attorney, sheriff, chief of 7 
police, Division of Arkansas State Police, director, or Arkansas Highway 8 
Police Division of the Arkansas Department of Transportation. 9 
 (b)  After the order, the prosecuting attorney, 10 
sheriff, chief of police, Division of Arkansas State Police, director, or 11 
Arkansas Highway Police Division of the Arkansas Department of Transportation 12 
shall maintain an inventory of the forfeited property or money, be 13 
accountable for the forfeited property or money, and be subject to 14 
subdivision (j)(5) of this section with respect to the forfeited property or 15 
money; 16 
 (iv)(a)  An aircraft is forfeited to the office of 17 
the director and may be used only for tobacco, vapor product, alternative 18 
nicotine product, or e -liquid product smuggling interdiction efforts within 19 
the discretion of the director. 20 
 (b)  However, if the director determines that 21 
the aircraft should be sold, the proceeds of the sale shall be distributed as 22 
set forth in subdivision (l)(1)(A)(i)(b) of this section; 23 
 (v)  A firearm not retained for official use shall be 24 
disposed of in accordance with state and federal law; and 25 
 (vi) A tobacco product, vapor product, alternative 26 
nicotine product, or e -liquid product shall be destroyed pursuant to a court 27 
order; 28 
 (B)(i)  To sell seized property that is not required by law 29 
to be destroyed and that is not harmful to the public. 30 
 (ii) Seized property described in subdivision 31 
(l)(1)(B)(i) of this section shall be sold at a public sale by the retaining 32 
law enforcement agency or prosecuting attorney under § 5 -5-101(e) and (f); or 33 
 (C)  To transfer a motor vehicle to a school district for 34 
use in a driver education course. 35 
 (2)  Disposition of forfeited property under this subsection is 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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subject to the need to retain the forfeited property as evidence in any 1 
related proceeding. 2 
 (3)  Within three (3) business days after the entry of the order, 3 
the circuit clerk shall forward to the director copies of the confiscation 4 
report, the circuit court's order, and other documentation detailing the 5 
disposition of the seized property. 6 
 (m)(1)(A)  Subject to subdivision (j)(5) of this section, the proceeds 7 
of sales conducted under this section and moneys forfeited or obtained by 8 
judgment or settlement under this subchapter shall be deposited and 9 
distributed in the manner provided in this subsection. 10 
 (B)  Moneys received from a federal forfeiture for a 11 
violation of this subchapter shall be deposited and distributed under this 12 
section. 13 
 (2)(A)  The proceeds of a sale and moneys forfeited or obtained 14 
by judgment or settlement under this subchapter shall be deposited into the 15 
asset forfeiture fund of the prosecuting attorney and is subject to the 16 
following provisions: 17 
 (i)  If, during a calendar year, the aggregate amount 18 
of moneys deposited into the asset forfeiture fund exceeds twenty thousand 19 
dollars ($20,000) per county, the prosecuting attorney, within fourteen (14) 20 
days after that time, shall notify the circuit judges in the judicial 21 
district and the director; 22 
 (ii) Subsequent to the notification set forth in this 23 
section, twenty percent (20%) of the proceeds of an additional sale and 24 
additional moneys forfeited or obtained by judgment or settlement under this 25 
subchapter in the same calendar year shall be deposited into the State 26 
Treasury as special revenues to be credited to the Special State Assets 27 
Forfeiture Fund, and the remainder shall be deposited into the asset 28 
forfeiture fund of the prosecuting attorney; 29 
 (iii) Failure by the prosecuting attorney to comply 30 
with the notification requirement set forth in this section renders the 31 
prosecuting attorney and an entity eligible to receive forfeited moneys or 32 
property from the prosecuting attorney ineligible to receive forfeited moneys 33 
or property, except as provided in this section; and 34 
 (iv) Twenty percent (20%) of moneys in excess of 35 
twenty thousand dollars ($20,000) that have been retained but not reported as 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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required by this section are subject to recovery for deposit into the Special 1 
State Assets Forfeiture Fund. 2 
 (B)  The prosecuting attorney shall administer expenditures 3 
from the asset forfeiture fund, which is subject to audit by Arkansas 4 
Legislative Audit. Moneys distributed from the asset forfeiture fund shall be 5 
used only for law enforcement and prosecutorial purposes. Moneys in the asset 6 
forfeiture fund shall be distributed in the following order: 7 
 (i)  For the satisfaction of a bona fide security 8 
interest or lien; 9 
 (ii) For payment of a proper expense of the 10 
proceeding for forfeiture and sale, including expenses of seizure, 11 
maintenance of custody, advertising, and court costs; 12 
 (iii) Any balance under three hundred fifty thousand 13 
dollars ($350,000) shall be distributed proportionally so as to reflect 14 
generally the contribution of the appropriate local or state law enforcement 15 
or prosecutorial agency's participation in any activity that led to the 16 
seizure or forfeiture of the property or deposit of moneys under this 17 
subchapter; and 18 
 (iv) Any balance over three hundred fifty thousand 19 
dollars ($350,000) shall be forwarded to the director to be transferred to 20 
the State Treasury for deposit into the Special State Assets Forfeiture Fund 21 
for distribution under this section. 22 
 (C)(i)  For a forfeiture in an amount greater than three 23 
hundred fifty thousand dollars ($350,000) from which expenses are paid for a 24 
proceeding for forfeiture and sale under this section, an itemized accounting 25 
of the expenses shall be delivered to the director within ten (10) calendar 26 
days after the distribution of the funds. 27 
 (ii) The itemized accounting shall include the 28 
expenses paid, to whom paid, and for what purposes the expenses were 	paid. 29 
 (3)(A)  Moneys received by a prosecuting attorney or law 30 
enforcement agency from a federal forfeiture for a violation of this 31 
subchapter shall be deposited and maintained in a separate account. 32 
 (B)  However, a balance over three hundred fifty thousand 33 
dollars ($350,000) shall be distributed as required under this section. 34 
 (4)  Other moneys shall not be maintained in the account except 35 
for interest income generated by the account. 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (5)  Moneys in the account shall only be used for law enforcement 1 
and prosecutorial purposes consistent with governing federal law. 2 
 (6)  The account is subject to audit by Arkansas Legislative 3 
Audit. 4 
 (7)  A balance over three hundred fifty thousand dollars 5 
($350,000) shall be transferred to the State Treasury for deposit into the 6 
Special State Assets Forfeiture Fund in which it shall be maintained 7 
separately and distributed consistently with governing federal law and upon 8 
the advice of the director. 9 
 (n)  In personam jurisdiction may be based on a person's presence in 10 
the state or on his or her conduct in the state, as set out in § 16 -4-101(C), 11 
and is subject to the following additional provisions: 12 
 (1)  A temporary restraining order under this section may be 13 
entered ex parte on application of the state upon a showing that: 14 
 (A)  There is probable cause to believe that the property 15 
with respect to which the order is sought is subject to forfeiture under this 16 
section; and 17 
 (B)  Notice of the action would jeopardize the availability 18 
of the property for forfeiture; 19 
 (2)(A)  Notice of the entry of a temporary restraining order and 20 
an opportunity for hearing shall be afforded to a person known to have an 21 
interest in the property. 22 
 (B)  The hearing shall be held at the earliest possible 23 
date consistent with Rule 65 of the Arkansas Rules of Civil Procedure and is 24 
limited to the issues of whether: 25 
 (i)  There is a probability that the state will 26 
prevail on the issue of forfeiture and that failure to enter the temporary 27 
restraining order will result in the property's being destroyed, conveyed, 28 
alienated, encumbered, disposed of, received, removed from the jurisdiction 29 
of the circuit court, concealed, or otherwise made unavailable for 30 
forfeiture; and 31 
 (ii) The need to preserve the availability of 32 
property through the entry of the requested temporary restraining order 33 
outweighs the hardship on an owner or interest holder against whom the 34 
temporary restraining order is to be entered; 35 
 (3)  The state has the burden of proof by a preponderance of the 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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evidence to show that the defendant's property is subject to forfeiture; 1 
 (4)(A)  On a determination of liability of a person for conduct 2 
giving rise to forfeiture under this section, the circuit court shall enter a 3 
judgment of forfeiture of the property subject to forfeiture as alleged in 4 
the complaint and may authorize the prosecuting attorney or a law enforcement 5 
officer to seize property subject to forfeiture under this section not 6 
previously seized or not then under seizure. 7 
 (B)  The order of forfeiture shall be consistent with 8 
subsection (l) of this section. 9 
 (C)  In connection with the judgment, on application of the 10 
state, the circuit court may enter an appropriate order to protect the 11 
interest of the state in property ordered forfeited; and 12 
 (5)  Subsequent to the finding of liability and order of 13 
forfeiture, the following procedures apply: 14 
 (A)  The attorney for the state shall give notice of 15 
pending forfeiture in the manner provided in Rule 4 of the Arkansas Rules of 16 
Civil Procedure to an owner or interest holder who has not previously been 17 
given notice; 18 
 (B)  An owner of or interest holder in property that has 19 
been ordered forfeited and whose claim is not precluded may file a claim 20 
within thirty (30) days after initial notice of pending forfeiture or after 21 
notice under Rule 4 of the Arkansas Rules of Civil Procedure, whichever is 22 
earlier; and 23 
 (C)  The circuit court may amend the in personam order of 24 
forfeiture if the circuit court determines that a claimant has established 25 
that he or she has an interest in the property and that the interest is 26 
exempt under this section. 27 
 (o)  The circuit court shall order the forfeiture of other property of 28 
a claimant or defendant up to the value of the claimant's or defendant's 29 
property found by the circuit court to be subject to forfeiture under this 30 
section if any of the forfeitable property had remained under the control or 31 
custody of the claimant or defendant and: 32 
 (1)  Cannot be located; 33 
 (2)  Was transferred or conveyed to, sold to, or deposited with a 34 
third party; 35 
 (3)  Is beyond the jurisdiction of the circuit court; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (4)  Was substantially diminished in value while not in the 1 
actual physical custody of the seizing law enforcement agency; 2 
 (5)  Was commingled with other property that cannot be divided 3 
without difficulty; or 4 
 (6)  Is subject to interest exempted from forfeiture under this 5 
subchapter. 6 
 (p)(1)  There is created on the books of law enforcement agencies and 7 
prosecuting attorneys a tobacco control fund. 8 
 (2)  The fund shall consist of moneys obtained under this section 9 
and other revenue as may be provided by law or ordinance. 10 
 (3)  Moneys in the tobacco control fund shall be appropriated on 11 
a continuing basis and are not subject to the Revenue Stabilization Law, § 12 
19-5-101 et seq. 13 
 (4)(A)  The fund shall be used for law enforcement and 14 
prosecutorial purposes. 15 
 (B)  Each prosecuting attorney shall submit to the Director 16 
of Arkansas Tobacco Control on or before June 30 of each year a report 17 
detailing moneys received and expenditures made from the tobacco control fund 18 
during the preceding twelve -month period. 19 
 (5)  The law enforcement agencies and prosecuting attorneys shall 20 
submit to the director on or before June 30 of each year a report detailing 21 
any moneys received and expenditures made from the tobacco control fund 22 
during the preceding twelve -month period. 23 
 (6)  Moneys from the tobacco control fund may not supplant other 24 
local, state, or federal funds. 25 
 (7)  The tobacco control fund is subject to audit by Arkansas 26 
Legislative Audit. 27 
 28 
 SECTION 14.  Arkansas Code § 26 -57-249(b), effective until the 29 
contingency in Acts 2023, No. 629, § 17, is met, concerning the procedure for 30 
destruction of products upon conviction, is amended to read as follows: 31 
 (b)  Upon an administrative finding of guilty of any person charged 32 
with a violation of a state tobacco product, vapor product, alternative 33 
nicotine product, or e-liquid product, or consumable hemp product law or rule 34 
in a proceeding before the Arkansas Tobacco Control Board where the 35 
investigation resulted in the seizure of tobacco products, vapor products, 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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alternative nicotine products, or e-liquid products, or consumable hemp 1 
products, the board shall issue an order to destroy the tobacco products, 2 
vapor products, alternative nicotine products, or e-liquid products, or 3 
consumable hemp products confiscated by Arkansas Tobacco Control or by any 4 
state, county, or municipal officer in this state. 5 
 6 
 SECTION 15.  Arkansas Code § 26 -57-249, effective if the contingency in 7 
Acts 2023, No. 629, § 17, is met, is repealed. 8 
 26-57-249.  Destruction of products upon conviction — Procedure. 9 
 (a)  Upon a criminal conviction of a person charged with a violation of 10 
a tobacco product, vapor product, alternative nicotine product, or e	-liquid 11 
product law or rule where the investigation resulted in the seizure of 12 
tobacco products, vapor products, alternative nicotine products, or e	-liquid 13 
products, the court shall issue an order to destroy the tobacco products, 14 
vapor products, alternative nicotine products, or e -liquid products 15 
confiscated by Arkansas Tobacco Control or by any state, county, or municipal 16 
officer in this state. 17 
 (b)  Upon an administrative finding of guilty of any person charged 18 
with a violation of a state tobacco product, vapor product, alternative 19 
nicotine product, e-liquid product, or hemp -derived product law or rule in a 20 
proceeding before the Arkansas Tobacco Control Board where the investigation 21 
resulted in the seizure of tobacco products, vapor products, alternative 22 
nicotine products, e -liquid products, or hemp -derived products, the board 23 
shall issue an order to destroy the tobacco products, vapor products, 24 
alternative nicotine products, e -liquid products, or hemp -derived products 25 
confiscated by Arkansas Tobacco Control or by any state, county, or municipal 26 
officer in this state. 27 
 (c)  Every court of record in this state shall notify the Director of 28 
Arkansas Tobacco Control of the disposition made of each case in the court as 29 
to whether the defendant was convicted or acquitted. 30 
 (d)  Upon application of the director, the board or the court issuing a 31 
destruction order may instead release the tobacco products, vapor products, 32 
alternative nicotine products, or e -liquid products to the use and benefit of 33 
Arkansas Tobacco Control for suitable law enforcement or training purposes. 34 
 (e)(1)  If a court or the board issues a destruction order, the person 35 
charged with the violation is responsible for any destruction fees incurred 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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by Arkansas Tobacco Control. 1 
 (2)  Destruction fees may vary but shall be determined by the 2 
current industry standard for the destruction of tobacco products, vapor 3 
products, alternative nicotine products, and e -liquid products. 4 
 5 
 SECTION 16.  Arkansas Code § 26 -57-255(g)(3), effective until the 6 
contingency in Acts 2023, No. 629, § 17, is met, concerning the powers and 7 
duties of the Arkansas Tobacco Control Board, is amended to read as follows: 8 
 (3)(A)  Conduct public hearings when appropriate regarding a 9 
permit authorized under this subchapter or in violation of this subchapter, 10 
the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-501 11 
et seq., or any other federal, state, or local statute, ordinance, rule, or 12 
regulation concerning the sale of tobacco products, vapor products, 13 
alternative nicotine products, or e-liquid products, or consumable hemp 14 
products to minors, or the rules promulgated by Arkansas Tobacco Control. 15 
 (B)  After notice and hearing held in accordance with the 16 
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 17 
finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4	-75-18 
701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 19 
Tobacco Control, the board may suspend or revoke any or all permits issued by 20 
the director to any person. 21 
 (C)  The board may levy a civil penalty in an amount not to 22 
exceed five thousand dollars ($5,000) for each violation against a person 23 
found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 24 
§ 4-75-701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 25 
Tobacco Control. 26 
 (D)  Each day of a violation is a separate violation. 27 
 (E)  A civil penalty under subdivision (g)(3)(C) of this 28 
section is in addition to any penalties levied by the board under § 26	-57-29 
248. 30 
 (F)  In conducting a hearing under this subdivision (g)(3), 31 
the board may examine or cause to be examined under oath any witness and the 32 
books and records of a permitted person or other person; 33 
 34 
 SECTION 17.  Arkansas Code § 26 -57-255, effective if the contingency in 35 
Acts 2023, No. 629, § 17, is met, is repealed. 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 26-57-255.  Arkansas Tobacco Control Board — Creation — Definition.1 
 (a)  There is created the Arkansas Tobacco Control Board to consist of 2 
the following eight (8) members appointed by the Governor: 3 
 (1)  Two (2) members of the board shall be wholesalers of tobacco 4 
products, vapor products, alternative nicotine products, or e -liquid 5 
products; 6 
 (2)  Two (2) members of the board shall be retailers of tobacco 7 
products, vapor products, alternative nicotine products, or e -liquid 8 
products; and 9 
 (3)  Four (4) members of the board shall be members of the public 10 
at large who are not public employees or officials, at least one (1) of whom 11 
shall be an African-American, and two (2) of whom shall be appointed by the 12 
Governor after consulting the Arkansas Medical Society, Inc. and subject to 13 
confirmation by the Senate. 14 
 (b)  The Governor shall designate which member of the board shall act 15 
as chair and that person shall serve as chair for two (2) years unless his or 16 
her membership on the board ceases prior to the end of the two -year period. 17 
 (c)(1)  All members of the board shall be residents of the State of 18 
Arkansas and confirmed by the Senate. 19 
 (2)  The term of office shall be five (5) years. 20 
 (d)(1)  A minimum of five (5) members is required for a quorum. 21 
 (2)(A)  All action by the board shall be by a majority vote of 22 
the board members present at the regular or special meeting, and the board 23 
may take no official action in connection with a matter except at a regular 24 
or special meeting. 25 
 (B)  In the event of a tie vote of the members of the 26 
board, the Director of Arkansas Tobacco Control may cast the deciding vote. 27 
 (e)  A person who is not a citizen of the United States and who has not 28 
resided in the State of Arkansas for at least two (2) consecutive years 29 
immediately preceding the date of appointment shall not be appointed to the 30 
board. 31 
 (f)  Each member of the board and the director shall take and subscribe 32 
to an oath that he or she will support and enforce this subchapter, the 33 
tobacco control laws of this state, the Arkansas Constitution, and the United 34 
States Constitution. 35 
 (g)  The board shall: 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (1)  Act as the adjudicatory body for Arkansas Tobacco Control; 1 
 (2)  Have responsibility for approving the issuance, suspension, 2 
and revocation of the permits enumerated in § 26 -57-219; 3 
 (3)(A)  Conduct public hearings when appropriate regarding a 4 
permit authorized under this subchapter or in violation of this subchapter, 5 
the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-401 6 
et seq., or any other federal, state, or local statute, ordinance, rule, or 7 
regulation concerning the sale of tobacco products, vapor products, 8 
alternative nicotine products, e -liquid products, or hemp -derived products to 9 
minors or the rules promulgated by Arkansas Tobacco Control. 10 
 (B)  After notice and hearing held in accordance with the 11 
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 12 
finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4	-75-13 
701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 14 
Tobacco Control, the board may suspend or revoke any or all permits issued by 15 
the director to any person. 16 
 (C)  The board may levy a civil penalty in an amount not to 17 
exceed five thousand dollars ($5,000) for each violation against a person 18 
found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 19 
§ 4-75-701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 20 
Tobacco Control. 21 
 (D)  Each day of a violation is a separate violation. 22 
 (E)  A civil penalty under subdivision (g)(3)(C) of this 23 
section is in addition to any penalties levied by the board under § 26	-57-24 
248. 25 
 (F)  In conducting a hearing under this subdivision (g)(3), 26 
the board may examine or cause to be examined under oath any witness and the 27 
books and records of a permitted person or other person; 28 
 (4)  When requested by the written petition of at least three (3) 29 
interested parties, conduct public hearings to receive testimony regarding 30 
the facts relevant to the issuance of a permit under this subchapter; and 31 
 (5)(A)  Not have authority in criminal prosecutions or the 32 
assessment or collection of any taxes. 33 
 (B)  However, the board shall refuse to approve the 34 
issuance or renewal of a permit issued by the director for the failure to pay 35 
taxes or fees imposed on tobacco products or any permit fees imposed under 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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this subchapter or any other state or local taxes. 1 
 (h)(1)  The board may assess penalties for a violation of § 5 -27-227 2 
according to the following schedule: 3 
 (A)  For a first violation within a forty -eight-month 4 
period, a civil penalty not to exceed two hundred fifty dollars ($250); 5 
 (B)  For a second violation within a forty -eight-month 6 
period, a civil penalty not to exceed five hundred dollars ($500) and 7 
suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 8 
two (2) days; 9 
 (C)  For a third violation within a forty -eight-month 10 
period, a civil penalty not to exceed one thousand dollars ($1,000) and 11 
suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 12 
seven (7) days; 13 
 (D)  For a fourth or subsequent violation within a forty -14 
eight-month period, a civil penalty not to exceed two thousand dollars 15 
($2,000) and suspension of the permit enumerated in § 26 -57-219 for a period 16 
not to exceed fourteen (14) days; and 17 
 (E)  For a fifth or subsequent violation within a forty -18 
eight-month period, in addition to the other penalties provided under this 19 
subsection, the permit enumerated in § 26 -57-219 may be revoked. 20 
 (2)(A)  A penalty under this subsection shall not be imposed on a 21 
retailer or an agent or employee of a retailer who can establish an 22 
affirmative defense that before the date of the violation the retailer or 23 
agent or employee of the retailer furnishing the tobacco products, vapor 24 
products, alternative nicotine products, e -liquid products, or cigarette 25 
papers reasonably relied on proof of age that identified the person receiving 26 
the tobacco products, vapor products, alternative nicotine products, e	-liquid 27 
products, or cigarette papers as not being a minor. 28 
 (B)  As used in this subsection, “proof of age” means valid 29 
documentation issued by a governmental agency containing the person's 30 
photograph, date of birth, and an expiration date. 31 
 (3)(A)  For a corporation or business with more than one (1) 32 
retail location, to determine the number of accumulated violations for 33 
purposes of the penalty schedule stated in this subsection, violations of § 34 
5-27-227 by one (1) retail location shall not be accumulated against other 35 
retail locations of that same corporation or business. 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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 (B)  For a retail location, for purposes of the penalty 1 
schedule stated in this subsection, violations accumulated and assessed 2 
against a prior owner of the retail location shall not be accumulated against 3 
a new owner of the same retail location unless approved by the board. 4 
 5 
 SECTION 18. Arkansas Code § 26-57-256(a)(2) and (3), effective until 6 
the contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 7 
Arkansas Tobacco Control, are amended to read as follows: 8 
 (2)(A)  Receive applications for and issue, refuse, suspend, and 9 
revoke permits listed in § 26 -57-219 and § 20-56-501 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 permit fees imposed under this 16 
subchapter and § 20-56-501 et seq.;, or 17 
 (iii)  Any any other state or local taxes; 18 
 (3)  Prescribe forms of applications for permits under this 19 
subchapter and § 20-56-501 et seq.; 20 
 21 
 SECTION 19.  Arkansas Code § 26 -57-256(b), effective until the 22 
contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 23 
Arkansas Tobacco Control, is amended to read as follows: 24 
 (b)  Any tobacco products, vapor products, alternative nicotine 25 
products, e-liquid products, consumable hemp products, or cigarette papers 26 
found in the possession of a minor may be confiscated and destroyed. 27 
 28 
 SECTION 20.  Arkansas Code § 26 -57-256, effective if the contingency in 29 
Acts 2023, No. 629, § 17, is met, is repealed. 30 
 26-57-256.  Arkansas Tobacco Control — Powers. 31 
 (a)  Arkansas Tobacco Control shall: 32 
 (1)  Promulgate rules for the proper enforcement and 33 
implementation of this subchapter and the Unfair Cigarette Sales Act, § 4	-75-34 
701 et seq.; 35 
 (2)(A)  Receive applications for and issue, refuse, suspend, and 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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revoke permits listed in § 26 -57-219 and § 20-56-401 et seq. 1 
 (B)  Arkansas Tobacco Control shall refuse to issue or 2 
renew any permits issued by the Director of Arkansas Tobacco Control for the 3 
failure to pay: 4 
 (i)  Any applicable taxes or fees imposed on tobacco 5 
products; 6 
 (ii)  Permit fees imposed under this subchapter or on 7 
hemp-derived products under § 20 -56-401 et seq.; or 8 
 (iii)  Other state or local taxes; 9 
 (3)  Prescribe forms of applications for permits under this 10 
subchapter and § 20-56-401 et seq.; 11 
 (4)(A)  Cooperate with the Revenue Division of the Department of 12 
Finance and Administration in the enforcement of the tax laws affecting the 13 
sale of tobacco products in this state and in the enforcement of all other 14 
state and local tax laws. 15 
 (B)  To facilitate efforts to cooperate with the division 16 
concerning the enforcement of all other state and local tax laws, Arkansas 17 
Tobacco Control shall immediately require that the following additional 18 
information be provided by all applicants for permit issuance or renewal: 19 
 (i)  Federal tax identification numbers issued by the 20 
Internal Revenue Service; 21 
 (ii)  Social Security numbers; and 22 
 (iii)  State sales tax account numbers assigned by 23 
the Department of Finance and Administration, if applicable. 24 
 (C)(i)  Each year Arkansas Tobacco Control shall provide a 25 
list of all applicants for the issuance or renewal of all tobacco products, 26 
vapor product, alternative nicotine product, or e -liquid product permits to 27 
the Secretary of the Department of Finance and Administration. 28 
 (ii) This list shall contain the identifying 29 
information required by subdivision (a)(4)(B) of this section as well as the 30 
name of the permittee and the permittee's current business address; 31 
 (5)(A)  Collect civil penalties assessed by the Arkansas Tobacco 32 
Control Board under § 26 -57-255. 33 
 (B)  Unless the civil penalty is paid within fifteen (15) 34 
days following the date for an appeal from the order, the director shall have 35 
the power to institute a civil action in the Pulaski County Circuit Court to 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
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recover the civil penalties assessed; and 1 
 (6)(A)  Provide notice to the retail location of an alleged 2 
violation of § 5-27-227 within ten (10) days of the alleged violation. 3 
 (B)  The notice required under subdivision (a)(6)(A) of 4 
this section shall contain the date and time of the alleged violation. 5 
 (b)  Any tobacco products, vapor products, alternative nicotine 6 
products, e-liquid products, hemp -derived products as defined in § 20 -56-402, 7 
or cigarette papers found in the possession of a minor may be confiscated and 8 
destroyed. 9 
 (c)  Except as otherwise provided by law, the penalties collected under 10 
this section shall be deposited into the State Treasury. 11 
 12 
 SECTION 21.  Uncodified Section 17 of Acts 2023, No. 629, which 13 
reflects changes to the references to "Sections 6 -14", and "Sections 2 -5" in 14 
Acts 2023, No. 629, §§ 16 and 17 made by the Arkansas Code Revision 15 
Commission, is repealed. 16 
 SECTION 17.  Contingent effective date. 17 
 Sections 6-14 [8-16] of this act shall become effective only upon the 18 
certification of the Arkansas Attorney General that the State of Arkansas is 19 
currently enjoined from enforcing Sections 2 -5 [2-7] of this act relating to 20 
delta-8 tetrahydrocannabinol and delta -10 tetrahyrdocannabinol, but no 21 
earlier than August 1, 2023. 22 
 23 
 SECTION 22. DO NOT CODIFY.  SEVERABILITY CLAUSE. If any provision of 24 
this act or the application of this act to any person or circumstance is held 25 
invalid, the invalidity shall not affect other provisions or applications of 26 
this act which can be given effect without the invalid provision or 27 
application, and to this end, the provisions of this act are declared 28 
severable. 29 
 30 
 SECTION 23.  CONTINGENT EFFECTIVE DATE. 31 
 (a)  This act shall be effective on and after the certification of the 32 
Attorney General that: 33 
 (1)  A final judgement in the case of Bio Gen LLC, et al v. 34 
Sanders, et al, 4:23 -cv-00718-BRW, and any subsequent appeals upholds the 35 
legality of Acts 2023, No. 629; 36  As Engrossed:  S4/2/25 H4/8/25 	SB533 
 
 	68 	04-08-2025 10:08:29 JMB498 
 
 
 (2)  The United States Congress explicitly delegates the 1 
authority to the states to more stringently regulate or ban hemp -derived 2 
products; 3 
 (3)  The United States Congress amends the Agricultural Marketing 4 
Act of 1946 to exclude from the definition of hemp any intoxicating 5 
cannabinoids or otherwise disallows intoxicating hemp -derived products; or 6 
 (4)  The United States Congress amends the Agriculture 7 
Improvement Act of 2018 or passes a new Agriculture Improvement Act that 8 
excludes from the definition of hemp any intoxicating cannabinoids or 9 
otherwise disallows intoxicating hemp -derived substances. 10 
 (b)  The Attorney General shall notify the Director of the Bureau of 11 
Legislative Research and the Arkansas Code Revision Commission if he or she 12 
makes a certification under subsection (a) of this section. 13 
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