Arkansas 2025 Regular Session

Arkansas Senate Bill SB533 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 934 of the Regular Session
3		-	JMB498 04-08-2025 10:08:29 JMB498
4		-
5		-	State of Arkansas As Engrossed: S4/2/25 H4/8/25 1
	2	+	JMB498 03/20/2025 11:19:12 AM JMB498
	3	+	State of Arkansas 1
6	4		95th General Assembly A Bill 2
7	5		Regular Session, 2025 SENATE BILL 533 3
8	6		4
9	7		By: Senator Dees 5
10	8		By: Representative Gazaway 6
11	9		7
12	10		For An Act To Be Entitled 8
13	11		AN ACT TO PROVIDE FOR THE REGULATION OF CONSUMABLE 9
14	12		HEMP PRODUCTS BY THE ARKANSAS TOBACCO CONTROL BOARD; 10
15	13		TO AMEND THE ARKANSAS LAW TO ALLOW THE REGULATION AND 11
16	14		PURCHASE OF CONSUMABLE HEMP PRODUCTS; TO ESTABLISH A 12
17		-	DIRECTORY FOR CONSUMABLE HEMP MANUFACTURERS; ~~AND FOR~~ 13
18		-	OTHER PURPOSES. 14
	15	+	DIRECTORY FOR CONSUMABLE HEMP MANUFACTURERS; TO 13
	16	+	DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 14
19	17		15
20	18		16
21	19		Subtitle 17
22	20		TO PROVIDE FOR THE REGULATION OF 18
23	21		CONSUMABLE HEMP PRODUCTS BY THE ARKANSAS 19
24		-	TOBACCO CONTROL BOARD; AND TO AMEND THE 20
25		-	ARKANSAS LAW TO ALLOW REGULATION AND 21
26		-	PURCHASE OF CONSUMABLE HEMP PRODUCTS. 22
	22	+	TOBACCO CONTROL BOARD; TO AMEND THE 20
	23	+	ARKANSAS LAW TO ALLOW THE REGULATION AND 21
	24	+	PURCHASE OF CONSUMABLE HEMP PRODUCT; AND 22
	25	+	TO DECLARE AN EMERGENCY. 23
	26	+	24
	27	+	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25
	28	+	26
	29	+	SECTION 1. Arkansas Code § 2 -15-503(5), concerning the definition of 27
	30	+	"industrial hemp" within the Arkansas Industrial Hemp Production Act, is 28
	31	+	amended to read as follows: 29
	32	+	(5) “Industrial hemp” means the plant Cannabis sativa and any part of 30
	33	+	the plant, including the seeds of the plant and all derivatives, extracts, 31
	34	+	cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 32
	35	+	not, with a total the lesser of a delta-9 tetrahydrocannabinol concentration 33
	36	+	of no more than three -tenths of one percent (0.3%) of the hemp-derived 34
	37	+	cannabadiol on a dry weight basis , unless specifically controlled under the 35
	38	+	Uniform Controlled Substances Act, § 5 -64-101 et seq. for hemp or as 36 SB533
	39	+
	40	+	2 03/20/2025 11:19:12 AM JMB498
	41	+	otherwise defined by 7 U.S.C. § 1639o, as existing on January 1, 2025 ; 1
	42	+	2
	43	+	SECTION 2. Arkansas Code § 5 -64-101(16)(B), concerning the exclusion 3
	44	+	from the definition of "marijuana" within the Uniform Controlled Substances 4
	45	+	Act, is amended to add an additional subdivision to read as follows: 5
	46	+	(vii) Consumable hemp product as defined under § 20 -6
	47	+	56-501 et seq.; 7
	48	+	8
	49	+	SECTION 3. Arkansas Code § 5 -64-215(a)(2), concerning the substances 9
	50	+	in Schedule VI of the Uniform Controlled Substances Act, is amended to read 10
	51	+	as follows: 11
	52	+	(2) Tetrahydrocannabinols, unless the tetrahydrocannabinol is: 12
	53	+	(A) Contained in hemp -derived cannabidiol; 13
	54	+	(B) Not more than the lesser of three-tenths of one 14
	55	+	percent (0.3%) of delta-9 tetrahydrocannabinol in the hemp-derived 15
	56	+	cannabidiol concentration of more than three tenths of one percent (0.3%) on 16
	57	+	a dry weight basis for hemp or as otherwise defined by 7 U.S.C. § 1639o, as 17
	58	+	existing on January 1, 2025, as verified by a nationally accredited 18
	59	+	laboratory for quality, purity, and accuracy standards; and 19
	60	+	(C) Not approved by the United States Food and Drug 20
	61	+	Administration for marketing as a medication; 21
	62	+	22
	63	+	SECTION 4. Arkansas Code § 5 -64-215(a)(5)(A)(i), concerning the 23
	64	+	substances in Schedule VI of the Uniform Controlled Substances Act, is 24
	65	+	amended to add an additional subdivision to read as follows: 25
	66	+	(k) An intoxicating hemp product as defined 26
	67	+	under § 20-56-501 et seq.; 27
	68	+	28
	69	+	SECTION 5. Arkansas Code § 5 -64-215(d), concerning the substances in 29
	70	+	Schedule VI of the Uniform Controlled Substances Act, is amended to read as 30
	71	+	follows: 31
	72	+	(d) This section does not prohibit the continuous interstate 32
	73	+	transportation or shipment through Arkansas of the plant Cannabis sativa L., 33
	74	+	and any part of that plant, including the seeds thereof and all derivatives, 34
	75	+	extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether 35
	76	+	growing or not, with the lesser of a delta-9 tetrahydrocannabinol 36 SB533
	77	+
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	79	+	concentration of not more than three -tenths of one percent (0.3%) on a dry 1
	80	+	weight basis, produced in accordance with or as otherwise defined in 7 U.S.C. 2
	81	+	§ 1639o et seq., as existing on January 1, 2025. 3
	82	+	4
	83	+	SECTION 6. Arkansas Code § 19 -6-301(254), concerning the enumerated 5
	84	+	special revenues in this state, is amended to read as follows: 6
	85	+	(254) All permit and license fees received by Arkansas Tobacco 7
	86	+	Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 8
	87	+	seq., and § 20-56-501 et seq.; 9
	88	+	10
	89	+	SECTION 7. Arkansas Code § 19 -6-831, effective until the contingency 11
	90	+	in Acts 2023, No. 629, § 17, is met, is amended to read as follows: 12
	91	+	19-6-831. Arkansas Tobacco Control Revenue Fund. 13
	92	+	(a) There is created on the books of the Treasurer of State, the 14
	93	+	Auditor of the State, and the Chief Fiscal Officer of the State a special 15
	94	+	revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 16
	95	+	(b)(1) All permit and license fees received by Arkansas Tobacco 17
	96	+	Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 18
	97	+	seq., and § 20-56-501 et seq. shall be deposited into the State Treasury as 19
	98	+	special revenues to the credit of the fund. 20
	99	+	(2) The fund also shall consist of any other revenues authorized 21
	100	+	by law. 22
	101	+	(c)(1) The fund shall be used for expenses incurred by Arkansas 23
	102	+	Tobacco Control in the organization, maintenance, operation, and merchant 24
	103	+	education and training with regard to enforcement of § 5 -27-227, the Arkansas 25
	104	+	Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-501 et seq., 26
	105	+	and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 27
	106	+	(2) Expenditures of moneys in the fund are subject to the 28
	107	+	General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 29
	108	+	Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 30
	109	+	laws. 31
	110	+	(3) The receipts and disbursements of Arkansas Tobacco Control 32
	111	+	shall be audited annually by Arkansas Legislative Audit. 33
	112	+	34
	113	+	SECTION 8. Arkansas Code § 19 -6-831, effective if the contingency in 35
	114	+	Acts 2023, No. 629, § 17, is met, is repealed. 36 SB533
	115	+
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	117	+	19-6-831. Arkansas Tobacco Control Revenue Fund. 1
	118	+	(a) There is created on the books of the Treasurer of State, the 2
	119	+	Auditor of the State, and the Chief Fiscal Officer of the State a special 3
	120	+	revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 4
	121	+	(b)(1) All permit and license fees received by Arkansas Tobacco 5
	122	+	Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 6
	123	+	seq., and § 20-56-401 et seq., shall be deposited into the State Treasury as 7
	124	+	special revenues to the credit of the fund. 8
	125	+	(2) The fund also shall consist of any other revenues authorized 9
	126	+	by law. 10
	127	+	(c)(1) The fund shall be used for expenses incurred by Arkansas 11
	128	+	Tobacco Control in the organization, maintenance, operation, and merchant 12
	129	+	education and training with regard to enforcement of § 5 -27-227, the Arkansas 13
	130	+	Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-401 et seq., 14
	131	+	and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 15
	132	+	(2) Expenditures of moneys in the fund are subject to the 16
	133	+	General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 17
	134	+	Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 18
	135	+	laws. 19
	136	+	(3) The receipts and disbursements of Arkansas Tobacco Control 20
	137	+	shall be audited annually by Arkansas Legislative Audit. 21
	138	+	22
	139	+	SECTION 9. Arkansas Code Title 20, Chapter 56, is amended to add an 23
	140	+	additional subchapter to read as follows: 24
	141	+	Subchapter 5 — Consumable Hemp Products 25
	142	+	26
	143	+	20-56-501. Legislative intent. 27
	144	+	It is the intent of the General Assembly that this subchapter shall: 28
	145	+	(1) Regulate the manufacture, production, distribution, and sale 29
	146	+	of consumable hemp products; 30
	147	+	(2) Prevent the manufacturing, production, distribution, 31
	148	+	marketing, sale, and use of intoxicating hemp products within Arkansas; and 32
	149	+	(3) Protect and promote the public health and welfare of the 33
	150	+	residents of this state. 34
	151	+	35
	152	+	20-56-502. Definitions. 36 SB533
	153	+
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	155	+	As used in this subchapter: 1
	156	+	(1) “Annual” or “annually” means the fiscal year from July 1 2
	157	+	through the next June 30; 3
	158	+	(2) “Approved laboratory” means a laboratory that is accredited 4
	159	+	by the National Institute on Drug Abuse, the National Environmental 5
	160	+	Laboratory Accreditation Conference, the International Organization for 6
	161	+	Standardization, or similar accrediting entity as determined by Arkansas 7
	162	+	Tobacco Control and that has been approved by the Director of Arkansas 8
	163	+	Tobacco Control specifically for the testing of consumable hemp product; 9
	164	+	(3)(A) “Cannabis” means all parts of the plant of the genus 10
	165	+	cannabis, the flower, the seeds thereof, the resin extracted from any part of 11
	166	+	the plant and every compound, manufacture, salt, derivative, mixture or 12
	167	+	preparation of the plant, and its seeds or its resin, including whole plant 13
	168	+	extracts. 14
	169	+	(B) "Cannabis" does not include cannabis -derived drug 15
	170	+	products approved by the United States Food and Drug Administration under 16
	171	+	Section 505 of the Federal Food, Drug, and Cosmetic Act, as existing on 17
	172	+	January 1, 2025; 18
	173	+	(4) “Consumable hemp product” means a finished product that 19
	174	+	includes part of the hemp plant, including naturally derived cannabinoids, 20
	175	+	compounds, concentrates, extracts, isolates, or derivatives that is intended 21
	176	+	for human consumption and not marketed for intoxicating effect and is: 22
	177	+	(A) A cosmetic as defined by 21 U.S.C. § 321, as existing 23
	178	+	on January 1, 2025, that meets the federally defined tetrahydrocannabinol 24
	179	+	level; 25
	180	+	(B) Any product generally recognized as safe by the United 26
	181	+	States Food and Drug Administration under the Federal Food, Drug, and 27
	182	+	Cosmetic Act, 21 U.S.C. § 301 et seq., and the intended mode of consumption 28
	183	+	comports with generally recognized as safe recognition; or 29
	184	+	(C) A product that has no more than one milligram (1 mg) 30
	185	+	of total tetrahydrocannabinol per container and minimum ratio of cannabidiol 31
	186	+	to tetrahydrocannabinol of greater than fifteen to one (15:1) and is: 32
	187	+	(i) A full spectrum hemp extract or cannabinoid hemp 33
	188	+	product containing multiple hemp -derived cannabinoids, terpenes, and other 34
	189	+	naturally occurring compounds, processed without the intentional complete 35
	190	+	removal of any compound and without the addition of isolated cannabinoids; or 36 SB533
	191	+
	192	+	6 03/20/2025 11:19:12 AM JMB498
	193	+	(ii) A product primarily containing and marketed as 1
	194	+	cannabidiol, cannabichromene, cannabinol, cannabigerol, cannabicycol, 2
	195	+	cannabidivarin, cannabielsoin, cannabicitran, cannabicycol, cannabielsoin, or 3
	196	+	tetrahydrocannabivarin; 4
	197	+	(5) “Consumable hemp distributor” means a person that receives 5
	198	+	raw hemp, hemp floral material, extracts, distillates, isolates, or any 6
	199	+	extracted form of hemp as long as the extracted form of hemp is extracted 7
	200	+	from hemp for the manufacturing, distribution, or processing of any 8
	201	+	consumable hemp product including without limitation edibles, tinctures, 9
	202	+	smokables, vaporization devices, lubricants, salves, lotions, hemp floral 10
	203	+	material, concentrates, distillates, or liquids; 11
	204	+	(6)(A) “Consumable hemp manufacturer” means a person that 12
	205	+	manufacturers, fabricates, assembles, or processes a hemp -derived product, 13
	206	+	including without limitation federally licensed importers and federally 14
	207	+	licensed distributors that deal in consumable hemp products. 15
	208	+	(B) “Consumable hemp manufacturer” includes: 16
	209	+	(i) A sales entity affiliate of the manufacturer or 17
	210	+	any other entity representing the manufacturer with regard to the sale of 18
	211	+	consumable hemp products produced by the manufacturer or wholesalers or 19
	212	+	permitted retailers; and 20
	213	+	(ii) A person that mixes, compounds, extracts, 21
	214	+	infuses, blends, processes, repackages, or resizes consumable hemp products 22
	215	+	including the extraction of cannabinoids from hemp biomass. 23
	216	+	(C) “Consumable hemp manufacturer” does not include a 24
	217	+	person who engages in the agricultural production of hemp, such as growing, 25
	218	+	planting, and harvesting of raw hemp biomass regulated by the State Plant 26
	219	+	Board; 27
	220	+	(7) “Consumable hemp retailer” means a dealer licensed by the 28
	221	+	Arkansas Tobacco Control Board, other than a consumable hemp wholesaler, 29
	222	+	whose principal place of business is that of selling merchandise at retail, 30
	223	+	including online sales, and who sells consumable hemp products; 31
	224	+	(8) “Consumable hemp wholesaler” means a dealer licensed by the 32
	225	+	Arkansas Tobacco Control Board whose principal place of business is that of a 33
	226	+	wholesaler dealer, and who is known to the trade as such, that sells any 34
	227	+	consumable hemp products to licensed consumable hemp retailers only for the 35
	228	+	purpose of resale to consumers; 36 SB533
	229	+
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	231	+	(9) “Consumer” means a member of the public at large; 1
	232	+	(10) “Consumption” means any method of ingestion of or 2
	233	+	application to the body, including eating, drinking, inhaling, absorbing, or 3
	234	+	injecting, through which a product is metabolized or is otherwise subject to 4
	235	+	a biotransformative process when introduced into the human body; 5
	236	+	(11)(A) “Container” means any final packaged product that is 6
	237	+	offered, intended for sale, or sold to a consumer in the form of an external 7
	238	+	package, can, bottle, bag, or other receptacle that can hold hemp or 8
	239	+	consumable hemp products. 9
	240	+	(B) "Container" does not include: 10
	241	+	(i) Exit packaging, a shipping container, or an 11
	242	+	outer wrapping used solely for the transport of products in bulk quantity; or 12
	243	+	(ii) Any package, can, bottle, bag, or other 13
	244	+	receptacle that may house the products individually inside the external 14
	245	+	container; 15
	246	+	(12) “Days” means calendar days unless otherwise specified; 16
	247	+	(13) “Delta-9 tetrahydrocannabinol” means the sum of the 17
	248	+	percentage by weight of tetrahydrocannabinol acid multiplied by eight hundred 18
	249	+	seventy-seven thousandths (0.877) plus the percentage by weight of delta -9 19
	250	+	tetrahydrocannabinol; 20
	251	+	(14) “Federally defined tetrahydrocannabinol level” means the 21
	252	+	lesser of a delta-9 tetrahydrocannabinol concentration of not more than three 22
	253	+	tenths of one percent (0.3%) on a dry weight basis for hemp or as otherwise 23
	254	+	defined in 7 U.S.C. § 1639o, as existing on January 1, 2025; 24
	255	+	(15) “Finished product” means a product intended for consumer 25
	256	+	use to be sold at retail; 26
	257	+	(16) “Hemp” means the plant Cannabis sativa and any part of the 27
	258	+	plant, including the seeds of the plant, that contains a delta -9 28
	259	+	tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 29
	260	+	less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 30
	261	+	isomers, acids, salts, and salts of isomers, whether growing or not; 31
	262	+	(17)(A) “Intoxicating hemp product” means a finished product 32
	263	+	intended for human consumption that is derived from or contains hemp or hemp 33
	264	+	extract and contains a total tetrahydrocannabinol concentration that exceeds 34
	265	+	zero percent (0%) when tested in its finished form. 35
	266	+	(B) "Intoxicating hemp product" may contain derivatives, 36 SB533
	267	+
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	269	+	extracts, cannabinoids, isomers, acids, salts, and salts of isomers including 1
	270	+	without limitation: 2
	271	+	(i) Delta-10 tetrahydrocannabinol and its isomers; 3
	272	+	(ii) Delta-9 tetrahydrocannabinol and its isomers; 4
	273	+	(iii) Delta-8 tetrahydrocannabinol and its isomers; 5
	274	+	(iv) Delta-7 tetrahydrocannabinol and its isomers; 6
	275	+	(v) Delta-6a, 10a tetrahydrocannabinol and its 7
	276	+	isomers; 8
	277	+	(vi) Exo-tetrahydrocannabinol; 9
	278	+	(vii) Metabolites of tetrahydrocannabinol, including 10
	279	+	11-hydroxy-tetrahydrocannabinol, 3 -27 hydroxy-tetrahydrocannabinol, or 7 -11
	280	+	hydroxy-tetrahydrocannabinol; 12
	281	+	(viii) Tetrahydrocannabinolic acid; 13
	282	+	(ix) Hydrogenated forms of tetrahydrocannabinol, 14
	283	+	including hexahydrocannabinol, hexaydrocannabiphrol, and 15
	284	+	hexahydrocannabihexol; 16
	285	+	(x) Synthetic forms of tetrahydrocannabinol, 17
	286	+	including dronabinol; 18
	287	+	(xi) Ester forms of tetrahydrocannabinol, including 19
	288	+	delta-8 tetrahydrocannabinol, tetrahydrocannabinol -O-acetate, delta-9 20
	289	+	tetrahydrocannabinol -O-acetate, and hexahydrocannabinol -O-6 acetate; 21
	290	+	(xii) Tetrahydrocannabivarins, including delta -8 22
	291	+	tetrahydrocannabivarin but excluding delta -9 tetrahydrocannabivarin; 23
	292	+	(xiii) Analogues or tetrahydrocannabinols with an 24
	293	+	alkyl chain of four (4) or more carbon atoms, including 25
	294	+	tetrahydrocannabiphorols, tetrahydrocannabioctyls, tetrahydocannabihexols, or 26
	295	+	tetrahydrocannabutols; 27
	296	+	(xiv) Any combination of the compounds, including 28
	297	+	hexahydrocannabiphorol -o-ester; and 29
	298	+	(xv) Any other cannabinoid classified as an 30
	299	+	intoxicant by rule of the Arkansas Tobacco Control Board. 31
	300	+	(C) "Intoxicating hemp product" does not include a 32
	301	+	consumable hemp product or medical marijuana regulated under the Arkansas 33
	302	+	Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 34
	303	+	(18) “Minor” means a person who is under twenty -one (21) years 35
	304	+	of age; 36 SB533
	305	+
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	307	+	(19) “Person” means an individual, retailer, wholesaler, 1
	308	+	manufacturer, firm, association, company, partnership, limited liability 2
	309	+	company, corporation, joint -stock company, club, agency, syndicate, county, 3
	310	+	municipal corporation or other political subdivision of the state, receiver, 4
	311	+	trustee, fiduciary, or trade association; 5
	312	+	(20) “Principal place of business” means the physical location: 6
	313	+	(A) Where orders for consumable hemp products are taken or 7
	314	+	received or where consumable hemp products are sold; and 8
	315	+	(B) That is on file with the Arkansas Tobacco Control 9
	316	+	Board; 10
	317	+	(21) “Produce” means to grow industrial hemp for market or for 11
	318	+	cultivation for market; 12
	319	+	(22)(A) “Sale” or “sell” means a transfer, exchange, or barter 13
	320	+	in any manner or by any means for any consideration, including distributing 14
	321	+	or shipping consumable hemp products in connection with a sale. 15
	322	+	(B) A sale “in” or “into” a state refers to the state in 16
	323	+	which the destination point of the consumable hemp product is located in the 17
	324	+	sale without regard to where title was transferred. 18
	325	+	(C) A sale “from” a state refers to the sale of a 19
	326	+	consumable hemp product that is located in that state to the destination in 20
	327	+	question without regard to where title was transferred; 21
	328	+	(23) “Tetrahydrocannabinol” means a compound that is the 22
	329	+	natural, primary active cannabinoid substance or its equivalent contained in 23
	330	+	the plant of the genus Cannabis or in the resinous extracts of the plant, 24
	331	+	including derivatives or isomers derived from such cannabinoids; 25
	332	+	(24) "Total tetrahydrocannabinol" means the total concentration 26
	333	+	of all tetrahydrocannabinols, including delta -8 tetrahydrocannabinol, delta -9 27
	334	+	tetrahydrocannabinol, delta -10 tetrahydrocannabinol, tetrahydrocannabinolic 28
	335	+	acid or its decarboxylated equivalent, and any other chemically similar 29
	336	+	compound, substance, derivative, or isomer of tetrahydrocannabinol, and any 30
	337	+	other cannabinoid identified by the Arkansas Tobacco Control Board; and 31
	338	+	(25) “Warehouse” means a place where consumable hemp products 32
	339	+	are stored for another person and to or from which place the consumable hemp 33
	340	+	products are shipped or delivered upon order by the owner of the consumable 34
	341	+	hemp, to the warehouse. 35
	342	+	36 SB533
	343	+
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	345	+	20-56-503. Construction. 1
	346	+	(a) A consumable hemp product shall not be delivered, sold, bought, or 2
	347	+	used in this state except in conformity with applicable laws and rules, 3
	348	+	including this subchapter and rules promulgated under this subchapter. 4
	349	+	(b) A person shall not manufacture, process, distribute, or sell a 5
	350	+	consumable hemp product without being permitted by the Arkansas Tobacco 6
	351	+	Control Board. 7
	352	+	(c) A product intended for human consumption or inhalation that is 8
	353	+	derived from hemp and contains tetrahydrocannabinol shall not be permitted or 9
	354	+	allowed under the laws of this state, other than consumable hemp products if 10
	355	+	otherwise legal under state law. 11
	356	+	(d)(1) A consumable hemp product shall not be combined with or contain 12
	357	+	any of the following: 13
	358	+	(A) Ethanol; 14
	359	+	(B) Nicotine or tobacco; or 15
	360	+	(C) Any amount of tetrahydrocannabinol as to create a 16
	361	+	danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 17
	362	+	other risk to the public. 18
	363	+	(2) A medical device, prescription drug, or drug otherwise 19
	364	+	approved by the United States Food and Drug Administration is not a 20
	365	+	consumable hemp product. 21
	366	+	(e) The business of handling, receiving, possessing, storing, 22
	367	+	distributing, taking orders for, soliciting orders of, selling, offering for 23
	368	+	sale, and dealing in, through sale, barter, or exchange, consumable hemp 24
	369	+	products is declared to be a privilege under the laws of this state. 25
	370	+	26
	371	+	20-56-504. Permits. 27
	372	+	(a)(1) Each person listed in this section, before commencing business 28
	373	+	or if already in business, before continuing business, shall pay an annual 29
	374	+	privilege fee and secure a permit from the Director of Arkansas Tobacco 30
	375	+	Control. 31
	376	+	(2) A person purchasing an existing permitted retail location 32
	377	+	may, with the permission of the seller and the Arkansas Tobacco Control 33
	378	+	Board, operate under the selling owner’s permit for no more than thirty (30) 34
	379	+	days from the date of the sale. 35
	380	+	(b)(1) In addition to securing a permit under subsection (a) of this 36 SB533
	381	+
	382	+	11 03/20/2025 11:19:12 AM JMB498
	383	+	section, a consumable hemp manufacturer whose products are sold in this state 1
	384	+	shall register with the Secretary of the Department of Finance and 2
	385	+	Administration. 3
	386	+	(2) A consumable hemp wholesaler shall secure the proper 4
	387	+	wholesale permit. 5
	388	+	(3) Every consumable hemp retailer that operates a place of 6
	389	+	business shall secure the proper retail permit. 7
	390	+	(c)(1) Permits shall be issued as follows: 8
	391	+	(A) A permit for a sole proprietorship is issued in the 9
	392	+	owner’s name and in the fictitious business name, if any; 10
	393	+	(B)(i) A permit for a partnership or limited liability 11
	394	+	company is issued in the name of: 12
	395	+	(a) The managing partner or managing member; 13
	396	+	and 14
	397	+	(b) The partnership or limited liability 15
	398	+	company. 16
	399	+	(ii) If the managing partner or managing member of a 17
	400	+	limited liability company is a partnership, limited liability company, or 18
	401	+	corporation, then the permit shall be issued in the name of: 19
	402	+	(a) The president or chief executive officer; 20
	403	+	and 21
	404	+	(b) The partnership or limited liability 22
	405	+	company; and 23
	406	+	(C) A permit for a publicly traded or nonpublicly traded 24
	407	+	corporation shall be issued in the name of the president or chief executive 25
	408	+	officer of the corporation and in the name of the corporation. 26
	409	+	(2) It is a violation for a permitted entity not to provide 27
	410	+	written notification to the director within thirty (30) days of a change in 28
	411	+	the following: 29
	412	+	(A) The managing partner of a partnership, managing member 30
	413	+	of a limited liability company, or president or chief executive officer of a 31
	414	+	corporation, partnership, or limited liability company; or 32
	415	+	(B) The stockholders effecting twenty -five percent (25%) 33
	416	+	or more of the total voting shares of a nonpublicly traded corporation. 34
	417	+	(d)(1) When an entity transfers a business permitted under this 35
	418	+	subchapter, the entity to which the business is transferred: 36 SB533
	419	+
	420	+	12 03/20/2025 11:19:12 AM JMB498
	421	+	(A) Shall apply for a new permit under this subchapter; 1
	422	+	(B) May be issued a new permit under this subchapter; and 2
	423	+	(C) May operate under the selling entity’s permit for no 3
	424	+	more than thirty (30) days from the date of the sale. 4
	425	+	(2) When a partnership or limited liability company permitted 5
	426	+	under this subchapter changes, removes, or replaces the managing partner, 6
	427	+	managing member, president, or chief executive officer: 7
	428	+	(A) The existing permit issued under this subchapter is 8
	429	+	void; and 9
	430	+	(B) The partnership or limited liability company: 10
	431	+	(i) Shall apply for a new permit under this 11
	432	+	subchapter; 12
	433	+	(ii) May be issued a new permit under this 13
	434	+	subchapter; and 14
	435	+	(iii) May operate under the voided permit for no 15
	436	+	more than thirty (30) days from the date of the change, removal, or 16
	437	+	replacement of the managing partner, managing member, president, or chief 17
	438	+	executive officer. 18
	439	+	(3) When a nonpublicly traded corporation permitted under this 19
	440	+	subchapter changes, removes, or replaces the president or chief executive 20
	441	+	officer named on the permit or changes, removes, or replaces a stockholder 21
	442	+	who owns fifty percent (50%) or more of the total voting shares of the 22
	443	+	nonpublicly traded corporation’s stock: 23
	444	+	(A) The permit issued under this subchapter is void; and 24
	445	+	(B) The nonpublicly traded corporation: 25
	446	+	(i) Shall apply for a new permit under this 26
	447	+	subchapter; 27
	448	+	(ii) May be issued a new permit under this 28
	449	+	subchapter; and 29
	450	+	(iii) May operate under the voided permit for no 30
	451	+	more than thirty (30) days from the date of the change, removal, or 31
	452	+	replacement of the president, chief executive officer, or stockholder. 32
	453	+	(4) When a publicly traded corporation permitted under this 33
	454	+	subchapter changes, removes, or replaces the president or chief executive 34
	455	+	officer named on the permit or changes, removes, or replaces a stockholder 35
	456	+	who owns fifty percent (50%) or more of the total voting shares of the 36 SB533
	457	+
	458	+	13 03/20/2025 11:19:12 AM JMB498
	459	+	publicly traded corporation’s stock: 1
	460	+	(A) The permit issued under this subchapter is void; and 2
	461	+	(B) The publicly traded corporation: 3
	462	+	(i) Shall apply for a new permit under this 4
	463	+	subchapter; 5
	464	+	(ii) May be issued a new permit under this 6
	465	+	subchapter; and 7
	466	+	(iii) May operate under the voided permit for no 8
	467	+	more than thirty (30) days from the date of the change, removal, or 9
	468	+	replacement of the president, chief executive officer, or stockholder. 10
	469	+	(e) An entity may apply for and be issued a permit under this 11
	470	+	subchapter in advance of the effective date of the permit to facilitate 12
	471	+	continuity of business operations. 13
	472	+	14
	473	+	20-56-505. Permits — Location — Background check required. 15
	474	+	(a) A consumable hemp retailer permit, consumable hemp wholesaler 16
	475	+	permit, or consumable hemp manufacturer permit shall not be issued to a 17
	476	+	residential address, a mobile structure, vehicle, or for an address not zoned 18
	477	+	appropriately for the business seeking to secure the permit. 19
	478	+	(b) A permit shall not be issued to: 20
	479	+	(1) A person who has pleaded guilty or nolo contendere to or 21
	480	+	been found guilty of a felony; or 22
	481	+	(2) A business owned or operated, in whole or in part, by a 23
	482	+	person who has pleaded guilty or nolo contendere to or been found guilty of a 24
	483	+	felony. 25
	484	+	(c) The Arkansas Tobacco Control Board shall conduct a criminal 26
	485	+	background check on each permit applicant and application, using the Arkansas 27
	486	+	Crime Information Center. 28
	487	+	29
	488	+	20-56-506. Permits — Annual privilege fees. 30
	489	+	(a) The annual privilege fee for each permit authorized by this 31
	490	+	subchapter is established as follows: 32
	491	+	(1) Consumable hemp wholesaler permit $5,000 33
	492	+	(2) Consumable hemp retailer permit $5,000 34
	493	+	(3) Consumable hemp manufacturer permit $5,000 35
	494	+	(b)(1) All permits issued under this subchapter shall expire on June 36 SB533
	495	+
	496	+	14 03/20/2025 11:19:12 AM JMB498
	497	+	30 following the effective date of issuance. 1
	498	+	(2)(A) Upon the failure to timely renew a permit issued under 2
	499	+	this subchapter, a late fee of two (2) times the amount of the appropriate 3
	500	+	permit fee shall be owed in addition to the annual privilege fee for the 4
	501	+	permit. 5
	502	+	(B) An expired permit that is not renewed before September 6
	503	+	1 following the expiration of the permit shall not be renewed, and the holder 7
	504	+	of the expired permit shall submit an application for a new permit. 8
	505	+	(3) A permit shall not be issued to the applicant until the late 9
	506	+	fee and the permit fee have been paid. 10
	507	+	(c) A permit issued under this subchapter shall not be renewed for a 11
	508	+	permit holder who is delinquent more than ninety (90) days on a privilege 12
	509	+	fee, tax relating to the sale or dispensing of a consumable hemp product, or 13
	510	+	any other state and local tax due the Secretary of the Department of Finance 14
	511	+	and Administration. 15
	512	+	(d) A person who is delinquent more than ninety (90) days on a state 16
	513	+	or local tax may not renew or obtain a permit issued under this subchapter 17
	514	+	except upon certification that the permit holder has entered into a repayment 18
	515	+	agreement with the Department of Finance and Administration and is current on 19
	516	+	the payments. 20
	517	+	(e) A permit holder who has unpaid fees, civil penalties, or an 21
	518	+	unserved permit suspension may not transfer, sell, or give consumable hemp 22
	519	+	product inventory of the business associated with the permit to a third party 23
	520	+	until all fees and civil penalties are paid in full and all suspensions are 24
	521	+	completed successfully, nor shall any third party be issued a new permit for 25
	522	+	the business location. 26
	523	+	(f) Each consumable hemp manufacturer, consumable hemp wholesaler, and 27
	524	+	consumable hemp retailer shall retain copies of all invoices for the purchase 28
	525	+	or sale of any consumable hemp product for a period of at least ten (10) 29
	526	+	years subject to examination by the secretary and the Director of Arkansas 30
	527	+	Tobacco Control or their authorized agents upon demand at any time during 31
	528	+	regular business hours. 32
	529	+	(g) A consumable hemp retailer shall: 33
	530	+	(1) Maintain copies of at least the last three hundred sixty -34
	531	+	five (365) days of consumable hemp product invoices, which the retailer shall 35
	532	+	provide immediately upon demand; 36 SB533
	533	+
	534	+	15 03/20/2025 11:19:12 AM JMB498
	535	+	(2)(A) Make the invoices that are older than three hundred 1
	536	+	sixty-five (365) days available upon demand at any time during normal 2
	537	+	business hours in the retail store. 3
	538	+	(B) Except as provided in subdivision (g)(2)(C) of this 4
	539	+	section, an agent of the Arkansas Tobacco Control Board may determine a 5
	540	+	reasonable time frame for which invoices are to be provided under subdivision 6
	541	+	(g)(2)(A) of this section. 7
	542	+	(C) An invoice that is provided seventy -two (72) hours 8
	543	+	more after the demand shall not be considered for purposes of determining 9
	544	+	violation of this subsection; 10
	545	+	(3) Retain invoices for all consumable hemp products in the 11
	546	+	retail store even if the invoice for the consumable hemp product is older 12
	547	+	than three (3) years; 13
	548	+	(4) Maintain a copy of the signed server awareness forms for 14
	549	+	each employee of the retailer who engages in the sale of consumable hemp 15
	550	+	products, which the retailer shall provide immediately upon demand; 16
	551	+	(5)(A) Maintain a copy of any complete transfer forms showing: 17
	552	+	(i) The consumable hemp products that were 18
	553	+	transferred; 19
	554	+	(ii) The permitted location from which the 20
	555	+	consumable hemp products were transferred; and 21
	556	+	(iii) When the transfer occurred. 22
	557	+	(B) A transfer form shall be completed contemporaneously 23
	558	+	with the transfer and shall be provided immediately by the retailer upon 24
	559	+	demand; and 25
	560	+	(6) If any inventory was submitted with a permit application, 26
	561	+	maintain a copy of the submitted inventory form, which the retailer shall 27
	562	+	provide immediately upon demand. 28
	563	+	(h) A consumable hemp wholesaler and consumable hemp manufacturer 29
	564	+	shall: 30
	565	+	(1) Maintain ten (10) years of consumable hemp product invoices 31
	566	+	that are available upon demand during normal business hours in the permitted 32
	567	+	location; and 33
	568	+	(2) Permit the board and authorized personnel of the board to 34
	569	+	enter into and inspect stock of consumable hemp products, and any documents 35
	570	+	and records relating to receipts and disbursements of consumable hemp 36 SB533
	571	+
	572	+	16 03/20/2025 11:19:12 AM JMB498
	573	+	products. 1
	574	+	(i) An invoice from a consumable hemp wholesaler to a consumable hemp 2
	575	+	retailer shall contain the name or other identifying information of the 3
	576	+	consumable hemp wholesaler and the consumable hemp retailer. 4
	577	+	(j)(1) A nonresident consumable hemp wholesaler shall also keep a 5
	578	+	record of all consumable hemp products purchased for distribution within this 6
	579	+	state. 7
	580	+	(2) All books, records, and memoranda pertaining to the purchase 8
	581	+	and sale of the consumable hemp products under subdivision (j)(1) of this 9
	582	+	section shall be subject to inspection by the board. 10
	583	+	(k) Authorized personnel of the board shall not release to the board 11
	584	+	or to the public any information identifying customers of the consumable hemp 12
	585	+	manufacturer, consumable hemp wholesaler, or warehouse except when necessary 13
	586	+	to notify the board of alleged violations of this subchapter. 14
	587	+	15
	588	+	20-56-507. Permits — Not transferable — Duplicates. 16
	589	+	(a) A permit under this subchapter is not transferable to a: 17
	590	+	(1) Subsequent owner or operator; or 18
	591	+	(2) Different physical location unless the permit holder obtains 19
	592	+	permission from the Director of Arkansas Tobacco Control. 20
	593	+	(b) A person purchasing an existing permitted retail location may 21
	594	+	operate under the selling owner’s permit for no more than thirty (30) days 22
	595	+	from the date of the sale. 23
	596	+	(c) When a permit is lost by a permit holder, a duplicate permit may 24
	597	+	be issued upon application and for a fee of five dollars ($5.00) when 25
	598	+	sufficient proof has been given to the director. 26
	599	+	27
	600	+	20-56-508. Permits — Suspension or revocation. 28
	601	+	(a) All permits issued under this subchapter shall be suspended or 29
	602	+	revoked by the Director of Arkansas Tobacco Control for any violation of this 30
	603	+	subchapter or the rules pertaining to this subchapter, subject to a hearing 31
	604	+	before the Arkansas Tobacco Control Board at the next regularly scheduled 32
	605	+	board meeting. 33
	606	+	(b) The director may revoke all permits to deal in consumable hemp 34
	607	+	products associated with any person who is convicted of or pleads guilty or 35
	608	+	nolo contendere to a criminal violation of this subchapter, subject to a 36 SB533
	609	+
	610	+	17 03/20/2025 11:19:12 AM JMB498
	611	+	hearing before the board at the next regularly scheduled board meeting. 1
	612	+	2
	613	+	20-56-509. Advertising prohibitions and packaging requirements. 3
	614	+	(a) A consumable hemp product distributed or offered for sale in this 4
	615	+	state shall include the following information on the product label or product 5
	616	+	packaging: 6
	617	+	(1) The name of the consumable hemp product distributor or 7
	618	+	consumable hemp product manufacturer, whether in -state or out-of-state; 8
	619	+	(2) Product labeling clearly showing that the product contains 9
	620	+	material derived from hemp and not marijuana or medical marijuana; and 10
	621	+	(3) Any other marking, words, statement, or symbol as required 11
	622	+	by the Arkansas Tobacco Control Board through rules. 12
	623	+	(b) A person shall not advertise, market, or offer for sale in this 13
	624	+	state any consumable hemp product by using, in the labeling or design of the 14
	625	+	product, its packaging, or in its advertising or marketing materials, trade 15
	626	+	dress, trademarks, branding, or other related imagery that: 16
	627	+	(1) Imitates or replicates those of food brands or other related 17
	628	+	products that are marketed to or are commonly associated with children or 18
	629	+	minors, including without limitation breakfast cereal, cookies, juice drinks, 19
	630	+	soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 20
	631	+	(2) Depicts or signifies characters or symbols that are known to 21
	632	+	a reasonable person to appeal primarily to or are commonly associated with 22
	633	+	children or minors, including without limitation superheroes, cartoons or 23
	634	+	cartoon characters, including anime characters, comic book characters, video 24
	635	+	game characters, television show characters, movie characters, mythical 25
	636	+	creatures, unicorns, or that otherwise incorporates related imagery or 26
	637	+	scenery; or 27
	638	+	(3) Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 28
	639	+	or “cupcakes” or any variant of these terms, or any other term referencing a 29
	640	+	type or brand of candy, cakes, pastries, or pies, including types or brands 30
	641	+	of candy, cakes, pastries, or pies that do not include the words “candy”, 31
	642	+	“candies”, “cake”, “cakes”, "pastries", “pies”, or “cupcakes” in their names, 32
	643	+	labels, or slogans. 33
	644	+	34
	645	+	20-56-510. Testing. 35
	646	+	(a) All consumable hemp sold in this state shall be tested by an 36 SB533
	647	+
	648	+	18 03/20/2025 11:19:12 AM JMB498
	649	+	approved laboratory. 1
	650	+	(b) An approved laboratory shall be an independent third -party 2
	651	+	laboratory. 3
	652	+	(c) A consumable hemp product sold in this state shall be tested for 4
	653	+	the following and marked as to the consumable hemp product chemical makeup 5
	654	+	before being sold to consumers: 6
	655	+	(1) Cannabinoid profile; 7
	656	+	(2) Solvents; 8
	657	+	(3) Pesticides; 9
	658	+	(4) Microbials; 10
	659	+	(5) Heavy metals; and 11
	660	+	(6) Any non-hemp-based substance. 12
	661	+	(d) A consumable hemp product shall not be distributed or sold in this 13
	662	+	state without a certificate of analysis from an approved laboratory that 14
	663	+	confirms: 15
	664	+	(1) The consumable hemp product was tested by an approved 16
	665	+	laboratory; 17
	666	+	(2) A tested representative sample of the consumable hemp 18
	667	+	product contained a total delta -9 tetrahydrocannabinol concentration that did 19
	668	+	not exceed three-tenths of one percent (0.3%) under this subchapter; and 20
	669	+	(3) A detailed analysis and list of the chemical makeup of the 21
	670	+	tested consumable hemp product under subsection (c) of this section. 22
	671	+	(e) The Arkansas Tobacco Control Board may periodically sample, 23
	672	+	analyze, and test any consumable hemp product located in this state. 24
	673	+	(f) The Director of Arkansas Tobacco Control shall: 25
	674	+	(1) Investigate and issue subpoenas to any permittee or approved 26
	675	+	laboratory used by a permittee that the director has reasonable suspicion of 27
	676	+	intentionally producing falsified test results on consumable hemp; and 28
	677	+	(2) Promulgate rules for the enforcement of this section and set 29
	678	+	penalties for any violation of the rules. 30
	679	+	31
	680	+	20-56-511. Providing minors with consumable hemp products — Purchase, 32
	681	+	use, or possession prohibited. 33
	682	+	(a)(1) It is unlawful for any person to give, barter, or sell to a 34
	683	+	minor a consumable hemp product. 35
	684	+	(2) Except as provided in subdivision (a)(3) of this section, a 36 SB533
	685	+
	686	+	19 03/20/2025 11:19:12 AM JMB498
	687	+	person who pleads guilty or nolo contendere to or is found guilty of 1
	688	+	violating subdivision (a)(1) of this section is guilty of a Class A 2
	689	+	misdemeanor. 3
	690	+	(3) An employee or owner of a retail location permitted under 4
	691	+	this subchapter who violates subdivision (a)(1) of this section while inside 5
	692	+	the retail location upon conviction is subject to a fine not to exceed one 6
	693	+	hundred dollars ($100) per violation. 7
	694	+	(b)(1) It is unlawful for a minor to: 8
	695	+	(A) Use or possess or to purchase or attempt to purchase a 9
	696	+	consumable hemp product; or 10
	697	+	(B) For the purpose of obtaining or attempting to obtain a 11
	698	+	consumable hemp product, falsely represent himself or herself not to be a 12
	699	+	minor by displaying proof of age that is false, fraudulent, or not actually 13
	700	+	proof of the minor’s age. 14
	701	+	(2) Any consumable hemp product found in the possession of a 15
	702	+	minor may be confiscated and destroyed by a law enforcement officer. 16
	703	+	(c)(1) It is not an offense under subsection (b) of this section if: 17
	704	+	(A) The minor was acting at the direction of an authorized 18
	705	+	agent of the Arkansas Tobacco Control Board to enforce or ensure compliance 19
	706	+	with laws relating to the prohibition of the sale of consumable hemp product 20
	707	+	to minors; 21
	708	+	(B) The minor was acting at the direction of an authorized 22
	709	+	agent of the Division of Aging, Adult, and Behavioral Health Services of the 23
	710	+	Department of Human Services to compile statistical data relating to the sale 24
	711	+	of consumable hemp products to minors; 25
	712	+	(C) The minor was acting at the request of a permit holder 26
	713	+	to assist the permit holder by performing a check on the permit holder’s own 27
	714	+	retail business to see if the permit holder’s employees would sell consumable 28
	715	+	hemp products to the minor; or 29
	716	+	(D) The minor was acting as an agent of a retail permit 30
	717	+	holder within the scope of employment. 31
	718	+	(2) A minor performing activities under subdivision (c)(1) of 32
	719	+	this section shall: 33
	720	+	(A) Display the appearance of a minor; 34
	721	+	(B) Have the written consent of the minor’s parent or 35
	722	+	guardian to perform the activity on file with the agency utilizing the minor; 36 SB533
	723	+
	724	+	20 03/20/2025 11:19:12 AM JMB498
	725	+	and 1
	726	+	(C)(i) Present a true and correct identification if asked. 2
	727	+	(ii) Any failure on the part of a minor to provide 3
	728	+	true and correct identification upon request is a defense to any action under 4
	729	+	this section or a civil action under § 26 -57-256. 5
	730	+	(d) Any person who sells consumable hemp products has the right to 6
	731	+	deny the sale of any consumable hemp product to any person. 7
	732	+	(e) It is unlawful for any person who has been issued a permit or a 8
	733	+	license under this subchapter to fail to display in a conspicuous place a 9
	734	+	sign indicating that the sale of consumable hemp products to or purchase or 10
	735	+	possession of consumable hemp products by a minor is prohibited by law. 11
	736	+	(f) It is unlawful for any manufacturer whose consumable hemp product 12
	737	+	is distributed in this state and any person who has been issued a permit or 13
	738	+	license under this subchapter to distribute a free sample of any consumable 14
	739	+	hemp product or any component of a consumable hemp product or coupon that 15
	740	+	entitles the holder of the coupon to any free sample of any consumable hemp 16
	741	+	product or any component of a consumable hemp product: 17
	742	+	(1) In or on any public street or sidewalk within five hundred 18
	743	+	feet (500’) of any playground, public school, or other facility when the 19
	744	+	playground, public school, or other facility is being used primarily by 20
	745	+	minors for recreational, educational, or other purposes; or 21
	746	+	(2) To any minor. 22
	747	+	(g) It is unlawful for any person that has been issued a permit or 23
	748	+	license under this subchapter to: 24
	749	+	(1) Sell or distribute a consumable hemp product through a self -25
	750	+	service display, a vending machine, or an order executed solely over the 26
	751	+	internet or similar means; or 27
	752	+	(2) Advertise or promote consumable hemp in a manner that is 28
	753	+	intended to appeal to minors. 29
	754	+	(h) Any retail permit holder or license holder who violates any 30
	755	+	provision in this section is deemed guilty of a violation and subject to 31
	756	+	penalties under § 26 -57-256. 32
	757	+	(i)(1) A notice of an alleged violation of this section shall be given 33
	758	+	to the holder of a retail permit or license or an agent of the holder within 34
	759	+	ten (10) days of the alleged violation. 35
	760	+	(2) The notice under subdivision (i)(1) of this section shall: 36 SB533
	761	+
	762	+	21 03/20/2025 11:19:12 AM JMB498
	763	+	(A) Contain the date and time of the alleged violation; 1
	764	+	and 2
	765	+	(B)(i) Include either the name of the person making the 3
	766	+	alleged sale or information reasonably necessary to determine the location in 4
	767	+	the store that allegedly made the sale. 5
	768	+	(ii) When appropriate, information under subdivision 6
	769	+	(i)(2)(B)(i) of this section shall include without limitation: 7
	770	+	(a) The cash register number of the sale in 8
	771	+	the store; 9
	772	+	(b) The physical location of the sale in the 10
	773	+	store; and 11
	774	+	(c) If possible, the lane or aisle number of 12
	775	+	the sale in the store. 13
	776	+	(j) Notwithstanding the provisions of subsection (h) of this section, 14
	777	+	the court shall consider the following factors when reviewing a possible 15
	778	+	violation: 16
	779	+	(1) The business has adopted and enforced a written policy 17
	780	+	against selling consumable hemp products to minors; 18
	781	+	(2) The business has informed its employees of the applicable 19
	782	+	laws regarding the sale of consumable hemp product to minors; 20
	783	+	(3) The business has required employees to verify the age of a 21
	784	+	customer attempting to purchase a consumable hemp product by way of 22
	785	+	photographic identification; 23
	786	+	(4) The business has established and imposed disciplinary 24
	787	+	sanctions for noncompliance; and 25
	788	+	(5) The appearance of the purchaser of the consumable hemp 26
	789	+	product was such that an ordinary prudent person would believe him or her to 27
	790	+	be of legal age to make the purchase. 28
	791	+	(k) A person convicted of violating any provision of this section 29
	792	+	whose permit or license to distribute or sell a consumable hemp product is 30
	793	+	suspended or revoked upon conviction shall surrender to the court any permit 31
	794	+	or license to distribute or sell a consumable hemp product, and the court 32
	795	+	shall transmit the permit or license to distribute or sell a consumable hemp 33
	796	+	product to the Director of Arkansas Tobacco Control: 34
	797	+	(1) To suspend or revoke the person’s permit or license to 35
	798	+	distribute or sell a consumable hemp product and to not renew the permit or 36 SB533
	799	+
	800	+	22 03/20/2025 11:19:12 AM JMB498
	801	+	license; and 1
	802	+	(2) Not to issue any new permit or license to that person for 2
	803	+	the period of time determined by the court in accordance with this section. 3
	804	+	4
	805	+	20-56-512. Enforcement — Penalties. 5
	806	+	(a) It is the duty of all state, county, and city officials to assist 6
	807	+	the Arkansas Tobacco Control Board in enforcing this subchapter. 7
	808	+	(b) A person within the jurisdiction of this state who is not 8
	809	+	permitted to sell consumable hemp products to retailers or consumers and who 9
	810	+	sells, takes orders from, delivers, or causes to be delivered immediately or 10
	811	+	in the future any consumable hemp to retailers or consumers in this state 11
	812	+	upon conviction is guilty of a Class A misdemeanor. 12
	813	+	(c) A person engaged in buying or selling consumable hemp products in 13
	814	+	this state without first obtaining the proper permit upon conviction is 14
	815	+	guilty of a Class A misdemeanor. 15
	816	+	(d) This subchapter does not prohibit the interstate transportation or 16
	817	+	shipment through this state of the plant Cannabis sativa L., and any part of 17
	818	+	that plant, including the seeds thereof and all derivatives, extracts, 18
	819	+	cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 19
	820	+	not, with a total delta -9 tetrahydrocannabinol concentration of not more than 20
	821	+	three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 21
	822	+	hemp producer in another state to a licensed hemp handler in another state. 22
27	823		23
28		-	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
	824	+	20-56-513. Prohibitions. 24
	825	+	(a) It shall be unlawful for any person to: 25
	826	+	(1) Violate this subchapter or any rules promulgated under this 26
	827	+	subchapter; 27
	828	+	(2) Manufacture, produce, or market any product derived from 28
	829	+	cannabis for sale within this state, except as authorized under this 29
	830	+	subchapter and the Arkansas Medical Marijuana Amendment of 2016, Arkansas 30
	831	+	Constitution, Amendment 98; 31
	832	+	(3) Sell or distribute any product derived from cannabis within 32
	833	+	this state or to consumers of this state, except as authorized under this 33
	834	+	subchapter and the Arkansas Medical Marijuana Amendment of 2016, Arkansas 34
	835	+	Constitution, Amendment 98; 35
	836	+	(4) Manufacture, distribute, sell, or market a consumable hemp 36 SB533
	837	+
	838	+	23 03/20/2025 11:19:12 AM JMB498
	839	+	product that is not reported to the Arkansas Tobacco Control Board as 1
	840	+	required by this subchapter; 2
	841	+	(5) Manufacture, produce, market, or sell any intoxicating hemp 3
	842	+	product; 4
	843	+	(6) Sell any consumable hemp product to a minor; or 5
	844	+	(7) Market or promote a consumable hemp product or other hemp 6
	845	+	product: 7
	846	+	(A) For an intoxicating effect; 8
	847	+	(B) As containing tetrahydrocannabinol; or 9
	848	+	(C) With unlawful drug or health claims. 10
	849	+	(b) Any person that purposely, knowingly, or recklessly violates this 11
	850	+	subchapter relating to hemp production, manufacture, sale, distribution, 12
	851	+	marketing, or processing shall be guilty of a misdemeanor and, upon 13
	852	+	conviction of the violation, shall be fined in an amount not to exceed five 14
	853	+	thousand dollars ($5,000), or sentenced to imprisonment in the county jail 15
	854	+	for not more than one (1) year, or both. 16
	855	+	(c) Notwithstanding subsection (b) of this section, any person that 17
	856	+	purposefully, recklessly, or knowingly manufactures, markets, or sells an 18
	857	+	intoxicating hemp product shall be guilty of a felony. 19
	858	+	(d) Any violation of this subchapter is a deceptive and unconscionable 20
	859	+	trade practice under the Deceptive Trade Practices Act, § 4 -88-101 et seq., 21
	860	+	and all remedies, penalties, and authority granted to the Attorney General 22
	861	+	under the Deceptive Trade Practices Act, § 4 -88-101 et seq., shall be 23
	862	+	available to the Attorney General for the enforcement of this subchapter. 24
	863	+	(e) The prosecuting attorney in the county where the alleged crime was 25
	864	+	committed shall also have full authority to enforce this subchapter. 26
	865	+	(f) This subchapter does not prohibit the bringing of a civil action 27
	866	+	against a violator of this subchapter by an individual harmed by the 28
	867	+	violator’s acts or omissions. 29
	868	+	30
	869	+	20-56-514. Consumable hemp product directory. 31
	870	+	(a) By December 1, 2025, and annually thereafter, every licensed 32
	871	+	consumable hemp manufacturer of a consumable hemp product that is sold for 33
	872	+	retail sale in this state, whether the consumable hemp product manufacturer 34
	873	+	is located in or outside this state, shall execute and deliver to the 35
	874	+	Arkansas Tobacco Control Board a certification, under penalty of perjury, on 36 SB533
	875	+
	876	+	24 03/20/2025 11:19:12 AM JMB498
	877	+	a form and in a manner prescribed by the board, that the manufacturer is 1
	878	+	compliant with this subchapter. 2
	879	+	(b) The certification form shall separately list each brand name, 3
	880	+	category, product name, and flavor for each consumable hemp product that is 4
	881	+	sold in this state. 5
	882	+	(c)(1) On and after December 1, 2025, the board shall maintain and 6
	883	+	make publicly available on its official website a directory that lists all 7
	884	+	consumable hemp product manufacturers, brand names, categories, product 8
	885	+	names, and flavors for which certification forms have been submitted and 9
	886	+	approved by the board and shall update the directory at least monthly to 10
	887	+	ensure accuracy. 11
	888	+	(2) The board shall establish a process to provide licensed 12
	889	+	consumable hemp retailers, consumable hemp distributors, and consumable hemp 13
	890	+	wholesalers notice of the initial publication of the directory and changes 14
	891	+	made to the directory in the prior month. 15
	892	+	(d) After ninety (90) calendar days following publication of the 16
	893	+	directory, consumable hemp products not listed in the directory and intended 17
	894	+	for retail sale in this state are subject to seizure, forfeiture, and 18
	895	+	destruction, and shall not be purchased or sold for retail sale in this 19
	896	+	state. 20
	897	+	(e) Any person who sells or offers for sale a consumable hemp product 21
	898	+	for retail sale in this state that is not included in the directory shall be 22
	899	+	subject to a civil penalty of up to five hundred dollars ($500) for each 23
	900	+	individual consumable hemp product offered for sale in violation of this 24
	901	+	section until the offending consumable hemp product is removed from the 25
	902	+	market or until the offending consumable hemp product is properly listed on 26
	903	+	the directory. 27
	904	+	(f) The civil penalty collected under this section shall be deposited 28
	905	+	into the State Treasury as special revenues to the credit of the Arkansas 29
	906	+	Tobacco Control Revenue Fund. 30
	907	+	31
	908	+	20-56-515. Notice required at point of sale — Penalties. 32
	909	+	(a) A person shall not sell or offer for sale a consumable hemp 33
	910	+	product in this state unless a clearly visible notice is posted at the 34
	911	+	location where the consumable hemp product is available for purchase. 35
	912	+	(b) The notice described under subsection (a) of this section shall 36 SB533
	913	+
	914	+	25 03/20/2025 11:19:12 AM JMB498
	915	+	state that: 1
	916	+	(1) A consumable hemp product contains tetrahydrocannabinol; 2
	917	+	(2) Women who are pregnant or breastfeeding should not use 3
	918	+	products that contain tetrahydrocannabinol due to the risk of birth defects 4
	919	+	and other developmental defects; and 5
	920	+	(3) A minor shall not purchase a consumable hemp product. 6
	921	+	(c)(1) In addition to the penalties under this subchapter and the 7
	922	+	Arkansas Industrial Hemp Production Act, § 2 -15-501 et seq., any person who 8
	923	+	sells or offers for sale a consumable hemp product without a notice as 9
	924	+	described in this section shall be fined not less than five hundred dollars 10
	925	+	($500) for the first offense and not more than one thousand dollars ($1,000) 11
	926	+	for each subsequent offense. 12
	927	+	(2) Each violation, and every day in which a violation occurs, 13
	928	+	constitutes a separate violation. 14
	929	+	(d) Fines collected under this section shall be deposited into the 15
	930	+	State Treasury as special revenues to the credit of the Arkansas Tobacco 16
	931	+	Control Revenue Fund. 17
	932	+	18
	933	+	20-56-516. Rules. 19
	934	+	The Director of Arkansas Tobacco Control may promulgate rules for the 20
	935	+	proper enforcement of his or her powers and duties under this subchapter, 21
	936	+	including without limitation the regulation of processing, transportation, 22
	937	+	delivery, sale, and purchase of consumable hemp products in accordance with 23
	938	+	this subchapter and the power to levy penalties for violations of this 24
	939	+	subchapter. 25
	940	+	26
	941	+	SECTION 10. Arkansas Code Title 20, Chapter 56, Subchapter 4, as 27
	942	+	amended by Acts 2025, No. 176, § 2, effective if the contingency in Acts 28
	943	+	2023, No. 629, § 17, is met, is repealed. 29
	944	+	Subchapter 4 — Hemp-Derived Products 30
	945	+	31
	946	+	20-56-401. Purpose. 32
	947	+	It is the intent of this subchapter to provide regulation of certain 33
	948	+	hemp-derived products to: 34
	949	+	(1) Prevent the sale and use of illicit hemp -based products 35
	950	+	within Arkansas; and 36 SB533
	951	+
	952	+	26 03/20/2025 11:19:12 AM JMB498
	953	+	(2) Protect and promote the public health and welfare of the 1
	954	+	residents of this state. 2
	955	+	3
	956	+	20-56-402. Definitions. 4
	957	+	As used in this subchapter: 5
	958	+	(1) “Annual” or “annually” means the fiscal year from July 1 6
	959	+	through the next June 30; 7
	960	+	(2) “Approved laboratory” means a laboratory that is accredited 8
	961	+	by the National Institute on Drug Abuse, the National Environmental 9
	962	+	Laboratory Accreditation Conference, the International Organization for 10
	963	+	Standardization, or a similar accrediting entity as determined by Arkansas 11
	964	+	Tobacco Control and that has been approved by the Director of Arkansas 12
	965	+	Tobacco Control specifically for the testing of hemp -derived product; 13
	966	+	(3) “Consumer” means a member of the public at large; 14
	967	+	(4) “Days” means calendar days unless otherwise specified; 15
	968	+	(5) “Finished product” means a product intended for consumer use 16
	969	+	to be sold at retail; 17
	970	+	(6) “Hemp” means the plant Cannabis sativa and any part of the 18
	971	+	plant, including the seeds of the plant, that contains a delta -9 19
	972	+	tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 20
	973	+	less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 21
	974	+	isomers, acids, salts, and salts of isomers, whether growing or not; 22
	975	+	(7) “Hemp-derived e-liquid product” means a liquid hemp -derived 23
	976	+	product that contains hemp that is inhaled when using a vapor product, and 24
	977	+	that may or may not include without limitation propylene glycol, vegetable 25
	978	+	glycerin, and flavorings; 26
	979	+	(8)(A) “Hemp-derived product” means a product intended for any 27
	980	+	form of human consumption, including consumption by vapor inhalation, or a 28
	981	+	component of a product, that is derived from hemp, including all derivatives, 29
	982	+	extracts, cannabinoids, isomers, acids, salts, and salts of isomers, and any 30
	983	+	product made from such derivatives, and that contains greater than three -31
	984	+	tenths of one percent (0.3%) tetrahydrocannabinol. 32
	985	+	(B) “Hemp-derived product” includes a hemp -derived e-33
	986	+	liquid product and a vapor product. 34
	987	+	(C) “Hemp-derived product” does not include: 35
	988	+	(i) A product intended for animal consumption or 36 SB533
	989	+
	990	+	27 03/20/2025 11:19:12 AM JMB498
	991	+	use; 1
	992	+	(ii) A cosmetic as defined by § 20 -56-202; 2
	993	+	(iii) Any marijuana, medical marijuana, or other 3
	994	+	cannabis product containing delta -9 tetrahydrocannabinol greater than three -4
	995	+	tenths of one percent (0.3%) on a dry -weight basis as administered, licensed, 5
	996	+	and otherwise regulated by the Alcoholic Beverage Control Division, the 6
	997	+	Medical Marijuana Commission, and the Department of Health under the Arkansas 7
	998	+	Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 8
	999	+	(iv) A raw hemp product, including any intact plant, 9
	1000	+	flower, buds, leaves, or stems; 10
	1001	+	(v) A drug in the form for which an application 11
	1002	+	filed in accordance with 21 U.S.C. § 355 is approved by the United States 12
	1003	+	Food and Drug Administration; 13
	1004	+	(vi) A dietary supplement as defined by the Federal 14
	1005	+	Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or 15
	1006	+	(vii) A fabric, textile, cordage, fiber, fuel, paper, 16
	1007	+	construction material, plastic, seed, seed meal, and seed oil; 17
	1008	+	(9)(A) “Manufacturer” means a person that manufactures, 18
	1009	+	fabricates, assembles, or processes a hemp -derived product, including without 19
	1010	+	limitation federally licensed importers and federally licensed distributors 20
	1011	+	that deal in hemp-derived products. 21
	1012	+	(B) “Manufacturer” includes: 22
	1013	+	(i) A sales entity affiliate of the manufacturer or 23
	1014	+	any other entity representing the manufacturer with regard to the sale of 24
	1015	+	hemp-derived products produced by the manufacturer to wholesalers or 25
	1016	+	permitted retailers; and 26
	1017	+	(ii) A person that mixes, compounds, extracts, 27
	1018	+	infuses, blends, processes, repackages, or resizes hemp -derived products 28
	1019	+	including the extraction of cannabinoids from hemp biomass. 29
	1020	+	(C) “Manufacturer” does not include a person who engages 30
	1021	+	in the agricultural production of hemp, such as growing, planting, and 31
	1022	+	harvesting of raw hemp biomass regulated by the State Plant Board; 32
	1023	+	(10) “Minor” means a person who is under twenty -one (21) years of 33
	1024	+	age; 34
	1025	+	(11) “Person” means an individual, retailer, wholesaler, 35
	1026	+	manufacturer, firm, association, company, partnership, limited liability 36 SB533
	1027	+
	1028	+	28 03/20/2025 11:19:12 AM JMB498
	1029	+	company, corporation, joint -stock company, club, agency, syndicate, the State 1
	1030	+	of Arkansas, county, municipal corporation or other political subdivision of 2
	1031	+	the state, receiver, trustee, fiduciary, or trade association; 3
	1032	+	(12) “Place of business” means the physical location: 4
	1033	+	(A) Where orders for hemp -derived products are taken or 5
	1034	+	received or where hemp -derived products are sold; and 6
	1035	+	(B) That is on file with Arkansas Tobacco Control; 7
	1036	+	(13) “Retailer” means a person that purchases hemp -derived 8
	1037	+	products from permitted wholesalers for the purpose of selling the hemp -9
	1038	+	derived products in person and over the counter at retail to consumers; 10
	1039	+	(14)(A) “Sale” or “sell” means a transfer, exchange, or 11
	1040	+	barter in any manner or by any means for any consideration, including 12
	1041	+	distributing or shipping hemp -derived product in connection with a sale. 13
	1042	+	(B) A sale “in” or “into” a state refers to the state in 14
	1043	+	which the destination point of the hemp -derived product is located in the 15
	1044	+	sale without regard to where title was transferred. 16
	1045	+	(C) A sale “from” a state refers to the sale of a hemp -17
	1046	+	derived product that is located in that state to the destination in question 18
	1047	+	without regard to where title was transferred; 19
	1048	+	(15) “Self-service display” means a display: 20
	1049	+	(A) That contains a hemp -derived product, or any component 21
	1050	+	of a hemp-derived product; 22
	1051	+	(B) That is located in an area where customers are 23
	1052	+	permitted; and 24
	1053	+	(C) In which the hemp -derived product, or any component of 25
	1054	+	a hemp-derived product, is readily accessible to a customer without the 26
	1055	+	assistance of a salesperson; 27
	1056	+	(16) “Tetrahydrocannabinol” means a compound that is the natural, 28
	1057	+	primary active cannabinoid substance or its equivalent contained in the plant 29
	1058	+	of the genus cannabis or in the resinous extracts of the plant, including 30
	1059	+	derivatives or isomers derived from such cannabinoids; 31
	1060	+	(17) “Vapor product” means hemp -derived product that is an 32
	1061	+	electronic oral device of any size or shape that contains a vapor of hemp or 33
	1062	+	hemp-derived e-liquid product that when used or inhaled simulates smoking, 34
	1063	+	regardless of whether a visible vapor is produced, including without 35
	1064	+	limitation a device that: 36 SB533
	1065	+
	1066	+	29 03/20/2025 11:19:12 AM JMB498
	1067	+	(A) Is composed of a heating element, battery, electronic 1
	1068	+	circuit, chemical process, mechanical device, or a combination of heating 2
	1069	+	element, battery, electronic circuit, chemical process, or mechanical device; 3
	1070	+	(B) Works in combination with a cartridge, other 4
	1071	+	container, or liquid delivery device containing hemp or hemp -derived e-liquid 5
	1072	+	product and manufactured for use with vapor products; 6
	1073	+	(C) Is manufactured, distributed, marketed, or sold as any 7
	1074	+	type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 8
	1075	+	other produced name or descriptor; and 9
	1076	+	(D) Does not include a product regulated as a drug or 10
	1077	+	device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 11
	1078	+	as it existed on January 1, 2015; 12
	1079	+	(18) “Warehouse” means a place where hemp -derived products are 13
	1080	+	stored for another person and to or from which place the hemp -derived 14
	1081	+	products are shipped or delivered upon order by the owner of the hemp -derived 15
	1082	+	products, to the warehouse; and 16
	1083	+	(19) “Wholesaler” means a person other than a manufacturer or a 17
	1084	+	person owned or operated by a manufacturer that: 18
	1085	+	(A) Does business within the state; 19
	1086	+	(B) Purchases hemp-derived products from any source; 20
	1087	+	(C) Distributes or sells the hemp -derived products to 21
	1088	+	other wholesalers, or retailers; and 22
	1089	+	(D) Does not distribute or sell the hemp -derived products 23
	1090	+	at retail to consumers. 24
29	1091		25
30		-	SECTION 1. Arkansas Code § 2 -15-503(5), concerning the definition of 26
31		-	"industrial hemp" within the Arkansas Industrial Hemp Production Act, is 27
32		-	amended to read as follows: 28
33		-	(5) “Industrial hemp” means the plant Cannabis sativa and any part of 29
34		-	the plant, including the seeds of the plant and all derivatives, extracts, 30
35		-	cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 31
36		-	not, with a total the lesser of a delta-9 tetrahydrocannabinol concentration 32
37		-	of no more than three -tenths of one percent (0.3%) of the hemp-derived 33
38		-	cannabadiol on a dry weight basis , unless specifically controlled under the 34
39		-	Uniform Controlled Substances Act, § 5 -64-101 et seq. for hemp or as 35
40		-	otherwise defined by 7 U.S.C. § 1639o, as existing on January 1, 2025 ; 36 As Engrossed: S4/2/25 H4/8/25 SB533
41		-
42		-	2 04-08-2025 10:08:29 JMB498
43		-
44		-
45		-	1
46		-	SECTION 2. Arkansas Code § 5 -64-101(16)(B), concerning the exclusion 2
47		-	from the definition of "marijuana" within the Uniform Controlled Substances 3
48		-	Act, is amended to add an additional subdivision to read as follows: 4
49		-	(vii) Consumable hemp product as defined under § 20 -5
50		-	56-501 et seq.; 6
51		-	7
52		-	SECTION 3. Arkansas Code § 5 -64-215(a)(2), concerning the substances 8
53		-	in Schedule VI of the Uniform Controlled Substances Act, is amended to read 9
54		-	as follows: 10
55		-	(2) Tetrahydrocannabinols, unless the tetrahydrocannabinol is: 11
56		-	(A) Contained in hemp -derived cannabidiol; 12
57		-	(B) Not more than the lesser of three-tenths of one 13
58		-	percent (0.3%) of delta-9 tetrahydrocannabinol in the hemp-derived 14
59		-	cannabidiol concentration of more than three tenths of one percent (0.3%) on 15
60		-	a dry weight basis for hemp or as otherwise defined by 7 U.S.C. § 1639o, as 16
61		-	existing on January 1, 2025, as verified by a nationally accredited 17
62		-	laboratory for quality, purity, and accuracy standards; and 18
63		-	(C) Not approved by the United States Food and Drug 19
64		-	Administration for marketing as a medication; 20
65		-	21
66		-	SECTION 4. Arkansas Code § 5 -64-215(a)(5)(A)(i)(i), concerning the 22
67		-	substances in Schedule VI of the Uniform Controlled Substances Act, is 23
68		-	amended to read as follows: 24
69		-	(i) A product derived from industrial hemp 25
70		-	that was produced as a result of a synthetic chemical process that converted 26
71		-	the industrial hemp or a substance contained in the industrial hemp into 27
72		-	delta-8, delta-9, delta-6a,10a, or delta-10 tetrahydrocannabinol including 28
73		-	their respective acetate esters and other intoxicating hemp products as 29
74		-	defined in § 20-56-501 et seq.; and 30
75		-	31
76		-	SECTION 5. Arkansas Code § 5 -64-215(a)(5)(A)(i), concerning the 32
77		-	substances in Schedule VI of the Uniform Controlled Substances Act, is 33
78		-	amended to add an additional subdivision to read as follows: 34
79		-	(k) An intoxicating hemp product as defined 35
80		-	under § 20-56-501 et seq.; 36 As Engrossed: S4/2/25 H4/8/25 SB533
81		-
82		-	3 04-08-2025 10:08:29 JMB498
83		-
84		-
85		-	1
86		-	SECTION 6. Arkansas Code § 5 -64-215(d), concerning the substances in 2
87		-	Schedule VI of the Uniform Controlled Substances Act, is amended to read as 3
88		-	follows: 4
89		-	(d) This section does not prohibit the continuous interstate 5
90		-	transportation or shipment through Arkansas of the plant Cannabis sativa L., 6
91		-	and any part of that plant, including the seeds thereof and all derivatives, 7
92		-	extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether 8
93		-	growing or not, with the lesser of a delta-9 tetrahydrocannabinol 9
94		-	concentration of not more than three -tenths of one percent (0.3%) on a dry 10
95		-	weight basis, produced in accordance with or as otherwise defined in 7 U.S.C. 11
96		-	§ 1639o et seq., as existing on January 1, 2025. 12
97		-	13
98		-	SECTION 7. Arkansas Code § 19 -6-301(254), concerning the enumerated 14
99		-	special revenues in this state, is amended to read as follows: 15
100		-	(254) All permit and license fees received by Arkansas Tobacco 16
101		-	Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 17
102		-	seq., and § 20-56-501 et seq.; 18
103		-	19
104		-	SECTION 8. Arkansas Code § 19 -6-831, effective until the contingency 20
105		-	in Acts 2023, No. 629, § 17, is met, is amended to read as follows: 21
106		-	19-6-831. Arkansas Tobacco Control Revenue Fund. 22
107		-	(a) There is created on the books of the Treasurer of State, the 23
108		-	Auditor of the State, and the Chief Fiscal Officer of the State a special 24
109		-	revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 25
110		-	(b)(1) All permit and license fees received by Arkansas Tobacco 26
111		-	Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 27
112		-	seq., and § 20-56-501 et seq. shall be deposited into the State Treasury as 28
113		-	special revenues to the credit of the fund. 29
114		-	(2) The fund also shall consist of any other revenues authorized 30
115		-	by law. 31
116		-	(c)(1) The fund shall be used for expenses incurred by Arkansas 32
117		-	Tobacco Control in the organization, maintenance, operation, and merchant 33
118		-	education and training with regard to enforcement of § 5 -27-227, the Arkansas 34
119		-	Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-501 et seq., 35
120		-	and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 36 As Engrossed: S4/2/25 H4/8/25 SB533
121		-
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123		-
124		-
125		-	(2) Expenditures of moneys in the fund are subject to the 1
126		-	General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 2
127		-	Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 3
128		-	laws. 4
129		-	(3) The receipts and disbursements of Arkansas Tobacco Control 5
130		-	shall be audited annually by Arkansas Legislative Audit. 6
131		-	7
132		-	SECTION 9. Arkansas Code § 19 -6-831, effective if the contingency in 8
133		-	Acts 2023, No. 629, § 17, is met, is repealed. 9
134		-	19-6-831. Arkansas Tobacco Control Revenue Fund. 10
135		-	(a) There is created on the books of the Treasurer of State, the 11
136		-	Auditor of the State, and the Chief Fiscal Officer of the State a special 12
137		-	revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”. 13
138		-	(b)(1) All permit and license fees received by Arkansas Tobacco 14
139		-	Control under the Arkansas Tobacco Products Tax Act of 1977, § 26 -57-201 et 15
140		-	seq., and § 20-56-401 et seq., shall be deposited into the State Treasury as 16
141		-	special revenues to the credit of the fund. 17
142		-	(2) The fund also shall consist of any other revenues authorized 18
143		-	by law. 19
144		-	(c)(1) The fund shall be used for expenses incurred by Arkansas 20
145		-	Tobacco Control in the organization, maintenance, operation, and merchant 21
146		-	education and training with regard to enforcement of § 5 -27-227, the Arkansas 22
147		-	Tobacco Products Tax Act of 1977, § 26 -57-201 et seq., § 20-56-401 et seq., 23
148		-	and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 24
149		-	(2) Expenditures of moneys in the fund are subject to the 25
150		-	General Accounting and Budgetary Procedures Law, § 19 -4-101 et seq., the 26
151		-	Arkansas Procurement Law, § 19 -11-201 et seq., and other applicable fiscal 27
152		-	laws. 28
153		-	(3) The receipts and disbursements of Arkansas Tobacco Control 29
154		-	shall be audited annually by Arkansas Legislative Audit. 30
155		-	31
156		-	SECTION 10. Arkansas Code Title 20, Chapter 56, is amended to add an 32
157		-	additional subchapter to read as follows: 33
158		-	Subchapter 5 — Consumable Hemp Products 34
159		-	35
160		-	20-56-501. Legislative intent. 36 As Engrossed: S4/2/25 H4/8/25 SB533
161		-
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163		-
164		-
165		-	It is the intent of the General Assembly that this subchapter shall: 1
166		-	(1) Regulate the manufacture, production, distribution, and sale 2
167		-	of consumable hemp products; 3
168		-	(2) Prevent the manufacturing, production, distribution, 4
169		-	marketing, sale, and use of intoxicating hemp products within Arkansas; and 5
170		-	(3) Protect and promote the public health and welfare of the 6
171		-	residents of this state. 7
172		-	8
173		-	20-56-502. Definitions. 9
174		-	As used in this subchapter: 10
175		-	(1) “Annual” or “annually” means the fiscal year from July 1 11
176		-	through the next June 30; 12
177		-	(2) “Approved laboratory” means a laboratory that is accredited 13
178		-	by the National Institute on Drug Abuse, the National Environmental 14
179		-	Laboratory Accreditation Conference, the International Organization for 15
180		-	Standardization, or similar accrediting entity as determined by Arkansas 16
181		-	Tobacco Control and that has been approved by the Director of Arkansas 17
182		-	Tobacco Control specifically for the testing of consumable hemp product; 18
183		-	(3)(A) “Cannabis” means all parts of the plant of the genus 19
184		-	cannabis, the flower, the seeds thereof, the resin extracted from any part of 20
185		-	the plant and every compound, manufacture, salt, derivative, mixture or 21
186		-	preparation of the plant, and its seeds or its resin, including whole plant 22
187		-	extracts. 23
188		-	(B) "Cannabis" does not include cannabis -derived drug 24
189		-	products approved by the United States Food and Drug Administration under 25
190		-	Section 505 of the Federal Food, Drug, and Cosmetic Act, as existing on 26
191		-	January 1, 2025; 27
192		-	(4) “Consumable hemp product” means a finished product that 28
193		-	includes part of the hemp plant, including naturally derived cannabinoids, 29
194		-	compounds, concentrates, extracts, isolates, or derivatives that is intended 30
195		-	for human consumption and not marketed for intoxicating effect and is: 31
196		-	(A) A cosmetic as defined by 21 U.S.C. § 321, as existing 32
197		-	on January 1, 2025, that meets the federally defined tetrahydrocannabinol 33
198		-	level; 34
199		-	(B) Any product generally recognized as safe by the United 35
200		-	States Food and Drug Administration under the Federal Food, Drug, and 36 As Engrossed: S4/2/25 H4/8/25 SB533
201		-
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203		-
204		-
205		-	Cosmetic Act, 21 U.S.C. § 301 et seq., and the intended mode of consumption 1
206		-	comports with generally recognized as safe recognition; or 2
207		-	(C) A product that has no more than one milligram (1 mg) 3
208		-	of total tetrahydrocannabinol per container and minimum ratio of cannabidiol 4
209		-	to tetrahydrocannabinol of greater than fifteen to one (15:1) and is: 5
210		-	(i) A full spectrum hemp extract or cannabinoid hemp 6
211		-	product containing multiple hemp -derived cannabinoids, terpenes, and other 7
212		-	naturally occurring compounds, processed without the intentional complete 8
213		-	removal of any compound and without the addition of isolated cannabinoids; or 9
214		-	(ii) A product primarily containing and marketed as 10
215		-	cannabidiol, cannabichromene, cannabinol, cannabigerol, cannabicycol, 11
216		-	cannabidivarin, cannabielsoin, cannabicitran, cannabicycol, cannabielsoin, or 12
217		-	tetrahydrocannabivarin; 13
218		-	(5) “Consumable hemp distributor” means a person that receives 14
219		-	raw hemp, hemp floral material, extracts, distillates, isolates, or any 15
220		-	extracted form of hemp as long as the extracted form of hemp is extracted 16
221		-	from hemp for the manufacturing, distribution, or processing of any 17
222		-	consumable hemp product including without limitation edibles, tinctures, 18
223		-	lubricants, salves, lotions, hemp floral material, concentrates, distillates, 19
224		-	or liquids; 20
225		-	(6)(A) “Consumable hemp manufacturer” means a person that 21
226		-	manufacturers, fabricates, assembles, or processes a hemp -derived product, 22
227		-	including without limitation federally licensed importers and federally 23
228		-	licensed distributors that deal in consumable hemp products. 24
229		-	(B) “Consumable hemp manufacturer” includes: 25
230		-	(i) A sales entity affiliate of the manufacturer or 26
231		-	any other entity representing the manufacturer with regard to the sale of 27
232		-	consumable hemp products produced by the manufacturer or wholesalers or 28
233		-	permitted retailers; and 29
234		-	(ii) A person that mixes, compounds, extracts, 30
235		-	infuses, blends, processes, repackages, or resizes consumable hemp products 31
236		-	including the extraction of cannabinoids from hemp biomass. 32
237		-	(C) “Consumable hemp manufacturer” does not include a 33
238		-	person who engages in the agricultural production of hemp, such as growing, 34
239		-	planting, and harvesting of raw hemp biomass regulated by the State Plant 35
240		-	Board; 36 As Engrossed: S4/2/25 H4/8/25 SB533
241		-
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243		-
244		-
245		-	(7) “Consumable hemp retailer” means a dealer licensed by the 1
246		-	Arkansas Tobacco Control Board, other than a consumable hemp wholesaler, 2
247		-	whose principal place of business is that of selling merchandise at retail, 3
248		-	including online sales, and who sells consumable hemp products; 4
249		-	(8) “Consumable hemp wholesaler” means a dealer licensed by the 5
250		-	Arkansas Tobacco Control Board whose principal place of business is that of a 6
251		-	wholesaler dealer, and who is known to the trade as such, that sells any 7
252		-	consumable hemp products to licensed consumable hemp retailers only for the 8
253		-	purpose of resale to consumers; 9
254		-	(9) “Consumer” means a member of the public at large; 10
255		-	(10) “Consumption” means any method of ingestion of or 11
256		-	application to the body, including eating, drinking, inhaling, absorbing, or 12
257		-	injecting, through which a product is metabolized or is otherwise subject to 13
258		-	a biotransformative process when introduced into the human body; 14
259		-	(11)(A) “Container” means any final packaged product that is 15
260		-	offered, intended for sale, or sold to a consumer in the form of an external 16
261		-	package, can, bottle, bag, or other receptacle that can hold hemp or 17
262		-	consumable hemp products. 18
263		-	(B) "Container" does not include: 19
264		-	(i) Exit packaging, a shipping container, or an 20
265		-	outer wrapping used solely for the transport of products in bulk quantity; or 21
266		-	(ii) Any package, can, bottle, bag, or other 22
267		-	receptacle that may house the products individually inside the external 23
268		-	container; 24
269		-	(12) “Days” means calendar days unless otherwise specified; 25
270		-	(13) “Delta-9 tetrahydrocannabinol” means the sum of the 26
271		-	percentage by weight of tetrahydrocannabinol acid multiplied by eight hundred 27
272		-	seventy-seven thousandths (0.877) plus the percentage by weight of delta -9 28
273		-	tetrahydrocannabinol; 29
274		-	(14) “Federally defined tetrahydrocannabinol level” means the 30
275		-	lesser of a delta-9 tetrahydrocannabinol concentration of not more than three 31
276		-	tenths of one percent (0.3%) on a dry weight basis for hemp or as otherwise 32
277		-	defined in 7 U.S.C. § 1639o, as existing on January 1, 2025; 33
278		-	(15) “Finished product” means a product intended for consumer 34
279		-	use to be sold at retail; 35
280		-	(16) “Hemp” means the plant Cannabis sativa and any part of the 36 As Engrossed: S4/2/25 H4/8/25 SB533
281		-
282		-	8 04-08-2025 10:08:29 JMB498
283		-
284		-
285		-	plant, including the seeds of the plant, that contains a delta -9 1
286		-	tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 2
287		-	less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 3
288		-	isomers, acids, salts, and salts of isomers, whether growing or not; 4
289		-	(17)(A) “Intoxicating hemp product” means a finished product 5
290		-	intended for human consumption that is derived from or contains hemp or hemp 6
291		-	extract and contains a total tetrahydrocannabinol concentration that exceeds 7
292		-	zero percent (0%) when tested in its finished form. 8
293		-	(B) "Intoxicating hemp product" may contain derivatives, 9
294		-	extracts, cannabinoids, isomers, esters, ethers, acids, salts, and salts of 10
295		-	isomers, esters, and ethers whenever the existence of such isomers, esters, 11
296		-	ethers, and salts is possible within the specific chemical designation 12
297		-	including without limitation: 13
298		-	(i) Delta-10 cis or trans tetrahydrocannabinol and 14
299		-	its optical isomers; 15
300		-	(ii) Delta-9 cis or trans tetrahydrocannabinol and 16
301		-	its optical isomers; 17
302		-	(iii) Delta-8 cis or trans tetrahydrocannabinol and 18
303		-	its optical isomers; 19
304		-	(iv) Delta-7 cis or trans tetrahydrocannabinol and 20
305		-	its optical isomers; 21
306		-	(v) Delta-6a, 10a cis or trans tetrahydrocannabinol 22
307		-	and its optical isomers; 23
308		-	(vi) Exo-tetrahydrocannabinol; 24
309		-	(vii) Metabolites of tetrahydrocannabinol, including 25
310		-	11-hydroxy-tetrahydrocannabinol, 3 -27 hydroxy-tetrahydrocannabinol, and 7 - 12 26
311		-	hydroxy-tetrahydrocannabinol; 27
312		-	(viii) Tetrahydrocannabinolic acid; 28
313		-	(ix) Hydrogenated forms of tetrahydrocannabinol, 29
314		-	including hexahydrocannabinol, hexaydrocannabiphrol, and 30
315		-	hexahydrocannabihexol; 31
316		-	(x) Synthetic forms of tetrahydrocannabinol, 32
317		-	including dronabinol; 33
318		-	(xi) Ester forms of tetrahydrocannabinol, including 34
319		-	delta-8 tetrahydrocannabinol, tetrahydrocannabinol -O-acetate, delta-9 35
320		-	tetrahydrocannabinol -O-acetate, delta-10 tetrahydrocannabinol -O-acetate, 36 As Engrossed: S4/2/25 H4/8/25 SB533
321		-
322		-	9 04-08-2025 10:08:29 JMB498
323		-
324		-
325		-	delta-6a,10a tetrahydrocannabinol -O-acetate and hexahydrocannabinol -O-6 1
326		-	acetate; 2
327		-	(xii) Ether forms of tetrahydrocannabinol and 3
328		-	hexahydrocannabinol including delta -9 tetrahydrocannabinol methyl ether and 4
329		-	delta-8 tetrahydrocannabinol methyl ether; 5
330		-	(xiii) Tetrahydrocannabivarins, including delta -8 6
331		-	tetrahydrocannabivarin but excluding delta -9 tetrahydrocannabivarin; 7
332		-	(xiv) Analogues or tetrahydrocannabinols with an 8
333		-	alkyl chain of four (4) or more carbon atoms, including 9
334		-	tetrahydrocannabiphorols, tetrahydrocannabioctyls, tetrahydocannabihexols, or 10
335		-	tetrahydrocannabutols; 11
336		-	(xv) Delta-8 isotetrahydrocannabinol, delta4(8) -12
337		-	isotetrahydrocannabinol and isohexahydrocannabinol; 13
338		-	(xvi) Any combination of the compounds, including 14
339		-	hexahydrocannabiphorol -o-ester and delta-8 tetrahydrocannabiphorol acetate, 15
340		-	delta-9 tetrahydorcannabiphorol acetate; and 16
341		-	(xvii)(a) Any other cannabinoid classified as an 17
342		-	intoxicant by rule of the Arkansas Tobacco Control Board. 18
343		-	(b) The Arkansas Tobacco Control Board shall 19
344		-	notify the Department of Health when and if additional cannabinoids are 20
345		-	classified as an intoxicant by the Arkansas Tobacco Control Board. 21
346		-	(C) "Intoxicating hemp product" does not include a consumable hemp 22
347		-	product or medical marijuana regulated under the Arkansas Medical Marijuana 23
348		-	Amendment of 2016, Arkansas Constitution, Amendment 98; 24
349		-	(18) “Minor” means a person who is under twenty -one (21) years 25
350		-	of age; 26
351		-	(19) “Person” means an individual, retailer, wholesaler, 27
352		-	manufacturer, firm, association, company, partnership, limited liability 28
353		-	company, corporation, joint -stock company, club, agency, syndicate, county, 29
354		-	municipal corporation or other political subdivision of the state, receiver, 30
355		-	trustee, fiduciary, or trade association; 31
356		-	(20) “Principal place of business” means the physical location: 32
357		-	(A) Where orders for consumable hemp products are taken or 33
358		-	received or where consumable hemp products are sold; and 34
359		-	(B) That is on file with the Arkansas Tobacco Control 35
360		-	Board; 36 As Engrossed: S4/2/25 H4/8/25 SB533
361		-
362		-	10 04-08-2025 10:08:29 JMB498
363		-
364		-
365		-	(21) “Produce” means to grow industrial hemp for market or for 1
366		-	cultivation for market; 2
367		-	(22)(A) “Sale” or “sell” means a transfer, exchange, or barter 3
368		-	in any manner or by any means for any consideration, including distributing 4
369		-	or shipping consumable hemp products in connection with a sale. 5
370		-	(B) A sale “in” or “into” a state refers to the state in 6
371		-	which the destination point of the consumable hemp product is located in the 7
372		-	sale without regard to where title was transferred. 8
373		-	(C) A sale “from” a state refers to the sale of a 9
374		-	consumable hemp product that is located in that state to the destination in 10
375		-	question without regard to where title was transferred; 11
376		-	(23) “Tetrahydrocannabinol” means a compound that is the 12
377		-	natural, primary active cannabinoid substance or its equivalent contained in 13
378		-	the plant of the genus Cannabis or in the resinous extracts of the plant, 14
379		-	including derivatives or isomers derived from such cannabinoids; 15
380		-	(24) "Total tetrahydrocannabinol" means the total concentration 16
381		-	of all tetrahydrocannabinols, including delta -8 tetrahydrocannabinol, delta -9 17
382		-	tetrahydrocannabinol, delta -10 tetrahydrocannabinol, tetrahydrocannabinolic 18
383		-	acid or its decarboxylated equivalent, and any other chemically similar 19
384		-	compound, substance, derivative, or isomer of tetrahydrocannabinol, and any 20
385		-	other cannabinoid identified by the Arkansas Tobacco Control Board; and 21
386		-	(25) “Warehouse” means a place where consumable hemp products 22
387		-	are stored for another person and to or from which place the consumable hemp 23
388		-	products are shipped or delivered upon order by the owner of the consumable 24
389		-	hemp, to the warehouse. 25
390		-	26
391		-	20-56-503. Construction. 27
392		-	(a) A consumable hemp product shall not be delivered, sold, bought, or 28
393		-	used in this state except in conformity with applicable laws and rules, 29
394		-	including this subchapter and rules promulgated under this subchapter. 30
395		-	(b) A person shall not manufacture, process, distribute, or sell a 31
396		-	consumable hemp product without being permitted by the Arkansas Tobacco 32
397		-	Control Board. 33
398		-	(c) A product intended for human consumption or inhalation that is 34
399		-	derived from hemp and contains tetrahydrocannabinol shall not be permitted or 35
400		-	allowed under the laws of this state, other than consumable hemp products if 36 As Engrossed: S4/2/25 H4/8/25 SB533
401		-
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403		-
404		-
405		-	otherwise legal under state law. 1
406		-	(d)(1) A consumable hemp product shall not be combined with or contain 2
407		-	any of the following: 3
408		-	(A) Ethanol; 4
409		-	(B) Nicotine or tobacco; 5
410		-	(C) Intoxicating hemp product; or 6
411		-	(D) Any amount of tetrahydrocannabinol as to create a 7
	1092	+	20-56-403. Construction. 26
	1093	+	(a) A hemp-derived product shall not be delivered, sold, bought, or 27
	1094	+	used in this state except in conformity with all applicable laws and 28
	1095	+	regulations, including this subchapter and any rules promulgated under this 29
	1096	+	subchapter. 30
	1097	+	(b) A person shall not sell a hemp -derived product without being 31
	1098	+	permitted by Arkansas Tobacco Control. 32
	1099	+	(c) A product intended for human consumption or inhalation that is 33
	1100	+	derived from hemp and contains tetrahydrocannabinol shall not be permitted or 34
	1101	+	allowed under the laws of this state, other than hemp -derived products if 35
	1102	+	otherwise legal under state law. 36 SB533
	1103	+
	1104	+	30 03/20/2025 11:19:12 AM JMB498
	1105	+	(d)(1) A hemp-derived product shall not be combined with or contain 1
	1106	+	any of the following: 2
	1107	+	(A) Any liquid, hydrocolloid, animal -based substance, 3
	1108	+	thickener, sweetener, flavoring, synthetic product, propylene glycol, 4
	1109	+	vegetable glycerin, or other non -hemp-derived substance; 5
	1110	+	(B) Nicotine or tobacco; or 6
	1111	+	(C) Any amount of tetrahydrocannabinol as to create a 7
412	1112		danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 8
413	1113		other risk to the public. 9
414		-	(2) A medical ~~device~~, prescription ~~drug~~, or ~~drug~~ otherwise 10
415		-	approved by the United States Food and Drug Administration is not a 11
416		-	~~consumable~~ hemp ~~product~~. 12
	1114	+	(2) Medical devices, prescription drugs, or drugs otherwise 10
	1115	+	approved by the United States Food and Drug Administration shall not be 11
	1116	+	considered hemp-derived products. 12
417	1117		(e) The business of handling, receiving, possessing, storing, 13
418	1118		distributing, taking orders for, soliciting orders of, selling, offering for 14
419		-	sale, and dealing in, through sale, barter, or exchange, ~~consumable hemp~~ 15
420		-	products is declared to be a privilege under the ~~laws of this state.~~ 16
421		-	17
422		-	~~20-56-504. Permits.~~ 18
423		-	~~(a)(1) Each person listed in this section, before commencing business~~ 19
424		-	~~or if already~~ in business, ~~before continuing business, shall pay an annual~~ 20
425		-	~~privilege fee and secure a permit from the Director of Arkansas Tobacco~~ 21
426		-	~~Control.~~ 22
427		-	~~(2) A person purchasing an existing permitted retail location~~ 23
428		-	~~may, with the permission of the seller and the Arkansas Tobacco Control~~ 24
429		-	~~Board~~, operate ~~under the selling owner’s permit for no more than thirty (30)~~ 25
430		-	days from the ~~date of the sale.~~ 26
431		-	~~(b)(1) In addition to securing a permit under subsection (a)~~ of ~~this~~ 27
432		-	~~section,~~ a ~~consumable hemp manufacturer whose products are sold in~~ this ~~state~~ 28
433		-	shall register ~~with the Secretary of the Department of Finance and~~ 29
434		-	Administration. 30
435		-	(2) A ~~consumable~~ hemp ~~wholesaler~~ shall secure the ~~proper~~ 31
436		-	wholesale permit. 32
437		-	(3) Every ~~consumable~~ hemp ~~retailer~~ that operates a ~~place of~~ 33
438		-	business shall secure the proper retail permit. 34
	1119	+	sale, and dealing in, through sale, barter, or exchange, hemp -derived 15
	1120	+	products is declared to be a privilege under the Arkansas Constitution and 16
	1121	+	laws of the State of Arkansas. 17
	1122	+	18
	1123	+	20-56-404. Permits. 19
	1124	+	(a)(1) Each person listed in this section, before commencing business, 20
	1125	+	or if already in business, before continuing business, shall pay an annual 21
	1126	+	privilege fee and secure a permit from the Director of Arkansas Tobacco 22
	1127	+	Control. 23
	1128	+	(2) A person purchasing an existing permitted retail location 24
	1129	+	may, with the permission of the seller and Arkansas Tobacco Control, operate 25
	1130	+	under the selling owner's permit for no more than thirty (30) days from the 26
	1131	+	date of the sale. 27
	1132	+	(b)(1) In addition to securing a permit under subsection (a) of this 28
	1133	+	section, a manufacturer whose products are sold in this state shall register 29
	1134	+	with the Secretary of the Department of Finance and Administration. 30
	1135	+	(2) A wholesaler of hemp -derived products shall secure the 31
	1136	+	proper wholesale permit. 32
	1137	+	(3) Every retailer of hemp -derived products that operates a 33
	1138	+	place of business shall secure the proper retail permit. 34
439	1139		(c)(1) Permits shall be issued as follows: 35
440		-	(A) A permit for a sole proprietorship is issued in the 36 As Engrossed: S4/2/25 H4/8/25 SB533
441		-
442		-	12 04-08-2025 10:08:29 JMB498
443		-
444		-
445		-	owner’s name and in the fictitious business name, if any; 1
	1140	+	(A) A permit for a sole proprietorship is issued in the 36 SB533
	1141	+
	1142	+	31 03/20/2025 11:19:12 AM JMB498
	1143	+	owner's name and in the fictitious business name, if any; 1
446	1144		(B)(i) A permit for a partnership or limited liability 2
447	1145		company is issued in the name of: 3
448	1146		(a) The managing partner or managing member; 4
449	1147		and 5
450	1148		(b) The partnership or limited liability 6
451	1149		company. 7
452	1150		(ii) If the managing partner or managing member of a 8
453	1151		limited liability company is a partnership, limited liability company, or 9
454	1152		corporation, then the permit shall be issued in the name of: 10
455	1153		(a) The president or chief executive officer; 11
456	1154		and 12
457	1155		(b) The partnership or limited liability 13
458	1156		company; and 14
459	1157		(C) A permit for a publicly traded or nonpublicly traded 15
460		-	corporation ~~shall be~~ issued in the name of the president or chief executive 16
461		-	~~officer~~ of the corporation and in the name of the corporation. 17
	1158	+	corporation is issued in the name of the president or chief executive officer 16
	1159	+	of the corporation and in the name of the corporation. 17
462	1160		(2) It is a violation for a permitted entity not to provide 18
463	1161		written notification to the director within thirty (30) days of a change in 19
464	1162		the following: 20
465		-	(A) The managing partner ~~of a partnership~~, ~~managing member~~ 21
466		-	~~of a limited liability company~~, or president or chief executive officer of a 22
467		-	~~corporation,~~ partnership, or limited liability company; or 23
	1163	+	(A) The managing partner, limited liability company 21
	1164	+	managing member, or president or chief executive officer of a corporation, 22
	1165	+	partnership, or limited liability company; or 23
468	1166		(B) The stockholders effecting twenty -five percent (25%) 24
469	1167		or more of the total voting shares of a nonpublicly traded corporation. 25
470	1168		(d)(1) When an entity transfers a business permitted under this 26
471	1169		subchapter, the entity to which the business is transferred: 27
472	1170		(A) Shall apply for a new permit under this subchapter; 28
473	1171		(B) May be issued a new permit under this subchapter; and 29
474		-	(C) May operate under the selling entity’s permit for no 30
	1172	+	(C) May operate under the selling entity's permit for no 30
475	1173		more than thirty (30) days from the date of the sale. 31
476	1174		(2) When a partnership or limited liability company permitted 32
477	1175		under this subchapter changes, removes, or replaces the managing partner, 33
478	1176		managing member, president, or chief executive officer: 34
479	1177		(A) The existing permit issued under this subchapter is 35
480		-	void; and 36 As Engrossed: S4/2/25 H4/8/25 SB533
481		-
482		-	13 04-08-2025 10:08:29 JMB498
483		-
484		-
	1178	+	void; and 36 SB533
	1179	+
	1180	+	32 03/20/2025 11:19:12 AM JMB498
485	1181		(B) The partnership or limited liability company: 1
486	1182		(i) Shall apply for a new permit under this 2
487	1183		subchapter; 3
488	1184		(ii) May be issued a new permit under this 4
489	1185		subchapter; and 5
490		-	(iii) May operate under the voided permit for no 6
491		-	more than thirty (30) days from the date of the change, removal, or 7
492		-	replacement of the managing partner, managing member, president, or chief 8
493		-	executive officer. 9
494		-	(3) When a nonpublicly traded corporation permitted under this 10
495		-	subchapter changes, removes, or replaces the president or chief executive 11
496		-	officer named on the permit or changes, removes, or replaces a stockholder 12
497		-	who owns fifty percent (50%) or more of the total voting shares of the 13
498		-	nonpublicly traded corporation’s stock: 14
499		-	(A) The permit issued under this subchapter is void; and 15
500		-	(B) The nonpublicly traded corporation: 16
501		-	(i) Shall apply for a new permit under this 17
502		-	subchapter; 18
503		-	(ii) May be issued a new permit under this 19
504		-	subchapter; and 20
505		-	(iii) May operate under the voided permit for no 21
506		-	more than thirty (30) days from the date of the change, removal, or 22
507		-	replacement of the president, chief executive officer, or stockholder. 23
508		-	(4) When a publicly traded corporation permitted under this 24
509		-	subchapter changes, removes, or replaces the president or chief executive 25
510		-	officer named on the permit or changes, removes, or replaces a stockholder 26
511		-	who owns fifty percent (50%) or more of the total voting shares of the 27
512		-	publicly traded corporation’s stock: 28
513		-	(A) The permit issued under this subchapter is void; and 29
514		-	(B) The publicly traded corporation: 30
515		-	(i) Shall apply for a new permit under this 31
516		-	subchapter; 32
517		-	(ii) May be issued a new permit under this 33
518		-	subchapter; and 34
519		-	(iii) May operate under the voided permit for no 35
520		-	more than thirty (30) days from the date of the change, removal, or 36 As Engrossed: S4/2/25 H4/8/25 SB533
521		-
522		-	14 04-08-2025 10:08:29 JMB498
523		-
524		-
525		-	replacement of the president, chief executive officer, or stockholder. 1
526		-	(e) An entity may apply for and be issued a permit under this 2
527		-	subchapter in advance of the effective date of the permit to facilitate 3
528		-	continuity of business operations. 4
529		-	5
530		-	20-56-505. Permits — Location — Background check required. 6
531		-	(a) A consumable hemp retailer permit, consumable hemp wholesaler 7
532		-	permit, or consumable hemp manufacturer permit shall not be issued to a 8
533		-	residential address, a mobile structure, vehicle, or for an address not zoned 9
534		-	appropriately for the business seeking to secure the permit. 10
535		-	(b) A permit shall not be issued to: 11
536		-	(1) A person who has pleaded guilty or nolo contendere to or 12
537		-	been found guilty of a felony; or 13
538		-	(2) A business owned or operated, in whole or in part, by a 14
539		-	person who has pleaded guilty or nolo contendere to or been found guilty of a 15
540		-	felony. 16
541		-	(c) The Arkansas Tobacco Control Board shall conduct a criminal 17
542		-	background check on each permit applicant and application, using the Arkansas 18
543		-	Crime Information Center. 19
544		-	20
545		-	20-56-506. Permits — Annual privilege fees. 21
546		-	(a) The annual privilege fee for each permit authorized by this 22
547		-	subchapter is established as follows: 23
548		-	(1) Consumable hemp wholesaler permit $5,000 24
549		-	(2) Consumable hemp retailer permit $5,000 25
550		-	(3) Consumable hemp manufacturer permit $5,000 26
551		-	(b)(1) All permits issued under this subchapter shall expire on June 27
552		-	30 following the effective date of issuance. 28
553		-	(2)(A) Upon the failure to timely renew a permit issued under 29
554		-	this subchapter, a late fee of two (2) times the amount of the appropriate 30
555		-	permit fee shall be owed in addition to the annual privilege fee for the 31
556		-	permit. 32
557		-	(B) An expired permit that is not renewed before September 33
558		-	1 following the expiration of the permit shall not be renewed, and the holder 34
559		-	of the expired permit shall submit an application for a new permit. 35
560		-	(3) A permit shall not be issued to the applicant until the late 36 As Engrossed: S4/2/25 H4/8/25 SB533
561		-
562		-	15 04-08-2025 10:08:29 JMB498
563		-
564		-
565		-	fee and the permit fee have been paid. 1
566		-	(c) A permit issued under this subchapter shall not be renewed for a 2
567		-	permit holder who is delinquent more than ninety (90) days on a privilege 3
568		-	fee, tax relating to the sale or dispensing of a consumable hemp product, or 4
569		-	any other state and local tax due the Secretary of the Department of Finance 5
570		-	and Administration. 6
571		-	(d) A person who is delinquent more than ninety (90) days on a state 7
572		-	or local tax may not renew or obtain a permit issued under this subchapter 8
573		-	except upon certification that the permit holder has entered into a repayment 9
574		-	agreement with the Department of Finance and Administration and is current on 10
575		-	the payments. 11
576		-	(e) A permit holder who has unpaid fees, civil penalties, or an 12
577		-	unserved permit suspension may not transfer, sell, or give consumable hemp 13
578		-	product inventory of the business associated with the permit to a third party 14
579		-	until all fees and civil penalties are paid in full and all suspensions are 15
580		-	completed successfully, nor shall any third party be issued a new permit for 16
581		-	the business location. 17
582		-	(f) Each consumable hemp manufacturer, consumable hemp wholesaler, and 18
583		-	consumable hemp retailer shall retain copies of all invoices for the purchase 19
584		-	or sale of any consumable hemp product for a period of at least ten (10) 20
585		-	years subject to examination by the secretary and the Director of Arkansas 21
586		-	Tobacco Control or their authorized agents upon demand at any time during 22
587		-	regular business hours. 23
588		-	(g) A consumable hemp retailer shall: 24
589		-	(1) Maintain copies of at least the last three hundred sixty -25
590		-	five (365) days of consumable hemp product invoices, which the retailer shall 26
591		-	provide immediately upon demand; 27
592		-	(2)(A) Make the invoices that are older than three hundred 28
593		-	sixty-five (365) days available upon demand at any time during normal 29
594		-	business hours in the retail store. 30
595		-	(B) Except as provided in subdivision (g)(2)(C) of this 31
596		-	section, an agent of the Arkansas Tobacco Control Board may determine a 32
597		-	reasonable time frame for which invoices are to be provided under subdivision 33
598		-	(g)(2)(A) of this section. 34
599		-	(C) An invoice that is provided seventy -two (72) hours 35
600		-	more after the demand shall not be considered for purposes of determining 36 As Engrossed: S4/2/25 H4/8/25 SB533
601		-
602		-	16 04-08-2025 10:08:29 JMB498
603		-
604		-
605		-	violation of this subsection; 1
606		-	(3) Retain invoices for all consumable hemp products in the 2
607		-	retail store even if the invoice for the consumable hemp product is older 3
608		-	than three (3) years; 4
609		-	(4) Maintain a copy of the signed server awareness forms for 5
610		-	each employee of the retailer who engages in the sale of consumable hemp 6
611		-	products, which the retailer shall provide immediately upon demand; 7
612		-	(5)(A) Maintain a copy of any complete transfer forms showing: 8
613		-	(i) The consumable hemp products that were 9
614		-	transferred; 10
615		-	(ii) The permitted location from which the 11
616		-	consumable hemp products were transferred; and 12
617		-	(iii) When the transfer occurred. 13
618		-	(B) A transfer form shall be completed contemporaneously 14
619		-	with the transfer and shall be provided immediately by the retailer upon 15
620		-	demand; and 16
621		-	(6) If any inventory was submitted with a permit application, 17
622		-	maintain a copy of the submitted inventory form, which the retailer shall 18
623		-	provide immediately upon demand. 19
624		-	(h) A consumable hemp wholesaler and consumable hemp manufacturer 20
625		-	shall: 21
626		-	(1) Maintain ten (10) years of consumable hemp product invoices 22
627		-	that are available upon demand during normal business hours in the permitted 23
628		-	location; and 24
629		-	(2) Permit the board and authorized personnel of the board to 25
630		-	enter into and inspect stock of consumable hemp products, and any documents 26
631		-	and records relating to receipts and disbursements of consumable hemp 27
632		-	products. 28
633		-	(i) An invoice from a consumable hemp wholesaler to a consumable hemp 29
634		-	retailer shall contain the name or other identifying information of the 30
635		-	consumable hemp wholesaler and the consumable hemp retailer. 31
636		-	(j)(1) A nonresident consumable hemp wholesaler shall also keep a 32
637		-	record of all consumable hemp products purchased for distribution within this 33
638		-	state. 34
639		-	(2) All books, records, and memoranda pertaining to the purchase 35
640		-	and sale of the consumable hemp products under subdivision (j)(1) of this 36 As Engrossed: S4/2/25 H4/8/25 SB533
641		-
642		-	17 04-08-2025 10:08:29 JMB498
643		-
644		-
645		-	section shall be subject to inspection by the board. 1
646		-	(k) Authorized personnel of the board shall not release to the board 2
647		-	or to the public any information identifying customers of the consumable hemp 3
648		-	manufacturer, consumable hemp wholesaler, or warehouse except when necessary 4
649		-	to notify the board of alleged violations of this subchapter. 5
	1186	+	(iii) May operate under the voided permit for no more 6
	1187	+	than thirty (30) days from the date of the change, removal, or replacement of 7
	1188	+	the managing partner, managing member, president, or chief executive officer. 8
	1189	+	(3) When a nonpublicly traded corporation permitted under this 9
	1190	+	subchapter changes, removes, or replaces the president or chief executive 10
	1191	+	officer named on the permit or changes, removes, or replaces a stockholder 11
	1192	+	who owns fifty percent (50%) or more of the total voting shares of the 12
	1193	+	nonpublicly traded corporation's stock: 13
	1194	+	(A) The permit issued under this subchapter is void; and 14
	1195	+	(B) The nonpublicly traded corporation: 15
	1196	+	(i) Shall apply for a new permit under this 16
	1197	+	subchapter; 17
	1198	+	(ii) May be issued a new permit under this 18
	1199	+	subchapter; and 19
	1200	+	(iii) May operate under the voided permit for no more 20
	1201	+	than thirty (30) days from the date of the change, removal, or replacement of 21
	1202	+	the president, chief executive officer, or stockholder. 22
	1203	+	(4) When a publicly traded corporation permitted under this 23
	1204	+	subchapter changes, removes, or replaces the president or chief executive 24
	1205	+	officer named on the permit or changes, removes, or replaces a stockholder 25
	1206	+	who owns fifty percent (50%) or more of the total voting shares of the 26
	1207	+	publicly traded corporation's stock: 27
	1208	+	(A) The permit issued under this subchapter is void; and 28
	1209	+	(B) The publicly traded corporation: 29
	1210	+	(i) Shall apply for a new permit under this 30
	1211	+	subchapter; 31
	1212	+	(ii) May be issued a new permit under this 32
	1213	+	subchapter; and 33
	1214	+	(iii) May operate under the voided permit for no more 34
	1215	+	than thirty (30) days from the date of the change, removal, or replacement of 35
	1216	+	the president, chief executive officer, or stockholder. 36 SB533
	1217	+
	1218	+	33 03/20/2025 11:19:12 AM JMB498
	1219	+	(e) An entity may apply for and be issued a permit under this 1
	1220	+	subchapter in advance of the effective date of the permit to facilitate 2
	1221	+	continuity of business operations. 3
	1222	+	4
	1223	+	20-56-405. Permits — Location — Background check required. 5
	1224	+	(a) A retail, wholesale, or manufacturer permit shall not be issued to 6
	1225	+	a residential address, a mobile structure or vehicle, or for an address not 7
	1226	+	zoned appropriately for the business seeking to secure the permit. 8
	1227	+	(b) A permit shall not be issued to: 9
	1228	+	(1) A person who has pleaded guilty or nolo contendere to or 10
	1229	+	been found guilty of a felony; or 11
	1230	+	(2) A business owned or operated, in whole or in part, by a 12
	1231	+	person who has pleaded guilty or nolo contendere to or been found guilty of a 13
	1232	+	felony. 14
	1233	+	(c) Arkansas Tobacco Control shall conduct a criminal background check 15
	1234	+	on each permit applicant and application, utilizing its Arkansas Crime 16
	1235	+	Information Center access as a law enforcement agency, in accordance with §§ 17
	1236	+	12-12-1008 — 12-12-1011. 18
	1237	+	19
	1238	+	20-56-406. Permits — Annual privilege fees. 20
	1239	+	(a) The annual privilege fee for each permit authorized by this 21
	1240	+	subchapter is established as follows: 22
	1241	+	(1) Wholesale Hemp-derived Products Permit.............$5,000 23
	1242	+	(2) Retail Hemp-derived Products Permit.............$5,000 24
	1243	+	(3) Manufacturer Hemp -derived Products Permit.............$5,000 25
	1244	+	(b)(1) All permits issued under this subchapter shall expire on June 26
	1245	+	30 following the effective date of issuance. 27
	1246	+	(2)(A) Upon the failure to timely renew a permit issued under 28
	1247	+	this subchapter, a late fee of two (2) times the amount of the appropriate 29
	1248	+	permit fee shall be owed in addition to the annual privilege fee for the 30
	1249	+	permit. 31
	1250	+	(B) An expired permit that is not renewed before September 32
	1251	+	1 following the expiration of the permit shall not be renewed, and the holder 33
	1252	+	of the expired permit shall submit an application for a new permit. 34
	1253	+	(3) A permit shall not be issued to the applicant until the late 35
	1254	+	fee and the permit fee have been paid. 36 SB533
	1255	+
	1256	+	34 03/20/2025 11:19:12 AM JMB498
	1257	+	(c) A permit issued under this subchapter shall not be renewed for a 1
	1258	+	permit holder who is delinquent more than ninety (90) days on a privilege 2
	1259	+	fee, tax relating to the sale or dispensing of hemp -derived products, or any 3
	1260	+	other state and local tax due to the Secretary of the Department of Finance 4
	1261	+	and Administration. 5
	1262	+	(d) A person who is delinquent more than ninety (90) days on a state 6
	1263	+	or local tax may not renew or obtain a permit issued under this subchapter 7
	1264	+	except upon certification that the permit holder has entered into a repayment 8
	1265	+	agreement with the Department of Finance and Administration and is current on 9
	1266	+	the payments. 10
	1267	+	(e) A permit holder who has unpaid fees, civil penalties, or an 11
	1268	+	unserved permit suspension may not transfer, sell, or give hemp -derived 12
	1269	+	product inventory of the business associated with the permit to a third party 13
	1270	+	until all fees and civil penalties are paid in full and all suspensions are 14
	1271	+	completed successfully, nor shall any third party be issued a new permit for 15
	1272	+	the business location. 16
	1273	+	(f) Each manufacturer, wholesaler, and retailer shall retain copies of 17
	1274	+	all invoices for the purchase or sale of any hemp -derived products for a 18
	1275	+	period of at least ten (10) years subject to examination by the Secretary of 19
	1276	+	the Department of Finance and Administration and the Director of Arkansas 20
	1277	+	Tobacco Control or their authorized agents upon demand at any time during 21
	1278	+	regular business hours. 22
	1279	+	(g) A retailer shall: 23
	1280	+	(1) Maintain copies of at least the last three hundred sixty -24
	1281	+	five (365) days of hemp -derived product invoices, which the retailer shall 25
	1282	+	provide immediately upon demand; 26
	1283	+	(2)(A) Make the invoices that are older than three hundred 27
	1284	+	sixty-five (365) days available upon demand at any time during normal 28
	1285	+	business hours in the retail store. 29
	1286	+	(B) Except as provided in subdivision (g)(2)(C) of this 30
	1287	+	section, an agent of Arkansas Tobacco Control may determine a reasonable time 31
	1288	+	frame for which invoices are to be provided under subdivision (g)(2)(A) of 32
	1289	+	this section. 33
	1290	+	(C) An invoice that is provided seventy -two (72) hours or 34
	1291	+	more after the demand shall not be considered for purposes of determining a 35
	1292	+	violation of this subsection; 36 SB533
	1293	+
	1294	+	35 03/20/2025 11:19:12 AM JMB498
	1295	+	(3) Retain invoices for all hemp -derived products in the retail 1
	1296	+	store even if the invoice for the hemp -derived products is older than three 2
	1297	+	(3) years; 3
	1298	+	(4) Maintain a copy of the signed server awareness forms for 4
	1299	+	each employee of the retailer who engages in the sale of hemp -derived 5
	1300	+	products, which the retailer shall provide immediately upon demand; 6
	1301	+	(5)(A) Maintain a copy of any complete transfer forms showing: 7
	1302	+	(i) The hemp-derived products that were transferred; 8
	1303	+	(ii) The permitted location from which the hemp -9
	1304	+	derived products were transferred; and 10
	1305	+	(iii) When the transfer occurred. 11
	1306	+	(B) A transfer form shall be completed contemporaneously 12
	1307	+	with the transfer and shall be provided immediately by the retailer upon 13
	1308	+	demand; and 14
	1309	+	(6) If any inventory was submitted with a permit application, 15
	1310	+	maintain a copy of the submitted inventory form, which the retailer shall 16
	1311	+	provide immediately upon demand. 17
	1312	+	(h) A wholesaler and manufacturer shall: 18
	1313	+	(1) Maintain ten (10) years of hemp -derived product invoices 19
	1314	+	that are available upon demand during normal business hours in the permitted 20
	1315	+	location; and 21
	1316	+	(2) Permit Arkansas Tobacco Control and authorized personnel of 22
	1317	+	Arkansas Tobacco Control to enter into and inspect stock of hemp -derived 23
	1318	+	products, and any documents and records relating to receipts and 24
	1319	+	disbursements of hemp -derived products. 25
	1320	+	(i) An invoice from a wholesaler to a retailer shall contain the name 26
	1321	+	or other identifying information of the wholesaler and the retailer. 27
	1322	+	(j)(1) A nonresident wholesaler shall also keep a record of all hemp -28
	1323	+	derived products purchased for distribution within this state. 29
	1324	+	(2) All books, records, and memoranda pertaining to the purchase 30
	1325	+	and sale of the hemp -derived products under subdivision (j)(1) of this 31
	1326	+	section shall be subject to inspection by Arkansas Tobacco Control. 32
	1327	+	(k) Authorized personnel of Arkansas Tobacco Control shall not release 33
	1328	+	to the Arkansas Tobacco Control Board or to the public any information 34
	1329	+	identifying customers of the manufacturer, wholesaler, or warehouse except 35
	1330	+	when necessary to notify the board of alleged violations of this subchapter. 36 SB533
	1331	+
	1332	+	36 03/20/2025 11:19:12 AM JMB498
	1333	+	1
	1334	+	20-56-407. Permits — Not transferable — Duplicates. 2
	1335	+	(a) A permit under this subchapter is not: 3
	1336	+	(1) Transferable to a subsequent owner or operator; or 4
	1337	+	(2) Transferable to a different physical location unless the 5
	1338	+	permit holder obtains permission from the Director of Arkansas Tobacco 6
	1339	+	Control. 7
	1340	+	(b) A person purchasing an existing permitted retail location may 8
	1341	+	operate under the selling owner's permit for no more than thirty (30) days 9
	1342	+	from the date of the sale. 10
	1343	+	(c) When a permit is lost by a permit holder, a duplicate permit may 11
	1344	+	be issued upon application and for a fee of five dollars ($5.00) when 12
	1345	+	sufficient proof has been given to the Director of Arkansas Tobacco Control. 13
	1346	+	14
	1347	+	20-56-408. Permits — Suspension or revocation. 15
	1348	+	(a) All permits issued under this subchapter shall be suspended or 16
	1349	+	revoked by the Director of Arkansas Tobacco Control for any violation of this 17
	1350	+	subchapter or the rules pertaining to this subchapter, subject to a hearing 18
	1351	+	before the Arkansas Tobacco Control Board at the next regularly scheduled 19
	1352	+	board meeting. 20
	1353	+	(b) The director may revoke all permits to deal in hemp -derived 21
	1354	+	products associated with any person who is convicted of or pleads guilty or 22
	1355	+	nolo contendere to criminally violating this subchapter, subject to a hearing 23
	1356	+	before the board at the next regularly scheduled board meeting. 24
	1357	+	25
	1358	+	20-56-409. Advertising prohibitions and packaging requirements. 26
	1359	+	(a) A hemp-derived product distributed or offered for sale in this 27
	1360	+	state shall include the following information on the product label or product 28
	1361	+	packaging: 29
	1362	+	(1) The name of the hemp -derived product manufacturer, whether 30
	1363	+	in-state or out-of-state, and distributor, whether in -state or out-of-state; 31
	1364	+	(2) Product labeling clearly showing that the product contains 32
	1365	+	material derived from hemp and not marijuana or medical marijuana; and 33
	1366	+	(3) Any other marking, words, statement, or symbol as required 34
	1367	+	by Arkansas Tobacco Control through rules. 35
	1368	+	(b) A person shall not advertise, market, or offer for sale in this 36 SB533
	1369	+
	1370	+	37 03/20/2025 11:19:12 AM JMB498
	1371	+	state any hemp-derived product by using, in the labeling or design of the 1
	1372	+	product, its packaging, or in its advertising or marketing materials, trade 2
	1373	+	dress, trademarks, branding, or other related imagery that: 3
	1374	+	(1) Imitates or replicates those of food brands or other related 4
	1375	+	products that are marketed to or are commonly associated with children or 5
	1376	+	minors, including without limitation breakfast cereal, cookies, juice drinks, 6
	1377	+	soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 7
	1378	+	(2) Depicts or signifies characters or symbols that are known to 8
	1379	+	a reasonable person to appeal primarily to or are commonly associated with 9
	1380	+	children or minors, including without limitation superheroes, cartoons or 10
	1381	+	cartoon characters, including anime characters, comic book characters, video 11
	1382	+	game characters, television show characters, movie characters, mythical 12
	1383	+	creatures, unicorns, or that otherwise incorporates related imagery or 13
	1384	+	scenery; or 14
	1385	+	(3) Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 15
	1386	+	or “cupcakes” or any variant of these terms, or any other term referencing a 16
	1387	+	type or brand of candy, cakes, pastries, or pies, including types or brands 17
	1388	+	of candy, cakes, pastries, or pies that do not include the words “candy”, 18
	1389	+	“candies”, “cake”, “cakes”, “pies”, or “cupcakes” in their names, labels, or 19
	1390	+	slogans. 20
	1391	+	21
	1392	+	20-56-410. Testing. 22
	1393	+	(a) All hemp-derived products sold in this state shall be tested by an 23
	1394	+	approved laboratory. 24
	1395	+	(b) An approved laboratory shall be an independent third -party 25
	1396	+	laboratory. 26
	1397	+	(c) A hemp-derived product sold in this state shall be tested for the 27
	1398	+	following and marked as to the hemp -derived product chemical makeup before 28
	1399	+	being sold to consumers: 29
	1400	+	(1) Cannabinoid profile; 30
	1401	+	(2) Solvents; 31
	1402	+	(3) Pesticides; 32
	1403	+	(4) Microbials; 33
	1404	+	(5) Heavy metals; and 34
	1405	+	(6) Any non-hemp-based substance. 35
	1406	+	(d) A hemp-derived product shall not be distributed or sold in this 36 SB533
	1407	+
	1408	+	38 03/20/2025 11:19:12 AM JMB498
	1409	+	state without a certificate of analysis from an approved laboratory that 1
	1410	+	confirms: 2
	1411	+	(1) The hemp-derived product was tested by an approved 3
	1412	+	laboratory; 4
	1413	+	(2) A tested representative sample of the hemp -derived product 5
	1414	+	contained a total delta -9 tetrahydrocannabinol concentration that did not 6
	1415	+	exceed three-tenths of one percent (0.3%) under this subchapter; and 7
	1416	+	(3) A detailed analysis and list of chemical makeup of the 8
	1417	+	tested hemp-derived product under subsection (c) of this section. 9
	1418	+	(e) Arkansas Tobacco Control may periodically sample, analyze, and 10
	1419	+	test any hemp-derived product located in this state. 11
	1420	+	(f) The Director of Arkansas Tobacco Control shall: 12
	1421	+	(1) Investigate and issue subpoenas to any permittee or approved 13
	1422	+	laboratory used by a permittee that the director has reasonable suspicion of 14
	1423	+	intentionally producing falsified test results on hemp -derived products; and 15
	1424	+	(2) Promulgate rules for the enforcement of this section and set 16
	1425	+	penalties for any violation of the rules. 17
	1426	+	18
	1427	+	20-56-411. Providing minors with hemp -derived products — Purchase, 19
	1428	+	use, or possession prohibited. 20
	1429	+	(a)(1) It is unlawful for any person to give, barter, or sell to a 21
	1430	+	minor a hemp-derived product. 22
	1431	+	(2) Except as provided in subdivision (a)(3) of this section, a 23
	1432	+	person who pleads guilty or nolo contendere to or is found guilty of 24
	1433	+	violating subdivision (a)(1) of this section is guilty of a Class A 25
	1434	+	misdemeanor. 26
	1435	+	(3) An employee or owner of a retail location permitted under 27
	1436	+	this subchapter who violates subdivision (a)(1) of this section while inside 28
	1437	+	the retail location upon conviction is subject to a fine not to exceed one 29
	1438	+	hundred dollars ($100) per violation. 30
	1439	+	(b)(1) It is unlawful for a minor to: 31
	1440	+	(A) Use or possess or to purchase or attempt to purchase a 32
	1441	+	hemp-derived product; or 33
	1442	+	(B) For the purpose of obtaining or attempting to obtain a 34
	1443	+	hemp-derived product, falsely represent himself or herself not to be a minor 35
	1444	+	by displaying proof of age that is false, fraudulent, or not actually proof 36 SB533
	1445	+
	1446	+	39 03/20/2025 11:19:12 AM JMB498
	1447	+	of the minor's age. 1
	1448	+	(2) Any hemp-derived product found in the possession of a minor 2
	1449	+	may be confiscated and destroyed by a law enforcement officer. 3
	1450	+	(c)(1) It is not an offense under subsection (b) of this section if: 4
	1451	+	(A) The minor was acting at the direction of an authorized 5
	1452	+	agent of Arkansas Tobacco Control to enforce or ensure compliance with laws 6
	1453	+	relating to the prohibition of the sale of hemp -derived product to minors; 7
	1454	+	(B) The minor was acting at the direction of an authorized 8
	1455	+	agent of the Division of Aging, Adult, and Behavioral Health Services of the 9
	1456	+	Department of Human Services to compile statistical data relating to the sale 10
	1457	+	of hemp-derived products to minors; 11
	1458	+	(C) The minor was acting at the request of a permit holder 12
	1459	+	to assist the permit holder by performing a check on the permit holder's own 13
	1460	+	retail business to see if the permit holder's employees would sell hemp -14
	1461	+	derived products to the minor; or 15
	1462	+	(D) The minor was acting as an agent of a retail permit 16
	1463	+	holder within the scope of employment. 17
	1464	+	(2) A minor performing activities under subdivision (c)(1) of 18
	1465	+	this section shall: 19
	1466	+	(A) Display the appearance of a minor; 20
	1467	+	(B) Have the written consent of the minor's parent or 21
	1468	+	guardian to perform the activity on file with the agency utilizing the minor; 22
	1469	+	and 23
	1470	+	(C)(i) Present a true and correct identification if asked. 24
	1471	+	(ii) Any failure on the part of a minor to provide 25
	1472	+	true and correct identification upon request is a defense to any action under 26
	1473	+	this section or a civil action under § 26 -57-256. 27
	1474	+	(d) Any person who sells hemp -derived products has the right to deny 28
	1475	+	the sale of any hemp -derived product to any person. 29
	1476	+	(e) It is unlawful for any person who has been issued a permit or a 30
	1477	+	license under this subchapter to fail to display in a conspicuous place a 31
	1478	+	sign indicating that the sale of hemp -derived products to or purchase or 32
	1479	+	possession of hemp-derived products by a minor is prohibited by law. 33
	1480	+	(f) It is unlawful for any manufacturer whose hemp -derived product is 34
	1481	+	distributed in this state and any person who has been issued a permit or 35
	1482	+	license under this subchapter to distribute a free sample of any hemp -derived 36 SB533
	1483	+
	1484	+	40 03/20/2025 11:19:12 AM JMB498
	1485	+	product, or any component of a hemp -derived product or coupon that entitles 1
	1486	+	the holder of the coupon to any free sample of any hemp -derived product, or 2
	1487	+	any component of a hemp -derived product: 3
	1488	+	(1) In or on any public street or sidewalk within five hundred 4
	1489	+	feet (500′) of any playground, public school, or other facility when the 5
	1490	+	playground, public school, or other facility is being used primarily by 6
	1491	+	minors for recreational, educational, or other purposes; or 7
	1492	+	(2) To any minor. 8
	1493	+	(g) It is unlawful for any person that has been issued a permit or 9
	1494	+	license under this subchapter to: 10
	1495	+	(1) Sell or distribute a hemp -derived product through a self -11
	1496	+	service display, a vending machine, or an order executed solely over the 12
	1497	+	internet or similar means; or 13
	1498	+	(2) Advertise or promote hemp -derived products in a manner that 14
	1499	+	is intended to appeal to children. 15
	1500	+	(h) Any retail permit holder or license holder who violates any 16
	1501	+	provision in this section is deemed guilty of a violation and subject to 17
	1502	+	penalties under § 26 -57-256. 18
	1503	+	(i)(1) A notice of an alleged violation of this section shall be given 19
	1504	+	to the holder of a retail permit or license or an agent of the holder within 20
	1505	+	ten (10) days of the alleged violation. 21
	1506	+	(2)(A) The notice under subdivision (i)(1) of this section shall 22
	1507	+	contain the date and time of the alleged violation. 23
	1508	+	(B)(i) The notice under subdivision (i)(1) of this section 24
	1509	+	shall also include either the name of the person making the alleged sale or 25
	1510	+	information reasonably necessary to determine the location in the store that 26
	1511	+	allegedly made the sale. 27
	1512	+	(ii) When appropriate, information under subdivision 28
	1513	+	(i)(2)(B)(i) of this section should include, but not be limited to, the: 29
	1514	+	(a) Cash register number of the sale in the 30
	1515	+	store; 31
	1516	+	(b) Physical location of the sale in the 32
	1517	+	store; and 33
	1518	+	(c) If possible, the lane or aisle number of 34
	1519	+	the sale in the store. 35
	1520	+	(j) Notwithstanding the provisions of subsection (h) of this section, 36 SB533
	1521	+
	1522	+	41 03/20/2025 11:19:12 AM JMB498
	1523	+	the court shall consider the following factors when reviewing a possible 1
	1524	+	violation: 2
	1525	+	(1) The business has adopted and enforced a written policy 3
	1526	+	against selling hemp -derived products to minors; 4
	1527	+	(2) The business has informed its employees of the applicable 5
	1528	+	laws regarding the sale of hemp -derived products to minors; 6
	1529	+	(3) The business has required employees to verify the age of a 7
	1530	+	customer attempting to purchase a hemp -derived product by way of photographic 8
	1531	+	identification; 9
	1532	+	(4) The business has established and imposed disciplinary 10
	1533	+	sanctions for noncompliance; and 11
	1534	+	(5) That the appearance of the purchaser of the hemp -derived 12
	1535	+	product was such that an ordinary prudent person would believe him or her to 13
	1536	+	be of legal age to make the purchase. 14
	1537	+	(k) A person convicted of violating any provision of this section 15
	1538	+	whose permit or license to distribute or sell a hemp -derived product is 16
	1539	+	suspended or revoked upon conviction shall surrender to the court any permit 17
	1540	+	or license to distribute or sell a hemp -derived product, and the court shall 18
	1541	+	transmit the permit or license to distribute or sell a hemp -derived product 19
	1542	+	to the Director of Arkansas Tobacco Control: 20
	1543	+	(1) To suspend or revoke the person's permit or license to 21
	1544	+	distribute or sell a hemp -derived product and to not renew the permit or 22
	1545	+	license; and 23
	1546	+	(2) Not to issue any new permit or license to that person for 24
	1547	+	the period of time determined by the court in accordance with this section. 25
	1548	+	26
	1549	+	20-56-412. Enforcement — Penalties. 27
	1550	+	(a) It is the duty of all state, county, and city officers to assist 28
	1551	+	Arkansas Tobacco Control in enforcing this subchapter. 29
	1552	+	(b) A person within the jurisdiction of this state who is not 30
	1553	+	permitted to sell hemp -derived products to retailers or consumers and who 31
	1554	+	sells, takes orders from, delivers, or causes to be delivered immediately or 32
	1555	+	in the future any hemp -derived products to retailers or consumers in the 33
	1556	+	State of Arkansas is guilty of a Class A misdemeanor. 34
	1557	+	(c) A person engaged in buying or selling hemp -derived products in 35
	1558	+	this state without first obtaining the proper permit upon conviction is 36 SB533
	1559	+
	1560	+	42 03/20/2025 11:19:12 AM JMB498
	1561	+	guilty of a Class A misdemeanor. 1
	1562	+	(d) This subchapter does not prohibit in any form the continuous 2
	1563	+	transportation through Arkansas of the plant Cannabis sativa L., and any part 3
	1564	+	of that plant, including the seeds thereof and all derivatives, extracts, 4
	1565	+	cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 5
	1566	+	not, with a total delta -9 tetrahydrocannabinol concentration of not more than 6
	1567	+	three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 7
	1568	+	hemp producer in another state to a licensed hemp handler in another state. 8
	1569	+	9
	1570	+	20-56-413. Rules. 10
	1571	+	The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 11
	1572	+	may promulgate rules for the proper enforcement of their powers and duties 12
	1573	+	under this subchapter, including without limitation the regulation of 13
	1574	+	processing, transportation, delivery, sale, and purchase of hemp -derived 14
	1575	+	products in accordance with this subchapter and the power to levy penalties 15
	1576	+	for violations of this subchapter. 16
	1577	+	17
	1578	+	SECTION 11. Arkansas Code § 26 -57-247(b), effective until the 18
	1579	+	contingency in Acts 2023, No. 629, § 17, is met, concerning those unstamped 19
	1580	+	and untaxed items that may be seized by the Director of Arkansas Tobacco 20
	1581	+	Control, is amended to read as follows: 21
	1582	+	(b) The Director of Arkansas Tobacco Control may seize and hold for 22
	1583	+	disposition of the courts or the Arkansas Tobacco Control Board all tobacco 23
	1584	+	products, vapor products, alternative nicotine products, or e-liquid 24
	1585	+	products, consumable hemp products, or intoxicating hemp products found in 25
	1586	+	the possession of a person dealing in, or a consumer of, tobacco products, 26
	1587	+	vapor products, alternative nicotine products, or e-liquid products, 27
	1588	+	consumable hemp products, or intoxicating hemp products if: 28
	1589	+	(1) Prima facie evidence exists that the full amount of excise 29
	1590	+	tax due on the tobacco products has not been paid to the Secretary of the 30
	1591	+	Department of Finance and Administration; 31
	1592	+	(2) Tobacco products, vapor products, alternative nicotine 32
	1593	+	products, or e-liquid products are in the possession of a wholesaler who does 33
	1594	+	not possess a current Arkansas wholesale permit; 34
	1595	+	(3) A retail establishment does not possess a current Arkansas 35
	1596	+	retail permit; 36 SB533
	1597	+
	1598	+	43 03/20/2025 11:19:12 AM JMB498
	1599	+	(4) The tobacco products, vapor products, alternative nicotine 1
	1600	+	products, or e-liquid products have been offered for sale to the public at 2
	1601	+	another location without a current Arkansas retail permit .; or 3
	1602	+	(5) Consumable hemp products or intoxicating hemp products are 4
	1603	+	possessed, sold, or offered for sale in violation of § 20 -56-501 et seq. 5
650	1604		6
651		-	20-56-507. Permits — Not transferable — Duplicates. 7
652		-	(a) A permit under this subchapter is not transferable to a: 8
653		-	(1) Subsequent owner or operator; or 9
654		-	(2) Different physical location unless the permit holder obtains 10
655		-	permission from the Director of Arkansas Tobacco Control. 11
656		-	(b) A person purchasing an existing permitted retail location may 12
657		-	operate under the selling owner’s permit for no more than thirty (30) days 13
658		-	from the date of the sale. 14
659		-	(c) When a permit is lost by a permit holder, a duplicate permit may 15
660		-	be issued upon application and for a fee of five dollars ($5.00) when 16
661		-	sufficient proof has been given to the director. 17
662		-	18
663		-	20-56-508. Permits — Suspension or revocation. 19
664		-	(a) All permits issued under this subchapter shall be suspended or 20
665		-	revoked by the Director of Arkansas Tobacco Control for any violation of this 21
666		-	subchapter or the rules pertaining to this subchapter, subject to a hearing 22
667		-	before the Arkansas Tobacco Control Board at the next regularly scheduled 23
668		-	board meeting. 24
669		-	(b) The director may revoke all permits to deal in consumable hemp 25
670		-	products associated with any person who is convicted of or pleads guilty or 26
671		-	nolo contendere to a criminal violation of this subchapter, subject to a 27
672		-	hearing before the board at the next regularly scheduled board meeting. 28
673		-	29
674		-	20-56-509. Advertising prohibitions and packaging requirements. 30
675		-	(a) A consumable hemp product distributed or offered for sale in this 31
676		-	state shall include the following information on the product label or product 32
677		-	packaging: 33
678		-	(1) The name of the consumable hemp product distributor or 34
679		-	consumable hemp product manufacturer, whether in -state or out-of-state; 35
680		-	(2) Product labeling clearly showing that the product contains 36 As Engrossed: S4/2/25 H4/8/25 SB533
681		-
682		-	18 04-08-2025 10:08:29 JMB498
683		-
684		-
685		-	material derived from hemp and not marijuana or medical marijuana; and 1
686		-	(3) Any other marking, words, statement, or symbol as required 2
687		-	by the Arkansas Tobacco Control Board through rules. 3
688		-	(b) A person shall not advertise, market, or offer for sale in this 4
689		-	state any consumable hemp product by using, in the labeling or design of the 5
690		-	product, its packaging, or in its advertising or marketing materials, trade 6
691		-	dress, trademarks, branding, or other related imagery that: 7
692		-	(1) Imitates or replicates those of food brands or other related 8
693		-	products that are marketed to or are commonly associated with children or 9
694		-	minors, including without limitation breakfast cereal, cookies, juice drinks, 10
695		-	soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 11
696		-	(2) Depicts or signifies characters or symbols that are known to 12
697		-	a reasonable person to appeal primarily to or are commonly associated with 13
698		-	children or minors, including without limitation superheroes, cartoons or 14
699		-	cartoon characters, including anime characters, comic book characters, video 15
700		-	game characters, television show characters, movie characters, mythical 16
701		-	creatures, unicorns, or that otherwise incorporates related imagery or 17
702		-	scenery; or 18
703		-	(3) Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 19
704		-	or “cupcakes” or any variant of these terms, or any other term referencing a 20
705		-	type or brand of candy, cakes, pastries, or pies, including types or brands 21
706		-	of candy, cakes, pastries, or pies that do not include the words “candy”, 22
707		-	“candies”, “cake”, “cakes”, "pastries", “pies”, or “cupcakes” in their names, 23
708		-	labels, or slogans. 24
709		-	25
710		-	20-56-510. Testing. 26
711		-	(a) All consumable hemp sold in this state shall be tested by an 27
712		-	approved laboratory. 28
713		-	(b) An approved laboratory shall be an independent third -party 29
714		-	laboratory. 30
715		-	(c) A consumable hemp product sold in this state shall be tested for 31
716		-	the following and marked as to the consumable hemp product chemical makeup 32
717		-	before being sold to consumers: 33
718		-	(1) Cannabinoid profile; 34
719		-	(2) Solvents; 35
720		-	(3) Pesticides; 36 As Engrossed: S4/2/25 H4/8/25 SB533
721		-
722		-	19 04-08-2025 10:08:29 JMB498
723		-
724		-
725		-	(4) Microbials; 1
726		-	(5) Heavy metals; and 2
727		-	(6) Any non-hemp-based substance. 3
728		-	(d) A consumable hemp product shall not be distributed or sold in this 4
729		-	state without a certificate of analysis from an approved laboratory that 5
730		-	confirms: 6
731		-	(1) The consumable hemp product was tested by an approved 7
732		-	laboratory; 8
733		-	(2) A tested representative sample of the consumable hemp 9
734		-	product contained a total delta -9 tetrahydrocannabinol concentration that did 10
735		-	not exceed three-tenths of one percent (0.3%) under this subchapter; and 11
736		-	(3) A detailed analysis and list of the chemical makeup of the 12
737		-	tested consumable hemp product under subsection (c) of this section. 13
738		-	(e) The Arkansas Tobacco Control Board may periodically sample, 14
739		-	analyze, and test any consumable hemp product located in this state. 15
740		-	(f) The Director of Arkansas Tobacco Control shall: 16
741		-	(1) Investigate and issue subpoenas to any permittee or approved 17
742		-	laboratory used by a permittee that the director has reasonable suspicion of 18
743		-	intentionally producing falsified test results on consumable hemp; and 19
744		-	(2) Promulgate rules for the enforcement of this section and set 20
745		-	penalties for any violation of the rules. 21
746		-	22
747		-	20-56-511. Providing minors with consumable hemp products — Purchase, 23
748		-	use, or possession prohibited. 24
749		-	(a)(1) It is unlawful for any person to give, barter, or sell to a 25
750		-	minor a consumable hemp product. 26
751		-	(2) Except as provided in subdivision (a)(3) of this section, a 27
752		-	person who pleads guilty or nolo contendere to or is found guilty of 28
753		-	violating subdivision (a)(1) of this section is guilty of a Class A 29
754		-	misdemeanor. 30
755		-	(3) An employee or owner of a retail location permitted under 31
756		-	this subchapter who violates subdivision (a)(1) of this section while inside 32
757		-	the retail location upon conviction is subject to a fine not to exceed one 33
758		-	hundred dollars ($100) per violation. 34
759		-	(b)(1) It is unlawful for a minor to: 35
760		-	(A) Use or possess or to purchase or attempt to purchase a 36 As Engrossed: S4/2/25 H4/8/25 SB533
761		-
762		-	20 04-08-2025 10:08:29 JMB498
763		-
764		-
765		-	consumable hemp product; or 1
766		-	(B) For the purpose of obtaining or attempting to obtain a 2
767		-	consumable hemp product, falsely represent himself or herself not to be a 3
768		-	minor by displaying proof of age that is false, fraudulent, or not actually 4
769		-	proof of the minor’s age. 5
770		-	(2) Any consumable hemp product found in the possession of a 6
771		-	minor may be confiscated and destroyed by a law enforcement officer. 7
772		-	(c)(1) It is not an offense under subsection (b) of this section if: 8
773		-	(A) The minor was acting at the direction of an authorized 9
774		-	agent of the Arkansas Tobacco Control Board to enforce or ensure compliance 10
775		-	with laws relating to the prohibition of the sale of consumable hemp product 11
776		-	to minors; 12
777		-	(B) The minor was acting at the direction of an authorized 13
778		-	agent of the Division of Aging, Adult, and Behavioral Health Services of the 14
779		-	Department of Human Services to compile statistical data relating to the sale 15
780		-	of consumable hemp products to minors; 16
781		-	(C) The minor was acting at the request of a permit holder 17
782		-	to assist the permit holder by performing a check on the permit holder’s own 18
783		-	retail business to see if the permit holder’s employees would sell consumable 19
784		-	hemp products to the minor; or 20
785		-	(D) The minor was acting as an agent of a retail permit 21
786		-	holder within the scope of employment. 22
787		-	(2) A minor performing activities under subdivision (c)(1) of 23
788		-	this section shall: 24
789		-	(A) Display the appearance of a minor; 25
790		-	(B) Have the written consent of the minor’s parent or 26
791		-	guardian to perform the activity on file with the agency utilizing the minor; 27
792		-	and 28
793		-	(C)(i) Present a true and correct identification if asked. 29
794		-	(ii) Any failure on the part of a minor to provide 30
795		-	true and correct identification upon request is a defense to any action under 31
796		-	this section or a civil action under § 26 -57-256. 32
797		-	(d) Any person who sells consumable hemp products has the right to 33
798		-	deny the sale of any consumable hemp product to any person. 34
799		-	(e) It is unlawful for any person who has been issued a permit or a 35
800		-	license under this subchapter to fail to display in a conspicuous place a 36 As Engrossed: S4/2/25 H4/8/25 SB533
801		-
802		-	21 04-08-2025 10:08:29 JMB498
803		-
804		-
805		-	sign indicating that the sale of consumable hemp products to or purchase or 1
806		-	possession of consumable hemp products by a minor is prohibited by law. 2
807		-	(f) It is unlawful for any manufacturer whose consumable hemp product 3
808		-	is distributed in this state and any person who has been issued a permit or 4
809		-	license under this subchapter to distribute a free sample of any consumable 5
810		-	hemp product or any component of a consumable hemp product or coupon that 6
811		-	entitles the holder of the coupon to any free sample of any consumable hemp 7
812		-	product or any component of a consumable hemp product: 8
813		-	(1) In or on any public street or sidewalk within five hundred 9
814		-	feet (500’) of any playground, public school, or other facility when the 10
815		-	playground, public school, or other facility is being used primarily by 11
816		-	minors for recreational, educational, or other purposes; or 12
817		-	(2) To any minor. 13
818		-	(g) It is unlawful for any person that has been issued a permit or 14
819		-	license under this subchapter to: 15
820		-	(1) Sell or distribute a consumable hemp product through a self -16
821		-	service display, a vending machine, or an order executed solely over the 17
822		-	internet or similar means; or 18
823		-	(2) Advertise or promote consumable hemp in a manner that is 19
824		-	intended to appeal to minors. 20
825		-	(h) Any retail permit holder or license holder who violates any 21
826		-	provision in this section is deemed guilty of a violation and subject to 22
827		-	penalties under § 26 -57-256. 23
828		-	(i)(1) A notice of an alleged violation of this section shall be given 24
829		-	to the holder of a retail permit or license or an agent of the holder within 25
830		-	ten (10) days of the alleged violation. 26
831		-	(2) The notice under subdivision (i)(1) of this section shall: 27
832		-	(A) Contain the date and time of the alleged violation; 28
833		-	and 29
834		-	(B)(i) Include either the name of the person making the 30
835		-	alleged sale or information reasonably necessary to determine the location in 31
836		-	the store that allegedly made the sale. 32
837		-	(ii) When appropriate, information under subdivision 33
838		-	(i)(2)(B)(i) of this section shall include without limitation: 34
839		-	(a) The cash register number of the sale in 35
840		-	the store; 36 As Engrossed: S4/2/25 H4/8/25 SB533
841		-
842		-	22 04-08-2025 10:08:29 JMB498
843		-
844		-
845		-	(b) The physical location of the sale in the 1
846		-	store; and 2
847		-	(c) If possible, the lane or aisle number of 3
848		-	the sale in the store. 4
849		-	(j) Notwithstanding the provisions of subsection (h) of this section, 5
850		-	the court shall consider the following factors when reviewing a possible 6
851		-	violation: 7
852		-	(1) The business has adopted and enforced a written policy 8
853		-	against selling consumable hemp products to minors; 9
854		-	(2) The business has informed its employees of the applicable 10
855		-	laws regarding the sale of consumable hemp product to minors; 11
856		-	(3) The business has required employees to verify the age of a 12
857		-	customer attempting to purchase a consumable hemp product by way of 13
858		-	photographic identification; 14
859		-	(4) The business has established and imposed disciplinary 15
860		-	sanctions for noncompliance; and 16
861		-	(5) The appearance of the purchaser of the consumable hemp 17
862		-	product was such that an ordinary prudent person would believe him or her to 18
863		-	be of legal age to make the purchase. 19
864		-	(k) A person convicted of violating any provision of this section 20
865		-	whose permit or license to distribute or sell a consumable hemp product is 21
866		-	suspended or revoked upon conviction shall surrender to the court any permit 22
867		-	or license to distribute or sell a consumable hemp product, and the court 23
868		-	shall transmit the permit or license to distribute or sell a consumable hemp 24
869		-	product to the Director of Arkansas Tobacco Control: 25
870		-	(1) To suspend or revoke the person’s permit or license to 26
871		-	distribute or sell a consumable hemp product and to not renew the permit or 27
872		-	license; and 28
873		-	(2) Not to issue any new permit or license to that person for 29
874		-	the period of time determined by the court in accordance with this section. 30
875		-	31
876		-	20-56-512. Enforcement — Penalties. 32
877		-	(a) It is the duty of all state, county, and city officials to assist 33
878		-	the Arkansas Tobacco Control Board in enforcing this subchapter. 34
879		-	(b) A person within the jurisdiction of this state who is not 35
880		-	permitted to sell consumable hemp products to retailers or consumers and who 36 As Engrossed: S4/2/25 H4/8/25 SB533
881		-
882		-	23 04-08-2025 10:08:29 JMB498
883		-
884		-
885		-	sells, takes orders from, delivers, or causes to be delivered immediately or 1
886		-	in the future any consumable hemp to retailers or consumers in this state 2
887		-	upon conviction is guilty of a Class A misdemeanor. 3
888		-	(c) A person engaged in buying or selling consumable hemp products in 4
889		-	this state without first obtaining the proper permit upon conviction is 5
890		-	guilty of a Class A misdemeanor. 6
891		-	(d) This subchapter does not prohibit the interstate transportation or 7
892		-	shipment through this state of the plant Cannabis sativa L., and any part of 8
893		-	that plant, including the seeds thereof and all derivatives, extracts, 9
894		-	cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 10
895		-	not, with a total delta -9 tetrahydrocannabinol concentration of not more than 11
896		-	three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 12
897		-	hemp producer in another state to a licensed hemp handler in another state. 13
898		-	14
899		-	20-56-513. Prohibitions. 15
900		-	(a) It shall be unlawful for any person to: 16
901		-	(1) Violate this subchapter or any rules promulgated under this 17
902		-	subchapter; 18
903		-	(2) Manufacture, produce, or market any product derived from 19
904		-	cannabis for sale within this state, except as authorized under this 20
905		-	subchapter and the Arkansas Medical Marijuana Amendment of 2016, Arkansas 21
906		-	Constitution, Amendment 98; 22
907		-	(3) Sell or distribute any product derived from cannabis within 23
908		-	this state or to consumers of this state, except as authorized under this 24
909		-	subchapter and the Arkansas Medical Marijuana Amendment of 2016, Arkansas 25
910		-	Constitution, Amendment 98; 26
911		-	(4) Manufacture, distribute, sell, or market a consumable hemp 27
912		-	product that is not reported to the Arkansas Tobacco Control Board as 28
913		-	required by this subchapter; 29
914		-	(5) Manufacture, produce, market, or sell any intoxicating hemp 30
915		-	product; 31
916		-	(6) Sell any consumable hemp product to a minor; or 32
917		-	(7) Market or promote a consumable hemp product or other hemp 33
918		-	product: 34
919		-	(A) For an intoxicating effect; 35
920		-	(B) As containing tetrahydrocannabinol; or 36 As Engrossed: S4/2/25 H4/8/25 SB533
921		-
922		-	24 04-08-2025 10:08:29 JMB498
923		-
924		-
925		-	(C) With unlawful drug or health claims. 1
926		-	(b) Any person that purposely, knowingly, or recklessly violates this 2
927		-	subchapter relating to hemp production, manufacture, sale, distribution, 3
928		-	marketing, or processing shall be guilty of a misdemeanor and, upon 4
929		-	conviction of the violation, shall be fined in an amount not to exceed five 5
930		-	thousand dollars ($5,000), or sentenced to imprisonment in the county jail 6
931		-	for not more than one (1) year, or both. 7
932		-	(c) Notwithstanding subsection (b) of this section, any person that 8
933		-	purposefully, recklessly, or knowingly manufactures, markets, or sells an 9
934		-	intoxicating hemp product shall be guilty of a felony. 10
935		-	(d) Any violation of this subchapter is a deceptive and unconscionable 11
936		-	trade practice under the Deceptive Trade Practices Act, § 4 -88-101 et seq., 12
937		-	and all remedies, penalties, and authority granted to the Attorney General 13
938		-	under the Deceptive Trade Practices Act, § 4 -88-101 et seq., shall be 14
939		-	available to the Attorney General for the enforcement of this subchapter. 15
940		-	(e) The prosecuting attorney in the county where the alleged crime was 16
941		-	committed shall also have full authority to enforce this subchapter. 17
942		-	(f) This subchapter does not prohibit the bringing of a civil action 18
943		-	against a violator of this subchapter by an individual harmed by the 19
944		-	violator’s acts or omissions. 20
945		-	21
946		-	20-56-514. Consumable hemp product directory. 22
947		-	(a) By December 1, 2025, and annually thereafter, every licensed 23
948		-	consumable hemp manufacturer of a consumable hemp product that is sold for 24
949		-	retail sale in this state, whether the consumable hemp product manufacturer 25
950		-	is located in or outside this state, shall execute and deliver to the 26
951		-	Arkansas Tobacco Control Board a certification, under penalty of perjury, on 27
952		-	a form and in a manner prescribed by the board, that the manufacturer is 28
953		-	compliant with this subchapter. 29
954		-	(b) The certification form shall separately list each brand name, 30
955		-	category, product name, and flavor for each consumable hemp product that is 31
956		-	sold in this state. 32
957		-	(c)(1) On and after December 1, 2025, the board shall maintain and 33
958		-	make publicly available on its official website a directory that lists all 34
959		-	consumable hemp product manufacturers, brand names, categories, product 35
960		-	names, and flavors for which certification forms have been submitted and 36 As Engrossed: S4/2/25 H4/8/25 SB533
961		-
962		-	25 04-08-2025 10:08:29 JMB498
963		-
964		-
965		-	approved by the board and shall update the directory at least monthly to 1
966		-	ensure accuracy. 2
967		-	(2) The board shall establish a process to provide licensed 3
968		-	consumable hemp retailers, consumable hemp distributors, and consumable hemp 4
969		-	wholesalers notice of the initial publication of the directory and changes 5
970		-	made to the directory in the prior month. 6
971		-	(d) After ninety (90) calendar days following publication of the 7
972		-	directory, consumable hemp products not listed in the directory and intended 8
973		-	for retail sale in this state are subject to seizure, forfeiture, and 9
974		-	destruction, and shall not be purchased or sold for retail sale in this 10
975		-	state. 11
976		-	(e) Any person who sells or offers for sale a consumable hemp product 12
977		-	for retail sale in this state that is not included in the directory shall be 13
978		-	subject to a civil penalty of up to five hundred dollars ($500) for each 14
979		-	individual consumable hemp product offered for sale in violation of this 15
980		-	section until the offending consumable hemp product is removed from the 16
981		-	market or until the offending consumable hemp product is properly listed on 17
982		-	the directory. 18
983		-	(f) The civil penalty collected under this section shall be deposited 19
984		-	into the State Treasury as special revenues to the credit of the Arkansas 20
985		-	Tobacco Control Revenue Fund. 21
986		-	22
987		-	20-56-515. Notice required at point of sale — Penalties. 23
988		-	(a) A person shall not sell or offer for sale a consumable hemp 24
989		-	product in this state unless a clearly visible notice is posted at the 25
990		-	location where the consumable hemp product is available for purchase. 26
991		-	(b) The notice described under subsection (a) of this section shall 27
992		-	state that: 28
993		-	(1) A consumable hemp product contains tetrahydrocannabinol; 29
994		-	(2) Women who are pregnant or breastfeeding should not use 30
995		-	products that contain tetrahydrocannabinol due to the risk of birth defects 31
996		-	and other developmental defects; and 32
997		-	(3) A minor shall not purchase a consumable hemp product. 33
998		-	(c)(1) In addition to the penalties under this subchapter and the 34
999		-	Arkansas Industrial Hemp Production Act, § 2 -15-501 et seq., any person who 35
1000		-	sells or offers for sale a consumable hemp product without a notice as 36 As Engrossed: S4/2/25 H4/8/25 SB533
1001		-
1002		-	26 04-08-2025 10:08:29 JMB498
1003		-
1004		-
1005		-	described in this section shall be fined not less than five hundred dollars 1
1006		-	($500) for the first offense and not more than one thousand dollars ($1,000) 2
1007		-	for each subsequent offense. 3
1008		-	(2) Each violation, and every day in which a violation occurs, 4
1009		-	constitutes a separate violation. 5
1010		-	(d) Fines collected under this section shall be deposited into the 6
1011		-	State Treasury as special revenues to the credit of the Arkansas Tobacco 7
1012		-	Control Revenue Fund. 8
1013		-	9
1014		-	20-56-516. Rules. 10
1015		-	The Director of Arkansas Tobacco Control may promulgate rules for the 11
1016		-	proper enforcement of his or her powers and duties under this subchapter, 12
1017		-	including without limitation the regulation of processing, transportation, 13
1018		-	delivery, sale, and purchase of consumable hemp products in accordance with 14
1019		-	this subchapter and the power to levy penalties for violations of this 15
1020		-	subchapter. 16
1021		-	17
1022		-	SECTION 11. Arkansas Code Title 20, Chapter 56, Subchapter 4, as 18
1023		-	amended by Acts 2025, No. 176, § 2, effective if the contingency in Acts 19
1024		-	2023, No. 629, § 17, is met, is repealed. 20
1025		-	Subchapter 4 — Hemp-Derived Products 21
1026		-	22
1027		-	20-56-401. Purpose. 23
1028		-	It is the intent of this subchapter to provide regulation of certain 24
1029		-	hemp-derived products to: 25
1030		-	(1) Prevent the sale and use of illicit hemp -based products 26
1031		-	within Arkansas; and 27
1032		-	(2) Protect and promote the public health and welfare of the 28
1033		-	residents of this state. 29
1034		-	30
1035		-	20-56-402. Definitions. 31
1036		-	As used in this subchapter: 32
1037		-	(1) “Annual” or “annually” means the fiscal year from July 1 33
1038		-	through the next June 30; 34
1039		-	(2) “Approved laboratory” means a laboratory that is accredited 35
1040		-	by the National Institute on Drug Abuse, the National Environmental 36 As Engrossed: S4/2/25 H4/8/25 SB533
1041		-
1042		-	27 04-08-2025 10:08:29 JMB498
1043		-
1044		-
1045		-	Laboratory Accreditation Conference, the International Organization for 1
1046		-	Standardization, or a similar accrediting entity as determined by Arkansas 2
1047		-	Tobacco Control and that has been approved by the Director of Arkansas 3
1048		-	Tobacco Control specifically for the testing of hemp -derived product; 4
1049		-	(3) “Consumer” means a member of the public at large; 5
1050		-	(4) “Days” means calendar days unless otherwise specified; 6
1051		-	(5) “Finished product” means a product intended for consumer use 7
1052		-	to be sold at retail; 8
1053		-	(6) “Hemp” means the plant Cannabis sativa and any part of the 9
1054		-	plant, including the seeds of the plant, that contains a delta -9 10
1055		-	tetrahydrocannabinol concentration of three -tenths of one percent (0.3%) or 11
1056		-	less on a dry-weight basis, and all derivatives, extracts, cannabinoids, 12
1057		-	isomers, acids, salts, and salts of isomers, whether growing or not; 13
1058		-	(7) “Hemp-derived e-liquid product” means a liquid hemp -derived 14
1059		-	product that contains hemp that is inhaled when using a vapor product, and 15
1060		-	that may or may not include without limitation propylene glycol, vegetable 16
1061		-	glycerin, and flavorings; 17
1062		-	(8)(A) “Hemp-derived product” means a product intended for any 18
1063		-	form of human consumption, including consumption by vapor inhalation, or a 19
1064		-	component of a product, that is derived from hemp, including all derivatives, 20
1065		-	extracts, cannabinoids, isomers, acids, salts, and salts of isomers, and any 21
1066		-	product made from such derivatives, and that contains greater than three -22
1067		-	tenths of one percent (0.3%) tetrahydrocannabinol. 23
1068		-	(B) “Hemp-derived product” includes a hemp -derived e-24
1069		-	liquid product and a vapor product. 25
1070		-	(C) “Hemp-derived product” does not include: 26
1071		-	(i) A product intended for animal consumption or 27
1072		-	use; 28
1073		-	(ii) A cosmetic as defined by § 20 -56-202; 29
1074		-	(iii) Any marijuana, medical marijuana, or other 30
1075		-	cannabis product containing delta -9 tetrahydrocannabinol greater than three -31
1076		-	tenths of one percent (0.3%) on a dry -weight basis as administered, licensed, 32
1077		-	and otherwise regulated by the Alcoholic Beverage Control Division, the 33
1078		-	Medical Marijuana Commission, and the Department of Health under the Arkansas 34
1079		-	Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; 35
1080		-	(iv) A raw hemp product, including any intact plant, 36 As Engrossed: S4/2/25 H4/8/25 SB533
1081		-
1082		-	28 04-08-2025 10:08:29 JMB498
1083		-
1084		-
1085		-	flower, buds, leaves, or stems; 1
1086		-	(v) A drug in the form for which an application 2
1087		-	filed in accordance with 21 U.S.C. § 355 is approved by the United States 3
1088		-	Food and Drug Administration; 4
1089		-	(vi) A dietary supplement as defined by the Federal 5
1090		-	Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or 6
1091		-	(vii) A fabric, textile, cordage, fiber, fuel, paper, 7
1092		-	construction material, plastic, seed, seed meal, and seed oil; 8
1093		-	(9)(A) “Manufacturer” means a person that manufactures, 9
1094		-	fabricates, assembles, or processes a hemp -derived product, including without 10
1095		-	limitation federally licensed importers and federally licensed distributors 11
1096		-	that deal in hemp-derived products. 12
1097		-	(B) “Manufacturer” includes: 13
1098		-	(i) A sales entity affiliate of the manufacturer or 14
1099		-	any other entity representing the manufacturer with regard to the sale of 15
1100		-	hemp-derived products produced by the manufacturer to wholesalers or 16
1101		-	permitted retailers; and 17
1102		-	(ii) A person that mixes, compounds, extracts, 18
1103		-	infuses, blends, processes, repackages, or resizes hemp -derived products 19
1104		-	including the extraction of cannabinoids from hemp biomass. 20
1105		-	(C) “Manufacturer” does not include a person who engages 21
1106		-	in the agricultural production of hemp, such as growing, planting, and 22
1107		-	harvesting of raw hemp biomass regulated by the State Plant Board; 23
1108		-	(10) “Minor” means a person who is under twenty -one (21) years of 24
1109		-	age; 25
1110		-	(11) “Person” means an individual, retailer, wholesaler, 26
1111		-	manufacturer, firm, association, company, partnership, limited liability 27
1112		-	company, corporation, joint -stock company, club, agency, syndicate, the State 28
1113		-	of Arkansas, county, municipal corporation or other political subdivision of 29
1114		-	the state, receiver, trustee, fiduciary, or trade association; 30
1115		-	(12) “Place of business” means the physical location: 31
1116		-	(A) Where orders for hemp -derived products are taken or 32
1117		-	received or where hemp -derived products are sold; and 33
1118		-	(B) That is on file with Arkansas Tobacco Control; 34
1119		-	(13) “Retailer” means a person that purchases hemp -derived 35
1120		-	products from permitted wholesalers for the purpose of selling the hemp -36 As Engrossed: S4/2/25 H4/8/25 SB533
1121		-
1122		-	29 04-08-2025 10:08:29 JMB498
1123		-
1124		-
1125		-	derived products in person and over the counter at retail to consumers; 1
1126		-	(14)(A) “Sale” or “sell” means a transfer, exchange, or 2
1127		-	barter in any manner or by any means for any consideration, including 3
1128		-	distributing or shipping hemp -derived product in connection with a sale. 4
1129		-	(B) A sale “in” or “into” a state refers to the state in 5
1130		-	which the destination point of the hemp -derived product is located in the 6
1131		-	sale without regard to where title was transferred. 7
1132		-	(C) A sale “from” a state refers to the sale of a hemp -8
1133		-	derived product that is located in that state to the destination in question 9
1134		-	without regard to where title was transferred; 10
1135		-	(15) “Self-service display” means a display: 11
1136		-	(A) That contains a hemp -derived product, or any component 12
1137		-	of a hemp-derived product; 13
1138		-	(B) That is located in an area where customers are 14
1139		-	permitted; and 15
1140		-	(C) In which the hemp -derived product, or any component of 16
1141		-	a hemp-derived product, is readily accessible to a customer without the 17
1142		-	assistance of a salesperson; 18
1143		-	(16) “Tetrahydrocannabinol” means a compound that is the natural, 19
1144		-	primary active cannabinoid substance or its equivalent contained in the plant 20
1145		-	of the genus cannabis or in the resinous extracts of the plant, including 21
1146		-	derivatives or isomers derived from such cannabinoids; 22
1147		-	(17) “Vapor product” means hemp -derived product that is an 23
1148		-	electronic oral device of any size or shape that contains a vapor of hemp or 24
1149		-	hemp-derived e-liquid product that when used or inhaled simulates smoking, 25
1150		-	regardless of whether a visible vapor is produced, including without 26
1151		-	limitation a device that: 27
1152		-	(A) Is composed of a heating element, battery, electronic 28
1153		-	circuit, chemical process, mechanical device, or a combination of heating 29
1154		-	element, battery, electronic circuit, chemical process, or mechanical device; 30
1155		-	(B) Works in combination with a cartridge, other 31
1156		-	container, or liquid delivery device containing hemp or hemp -derived e-liquid 32
1157		-	product and manufactured for use with vapor products; 33
1158		-	(C) Is manufactured, distributed, marketed, or sold as any 34
1159		-	type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 35
1160		-	other produced name or descriptor; and 36 As Engrossed: S4/2/25 H4/8/25 SB533
1161		-
1162		-	30 04-08-2025 10:08:29 JMB498
1163		-
1164		-
1165		-	(D) Does not include a product regulated as a drug or 1
1166		-	device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 2
1167		-	as it existed on January 1, 2015; 3
1168		-	(18) “Warehouse” means a place where hemp -derived products are 4
1169		-	stored for another person and to or from which place the hemp -derived 5
1170		-	products are shipped or delivered upon order by the owner of the hemp -derived 6
1171		-	products, to the warehouse; and 7
1172		-	(19) “Wholesaler” means a person other than a manufacturer or a 8
1173		-	person owned or operated by a manufacturer that: 9
1174		-	(A) Does business within the state; 10
1175		-	(B) Purchases hemp-derived products from any source; 11
1176		-	(C) Distributes or sells the hemp -derived products to 12
1177		-	other wholesalers, or retailers; and 13
1178		-	(D) Does not distribute or sell the hemp -derived products 14
1179		-	at retail to consumers. 15
1180		-	16
1181		-	20-56-403. Construction. 17
1182		-	(a) A hemp-derived product shall not be delivered, sold, bought, or 18
1183		-	used in this state except in conformity with all applicable laws and 19
1184		-	regulations, including this subchapter and any rules promulgated under this 20
1185		-	subchapter. 21
1186		-	(b) A person shall not sell a hemp -derived product without being 22
1187		-	permitted by Arkansas Tobacco Control. 23
1188		-	(c) A product intended for human consumption or inhalation that is 24
1189		-	derived from hemp and contains tetrahydrocannabinol shall not be permitted or 25
1190		-	allowed under the laws of this state, other than hemp-derived products if 26
1191		-	otherwise legal under state law. 27
1192		-	(d)(1) A hemp-derived product shall not be combined with or contain 28
1193		-	any of the following: 29
1194		-	(A) Any liquid, hydrocolloid, animal -based substance, 30
1195		-	thickener, sweetener, flavoring, synthetic product, propylene glycol, 31
1196		-	vegetable glycerin, or other non -hemp-derived substance; 32
1197		-	(B) Nicotine or tobacco; or 33
1198		-	(C) Any amount of tetrahydrocannabinol as to create a 34
1199		-	danger of misuse, overdose, accidental overconsumption, inaccurate dosage, or 35
1200		-	other risk to the public. 36 As Engrossed: S4/2/25 H4/8/25 SB533
1201		-
1202		-	31 04-08-2025 10:08:29 JMB498
1203		-
1204		-
1205		-	(2) Medical devices, prescription drugs, or drugs otherwise 1
1206		-	approved by the United States Food and Drug Administration shall not be 2
1207		-	considered hemp-derived products. 3
1208		-	(e) The business of handling, receiving, possessing, storing, 4
1209		-	distributing, taking orders for, soliciting orders of, selling, offering for 5
1210		-	sale, and dealing in, through sale, barter, or exchange, hemp -derived 6
1211		-	products is declared to be a privilege under the Arkansas Constitution and 7
1212		-	laws of the State of Arkansas. 8
1213		-	9
1214		-	20-56-404. Permits. 10
1215		-	(a)(1) Each person listed in this section, before commencing business, 11
1216		-	or if already in business, before continuing business, shall pay an annual 12
1217		-	privilege fee and secure a permit from the Director of Arkansas Tobacco 13
1218		-	Control. 14
1219		-	(2) A person purchasing an existing permitted retail location 15
1220		-	may, with the permission of the seller and Arkansas Tobacco Control, operate 16
1221		-	under the selling owner's permit for no more than thirty (30) days from the 17
1222		-	date of the sale. 18
1223		-	(b)(1) In addition to securing a permit under subsection (a) of this 19
1224		-	section, a manufacturer whose products are sold in this state shall register 20
1225		-	with the Secretary of the Department of Finance and Administration. 21
1226		-	(2) A wholesaler of hemp -derived products shall secure the 22
1227		-	proper wholesale permit. 23
1228		-	(3) Every retailer of hemp -derived products that operates a 24
1229		-	place of business shall secure the proper retail permit. 25
1230		-	(c)(1) Permits shall be issued as follows: 26
1231		-	(A) A permit for a sole proprietorship is issued in the 27
1232		-	owner's name and in the fictitious business name, if any; 28
1233		-	(B)(i) A permit for a partnership or limited liability 29
1234		-	company is issued in the name of: 30
1235		-	(a) The managing partner or managing member; 31
1236		-	and 32
1237		-	(b) The partnership or limited liability 33
1238		-	company. 34
1239		-	(ii) If the managing partner or managing member of a 35
1240		-	limited liability company is a partnership, limited liability company, or 36 As Engrossed: S4/2/25 H4/8/25 SB533
1241		-
1242		-	32 04-08-2025 10:08:29 JMB498
1243		-
1244		-
1245		-	corporation, then the permit shall be issued in the name of: 1
1246		-	(a) The president or chief executive officer; 2
1247		-	and 3
1248		-	(b) The partnership or limited liability 4
1249		-	company; and 5
1250		-	(C) A permit for a publicly traded or nonpublicly traded 6
1251		-	corporation is issued in the name of the president or chief executive officer 7
1252		-	of the corporation and in the name of the corporation. 8
1253		-	(2) It is a violation for a permitted entity not to provide 9
1254		-	written notification to the director within thirty (30) days of a change in 10
1255		-	the following: 11
1256		-	(A) The managing partner, limited liability company 12
1257		-	managing member, or president or chief executive officer of a corporation, 13
1258		-	partnership, or limited liability company; or 14
1259		-	(B) The stockholders effecting twenty -five percent (25%) 15
1260		-	or more of the total voting shares of a nonpublicly traded corporation. 16
1261		-	(d)(1) When an entity transfers a business permitted under this 17
1262		-	subchapter, the entity to which the business is transferred: 18
1263		-	(A) Shall apply for a new permit under this subchapter; 19
1264		-	(B) May be issued a new permit under this subchapter; and 20
1265		-	(C) May operate under the selling entity's permit for no 21
1266		-	more than thirty (30) days from the date of the sale. 22
1267		-	(2) When a partnership or limited liability company permitted 23
1268		-	under this subchapter changes, removes, or replaces the managing partner, 24
1269		-	managing member, president, or chief executive officer: 25
1270		-	(A) The existing permit issued under this subchapter is 26
1271		-	void; and 27
1272		-	(B) The partnership or limited liability company: 28
1273		-	(i) Shall apply for a new permit under this 29
1274		-	subchapter; 30
1275		-	(ii) May be issued a new permit under this 31
1276		-	subchapter; and 32
1277		-	(iii) May operate under the voided permit for no more 33
1278		-	than thirty (30) days from the date of the change, removal, or replacement of 34
1279		-	the managing partner, managing member, president, or chief executive officer. 35
1280		-	(3) When a nonpublicly traded corporation permitted under this 36 As Engrossed: S4/2/25 H4/8/25 SB533
1281		-
1282		-	33 04-08-2025 10:08:29 JMB498
1283		-
1284		-
1285		-	subchapter changes, removes, or replaces the president or chief executive 1
1286		-	officer named on the permit or changes, removes, or replaces a stockholder 2
1287		-	who owns fifty percent (50%) or more of the total voting shares of the 3
1288		-	nonpublicly traded corporation's stock: 4
1289		-	(A) The permit issued under this subchapter is void; and 5
1290		-	(B) The nonpublicly traded corporation: 6
1291		-	(i) Shall apply for a new permit under this 7
1292		-	subchapter; 8
1293		-	(ii) May be issued a new permit under this 9
1294		-	subchapter; and 10
1295		-	(iii) May operate under the voided permit for no more 11
1296		-	than thirty (30) days from the date of the change, removal, or replacement of 12
1297		-	the president, chief executive officer, or stockholder. 13
1298		-	(4) When a publicly traded corporation permitted under this 14
1299		-	subchapter changes, removes, or replaces the president or chief executive 15
1300		-	officer named on the permit or changes, removes, or replaces a stockholder 16
1301		-	who owns fifty percent (50%) or more of the total voting shares of the 17
1302		-	publicly traded corporation's stock: 18
1303		-	(A) The permit issued under this subchapter is void; and 19
1304		-	(B) The publicly traded corporation: 20
1305		-	(i) Shall apply for a new permit under this 21
1306		-	subchapter; 22
1307		-	(ii) May be issued a new permit under this 23
1308		-	subchapter; and 24
1309		-	(iii) May operate under the voided permit for no more 25
1310		-	than thirty (30) days from the date of the change, removal, or replacement of 26
1311		-	the president, chief executive officer, or stockholder. 27
1312		-	(e) An entity may apply for and be issued a permit under this 28
1313		-	subchapter in advance of the effective date of the permit to facilitate 29
1314		-	continuity of business operations. 30
1315		-	31
1316		-	20-56-405. Permits — Location — Background check required. 32
1317		-	(a) A retail, wholesale, or manufacturer permit shall not be issued to 33
1318		-	a residential address, a mobile structure or vehicle, or for an address not 34
1319		-	zoned appropriately for the business seeking to secure the permit. 35
1320		-	(b) A permit shall not be issued to: 36 As Engrossed: S4/2/25 H4/8/25 SB533
1321		-
1322		-	34 04-08-2025 10:08:29 JMB498
1323		-
1324		-
1325		-	(1) A person who has pleaded guilty or nolo contendere to or 1
1326		-	been found guilty of a felony; or 2
1327		-	(2) A business owned or operated, in whole or in part, by a 3
1328		-	person who has pleaded guilty or nolo contendere to or been found guilty of a 4
1329		-	felony. 5
1330		-	(c) Arkansas Tobacco Control shall conduct a criminal background check 6
1331		-	on each permit applicant and application, utilizing its Arkansas Crime 7
1332		-	Information Center access as a law enforcement agency, in accordance with §§ 8
1333		-	12-12-1008 — 12-12-1011. 9
1334		-	10
1335		-	20-56-406. Permits — Annual privilege fees. 11
1336		-	(a) The annual privilege fee for each permit authorized by this 12
1337		-	subchapter is established as follows: 13
1338		-	(1) Wholesale Hemp-derived Products Permit.............$5,000 14
1339		-	(2) Retail Hemp-derived Products Permit.............$5,000 15
1340		-	(3) Manufacturer Hemp -derived Products Permit.............$5,000 16
1341		-	(b)(1) All permits issued under this subchapter shall expire on June 17
1342		-	30 following the effective date of issuance. 18
1343		-	(2)(A) Upon the failure to timely renew a permit issued under 19
1344		-	this subchapter, a late fee of two (2) times the amount of the appropriate 20
1345		-	permit fee shall be owed in addition to the annual privilege fee for the 21
1346		-	permit. 22
1347		-	(B) An expired permit that is not renewed before September 23
1348		-	1 following the expiration of the permit shall not be renewed, and the holder 24
1349		-	of the expired permit shall submit an application for a new permit. 25
1350		-	(3) A permit shall not be issued to the applicant until the late 26
1351		-	fee and the permit fee have been paid. 27
1352		-	(c) A permit issued under this subchapter shall not be renewed for a 28
1353		-	permit holder who is delinquent more than ninety (90) days on a privilege 29
1354		-	fee, tax relating to the sale or dispensing of hemp -derived products, or any 30
1355		-	other state and local tax due to the Secretary of the Department of Finance 31
1356		-	and Administration. 32
1357		-	(d) A person who is delinquent more than ninety (90) days on a state 33
1358		-	or local tax may not renew or obtain a permit issued under this subchapter 34
1359		-	except upon certification that the permit holder has entered into a repayment 35
1360		-	agreement with the Department of Finance and Administration and is current on 36 As Engrossed: S4/2/25 H4/8/25 SB533
1361		-
1362		-	35 04-08-2025 10:08:29 JMB498
1363		-
1364		-
1365		-	the payments. 1
1366		-	(e) A permit holder who has unpaid fees, civil penalties, or an 2
1367		-	unserved permit suspension may not transfer, sell, or give hemp -derived 3
1368		-	product inventory of the business associated with the permit to a third party 4
1369		-	until all fees and civil penalties are paid in full and all suspensions are 5
1370		-	completed successfully, nor shall any third party be issued a new permit for 6
1371		-	the business location. 7
1372		-	(f) Each manufacturer, wholesaler, and retailer shall retain copies of 8
1373		-	all invoices for the purchase or sale of any hemp -derived products for a 9
1374		-	period of at least ten (10) years subject to examination by the Secretary of 10
1375		-	the Department of Finance and Administration and the Director of Arkansas 11
1376		-	Tobacco Control or their authorized agents upon demand at any time during 12
1377		-	regular business hours. 13
1378		-	(g) A retailer shall: 14
1379		-	(1) Maintain copies of at least the last three hundred sixty -15
1380		-	five (365) days of hemp -derived product invoices, which the retailer shall 16
1381		-	provide immediately upon demand; 17
1382		-	(2)(A) Make the invoices that are older than three hundred 18
1383		-	sixty-five (365) days available upon demand at any time during normal 19
1384		-	business hours in the retail store. 20
1385		-	(B) Except as provided in subdivision (g)(2)(C) of this 21
1386		-	section, an agent of Arkansas Tobacco Control may determine a reasonable time 22
1387		-	frame for which invoices are to be provided under subdivision (g)(2)(A) of 23
1388		-	this section. 24
1389		-	(C) An invoice that is provided seventy -two (72) hours or 25
1390		-	more after the demand shall not be considered for purposes of determining a 26
1391		-	violation of this subsection; 27
1392		-	(3) Retain invoices for all hemp -derived products in the retail 28
1393		-	store even if the invoice for the hemp -derived products is older than three 29
1394		-	(3) years; 30
1395		-	(4) Maintain a copy of the signed server awareness forms for 31
1396		-	each employee of the retailer who engages in the sale of hemp -derived 32
1397		-	products, which the retailer shall provide immediately upon demand; 33
1398		-	(5)(A) Maintain a copy of any complete transfer forms showing: 34
1399		-	(i) The hemp-derived products that were transferred; 35
1400		-	(ii) The permitted location from which the hemp -36 As Engrossed: S4/2/25 H4/8/25 SB533
1401		-
1402		-	36 04-08-2025 10:08:29 JMB498
1403		-
1404		-
1405		-	derived products were transferred; and 1
1406		-	(iii) When the transfer occurred. 2
1407		-	(B) A transfer form shall be completed contemporaneously 3
1408		-	with the transfer and shall be provided immediately by the retailer upon 4
1409		-	demand; and 5
1410		-	(6) If any inventory was submitted with a permit application, 6
1411		-	maintain a copy of the submitted inventory form, which the retailer shall 7
1412		-	provide immediately upon demand. 8
1413		-	(h) A wholesaler and manufacturer shall: 9
1414		-	(1) Maintain ten (10) years of hemp -derived product invoices 10
1415		-	that are available upon demand during normal business hours in the permitted 11
1416		-	location; and 12
1417		-	(2) Permit Arkansas Tobacco Control and authorized personnel of 13
1418		-	Arkansas Tobacco Control to enter into and inspect stock of hemp -derived 14
1419		-	products, and any documents and records relating to receipts and 15
1420		-	disbursements of hemp -derived products. 16
1421		-	(i) An invoice from a wholesaler to a retailer shall contain the name 17
1422		-	or other identifying information of the wholesaler and the retailer. 18
1423		-	(j)(1) A nonresident wholesaler shall also keep a record of all hemp -19
1424		-	derived products purchased for distribution within this state. 20
1425		-	(2) All books, records, and memoranda pertaining to the purchase 21
1426		-	and sale of the hemp -derived products under subdivision (j)(1) of this 22
1427		-	section shall be subject to inspection by Arkansas Tobacco Control. 23
1428		-	(k) Authorized personnel of Arkansas Tobacco Control shall not release 24
1429		-	to the Arkansas Tobacco Control Board or to the public any information 25
1430		-	identifying customers of the manufacturer, wholesaler, or warehouse except 26
1431		-	when necessary to notify the board of alleged violations of this subchapter. 27
1432		-	28
1433		-	20-56-407. Permits — Not transferable — Duplicates. 29
1434		-	(a) A permit under this subchapter is not: 30
1435		-	(1) Transferable to a subsequent owner or operator; or 31
1436		-	(2) Transferable to a different physical location unless the 32
1437		-	permit holder obtains permission from the Director of Arkansas Tobacco 33
1438		-	Control. 34
1439		-	(b) A person purchasing an existing permitted retail location may 35
1440		-	operate under the selling owner's permit for no more than thirty (30) days 36 As Engrossed: S4/2/25 H4/8/25 SB533
1441		-
1442		-	37 04-08-2025 10:08:29 JMB498
1443		-
1444		-
1445		-	from the date of the sale. 1
1446		-	(c) When a permit is lost by a permit holder, a duplicate permit may 2
1447		-	be issued upon application and for a fee of five dollars ($5.00) when 3
1448		-	sufficient proof has been given to the Director of Arkansas Tobacco Control. 4
1449		-	5
1450		-	20-56-408. Permits — Suspension or revocation. 6
1451		-	(a) All permits issued under this subchapter shall be suspended or 7
1452		-	revoked by the Director of Arkansas Tobacco Control for any violation of this 8
1453		-	subchapter or the rules pertaining to this subchapter, subject to a hearing 9
1454		-	before the Arkansas Tobacco Control Board at the next regularly scheduled 10
1455		-	board meeting. 11
1456		-	(b) The director may revoke all permits to deal in hemp -derived 12
1457		-	products associated with any person who is convicted of or pleads guilty or 13
1458		-	nolo contendere to criminally violating this subchapter, subject to a hearing 14
1459		-	before the board at the next regularly scheduled board meeting. 15
1460		-	16
1461		-	20-56-409. Advertising prohibitions and packaging requirements. 17
1462		-	(a) A hemp-derived product distributed or offered for sale in this 18
1463		-	state shall include the following information on the product label or product 19
1464		-	packaging: 20
1465		-	(1) The name of the hemp -derived product manufacturer, whether 21
1466		-	in-state or out-of-state, and distributor, whether in -state or out-of-state; 22
1467		-	(2) Product labeling clearly showing that the product contains 23
1468		-	material derived from hemp and not marijuana or medical marijuana; and 24
1469		-	(3) Any other marking, words, statement, or symbol as required 25
1470		-	by Arkansas Tobacco Control through rules. 26
1471		-	(b) A person shall not advertise, market, or offer for sale in this 27
1472		-	state any hemp-derived product by using, in the labeling or design of the 28
1473		-	product, its packaging, or in its advertising or marketing materials, trade 29
1474		-	dress, trademarks, branding, or other related imagery that: 30
1475		-	(1) Imitates or replicates those of food brands or other related 31
1476		-	products that are marketed to or are commonly associated with children or 32
1477		-	minors, including without limitation breakfast cereal, cookies, juice drinks, 33
1478		-	soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops; 34
1479		-	(2) Depicts or signifies characters or symbols that are known to 35
1480		-	a reasonable person to appeal primarily to or are commonly associated with 36 As Engrossed: S4/2/25 H4/8/25 SB533
1481		-
1482		-	38 04-08-2025 10:08:29 JMB498
1483		-
1484		-
1485		-	children or minors, including without limitation superheroes, cartoons or 1
1486		-	cartoon characters, including anime characters, comic book characters, video 2
1487		-	game characters, television show characters, movie characters, mythical 3
1488		-	creatures, unicorns, or that otherwise incorporates related imagery or 4
1489		-	scenery; or 5
1490		-	(3) Uses the terms “candy”, “candies”, “cake”, “cakes”, “pies”, 6
1491		-	or “cupcakes” or any variant of these terms, or any other term referencing a 7
1492		-	type or brand of candy, cakes, pastries, or pies, including types or brands 8
1493		-	of candy, cakes, pastries, or pies that do not include the words “candy”, 9
1494		-	“candies”, “cake”, “cakes”, “pies”, or “cupcakes” in their names, labels, or 10
1495		-	slogans. 11
1496		-	12
1497		-	20-56-410. Testing. 13
1498		-	(a) All hemp-derived products sold in this state shall be tested by an 14
1499		-	approved laboratory. 15
1500		-	(b) An approved laboratory shall be an independent third -party 16
1501		-	laboratory. 17
1502		-	(c) A hemp-derived product sold in this state shall be tested for the 18
1503		-	following and marked as to the hemp -derived product chemical makeup before 19
1504		-	being sold to consumers: 20
1505		-	(1) Cannabinoid profile; 21
1506		-	(2) Solvents; 22
1507		-	(3) Pesticides; 23
1508		-	(4) Microbials; 24
1509		-	(5) Heavy metals; and 25
1510		-	(6) Any non-hemp-based substance. 26
1511		-	(d) A hemp-derived product shall not be distributed or sold in this 27
1512		-	state without a certificate of analysis from an approved laboratory that 28
1513		-	confirms: 29
1514		-	(1) The hemp-derived product was tested by an approved 30
1515		-	laboratory; 31
1516		-	(2) A tested representative sample of the hemp -derived product 32
1517		-	contained a total delta -9 tetrahydrocannabinol concentration that did not 33
1518		-	exceed three-tenths of one percent (0.3%) under this subchapter; and 34
1519		-	(3) A detailed analysis and list of chemical makeup of the 35
1520		-	tested hemp-derived product under subsection (c) of this section. 36 As Engrossed: S4/2/25 H4/8/25 SB533
1521		-
1522		-	39 04-08-2025 10:08:29 JMB498
1523		-
1524		-
1525		-	(e) Arkansas Tobacco Control may periodically sample, analyze, and 1
1526		-	test any hemp-derived product located in this state. 2
1527		-	(f) The Director of Arkansas Tobacco Control shall: 3
1528		-	(1) Investigate and issue subpoenas to any permittee or approved 4
1529		-	laboratory used by a permittee that the director has reasonable suspicion of 5
1530		-	intentionally producing falsified test results on hemp -derived products; and 6
1531		-	(2) Promulgate rules for the enforcement of this section and set 7
1532		-	penalties for any violation of the rules. 8
1533		-	9
1534		-	20-56-411. Providing minors with hemp -derived products — Purchase, 10
1535		-	use, or possession prohibited. 11
1536		-	(a)(1) It is unlawful for any person to give, barter, or sell to a 12
1537		-	minor a hemp-derived product. 13
1538		-	(2) Except as provided in subdivision (a)(3) of this section, a 14
1539		-	person who pleads guilty or nolo contendere to or is found guilty of 15
1540		-	violating subdivision (a)(1) of this section is guilty of a Class A 16
1541		-	misdemeanor. 17
1542		-	(3) An employee or owner of a retail location permitted under 18
1543		-	this subchapter who violates subdivision (a)(1) of this section while inside 19
1544		-	the retail location upon conviction is subject to a fine not to exceed one 20
1545		-	hundred dollars ($100) per violation. 21
1546		-	(b)(1) It is unlawful for a minor to: 22
1547		-	(A) Use or possess or to purchase or attempt to purchase a 23
1548		-	hemp-derived product; or 24
1549		-	(B) For the purpose of obtaining or attempting to obtain a 25
1550		-	hemp-derived product, falsely represent himself or herself not to be a minor 26
1551		-	by displaying proof of age that is false, fraudulent, or not actually proof 27
1552		-	of the minor's age. 28
1553		-	(2) Any hemp-derived product found in the possession of a minor 29
1554		-	may be confiscated and destroyed by a law enforcement officer. 30
1555		-	(c)(1) It is not an offense under subsection (b) of this section if: 31
1556		-	(A) The minor was acting at the direction of an authorized 32
1557		-	agent of Arkansas Tobacco Control to enforce or ensure compliance with laws 33
1558		-	relating to the prohibition of the sale of hemp -derived product to minors; 34
1559		-	(B) The minor was acting at the direction of an authorized 35
1560		-	agent of the Division of Aging, Adult, and Behavioral Health Services of the 36 As Engrossed: S4/2/25 H4/8/25 SB533
1561		-
1562		-	40 04-08-2025 10:08:29 JMB498
1563		-
1564		-
1565		-	Department of Human Services to compile statistical data relating to the sale 1
1566		-	of hemp-derived products to minors; 2
1567		-	(C) The minor was acting at the request of a permit holder 3
1568		-	to assist the permit holder by performing a check on the permit holder's own 4
1569		-	retail business to see if the permit holder's employees would sell hemp -5
1570		-	derived products to the minor; or 6
1571		-	(D) The minor was acting as an agent of a retail permit 7
1572		-	holder within the scope of employment. 8
1573		-	(2) A minor performing activities under subdivision (c)(1) of 9
1574		-	this section shall: 10
1575		-	(A) Display the appearance of a minor; 11
1576		-	(B) Have the written consent of the minor's parent or 12
1577		-	guardian to perform the activity on file with the agency utilizing the minor; 13
1578		-	and 14
1579		-	(C)(i) Present a true and correct identification if asked. 15
1580		-	(ii) Any failure on the part of a minor to provide 16
1581		-	true and correct identification upon request is a defense to any action under 17
1582		-	this section or a civil action under § 26 -57-256. 18
1583		-	(d) Any person who sells hemp -derived products has the right to deny 19
1584		-	the sale of any hemp -derived product to any person. 20
1585		-	(e) It is unlawful for any person who has been issued a permit or a 21
1586		-	license under this subchapter to fail to display in a conspicuous place a 22
1587		-	sign indicating that the sale of hemp -derived products to or purchase or 23
1588		-	possession of hemp-derived products by a minor is prohibited by law. 24
1589		-	(f) It is unlawful for any manufacturer whose hemp -derived product is 25
1590		-	distributed in this state and any person who has been issued a permit or 26
1591		-	license under this subchapter to distribute a free sample of any hemp -derived 27
1592		-	product, or any component of a hemp -derived product or coupon that entitles 28
1593		-	the holder of the coupon to any free sample of any hemp -derived product, or 29
1594		-	any component of a hemp -derived product: 30
1595		-	(1) In or on any public street or sidewalk within five hundred 31
1596		-	feet (500′) of any playground, public school, or other facility when the 32
1597		-	playground, public school, or other facility is being used primarily by 33
1598		-	minors for recreational, educational, or other purposes; or 34
1599		-	(2) To any minor. 35
1600		-	(g) It is unlawful for any person that has been issued a permit or 36 As Engrossed: S4/2/25 H4/8/25 SB533
1601		-
1602		-	41 04-08-2025 10:08:29 JMB498
1603		-
1604		-
1605		-	license under this subchapter to: 1
1606		-	(1) Sell or distribute a hemp -derived product through a self -2
1607		-	service display, a vending machine, or an order executed solely over the 3
1608		-	internet or similar means; or 4
1609		-	(2) Advertise or promote hemp -derived products in a manner that 5
1610		-	is intended to appeal to children. 6
1611		-	(h) Any retail permit holder or license holder who violates any 7
1612		-	provision in this section is deemed guilty of a violation and subject to 8
1613		-	penalties under § 26 -57-256. 9
1614		-	(i)(1) A notice of an alleged violation of this section shall be given 10
1615		-	to the holder of a retail permit or license or an agent of the holder within 11
1616		-	ten (10) days of the alleged violation. 12
1617		-	(2)(A) The notice under subdivision (i)(1) of this section shall 13
1618		-	contain the date and time of the alleged violation. 14
1619		-	(B)(i) The notice under subdivision (i)(1) of this section 15
1620		-	shall also include either the name of the person making the alleged sale or 16
1621		-	information reasonably necessary to determine the location in the store that 17
1622		-	allegedly made the sale. 18
1623		-	(ii) When appropriate, information under subdivision 19
1624		-	(i)(2)(B)(i) of this section should include, but not be limited to, the: 20
1625		-	(a) Cash register number of the sale in the 21
1626		-	store; 22
1627		-	(b) Physical location of the sale in the 23
1628		-	store; and 24
1629		-	(c) If possible, the lane or aisle number of 25
1630		-	the sale in the store. 26
1631		-	(j) Notwithstanding the provisions of subsection (h) of this section, 27
1632		-	the court shall consider the following factors when reviewing a possible 28
1633		-	violation: 29
1634		-	(1) The business has adopted and enforced a written policy 30
1635		-	against selling hemp -derived products to minors; 31
1636		-	(2) The business has informed its employees of the applicable 32
1637		-	laws regarding the sale of hemp -derived products to minors; 33
1638		-	(3) The business has required employees to verify the age of a 34
1639		-	customer attempting to purchase a hemp -derived product by way of photographic 35
1640		-	identification; 36 As Engrossed: S4/2/25 H4/8/25 SB533
1641		-
1642		-	42 04-08-2025 10:08:29 JMB498
1643		-
1644		-
1645		-	(4) The business has established and imposed disciplinary 1
1646		-	sanctions for noncompliance; and 2
1647		-	(5) That the appearance of the purchaser of the hemp -derived 3
1648		-	product was such that an ordinary prudent person would believe him or her to 4
1649		-	be of legal age to make the purchase. 5
1650		-	(k) A person convicted of violating any provision of this section 6
1651		-	whose permit or license to distribute or sell a hemp -derived product is 7
1652		-	suspended or revoked upon conviction shall surrender to the court any permit 8
1653		-	or license to distribute or sell a hemp -derived product, and the court shall 9
1654		-	transmit the permit or license to distribute or sell a hemp -derived product 10
1655		-	to the Director of Arkansas Tobacco Control: 11
1656		-	(1) To suspend or revoke the person's permit or license to 12
1657		-	distribute or sell a hemp -derived product and to not renew the permit or 13
1658		-	license; and 14
1659		-	(2) Not to issue any new permit or license to that person for 15
1660		-	the period of time determined by the court in accordance with this section. 16
1661		-	17
1662		-	20-56-412. Enforcement — Penalties. 18
1663		-	(a) It is the duty of all state, county, and city officers to assist 19
1664		-	Arkansas Tobacco Control in enforcing this subchapter. 20
1665		-	(b) A person within the jurisdiction of this state who is not 21
1666		-	permitted to sell hemp -derived products to retailers or consumers and who 22
1667		-	sells, takes orders from, delivers, or causes to be delivered immediately or 23
1668		-	in the future any hemp -derived products to retailers or consumers in the 24
1669		-	State of Arkansas is guilty of a Class A misdemeanor. 25
1670		-	(c) A person engaged in buying or selling hemp -derived products in 26
1671		-	this state without first obtaining the proper permit upon conviction is 27
1672		-	guilty of a Class A misdemeanor. 28
1673		-	(d) This subchapter does not prohibit in any form the continuous 29
1674		-	transportation through Arkansas of the plant Cannabis sativa L., and any part 30
1675		-	of that plant, including the seeds thereof and all derivatives, extracts, 31
1676		-	cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 32
1677		-	not, with a total delta -9 tetrahydrocannabinol concentration of not more than 33
1678		-	three-tenths of one percent (0.3%) on a dry -weight basis, from one licensed 34
1679		-	hemp producer in another state to a licensed hemp handler in another state. 35
1680		-	36 As Engrossed: S4/2/25 H4/8/25 SB533
1681		-
1682		-	43 04-08-2025 10:08:29 JMB498
1683		-
1684		-
1685		-	20-56-413. Rules. 1
1686		-	The Director of Arkansas Tobacco Control and Arkansas Tobacco Control 2
1687		-	may promulgate rules for the proper enforcement of their powers and duties 3
1688		-	under this subchapter, including without limitation the regulation of 4
1689		-	processing, transportation, delivery, sale, and purchase of hemp -derived 5
1690		-	products in accordance with this subchapter and the power to levy penalties 6
1691		-	for violations of this subchapter. 7
1692		-	8
1693		-	SECTION 12. Arkansas Code § 26 -57-247(b), effective until the 9
1694		-	contingency in Acts 2023, No. 629, § 17, is met, concerning those unstamped 10
1695		-	and untaxed items that may be seized by the Director of Arkansas Tobacco 11
1696		-	Control, is amended to read as follows: 12
	1605	+	SECTION 12. Arkansas Code § 26 -57-247, effective if the contingency in 7
	1606	+	Acts 2023, No. 629, § 17, is met, is repealed. 8
	1607	+	26-57-247. Seizure, forfeiture, and disposition of tobacco products 9
	1608	+	and other property. 10
	1609	+	(a) Cigarettes to which stamps have not been affixed as provided by 11
	1610	+	law are subject to seizure and shall be held as evidence for prosecution. 12
1697	1611		(b) The Director of Arkansas Tobacco Control may seize and hold for 13
1698	1612		disposition of the courts or the Arkansas Tobacco Control Board all tobacco 14
1699		-	products, vapor products, alternative nicotine products, or e-liquid 15
1700		-	products, consumable hemp products, or intoxicating hemp products found in 16
1701		-	the possession of a person dealing in, or a consumer of, tobacco products, 17
1702		-	vapor products, alternative nicotine products, or e-liquid products, 18
1703		-	consumable hemp products, or intoxicating hemp products if: 19
1704		-	(1) Prima facie evidence exists that the full amount of excise 20
1705		-	tax due on the tobacco products has not been paid to the Secretary of the 21
1706		-	Department of Finance and Administration; 22
1707		-	(2) Tobacco products, vapor products, alternative nicotine 23
1708		-	products, or e-liquid products are in the possession of a wholesaler who does 24
1709		-	not possess a current Arkansas wholesale permit; 25
1710		-	(3) A retail establishment does not possess a current Arkansas 26
1711		-	retail permit; 27
1712		-	(4) The tobacco products, vapor products, alternative nicotine 28
1713		-	products, or e-liquid products have been offered for sale to the public at 29
1714		-	another location without a current Arkansas retail permit .; or 30
1715		-	(5) Consumable hemp products or intoxicating hemp products are 31
1716		-	possessed, sold, or offered for sale in violation of § 20 -56-501 et seq. 32
1717		-	33
1718		-	SECTION 13. Arkansas Code § 26-57-247, effective if the contingency in 34
1719		-	Acts 2023, No. 629, § 17, is met, is repealed. 35
1720		-	26-57-247. Seizure, forfeiture, and disposition of tobacco products 36 As Engrossed: S4/2/25 H4/8/25 SB533
1721		-
1722		-	44 04-08-2025 10:08:29 JMB498
1723		-
1724		-
1725		-	and other property. 1
1726		-	(a) Cigarettes to which stamps have not been affixed as provided by 2
1727		-	law are subject to seizure and shall be held as evidence for prosecution. 3
1728		-	(b) The Director of Arkansas Tobacco Control may seize and hold for 4
1729		-	disposition of the courts or the Arkansas Tobacco Control Board all tobacco 5
1730		-	products, vapor products, alternative nicotine products, e -liquid products, 6
1731		-	or hemp-derived products found in the possession of a person dealing in, or a 7
1732		-	consumer of, tobacco products, vapor products, alternative nicotine products, 8
1733		-	e-liquid products, or hemp -derived products if: 9
1734		-	(1) Prima facie evidence exists that the full amount of excise 10
1735		-	tax due on the tobacco products has not been paid to the Secretary of the 11
1736		-	Department of Finance and Administration; 12
1737		-	(2) Tobacco products, vapor products, alternative nicotine 13
1738		-	products, or e-liquid products are in the possession of a wholesaler who does 14
1739		-	not possess a current Arkansas wholesale permit; 15
1740		-	(3) A retail establishment does not possess a current Arkansas 16
1741		-	retail permit; 17
1742		-	(4) The tobacco products, vapor products, alternative nicotine 18
1743		-	products, or e-liquid products have been offered for sale to the public at 19
1744		-	another location without a current Arkansas retail permit; or 20
1745		-	(5) Hemp-derived products are possessed, sold, or offered for 21
1746		-	sale in violation of § 20 -56-401 et seq. 22
1747		-	(c) Property, including money, used to facilitate a violation of this 23
1748		-	subchapter or the Unfair Cigarette Sales Act, § 4 -75-701 et seq., may be 24
1749		-	seized and forfeited to the state. 25
1750		-	(d)(1) A prosecuting attorney may institute a civil action against a 26
1751		-	person who is convicted of a criminal violation under this subchapter or the 27
1752		-	Unfair Cigarette Sales Act, § 4 -75-701 et seq., to obtain a judgment for: 28
1753		-	(A) Damages in an amount equal to the value of the 29
1754		-	property, funds, or a monetary instrument involved in the violation; 30
1755		-	(B) The proceeds acquired by a person involved in the 31
1756		-	enterprise or by reason of conduct in furtherance of the violation; and 32
1757		-	(C) Costs incurred by Arkansas Tobacco Control in the 33
1758		-	investigation, prosecution, and adjudication of criminal, civil, and 34
1759		-	administrative proceedings. 35
1760		-	(2) The standard of proof in an action brought under subdivision 36 As Engrossed: S4/2/25 H4/8/25 SB533
1761		-
1762		-	45 04-08-2025 10:08:29 JMB498
1763		-
1764		-
1765		-	(d)(1) of this section is preponderance of the evidence. 1
1766		-	(e) The following are subject to forfeiture under this section upon 2
1767		-	order by a circuit court: 3
1768		-	(1) Tobacco products, vapor products, alternative nicotine 4
1769		-	products, or e-liquid products distributed, dispensed, or acquired in 5
1770		-	violation of this subchapter; 6
1771		-	(2) Raw materials, products, or equipment used or intended for 7
1772		-	use in manufacturing, compounding, processing, delivering, importing, or 8
1773		-	exporting a tobacco product, vapor product, alternative nicotine product, or 9
1774		-	e-liquid product in violation of this subchapter; 10
1775		-	(3) Property that is used or intended for use as a container for 11
1776		-	property described in subdivision (e)(1) or subdivision (e)(2) of this 12
1777		-	section; 13
1778		-	(4)(A) Except as provided in subdivision (e)(4)(B) of this 14
1779		-	section, a conveyance, including an aircraft, vehicle, or vessel, that is 15
1780		-	used or intended to be used to transport or in any manner to facilitate the 16
1781		-	transportation for the purpose of sale or receipt of property described in 17
1782		-	subdivision (e)(1) or subdivision (e)(2) of this section. 18
1783		-	(B)(i) A conveyance used by a person as a common carrier 19
1784		-	in the transaction of business as a common carrier is not subject to 20
1785		-	forfeiture under this section unless it appears that the owner or other 21
1786		-	person in charge of the conveyance is a consenting party or privy to a 22
1787		-	violation of this subchapter. 23
1788		-	(ii) A conveyance is not subject to forfeiture under 24
1789		-	this section by reason of an act or omission established by the owner of the 25
1790		-	conveyance to have been committed or omitted without his or her knowledge or 26
1791		-	consent. 27
1792		-	(C) Upon a showing described in subdivision (e)(4)(B)(i) 28
1793		-	of this section by the owner or interest holder of a conveyance, the 29
1794		-	conveyance may nevertheless be forfeited if the prosecuting attorney 30
1795		-	establishes that the owner or interest holder either knew or should 31
1796		-	reasonably have known that the conveyance would be used to transport or in 32
1797		-	any manner to facilitate the transportation for the purpose of sale or 33
1798		-	receipt of property described in subdivision (e)(1) or subdivision (e)(2) of 34
1799		-	this section. 35
1800		-	(D) A conveyance encumbered by a bona fide security 36 As Engrossed: S4/2/25 H4/8/25 SB533
1801		-
1802		-	46 04-08-2025 10:08:29 JMB498
1803		-
1804		-
1805		-	interest is subject to the interest of the secured party if the secured party 1
1806		-	neither had knowledge of nor consented to an act or omission in violation of 2
1807		-	this subchapter; 3
1808		-	(5) A book, record, or research product or material, including a 4
1809		-	formula, microfilm, tape, or data that is used or intended for use in 5
1810		-	violation of this subchapter; 6
1811		-	(6)(A) Except as provided in subdivision (e)(6)(B) of this 7
1812		-	section, a thing of value, including: 8
1813		-	(i) Firearms purchased from the proceeds of the sale 9
1814		-	of untaxed tobacco products, vapor products, alternative nicotine products, 10
1815		-	or e-liquid products in violation of this subchapter or used in furtherance 11
1816		-	of a criminal offense as described in § 26 -57-245; 12
1817		-	(ii) Proceeds or profits traceable to an exchange 13
1818		-	described in subdivision (e)(6)(A)(i) of this section; and 14
1819		-	(iii) Money, negotiable instruments, or security used 15
1820		-	or intended to be used to facilitate a violation of this subchapter. 16
1821		-	(B) Property shall not be forfeited under subdivision 17
1822		-	(e)(6)(A) of this section to the extent of the interest of an owner by reason 18
1823		-	of an act or omission established by him or her by a preponderance of the 19
1824		-	evidence to have been committed or omitted without his or her knowledge or 20
1825		-	consent; 21
1826		-	(7)(A) Money, coins, or currency found in close proximity to a 22
1827		-	forfeitable tobacco product, vapor product, alternative nicotine product, or 23
1828		-	e-liquid product or a forfeitable record of an importation of a tobacco 24
1829		-	product, vapor product, alternative nicotine product, or e -liquid product is 25
1830		-	presumed to be forfeitable under this section. 26
1831		-	(B) The burden of proof is upon a claimant of the money, 27
1832		-	coins, or currency to rebut the presumption in subdivision (e)(7)(A) of this 28
1833		-	section by a preponderance of the evidence; and 29
1834		-	(8)(A) Except as provided in subdivision (e)(8)(B) of this 30
1835		-	section, real property if it substantially assisted in, facilitated in any 31
1836		-	manner, or was used or intended for use in the commission of any act 32
1837		-	prohibited by this subchapter. 33
1838		-	(B)(i) Real property is not subject to forfeiture under 34
1839		-	this section by reason of an act or omission established by the owner of the 35
1840		-	real property by a preponderance of the evidence to have been committed or 36 As Engrossed: S4/2/25 H4/8/25 SB533
1841		-
1842		-	47 04-08-2025 10:08:29 JMB498
1843		-
1844		-
1845		-	omitted without his or her knowledge or consent. 1
1846		-	(ii) A forfeiture of real property encumbered by a 2
1847		-	mortgage or other lien is subject to the interest of the secured party if the 3
1848		-	secured party neither had knowledge of nor consented to an act or omission in 4
1849		-	violation of this subchapter. 5
1850		-	(iii) If the circuit court finds by a preponderance 6
1851		-	of the evidence that grounds for a forfeiture exist under this section, the 7
1852		-	court shall enter an order requiring the forfeiture of the real property. 8
1853		-	(C) Upon an order of forfeiture of real property, the 9
1854		-	order shall be filed on the day issued and shall have prospective effect. 10
1855		-	(D) A forfeiture of real property does not affect the 11
1856		-	title of a bona fide purchaser who purchased the real property before the 12
1857		-	issuance of the order, and the order has no force or effect on the title of 13
1858		-	the bona fide purchaser. 14
1859		-	(E) A lis pendens filed in connection with an action 15
1860		-	pending under this section that may result in the forfeiture of real property 16
1861		-	is effective only from the time filed and has no retroactive effect. 17
1862		-	(f) A tobacco product, vapor product, alternative nicotine product, or 18
1863		-	e-liquid product that is possessed, transferred, sold, or offered for sale in 19
1864		-	violation of this subchapter may be seized and immediately forfeited to the 20
1865		-	state. 21
1866		-	(g)(1) Property subject to forfeiture under this subchapter may be 22
1867		-	seized by a law enforcement agent upon process issued by a circuit court 23
1868		-	having jurisdiction over the property on petition filed by the prosecuting 24
1869		-	attorney of the judicial circuit. 25
1870		-	(2) Seizure without process may be made if: 26
1871		-	(A) The seizure is incident to an arrest or a search under 27
1872		-	a search warrant or an inspection under the regulatory authority of Arkansas 28
1873		-	Tobacco Control; 29
1874		-	(B) The property subject to seizure has been the subject 30
1875		-	of a prior judgment in favor of the state in a criminal injunction or 31
1876		-	forfeiture proceeding based upon this subchapter; 32
1877		-	(C) The seizing law enforcement agency has probable cause 33
1878		-	to believe that the property is directly or indirectly dangerous to health or 34
1879		-	safety; or 35
1880		-	(D) The seizing law enforcement agency has probable cause 36 As Engrossed: S4/2/25 H4/8/25 SB533
1881		-
1882		-	48 04-08-2025 10:08:29 JMB498
1883		-
1884		-
1885		-	to believe that the property was used or is intended to be used in violation 1
1886		-	of this subchapter. 2
1887		-	(h)(1) A state or local law enforcement agency shall not transfer 3
1888		-	property seized by the state or local agency under this section to a federal 4
1889		-	entity for forfeiture under federal law unless the circuit court having 5
1890		-	jurisdiction over the property enters an order, upon petition by the 6
1891		-	prosecuting attorney, authorizing the property to be transferred to the 7
1892		-	federal entity. 8
1893		-	(2) The transfer shall not be approved unless it reasonably 9
1894		-	appears that the activity giving rise to the investigation or seizure 10
1895		-	involves more than one (1) state or the nature of the investigation or 11
1896		-	seizure would be better pursued under federal law. 12
1897		-	(i)(1) Property seized for forfeiture under this section is not 13
1898		-	subject to replevin but is deemed to be in the custody of the seizing law 14
1899		-	enforcement agency subject only to an order or decree of the circuit court 15
1900		-	having jurisdiction over the property seized. 16
1901		-	(2) Subject to a need to retain the property as evidence, when 17
1902		-	property is seized under this subchapter, the seizing law enforcement agency 18
1903		-	may: 19
1904		-	(A) Remove the property to a place designated by the 20
1905		-	circuit court; 21
1906		-	(B) Place the property under constructive seizure, posting 22
1907		-	notice of pending forfeiture on it by: 23
1908		-	(i) Giving notice of pending forfeiture to its 24
1909		-	owners and interest holders; or 25
1910		-	(ii) Filing notice of pending forfeiture in an 26
1911		-	appropriate public record relating to the property; 27
1912		-	(C) Remove the property to a storage area for safekeeping 28
1913		-	or, if the property is a negotiable instrument or money or is not needed for 29
1914		-	evidentiary purposes, deposit it into an interest -bearing account; or 30
1915		-	(D) Provide for another agency or custodian, including an 31
1916		-	owner, secured party, mortgagee, or lienholder, to take custody of the 32
1917		-	property and service, maintain, and operate it as reasonably necessary to 33
1918		-	maintain its value in an appropriate location within the jurisdiction of the 34
1919		-	court. 35
1920		-	(3)(A) In case of transfer of property, a transfer receipt shall 36 As Engrossed: S4/2/25 H4/8/25 SB533
1921		-
1922		-	49 04-08-2025 10:08:29 JMB498
1923		-
1924		-
1925		-	be prepared by the transferring agency. 1
1926		-	(B) The transfer receipt shall: 2
1927		-	(i) List a detailed and complete description of the 3
1928		-	property being transferred; 4
1929		-	(ii) State to whom the property is being transferred 5
1930		-	and the source or authorization for the transfer; and 6
1931		-	(iii) Be signed by both the transferor and the 7
1932		-	transferee. 8
1933		-	(C) Both transferor and transferee shall maintain a copy 9
1934		-	of the transfer receipt. 10
1935		-	(4) A person who acts as custodian of property under this 11
1936		-	section is not liable to any person on account of an act done in a reasonable 12
1937		-	manner in compliance with an order under this subchapter. 13
1938		-	(j)(1) Property seized by a state or local law enforcement officer 14
1939		-	under this section who is detached to, deputized or commissioned by, or 15
1940		-	working in conjunction with a federal agency remains subject to this section. 16
1941		-	(2)(A) If property is seized for forfeiture by a law enforcement 17
1942		-	agency under this section, the seizing law enforcement officer shall prepare 18
1943		-	and sign a confiscation report. 19
1944		-	(B)(i) The party from whom the property is seized shall 20
1945		-	also sign the confiscation report if present and shall immediately receive a 21
1946		-	copy of the confiscation report. 22
1947		-	(ii) If the party refuses to sign the confiscation 23
1948		-	report, the confiscation report shall be signed by one (1) additional law 24
1949		-	enforcement officer, stating that the party refused to sign the confiscation 25
1950		-	report. 26
1951		-	(C) The original confiscation report shall be: 27
1952		-	(i) Filed with the seizing law enforcement agency 28
1953		-	within forty-eight (48) hours after the seizure; and 29
1954		-	(ii) Maintained in a separate file. 30
1955		-	(D) One (1) copy of the confiscation report shall be 31
1956		-	retained by the seizing law enforcement officer. 32
1957		-	(3) The confiscation report shall contain the following 33
1958		-	information: 34
1959		-	(A) A detailed description of the property seized 35
1960		-	including serial or model numbers and odometer or hour reading of vehicles or 36 As Engrossed: S4/2/25 H4/8/25 SB533
1961		-
1962		-	50 04-08-2025 10:08:29 JMB498
1963		-
1964		-
1965		-	equipment; 1
1966		-	(B) The date of seizure; 2
1967		-	(C) The name and address of the party from whom the 3
1968		-	property was seized; 4
1969		-	(D) The reason for the seizure; 5
1970		-	(E) The location where the property will be held; 6
1971		-	(F) The seizing law enforcement officer's name; and 7
1972		-	(G) A signed statement by the seizing law enforcement 8
1973		-	officer stating that the confiscation report is true and complete. 9
1974		-	(4) Within three (3) business days after receiving the 10
1975		-	confiscation report, the seizing law enforcement agency shall forward a copy 11
1976		-	of the confiscation report to the prosecuting attorney for the district where 12
1977		-	the property was seized and to the director. 13
1978		-	(5)(A) Arkansas Legislative Audit shall notify the director and 14
1979		-	a circuit court in the county of a law enforcement agency, prosecuting 15
1980		-	attorney, or other public entity that the law enforcement agency, prosecuting 16
1981		-	attorney, or public entity is ineligible to receive forfeited funds, 17
1982		-	forfeited property, or grants from the council, if Arkansas Legislative Audit 18
1983		-	determines by its own investigation or upon written notice from the director 19
1984		-	that: 20
1985		-	(i) The law enforcement agency failed to complete 21
1986		-	and file the confiscation reports as required by this section; 22
1987		-	(ii) The law enforcement agency, prosecuting 23
1988		-	attorney, or public entity has not properly accounted for the seized 24
1989		-	property; or 25
1990		-	(iii) The prosecuting attorney has failed to comply 26
1991		-	with the notification requirement set forth in subdivision (m)(2) of this 27
1992		-	section. 28
1993		-	(B) After the notice, the circuit court shall not issue an 29
1994		-	order distributing seized property to that law enforcement agency, 30
1995		-	prosecuting attorney, or public entity, nor shall a grant be awarded by the 31
1996		-	council to that law enforcement agency, prosecuting attorney, or public 32
1997		-	entity until: 33
1998		-	(i) The appropriate officials of the law enforcement 34
1999		-	agency, prosecuting attorney, or public entity have appeared before the 35
2000		-	Legislative Joint Auditing Committee; and 36 As Engrossed: S4/2/25 H4/8/25 SB533
2001		-
2002		-	51 04-08-2025 10:08:29 JMB498
2003		-
2004		-
2005		-	(ii) The Legislative Joint Auditing Committee has 1
2006		-	adopted a motion authorizing subsequent transfers of forfeited property to 2
2007		-	the law enforcement agency, prosecuting attorney, or public entity. 3
2008		-	(C)(i) If a law enforcement agency, prosecuting attorney, 4
2009		-	or other public entity is ineligible to receive forfeited property, the 5
2010		-	circuit court shall order money that would have been distributed to that law 6
2011		-	enforcement agency, prosecuting attorney, or public entity to be transmitted 7
2012		-	to the Treasurer of State for deposit into the Special State Assets 8
2013		-	Forfeiture Fund. 9
2014		-	(ii) If the property is not cash, the circuit court 10
2015		-	shall order the property converted to cash under this section and the 11
2016		-	proceeds transmitted to the Treasurer of State for deposit into the Special 12
2017		-	State Assets Forfeiture Fund. 13
2018		-	(D) Moneys deposited into the Special State Assets 14
2019		-	Forfeiture Fund are not subject to recovery or retrieval by an ineligible law 15
2020		-	enforcement agency, prosecuting attorney, or other public entity. 16
2021		-	(6) The director shall establish by rule a standardized 17
2022		-	confiscation report form to be used by all law enforcement agencies, with 18
2023		-	specific instructions and guidelines concerning the nature and dollar value 19
2024		-	of all property, including firearms, to be included in the confiscation 20
2025		-	report and forwarded to the office of the local prosecuting attorney and the 21
2026		-	director under this subsection. 22
2027		-	(k)(1)(A) The prosecuting attorney shall initiate forfeiture 23
2028		-	proceedings by filing a complaint with the circuit clerk of the county where 24
2029		-	the property was seized and by serving the complaint on all known owners and 25
2030		-	interest holders of the seized property in accordance with the Arkansas Rules 26
2031		-	of Civil Procedure. 27
2032		-	(B) The complaint may be based on in rem or in personam 28
2033		-	jurisdiction but shall not be filed to avoid the distribution requirements 29
2034		-	set forth in subdivision (l)(1) of this section. 30
2035		-	(C) The prosecuting attorney shall mail a copy of the 31
2036		-	complaint to the director within five (5) calendar days after filing the 32
2037		-	complaint. 33
2038		-	(2)(A) The complaint shall include a copy of the confiscation 34
2039		-	report and shall be filed within sixty (60) days after receiving a copy of 35
2040		-	the confiscation report from the seizing law enforcement agency. 36 As Engrossed: S4/2/25 H4/8/25 SB533
2041		-
2042		-	52 04-08-2025 10:08:29 JMB498
2043		-
2044		-
2045		-	(B) In a case involving real property, the complaint shall 1
2046		-	be filed within sixty (60) days of the defendant's conviction on the charge 2
2047		-	giving rise to the forfeiture. 3
2048		-	(3)(A) The prosecuting attorney may file the complaint after the 4
2049		-	expiration of the time only if the complaint is accompanied by a statement of 5
2050		-	good cause for the late filing. 6
2051		-	(B) However, the complaint shall not be filed more than 7
2052		-	one hundred twenty (120) days after either the date of the seizure or, in a 8
2053		-	case involving real property, the date of the defendant's conviction. 9
2054		-	(C)(i) If the circuit court determines that good cause has 10
2055		-	not been established, the circuit court shall order that the seized property 11
2056		-	be returned to the owner or interest holder. 12
2057		-	(ii) In addition, items seized but not subject to 13
2058		-	forfeiture under this section or subject to disposition under law or the 14
2059		-	Arkansas Rules of Criminal Procedure may be ordered returned to the owner or 15
2060		-	interest holder. 16
2061		-	(iii) If the owner or interest holder cannot be 17
2062		-	determined, the court may order disposition of the property. 18
2063		-	(4) Within the time set forth in the Arkansas Rules of Civil 19
2064		-	Procedure, the owner or interest holder of the seized property shall file 20
2065		-	with the circuit clerk a verified answer to the complaint that shall include: 21
2066		-	(A) A statement describing the seized property and the 22
2067		-	owner's interest or interest holder's interest in the seized property with 23
2068		-	supporting documents to establish the owner's interest or interest holder's 24
2069		-	interest; 25
2070		-	(B) A certification by the owner or interest holder 26
2071		-	stating that he or she has read the document and that it has not been filed 27
2072		-	for an improper purpose; 28
2073		-	(C) A statement setting forth any defense to forfeiture; 29
2074		-	and 30
2075		-	(D) The address at which the owner or interest holder will 31
2076		-	accept mail. 32
2077		-	(5)(A) If the owner or interest holder fails to file an answer, 33
2078		-	the prosecuting attorney may move for default judgment under the Arkansas 34
2079		-	Rules of Civil Procedure. 35
2080		-	(B)(i) If a timely answer has been filed, the prosecuting 36 As Engrossed: S4/2/25 H4/8/25 SB533
2081		-
2082		-	53 04-08-2025 10:08:29 JMB498
2083		-
2084		-
2085		-	attorney has the burden of proving by a preponderance of the evidence that 1
2086		-	the seized property should be forfeited. 2
2087		-	(ii) After the prosecuting attorney has presented 3
2088		-	proof, an owner or interest holder of the property seized is allowed to 4
2089		-	present evidence showing why the seized property should not be forfeited. 5
2090		-	(iii) If the circuit court determines that grounds 6
2091		-	for forfeiting the seized property exist and that a defense to forfeiture has 7
2092		-	not been established by the owner or interest holder, the circuit court shall 8
2093		-	enter an order under this section. However, if the circuit court determines 9
2094		-	either that the prosecuting attorney has failed to establish that grounds for 10
2095		-	forfeiting the seized property exist or that the owner or interest holder has 11
2096		-	established a defense to forfeiture, the court shall order that the seized 12
2097		-	property be immediately returned to the owner or interest holder. 13
2098		-	(l)(1) If the circuit court having jurisdiction over the seized 14
2099		-	property finds upon a hearing by a preponderance of the evidence that grounds 15
2100		-	for a forfeiture exist under this subchapter, the circuit court shall enter 16
2101		-	an order: 17
2102		-	(A) To permit the law enforcement agency or prosecuting 18
2103		-	attorney to retain the seized property for law enforcement or prosecutorial 19
2104		-	purposes, subject to the following provisions: 20
2105		-	(i)(a) Seized property may not be retained for 21
2106		-	official use for more than three (3) years, unless the circuit court finds 22
2107		-	that the seized property has been used for law enforcement or prosecutorial 23
2108		-	purposes and authorizes continued use for those purposes on an annual basis. 24
2109		-	(b) At the end of the retention period, the 25
2110		-	seized property shall be sold and eighty percent (80%) of the proceeds shall 26
2111		-	be deposited into the tobacco control fund of the retaining law enforcement 27
2112		-	agency or prosecuting attorney, and twenty percent (20%) of the proceeds 28
2113		-	shall be deposited into the State Treasury as special revenues to be credited 29
2114		-	to the Special State Assets Forfeiture Fund. 30
2115		-	(c) The retaining law enforcement agency or 31
2116		-	prosecuting attorney may sell the retained seized property during the time 32
2117		-	allowed for retention. However, the proceeds of the sale shall be distributed 33
2118		-	as set forth in subdivision (l)(1)(A)(i)(b) of this section; 34
2119		-	(ii) If the circuit court determines that retained 35
2120		-	seized property has been used for personal use or by non -law enforcement 36 As Engrossed: S4/2/25 H4/8/25 SB533
2121		-
2122		-	54 04-08-2025 10:08:29 JMB498
2123		-
2124		-
2125		-	personnel for non-law enforcement purposes, the circuit court shall order the 1
2126		-	seized property to be sold under § 5 -5-101(e) and (f), and the proceeds shall 2
2127		-	be deposited into the State Treasury as special revenues to be credited to 3
2128		-	the Special State Assets Forfeiture Fund; 4
2129		-	(iii)(a) A law enforcement agency may use forfeited 5
2130		-	property or money if the circuit court's order specifies that the forfeited 6
2131		-	property or money is forfeited to the prosecuting attorney, sheriff, chief of 7
2132		-	police, Division of Arkansas State Police, director, or Arkansas Highway 8
2133		-	Police Division of the Arkansas Department of Transportation. 9
2134		-	(b) After the order, the prosecuting attorney, 10
2135		-	sheriff, chief of police, Division of Arkansas State Police, director, or 11
2136		-	Arkansas Highway Police Division of the Arkansas Department of Transportation 12
2137		-	shall maintain an inventory of the forfeited property or money, be 13
2138		-	accountable for the forfeited property or money, and be subject to 14
2139		-	subdivision (j)(5) of this section with respect to the forfeited property or 15
2140		-	money; 16
2141		-	(iv)(a) An aircraft is forfeited to the office of 17
2142		-	the director and may be used only for tobacco, vapor product, alternative 18
2143		-	nicotine product, or e -liquid product smuggling interdiction efforts within 19
2144		-	the discretion of the director. 20
2145		-	(b) However, if the director determines that 21
2146		-	the aircraft should be sold, the proceeds of the sale shall be distributed as 22
2147		-	set forth in subdivision (l)(1)(A)(i)(b) of this section; 23
2148		-	(v) A firearm not retained for official use shall be 24
2149		-	disposed of in accordance with state and federal law; and 25
2150		-	(vi) A tobacco product, vapor product, alternative 26
2151		-	nicotine product, or e -liquid product shall be destroyed pursuant to a court 27
2152		-	order; 28
2153		-	(B)(i) To sell seized property that is not required by law 29
2154		-	to be destroyed and that is not harmful to the public. 30
2155		-	(ii) Seized property described in subdivision 31
2156		-	(l)(1)(B)(i) of this section shall be sold at a public sale by the retaining 32
2157		-	law enforcement agency or prosecuting attorney under § 5 -5-101(e) and (f); or 33
2158		-	(C) To transfer a motor vehicle to a school district for 34
2159		-	use in a driver education course. 35
2160		-	(2) Disposition of forfeited property under this subsection is 36 As Engrossed: S4/2/25 H4/8/25 SB533
2161		-
2162		-	55 04-08-2025 10:08:29 JMB498
2163		-
2164		-
2165		-	subject to the need to retain the forfeited property as evidence in any 1
2166		-	related proceeding. 2
2167		-	(3) Within three (3) business days after the entry of the order, 3
2168		-	the circuit clerk shall forward to the director copies of the confiscation 4
2169		-	report, the circuit court's order, and other documentation detailing the 5
2170		-	disposition of the seized property. 6
2171		-	(m)(1)(A) Subject to subdivision (j)(5) of this section, the proceeds 7
2172		-	of sales conducted under this section and moneys forfeited or obtained by 8
2173		-	judgment or settlement under this subchapter shall be deposited and 9
2174		-	distributed in the manner provided in this subsection. 10
2175		-	(B) Moneys received from a federal forfeiture for a 11
2176		-	violation of this subchapter shall be deposited and distributed under this 12
2177		-	section. 13
2178		-	(2)(A) The proceeds of a sale and moneys forfeited or obtained 14
2179		-	by judgment or settlement under this subchapter shall be deposited into the 15
2180		-	asset forfeiture fund of the prosecuting attorney and is subject to the 16
2181		-	following provisions: 17
2182		-	(i) If, during a calendar year, the aggregate amount 18
2183		-	of moneys deposited into the asset forfeiture fund exceeds twenty thousand 19
2184		-	dollars ($20,000) per county, the prosecuting attorney, within fourteen (14) 20
2185		-	days after that time, shall notify the circuit judges in the judicial 21
2186		-	district and the director; 22
2187		-	(ii) Subsequent to the notification set forth in this 23
2188		-	section, twenty percent (20%) of the proceeds of an additional sale and 24
2189		-	additional moneys forfeited or obtained by judgment or settlement under this 25
2190		-	subchapter in the same calendar year shall be deposited into the State 26
2191		-	Treasury as special revenues to be credited to the Special State Assets 27
2192		-	Forfeiture Fund, and the remainder shall be deposited into the asset 28
2193		-	forfeiture fund of the prosecuting attorney; 29
2194		-	(iii) Failure by the prosecuting attorney to comply 30
2195		-	with the notification requirement set forth in this section renders the 31
2196		-	prosecuting attorney and an entity eligible to receive forfeited moneys or 32
2197		-	property from the prosecuting attorney ineligible to receive forfeited moneys 33
2198		-	or property, except as provided in this section; and 34
2199		-	(iv) Twenty percent (20%) of moneys in excess of 35
2200		-	twenty thousand dollars ($20,000) that have been retained but not reported as 36 As Engrossed: S4/2/25 H4/8/25 SB533
2201		-
2202		-	56 04-08-2025 10:08:29 JMB498
2203		-
2204		-
2205		-	required by this section are subject to recovery for deposit into the Special 1
2206		-	State Assets Forfeiture Fund. 2
2207		-	(B) The prosecuting attorney shall administer expenditures 3
2208		-	from the asset forfeiture fund, which is subject to audit by Arkansas 4
2209		-	Legislative Audit. Moneys distributed from the asset forfeiture fund shall be 5
2210		-	used only for law enforcement and prosecutorial purposes. Moneys in the asset 6
2211		-	forfeiture fund shall be distributed in the following order: 7
2212		-	(i) For the satisfaction of a bona fide security 8
2213		-	interest or lien; 9
2214		-	(ii) For payment of a proper expense of the 10
2215		-	proceeding for forfeiture and sale, including expenses of seizure, 11
2216		-	maintenance of custody, advertising, and court costs; 12
2217		-	(iii) Any balance under three hundred fifty thousand 13
2218		-	dollars ($350,000) shall be distributed proportionally so as to reflect 14
2219		-	generally the contribution of the appropriate local or state law enforcement 15
2220		-	or prosecutorial agency's participation in any activity that led to the 16
2221		-	seizure or forfeiture of the property or deposit of moneys under this 17
2222		-	subchapter; and 18
2223		-	(iv) Any balance over three hundred fifty thousand 19
2224		-	dollars ($350,000) shall be forwarded to the director to be transferred to 20
2225		-	the State Treasury for deposit into the Special State Assets Forfeiture Fund 21
2226		-	for distribution under this section. 22
2227		-	(C)(i) For a forfeiture in an amount greater than three 23
2228		-	hundred fifty thousand dollars ($350,000) from which expenses are paid for a 24
2229		-	proceeding for forfeiture and sale under this section, an itemized accounting 25
2230		-	of the expenses shall be delivered to the director within ten (10) calendar 26
2231		-	days after the distribution of the funds. 27
2232		-	(ii) The itemized accounting shall include the 28
2233		-	expenses paid, to whom paid, and for what purposes the expenses were paid. 29
2234		-	(3)(A) Moneys received by a prosecuting attorney or law 30
2235		-	enforcement agency from a federal forfeiture for a violation of this 31
2236		-	subchapter shall be deposited and maintained in a separate account. 32
2237		-	(B) However, a balance over three hundred fifty thousand 33
2238		-	dollars ($350,000) shall be distributed as required under this section. 34
2239		-	(4) Other moneys shall not be maintained in the account except 35
2240		-	for interest income generated by the account. 36 As Engrossed: S4/2/25 H4/8/25 SB533
2241		-
2242		-	57 04-08-2025 10:08:29 JMB498
2243		-
2244		-
2245		-	(5) Moneys in the account shall only be used for law enforcement 1
2246		-	and prosecutorial purposes consistent with governing federal law. 2
2247		-	(6) The account is subject to audit by Arkansas Legislative 3
2248		-	Audit. 4
2249		-	(7) A balance over three hundred fifty thousand dollars 5
2250		-	($350,000) shall be transferred to the State Treasury for deposit into the 6
2251		-	Special State Assets Forfeiture Fund in which it shall be maintained 7
2252		-	separately and distributed consistently with governing federal law and upon 8
2253		-	the advice of the director. 9
2254		-	(n) In personam jurisdiction may be based on a person's presence in 10
2255		-	the state or on his or her conduct in the state, as set out in § 16 -4-101(C), 11
2256		-	and is subject to the following additional provisions: 12
2257		-	(1) A temporary restraining order under this section may be 13
2258		-	entered ex parte on application of the state upon a showing that: 14
2259		-	(A) There is probable cause to believe that the property 15
2260		-	with respect to which the order is sought is subject to forfeiture under this 16
2261		-	section; and 17
2262		-	(B) Notice of the action would jeopardize the availability 18
2263		-	of the property for forfeiture; 19
2264		-	(2)(A) Notice of the entry of a temporary restraining order and 20
2265		-	an opportunity for hearing shall be afforded to a person known to have an 21
2266		-	interest in the property. 22
2267		-	(B) The hearing shall be held at the earliest possible 23
2268		-	date consistent with Rule 65 of the Arkansas Rules of Civil Procedure and is 24
2269		-	limited to the issues of whether: 25
2270		-	(i) There is a probability that the state will 26
2271		-	prevail on the issue of forfeiture and that failure to enter the temporary 27
2272		-	restraining order will result in the property's being destroyed, conveyed, 28
2273		-	alienated, encumbered, disposed of, received, removed from the jurisdiction 29
2274		-	of the circuit court, concealed, or otherwise made unavailable for 30
2275		-	forfeiture; and 31
2276		-	(ii) The need to preserve the availability of 32
2277		-	property through the entry of the requested temporary restraining order 33
2278		-	outweighs the hardship on an owner or interest holder against whom the 34
2279		-	temporary restraining order is to be entered; 35
2280		-	(3) The state has the burden of proof by a preponderance of the 36 As Engrossed: S4/2/25 H4/8/25 SB533
2281		-
2282		-	58 04-08-2025 10:08:29 JMB498
2283		-
2284		-
2285		-	evidence to show that the defendant's property is subject to forfeiture; 1
2286		-	(4)(A) On a determination of liability of a person for conduct 2
2287		-	giving rise to forfeiture under this section, the circuit court shall enter a 3
2288		-	judgment of forfeiture of the property subject to forfeiture as alleged in 4
2289		-	the complaint and may authorize the prosecuting attorney or a law enforcement 5
2290		-	officer to seize property subject to forfeiture under this section not 6
2291		-	previously seized or not then under seizure. 7
2292		-	(B) The order of forfeiture shall be consistent with 8
2293		-	subsection (l) of this section. 9
2294		-	(C) In connection with the judgment, on application of the 10
2295		-	state, the circuit court may enter an appropriate order to protect the 11
2296		-	interest of the state in property ordered forfeited; and 12
2297		-	(5) Subsequent to the finding of liability and order of 13
2298		-	forfeiture, the following procedures apply: 14
2299		-	(A) The attorney for the state shall give notice of 15
2300		-	pending forfeiture in the manner provided in Rule 4 of the Arkansas Rules of 16
2301		-	Civil Procedure to an owner or interest holder who has not previously been 17
2302		-	given notice; 18
2303		-	(B) An owner of or interest holder in property that has 19
2304		-	been ordered forfeited and whose claim is not precluded may file a claim 20
2305		-	within thirty (30) days after initial notice of pending forfeiture or after 21
2306		-	notice under Rule 4 of the Arkansas Rules of Civil Procedure, whichever is 22
2307		-	earlier; and 23
2308		-	(C) The circuit court may amend the in personam order of 24
2309		-	forfeiture if the circuit court determines that a claimant has established 25
2310		-	that he or she has an interest in the property and that the interest is 26
2311		-	exempt under this section. 27
2312		-	(o) The circuit court shall order the forfeiture of other property of 28
2313		-	a claimant or defendant up to the value of the claimant's or defendant's 29
2314		-	property found by the circuit court to be subject to forfeiture under this 30
2315		-	section if any of the forfeitable property had remained under the control or 31
2316		-	custody of the claimant or defendant and: 32
2317		-	(1) Cannot be located; 33
2318		-	(2) Was transferred or conveyed to, sold to, or deposited with a 34
2319		-	third party; 35
2320		-	(3) Is beyond the jurisdiction of the circuit court; 36 As Engrossed: S4/2/25 H4/8/25 SB533
2321		-
2322		-	59 04-08-2025 10:08:29 JMB498
2323		-
2324		-
2325		-	(4) Was substantially diminished in value while not in the 1
2326		-	actual physical custody of the seizing law enforcement agency; 2
2327		-	(5) Was commingled with other property that cannot be divided 3
2328		-	without difficulty; or 4
2329		-	(6) Is subject to interest exempted from forfeiture under this 5
2330		-	subchapter. 6
2331		-	(p)(1) There is created on the books of law enforcement agencies and 7
2332		-	prosecuting attorneys a tobacco control fund. 8
2333		-	(2) The fund shall consist of moneys obtained under this section 9
2334		-	and other revenue as may be provided by law or ordinance. 10
2335		-	(3) Moneys in the tobacco control fund shall be appropriated on 11
2336		-	a continuing basis and are not subject to the Revenue Stabilization Law, § 12
2337		-	19-5-101 et seq. 13
2338		-	(4)(A) The fund shall be used for law enforcement and 14
2339		-	prosecutorial purposes. 15
2340		-	(B) Each prosecuting attorney shall submit to the Director 16
2341		-	of Arkansas Tobacco Control on or before June 30 of each year a report 17
2342		-	detailing moneys received and expenditures made from the tobacco control fund 18
2343		-	during the preceding twelve -month period. 19
2344		-	(5) The law enforcement agencies and prosecuting attorneys shall 20
2345		-	submit to the director on or before June 30 of each year a report detailing 21
2346		-	any moneys received and expenditures made from the tobacco control fund 22
2347		-	during the preceding twelve -month period. 23
2348		-	(6) Moneys from the tobacco control fund may not supplant other 24
2349		-	local, state, or federal funds. 25
2350		-	(7) The tobacco control fund is subject to audit by Arkansas 26
2351		-	Legislative Audit. 27
2352		-	28
2353		-	SECTION 14. Arkansas Code § 26 -57-249(b), effective until the 29
2354		-	contingency in Acts 2023, No. 629, § 17, is met, concerning the procedure for 30
2355		-	destruction of products upon conviction, is amended to read as follows: 31
2356		-	(b) Upon an administrative finding of guilty of any person charged 32
2357		-	with a violation of a state tobacco product, vapor product, alternative 33
2358		-	nicotine product, or e-liquid product, or consumable hemp product law or rule 34
2359		-	in a proceeding before the Arkansas Tobacco Control Board where the 35
2360		-	investigation resulted in the seizure of tobacco products, vapor products, 36 As Engrossed: S4/2/25 H4/8/25 SB533
2361		-
2362		-	60 04-08-2025 10:08:29 JMB498
2363		-
2364		-
2365		-	alternative nicotine products, or e-liquid products, or consumable hemp 1
2366		-	products, the board shall issue an order to destroy the tobacco products, 2
2367		-	vapor products, alternative nicotine products, or e-liquid products, or 3
2368		-	consumable hemp products confiscated by Arkansas Tobacco Control or by any 4
2369		-	state, county, or municipal officer in this state. 5
2370		-	6
2371		-	SECTION 15. Arkansas Code § 26 -57-249, effective if the contingency in 7
2372		-	Acts 2023, No. 629, § 17, is met, is repealed. 8
2373		-	26-57-249. Destruction of products upon conviction — Procedure. 9
2374		-	(a) Upon a criminal conviction of a person charged with a violation of 10
2375		-	a tobacco product, vapor product, alternative nicotine product, or e -liquid 11
2376		-	product law or rule where the investigation resulted in the seizure of 12
2377		-	tobacco products, vapor products, alternative nicotine products, or e -liquid 13
2378		-	products, the court shall issue an order to destroy the tobacco products, 14
2379		-	vapor products, alternative nicotine products, or e -liquid products 15
2380		-	confiscated by Arkansas Tobacco Control or by any state, county, or municipal 16
2381		-	officer in this state. 17
2382		-	(b) Upon an administrative finding of guilty of any person charged 18
2383		-	with a violation of a state tobacco product, vapor product, alternative 19
2384		-	nicotine product, e-liquid product, or hemp -derived product law or rule in a 20
2385		-	proceeding before the Arkansas Tobacco Control Board where the investigation 21
2386		-	resulted in the seizure of tobacco products, vapor products, alternative 22
2387		-	nicotine products, e -liquid products, or hemp -derived products, the board 23
2388		-	shall issue an order to destroy the tobacco products, vapor products, 24
2389		-	alternative nicotine products, e -liquid products, or hemp -derived products 25
2390		-	confiscated by Arkansas Tobacco Control or by any state, county, or municipal 26
2391		-	officer in this state. 27
2392		-	(c) Every court of record in this state shall notify the Director of 28
2393		-	Arkansas Tobacco Control of the disposition made of each case in the court as 29
2394		-	to whether the defendant was convicted or acquitted. 30
2395		-	(d) Upon application of the director, the board or the court issuing a 31
2396		-	destruction order may instead release the tobacco products, vapor products, 32
2397		-	alternative nicotine products, or e -liquid products to the use and benefit of 33
2398		-	Arkansas Tobacco Control for suitable law enforcement or training purposes. 34
2399		-	(e)(1) If a court or the board issues a destruction order, the person 35
2400		-	charged with the violation is responsible for any destruction fees incurred 36 As Engrossed: S4/2/25 H4/8/25 SB533
2401		-
2402		-	61 04-08-2025 10:08:29 JMB498
2403		-
2404		-
2405		-	by Arkansas Tobacco Control. 1
2406		-	(2) Destruction fees may vary but shall be determined by the 2
2407		-	current industry standard for the destruction of tobacco products, vapor 3
2408		-	products, alternative nicotine products, and e -liquid products. 4
2409		-	5
2410		-	SECTION 16. Arkansas Code § 26 -57-255(g)(3), effective until the 6
2411		-	contingency in Acts 2023, No. 629, § 17, is met, concerning the powers and 7
2412		-	duties of the Arkansas Tobacco Control Board, is amended to read as follows: 8
2413		-	(3)(A) Conduct public hearings when appropriate regarding a 9
2414		-	permit authorized under this subchapter or in violation of this subchapter, 10
2415		-	the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-501 11
2416		-	et seq., or any other federal, state, or local statute, ordinance, rule, or 12
2417		-	regulation concerning the sale of tobacco products, vapor products, 13
2418		-	alternative nicotine products, or e-liquid products, or consumable hemp 14
2419		-	products to minors, or the rules promulgated by Arkansas Tobacco Control. 15
2420		-	(B) After notice and hearing held in accordance with the 16
2421		-	Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 17
2422		-	finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-18
2423		-	701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 19
2424		-	Tobacco Control, the board may suspend or revoke any or all permits issued by 20
2425		-	the director to any person. 21
2426		-	(C) The board may levy a civil penalty in an amount not to 22
2427		-	exceed five thousand dollars ($5,000) for each violation against a person 23
2428		-	found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 24
2429		-	§ 4-75-701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 25
2430		-	Tobacco Control. 26
2431		-	(D) Each day of a violation is a separate violation. 27
2432		-	(E) A civil penalty under subdivision (g)(3)(C) of this 28
2433		-	section is in addition to any penalties levied by the board under § 26 -57-29
2434		-	248. 30
2435		-	(F) In conducting a hearing under this subdivision (g)(3), 31
2436		-	the board may examine or cause to be examined under oath any witness and the 32
2437		-	books and records of a permitted person or other person; 33
2438		-	34
2439		-	SECTION 17. Arkansas Code § 26 -57-255, effective if the contingency in 35
2440		-	Acts 2023, No. 629, § 17, is met, is repealed. 36 As Engrossed: S4/2/25 H4/8/25 SB533
2441		-
2442		-	62 04-08-2025 10:08:29 JMB498
2443		-
2444		-
2445		-	26-57-255. Arkansas Tobacco Control Board — Creation — Definition.1
2446		-	(a) There is created the Arkansas Tobacco Control Board to consist of 2
2447		-	the following eight (8) members appointed by the Governor: 3
2448		-	(1) Two (2) members of the board shall be wholesalers of tobacco 4
2449		-	products, vapor products, alternative nicotine products, or e -liquid 5
2450		-	products; 6
2451		-	(2) Two (2) members of the board shall be retailers of tobacco 7
2452		-	products, vapor products, alternative nicotine products, or e -liquid 8
2453		-	products; and 9
2454		-	(3) Four (4) members of the board shall be members of the public 10
2455		-	at large who are not public employees or officials, at least one (1) of whom 11
2456		-	shall be an African-American, and two (2) of whom shall be appointed by the 12
2457		-	Governor after consulting the Arkansas Medical Society, Inc. and subject to 13
2458		-	confirmation by the Senate. 14
2459		-	(b) The Governor shall designate which member of the board shall act 15
2460		-	as chair and that person shall serve as chair for two (2) years unless his or 16
2461		-	her membership on the board ceases prior to the end of the two -year period. 17
2462		-	(c)(1) All members of the board shall be residents of the State of 18
2463		-	Arkansas and confirmed by the Senate. 19
2464		-	(2) The term of office shall be five (5) years. 20
2465		-	(d)(1) A minimum of five (5) members is required for a quorum. 21
2466		-	(2)(A) All action by the board shall be by a majority vote of 22
2467		-	the board members present at the regular or special meeting, and the board 23
2468		-	may take no official action in connection with a matter except at a regular 24
2469		-	or special meeting. 25
2470		-	(B) In the event of a tie vote of the members of the 26
2471		-	board, the Director of Arkansas Tobacco Control may cast the deciding vote. 27
2472		-	(e) A person who is not a citizen of the United States and who has not 28
2473		-	resided in the State of Arkansas for at least two (2) consecutive years 29
2474		-	immediately preceding the date of appointment shall not be appointed to the 30
2475		-	board. 31
2476		-	(f) Each member of the board and the director shall take and subscribe 32
2477		-	to an oath that he or she will support and enforce this subchapter, the 33
2478		-	tobacco control laws of this state, the Arkansas Constitution, and the United 34
2479		-	States Constitution. 35
2480		-	(g) The board shall: 36 As Engrossed: S4/2/25 H4/8/25 SB533
2481		-
2482		-	63 04-08-2025 10:08:29 JMB498
2483		-
2484		-
2485		-	(1) Act as the adjudicatory body for Arkansas Tobacco Control; 1
2486		-	(2) Have responsibility for approving the issuance, suspension, 2
2487		-	and revocation of the permits enumerated in § 26 -57-219; 3
2488		-	(3)(A) Conduct public hearings when appropriate regarding a 4
2489		-	permit authorized under this subchapter or in violation of this subchapter, 5
2490		-	the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-401 6
2491		-	et seq., or any other federal, state, or local statute, ordinance, rule, or 7
2492		-	regulation concerning the sale of tobacco products, vapor products, 8
2493		-	alternative nicotine products, e -liquid products, or hemp -derived products to 9
2494		-	minors or the rules promulgated by Arkansas Tobacco Control. 10
2495		-	(B) After notice and hearing held in accordance with the 11
2496		-	Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 12
2497		-	finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-13
2498		-	701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 14
2499		-	Tobacco Control, the board may suspend or revoke any or all permits issued by 15
2500		-	the director to any person. 16
2501		-	(C) The board may levy a civil penalty in an amount not to 17
2502		-	exceed five thousand dollars ($5,000) for each violation against a person 18
2503		-	found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 19
2504		-	§ 4-75-701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 20
2505		-	Tobacco Control. 21
2506		-	(D) Each day of a violation is a separate violation. 22
2507		-	(E) A civil penalty under subdivision (g)(3)(C) of this 23
2508		-	section is in addition to any penalties levied by the board under § 26 -57-24
2509		-	248. 25
2510		-	(F) In conducting a hearing under this subdivision (g)(3), 26
2511		-	the board may examine or cause to be examined under oath any witness and the 27
2512		-	books and records of a permitted person or other person; 28
2513		-	(4) When requested by the written petition of at least three (3) 29
2514		-	interested parties, conduct public hearings to receive testimony regarding 30
2515		-	the facts relevant to the issuance of a permit under this subchapter; and 31
2516		-	(5)(A) Not have authority in criminal prosecutions or the 32
2517		-	assessment or collection of any taxes. 33
2518		-	(B) However, the board shall refuse to approve the 34
2519		-	issuance or renewal of a permit issued by the director for the failure to pay 35
2520		-	taxes or fees imposed on tobacco products or any permit fees imposed under 36 As Engrossed: S4/2/25 H4/8/25 SB533
2521		-
2522		-	64 04-08-2025 10:08:29 JMB498
2523		-
2524		-
2525		-	this subchapter or any other state or local taxes. 1
2526		-	(h)(1) The board may assess penalties for a violation of § 5 -27-227 2
2527		-	according to the following schedule: 3
2528		-	(A) For a first violation within a forty -eight-month 4
2529		-	period, a civil penalty not to exceed two hundred fifty dollars ($250); 5
2530		-	(B) For a second violation within a forty -eight-month 6
2531		-	period, a civil penalty not to exceed five hundred dollars ($500) and 7
2532		-	suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 8
2533		-	two (2) days; 9
2534		-	(C) For a third violation within a forty -eight-month 10
2535		-	period, a civil penalty not to exceed one thousand dollars ($1,000) and 11
2536		-	suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 12
2537		-	seven (7) days; 13
2538		-	(D) For a fourth or subsequent violation within a forty -14
2539		-	eight-month period, a civil penalty not to exceed two thousand dollars 15
2540		-	($2,000) and suspension of the permit enumerated in § 26 -57-219 for a period 16
2541		-	not to exceed fourteen (14) days; and 17
2542		-	(E) For a fifth or subsequent violation within a forty -18
2543		-	eight-month period, in addition to the other penalties provided under this 19
2544		-	subsection, the permit enumerated in § 26 -57-219 may be revoked. 20
2545		-	(2)(A) A penalty under this subsection shall not be imposed on a 21
2546		-	retailer or an agent or employee of a retailer who can establish an 22
2547		-	affirmative defense that before the date of the violation the retailer or 23
2548		-	agent or employee of the retailer furnishing the tobacco products, vapor 24
2549		-	products, alternative nicotine products, e -liquid products, or cigarette 25
2550		-	papers reasonably relied on proof of age that identified the person receiving 26
2551		-	the tobacco products, vapor products, alternative nicotine products, e -liquid 27
2552		-	products, or cigarette papers as not being a minor. 28
2553		-	(B) As used in this subsection, “proof of age” means valid 29
2554		-	documentation issued by a governmental agency containing the person's 30
2555		-	photograph, date of birth, and an expiration date. 31
2556		-	(3)(A) For a corporation or business with more than one (1) 32
2557		-	retail location, to determine the number of accumulated violations for 33
2558		-	purposes of the penalty schedule stated in this subsection, violations of § 34
2559		-	5-27-227 by one (1) retail location shall not be accumulated against other 35
2560		-	retail locations of that same corporation or business. 36 As Engrossed: S4/2/25 H4/8/25 SB533
2561		-
2562		-	65 04-08-2025 10:08:29 JMB498
2563		-
2564		-
2565		-	(B) For a retail location, for purposes of the penalty 1
2566		-	schedule stated in this subsection, violations accumulated and assessed 2
2567		-	against a prior owner of the retail location shall not be accumulated against 3
2568		-	a new owner of the same retail location unless approved by the board. 4
2569		-	5
2570		-	SECTION 18. Arkansas Code § 26-57-256(a)(2) and (3), effective until 6
2571		-	the contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 7
2572		-	Arkansas Tobacco Control, are amended to read as follows: 8
	1613	+	products, vapor products, alternative nicotine products, e -liquid products, 15
	1614	+	or hemp-derived products found in the possession of a person dealing in, or a 16
	1615	+	consumer of, tobacco products, vapor products, alternative nicotine products, 17
	1616	+	e-liquid products, or hemp -derived products if: 18
	1617	+	(1) Prima facie evidence exists that the full amount of excise 19
	1618	+	tax due on the tobacco products has not been paid to the Secretary of the 20
	1619	+	Department of Finance and Administration; 21
	1620	+	(2) Tobacco products, vapor products, alternative nicotine 22
	1621	+	products, or e-liquid products are in the possession of a wholesaler who does 23
	1622	+	not possess a current Arkansas wholesale permit; 24
	1623	+	(3) A retail establishment does not possess a current Arkansas 25
	1624	+	retail permit; 26
	1625	+	(4) The tobacco products, vapor products, alternative nicotine 27
	1626	+	products, or e-liquid products have been offered for sale to the public at 28
	1627	+	another location without a current Arkansas retail permit; or 29
	1628	+	(5) Hemp-derived products are possessed, sold, or offered for 30
	1629	+	sale in violation of § 20 -56-401 et seq. 31
	1630	+	(c) Property, including money, used to facilitate a violation of this 32
	1631	+	subchapter or the Unfair Cigarette Sales Act, § 4 -75-701 et seq., may be 33
	1632	+	seized and forfeited to the state. 34
	1633	+	(d)(1) A prosecuting attorney may institute a civil action against a 35
	1634	+	person who is convicted of a criminal violation under this subchapter or the 36 SB533
	1635	+
	1636	+	44 03/20/2025 11:19:12 AM JMB498
	1637	+	Unfair Cigarette Sales Act, § 4 -75-701 et seq., to obtain a judgment for: 1
	1638	+	(A) Damages in an amount equal to the value of the 2
	1639	+	property, funds, or a monetary instrument involved in the violation; 3
	1640	+	(B) The proceeds acquired by a person involved in the 4
	1641	+	enterprise or by reason of conduct in furtherance of the violation; and 5
	1642	+	(C) Costs incurred by Arkansas Tobacco Control in the 6
	1643	+	investigation, prosecution, and adjudication of criminal, civil, and 7
	1644	+	administrative proceedings. 8
	1645	+	(2) The standard of proof in an action brought under subdivision 9
	1646	+	(d)(1) of this section is preponderance of the evidence. 10
	1647	+	(e) The following are subject to forfeiture under this section upon 11
	1648	+	order by a circuit court: 12
	1649	+	(1) Tobacco products, vapor products, alternative nicotine 13
	1650	+	products, or e-liquid products distributed, dispensed, or acquired in 14
	1651	+	violation of this subchapter; 15
	1652	+	(2) Raw materials, products, or equipment used or intended for 16
	1653	+	use in manufacturing, compounding, processing, delivering, importing, or 17
	1654	+	exporting a tobacco product, vapor product, alternative nicotine product, or 18
	1655	+	e-liquid product in violation of this subchapter; 19
	1656	+	(3) Property that is used or intended for use as a container for 20
	1657	+	property described in subdivision (e)(1) or subdivision (e)(2) of this 21
	1658	+	section; 22
	1659	+	(4)(A) Except as provided in subdivision (e)(4)(B) of this 23
	1660	+	section, a conveyance, including an aircraft, vehicle, or vessel, that is 24
	1661	+	used or intended to be used to transport or in any manner to facilitate the 25
	1662	+	transportation for the purpose of sale or receipt of property described in 26
	1663	+	subdivision (e)(1) or subdivision (e)(2) of this section. 27
	1664	+	(B)(i) A conveyance used by a person as a common carrier 28
	1665	+	in the transaction of business as a common carrier is not subject to 29
	1666	+	forfeiture under this section unless it appears that the owner or other 30
	1667	+	person in charge of the conveyance is a consenting party or privy to a 31
	1668	+	violation of this subchapter. 32
	1669	+	(ii) A conveyance is not subject to forfeiture under 33
	1670	+	this section by reason of an act or omission established by the owner of the 34
	1671	+	conveyance to have been committed or omitted without his or her knowledge or 35
	1672	+	consent. 36 SB533
	1673	+
	1674	+	45 03/20/2025 11:19:12 AM JMB498
	1675	+	(C) Upon a showing described in subdivision (e)(4)(B)(i) 1
	1676	+	of this section by the owner or interest holder of a conveyance, the 2
	1677	+	conveyance may nevertheless be forfeited if the prosecuting attorney 3
	1678	+	establishes that the owner or interest holder either knew or should 4
	1679	+	reasonably have known that the conveyance would be used to transport or in 5
	1680	+	any manner to facilitate the transportation for the purpose of sale or 6
	1681	+	receipt of property described in subdivision (e)(1) or subdivision (e)(2) of 7
	1682	+	this section. 8
	1683	+	(D) A conveyance encumbered by a bona fide security 9
	1684	+	interest is subject to the interest of the secured party if the secured party 10
	1685	+	neither had knowledge of nor consented to an act or omission in violation of 11
	1686	+	this subchapter; 12
	1687	+	(5) A book, record, or research product or material, including a 13
	1688	+	formula, microfilm, tape, or data that is used or intended for use in 14
	1689	+	violation of this subchapter; 15
	1690	+	(6)(A) Except as provided in subdivision (e)(6)(B) of this 16
	1691	+	section, a thing of value, including: 17
	1692	+	(i) Firearms purchased from the proceeds of the sale 18
	1693	+	of untaxed tobacco products, vapor products, alternative nicotine products, 19
	1694	+	or e-liquid products in violation of this subchapter or used in furtherance 20
	1695	+	of a criminal offense as described in § 26 -57-245; 21
	1696	+	(ii) Proceeds or profits traceable to an exchange 22
	1697	+	described in subdivision (e)(6)(A)(i) of this section; and 23
	1698	+	(iii) Money, negotiable instruments, or security used 24
	1699	+	or intended to be used to facilitate a violation of this subchapter. 25
	1700	+	(B) Property shall not be forfeited under subdivision 26
	1701	+	(e)(6)(A) of this section to the extent of the interest of an owner by reason 27
	1702	+	of an act or omission established by him or her by a preponderance of the 28
	1703	+	evidence to have been committed or omitted without his or her knowledge or 29
	1704	+	consent; 30
	1705	+	(7)(A) Money, coins, or currency found in close proximity to a 31
	1706	+	forfeitable tobacco product, vapor product, alternative nicotine product, or 32
	1707	+	e-liquid product or a forfeitable record of an importation of a tobacco 33
	1708	+	product, vapor product, alternative nicotine product, or e -liquid product is 34
	1709	+	presumed to be forfeitable under this section. 35
	1710	+	(B) The burden of proof is upon a claimant of the money, 36 SB533
	1711	+
	1712	+	46 03/20/2025 11:19:12 AM JMB498
	1713	+	coins, or currency to rebut the presumption in subdivision (e)(7)(A) of this 1
	1714	+	section by a preponderance of the evidence; and 2
	1715	+	(8)(A) Except as provided in subdivision (e)(8)(B) of this 3
	1716	+	section, real property if it substantially assisted in, facilitated in any 4
	1717	+	manner, or was used or intended for use in the commission of any act 5
	1718	+	prohibited by this subchapter. 6
	1719	+	(B)(i) Real property is not subject to forfeiture under 7
	1720	+	this section by reason of an act or omission established by the owner of the 8
	1721	+	real property by a preponderance of the evidence to have been committed or 9
	1722	+	omitted without his or her knowledge or consent. 10
	1723	+	(ii) A forfeiture of real property encumbered by a 11
	1724	+	mortgage or other lien is subject to the interest of the secured party if the 12
	1725	+	secured party neither had knowledge of nor consented to an act or omission in 13
	1726	+	violation of this subchapter. 14
	1727	+	(iii) If the circuit court finds by a preponderance 15
	1728	+	of the evidence that grounds for a forfeiture exist under this section, the 16
	1729	+	court shall enter an order requiring the forfeiture of the real property. 17
	1730	+	(C) Upon an order of forfeiture of real property, the 18
	1731	+	order shall be filed on the day issued and shall have prospective effect. 19
	1732	+	(D) A forfeiture of real property does not affect the 20
	1733	+	title of a bona fide purchaser who purchased the real property before the 21
	1734	+	issuance of the order, and the order has no force or effect on the title of 22
	1735	+	the bona fide purchaser. 23
	1736	+	(E) A lis pendens filed in connection with an action 24
	1737	+	pending under this section that may result in the forfeiture of real property 25
	1738	+	is effective only from the time filed and has no retroactive effect. 26
	1739	+	(f) A tobacco product, vapor product, alternative nicotine product, or 27
	1740	+	e-liquid product that is possessed, transferred, sold, or offered for sale in 28
	1741	+	violation of this subchapter may be seized and immediately forfeited to the 29
	1742	+	state. 30
	1743	+	(g)(1) Property subject to forfeiture under this subchapter may be 31
	1744	+	seized by a law enforcement agent upon process issued by a circuit court 32
	1745	+	having jurisdiction over the property on petition filed by the prosecuting 33
	1746	+	attorney of the judicial circuit. 34
	1747	+	(2) Seizure without process may be made if: 35
	1748	+	(A) The seizure is incident to an arrest or a search under 36 SB533
	1749	+
	1750	+	47 03/20/2025 11:19:12 AM JMB498
	1751	+	a search warrant or an inspection under the regulatory authority of Arkansas 1
	1752	+	Tobacco Control; 2
	1753	+	(B) The property subject to seizure has been the subject 3
	1754	+	of a prior judgment in favor of the state in a criminal injunction or 4
	1755	+	forfeiture proceeding based upon this subchapter; 5
	1756	+	(C) The seizing law enforcement agency has probable cause 6
	1757	+	to believe that the property is directly or indirectly dangerous to health or 7
	1758	+	safety; or 8
	1759	+	(D) The seizing law enforcement agency has probable cause 9
	1760	+	to believe that the property was used or is intended to be used in violation 10
	1761	+	of this subchapter. 11
	1762	+	(h)(1) A state or local law enforcement agency shall not transfer 12
	1763	+	property seized by the state or local agency under this section to a federal 13
	1764	+	entity for forfeiture under federal law unless the circuit court having 14
	1765	+	jurisdiction over the property enters an order, upon petition by the 15
	1766	+	prosecuting attorney, authorizing the property to be transferred to the 16
	1767	+	federal entity. 17
	1768	+	(2) The transfer shall not be approved unless it reasonably 18
	1769	+	appears that the activity giving rise to the investigation or seizure 19
	1770	+	involves more than one (1) state or the nature of the investigation or 20
	1771	+	seizure would be better pursued under federal law. 21
	1772	+	(i)(1) Property seized for forfeiture under this section is not 22
	1773	+	subject to replevin but is deemed to be in the custody of the seizing law 23
	1774	+	enforcement agency subject only to an order or decree of the circuit court 24
	1775	+	having jurisdiction over the property seized. 25
	1776	+	(2) Subject to a need to retain the property as evidence, when 26
	1777	+	property is seized under this subchapter, the seizing law enforcement agency 27
	1778	+	may: 28
	1779	+	(A) Remove the property to a place designated by the 29
	1780	+	circuit court; 30
	1781	+	(B) Place the property under constructive seizure, posting 31
	1782	+	notice of pending forfeiture on it by: 32
	1783	+	(i) Giving notice of pending forfeiture to its 33
	1784	+	owners and interest holders; or 34
	1785	+	(ii) Filing notice of pending forfeiture in an 35
	1786	+	appropriate public record relating to the property; 36 SB533
	1787	+
	1788	+	48 03/20/2025 11:19:12 AM JMB498
	1789	+	(C) Remove the property to a storage area for safekeeping 1
	1790	+	or, if the property is a negotiable instrument or money or is not needed for 2
	1791	+	evidentiary purposes, deposit it into an interest -bearing account; or 3
	1792	+	(D) Provide for another agency or custodian, including an 4
	1793	+	owner, secured party, mortgagee, or lienholder, to take custody of the 5
	1794	+	property and service, maintain, and operate it as reasonably necessary to 6
	1795	+	maintain its value in an appropriate location within the jurisdiction of the 7
	1796	+	court. 8
	1797	+	(3)(A) In case of transfer of property, a transfer receipt shall 9
	1798	+	be prepared by the transferring agency. 10
	1799	+	(B) The transfer receipt shall: 11
	1800	+	(i) List a detailed and complete description of the 12
	1801	+	property being transferred; 13
	1802	+	(ii) State to whom the property is being transferred 14
	1803	+	and the source or authorization for the transfer; and 15
	1804	+	(iii) Be signed by both the transferor and the 16
	1805	+	transferee. 17
	1806	+	(C) Both transferor and transferee shall maintain a copy 18
	1807	+	of the transfer receipt. 19
	1808	+	(4) A person who acts as custodian of property under this 20
	1809	+	section is not liable to any person on account of an act done in a reasonable 21
	1810	+	manner in compliance with an order under this subchapter. 22
	1811	+	(j)(1) Property seized by a state or local law enforcement officer 23
	1812	+	under this section who is detached to, deputized or commissioned by, or 24
	1813	+	working in conjunction with a federal agency remains subject to this section. 25
	1814	+	(2)(A) If property is seized for forfeiture by a law enforcement 26
	1815	+	agency under this section, the seizing law enforcement officer shall prepare 27
	1816	+	and sign a confiscation report. 28
	1817	+	(B)(i) The party from whom the property is seized shall 29
	1818	+	also sign the confiscation report if present and shall immediately receive a 30
	1819	+	copy of the confiscation report. 31
	1820	+	(ii) If the party refuses to sign the confiscation 32
	1821	+	report, the confiscation report shall be signed by one (1) additional law 33
	1822	+	enforcement officer, stating that the party refused to sign the confiscation 34
	1823	+	report. 35
	1824	+	(C) The original confiscation report shall be: 36 SB533
	1825	+
	1826	+	49 03/20/2025 11:19:12 AM JMB498
	1827	+	(i) Filed with the seizing law enforcement agency 1
	1828	+	within forty-eight (48) hours after the seizure; and 2
	1829	+	(ii) Maintained in a separate file. 3
	1830	+	(D) One (1) copy of the confiscation report shall be 4
	1831	+	retained by the seizing law enforcement officer. 5
	1832	+	(3) The confiscation report shall contain the following 6
	1833	+	information: 7
	1834	+	(A) A detailed description of the property seized 8
	1835	+	including serial or model numbers and odometer or hour reading of vehicles or 9
	1836	+	equipment; 10
	1837	+	(B) The date of seizure; 11
	1838	+	(C) The name and address of the party from whom the 12
	1839	+	property was seized; 13
	1840	+	(D) The reason for the seizure; 14
	1841	+	(E) The location where the property will be held; 15
	1842	+	(F) The seizing law enforcement officer's name; and 16
	1843	+	(G) A signed statement by the seizing law enforcement 17
	1844	+	officer stating that the confiscation report is true and complete. 18
	1845	+	(4) Within three (3) business days after receiving the 19
	1846	+	confiscation report, the seizing law enforcement agency shall forward a copy 20
	1847	+	of the confiscation report to the prosecuting attorney for the district where 21
	1848	+	the property was seized and to the director. 22
	1849	+	(5)(A) Arkansas Legislative Audit shall notify the director and 23
	1850	+	a circuit court in the county of a law enforcement agency, prosecuting 24
	1851	+	attorney, or other public entity that the law enforcement agency, prosecuting 25
	1852	+	attorney, or public entity is ineligible to receive forfeited funds, 26
	1853	+	forfeited property, or grants from the council, if Arkansas Legislative Audit 27
	1854	+	determines by its own investigation or upon written notice from the director 28
	1855	+	that: 29
	1856	+	(i) The law enforcement agency failed to complete 30
	1857	+	and file the confiscation reports as required by this section; 31
	1858	+	(ii) The law enforcement agency, prosecuting 32
	1859	+	attorney, or public entity has not properly accounted for the seized 33
	1860	+	property; or 34
	1861	+	(iii) The prosecuting attorney has failed to comply 35
	1862	+	with the notification requirement set forth in subdivision (m)(2) of this 36 SB533
	1863	+
	1864	+	50 03/20/2025 11:19:12 AM JMB498
	1865	+	section. 1
	1866	+	(B) After the notice, the circuit court shall not issue an 2
	1867	+	order distributing seized property to that law enforcement agency, 3
	1868	+	prosecuting attorney, or public entity, nor shall a grant be awarded by the 4
	1869	+	council to that law enforcement agency, prosecuting attorney, or public 5
	1870	+	entity until: 6
	1871	+	(i) The appropriate officials of the law enforcement 7
	1872	+	agency, prosecuting attorney, or public entity have appeared before the 8
	1873	+	Legislative Joint Auditing Committee; and 9
	1874	+	(ii) The Legislative Joint Auditing Committee has 10
	1875	+	adopted a motion authorizing subsequent transfers of forfeited property to 11
	1876	+	the law enforcement agency, prosecuting attorney, or public entity. 12
	1877	+	(C)(i) If a law enforcement agency, prosecuting attorney, 13
	1878	+	or other public entity is ineligible to receive forfeited property, the 14
	1879	+	circuit court shall order money that would have been distributed to that law 15
	1880	+	enforcement agency, prosecuting attorney, or public entity to be transmitted 16
	1881	+	to the Treasurer of State for deposit into the Special State Assets 17
	1882	+	Forfeiture Fund. 18
	1883	+	(ii) If the property is not cash, the circuit court 19
	1884	+	shall order the property converted to cash under this section and the 20
	1885	+	proceeds transmitted to the Treasurer of State for deposit into the Special 21
	1886	+	State Assets Forfeiture Fund. 22
	1887	+	(D) Moneys deposited into the Special State Assets 23
	1888	+	Forfeiture Fund are not subject to recovery or retrieval by an ineligible law 24
	1889	+	enforcement agency, prosecuting attorney, or other public entity. 25
	1890	+	(6) The director shall establish by rule a standardized 26
	1891	+	confiscation report form to be used by all law enforcement agencies, with 27
	1892	+	specific instructions and guidelines concerning the nature and dollar value 28
	1893	+	of all property, including firearms, to be included in the confiscation 29
	1894	+	report and forwarded to the office of the local prosecuting attorney and the 30
	1895	+	director under this subsection. 31
	1896	+	(k)(1)(A) The prosecuting attorney shall initiate forfeiture 32
	1897	+	proceedings by filing a complaint with the circuit clerk of the county where 33
	1898	+	the property was seized and by serving the complaint on all known owners and 34
	1899	+	interest holders of the seized property in accordance with the Arkansas Rules 35
	1900	+	of Civil Procedure. 36 SB533
	1901	+
	1902	+	51 03/20/2025 11:19:12 AM JMB498
	1903	+	(B) The complaint may be based on in rem or in personam 1
	1904	+	jurisdiction but shall not be filed to avoid the distribution requirements 2
	1905	+	set forth in subdivision (l)(1) of this section. 3
	1906	+	(C) The prosecuting attorney shall mail a copy of the 4
	1907	+	complaint to the director within five (5) calendar days after filing the 5
	1908	+	complaint. 6
	1909	+	(2)(A) The complaint shall include a copy of the confiscation 7
	1910	+	report and shall be filed within sixty (60) days after receiving a copy of 8
	1911	+	the confiscation report from the seizing law enforcement agency. 9
	1912	+	(B) In a case involving real property, the complaint shall 10
	1913	+	be filed within sixty (60) days of the defendant's conviction on the charge 11
	1914	+	giving rise to the forfeiture. 12
	1915	+	(3)(A) The prosecuting attorney may file the complaint after the 13
	1916	+	expiration of the time only if the complaint is accompanied by a statement of 14
	1917	+	good cause for the late filing. 15
	1918	+	(B) However, the complaint shall not be filed more than 16
	1919	+	one hundred twenty (120) days after either the date of the seizure or, in a 17
	1920	+	case involving real property, the date of the defendant's conviction. 18
	1921	+	(C)(i) If the circuit court determines that good cause has 19
	1922	+	not been established, the circuit court shall order that the seized property 20
	1923	+	be returned to the owner or interest holder. 21
	1924	+	(ii) In addition, items seized but not subject to 22
	1925	+	forfeiture under this section or subject to disposition under law or the 23
	1926	+	Arkansas Rules of Criminal Procedure may be ordered returned to the owner or 24
	1927	+	interest holder. 25
	1928	+	(iii) If the owner or interest holder cannot be 26
	1929	+	determined, the court may order disposition of the property. 27
	1930	+	(4) Within the time set forth in the Arkansas Rules of Civil 28
	1931	+	Procedure, the owner or interest holder of the seized property shall file 29
	1932	+	with the circuit clerk a verified answer to the complaint that shall include: 30
	1933	+	(A) A statement describing the seized property and the 31
	1934	+	owner's interest or interest holder's interest in the seized property with 32
	1935	+	supporting documents to establish the owner's interest or interest holder's 33
	1936	+	interest; 34
	1937	+	(B) A certification by the owner or interest holder 35
	1938	+	stating that he or she has read the document and that it has not been filed 36 SB533
	1939	+
	1940	+	52 03/20/2025 11:19:12 AM JMB498
	1941	+	for an improper purpose; 1
	1942	+	(C) A statement setting forth any defense to forfeiture; 2
	1943	+	and 3
	1944	+	(D) The address at which the owner or interest holder will 4
	1945	+	accept mail. 5
	1946	+	(5)(A) If the owner or interest holder fails to file an answer, 6
	1947	+	the prosecuting attorney may move for default judgment under the Arkansas 7
	1948	+	Rules of Civil Procedure. 8
	1949	+	(B)(i) If a timely answer has been filed, the prosecuting 9
	1950	+	attorney has the burden of proving by a preponderance of the evidence that 10
	1951	+	the seized property should be forfeited. 11
	1952	+	(ii) After the prosecuting attorney has presented 12
	1953	+	proof, an owner or interest holder of the property seized is allowed to 13
	1954	+	present evidence showing why the seized property should not be forfeited. 14
	1955	+	(iii) If the circuit court determines that grounds 15
	1956	+	for forfeiting the seized property exist and that a defense to forfeiture has 16
	1957	+	not been established by the owner or interest holder, the circuit court shall 17
	1958	+	enter an order under this section. However, if the circuit court determines 18
	1959	+	either that the prosecuting attorney has failed to establish that grounds for 19
	1960	+	forfeiting the seized property exist or that the owner or interest holder has 20
	1961	+	established a defense to forfeiture, the court shall order that the seized 21
	1962	+	property be immediately returned to the owner or interest holder. 22
	1963	+	(l)(1) If the circuit court having jurisdiction over the seized 23
	1964	+	property finds upon a hearing by a preponderance of the evidence that grounds 24
	1965	+	for a forfeiture exist under this subchapter, the circuit court shall enter 25
	1966	+	an order: 26
	1967	+	(A) To permit the law enforcement agency or prosecuting 27
	1968	+	attorney to retain the seized property for law enforcement or prosecutorial 28
	1969	+	purposes, subject to the following provisions: 29
	1970	+	(i)(a) Seized property may not be retained for 30
	1971	+	official use for more than three (3) years, unless the circuit court finds 31
	1972	+	that the seized property has been used for law enforcement or prosecutorial 32
	1973	+	purposes and authorizes continued use for those purposes on an annual basis. 33
	1974	+	(b) At the end of the retention period, the 34
	1975	+	seized property shall be sold and eighty percent (80%) of the proceeds shall 35
	1976	+	be deposited into the tobacco control fund of the retaining law enforcement 36 SB533
	1977	+
	1978	+	53 03/20/2025 11:19:12 AM JMB498
	1979	+	agency or prosecuting attorney, and twenty percent (20%) of the proceeds 1
	1980	+	shall be deposited into the State Treasury as special revenues to be credited 2
	1981	+	to the Special State Assets Forfeiture Fund. 3
	1982	+	(c) The retaining law enforcement agency or 4
	1983	+	prosecuting attorney may sell the retained seized property during the time 5
	1984	+	allowed for retention. However, the proceeds of the sale shall be distributed 6
	1985	+	as set forth in subdivision (l)(1)(A)(i)(b) of this section; 7
	1986	+	(ii) If the circuit court determines that retained 8
	1987	+	seized property has been used for personal use or by non -law enforcement 9
	1988	+	personnel for non-law enforcement purposes, the circuit court shall order the 10
	1989	+	seized property to be sold under § 5 -5-101(e) and (f), and the proceeds shall 11
	1990	+	be deposited into the State Treasury as special revenues to be credited to 12
	1991	+	the Special State Assets Forfeiture Fund; 13
	1992	+	(iii)(a) A law enforcement agency may use forfeited 14
	1993	+	property or money if the circuit court's order specifies that the forfeited 15
	1994	+	property or money is forfeited to the prosecuting attorney, sheriff, chief of 16
	1995	+	police, Division of Arkansas State Police, director, or Arkansas Highway 17
	1996	+	Police Division of the Arkansas Department of Transportation. 18
	1997	+	(b) After the order, the prosecuting attorney, 19
	1998	+	sheriff, chief of police, Division of Arkansas State Police, director, or 20
	1999	+	Arkansas Highway Police Division of the Arkansas Department of Transportation 21
	2000	+	shall maintain an inventory of the forfeited property or money, be 22
	2001	+	accountable for the forfeited property or money, and be subject to 23
	2002	+	subdivision (j)(5) of this section with respect to the forfeited property or 24
	2003	+	money; 25
	2004	+	(iv)(a) An aircraft is forfeited to the office of 26
	2005	+	the director and may be used only for tobacco, vapor product, alternative 27
	2006	+	nicotine product, or e -liquid product smuggling interdiction efforts within 28
	2007	+	the discretion of the director. 29
	2008	+	(b) However, if the director determines that 30
	2009	+	the aircraft should be sold, the proceeds of the sale shall be distributed as 31
	2010	+	set forth in subdivision (l)(1)(A)(i)(b) of this section; 32
	2011	+	(v) A firearm not retained for official use shall be 33
	2012	+	disposed of in accordance with state and federal law; and 34
	2013	+	(vi) A tobacco product, vapor product, alternative 35
	2014	+	nicotine product, or e -liquid product shall be destroyed pursuant to a court 36 SB533
	2015	+
	2016	+	54 03/20/2025 11:19:12 AM JMB498
	2017	+	order; 1
	2018	+	(B)(i) To sell seized property that is not required by law 2
	2019	+	to be destroyed and that is not harmful to the public. 3
	2020	+	(ii) Seized property described in subdivision 4
	2021	+	(l)(1)(B)(i) of this section shall be sold at a public sale by the retaining 5
	2022	+	law enforcement agency or prosecuting attorney under § 5 -5-101(e) and (f); or 6
	2023	+	(C) To transfer a motor vehicle to a school district for 7
	2024	+	use in a driver education course. 8
	2025	+	(2) Disposition of forfeited property under this subsection is 9
	2026	+	subject to the need to retain the forfeited property as evidence in any 10
	2027	+	related proceeding. 11
	2028	+	(3) Within three (3) business days after the entry of the order, 12
	2029	+	the circuit clerk shall forward to the director copies of the confiscation 13
	2030	+	report, the circuit court's order, and other documentation detailing the 14
	2031	+	disposition of the seized property. 15
	2032	+	(m)(1)(A) Subject to subdivision (j)(5) of this section, the proceeds 16
	2033	+	of sales conducted under this section and moneys forfeited or obtained by 17
	2034	+	judgment or settlement under this subchapter shall be deposited and 18
	2035	+	distributed in the manner provided in this subsection. 19
	2036	+	(B) Moneys received from a federal forfeiture for a 20
	2037	+	violation of this subchapter shall be deposited and distributed under this 21
	2038	+	section. 22
	2039	+	(2)(A) The proceeds of a sale and moneys forfeited or obtained 23
	2040	+	by judgment or settlement under this subchapter shall be deposited into the 24
	2041	+	asset forfeiture fund of the prosecuting attorney and is subject to the 25
	2042	+	following provisions: 26
	2043	+	(i) If, during a calendar year, the aggregate amount 27
	2044	+	of moneys deposited into the asset forfeiture fund exceeds twenty thousand 28
	2045	+	dollars ($20,000) per county, the prosecuting attorney, within fourteen (14) 29
	2046	+	days after that time, shall notify the circuit judges in the judicial 30
	2047	+	district and the director; 31
	2048	+	(ii) Subsequent to the notification set forth in this 32
	2049	+	section, twenty percent (20%) of the proceeds of an additional sale and 33
	2050	+	additional moneys forfeited or obtained by judgment or settlement under this 34
	2051	+	subchapter in the same calendar year shall be deposited into the State 35
	2052	+	Treasury as special revenues to be credited to the Special State Assets 36 SB533
	2053	+
	2054	+	55 03/20/2025 11:19:12 AM JMB498
	2055	+	Forfeiture Fund, and the remainder shall be deposited into the asset 1
	2056	+	forfeiture fund of the prosecuting attorney; 2
	2057	+	(iii) Failure by the prosecuting attorney to comply 3
	2058	+	with the notification requirement set forth in this section renders the 4
	2059	+	prosecuting attorney and an entity eligible to receive forfeited moneys or 5
	2060	+	property from the prosecuting attorney ineligible to receive forfeited moneys 6
	2061	+	or property, except as provided in this section; and 7
	2062	+	(iv) Twenty percent (20%) of moneys in excess of 8
	2063	+	twenty thousand dollars ($20,000) that have been retained but not reported as 9
	2064	+	required by this section are subject to recovery for deposit into the Special 10
	2065	+	State Assets Forfeiture Fund. 11
	2066	+	(B) The prosecuting attorney shall administer expenditures 12
	2067	+	from the asset forfeiture fund, which is subject to audit by Arkansas 13
	2068	+	Legislative Audit. Moneys distributed from the asset forfeiture fund shall be 14
	2069	+	used only for law enforcement and prosecutorial purposes. Moneys in the asset 15
	2070	+	forfeiture fund shall be distributed in the following order: 16
	2071	+	(i) For the satisfaction of a bona fide security 17
	2072	+	interest or lien; 18
	2073	+	(ii) For payment of a proper expense of the 19
	2074	+	proceeding for forfeiture and sale, including expenses of seizure, 20
	2075	+	maintenance of custody, advertising, and court costs; 21
	2076	+	(iii) Any balance under three hundred fifty thousand 22
	2077	+	dollars ($350,000) shall be distributed proportionally so as to reflect 23
	2078	+	generally the contribution of the appropriate local or state law enforcement 24
	2079	+	or prosecutorial agency's participation in any activity that led to the 25
	2080	+	seizure or forfeiture of the property or deposit of moneys under this 26
	2081	+	subchapter; and 27
	2082	+	(iv) Any balance over three hundred fifty thousand 28
	2083	+	dollars ($350,000) shall be forwarded to the director to be transferred to 29
	2084	+	the State Treasury for deposit into the Special State Assets Forfeiture Fund 30
	2085	+	for distribution under this section. 31
	2086	+	(C)(i) For a forfeiture in an amount greater than three 32
	2087	+	hundred fifty thousand dollars ($350,000) from which expenses are paid for a 33
	2088	+	proceeding for forfeiture and sale under this section, an itemized accounting 34
	2089	+	of the expenses shall be delivered to the director within ten (10) calendar 35
	2090	+	days after the distribution of the funds. 36 SB533
	2091	+
	2092	+	56 03/20/2025 11:19:12 AM JMB498
	2093	+	(ii) The itemized accounting shall include the 1
	2094	+	expenses paid, to whom paid, and for what purposes the expenses were paid. 2
	2095	+	(3)(A) Moneys received by a prosecuting attorney or law 3
	2096	+	enforcement agency from a federal forfeiture for a violation of this 4
	2097	+	subchapter shall be deposited and maintained in a separate account. 5
	2098	+	(B) However, a balance over three hundred fifty thousand 6
	2099	+	dollars ($350,000) shall be distributed as required under this section. 7
	2100	+	(4) Other moneys shall not be maintained in the account except 8
	2101	+	for interest income generated by the account. 9
	2102	+	(5) Moneys in the account shall only be used for law enforcement 10
	2103	+	and prosecutorial purposes consistent with governing federal law. 11
	2104	+	(6) The account is subject to audit by Arkansas Legislative 12
	2105	+	Audit. 13
	2106	+	(7) A balance over three hundred fifty thousand dollars 14
	2107	+	($350,000) shall be transferred to the State Treasury for deposit into the 15
	2108	+	Special State Assets Forfeiture Fund in which it shall be maintained 16
	2109	+	separately and distributed consistently with governing federal law and upon 17
	2110	+	the advice of the director. 18
	2111	+	(n) In personam jurisdiction may be based on a person's presence in 19
	2112	+	the state or on his or her conduct in the state, as set out in § 16 -4-101(C), 20
	2113	+	and is subject to the following additional provisions: 21
	2114	+	(1) A temporary restraining order under this section may be 22
	2115	+	entered ex parte on application of the state upon a showing that: 23
	2116	+	(A) There is probable cause to believe that the property 24
	2117	+	with respect to which the order is sought is subject to forfeiture under this 25
	2118	+	section; and 26
	2119	+	(B) Notice of the action would jeopardize the availability 27
	2120	+	of the property for forfeiture; 28
	2121	+	(2)(A) Notice of the entry of a temporary restraining order and 29
	2122	+	an opportunity for hearing shall be afforded to a person known to have an 30
	2123	+	interest in the property. 31
	2124	+	(B) The hearing shall be held at the earliest possible 32
	2125	+	date consistent with Rule 65 of the Arkansas Rules of Civil Procedure and is 33
	2126	+	limited to the issues of whether: 34
	2127	+	(i) There is a probability that the state will 35
	2128	+	prevail on the issue of forfeiture and that failure to enter the temporary 36 SB533
	2129	+
	2130	+	57 03/20/2025 11:19:12 AM JMB498
	2131	+	restraining order will result in the property's being destroyed, conveyed, 1
	2132	+	alienated, encumbered, disposed of, received, removed from the jurisdiction 2
	2133	+	of the circuit court, concealed, or otherwise made unavailable for 3
	2134	+	forfeiture; and 4
	2135	+	(ii) The need to preserve the availability of 5
	2136	+	property through the entry of the requested temporary restraining order 6
	2137	+	outweighs the hardship on an owner or interest holder against whom the 7
	2138	+	temporary restraining order is to be entered; 8
	2139	+	(3) The state has the burden of proof by a preponderance of the 9
	2140	+	evidence to show that the defendant's property is subject to forfeiture; 10
	2141	+	(4)(A) On a determination of liability of a person for conduct 11
	2142	+	giving rise to forfeiture under this section, the circuit court shall enter a 12
	2143	+	judgment of forfeiture of the property subject to forfeiture as alleged in 13
	2144	+	the complaint and may authorize the prosecuting attorney or a law enforcement 14
	2145	+	officer to seize property subject to forfeiture under this section not 15
	2146	+	previously seized or not then under seizure. 16
	2147	+	(B) The order of forfeiture shall be consistent with 17
	2148	+	subsection (l) of this section. 18
	2149	+	(C) In connection with the judgment, on application of the 19
	2150	+	state, the circuit court may enter an appropriate order to protect the 20
	2151	+	interest of the state in property ordered forfeited; and 21
	2152	+	(5) Subsequent to the finding of liability and order of 22
	2153	+	forfeiture, the following procedures apply: 23
	2154	+	(A) The attorney for the state shall give notice of 24
	2155	+	pending forfeiture in the manner provided in Rule 4 of the Arkansas Rules of 25
	2156	+	Civil Procedure to an owner or interest holder who has not previously been 26
	2157	+	given notice; 27
	2158	+	(B) An owner of or interest holder in property that has 28
	2159	+	been ordered forfeited and whose claim is not precluded may file a claim 29
	2160	+	within thirty (30) days after initial notice of pending forfeiture or after 30
	2161	+	notice under Rule 4 of the Arkansas Rules of Civil Procedure, whichever is 31
	2162	+	earlier; and 32
	2163	+	(C) The circuit court may amend the in personam order of 33
	2164	+	forfeiture if the circuit court determines that a claimant has established 34
	2165	+	that he or she has an interest in the property and that the interest is 35
	2166	+	exempt under this section. 36 SB533
	2167	+
	2168	+	58 03/20/2025 11:19:12 AM JMB498
	2169	+	(o) The circuit court shall order the forfeiture of other property of 1
	2170	+	a claimant or defendant up to the value of the claimant's or defendant's 2
	2171	+	property found by the circuit court to be subject to forfeiture under this 3
	2172	+	section if any of the forfeitable property had remained under the control or 4
	2173	+	custody of the claimant or defendant and: 5
	2174	+	(1) Cannot be located; 6
	2175	+	(2) Was transferred or conveyed to, sold to, or deposited with a 7
	2176	+	third party; 8
	2177	+	(3) Is beyond the jurisdiction of the circuit court; 9
	2178	+	(4) Was substantially diminished in value while not in the 10
	2179	+	actual physical custody of the seizing law enforcement agency; 11
	2180	+	(5) Was commingled with other property that cannot be divided 12
	2181	+	without difficulty; or 13
	2182	+	(6) Is subject to interest exempted from forfeiture under this 14
	2183	+	subchapter. 15
	2184	+	(p)(1) There is created on the books of law enforcement agencies and 16
	2185	+	prosecuting attorneys a tobacco control fund. 17
	2186	+	(2) The fund shall consist of moneys obtained under this section 18
	2187	+	and other revenue as may be provided by law or ordinance. 19
	2188	+	(3) Moneys in the tobacco control fund shall be appropriated on 20
	2189	+	a continuing basis and are not subject to the Revenue Stabilization Law, § 21
	2190	+	19-5-101 et seq. 22
	2191	+	(4)(A) The fund shall be used for law enforcement and 23
	2192	+	prosecutorial purposes. 24
	2193	+	(B) Each prosecuting attorney shall submit to the Director 25
	2194	+	of Arkansas Tobacco Control on or before June 30 of each year a report 26
	2195	+	detailing moneys received and expenditures made from the tobacco control fund 27
	2196	+	during the preceding twelve -month period. 28
	2197	+	(5) The law enforcement agencies and prosecuting attorneys shall 29
	2198	+	submit to the director on or before June 30 of each year a report detailing 30
	2199	+	any moneys received and expenditures made from the tobacco control fund 31
	2200	+	during the preceding twelve -month period. 32
	2201	+	(6) Moneys from the tobacco control fund may not supplant other 33
	2202	+	local, state, or federal funds. 34
	2203	+	(7) The tobacco control fund is subject to audit by Arkansas 35
	2204	+	Legislative Audit. 36 SB533
	2205	+
	2206	+	59 03/20/2025 11:19:12 AM JMB498
	2207	+	1
	2208	+	SECTION 13. Arkansas Code § 26 -57-249(b), effective until the 2
	2209	+	contingency in Acts 2023, No. 629, § 17, is met, concerning the procedure for 3
	2210	+	destruction of products upon conviction, is amended to read as follows: 4
	2211	+	(b) Upon an administrative finding of guilty of any person charged 5
	2212	+	with a violation of a state tobacco product, vapor product, alternative 6
	2213	+	nicotine product, or e-liquid product, or consumable hemp product law or rule 7
	2214	+	in a proceeding before the Arkansas Tobacco Control Board where the 8
	2215	+	investigation resulted in the seizure of tobacco products, vapor products, 9
	2216	+	alternative nicotine products, or e-liquid products, or consumable hemp 10
	2217	+	products, the board shall issue an order to destroy the tobacco products, 11
	2218	+	vapor products, alternative nicotine products, or e-liquid products, or 12
	2219	+	consumable hemp products confiscated by Arkansas Tobacco Control or by any 13
	2220	+	state, county, or municipal officer in this state. 14
	2221	+	15
	2222	+	SECTION 14. Arkansas Code § 26 -57-249, effective if the contingency in 16
	2223	+	Acts 2023, No. 629, § 17, is met, is repealed. 17
	2224	+	26-57-249. Destruction of products upon conviction — Procedure. 18
	2225	+	(a) Upon a criminal conviction of a person charged with a violation of 19
	2226	+	a tobacco product, vapor product, alternative nicotine product, or e -liquid 20
	2227	+	product law or rule where the investigation resulted in the seizure of 21
	2228	+	tobacco products, vapor products, alternative nicotine products, or e -liquid 22
	2229	+	products, the court shall issue an order to destroy the tobacco products, 23
	2230	+	vapor products, alternative nicotine products, or e -liquid products 24
	2231	+	confiscated by Arkansas Tobacco Control or by any state, county, or municipal 25
	2232	+	officer in this state. 26
	2233	+	(b) Upon an administrative finding of guilty of any person charged 27
	2234	+	with a violation of a state tobacco product, vapor product, alternative 28
	2235	+	nicotine product, e-liquid product, or hemp -derived product law or rule in a 29
	2236	+	proceeding before the Arkansas Tobacco Control Board where the investigation 30
	2237	+	resulted in the seizure of tobacco products, vapor products, alternative 31
	2238	+	nicotine products, e -liquid products, or hemp -derived products, the board 32
	2239	+	shall issue an order to destroy the tobacco products, vapor products, 33
	2240	+	alternative nicotine products, e -liquid products, or hemp -derived products 34
	2241	+	confiscated by Arkansas Tobacco Control or by any state, county, or municipal 35
	2242	+	officer in this state. 36 SB533
	2243	+
	2244	+	60 03/20/2025 11:19:12 AM JMB498
	2245	+	(c) Every court of record in this state shall notify the Director of 1
	2246	+	Arkansas Tobacco Control of the disposition made of each case in the court as 2
	2247	+	to whether the defendant was convicted or acquitted. 3
	2248	+	(d) Upon application of the director, the board or the court issuing a 4
	2249	+	destruction order may instead release the tobacco products, vapor products, 5
	2250	+	alternative nicotine products, or e -liquid products to the use and benefit of 6
	2251	+	Arkansas Tobacco Control for suitable law enforcement or training purposes. 7
	2252	+	(e)(1) If a court or the board issues a destruction order, the person 8
	2253	+	charged with the violation is responsible for any destruction fees incurred 9
	2254	+	by Arkansas Tobacco Control. 10
	2255	+	(2) Destruction fees may vary but shall be determined by the 11
	2256	+	current industry standard for the destruction of tobacco products, vapor 12
	2257	+	products, alternative nicotine products, and e -liquid products. 13
	2258	+	14
	2259	+	SECTION 15. Arkansas Code § 26 -57-255(g)(3), effective until the 15
	2260	+	contingency in Acts 2023, No. 629, § 17, is met, concerning the powers and 16
	2261	+	duties of the Arkansas Tobacco Control Board, is amended to read as follows: 17
	2262	+	(3)(A) Conduct public hearings when appropriate regarding a 18
	2263	+	permit authorized under this subchapter or in violation of this subchapter, 19
	2264	+	the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-501 20
	2265	+	et seq., or any other federal, state, or local statute, ordinance, rule, or 21
	2266	+	regulation concerning the sale of tobacco products, vapor products, 22
	2267	+	alternative nicotine products, or e-liquid products, or consumable hemp 23
	2268	+	products to minors, or the rules promulgated by Arkansas Tobacco Control. 24
	2269	+	(B) After notice and hearing held in accordance with the 25
	2270	+	Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 26
	2271	+	finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-27
	2272	+	701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 28
	2273	+	Tobacco Control, the board may suspend or revoke any or all permits issued by 29
	2274	+	the director to any person. 30
	2275	+	(C) The board may levy a civil penalty in an amount not to 31
	2276	+	exceed five thousand dollars ($5,000) for each violation against a person 32
	2277	+	found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 33
	2278	+	§ 4-75-701 et seq., § 20-56-501 et seq., or the rules promulgated by Arkansas 34
	2279	+	Tobacco Control. 35
	2280	+	(D) Each day of a violation is a separate violation. 36 SB533
	2281	+
	2282	+	61 03/20/2025 11:19:12 AM JMB498
	2283	+	(E) A civil penalty under subdivision (g)(3)(C) of this 1
	2284	+	section is in addition to any penalties levied by the board under § 26 -57-2
	2285	+	248. 3
	2286	+	(F) In conducting a hearing under this subdivision (g)(3), 4
	2287	+	the board may examine or cause to be examined under oath any witness and the 5
	2288	+	books and records of a permitted person or other person; 6
	2289	+	7
	2290	+	SECTION 16. Arkansas Code § 26 -57-255, effective if the contingency in 8
	2291	+	Acts 2023, No. 629, § 17, is met, is repealed. 9
	2292	+	26-57-255. Arkansas Tobacco Control Board — Creation — Definition.10
	2293	+	(a) There is created the Arkansas Tobacco Control Board to consist of 11
	2294	+	the following eight (8) members appointed by the Governor: 12
	2295	+	(1) Two (2) members of the board shall be wholesalers of tobacco 13
	2296	+	products, vapor products, alternative nicotine products, or e -liquid 14
	2297	+	products; 15
	2298	+	(2) Two (2) members of the board shall be retailers of tobacco 16
	2299	+	products, vapor products, alternative nicotine products, or e -liquid 17
	2300	+	products; and 18
	2301	+	(3) Four (4) members of the board shall be members of the public 19
	2302	+	at large who are not public employees or officials, at least one (1) of whom 20
	2303	+	shall be an African-American, and two (2) of whom shall be appointed by the 21
	2304	+	Governor after consulting the Arkansas Medical Society, Inc. and subject to 22
	2305	+	confirmation by the Senate. 23
	2306	+	(b) The Governor shall designate which member of the board shall act 24
	2307	+	as chair and that person shall serve as chair for two (2) years unless his or 25
	2308	+	her membership on the board ceases prior to the end of the two -year period. 26
	2309	+	(c)(1) All members of the board shall be residents of the State of 27
	2310	+	Arkansas and confirmed by the Senate. 28
	2311	+	(2) The term of office shall be five (5) years. 29
	2312	+	(d)(1) A minimum of five (5) members is required for a quorum. 30
	2313	+	(2)(A) All action by the board shall be by a majority vote of 31
	2314	+	the board members present at the regular or special meeting, and the board 32
	2315	+	may take no official action in connection with a matter except at a regular 33
	2316	+	or special meeting. 34
	2317	+	(B) In the event of a tie vote of the members of the 35
	2318	+	board, the Director of Arkansas Tobacco Control may cast the deciding vote. 36 SB533
	2319	+
	2320	+	62 03/20/2025 11:19:12 AM JMB498
	2321	+	(e) A person who is not a citizen of the United States and who has not 1
	2322	+	resided in the State of Arkansas for at least two (2) consecutive years 2
	2323	+	immediately preceding the date of appointment shall not be appointed to the 3
	2324	+	board. 4
	2325	+	(f) Each member of the board and the director shall take and subscribe 5
	2326	+	to an oath that he or she will support and enforce this subchapter, the 6
	2327	+	tobacco control laws of this state, the Arkansas Constitution, and the United 7
	2328	+	States Constitution. 8
	2329	+	(g) The board shall: 9
	2330	+	(1) Act as the adjudicatory body for Arkansas Tobacco Control; 10
	2331	+	(2) Have responsibility for approving the issuance, suspension, 11
	2332	+	and revocation of the permits enumerated in § 26 -57-219; 12
	2333	+	(3)(A) Conduct public hearings when appropriate regarding a 13
	2334	+	permit authorized under this subchapter or in violation of this subchapter, 14
	2335	+	the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, § 20-56-401 15
	2336	+	et seq., or any other federal, state, or local statute, ordinance, rule, or 16
	2337	+	regulation concerning the sale of tobacco products, vapor products, 17
	2338	+	alternative nicotine products, e -liquid products, or hemp -derived products to 18
	2339	+	minors or the rules promulgated by Arkansas Tobacco Control. 19
	2340	+	(B) After notice and hearing held in accordance with the 20
	2341	+	Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 21
	2342	+	finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-22
	2343	+	701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 23
	2344	+	Tobacco Control, the board may suspend or revoke any or all permits issued by 24
	2345	+	the director to any person. 25
	2346	+	(C) The board may levy a civil penalty in an amount not to 26
	2347	+	exceed five thousand dollars ($5,000) for each violation against a person 27
	2348	+	found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 28
	2349	+	§ 4-75-701 et seq., § 20-56-401 et seq., or the rules promulgated by Arkansas 29
	2350	+	Tobacco Control. 30
	2351	+	(D) Each day of a violation is a separate violation. 31
	2352	+	(E) A civil penalty under subdivision (g)(3)(C) of this 32
	2353	+	section is in addition to any penalties levied by the board under § 26 -57-33
	2354	+	248. 34
	2355	+	(F) In conducting a hearing under this subdivision (g)(3), 35
	2356	+	the board may examine or cause to be examined under oath any witness and the 36 SB533
	2357	+
	2358	+	63 03/20/2025 11:19:12 AM JMB498
	2359	+	books and records of a permitted person or other person; 1
	2360	+	(4) When requested by the written petition of at least three (3) 2
	2361	+	interested parties, conduct public hearings to receive testimony regarding 3
	2362	+	the facts relevant to the issuance of a permit under this subchapter; and 4
	2363	+	(5)(A) Not have authority in criminal prosecutions or the 5
	2364	+	assessment or collection of any taxes. 6
	2365	+	(B) However, the board shall refuse to approve the 7
	2366	+	issuance or renewal of a permit issued by the director for the failure to pay 8
	2367	+	taxes or fees imposed on tobacco products or any permit fees imposed under 9
	2368	+	this subchapter or any other state or local taxes. 10
	2369	+	(h)(1) The board may assess penalties for a violation of § 5 -27-227 11
	2370	+	according to the following schedule: 12
	2371	+	(A) For a first violation within a forty -eight-month 13
	2372	+	period, a civil penalty not to exceed two hundred fifty dollars ($250); 14
	2373	+	(B) For a second violation within a forty -eight-month 15
	2374	+	period, a civil penalty not to exceed five hundred dollars ($500) and 16
	2375	+	suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 17
	2376	+	two (2) days; 18
	2377	+	(C) For a third violation within a forty -eight-month 19
	2378	+	period, a civil penalty not to exceed one thousand dollars ($1,000) and 20
	2379	+	suspension of the permit enumerated in § 26 -57-219 for a period not to exceed 21
	2380	+	seven (7) days; 22
	2381	+	(D) For a fourth or subsequent violation within a forty -23
	2382	+	eight-month period, a civil penalty not to exceed two thousand dollars 24
	2383	+	($2,000) and suspension of the permit enumerated in § 26 -57-219 for a period 25
	2384	+	not to exceed fourteen (14) days; and 26
	2385	+	(E) For a fifth or subsequent violation within a forty -27
	2386	+	eight-month period, in addition to the other penalties provided under this 28
	2387	+	subsection, the permit enumerated in § 26 -57-219 may be revoked. 29
	2388	+	(2)(A) A penalty under this subsection shall not be imposed on a 30
	2389	+	retailer or an agent or employee of a retailer who can establish an 31
	2390	+	affirmative defense that before the date of the violation the retailer or 32
	2391	+	agent or employee of the retailer furnishing the tobacco products, vapor 33
	2392	+	products, alternative nicotine products, e -liquid products, or cigarette 34
	2393	+	papers reasonably relied on proof of age that identified the person receiving 35
	2394	+	the tobacco products, vapor products, alternative nicotine products, e -liquid 36 SB533
	2395	+
	2396	+	64 03/20/2025 11:19:12 AM JMB498
	2397	+	products, or cigarette papers as not being a minor. 1
	2398	+	(B) As used in this subsection, “proof of age” means valid 2
	2399	+	documentation issued by a governmental agency containing the person's 3
	2400	+	photograph, date of birth, and an expiration date. 4
	2401	+	(3)(A) For a corporation or business with more than one (1) 5
	2402	+	retail location, to determine the number of accumulated violations for 6
	2403	+	purposes of the penalty schedule stated in this subsection, violations of § 7
	2404	+	5-27-227 by one (1) retail location shall not be accumulated against other 8
	2405	+	retail locations of that same corporation or business. 9
	2406	+	(B) For a retail location, for purposes of the penalty 10
	2407	+	schedule stated in this subsection, violations accumulated and assessed 11
	2408	+	against a prior owner of the retail location shall not be accumulated against 12
	2409	+	a new owner of the same retail location unless approved by the board. 13
	2410	+	14
	2411	+	SECTION 17. Arkansas Code § 26 -57-256(a)(2) and (3), effective until 15
	2412	+	the contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 16
	2413	+	Arkansas Tobacco Control, are amended to read as follows: 17
	2414	+	(2)(A) Receive applications for and issue, refuse, suspend, and 18
	2415	+	revoke permits listed in § 26 -57-219 and § 20-56-501 et seq. 19
	2416	+	(B) Arkansas Tobacco Control shall refuse to issue or 20
	2417	+	renew any permits issued by the Director of Arkansas Tobacco Control for the 21
	2418	+	failure to pay: 22
	2419	+	(i) Any applicable taxes or fees imposed on tobacco 23
	2420	+	products,; 24
	2421	+	(ii) Permit permit fees imposed under this 25
	2422	+	subchapter and § 20-56-501 et seq.;, or 26
	2423	+	(iii) Any any other state or local taxes; 27
	2424	+	(3) Prescribe forms of applications for permits under this 28
	2425	+	subchapter and § 20-56-501 et seq.; 29
	2426	+	30
	2427	+	SECTION 18. Arkansas Code § 26 -57-256(b), effective until the 31
	2428	+	contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 32
	2429	+	Arkansas Tobacco Control, is amended to read as follows: 33
	2430	+	(b) Any tobacco products, vapor products, alternative nicotine 34
	2431	+	products, e-liquid products, consumable hemp products, or cigarette papers 35
	2432	+	found in the possession of a minor may be confiscated and destroyed. 36 SB533
	2433	+
	2434	+	65 03/20/2025 11:19:12 AM JMB498
	2435	+	1
	2436	+	SECTION 19. Arkansas Code § 26 -57-256, effective if the contingency in 2
	2437	+	Acts 2023, No. 629, § 17, is met, is repealed. 3
	2438	+	26-57-256. Arkansas Tobacco Control — Powers. 4
	2439	+	(a) Arkansas Tobacco Control shall: 5
	2440	+	(1) Promulgate rules for the proper enforcement and 6
	2441	+	implementation of this subchapter and the Unfair Cigarette Sales Act, § 4 -75-7
	2442	+	701 et seq.; 8
2573	2443		(2)(A) Receive applications for and issue, refuse, suspend, and 9
2574		-	revoke permits listed in § 26 -57-219 and § 20-56-~~501~~ et seq. 10
	2444	+	revoke permits listed in § 26 -57-219 and § 20-56-401 et seq. 10
2575	2445		(B) Arkansas Tobacco Control shall refuse to issue or 11
2576	2446		renew any permits issued by the Director of Arkansas Tobacco Control for the 12
2577	2447		failure to pay: 13
2578	2448		(i) Any applicable taxes or fees imposed on tobacco 14
2579		-	products,; 15
2580		-	(ii) ~~Permit~~ permit fees imposed under this 16
2581		-	~~subchapter and~~ § 20-56-~~501~~ et seq.;, or 17
2582		-	(iii) ~~Any any~~ other state or local taxes; 18
	2449	+	products; 15
	2450	+	(ii) Permit fees imposed under this subchapter or on 16
	2451	+	hemp-derived products under § 20 -56-401 et seq.; or 17
	2452	+	(iii) Other state or local taxes; 18
2583	2453		(3) Prescribe forms of applications for permits under this 19
2584		-	subchapter and § 20-56-501 et seq.; 20
	2454	+	subchapter and § 20-56-401 et seq.; 20
	2455	+	(4)(A) Cooperate with the Revenue Division of the Department of 21
	2456	+	Finance and Administration in the enforcement of the tax laws affecting the 22
	2457	+	sale of tobacco products in this state and in the enforcement of all other 23
	2458	+	state and local tax laws. 24
	2459	+	(B) To facilitate efforts to cooperate with the division 25
	2460	+	concerning the enforcement of all other state and local tax laws, Arkansas 26
	2461	+	Tobacco Control shall immediately require that the following additional 27
	2462	+	information be provided by all applicants for permit issuance or renewal: 28
	2463	+	(i) Federal tax identification numbers issued by the 29
	2464	+	Internal Revenue Service; 30
	2465	+	(ii) Social Security numbers; and 31
	2466	+	(iii) State sales tax account numbers assigned by 32
	2467	+	the Department of Finance and Administration, if applicable. 33
	2468	+	(C)(i) Each year Arkansas Tobacco Control shall provide a 34
	2469	+	list of all applicants for the issuance or renewal of all tobacco products, 35
	2470	+	vapor product, alternative nicotine product, or e -liquid product permits to 36 SB533
	2471	+
	2472	+	66 03/20/2025 11:19:12 AM JMB498
	2473	+	the Secretary of the Department of Finance and Administration. 1
	2474	+	(ii) This list shall contain the identifying 2
	2475	+	information required by subdivision (a)(4)(B) of this section as well as the 3
	2476	+	name of the permittee and the permittee's current business address; 4
	2477	+	(5)(A) Collect civil penalties assessed by the Arkansas Tobacco 5
	2478	+	Control Board under § 26 -57-255. 6
	2479	+	(B) Unless the civil penalty is paid within fifteen (15) 7
	2480	+	days following the date for an appeal from the order, the director shall have 8
	2481	+	the power to institute a civil action in the Pulaski County Circuit Court to 9
	2482	+	recover the civil penalties assessed; and 10
	2483	+	(6)(A) Provide notice to the retail location of an alleged 11
	2484	+	violation of § 5-27-227 within ten (10) days of the alleged violation. 12
	2485	+	(B) The notice required under subdivision (a)(6)(A) of 13
	2486	+	this section shall contain the date and time of the alleged violation. 14
	2487	+	(b) Any tobacco products, vapor products, alternative nicotine 15
	2488	+	products, e-liquid products, hemp -derived products as defined in § 20 -56-402, 16
	2489	+	or cigarette papers found in the possession of a minor may be confiscated and 17
	2490	+	destroyed. 18
	2491	+	(c) Except as otherwise provided by law, the penalties collected under 19
	2492	+	this section shall be deposited into the State Treasury. 20
2585	2493		21
2586		-	SECTION 19. Arkansas Code § 26 -57-256(b), effective until the 22
2587		-	contingency in Acts 2023, No. 629, § 17, is met, concerning the powers of 23
2588		-	Arkansas Tobacco Control, is amended to read as follows: 24
2589		-	(b) Any tobacco products, vapor products, alternative nicotine 25
2590		-	products, e-liquid products, consumable hemp products, or cigarette papers 26
2591		-	found in the possession of a minor may be confiscated and destroyed. 27
2592		-	28
2593		-	SECTION 20. Arkansas Code § 26 -57-256, effective if the contingency in 29
2594		-	Acts 2023, No. 629, § 17, is met, is repealed. 30
2595		-	26-57-256. Arkansas Tobacco Control — Powers. 31
2596		-	(a) Arkansas Tobacco Control shall: 32
2597		-	(1) Promulgate rules for the proper enforcement and 33
2598		-	implementation of this subchapter and the Unfair Cigarette Sales Act, § 4 -75-34
2599		-	701 et seq.; 35
2600		-	(2)(A) Receive applications for and issue, refuse, suspend, and 36 As Engrossed: S4/2/25 H4/8/25 SB533
2601		-
2602		-	66 04-08-2025 10:08:29 JMB498
2603		-
2604		-
2605		-	revoke permits listed in § 26 -57-219 and § 20-56-401 et seq. 1
2606		-	(B) Arkansas Tobacco Control shall refuse to issue or 2
2607		-	renew any permits issued by the Director of Arkansas Tobacco Control for the 3
2608		-	failure to pay: 4
2609		-	(i) Any applicable taxes or fees imposed on tobacco 5
2610		-	products; 6
2611		-	(ii) Permit fees imposed under this subchapter or on 7
2612		-	hemp-derived products under § 20 -56-401 et seq.; or 8
2613		-	(iii) Other state or local taxes; 9
2614		-	(3) Prescribe forms of applications for permits under this 10
2615		-	subchapter and § 20-56-401 et seq.; 11
2616		-	(4)(A) Cooperate with the Revenue Division of the Department of 12
2617		-	Finance and Administration in the enforcement of the tax laws affecting the 13
2618		-	sale of tobacco products in this state and in the enforcement of all other 14
2619		-	state and local tax laws. 15
2620		-	(B) To facilitate efforts to cooperate with the division 16
2621		-	concerning the enforcement of all other state and local tax laws, Arkansas 17
2622		-	Tobacco Control shall immediately require that the following additional 18
2623		-	information be provided by all applicants for permit issuance or renewal: 19
2624		-	(i) Federal tax identification numbers issued by the 20
2625		-	Internal Revenue Service; 21
2626		-	(ii) Social Security numbers; and 22
2627		-	(iii) State sales tax account numbers assigned by 23
2628		-	the Department of Finance and Administration, if applicable. 24
2629		-	(C)(i) Each year Arkansas Tobacco Control shall provide a 25
2630		-	list of all applicants for the issuance or renewal of all tobacco products, 26
2631		-	vapor product, alternative nicotine product, or e -liquid product permits to 27
2632		-	the Secretary of the Department of Finance and Administration. 28
2633		-	(ii) This list shall contain the identifying 29
2634		-	information required by subdivision (a)(4)(B) of this section as well as the 30
2635		-	name of the permittee and the permittee's current business address; 31
2636		-	(5)(A) Collect civil penalties assessed by the Arkansas Tobacco 32
2637		-	Control Board under § 26 -57-255. 33
2638		-	(B) Unless the civil penalty is paid within fifteen (15) 34
2639		-	days following the date for an appeal from the order, the director shall have 35
2640		-	the power to institute a civil action in the Pulaski County Circuit Court to 36 As Engrossed: S4/2/25 H4/8/25 SB533
2641		-
2642		-	67 04-08-2025 10:08:29 JMB498
2643		-
2644		-
2645		-	recover the civil penalties assessed; and 1
2646		-	(6)(A) Provide notice to the retail location of an alleged 2
2647		-	violation of § 5-27-227 within ten (10) days of the alleged violation. 3
2648		-	(B) The notice required under subdivision (a)(6)(A) of 4
2649		-	this section shall contain the date and time of the alleged violation. 5
2650		-	(b) Any tobacco products, vapor products, alternative nicotine 6
2651		-	products, e-liquid products, hemp -derived products as defined in § 20 -56-402, 7
2652		-	or cigarette papers found in the possession of a minor may be confiscated and 8
2653		-	destroyed. 9
2654		-	(c) Except as otherwise provided by law, the penalties collected under 10
2655		-	this section shall be deposited into the State Treasury. 11
2656		-	12
2657		-	SECTION 21. Uncodified Section 17 of Acts 2023, No. 629, which 13
2658		-	reflects changes to the references to "Sections 6 -14", and "Sections 2 -5" in 14
2659		-	Acts 2023, No. 629, §§ 16 and 17 made by the Arkansas Code Revision 15
2660		-	Commission, is repealed. 16
2661		-	SECTION 17. Contingent effective date. 17
2662		-	Sections 6-14 [8-16] of this act shall become effective only upon the 18
2663		-	certification of the Arkansas Attorney General that the State of Arkansas is 19
2664		-	currently enjoined from enforcing Sections 2 -5 [2-7] of this act relating to 20
2665		-	delta-8 tetrahydrocannabinol and delta -10 tetrahyrdocannabinol, but no 21
2666		-	earlier than August 1, 2023. 22
2667		-	23
2668		-	SECTION 22. DO NOT CODIFY. SEVERABILITY CLAUSE. If any provision of 24
2669		-	this act or the application of this act to any person or circumstance is held 25
2670		-	invalid, the invalidity shall not affect other provisions or applications of 26
2671		-	this act which can be given effect without the invalid provision or 27
2672		-	application, and to this end, the provisions of this act are declared 28
2673		-	severable. 29
2674		-	30
2675		-	SECTION 23. CONTINGENT EFFECTIVE DATE. 31
2676		-	(a) This act shall be effective on and after the certification of the 32
2677		-	Attorney General that: 33
2678		-	(1) A final judgement in the case of Bio Gen LLC, et al v. 34
2679		-	Sanders, et al, 4:23 -cv-00718-BRW, and any subsequent appeals upholds the 35
2680		-	legality of Acts 2023, No. 629; 36 As Engrossed: S4/2/25 H4/8/25 SB533
2681		-
2682		-	68 04-08-2025 10:08:29 JMB498
2683		-
2684		-
2685		-	(2) The United States Congress explicitly delegates the 1
2686		-	authority to the states to more stringently regulate or ban hemp -derived 2
2687		-	products; 3
2688		-	(3) The United States Congress amends the Agricultural Marketing 4
2689		-	Act of 1946 to exclude from the definition of hemp any intoxicating 5
2690		-	cannabinoids or otherwise disallows intoxicating hemp -derived products; or 6
2691		-	(4) The United States Congress amends the Agriculture 7
2692		-	Improvement Act of 2018 or passes a new Agriculture Improvement Act that 8
2693		-	excludes from the definition of hemp any intoxicating cannabinoids or 9
2694		-	otherwise disallows intoxicating hemp -derived substances. 10
2695		-	(b) The Attorney General shall notify the Director of the Bureau of 11
2696		-	Legislative Research and the Arkansas Code Revision Commission if he or she 12
2697		-	makes a certification under subsection (a) of this section. 13
2698		-	14
2699		-	/s/Dees 15
2700		-	16
2701		-	17
2702		-	APPROVED: 4/21/25 18
2703		-	19
2704		-	20
2705		-	21
2706		-	22
2707		-	23
2708		-	24
2709		-	25
2710		-	26
2711		-	27
2712		-	28
2713		-	29
2714		-	30
2715		-	31
	2494	+	SECTION 20. Uncodified Section 17 of Acts 2023, No. 629, which 22
	2495	+	reflects changes to the references to "Sections 6 -14", and "Sections 2 -5" in 23
	2496	+	Acts 2023, No. 629, §§ 16 and 17 made by the Arkansas Code Revision 24
	2497	+	Commission, is repealed. 25
	2498	+	SECTION 17. Contingent effective date. 26
	2499	+	Sections 6-14 [8-16] of this act shall become effective only upon the 27
	2500	+	certification of the Arkansas Attorney General that the State of Arkansas is 28
	2501	+	currently enjoined from enforcing Sections 2 -5 [2-7] of this act relating to 29
	2502	+	delta-8 tetrahydrocannabinol and delta -10 tetrahyrdocannabinol, but no 30
	2503	+	earlier than August 1, 2023. 31
2716	2504		32
2717		-	33
	2505	+	SECTION 21. DO NOT CODIFY. SEVERABILITY CLAUSE. If any provision of 33
	2506	+	this act or the application of this act to any person or circumstance is held 34
	2507	+	invalid, the invalidity shall not affect other provisions or applications of 35
	2508	+	this act which can be given effect without the invalid provision or 36 SB533
	2509	+
	2510	+	67 03/20/2025 11:19:12 AM JMB498
	2511	+	application, and to this end, the provisions of this act are declared 1
	2512	+	severable. 2
	2513	+	3
	2514	+	SECTION 22. DO NOT CODIFY. Rules. 4
	2515	+	(a) When adopting the initial rules required under this act, Arkansas 5
	2516	+	Tobacco Control shall file the final rules with the Secretary of State for 6
	2517	+	adoption under § 25-15-204(f): 7
	2518	+	(1) On or before January 1, 2026; or 8
	2519	+	(2) If approval under § 10 -3-309 has not occurred by January 1, 9
	2520	+	2026, as soon as practicable after approval under § 10 -3-309. 10
	2521	+	(b) Arkansas Tobacco Control shall file the proposed rules with the 11
	2522	+	Legislative Council under § 10 -3-309(c) sufficiently in advance of January 1, 12
	2523	+	2026, so that the Legislative Council may consider the rules for approval 13
	2524	+	before January 1, 2026. 14
	2525	+	15
	2526	+	SECTION 23. EMERGENCY CLAUSE. It is found and determined by the 16
	2527	+	General Assembly of the State of Arkansas that current Arkansas law does not 17
	2528	+	properly regulate the delta tetrahydrocannabinol substances addressed in this 18
	2529	+	act; that the absence of proper regulation of these delta 19
	2530	+	tetrahydrocannabinol substances has allowed anyone of any age to access these 20
	2531	+	delta tetrahydrocannabinol substances; that this unrestricted access to these 21
	2532	+	delta tetrahydrocannabinol substances presents a grave risk to public health 22
	2533	+	and safety; and that this act is immediately necessary to remove the grave 23
	2534	+	risk to health and safety of the residents of this state. Therefore, an 24
	2535	+	emergency is declared to exist, and this act being immediately necessary for 25
	2536	+	the preservation of the public peace, health, and safety shall become 26
	2537	+	effective on: 27
	2538	+	(1) The date of its approval by the Governor; 28
	2539	+	(2) If the bill is neither approved nor vetoed by the Governor, 29
	2540	+	the expiration of the period of time during which the Governor may veto the 30
	2541	+	bill: or 31
	2542	+	(3) If the bill is vetoed by the Governor and the veto is 32
	2543	+	overridden, the date the last house overrides the veto. 33
2718	2544		34
2719	2545		35
2720	2546		36