The State of Medical Marijuana Erika Gee 501.212.1305 | EGee@wlj.com

Issue No. 6: Arkansas Medical Marijuana Amendment of 2016

What Issue No. 6 Does: DOES: DOES NOT: Legalize the use of marijuana by “qualifying patients” Allow the formal designation of “caregivers” to assist patients Authorize 20-40 dispensaries Authorize 4-8 cultivation facilities DOES NOT: Authorize growing marijuana at home Legalize the recreational use of marijuana

Agencies Overseeing Implementation and Regulation Department of Health Medical Marijuana Commission Alcoholic Beverage Control

Qualifying Conditions Cancer Cachexia or Wasting Syndrome Glaucoma Peripheral Neuropathy HIV/Aids Intractable pain that does not respond to ordinary medications, treatment, or surgical measures for more than six months Hepatitis C Amyotrophic Lateral Sclerosis Tourette’s Syndrome Severe nausea Crohn’s Disease Seizures, including Epilepsy Ulcerative Colitis Severe or persistent muscle spasms, including Multiple Sclerosis PTSD Severe Arthritis Fibromyalgia Alzheimer’s Disease

Adding Qualifying Conditions The DOH established a petition process for adding additional qualifying conditions: Applicants must submit a petition, including evidence “generally accepted by the medical community” that medical cannabis alleviates suffering caused by the proposed qualifying condition A public hearing will be held The Director of DOH will make a final decision

Registering Patients Must be over 18 and present an Arkansas driver’s license or photo ID Must submit “written certification” from a physician $50 fee For a minor, a parent or guardian must give written consent and register as the minor’s designated caregiver Registration must be renewed annually

Residents of Other States Residents of other states may qualify to obtain medical marijuana while visiting Arkansas if: The visitor comes from a state that issues medical marijuana patient registration cards The visitor presents their card to the dispensary

Registering Designated Caregivers Point 1 Point 2 Identification of the applicant’s qualifying patient Criminal Background Check $50 fee Registration must be renewed annually

Applications will be denied if: Point 1 Point 2 The applicant has had a registration revoked in another state The physician did not have a physician-patient relationship with the patient The certification or application is fraudulent or falsified

Confidentiality Point 1 Point 2 All information regarding patients and caregivers is confidential Information cannot be released under the Arkansas Freedom of Information Act MMC and ABC may access registration information DOH may verify registry status to law enforcement

Cultivation Facilities Issue 6 authorizes 8 cultivation facilities Facilities will serve as the primary source of all medical marijuana products in Arkansas MMC will initially license 5 facilities and reserve the remaining 3 Can be located anywhere in Arkansas, except within 3,000 feet of an existing school, church, or daycare Cultivation facilities cannot participate in retail sales Point 1 Point 2

Cultivation Facility Application The cultivation facility application requires: Written application with merit-based criteria Arkansas residency Arkansas ownership, criminal, professional, and financial history $1,000,000 proof of assets or surety bond Proof of $500,000 liquid assets $15,000 application fee (half refundable if applicant is not selected $100,000 licensing fee $500,000 performance bond due to MMC within seven days if selected Point 1 Point 2

Dispensaries Point 1 Point 2 Issue 6 authorizes up to 40 dispensaries MMC will initially license 32 dispensaries The remaining 8 will be distributed to address demand or diversity goals State is divided into 8 geographical regions—4 dispensaries will be awarded in each region Cannot be located within 1,500 feet of an existing school, church, or daycare Must comply with local zoning Point 1 Point 2

Dispensaries Point 1 Point 2 Dispensaries have broad authorization for retail sales to patients Can sell medical marijuana, non-smoking paraphernalia, related supplies, and educational material May engage in wholesale sales of marijuana to cultivation facilities and other dispensaries May grow up to 50 mature marijuana plants and unlimited additional seedlings Point 1 Point 2

Dispensary Application Dispensaries will be chosen on merit-based criteria Standards will be similar to the requirements for a cultivation facility Each geographical zone will be separately scored and awarded Requires a $200,000 proof of assets or surety bond Requires $100,000 in liquid assets Application fee of $7,500 (half refundable if application is unsuccessful License fee of $15,000 $100,000 performance bond must be submitted to the MMC within seven days, if selected Point 1 Point 2

Dispensary Pharmacist Consultant Required under Act 1024 of the 91st General Assembly Each dispensary must have a designated “pharmacist consultant” Consultant will develop educational materials, procedures and policies, and conduct staff trainings Consultant will be available for consultations with staff or patients Point 1 Point 2

Projected Timeline July 1 Oct. 1 Around the End of 2017 Spring 2018 MMC begins accepting applications for dispensaries and cultivation facilities Application for dispensaries and cultivation facilities closes MMC awards cultivation facility permits Medical marijuana becomes available to patients

DOH Proposed Rules: Product Testing Medical Marijuana will be tested for: Pesticides Moisture content Concentration of THC and CBD Heavy metals Marijuana concentrates and extracts must be tested for solvents unless: Produced through mechanical extraction or Used water, animal fat, or vegetable oil as a solvent Point 1 Point 2

DOH Proposed Rules: Labeling Labeling must include THC and CBD concentration Date of harvest Name of strain Activation time Name of the testing laboratory All required warnings A universal symbol for marijuana Labeling cannot contain misleading statements or labels that are attractive to minors Point 1 Point 2

ABC Proposed Rules: Labeling ABC regulates packaging, advertising, and marketing Advertising and marketing cannot include content that might “reasonably be considered to target children” Packaging cannot be shaped in a way likely to appeal to children, including the shape of: Animals Vehicles People or characters Familiar foods, drinks, or candy Point 1 Point 2

ABC Proposed Rules: Labeling Advertising cannot: Promote transportation of marijuana across state lines Display consumption of marijuana Encourage its use as an intoxicant Encourage excessive or rapid consumption No more than 30% of the audience for a program, publication, or website featuring advertising can be reasonably expected to be under the age of 18 Cultivation facilities cannot advertise to the general public Point 1 Point 2

Medical Marijuana Limitations Act 1024 Dispensaries cannot sell paraphernalia requiring combustion for the medical marijuana to be properly utilized This act will probably prevent the sale of pre-rolled marijuana cigarettes or “joints” Act 740 Patients cannot smoke marijuana anywhere that smoking tobacco is prohibited, in the presence of a pregnant woman or someone under 14 years old, inside a motorized vehicle, or in a place that is likely to cause a person who is not authorized to use it to become under the influence Patients under 21 cannot smoke marijuana at all Point 1 Point 2

Medical Marijuana Limitations ABC Rules Cannot apply extracts to commercially available candy, food, or drink Cannot make items that resemble cookies or brownies Act 593 Employers can establish drug-free workplace policies Employers can take disciplinary action or refuse to hire on the good faith that an employee used marijuana or was under the influence during working hours Employers can prevent a qualifying patient from holding a “safety sensitive position” Act 479 Members of the US military or Arkansas National Guard cannot become qualifying patients or designated caregivers Point 1 Point 2

Unanswered Questions Point 1 Point 2 The Trump administration’s intentions on enforcement of criminal possession Implications for banking, insurance, gun possession, and more

Erika Gee Partner 501.212.1305 | 501.680.4880 EGee@wlj.com Wright, Lindsey & Jennings LLP 200 West Capitol Avenue, Suite 2300 Little Rock, AR 72201 Main 501.371.0808 | wlj.com