Arkansas is the Latest State to Squash Potential for Small Cannabis Businesses

Medical cannabis regulation is starting to take shape in the state of Arkansas, but it appears to be bad news for any potential entrepreneur who isn’t extremely wealthy. Huge fees and inflated capital requirements are facing potential cannabis businesses in the state of Arkansas. The state’s Medical Marijuana Commission enacted a large licensing fee of $100,000 on cannabis cultivation businesses. According to KATV, this decision was reached despite Commissioner Travis Story’s fight to include small business owners with a smaller license fee of $15,000.

KATV also reported that although the $100,000 fee is huge, Commissioner Travis Story wanted attempted to convince the commission to set the fee at a whopping $185,000. He argued that huge fees are necessary to ensure that cultivation business owners have the capital it takes to run a successful business.

Licensed cannabis growers in the state will have to pay the $100,000 fee annually when attempting to renew their licenses. In order to apply to get a license, potential business owners have to pay $15,000, and they are only refunded half of the fee is their application is rejected.

There will be additional requirements on potential cannabis businesses, which all hurt the potential for small cannabis business in the Arkansas. Applicants have to show that they are worth $500,000 in cash, in addition to holding $1 million dollars in either a surety bond or assets.

Arkansas’ Medical Marijuana Commission will be awarding five licenses for cannabis cultivation facilities in the state. Applicants who show how their businesses will positively impact the local community they attempt to operate in will have a better chance of being awarded one of the five licenses.

Although the November election brought a medical cannabis industry to Arkansas, it is unfortunate that the profits for cannabis cultivation will be kept to those who are already wealthy.