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006.28.1-VI. Processor Application, Licensing, & Renewal

AR ADC 006.28.1-VIArkansas Administrative CodeEffective: December 13, 2020

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 28. Medical Marijuana Commission
Rule 1. Rules and Regulations Governing the Application for, Issuance, and Renewal of Licenses for Medical Marijuana Cultivation Facilities, Dispensaries, and Processors in Arkansas
Effective: December 13, 2020
Ark. Admin. Code 006.28.1-VI
006.28.1-VI. Processor Application, Licensing, & Renewal
Currentness
1. License Required
a. No person or entity shall operate as a processor unless licensed by the [FN1]
3. [FN1] Renewal
a. The Commission shall issue a renewal license within ten (10) days of the date the Commission receives a complete renewal application, including the payment of a renewal fee.
b. A renewal application for a processor license shall be submitted to the Commission on a form and in a manner prescribed by the Commission at least thirty (30) days prior to the expiration date on the license and shall require, without limitation:
i. Proof that the licensee is in good standing with the Arkansas Secretary of State; and
ii. Proof that the licensee is in good standing with the Arkansas Department of Finance and Administration.
c. Before renewing a license, the Commission may require further information and documentation and may conduct additional background checks to determine that the licensee continues to meet the requirements set out in these rules or the rules of the Arkansas Department of Health or Arkansas Alcoholic Beverage Control Division.
d. The renewal application shall be signed and sworn before a notary as being true and correct.
e. A processor whose license is not renewed shall cease all operations immediately upon expiration of the license, return the license to the Commission, and any marijuana or marijuana products remaining in the processor's possession shall be destroyed or transferred pursuant to Arkansas Alcoholic Beverage Control requirements.
4. Denial of Application for or Renewal of a License
a. The Commission may deny an application for or renewal of a license for any of the following reasons:
i. Failure to provide the information or meet the requirements described in the Amendment, these rules, or the rules of the Arkansas Department of Health or Arkansas Alcoholic Beverage Control Division;
ii. An owner, board member, or office has been an owner of a dispensary, cultivation facility, transporter, distributor, or processor that has had a license revoked;
iii. Provision of misleading, incorrect, false, or fraudulent information;
iv. Failure to pay all applicable fees as required;
v. The applicant has an owner, board member, or officer with a background history that indicates the person does not have a reputable and responsible character or would pose a risk to the health, safety, or welfare of the public or qualifying patients; or
vi. Any other ground that serves the purpose of these rules or the rules of the Arkansas Department of Health or Arkansas Alcoholic Beverage Control Division.
b. If the Commission denies an application for or renewal of a license, the Commission shall notify the applicant in writing of the Commission's decision, including the reason for the denial.
c. A person aggrieved by a decision made pursuant to this section may appeal in accordance with the procedures described in this rule.
5. Change in Information
a. The processor shall notify the Commission of any changes in contact information, including a change of address.
b. The processor licensee shall notify the Commission in writing no less than fourteen (14) days in advance of any change in the information provided in its original application for licensure, along with supporting documentation to prove the processor continues to be qualified. In the event of a change for which a processor licensee does not have prior notice, the licensee shall notify the Commission immediately upon learning of the change.
c. The licensee shall notify the Commission of the following:
i. The arrest or conviction for any felony of any owner, board member, or officer;
ii. Any of the licensee's owners, board members, or officers owes delinquent taxes to the State of Arkansas or the federal government.
iii. The temporary closure of the business for any reason for longer than fifteen (15) days;
iv. The permanent closure of the business;
v. The filing of bankruptcy by the entity or by any of the entity's owners; or
vi. Any other change that may affect the licensee's qualification for licensure.
d. If the Commission determines that the change has the potential to disqualify a licensee, the Commission shall refer the matter to the Alcoholic Beverage Control Division for adjudication.
6. Surrender of License
a. A processor may voluntarily surrender a license to the Commission at any time.
b. If a processor licensee voluntarily surrenders a license, the processor shall:
i. Return the license to the Commission;
ii. Submit a report to the Commission including the reason for surrendering the license; contact information following the close of business; the person or persons responsible for the close of the business; and where business records will be retained; and
iii. Tender all marijuana to another facility in accordance with Division requirements. No portion of the licensing fee shall be returned to the processor licensee if the license is voluntarily surrendered prior to the expiration of the license.
7. FEES
Processor License Fee -- $5,000.
Processor Renewal Fee -- $5,000.
8. APPEALS
1. If the Commission denies an application for the issuance or renewal of a processor license, the licensee may request a hearing before the Commission by filing a written request no later than fifteen (15) days from receipt of the notice of denial from the Commission.
2. The Commission shall provide notice of the hearing to all interested parties, conduct the hearing, and issue a decision in accordance with the Arkansas Administrative Procedure Act, §§ 25-15-201 et seq.
3. The Commission's decision may be appealed to the circuit court of the county in which the processor is situated or the Pulaski County Circuit Court. Appeals shall be governed by the terms of the Arkansas Administrative Procedure Act, §§ 25-15-201 et seq.

Credits

Adopted Dec. 13, 2020.
[FN1]
So in original.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.28.1-VI, AR ADC 006.28.1-VI
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