New Market: Smooth rollout expected for Arkansas MMJ industry

New Market: Smooth rollout expected for Arkansas MMJ industry

By Bart Schaneman

The Arkansas medical marijuana industry is expected to experience a smooth launch and will likely serve a small, but not tiny, market.

After a previous legalization measure failed narrowly in 2012, voters in the Bible Belt statepassed an initiative on Nov. 8to allow the use, cultivation and sale of medical cannabis.

The proposal passed by a margin of 53% to 47%.

According to initial estimates by

Several aspects of the law work in the business communitys favor.

For one, the states MMJ conditions list is relatively broad, which could bring many patients into the fold and help create a viable market for businesses. Medical marijuana dispensaries also will be able to sell to out-of-state patients who get an MMJ card after obtaining a written certification from an Arkansas physician; that certification must then be submitted to the state health department. Suchpatients would boost the market.

Additionally, the state plans to award dozens of business licenses, which will create ample opportunities for both plant-touching and ancillary companies that serve them.

Although Arkansas isin the South where resistance to cannabis remains fairly strong local marijuana proponents anticipate a straightforward industry rollout.

Were not going to have a problem at all, predicted David Couch, an Arkansas attorney who led the legalization effort.

Licenses and fees

Couch said since the election hes had a number of physicians call him wanting to know how to open a dispensary. Hes also had several queries from people interested in becoming cultivators, as well as insurance brokers and those wanting to sell dirt, lights, greenhouses and security services.

I cant even tell you how many have called, Couch said.

The lawallows for 20-40 dispensary licenses. Each dispensary will be able to grow up to 50 plants and be able to trade strains with other operators. Licenses will be limited to four per county.

Other licensing details:

  • Between fourand eight cultivation licenses will be available, and growers will be allowed to sell to any dispensary.
  • A license holder will be limited to one dispensary and one cultivation facility.
  • The law mandates that those seeking a license be residents of Arkansas (meaning they have lived there for seven years). But a minority interest of up to 40% will be allowed in case somebody in Arkansas needs to get capital from out of state, Couch said.
  • The application fee for a dispensary license will cost $7,500 and the fee for a cultivation license will be $15,000.

Andrew King, a cannabis lawyer in Little Rock,advises potential proprietors to own land prior to applying for a license, because a facility address is an application requirement.

He saidentrepreneurs shouldwatch who is appointed to the five-member oversight commission, which could happen as soon as today, Dec. 7. The commission will oversee the licensing and application process. Members of Arkansas legislature where Republicans hold a majority will have a say in the commissions makeup, and GOP lawmakers had opposed the initiative.

Conditions list, patient count

The MMJ conditions list includes the following:

  • Intractable pain that has not responded to other treatment for at least six months
  • HIV/AIDS
  • Cancer
  • Glaucoma
  • Crohns disease
  • Post-traumatic stress disorder
  • Seizures
  • Hepatitis C
  • Amyotrophic lateral sclerosis
  • Tourettes syndrome
  • Ulcerative colitis
  • Severe arthritis
  • Fibromyalgia
  • Alzheimers disease

In addition, patients with doctors certifications can qualify if they have a chronic or debilitating medical condition that produces cachexia or wasting syndrome, peripheral neuropathy, severe nausea, and severe or persistent muscle spasms.

The Department of Health can expand the list.

Based on the current conditions list and other factors,Marijuana

Timeline

The Marijuana Policy Project estimates it could take up to a year before patients can start using medical cannabis.

As soon as Dec. 7, Arkansas governor and legislators will appoint a five-member Medical Marijuana Commission.

Regulations are scheduled ...

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