Arkansas Cannabis License & Fees

Legal Disclaimer: This information reflects Arkansas cannabis law as of June 2026 and is for educational purposes only. It is not legal advice. Laws and regulations change — always verify current rules with the Arkansas Department of Health, Medical Marijuana Section or a qualified attorney. Cannabis remains illegal under federal law.

Last verified: May 2026

The Statutory Caps

Amendment 98 § 8, with implementing detail in AMMC rules, sets:

8 cultivation facilities statewide. All eight licenses have been issued (see cultivators page).
40 dispensaries statewide, with no more than four dispensaries per county.
Eight geographic zones, each with proportional dispensary allocation.
50 mature plants per dispensary on-site cultivation allowance (a small captive supply).

Fee Schedule

Fee Category	Cultivation Facility	Dispensary
Application fee	$15,000 ($7,500 refundable if denied)	$7,500 ($3,750 refundable)
Initial licensing fee	$100,000 annual	$15,000 (initial)
Annual renewal	$100,000	$22,500
Performance bond	$500,000	$100,000
Asset proof	$1M assets, $500K liquid	$200K assets, $100K liquid
Buffer from school / church / daycare	3,000 ft	1,500 ft
Cap statewide	8 (Amendment 98 § 8)	40 (max 4 per county)

Source: Amendment 98 § 8 and Arkansas Medical Marijuana Commission (AMMC) rules. Vertical integration is constrained but not prohibited — an entity may hold one cultivation license and one dispensary license. Dispensaries are also permitted to cultivate up to 50 mature plants on-site.

Cultivation Facility Capital Stack

To be eligible for a cultivation license, an applicant must demonstrate:

$15,000 application fee ($7,500 refundable if denied).
$100,000 annual licensing fee.
$500,000 performance bond.
$1 million in assets, of which $500,000 must be liquid.
Compliant facility location at least 3,000 feet from a school, church, or daycare.
Operational, security, and compliance plans meeting AMMC standards.
Local-government zoning approval and operating permits.

The total upfront capital required to begin cultivation operations — before facility construction, equipment, or production — is at minimum $1.6 million ($500K performance bond + $115K state fees + $1M asset demonstration on top of facility costs). Full operating costs typically run $5–$15 million for a Tier-1 facility.

Dispensary Capital Stack

Dispensary licensing capital requirements:

$7,500 application fee ($3,750 refundable if denied).
$15,000 initial licensing fee.
$22,500 annual renewal.
$100,000 performance bond.
$200,000 in assets, of which $100,000 must be liquid.
Compliant facility location at least 1,500 feet from a school, church, or daycare.
Local-government zoning approval and operating permits.

Vertical Integration

A single person or entity may not hold:

More than one cultivation license, OR
More than one dispensary license, OR
Beneficial ownership exceeding the AMMC’s threshold in multiple licenses.

However, a person or entity may legitimately hold one cultivation license and one dispensary license simultaneously. Several Arkansas operators take advantage of this single-step vertical integration: a cultivator-affiliated dispensary brand can move product from its own cultivation facility to its own retail location, capturing the full margin.

Why the Caps Matter

The supply caps are the central economic feature of Arkansas’s medical-cannabis market. Compared to:

Oklahoma: No statewide cap; 1,698 active dispensaries (April 2025 OMMA data) and 2,815 growers. Prices roughly half Arkansas’s.
Mississippi: No statewide cap on dispensaries; ~175 active. License tiers but no zone-based scarcity.
Florida: Vertical-integration mandate; ~25 license-holders operating ~700 dispensary locations statewide.
Pennsylvania: 50 grower/processor licenses; 174 dispensary permits authorized.

Arkansas’s 8 / 40 cap is at the low end of the spectrum. The result is the persistent ~2× price gap with Oklahoma documented across most product categories.

The 2024 Issue 3 Expansion Attempt

The 2024 Issue 3 ballot measure attempted (among other expansions) to add "Tier 2" small-cultivator licenses to the 8-cultivator cap, allow each existing licensee one additional retail location, and provide a path for new market entrants. The Arkansas Supreme Court enjoined Issue 3 before votes were counted (see Issue 3 page). The supply caps remain at 8 / 40 as of May 2026.

The 2025 SJR 13 Recreational Proposal

Sen. Joshua Bryant (R-Rogers) filed SJR 13 in 2023 attempting to put a legislatively referred recreational legalization measure on the 2024 ballot. The proposed structure included keeping the existing 8-cultivator cap with limited "craft cultivator" additions, and home-grow allowances. SJR 13 did not advance. As of May 2026, no recreational measure is on the 2026 ballot.

Arkansas Cannabis License Fees & Caps — Amendment 98 § 8