ArkansasSB5332025 Regular SessionSenateWALLET

TO PROVIDE FOR THE REGULATION OF CONSUMABLE HEMP PRODUCTS BY THE ARKANSAS TOBACCO CONTROL BOARD; AND TO AMEND THE ARKANSAS LAW TO ALLOW REGULATION AND PURCHASE OF CONSUMABLE HEMP PRODUCTS.

Sponsored By: Tyler Dees (Republican), Jimmy Gazaway (Republican)

Enacted

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 1 benefits, 3 costs, 6 mixed.

Hemp violations bring criminal business risks

Selling, taking orders, delivering, buying, or selling hemp without the required permit is a Class A misdemeanor upon conviction. Purposeful, knowing, or reckless violations of production, manufacturing, sales, distribution, marketing, or processing rules carry misdemeanor penalties. Those penalties include up to $5,000, up to one year in county jail, or both. Purposeful, knowing, or reckless manufacture, marketing, or sale of intoxicating hemp is a felony. A convicted holder whose permit is suspended or revoked must surrender it to the court; renewal or new permits may be barred for the court-set period.

Hemp businesses face annual permit fees

The law makes the framework effective only after the Attorney General certifies a listed federal or court development. Covered hemp businesses need annual permits; manufacturer, wholesaler, and retailer permits each cost $5,000 and expire June 30. Manufacturers selling products in Arkansas must also register with the Department of Finance and Administration. Permits cannot cover homes, mobile structures, vehicles, or improperly zoned sites. Fees support Arkansas Tobacco Control operations and merchant training; the funding provision applies until the separate 2023-law contingency is met.

Hemp makers face intoxicating product bans

The law treats finished hemp products for human use with total THC above 0% as Schedule VI controlled substances. Otherwise legal consumable hemp and medical marijuana regulated under Amendment 98 are excluded. Cannabis-derived business activity needs authorization under the hemp rules or medical marijuana amendment; unreported consumable hemp products cannot be handled. Consumable hemp cannot contain ethanol, nicotine, tobacco, intoxicating hemp, or THC amounts posing misuse, overdose, accidental overconsumption, or inaccurate-dose risks. The law also bans intoxicating hemp manufacture and sales, sales to minors, and marketing for intoxication, as containing THC, or with unlawful drug or health claims.

Hemp shoppers get required health warnings

Hemp sellers must post a clearly visible notice where products are available for purchase. It must state that the product contains THC and that minors cannot buy it. It must warn pregnant or breastfeeding women against THC use because of birth and developmental defect risks. Missing notices bring a first-offense fine of at least $500 and later fines of up to $1,000 each. Each violation and each day count separately.

Hemp sellers must use listed products

The law sets December 1, 2025, as the first annual certification deadline for manufacturers selling retail hemp products in Arkansas. In-state and out-of-state manufacturers must certify compliance under penalty of perjury, listing every brand, category, product name, and flavor. The Board must maintain a public directory from that date, update it at least monthly, and notify licensed sellers of changes. Starting 90 calendar days after publication, unlisted products cannot be bought or sold for retail and face seizure, forfeiture, and destruction. Sellers face up to $500 per individual product per violation until removal or listing; penalties go to the Tobacco Control Revenue Fund.

Hemp retailers face sales channel limits

Permitted hemp sellers cannot use self-service displays, vending machines, or orders completed solely online or through similar means. They also cannot advertise or promote hemp in ways intended to appeal to minors. Sellers have the right to refuse a hemp sale to any person.

Qualifying hemp shipments can cross Arkansas

The Schedule VI changes preserve interstate transport through Arkansas for hemp meeting the stated THC limit or January 1, 2025 federal definition. The consumable hemp rules also protect through-shipments containing no more than 0.3% delta-9 THC by dry weight. That protection covers shipments from a licensed producer in another state to a licensed handler in another state.

Harmed consumers gain hemp lawsuit rights

People harmed by hemp-rule violations can sue, and violations trigger Arkansas deceptive trade practice remedies and penalties. The Attorney General and county prosecutors can enforce the rules; state, county, and city officials must assist the Board. After notice and a hearing, the Board can suspend or revoke permits and impose up to $5,000 per violation. Each day counts separately, and the Board's authority includes sales to minors. After an administrative finding of guilt involving seized hemp, the Board must order the products destroyed.

New safeguards limit minors' hemp access

Covered businesses cannot give minors free hemp samples, product components, or coupons for free samples. Public street and sidewalk giveaways are also barred within 500 feet of playgrounds, public schools, or other facilities while mainly used by minors. Permit holders must display a sign saying sales to minors, and minors' purchases or possession, are illegal. Minors may assist store compliance checks or act as retail agents with written parental consent on file and must appear underage. They must show true identification when asked; failure to provide it is a defense in enforcement or related civil cases.

Legal hemp exceptions carry strict limits

Qualifying consumable hemp products are excluded from Arkansas's marijuana definition but remain subject to hemp rules. Industrial hemp must meet the stricter of the 0.3% delta-9 THC dry-weight limit and the January 1, 2025 federal definition. The controlled-substance exception for THC in hemp-derived cannabidiol also requires a nationally accredited laboratory to verify quality, purity, and accuracy. That exception excludes products approved by the Food and Drug Administration for marketing as medicine.

Sponsors & Cosponsors

Sponsors

  • Tyler Dees

    Republican • Senate

  • Jimmy Gazaway

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 124 • No: 8

Senate vote • 4/15/2025

Senate Vote - Tuesday, April 15, 2025 1:34:24 PM

Yes: 26 • No: 0 • Other: 8

House vote • 4/14/2025

House Vote - Monday, April 14, 2025 4:45:22 PM

Yes: 72 • No: 8 • Other: 7

Senate vote • 4/3/2025

Senate Vote - Thursday, April 3, 2025 3:38:48 PM

Yes: 26 • No: 0 • Other: 6

Actions Timeline

  1. Notification that SB533 is now Act 934

    4/22/2025Senate
  2. DELIVERED TO GOVERNOR.

    4/16/2025Senate
  3. Reported correctly enrolled and ordered delivered to the Governor.

    4/16/2025Senate
  4. ORDERED ENROLLED

    4/15/2025Senate
  5. Read the third time and passed.

    4/15/2025Senate
  6. Rules suspended.

    4/15/2025Senate
  7. House Amendment No. 1 read first time, rule suspended, read second time and concurred in.

    4/15/2025Senate
  8. Placed on second reading for purpose of amendment.

    4/15/2025Senate
  9. Returned from the House as passed as amended # 1 .

    4/14/2025Senate
  10. Returned to Senate as passed, as amended # 1

    4/14/2025House
  11. Read the third time and passed and ordered transmitted to the Senate.

    4/14/2025House
  12. Returned by the Committee Do Pass

    4/9/2025House
  13. REPORTED CORRECTLY ENGROSSED

    4/8/2025House
  14. Amendment No. 1 read and adopted and the bill ordered engrossed.

    4/8/2025House
  15. Placed on second reading for the purpose of amendment.

    4/8/2025House
  16. Read the first time, rules suspended, read the second time and referred to the Committee on HOUSE RULES

    4/3/2025House
  17. RECEIVED FROM THE SENATE

    4/3/2025House
  18. Ordered immediately transmitted to the House.

    4/3/2025Senate
  19. Read the third time and passed.

    4/3/2025Senate
  20. REPORTED CORRECTLY ENGROSSED

    4/2/2025Senate
  21. Amendment # 1 read the first time, rules suspended, read the second time and adopted, ordered engrossed.

    4/2/2025Senate
  22. Placed on second reading for purpose of amendment.

    4/2/2025Senate
  23. Returned by the Committee with the recommendation that it Do Pass as amended, Amendment # 1

    4/1/2025Senate
  24. Read first time, rules suspended, read second time, referred to AGRICULTURE, FORESTRY & ECONOMIC DEVELOPMENT - SENATE

    3/20/2025Senate
  25. Filed

    3/20/2025Senate

Bill Text

  • SB533 - Introduced

    3/20/2025

  • Act Version

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