The Arkansas Medical Marijuana Commission has set the annual fee to operate a medical marijuana cultivation facility at $100,000.
The commission also decided this week that applicants for the five available cultivation licenses must have a $1 million bond or assets worth $1 million and the ability to demonstrate $500,000 in cash liquidity, according to the Arkansas Democrat-Gazette.
This is on top of the $15,000 application fee regulators approved last week.
The financial requirements are quite high compared to many other states, although a few other markets charge even more. Maryland, for example, assesses a $165,000 fee annually a cultivator license.
Some of the money generated in Arkansas by the licensing fee will help fund the MMJ commission and law enforcement.
The Arkansas Democrat-Gazette reports that it’s estimated it will cost the state $4 million-$6 million a year to oversee the new MMJ industry, while tax revenue from medical cannabis sales is expected to generate only $2.5 million.
Also Tuesday, the commission said the five grows won’t have to be spread out among the state’s five health regions, as regulators previously discussed.
Sounds like another program set up for failure from the beginning. Who are they kidding with a 4-6M$ cost to enforce for an expected 2.5 M$ income.
Bravo, unbelievable to see MMJ becoming positively interwoven in our lives.