The Arkansas State Legislature introduced House Bill 1722 on March 10, 2025, aiming to regulate the manufacturing, wholesaling, and retailing of hemp-derived products in the state. The bill seeks to establish clear boundaries regarding ownership and management interests among different types of permit holders, ensuring that individuals cannot simultaneously hold interests in both manufacturing and retail or wholesale operations.

Key provisions of HB1722 include restrictions on ownership and management interests, mandating that a person with any stake in a permitted manufacturer cannot also have interests in a wholesaler or retailer. Additionally, management companies are prohibited from overseeing both manufacturers and wholesalers or retailers at the same time. The bill also stipulates that permits for manufacturing hemp-derived products will not be granted to individuals with felony convictions, reinforcing a commitment to responsible business practices.

The legislation outlines specific requirements for permit issuance, including location restrictions that prevent permits from being issued to residential addresses or locations not zoned for business. Furthermore, the Arkansas Tobacco Control agency is tasked with conducting criminal background checks on all permit applicants to ensure compliance with these regulations.

The proposed annual fees for permits are set at $10,000 for manufacturers, $1,000 for wholesalers, and $100 for retailers, with all permits expiring on June 30 of the year following issuance. Failure to renew permits on time will incur a late fee.

Debate surrounding HB1722 has highlighted concerns about the potential impact on small businesses and the hemp industry in Arkansas. Supporters argue that the bill will create a more structured and accountable market, while opponents fear it may stifle competition and limit opportunities for new entrants in the industry.

As the bill progresses through the legislative process, its implications could significantly shape the landscape of hemp-derived product regulation in Arkansas, influencing both economic growth and public safety. Stakeholders are closely monitoring developments, as the final outcome may set important precedents for similar legislation in other states.