The legalization of medical marijuana in Arkansas was largely promoted as a way for locals to benefit financially, with the idea that while it helps people, Arkansans should also profit from it. Amendment 98, approved by voters in 2016, mandates that at least 60% of dispensary and cultivator ownership must be held by residents of Arkansas. However, determining who truly owns these businesses has become a complicated issue.
As highlighted by Arkansas Business writers Mark Friedman and Kyle Massey, many management contracts are held by out-of-state entities. This situation complicates transparency regarding the ownership and income control of cannabis companies in the state. As a result, it is challenging to assess how much financial benefit Arkansans are receiving from the medical cannabis industry.
The state has indicated that some clarity on ownership will be provided by May, yet it is likely that the ownership landscape will remain unclear. The expectation is that there will be a stronger focus on transparency, which is crucial for understanding who truly benefits from Arkansas’s medical marijuana market.
