The Arkansas Medical Marijuana Commission has set the annual fee to operate a medical cannabis 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.
The commission also said the five grows won’t have to be spread out among the state’s five health regions, as regulators previously discussed.