(a)

1. (1) In addition to documentation establishing minimum qualifications, the applicant shall submit responses to the Medical Marijuana Commission’s merit criteria in a form and manner prescribed by the Medical Marijuana Commission.
2. (2) Criterion shall be published with the initial notice of open application.

(b) The Medical Marijuana Commission shall consider the following criteria based on merit to evaluate applications verified pursuant to 20 CAR § 800-208:

1. (1) Ability to operate a business, including but not limited to education, knowledge, and experience with:

   1. (A) Regulated industries;
   2. (B) Agriculture or horticulture;
   3. (C) Commercial manufacturing;
   4. (D) Creating and implementing a business plan, including a timeline for opening a business;
   5. (E) Creating and implementing a financial plan;
   6. (F) Secure inventory tracking and control;
   7. (G) The cultivation and production of marijuana;
   8. (H) Owning or managing a business that required twenty-four-hour security monitoring;
   9. (I) Owning and managing a business that has not had its business license revoked; and
   10. (J) Any other experience the applicant considers relevant;

2. (2) Plan for operating a medical marijuana cultivation facility in compliance with applicable laws and rules and demonstrating planning sufficient to prove the applicant’s ability to:

   1. (A) Manufacture approved medical marijuana products, each:

(i) With a consistent cannabinoid profile; and

1. (ii) Able to pass the required quality control testing as further described in the rules of the Department of Health;

   1. (B) Produce sufficient quantities of approved medical marijuana products as necessary to meet the needs of individuals with qualifying medical conditions;
   2. (C) Comply with the security requirements as described in the rules of the Alcoholic Beverage Control Division;
   3. (D) Comply with rules of the Department of Health and the division regarding the inventory and tracking of marijuana products;
   4. (E) Comply with the recordkeeping requirements of the department and the division;
   5. (F) Maintain effective control against diversion of marijuana and marijuana products;
   6. (G) Comply with requirements for signage, packaging, labeling, and chain of custody of products;
   7. (H) Comply with requirements for the transportation and marketing of products; and
   8. (I) Comply with all other laws regarding the operation of a medical marijuana cultivation facility;

2. (3) Proof that the applicant is ready, willing, and able to properly carry out the activities of a medical marijuana cultivation facility, including a:

   1. (A) Plan for operating a medical marijuana cultivation facility; and
   2. (B) Timeline for opening the cultivation facility and beginning production; and

3. (4) Proof of financial stability and access to financial resources, including but not limited to:

   1. (A) Legal sources of finances immediately available to begin operating a cultivation facility;
   2. (B) Possession of, or the right to use, sufficient real property and equipment to properly carry on the activity described in the operating plan;
   3. (C) A summary of financial statements in businesses previously or currently owned or operated by the applicant;
   4. (D) A financial plan for operating a medical marijuana cultivation facility in Arkansas;
   5. (E) Good credit history; and

   6. (F) No history of bankruptcy filings by the applicant or entities owned or operated by the applicant for eight (8) years prior to the date of application.

      1. (c) The Medical Marijuana Commission may consider the following criteria based on merit to evaluate applications verified pursuant to 20 CAR § 800-208:

4. (1) Affiliation with a:

   1. (A) Medical doctor;
   2. (B) Doctor of osteopathy; or
   3. (C) Doctor of pharmacy; and

5. (2)

   1. (A) Proof, if any, that the applicant’s proposed cultivation facility will positively impact the economy and diversity of the area in which the facility is to be located.

   2. (B)

      1. (i) Economic impact shall be assessed using the Arkansas Economic Development Commission’s tier-ranking of counties based on the following factors:

(b) (b) Population growth;

1. (c) (c) Per capita personal income; and

   1. (d) (d) Unemployment rate.

      1. (ii) Consideration shall be given based on the Arkansas Economic Development Commission’s tier-ranking of the county of the proposed cultivation facility as it exists on the date of the application.

   2. (C) Factors that may be considered in determining an applicant’s impact on the diversity of the area include, but are not limited to, ownership by:

      1. (i) Minority groups;
      2. (ii) Veterans; and
      3. (iii) Women; and

2. (3)

   1. (A) Proof, if any, that the applicant’s proposed cultivation facility will provide a benefit to the community in which the facility is to be located.

   2. (B) Factors that may be considered include, but are not limited to:

      1. (i) Any proposed:

(b) (b) Compassionate care plan to be implemented by the cultivation facility; and

1. (c) (c) Plan for research, education, and promotion of patient and public safety to be implemented by the cultivation facility; and

   1. (ii) Local ownership percentage, meaning the percentage of ownership held by Arkansas residents.

      1. (d)
2. (1) Each merit criterion will be worth a number of points announced by the Medical Marijuana Commission in the notice of open application period.
3. (2) A review panel comprised of members of the Medical Marijuana Commission shall evaluate the applications and award points for each merit criterion.
4. (3) The points shall be totaled for each application and the applications ranked from the highest total score to the lowest total score.
5. (4) The Medical Marijuana Commission shall notify in writing each of the applicants of their respective score and their respective ranking among all applicants.

(e)

1. (1) The highest ranking applicants, equal to the amount of available licenses, shall have the first opportunity to submit the required license fee and post the performance bond required under this part for the available licenses.
2. (2) If any applicant fails to pay the fee and post the bond within the required period of time, then their application shall be denied for the appropriate reason under 20 CAR § 800-212.
3. (3) The Medical Marijuana Commission shall then inform the next highest scoring applicant, and they shall have the opportunity to submit the required license fee and post the performance bond required under this part for the available license.

(f)

1. (1) The Medical Marijuana Commission shall hold unselected applications in reserve to offer a license to the next highest scoring applicant if the highest scoring applicant fails to pay the licensing fee and post the performance bond in accordance with 20 CAR § 800-210.

2. (2)

   1. (A) When all available licenses within each application period have been issued, the Medical Marijuana Commission shall remove all unselected applications from its list of reserved applications and notify all applicants.
   2. (B) However, the Medical Marijuana Commission shall have the option to maintain the list of reserved applications for twenty-four (24) months from the issuance date of the initial licenses in any application period.

(g)

1. (1) The Medical Marijuana Commission may initiate the selection process for cultivation facilities upon:

   1. (A) Determining that there are not enough cultivation facilities to supply the dispensaries within the state; or
   2. (B) Revocation of any existing license by the division.
2. (2) If the Medical Marijuana Commission determines that more licenses should be issued within twenty-four (24) months following the issuance of licenses in the most recent application period, and it has exercised its option to maintain the reserve list from the last application period, the Medical Marijuana Commission shall offer the next highest scoring applicant from the applications held in reserve the opportunity to pay the licensing fee and post the performance bond in accordance with 20 CAR § 800-210.
3. (3) If the Medical Marijuana Commission determines more licenses should be issued, and the Medical Marijuana Commission did not exercise the option to maintain a reserve list or the decision is made after the twenty-four (24) months following the issuance of licenses in the most recent application period, the Medical Marijuana Commission shall solicit new applications in accordance with this part.

4. (4) If the Medical Marijuana Commission must break a tie in scoring among applicants, the following procedure shall be followed:

   1. (A) Applicants with identical scores shall draw a number between one (1) and a number equal to the number of applicants with the identical score;
   2. (B) Applicants will then repeat the drawing of numbers in the order determined by the first drawing;
   3. (C) The tied applicants will be ranked according to the number pulled from the second drawing; and
   4. (D) The applicant who draws the number one (1) will have the highest rank among the tied applicants.