On Monday, the Alabama Medical Cannabis Commission (AMCC) met and voted to award the state of Alabama’s first-ever medical cannabis business licenses. Of the 90 applications accepted by the Commission at their meeting on April 13, just 21 were awarded licenses by the AMCC.
The 2021 legislation legalizing medical cannabis in Alabama created the AMCC. It tasked the Commission with regulating the industry and awarding the permits to the integrated facilities, cultivators, secure transporters, processors, and diagnostic labs that the state will allow to participate in this industry.
The medical cannabis business licenses were awarded to the following applicants.
There were five integrated facility licenses awarded. These went to Flowerwood Medical Cannabis, LLC; Southeast Cannabis Company, LLC; Sustainable Alabama, LLC; TheraTrue Alabama, LLC; and Verano Alabama, LLC.
Only four cultivator licenses were awarded. These went to Blackberry Farms, LLC.; Gulf Shore Remedies, LLC; Pure by Sirmon Farms, LLC; and Twisted Herb Cultivation, LLC.
Four processor licenses were awarded. These went to 1819 Labs, LLC; Enchanted Green, LLC; Jasper Development Group Inc.; and Organic Harvest Lab, LLC.
Four dispensary licenses were awarded. These went to CCS of Alabama, LLC; RJK Holdings AL, LLC; Statewide Property Holdings AL, LLC; and Yellowhammer Medical Dispensaries, LLC.
Three secure transport licenses were awarded. These went to Alabama Secure Transport, LLC; International Communication, LLC; and Tyler Van Lines, LLC.
Certus Laboratories was awarded the license to be the state’s only licensed state testing laboratory.
The Legislature authorized the Commission to award up to twelve cultivator licenses, four processor licenses, four dispensary licenses, five integrated facility licenses, and an unspecified number of secure transport and state testing laboratory licenses. The Commission elected to award fewer licenses, particularly the cultivator licenses than they were allowed to by the legislation.
“There was no shortage of qualified individuals and entities who provided applications for us to consider,” explained Commission Chairman Dr. Steven Stokes. “Based on the evaluators’ assessments and the Commission’s considerations, we believe that we have selected an outstanding slate of inaugural licensees to represent Alabama’s new medical cannabis industry.”
At first glance, it seems like four licensed processors depending on supply from just four licensed cultivators might be problematic for processors concerned about supply.
Vice Chairman Rex Vaughn, however, announced at the meeting that the Commission intends to open a second offering of licenses for cultivators, secure transporters, and state testing laboratories.
“The Commission looks forward to affording more opportunities for individuals to participate in the industry,” explained Vice Chairman Vaughn. “These businesses will not only serve the patients of Alabama but provide business and job opportunities for local communities.”
The University of South Alabama (USA) was engaged by AMCC to coordinate the application review process and recruit evaluators to assess the scored exhibit items for all 90 applicants. USA utilized 66 evaluators with experience relevant to the application content to review one of eight scoring categories: (1) Financial Ability; (2) Business/Management Approach; (3) Operations Plans & Procedures; (4) Facility Suitability & Infrastructure; (5) Security Plan; (6) Personnel; (7) Quality Control & Testing; or (8) Marketing & Advertising. Each scored exhibit was independently reviewed by two evaluators to assess the applicant’s solvency, stability, suitability, capability, projected efficiency, and experience, both in relation to any baseline set by the Commission, as well as in comparison with other applicants.
“The Commission has worked diligently since the passage of the Darren Wesley “Ato” Hall Act to develop regulations and policies to facilitate an effective and safe medical cannabis industry,” explained Commission Director John McMillan. “We are excited to begin working with those applicants who were awarded licenses to meet the needs of so many Alabamians who are living with debilitating conditions that can benefit from medical cannabis.”
The applicants awarded a license now have 14 days to pay the AMCC the appropriate license fee to the Commission. At its meeting on July 10, 2023, the Commission is scheduled to formally issue the licenses in each license category.
There remains a possibility that those final license awards could be further delayed if one or more of the 69 applicants the AMCC rejected appeal the decision to the courts. Litigation, in theory, could delay this process for weeks or even months.
In order for a doctor to be qualified to make a medical cannabis recommendation, they must become certified. Under the rules promulgated by the Alabama Board of Medical Examiners, physicians may begin the certification process to recommend medical cannabis after the business licenses have been issued.
In order for a patient to be able to purchase Alabama medical cannabis products, they must have at least one of the qualifying conditions and then receive a recommendation for medical cannabis from a certified physician.
Medical cannabis products that may be recommended to patients include tablets, capsules, tinctures, gelatinous cubes, gels, oils or creams for topical use, suppositories, transdermal patches, nebulizers, or liquids or oils for use in an inhaler. Raw plant materials and any smokable or vaped products will not be allowed and will remain illegal to possess, even for those with an Alabama Medical Cannabis card.
People with a legitimate medical need for cannabis should be able to purchase products in Alabama by the end of this year.
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