In June, a number of businessmen and women were awarded a limited number of medical marijuana licenses by the Alabama Medical Cannabis Commission (AMCC). If things had gone according to plan, in July, those men and women would have gotten their licenses formally issued, construction on new marijuana farms, factories, and dispensaries would be underway, and Alabama’s first legal marijuana crop would be growing in an Alabama greenhouse right now.
Nothing went according to plan. Business entities not awarded a license by the AMCC began filing lawsuits within days of the awards being issued. The AMCC staff discovered errors in tabulating the scores, and the commission itself held an emergency meeting to stay issuing their licenses. Days after, Montgomery Judge James Anderson issued a temporary restraining order barring the AMCC from issuing the licenses. Rather than pressing ahead and finding a way to issue those licenses, the AMCC nullified its previous awards and held a new round of awards. Most of the business entities that received awards in June also received awards in August, but not all.
Verona was one of five business entities awarded an integrated facility license by the AMCC in June. In August, they did not get the award. They are now suing on the grounds that the AMCC violated the Alabama Open Meetings Law.
Verona is represented by lobbyist Curt Lee.
“Verona had the highest scores both times,” Lee told the Mid-Alabama Republican Club on Saturday. “Obviously, we have some concerns about why, if you had the highest score, Verona didn’t get a license.”
Some of the parties who were denied applications in both June and August are also suing, alleging that they were treated unfairly. Redbud – who couldn’t figure out how to upload their application, is also bringing litigation to be considered for a license.
Judge Anderson has extended his temporary restraining order twice in past weeks. Over a dozen plaintiffs’ attorneys are in court-ordered negotiations with the AMCC.
Those applicants who were awarded licenses are reportedly getting nervous as it increasingly appears as if the AMCC will vacate those license awards and instead award licenses for a third time.
Sources report that some of those entities have engaged with an attorney on their own possible litigation to ask Judge Anderson to lift the temporary restraining order and urge the AMCC to issue the licenses.
Chey Garrigan is the founder and executive director of the Alabama Cannabis Industry Association (ACIA).
Alabama Today asked Garrigan about reports that the license awards winners have engaged with an attorney.
Garrigan would not divulge any details of what was discussed but did acknowledge that there have been “discussions” in recent days.
Some of the awardees and applicants have reportedly been in negotiations with Tru-Leaf – a marijuana company that is active in Florida and other states, but in recent weeks, Tru-Leaf has pulled out of the state due to the uncertainty. Licensees and applicants whose secret plan was to sell out to Tru-Leaf may have been left without a business plan if those reports are true.
“I have heard that as well,” Garrigan acknowledged. “I can’t say with any certainty what Tru-Leaf is going to do.”
The next regularly scheduled AMCC meeting is scheduled for September 19.
The legislation creating the AMCC and making them the regulators of marijuana in Alabama is considered the most restrictive medical marijuana law in the country.
“They talked with legislators in other states that opened it up too wide and regretted it,” Lee said of the Legislature’s thinking behind the bill.
Lee was asked if the Legislature would intervene and just overturn the marijuana law, ending this experiment in medical marijuana in Alabama.
“I don’t see it going away and being reversed,” Lee said.
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