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The Alabama Medical Cannabis Commission recently granted cultivation licenses to two more firms, Pure by Sirmon Farms LLC and Blackberry Farms LLC, after an administrative law judge recommended reversing earlier application denials. The move marks the start of a new chapter in the state’s complex and often contentious licensing process.
Green Market Report caught up with Paula Savchenko, an attorney and consultant with and 85% success rate in applying for cannabis licenses across 15 states, to talk about the program’s status and outlook. In Alabama, she’s been working with Pure by Sirmon Farms, to navigate a market that she says is starting to look like Florida’s early days.
This interview has been edited for length and clarity.
What’s the status of Alabama’s medical cannabis program?
Paula Savchenko: Right now, some licenses have been issued, and some licenses are still in litigation. But those that have been issued, they now have to meet timeline requirements, pay licensure fees and get the inspection approval from agency.
I think that within the next six months, we’ll see the rest of the licenses issued either through settlement or litigation. I don’t think anybody’s actually gone through a crop cycle yet, because it takes about four months to do that once you have plants in the ground. It’s a little bit shorter from seeds, but I don’t think anybody’s actually gone through that process yet.
What are the odds of a settlement to end recent lawsuits for the vertical licenses?
Savchenko: It’s really hard to say what’s going to happen, but I will say that in the majority of states, the licenses are typically issued through a settlement and there typically are additional licenses issued more than what was originally allocated for.
Now, is that going to come through the settlement or is that going come through a legislative fix? I think that would be both, because a judge really doesn’t have the authority to issue more than the five vertical licenses. So I think you’re going to see a two-fold process where the agency and/or judge will issue a ruling determining that five license holders should get the licenses.
From there you’ll probably see some type of legislative fix next year where there will be additional licenses granted. Or you’ll see another application process next couple years as well.
How many cultivation licenses have been issued so far?
Savchenko: Twelve cultivation licenses (were) available, and I believe that they’ve only granted nine.
When could Alabama residents be able to purchase medical cannabis?
Savchenko: I think that within the next six months, we’ll see the rest of the licenses issued either through settlement or litigation … (And then) another six months from there (for retail); three months minimum.
So, I would say that we’re still about nine months out from a more mature market.
How does Alabama’s market potential compare to other states?
Savchenko: I think Alabama has been really underrated as a market, and I’m not really sure why. I think the main reason is just because it is a pretty religious and conservative state and therefore a lot of the conversation has been that, “Oh, this isn’t going to be a good market because there won’t be a lot of users or patients because people are religious and against cannabis.”
That’s really not the case, as far as we found. In addition, the population of Alabama is actually the same or very close to that of Colorado. And as you know, Colorado is one of the best markets in the country.
Are there any limitations in the current program?
Savchenko: Currently, smokable flower is not permitted. Smokable products are not permitted. That’s driven people away from this market as well.
If you look at how other states got started … for example, Florida got started with smokable also not being permitted. And one year after we had a program, smokable was permitted. So, that’s probably what we’re going to see here as well.
