Need assistance getting a cannabis business license? Schedule a Free Consultation
The Alabama Medical Cannabis Commission has been fighting challenges on several fronts, from state courts to the legislature, amid efforts to finally kickstart the state’s medical marijuana licensing process.
As the commission grapples with lawsuits alleging improper conduct and violations of state laws, lawmakers are considering bills that could significantly alter the AMCC’s authority and role in the licensing process.
That bill comes after each attempt by the AMCC to award licenses was voided due to allegations that the process was unfair in one way or another, such as inconsistencies in application scoring and lack of transparency in the process.
A recent court filing by Alabama Always, a plaintiff in one of the lawsuits, calls for the removal of the commission from the licensing process altogether and requests the appointment of a special master to determine which applicants meet statutory requirements.
The filing, first reported by Alabama Political Reporter, alleges numerous instances where the AMCC subverted legal requirements for cannabis companies, leading to a flawed licensing process.
Attorney Will Somerville, who represents the plaintiffs, told the outlet that the AMCC has repeatedly violated open meeting and administrative procedures laws and should be completely removed from the licensing process to ensure transparency and prevent future misconduct.
At the same time, an Alabama Senate committee last week approved a pair of bills from Republican state Sen. Tim Melson that would restart the licensing efforts and strip some powers from the AMCC.
Under SB 306, the Alabama Securities Commission would be responsible for verifying and evaluating applications before sending them to the AMCC for final selection. All of the state’s issued vertically integrated medical marijuana licenses would also be revoked, and businesses would be required to reapply for the fourth time.
“The commission had one mission, and they have not executed it,” Melson said, according to local newspaper the Alabama Daily News. “I think in the best interest of this program, we need to start from scratch, we need to throw (out) every license applicant that received (a license). This bill just wipes the slate clean.”
In addition to the five integrated facility permits, Alabama would license no more than 12 cultivators, four processors, and four dispensaries. Dispensary licensees will be allowed to operate up to three locations.
A second bill, SB 276, would require the AMCC to issue 10 licenses for integrated facilities, which can grow, process, and distribute medical cannabis. The bill would also increase the maximum number of dispensary licenses from four to seven and processor licenses from four to six. Additionally, it would prohibit the transfer of licenses and void licenses if a company is found to be no longer eligible.
Meanwhile, the Alabama House on Monday passed HB390, which gives the AMCC the primary responsibility for regulating and licensing medical marijuana while collaborating with the Department of Agriculture and Industries on distribution licenses. The measure aims to address confusion surrounding the specific duties of the commission and the department, with ADAI Commissioner Rick Pate reportedly requesting to be “taken out of the picture.”
Judge James Anderson, who is presiding over the lawsuits, also has expressed frustration with the AMCC and allowed plaintiffs to depose commissioners and staff. The legislature, which has spent three years and $12 million in taxpayer funds without any prescriptions being filled, is also grappling with the program’s shortcomings.
