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The state senator who sponsored the bill that passed three years ago authorizing medical marijuana in Alabama is trying to help fix the disputes over business licenses that have delayed the industry’s start.
Sen. Tim Melson, R-Florence, introduced a bill to create a new process for the Alabama Medical Cannabis Commission to issue licenses to integrated companies, which would be able to cultivate, process, transport, and dispense medical cannabis.
Integrated licenses have been the most disputed category of licenses that the AMCC will issue. More than 30 companies applied for licenses, but the AMCC can award no more than five.
The AMCC has awarded integrated licenses three times in the last 10 months, but problems with the procedures and lawsuits have prevented the licenses from being issued. Many of the companies that applied are parties in a lawsuit pending in Montgomery County Circuit Court.
It took Melson and other supporters of medical marijuana several years to get the legislation passed. Gov. Kay Ivey signed it into law in May 2021. The law is intended to make medical cannabis products available to patients with a wide range of conditions who receive a recommendation from a doctor. But almost three years later, it is unclear when products will be ready because of the licensing delays.
“We got this (the legislation) done in three years,” Melson said. “It’s taken this long to get this to the patients who are out there that need it. And it’s just time to correct this course and get them something to help them in their illness.
Melson’s bill, SB306, would set up a new process for issuing integrated licenses and would involve another state agency besides the AMCC.
Only companies that applied for integrated licenses before the initial deadline in December 2022 would be eligible. They would be allowed to update their applications.
The Alabama Securities Commission would set up a five-member review panel to determine if license applicants meet basic eligibility criteria, such as residency requirements, agricultural experience, criminal background checks, detailed business plans, proof of sufficient capital, and others.
Applicants who meet the basic criteria would be judged on whether they have facilities to begin cultivation within 60 days of receiving a license. They also must have five dispensing sites that would be ready to operate within six months of getting a license.
After the Alabama Securities Commission review panel determined eligibility, the AMCC would score the eligible applicants on other criteria, including certain financial requirements. The five highest scoring applicants would receive integrated licenses.
Ray French, an owner and CEO of Specialty Medical Products, based in Baldwin County, said Melson’s bill would be a setback. Specialty Medical Products was awarded an integrated license in December after being passed over during the first two rounds of awards in June and August. All three rounds were put on hold, so no integrated companies have received licenses.
French said the AMCC got it right in December, when it awarded licenses after public presentations from the applicants and after discarding scores by third-party evaluators used during the first two rounds.
“Once the commission took the time to get to know the candidates and actually vet them, see them and understand who they are, they made a decision based on all of the information given to them and picked who they thought were the best candidates to move this needle forward,” French said.
“They picked what they felt like were the most qualified candidates,” French said. “And to start over to favor other candidates for whatever reasons and to take away all the control from the commission members themselves is only a setback. It is an unnecessary do-over and a setback and is going to delay the program to the point where it may never take off.”
Will Somerville, an attorney for Alabama Always, an applicant for an integrated license that has not been awarded one so far, issued a statement supporting Melson’s bill.
“Senator Melson did a remarkable job in 2021 helping Alabamians get access to cannabis for their medical needs,” Somerville said. “The Cannabis Commission has had three years to get this program going and it’s still dead in the water. The Commission did not follow the law and the Courts halted the process. Senator Melson has stepped up again this Session with a Bill that will break the logjam and get this medicine to folks that need it. Everyone looks forward to working with Sen. Melson and other Legislators to get this program up and running.”
The Senate Agriculture, Conservation, and Forestry Committee approved Melson’s bill Wednesday. The committee approved another bill intended to fix the AMCC licensing problems, SB276 by Sen. David Sessions, a Republican and farmer from Mobile County who is chairman of the committee.
Sessions’ bill was discussed during a public hearing last week. Most of those who spoke at the hearing opposed it.
On Wednesday, the committee approved amendments changing Sessions’ bill from what was discussed last week.
Sessions’ bill, among other changes, would increase the number of integrated licenses issued by the AMCC to as many as 10.
Both Melson’s and Sessions’ bills include a new section prohibiting a company with an integrated license from transferring that license to another company. The law currently would allow license transfers with the approval of the AMCC.
Both Melson’s and Sessions’ bills would shift the responsibility for regulating medical cannabis cultivators from the Department of Agriculture and Industries to the AMCC, which would receive assistance from Agriculture and Industries.
Sessions praised Melson’s bill and said they share the same goal.
“I know where your heart is and I think we’re aligned,” Sessions said. “Our main goal is to try and get this out of court and get it up and running.”
Committee approval puts the two bills in position for consideration by the full Senate, which could happen as soon as next week.
