Securing a Medical Marijuana License in Alabama

In May, 2021, Alabama became the 38^th state to legalize medical marijuana, albeit with one of the more restrictive programs in the country.

The law will allow for the use of marijuana for specific conditions including; Crohn’s disease, depression, epilepsy, HIV/AIDs, panic disorder, Parkinson’s disease, persistent nausea, post-traumatic stress disorder, chronic or intractable pain. Under the new law, common cannabis products like flower, vape products or edibles are banned. Legal delivery methods are restricted to oral tablet, capsule or tincture; gel, oil, cream or other topical preparations; suppository; transdermal patch; nebulizer or liquid oil for administration using an inhaler.

While the law took effect immediately, it’s expected to be at least a year before medical marijuana sales begin. However, for those interested in getting involved on the business side, license applications are expected to begin on Sept. 1, 2021.

A 14-member Alabama Medical Cannabis Commission will oversee licensing and regulation. The Department of Agriculture and Industries will play a significant role in regulating cultivation. The bill envisions the commission employing a director, an assistant director, one or more inspection officers, and other staff. It will retain legal counsel to advise on best practices of other states. The commission will create an electronic registry system and issue ID cards.

The law provides for:

• No more than 12 cultivation licenses
  • License holders are authorized to grow cannabis, and sell and transfer cannabis by secure transport to a processor
• Up to four processing licenses
  • License holders can buy cannabis from a cultivator and process and package the cannabis into legalized products. They are authorized to sell to a dispensary and to transport the product by secure transport.
• Up to four dispensary licenses
  • License holders can buy or transfer medical cannabis from a processor, cultivator or integrated facility. The dispensary can legally sell the product to registered qualified patients.
  • More dispensaries could be approved if patient demand warrants additional locations.
• Up to five vertically integrated licenses
  • License holders can cultivate, process, dispense and transport cannabis between its facilities.

A vertically integrated licensee would be able to operate up to five different dispensaries in different counties and dispensary license holders can have up to three locations.

There will be a $2500 non-refundable application fee and the commission is expected to set license fees between $10,000 and $50,000. All medical marijuana sales will be subject to a 9% gross proceeds tax.

Cannabis Business Advisors is available to consult with any applicant interested in securing one of the new Alabama medical marijuana licenses.

We have successfully secured licenses for clients in over 20 markets across the United States. If you are interested in applying for a dispensary license, contact us by phone at (602)-290-9424‬ or email (info@thecannabisbusinessadvisors.com) for more information.