Alabama Upcoming Medical Marijuana Licensing Opportunities

The Alabama Medical Cannabis Commission attempted to revise current legislation in hopes of having medical marijuana products available for sale in the state by the end of 2022. As of now, the application process for licenses will open on Sept. 1, 2022. Unless the Sept. 1st application date is changed for cultivators, products will not be available until 2023, since three months is the minimum time required to grow marijuana plants in greenhouses. 

Under the Alabama program,  products can be in the form of tablets, capsules, tinctures, or gel cubes for oral use. Other approved products include gels, oils or creams for topical use, suppositories, transdermal patches, nebulizers, or liquids or oils for use in an inhaler. As of now, flower or raw plant material that could be smoked or vaped, or used in food products is not permitted. 

Alabama Medical Marijuana Program Overview
In May 2021, Alabama became the 37th state to legalize medical marijuana. The legislation included the creation of the Alabama Medical Cannabis Commission which will oversee licensing and regulation and is made up of 14 members. These commission seats were appointed by Gov. Kay Ivey, Lt. Gov. Will Ainsworth, House Speaker Mac McCutcheon, Senate President Pro Tem Greg Reed and others. Those who were not eligible to serve on the commission included, public officials, candidates for public office, public employees, lobbyists, and those with financial interest in companies that are part of the medical marijuana industry.

Available Licenses
The Alabama Medical Cannabis Commission will oversee the licensing of the processors, testing labs, secure transporters, and dispensaries. The Alabama Department of Agriculture and Industries will license and regulate cultivators.

Alabama’s medical marijuana law provides for the following licenses:

• 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.
      

Application Timeline
While the law took effect in May,  marijuana sales are unlikely to begin before 2023 unless the application dates change. 

There will be a $2,500 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. 

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

Click here to explore the current and pending cannabis programs throughout the United States.