Alabama Medical Marijuana Overview

Medical Marijuana Program Overview

The Alabama Senate approved SB 46, the Alabama Compassionate Act, in a 20-10 vote on February 24, 2021. The House of Representatives approved a modified version of the bill in a 68-34 vote on May 6, 2021. On May 17, the Senate concurred with the Houses’ changes to the details, and Gov. Kay Ivey signed the bill into law. Access to medical cannabis is through state licensed businesses that are allowed to grow, manufacture and sell medical cannabis. The Alabama Compassionate Act would restrict the number of licenses and patient qualifying conditions. It also would ban smokable flower, vaping products, candies and baked goods. This would allow marijuana in pill form, oils, and topical products.

Qualifying Medical Conditions

• Autism Sprectrum Disorder (ASD)
• Cancer-related cachexia, nausea or vomiting, weight loss, or chronic pain
• Crohn’s Disease
• Depression
• Epilepsy or a condition causing seizures
• HIV/AIDS-related nausea or weight loss
• Panic disorder
• Parkinson’s disease
• Persistent nausea that is not significantly responsive to traditional treatment, except for nausea related to pregnancy, cannabis-induced cyclical vomiting syndrome, or cannabinoid hyperemesis syndrome
• Post-Traumatic Stress Disorder (PTSD)
• Sickle Cell Anemia
• Spasticity associated with a motor neuron disease, including Amyotrophic Lateral Sclerosis or a spinal cord injury
• A terminal illness
• Tourette’s Syndrome
• A condition causing chronic or intractable pain in which conventional; therapeutic intervention and opiate therapy is contraindicated or has proved ineffective

Regulating Department

Under Senate Bill 46, an appointed 14-member Alabama Medical Cannabis Commission is charged with implementation of most of the 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 commission will charge non-refundable application fees of $2,500. The commission will set licensing fees between $10,000 and $50,000. A 9% gross proceeds tax will be levied on medical cannabis retail sales.

Marijuana Business Overview

Types of Marijuana Businesses:

Alabama Medical Cannabis Cultivator:

• Authorized to grow cannabis.
• Authorized to sale or transfer cannabis to a processor.
• Authorized to transfer cannabis only by means of a secure transporter.
• The commission shall issue no more than 12 cultivator licenses.

Alabama Medical Cannabis Processor:

• Authorized to purchase cannabis from a cultivator
• Authorized to process cannabis into medical cannabis which shall include properly packaging and labeling medical cannabis products
• Authorized to sale or transfer medical cannabis to a dispensary.
• Authorized to transfer cannabis only by means of a secure transporter.
• The commission shall issue no more than 4 processor licenses.

Alabama Medical Cannabis Dispensary:

• Authorized to dispense and sale medical cannabis to a registered qualified patient or registered caregiver.
• Authorized to purchase or transfer medical cannabis from a processor.
• Authorized to purchase or transfer medical cannabis from a cultivator.
• Authorized to purchase or transfer medical cannabis from an integrated facility.
• Authorized to transfer cannabis only by means of a secure transporter.
• The commission shall issue no more than 4 dispensary licenses, each of which could have up to three locations in different counties.
• More dispensaries could be approved if patient demand warrants it.

Alabama Secure Transporters:

• Authorized to store and transport cannabis and medical cannabis for a fee upon request of a licensee.
• A license does not authorize transport to a registered qualified patient or registered caregiver.

Alabama Testing Laboratories:

• Authorized to test cannabis and medical cannabis to ensure the product meets safety qualifications
• Authorized to take cannabis or medical cannabis from, test cannabis or medical cannabis for, and return cannabis or medical cannabis to only a respective licensed facility.
• Authorized to collect a random sample of cannabis or medical cannabis at the premises of a cultivator, processor, or dispensary for testing.

Alabama Integrated facility licenses:

• Authorized to cultivate cannabis.
• Authorized to process cannabis into medical cannabis, including proper packaging and labeling of medical cannabis products.
• Authorized to dispense and sale medical cannabis only to a registered qualified patient or registered caregiver.
• Authorized to transport cannabis or medical cannabis between its facilities.
• Authorized to sale or transfer medical cannabis to a dispensary.
• The commission shall issue no more than 5 integrated facility licenses 

SB 46: https://legiscan.com/AL/text/SB46/2021

Program Timeline

• February 24 – The Alabama Senate approved the bill in a 20-10 vote.
• May 6 – The House of Representatives approved a modified version of the bill in a 68-34 vote.
• May 17 – Senate concurred with the Houses’ changes to the details. Gov. Kay Ivey signed the bill into law
• September 2022 – Rules must be adopted in time to allow applications to start being filed by September 1, 2022.

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