STATE PROGRAMS

Alabama

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Alabama Program Overview

Programs

Medical: Senate Bill 46: Darren Wesley ‘Ato’ Hall Compassion Act (2021)

Geography

Regulatory Agencies

Banking Guidance

  • SB46 requires the Governor to appoint a member that “has experience in agricultural lending or banking” to the Alabama Medical Cannabis Commission.
  • Cason, Mike. “Why Alabama’s medical marijuana industry might be cash-only,” AL.com (August 19, 2022)
    • Mike Hill, superintendent of the Alabama Banking Department, said the agency is receiving many questions from banks.
      Hill said the Banking Department’s message is that medical cannabis is legal in Alabama but that bankers should proceed with caution. He said that means a greater degree of due diligence than banks follow with most categories of prospective customers.
      Hill said no banks have informed the department that they will serve medical marijuana businesses but he expects that some will.
      “We did ask them to call us and talk to us about it before they did it,” Hill said. “We just did that so we could talk to them about the risk. I’m sure their attorneys have already told them. But we just like to put them on notice that we’re not going to write you up as long as you do your due diligence. But there are risks out there that are not inherent to what we do. So, you’ve to make your own decision and it will be your reputational risk.”
      Hill said he has attended seminars held by federal regulatory agencies on the topic. Hill said there is an understanding that banks will not face federal penalties if they follow the necessary precautions to make sure their customers are legitimate. But Hill said without clarity in the law there is risk, partly because the positions of federal agencies can shift with changes in presidential administrations.
      “Congress is the one that has to correct it and we’re working very hard with our national association to get Congress to change that,” Hill said.

Timeline

  • The state estimates that initial licenses will be granted in June 2023

Regulations

License types

  • Integrated Facility ($50,000)
    • 5 licenses, licensees can operate 5 dispensaries each, one per county (subject to change based on population)
    • An integrated facility license allows the licensee to cultivate, process, transport between their own sites, and sell medical cannabis
  • Cultivator ($40,000)
    • 12 licenses
  • Processor ($40,000)
    • 4 licenses
  • Dispensary ($40,000)
    • 4 licenses, licensees can operate 3 dispensaries each, one per county (subject to change based on population)
  • Secure Transporter ($30,000)
    • No limits
  • State Testing Laboratory ($30,000)
    • No limits

Social Equity

  • Per AMCC Proposed Rule 538-X-3, Applications and Licensing Requirements – Generally, “the Commission shall ensure that at least one-fifth of all integrated facility licenses in Alabama, and at least one-fourth of licenses in all other categories, are awarded to business entities at least 51% of which are owned by members of a minority group, or, in the case of corporations, at least 51% of the shares of the corporation are owned by members of a minority group, and are managed and controlled by members of a minority group in its daily operations”

Purchase/Consumption limits

  • Per SB46, “a registered qualified patient or registered caregiver may not purchase more than 60 daily dosages of medical cannabis and may not renew the supply more than 10 days before the 60-day period expires. At no time may a registered qualified patient or registered caregiver possess more than 70 daily dosages of medical cannabis.”
  • “The maximum daily dosage may not exceed 50 mg of delta-9-tetrahydrocannabinol” unless a patient’s physician feels a stronger dosage would be more effective, in which case it can be raised up to 75 mg.
  • If a patient has a terminal illness, a physician may recommend an amount over 75 mg with the caveat that the patient’s driver’s license will be suspended.
  • “A registered certifying physician may not lawfully recommend the use of medical cannabis with a potency greater than three percent tetrahydrocannabinol to any minor for any qualifying medical condition.”
  • Per AMCC Proposed Rule 538-X-2, Regulation of Patients and Caregivers, “determinations as to form and THC content to be recommended shall be exclusively the province of the registered certifying physician, up to the maximum daily dosage allowed by law”

Prohibited Products

  • Raw plant material
  • Any product administered by smoking, combustion, or vaping
  • A food product that has medical cannabis baked, mixed, or otherwise infused into the product, such as cookies or candies

Municipal Restrictions

  • “Any county commission, by resolution, may authorize the operation of dispensing sites in the unincorporated areas of the county, and the governing body of any municipality, by ordinance, may authorize the operation of dispensing sites within the corporate limits of the municipality.” However, that does not “prohibit a municipality from adopting zoning ordinances restricting the operation of dispensing sites within its corporate limits.”

Licensee Restrictions

  • Majority ownership of an MRB must be held by individual(s) that have been residents in the state for at least fifteen consecutive years at the time of application.

Medical Research

  • The Consortium for Medical Cannabis Research will be responsible for the following:
    • Award grants to public or private entities to conduct rigorous research relating to cannabis, the cannabis industry, medical cannabis, and the use of medical cannabis and its impact.
    • Monitor research conducted pursuant to grant awards and require accountability by entities awarded grants.
    • Encourage dialog among interested entities.
    • Effectively disseminate research findings and outcomes.
  • Grants will be funded through the Medical Cannabis Research Fund.

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Meetings and Workshops

Contact Information

Last Updated: November 2023