Good news for those in Alabama looking to get involved in the legal medical cannabis industry as well as those in need of medical cannabis for a variety of reasons. Alabama has finally set and released the fees and timetable for medical cannabis licensing. While watching Alabama wrestle with the idea of actually taking action to reform the legal cannabis market has been like watching a sloth try to get out of quicksand with weighted anklets on (hint: it’s pretty slow going), this is a great indicator that at least some progress is being made.
Medical Cannabis Licensing In Alabama
The application period for a medical marijuana business license in Alabama began on September 1 and will cost potential businesses $2,500. Regulators in Alabama added the application fees are not refundable which could be a sign Alabama wants to make the thought of applying slightly less appealing, but we’re sure it won’t deter those serious about entering the market.
According to the Alabama Medical Cannabis Commission website, prospective business owners can request license applications between September 1 and October 22 and the application deadline is December 30. Applications will be mailed out on October 24.
On June 12, 2023, the recipients of initial licenses will be disclosed following a period for making revisions and a chance for public discussion.
The license payments must be paid by June 26, 2023, and the final permits will be issued on July 10, 2023, to those businesses.
Vertically Integrated Cannabis Business License:
Each licensee may run up to 5 dispensing stations, and there may only be a total of 5 licenses granted. These types of licenses will have an annual license fee of $50 000. An integrated facility license gives permission for everything listed below:
- Cannabis cultivation.
- Processing cannabis to create medical marijuana, as well as the appropriate labeling and packaging of medical marijuana products.
- Selling and administering medicinal marijuana only to certified registered patients or registered caregivers.
- Transporting marijuana for medical purposes between its locations.
- The exchange of medical marijuana to a dispensary or its sale.
Cannabis Cultivation License:
A maximum of 12 licenses with a $40 000 annual cost will be granted. Holders of cultivator licenses are allowed to:
- Cultivate cannabis.
- Sell and/or transfer cannabis to a processor.
- Sell or transfer medical cannabis to a dispensary if the cultivator enters into a contract with a processor to process its cannabis into medical cannabis on the producer’s behalf.
Processor License:
There can be no more than 4 licenses granted at a yearly cost of $40 000. All of the following are permitted for a processor licensee:
- The acquisition of cannabis from a grower or its transfer.
- Processing cannabis to create medical cannabis, which must include legally compliant packaging and labeling of medicinal cannabis products.
- The exchange of medical marijuana to a dispensary or its sale.
Dispensary License
A maximum of four licenses, each costing $40,000 per year, will be granted. Up to 3 dispensing locations may be run by each license holder. All of the following are permitted by a dispensary license:
- The acquisition of medical cannabis from a processor or its transfer.
- The acquisition or transfer of medical cannabis from a producer if the cultivator made a deal with a processor to transform its cannabis into medical cannabis on its behalf.
- The acquisition or transfer of medicinal marijuana from a facility that is integrated.
- The sale and administration of medicinal marijuana only to certified registered patients or registered caregivers.
Alabama will, in theory, have 37 legal dispensaries based on the 4 allocated to each of the three dispensary licensees as well as the 25 allocated to the 5 integrated facility licensees.
The MCC intends to grant licenses for testing laboratories and transporters. The regulator set a $30,000 price but did not specify a limit on the total number of such kinds of permits. Additionally, applicants will only be permitted to apply for one license type.
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