Alabama Becomes 36th State to Legalize Medical Cannabis After Governor Ivey Signs Off On Bill

On Monday, Alabama Governor Kay Ivey signed off on the state's medical cannabis bill, SB 46, making Alabama the 36th state to legalize medical cannabis.

Gov. Ivey thanked Sen. Tim Melson and Rep. Mike Ball for leading efforts on legalization over the years.

In a press release, the Governor stated, "As research evolves, Sen. Melson and I discussed how critical it is to continue finding ways to work on this to ensure we have a productive, safe and responsible operation in Alabama."

Patient Highlights

Patients can qualify through several approved conditions, including but not limited to Tourette's syndrome, Parkinson's disease, cancer, Crohn's disease, HIV/AIDS, autism and epilepsy.

"This is certainly a sensitive and emotional issue and something that is continually being studied. On the state level, we have had a study group that has looked closely at this issue, and I am interested in the potential good medical cannabis can have for those with chronic illnesses or what it can do to improve the quality of life of those in their final days," Gov. Ivey said.

The state passed various protections for patients and operators, shielding both from criminal and civil penalties.

Patients will generally not be denied organ transplants or other care due to their cannabis use. However, employers can prohibit consumption and continue drug testing.

Minors under the age of 19 must have a caregiver and cannot be recommended or use cannabis medication above 3% THC.

Business Highlights

Operators have various opportunities to obtain licensing under the current rules. Alabama's Medical Cannabis Commission plans to issue licenses for:

• Up to 12 cultivation licenses
• Up to four processors
• Up to four dispensaries

Each dispensary license holder is permitted to open up to three locations in different counties. In time, the state may issue additional licenses depending on patient demand.

Lawmakers also approved licenses for up to five integrated facilities, allowing for vertical integration. License holders can have up to five sites in different counties, with additional permits issued if market demands necessitate.

The state also passed several clauses pertaining to residency and operations.

Social equity is included in the bill. Depending on the license type, the state mandates that either one-fourth or one-fifth of permits go to organizations made up of at least 51% African American, Native American, Asian, or Hispanic ownership.

Next Steps for Alabama

Marketplace rules must be adopted by September 2022 to begin the application process for businesses and patients alike.