One Step Forward, Two Steps Back: Cannabis Licensing Procedures In Alabama Under Scrutiny

Alabama's cannabis regulator has indefinitely suspended all licensing for cultivators, dispensaries and related businesses involved in the state's fledgling medical marijuana program.

The move came on the heels of an emergency meeting held by the Alabama Medical Cannabis Commission (AMCC) on Friday, reported the Alabama Reflector. Last week, the commission awarded the first 21 licenses for medical cannabis production, testing, transportation and distribution under the 2021 legalization law.

Of more than 90 operators that applied for licenses, the AMCC has given the green light to five to run integrated facilities that allow legal cultivation, processing and distribution, with each facility operating five dispensaries. The regulator also awarded four licenses for each cultivation, processing and sale of medical marijuana (MMJ), three transport and one testing license.

Now, AMCC members are seeking an independent review of all scoring data following suspicions of possible irregularities in assessing applicants. The regulatory body did not confirm whether it had any evidence suggesting that any malpractice had occurred in the process.

"I know we're all concerned about it, but it would have been just a catastrophe if the applicants went through their numbers and found an error," said John McMillan, director of the commission.

Urologist Dr. Brian Stone, one of the businesses not granted a license, spoke out against the licensing process, reported WSFA.

"At this point, our concern, because a lot of us are connected, and we know, individuals related to the process and around the process, is that the process was not done fairly," he said.

The commission was expected to satisfy the minority criteria set by the state statute, awarding roughly a quarter of the licenses to businesses at least 51% owned by individuals of African American, Native American, Hispanic or Asian descent.

However, as of the total number of those applying for the license, only one was given to such a business with 51% minority ownership. As an African American urologist and a native of Alabama, Stone said that "everybody benefits" if there is "equity in the process."

He also raised concerns about who supervised the scoring process. According to an earlier update, that should have been the University of South Alabama, which sought "professionals to review, evaluate and score" license applications in December.

"Who did they hire instead? Did they have connections with any of the other applicants? You know, are there conflicts of interest? There's a lot of things we don't know," Stone said.

What's Next

In a news release Friday, McMillan said, "The commission will work expeditiously to investigate and identify inconsistencies in the score data. Out of an abundance of caution, we are suspending all current procedural timelines until those matters are resolved."

The commission's upcoming meeting is set for June 29.

Legal Hurdle Around Cannabis Licensing Process

Meanwhile, Alabama Daily News reported that a possible applicant has sought an injunction from two courts to delay last week's announcement.

Redbud Remedies was among three organizations to bring a lawsuit against the commission this year, claiming that file-size restrictions on the agency's online application portal caused their documents to be discarded. The other two applicants, Med Shop Dispensary and Thera True Alabama had their applications considered by the commission following Montgomery Circuit Judge James Anderson ruling in April. Redbud Remedies didn't.

In May, the company appealed to the Alabama Court of Civil Appeals. Last week it requested the court for an emergency stay in the selection of dispensary licenses. Redbud Remedies also filed a motion for injunction pending an appeal filed in Montgomery County Circuit Court.

Photo: Beniznga edit of photo by Shutterstock