Alabama Resets Medical Cannabis Licensing: New Hope For Applicants

Zinger Key Points
  • The decision to nullify previous scores reopens competition for all 90 cannabis business applicants in Alabama.
  • New direct presentation approach by applicants sets a fresh, more transparent course for Alabama's cannabis licensing.
  • Ongoing litigation and criticism drive AMCC's pivotal shift, potentially shaping Alabama's medical cannabis industry's future.

In a decisive move, the Alabama Medical Cannabis Commission (AMCC) has nullified controversial scores from third-party evaluators previously used to rank business license applicants. This action, voted on Monday, effectively resets the process of awarding business licenses in the emerging medical cannabis sector.

New Beginning For Applicants Amid Criticism Of Scoring System

The decision comes after the AMCC reached an agreement in mediation with attorneys representing companies that had sued over the scoring system and other licensing issues, reported AL.com. This scoring system, developed by graders from the University of South Alabama, has been a major point of contention, contributing to the delay in the industry’s startup since June.

Critics of the scoring system argued it overlooked crucial factors for license qualification, including the ability to commence cultivation within 60 days of receiving a license. With this resolution, presented by attorney Mark Wilkerson, all 90 business applicants, covering various categories like cultivation, processing and dispensing are back in contention.

New Process And Timeline

The AMCC has established a new set of rules and a timeline, initiated in October. This includes a novel approach where applicants can present directly to the commission, a process that begins this week. The commission aims to award licenses by December, followed by a due diligence period, with the industry expected to be operational next year.

Litigation And Future Prospects

This decision to discard the previous scores is pivotal, given the AMCC’s initial reliance on them for awarding licenses earlier this year. The change is a response to ongoing litigation and identified errors in the prior rounds of license awards. The current legal situation involves over 25 companies in a consolidated lawsuit against the AMCC, with the case still active in Montgomery County Circuit Court.

Regulatory Framework

The AMCC, established by the 2021 medical cannabis bill, is responsible for the seed-to-sale regulation of the industry, designed to be fully intrastate. Approved products range from gummies to oils, intended for a variety of medical conditions.

Alabama joins 37 other states in embracing medical cannabis, reflecting a growing national trend in cannabis policy reform. This regulatory reset could pave the way for a more equitable and transparent licensing process, aligning with the industry’s intent and potential.

Photo: Beniznga edit of photo by Shutterstock

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Posted In: CannabisGovernmentRegulationsHealth CarePoliticsMarketsalabama medical cannabisAlabama Medical Cannabis CommissionAMCCUniversity of South Alabama
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