Cannabis Licensing Saga Continues In Alabama, Troubled Marijuana Regulator Hit With New Lawsuit

Alabama cannabis regulator is facing yet another lawsuit following its third attempt on Friday to allocate much sought-after medical marijuana business permits.

Last week, the Alabama Medical Cannabis Commission granted 20 licenses for cultivation, processing, distribution and testing.

The two failed attempts in June and August were followed by a months-long legal saga that resulted in AMCC resolving a majority of the issues raised by license applicants after a day of closed-door negotiations prompted by Montgomery Circuit Court Judge James Anderson.

The November settlement put an end to numerous legal actions against the regulatory body brought by several medical cannabis operators, including Alabama Always LLC, Medella LLC and Chicago cannabis giant Verano Holdings Corp. VRNOF, to name a few.

Now, the processor Enchanted Green LLC, which was granted a processor permit in the first and second rounds, has been left without it in AMMC’s third attempt to allocate licenses, Law360 reported.

Moreover, in its lawsuit, Enchanted Green claims that the AMCC unfairly altered its procedures and awarded the processor permit to a different company, following the company's payment of a $40,000 license fee following the confirmation of its license in August, writes Green Market Report’s John Schroyer.

“The AMCC’s actions of repeatedly changing rules, criteria, and parameters for applicants, their submissions, and the awarding of processor licenses was and is unconstitutional and cannot be permitted,” Enchanted Green said in the lawsuit.

The lawsuit alleges that the commissioners lacked clarity on Friday regarding the selection method for license winners while indicating they’ve not reviewed the extra permit materials that the company submitted with their third attempt at acquiring a license from the AMCC.

Enchanted Green said the cannabis regulator violated multiple laws, including the Alabama Open Meetings Act, the Alabama Administrative Procedure Act and the Darren Wesley “Ato” Hall Compassion Act.

The company is now seeking judicial intervention to stop the AMCC from issuing licenses.

Photo: Courtesy of Shutterstock