How to Get a Marijuana License in Alabama

In May 2021, medical marijuana was legalized in the State of Alabama. The Alabama Medical Cannabis Commission (AMCC) was subsequently established to administer and enforce the laws and rules relating to medical cannabis in the state. It is the AMCC’s responsibility to implement and administer the law by making medical cannabis derived from cannabis grown in Alabama available to registered qualified patients and by licensing facilities that process, transport, test, or dispense medical cannabis. The AMCC licenses and regulates all aspects of medical cannabis, excluding cultivation which is primarily licensed and regulated by the Department of Agriculture and Industries.

 

Beginning on September 1, 2022, a person may apply to the AMCC for a license for an integrated facility or for a license as a cultivator, processor, secure transporter, state testing laboratory, or dispensary. A nonrefundable application fee of two thousand five hundred dollars ($2,500) must be paid at the time of filing the application to defray the costs associated with the background investigation conducted by the AMCC. The AMCC will review all applications for licenses and must determine whether to grant or deny a license not more than 60 days after the date a license application was submitted (unless the applicant was notified of a deficiency). Keep in mind that the AMCC must ensure that at least one-fourth of all licenses are awarded to businesses at least 51 percent of which are owned by members of a minority group, meaning individuals of African American, Native American, Asian, or Hispanic descent.  Licenses must be renewed annually.

 

The application for a license must be made under oath on a form provided by the AMCC and must contain certain information as prescribed by the AMCC, including, but not limited to, the following:

• the name, business address, business telephone number, and social security number or federal tax identification number of the applicant;
• the identities of certain individuals and business entities that have any ownership interest in the applicant;
• whether an owner, director, board member, or individual with a controlling interest in the applicant has been indicted for, charged with, arrested for, or convicted of, pled guilty or nolo contendere to, forfeited bail concerning any criminal offense under the laws of any jurisdiction, either felony or controlled substance-related misdemeanor, not including traffic violations, regardless of whether the offense has been reversed on appeal or otherwise, including the date, name and location of the court, arresting agency, and prosecuting agency, the case caption, the docket number, the offense, the disposition, and the location and length of incarceration;
• whether an applicant has ever applied for or has been granted any commercial license or certificate issued by a licensing board or commission in the state or any other jurisdiction that has been denied, restricted, suspended, revoked, or not renewed and a statement describing the facts and circumstances concerning the application, denial, restriction, suspension, revocation, or nonrenewal, including the licensing board or commission, the date each action was taken, and the reason for each action;
• whether an applicant has filed, or been served with, a complaint or other notice filed with any public body, regarding the delinquency in the payment of, or a dispute over the filings concerning the payment of, any tax required under federal, state, or local law, including the amount, type of tax, taxing agency, and time periods involved;
• a statement listing the names and titles of all public officials of any unit of government, and the spouses, parents, and children of those public officials, who, directly or indirectly, own any financial interest in, have any beneficial interest in, are the creditors of or hold any debt instrument issued by, or hold or have any interest in any contractual or service relationship with an applicant;
• the anticipated or actual number of employees and projected or actual gross receipts;
• financial information in the manner and form required by the AMCC;
• records indicating that a majority of ownership is attributable to an individual or individuals with proof of residence in the state for a continuous period of no less than 15 years preceding the application date; and
• for an applicant seeking an integrated facility or cultivator license, records indicating that a majority of ownership is attributable to an individual or individuals, or an entity or entities, with cumulative business experience in the field of commercial horticulture or agronomic production for a period of at least 15 years.

 

Additionally, each owner, shareholder, director, board member, and individual with an economic interest in an applicant will have to submit to a state and national criminal background check. Further, an applicant must provide written consent to inspections, examinations, searches, and seizures and to disclosure to the AMCC and its agents of otherwise confidential records, such as tax records. An applicant must also certify that the applicant does not have an economic interest in any other license.

 

An applicant will be ineligible to receive a license if an owner director, board member, or individual with a controlling interest in the applicant has been convicted of or released from incarceration for a felony within the past 10 years or has been convicted of a controlled-substance related felony within the past 10 years, excluding any conviction overturned on appeal or any charge that has been expunged. Further, an owner, director, board member, or individual with an economic interest in the applicant cannot be a member of the AMCC. An applicant will also be deemed ineligible if they fail to demonstrate an ability to maintain adequate minimum levels of liability and casualty insurance.

 

Moreover, the AMCC, in determining whether to grant a license to an applicant, will consider several factors, such as the integrity, moral character, and reputation; financial ability and experience; and responsibility or means to operate or maintain a facility of the applicant. The AMCC will also consider the financial ability of the applicant; the sources and total amount of the applicant’s capitalization to operate and maintain the proposed facility; whether anyone involved with the business has a criminal record; whether the applicant has filed, or had filed against it, a proceeding for bankruptcy within the past 7 years; whether the applicant has a history of noncompliance with any regulatory requirements in the state or other jurisdictions; whether at the time of application, the applicant is a defendant in litigation involving its business practices; the applicant’s ability to capitalize and conduct operations as proposed in its business plan, including business experience in related fields; the applicant’s history of business activities as it applies to the specific license for which the applicant is seeking licensure; and the proposed location of all proposed medical cannabis facilities as being suitable for all activities, not inconsistent with applicable zoning, and the applicant’s ability to serve an identifiable geographic area.