Amid controversy, Alabama awards operator licenses (again)

After much scrutiny and debate, the Alabama Medical Cannabis Commission in December awarded 25 licenses to applicants, once again sparking lawsuits and controversy.

On December 1, 2023, the commission awarded seven cultivator licenses, four retail licenses, four processor licenses, four transport licenses and one testing license.

Then on December 12, 2023, the commission awarded five integrated facility licenses, allowing those five companies to handle every aspect of the cannabis supply chain except testing.

The state has set a cap of 12 cultivator licenses, five integrated facility licenses, four processor licenses and four retail licenses.

The most recent round of integrated facility licenses marks the third time the commission has awarded five operators with the licenses — and the third time the process has resulted in more accusations and a lawsuit. According to the Alabama Political Reporter, the commission was mandated to inspect facility sites prior to issuing licenses, but instead awarded licenses before beginning inspections, prompting speculation as to what disqualified the other 23 applicants and how the commission will proceed if one of the currently licensed operates fails its inspection.

Alabama Always, one of the unsuccessful applicants for the integrated facility licenses, filed a lawsuit against the commission for a second time, arguing that the selection process allowed a minority of the commission the right to veto an applicant that won the majority vote.

Similarly, Verano also sued the commission after winning an integrated facility license during the first round and then losing it when the commission decided to redo its initial round of licensing.

Montgomery County Circuit Court Judge James Anderson denied Alabama Always’ request for a temporary restraining order, he opined on the transparency of the licensing process.

“I would think that the public is entitled to know how each commissioner voted and what score was assigned,” Anderson said. “If Commissioner Jones votes this person No. 1 and this person 36, the public has the right to know that.”

Enchanted Green, an applicant for a processors license, filed a lawsuit against the commission after placing second twice, then tying for fourth on the latest round of licenses issued. Since only four processor licenses were allowed, the commission opted to draw the winner’s name from a bowl. In the lawsuit, Enchanted Green argues that after paying the $40,000 license fee “which was supposed to result in the AMCC issuing plaintiff a processor license, the AMCC ‘rescinded’ (i.e., revoked) the processor license awards and refused to issue licenses to any of the awardees, including plaintiff Enchanted Green.”

Alabama legalized medical marijuana on May 20, 2021. The Alabama Medical Cannabis Commission first opened the application window for cannabis operators on September 1, 2022.