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alabama

HOW TO OPEN A DISPENSARY IN ALABAMA

In March 2021, Alabama proposed SB46 and the Darren 8 Wesley 'Ato' Hall Compassion Act to establish infrastructure for a medical marijuana program within the state, poising to become the 39th state to legalize a medical market if signed into law, it will allow for multiple license types within the state however still prohibits raw cannabis, smoking, vaping, baked goods, and candies. The commission has a deadline of Sept. 1, 2022 to set up the rules to implement the program and issue licenses to cultivators, processors, transporters, testing laboratories, and dispensaries. 

Currently, there is no authorized medical or adult use marijuana program in Alabama. The Alabama Medical Cannabis Commission convened in September of 2019 and voted in December 2019 to recommend a draft medical marijuana bill. The Legislature created this commission to study whether Alabama should join the other states in legalizing marijuana, after amending a bill that would have simply legalized medical marijuana in its earlier draft.

 

The bill would establish the first Alabama Medical Cannabis Commission to regulate patient registration, with a dedicated fund to cover costs, as well as the Medical Cannabis Research Consortium for medical research on cannabis.

 

The Alabama Department of Agriculture and Industries (ADAI) would regulate the cultivation of medical cannabis.

 

The ADAI regulates the cultivation and processing of hemp under the Industrial Hemp Research Pilot Program. The registration period for hemp growers, processors, and universities seeking licensure in 2020 is now closed.

Available Medical Marijuana License Types 

If SB 46 passes, five different license types applicable to medical cannabis only would be offered by the commission

 

  • Cultivation license

  • Processing license

  • Transporting license

  • Testing license

  • Dispensing license

  • Integrated facility license

 

These licenses are subject to a non-refundable application fee of $2,500, as well as a license fee of $10,000-$50,000. 

 

According to updated SB 46 the commission will award licenses to a minimum of four cultivators, a maximum of four processors, and a maximum of four dispensaries (allowing up to three locations each). The bill also allows for up to five integrated facility licenses which may grow, process, transport, and dispense cannabis, and may have up to five separate dispensing sites as long as they are in different counties. 

Applicants business plans will be considered by the commission, including ability to conduct proposed activities, previous expertise and history in business, and planned location. 

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Medical Marijuana

While a full Medical Marijuana Program has yet to be established in Alabama, state lawmakers plan to reconvene in the hopes of passing SB 46. Detailed in this bill are the conditions that would qualify a patient to receive a medical cannabis card, and participate in the program. Legislation notes that these conditions are only qualifying for medical cannabis use if it has been proven that conventional treatment was unsuccessful in the treatment or management of the condition.

If passed, SB46 would allow patients with the following conditions to qualify for medical marijuana:

  • Anxiety or panic disorder

  • Autism Spectrum Disorder (ASD)

  • Cancer-related cachexia, nausea or vomiting, weight loss, or chronic pain

  • Crohn's Disease

  • Epilepsy or a condition causing seizures

  • Fibromyalgia

  • HIV/AIDS-related nausea or weight loss

  • Persistent nausea 

  • Post Traumatic Stress Disorder (PTSD)

  • Sleep disorders

  • Amyotrophic Lateral Sclerosis and other spasticity disorders

  • Spasticity associated with Multiple Sclerosis or a spinal cord injury

  • Terminal illness 

  • Tourette's Syndrome

  • Chronic or intractable pain

History  

The Alabama Medical Cannabis Commission convened in September of 2019 at the State House. The Legislature created this commission to study whether Alabama should join the other states in legalizing marijuana, amending a bill that would have simply legalized medical marijuana in its earlier draft. In February 2020, SB165, a bill authorizing medical marijuana passed through a legislative committee in the state senate.

In February 2020, SB165, a bill authorizing medical marijuana passed through a legislative committee in the state senate. The bill would allow for medical consumption through oral pills, transdermal patches, oils, nebulizers, inhalers, suppositories, and gummies. The bill would not allow for smoking or vaping raw plant material, or consumption of infused edible products.

Estimated market size

Alabama is projected to retail around $48 million in its first full year of medical sales, about $163 million in the second year, and approximately $387 million in the third year of legal medical cannabis sales. - Akerna

How to open a Marijuana Business in Alabama

If you are just starting your marijuana business, the next best step is to start a Business Plan to help educate your team and be ready to apply for a marijuana/hemp business license. If you are ready to apply for a Marijuana/Hemp Business License in Alabama, please Contact us or call our office to set an appointment to get started. You can also select another State Opportunity, or fill out our Contact Form to discuss potential strategies such as Investment or Partnership Opportunities