Legal fights Surround Alabama’s Medical Cannabis Licensing Process

LOS ANGELES-The Alabama Medical Cannabis Commission (AMCC) finds itself amidst legal turbulence due to challenges related to its medical cannabis licensing process.

Background: Verano Holdings Corp. recently took legal action against the AMCC, criticizing the commission’s convoluted licensing procedure. This lawsuit is among several others filed against the AMCC. The tiff between Verano and AMCC started when Verano, after originally being awarded an Integrated Facility License in June, was denied the same license in a later round in August, with no clear reason provided.

Notably, Verano had received the highest scores in both licensing rounds but was left empty-handed during the redo process. The re-evaluation had been prompted by identified “inconsistencies” in the initial application scoring. Verano’s main contention is that the AMCC exceeded its authority by revoking previously granted licenses, an action they believe the Alabama Legislature did not authorize the commission to undertake.

Latest Developments: Montgomery County Circuit Judge James Anderson recently explored the extent of the AMCC’s power to retract licenses after they’ve been awarded. While there exists a provision for license withdrawal following an official notice and subsequent hearing, the specifics of Verano’s situation are still being debated. Judge Anderson is expected to soon deliver a verdict on this and another related lawsuit filed by Alabama Always.

In parallel proceedings, Medella LLC has sued the AMCC for defamation. They allege that the commission’s evaluations mistakenly implied a criminal background for one of their senior figures.

The AMCC has reportedly set aside up to $400,000 for legal representation to counteract lawsuits from firms that didn’t receive licenses.

Recent Changes & Future Outlook: On Thursday, the AMCC revised its licensing process for the third time, as per WIAT. Under the new guidelines, current applications will be re-evaluated with existing scores, but applicants can now present to the commission directly.

These revisions have been introduced amidst ongoing lawsuits, including one claiming a violation of the state’s open meetings law, and another from Medalla LLC concerning defamatory claims by the AMCC.

A Montgomery County Circuit Court judge recently dismissed Verano Holdings’ lawsuit against the AMCC, as reported by the Alabama Daily News.

Rex Vaughn, Commission Chairman, termed the recent revisions as a “kind of a reset.” He emphasized that the commission plans to leverage previous work to streamline the licensing process and hopes to award the licenses by the year’s end.