Alabama Judge Considers Easing Restrictions on Medical Cannabis Licensing

LOS ANGELES- A Montgomery County judge signaled Tuesday that he may consider easing some restrictions on the Alabama Medical Cannabis Commission (AMCC) to allow limited vetting of cannabis license awards, potentially advancing the state’s delayed medical cannabis program.

Judge James Anderson indicated that he may amend a temporary restraining order to permit some investigative actions related to the license awards but would stop short of allowing the issuance of licenses. This discussion followed a nearly two-hour hearing focused on motions involving the AMCC and competing lawsuits from companies challenging the commission’s licensing process.

Delayed Program Amid Legal Disputes

The Alabama Legislature approved a medical cannabis program in 2021 under the Compassion Act, which allows cannabis to be used for various medical conditions, including chronic pain, cancer, and PTSD. However, the rollout has been stalled due to lawsuits and controversies over how production and distribution licenses were awarded.

The AMCC’s first attempt to award licenses in June 2023 was voided after inconsistencies in the scoring process were discovered. Subsequent attempts to issue licenses have been met with further legal challenges, with plaintiffs alleging that the AMCC violated the state’s Open Meetings Act.

One of the primary plaintiffs, Alabama Always, a company denied an integrated license, has been involved in multiple lawsuits contesting the AMCC’s actions. The company has called for a court ruling to invalidate the latest round of license awards and is seeking a summary judgment on the legality of the commission’s investigative hearing process.

Economic Implications for Companies and Patients

The ongoing legal delays have not only affected businesses but also the thousands of patients awaiting medical cannabis treatment. The Compassion Act allows for cannabis products like gummies, tablets, oils, and patches to be used for conditions such as epilepsy, muscle spasms, and cancer-related symptoms. However, production and distribution remain on hold due to the litigation.

Several companies that have been awarded licenses in multiple rounds, such as Sustainable Alabama and Flowerwood Medical Cannabis, are urging the court to lift the restraining order. These companies argue that continued delays are financially unsustainable, as they must maintain readiness for production while awaiting the resolution of legal disputes.

Sustainable Alabama, one of the companies awarded an integrated license in all three rounds of the AMCC’s license awards, has warned that if the restraining order is not revised, they may be forced to abandon their plans due to mounting costs.

Broader Regulatory Challenges

The competition for Alabama’s limited number of integrated licenses—which allow companies to cultivate, process, and dispense medical cannabis—has fueled much of the litigation. By law, the AMCC can issue no more than five integrated licenses, and more than 30 companies have applied for them. The scarcity of these licenses has created significant legal and economic challenges.

The AMCC, along with three companies that have been awarded licenses but are blocked from proceeding, has requested that Judge Anderson lift or modify the restraining order so that the licensing process can resume. The commission argued that the ongoing delays are preventing patients from receiving much-needed medical relief and that further litigation could cause awarded businesses to reconsider their involvement in the program.

As the legal battles continue, it remains unclear when Alabama’s medical cannabis program will be fully operational. Both the AMCC and the companies involved hope that a resolution will allow the state to move forward with its medical cannabis industry, providing relief to patients and stability for businesses.