Alabama Cannabis License Guidelines

Alabama Medical Cannabis Commission

Licensing and Enforcement Criteria

The Alabama Medical Cannabis Commission (AMCC) was established by the Alabama legislature during the 2021 legislative session and signed into law by Alabama Governor Kay Ivey. The AMCC consists of fourteen board members appointed by the Governor, Lt. Governor, Speaker of the House of Representatives, Senate Pro Tem., Agriculture and Industries Commissioner, State Health Officer, Attorney General, and Alabama Law Enforcement Agency. Board members must have expertise in a range of fields, including medicine, pharmacy, agricultural lending and practices, law enforcement, legal compliance, and mental health.

The AMCC works to implement and administer the laws 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 is authorized to both administer and enforce the laws and rules relating to medical cannabis.

Dispensaries are required to be licensed by the Commission. Dispensaries shall be licensed in accordance with the provisions of this Chapter, § 20-2A-64, Code of Alabama 1975 (as amended), and other applicable sections of the Act. Dispensary Licenses shall be awarded only to qualified applicants.

The Commission shall grant no more than four dispensary licenses.

Each dispensary licensee may operate no more than three dispensing sites, provided that each dispensing site shall be located in a separate county from other dispensing sites operated by the same dispensary licensee.

Licensees having received a notice of award granting a license shall have 14 days (as to the initial offering, until 4:00 p.m., CDT, June 26, 2023, or within 14 days of the issuance of the notice of award) to submit the appropriate license fee. The Amount of the license fee for each Applicant which has been awarded a license shall be in accordance with the annual license fee established by the Commission, which shall be as set forth in the schedule of fees, and payable electronically via the payment portal, both of which shall be contained on the AMCC website. Licensees shall be responsible for any and all transaction fees that may be assessed for their use of the payment portal.

Alabama Cannabis Law and Compliance

Several laws and ordinances regulate the Alabama medical cannabis industry, as well as the many different steps in the supply chain. These laws range over dispositions for cultivators, manufacturers, distributors and retail dispensaries. The most recent news can be found on these websites:

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FAQs

What does a dispensary license allow me to do?

  • The purchase and transfer of medical cannabis from a processor. 
  • If a cultivator contracts with a processor to process its cannabis into medical cannabis on the cultivator’s behalf, the purchase or transfer of medical cannabis from the cultivator. 
  • The purchase and transfer of medical cannabis from an integrated facility. 
  • The dispensing and sale of medical cannabis only to a registered qualified patient or registered caregiver holding a valid, unexpired, and unrevoked medical cannabis card, and only within the sales area of the dispensing site. 
  • The transfer of medical cannabis, including between the dispensary’s own dispensing sites, only by means of a secure transporter.

Are there distance restrictions for building near sites such as schools or other such institutions?

The location of any dispensing site must be at least 1000 feet from any school, day care, or childcare facility.

A dispensing site may not operate in the unincorporated area of a county or in a municipality that has not adopted a resolution or ordinance authorizing the operation of dispensing sites under § 20-2A-51, Code of Alabama 1975 (as amended).

How can a license holder build in an unincorporated area of a county?

Any county commission, by resolution, may authorize the operation of dispensing sites in the unincorporated areas of the county, and the governing body of any municipality, by ordinance, may authorize the operation of dispensing sites within the corporate limits of the municipality. The county commission or municipal governing body shall notify the commission not more than seven calendar days after adopting the resolution or ordinance.

Must a dispensary have security guards to operate?

Dispensary facilities must maintain sufficient staffing of security guards at each facility where cannabis and medical cannabis is present to reasonably ensure the safety of the products stored therein; however, the dispensary must provide, at a minimum, one (1) security guard per facility during the facility’s business/operating hours.

Alabama Cannabis License Types

Integrated Facility

No more than 5 licenses to be awarded. Each licensee may operate up to 5 dispensing sites.

An integrated facility license authorizes all of the following:

  • The cultivation of cannabis.
  • The processing of cannabis into medical cannabis, including proper packaging and labeling of medical cannabis products.
  • The dispensing and sale of medical cannabis only to a registered qualified patient or registered caregiver.
  • The transport of cannabis or medical cannabis between its facilities.
  • The sale or transfer of medical cannabis to a dispensary.

Annual License Fee: $50,000

Read more about the requirements to become an integrated facility in §20-2A-67. Additional details concerning the application process and operation requirements can be found HERE.

Cultivator

No more than 12 licenses to be awarded.

A cultivator license authorizes all of the following:

  • The cultivation of cannabis.
  • The sale or transfer of cannabis to a processor.
  • If the cultivator contracts with a processor to process its cannabis into medical cannabis on the cultivator’s behalf, the sale or transfer of medical cannabis to a dispensary.

Annual License Fee: $40,000

Read more about the requirements to become a cultivator in §20-2A-62. Additional details concerning the application process and cultivation can be found in the Alabama Department of Agriculture and Industries rules found HERE and in the AMCC rules relating to cultivation HERE.

Processor

No more than 4 Licenses to be awarded.

A processor license authorizes all of the following:

  • The purchase or transfer of cannabis from a cultivator.
  • The processing of cannabis into medical cannabis which shall include properly packaging and labeling medical cannabis products, in accordance with the law.
  • The sale or transfer of medical cannabis to a dispensary.

Annual License Fee: $40,000

Read more about the requirements to become a processor in §20-2A-63. Additional details concerning the application process and processing can be found HERE.

Dispensary

No more than 4 Licenses to be awarded. Each licensee may operate up to 3 dispensing sites.

A dispensary license authorizes all of the following:

  • The purchase or transfer of medical cannabis from a processor.
  • If a cultivator contracted with a processor to process its cannabis into medical cannabis on the cultivator’s behalf, the purchase or transfer of medical cannabis from the cultivator.
  • The purchase or transfer of medical cannabis from an integrated facility.
  • The dispensing and sale of medical cannabis only to a registered qualified patient or registered caregiver.

Annual License Fee: $40,000

Read more about the requirements to operate a dispensary in §20-2A-64. Additional details concerning the application process and dispensing can be found HERE.

Secure Transporter

No license limits.

A secure transporter license authorizes the licensee to store and transport cannabis and medical cannabis for a fee upon request of a licensee. A license does not authorize transport to a registered qualified patient or registered caregiver.

Annual License Fee: $30,000

Read more about the requirements to become a secure transporter in §20-2A-65. Additional details concerning the application process and transporting can be found HERE.

State Testing Laboratory

No license limits.

A state testing laboratory license authorizes the licensee to possess and test cannabis and medical cannabis products cultivated or processed at licensed facilities.

Annual License Fee: $30,000

Read more about the requirements to become a state testing laboratory in §20-2A-66. Additional details concerning the application process and laboratories can be found HERE.

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