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Facing Multiple Lawsuits, Alabama Medical Marijuana Regulators Overhaul Business Licensing Process

October 13, 2023 by Marijuana Moment


The proposed rule would allow all applicants a transparent and expeditious process to address issues raised.


By Alander Rocha, Alabama Reflector

After months of legal disputes, and stalled negotiations regarding the evaluation process by the Alabama Medical Cannabis Commission, new rules for application and licensing were adopted Thursday.

The rules adopted will allow the commission the ability to retain the scores they gave to previous applications, but also give applicants the opportunity to highlight deficiencies. The commission will hold a public hearing where applicants can present their ideas.

The AMCC’s Mark Wilkerson, an attorney, said that the proposed rule would allow all applicants to have a transparent and expeditious process to address any issues raised about their applications. This includes any deficiencies suggested in the scoring process or technical issues which they claim prevented them from submitting their full exhibits.

AMCC chair Rex Vaughn stated that the presentation will affect the commission’s decision on licenses.

Vaughn stated that there are still questions the commission has not been able to answer. These include residency, ownership, and other issues.

Alabama approved a medical marijuana program in 2021. This allows medical cannabis to be treated for about 15 chronic diseases and illnesses.

In June, the AMCC granted licenses for the production and distribution of medical cannabis. However, inconsistencies with the scoring led to several lawsuits as well as a stop to the licensing process. The companies that were denied licenses claimed the AMCC was conducting most of its business behind closed door, in violation of the Open Meetings Act.

Aretha Dix said that after the meeting, she was encouraged by the fact that applicants were allowed to present their business proposals to the commission.

She said, “You can see our faces.” “You get compassion on our faces,” she said. You can hear our compassion and see where we are from.

Antoine Mordican is the CEO of Native Black Cultivation. The hemp company wants to expand into medical marijuana cultivation. Mordican stated that his application was flagged due to a “residency deficit.” His company, he said, is owned 100 percent by Alabama and that they have over 30 consecutive years of residency on their application.

Mordican stated, “I am happy that we will be able speak to them about our rationale for doing what we did and let them know the purpose of everything.”

The AMCC will be able also to identify issues with pass/fail marks and allow applicants to submit exhibits, which were previously restricted due to the 10 megabyte limit on file sizes in the application portal. The applicant will have the option to dispute a mark of pass/fail on their application, but they will not be allowed to provide additional information.

Wilkerson stated that the original intent of the procedure was to limit applicants’ redactions to information about themselves, their trade secrets, or information that could be considered competitively sensitive. The rules allow applicants a 10-day window to submit a redacted version of their application.

Wilkerson stated that the commission acknowledged redactions inconsistent.

Vaughn, when asked why the Commission didn’t address inconsistent redactions sooner, said that he wasn’t sure he could do so as the Redaction Process was kept at “arm’s length”.

Vaughn stated that the redaction process was a sensitive issue for both his staff and members of the commission.

The commission has also made changes to the process of investigative hearings for applicants who have been denied a license. Prior to this, license applicants who were denied had to pay upfront the licensing fee. An investigative hearing would cost an integrated facility $50,000. It would cost $40,000 for a dispensary that is denied, like Dix’s.

In the new rules, applicants will not have to pay any fees to request an investigation hearing.

Dix stated that this allows her to concentrate on the services she provides, without facing another financial barrier. She said that in addition to licensing and application fees, they should also have to pay for the opportunity to appear before the commission or provide an explanation.

She said that paying to have access to this information was more deterrent. “But we knew that deep inside, we had a purpose and that our company still has the opportunity to help citizens, and specifically patients,” she said.

Will Somerville is an attorney for Alabama Always. The company sued the commission on in June, in August, and in July, claiming procedural inconsistencies.

Somerville stated, “I believe [Wilkerson] is trying to address – and get the commission address – the issues that we applicants had with the application process.” “I think that even though I haven’t read the rules yet, it is a good step.”



The story was originally published by Alabama Reflector.


The cannabis financing executive who spoke to the GOP Marijuana Banking bill sponsor says that Senate floor votes will be held until House passage is assured.


Photo by Chris Wallis // Side Pocket Images.

The post Faced with multiple lawsuits, Alabama Medical Marijuana Regulators Restructure Business Licensing Process first appeared on Marijuana Moment.

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