Alabama Medical Marijuana Regulators Award New Cultivation Licenses Amid Litigation That Has Stalled The Program

“I am very concerned about the extensive litigation that just seems to never end.”

By Ralph Chapoco, Alabama Reflector

The Alabama Medical Cannabis Commission (AMCC) Thursday granted cultivation licenses to two firms after an administrative law judge recommended reversing earlier denials.

The commission awarded two cultivator’s licenses to Pure by Sirmon Farms LLC and Blackberry Farms LLC. The administrative judge, who was not publicly named, also found that First Choice Farms LLC and James Gang Dispensary LLC did not meet the required qualifications to be awarded a cultivator license, which the commission agreed.

“All they do is satisfy the statute in the law that required us to have investigative hearings for those applicants who were not issued a license, and who felt like they were short changed or have not been given their due diligence.” said Alabama Medical Cannabis Commission Chair Rex Vaughn in an interview after the meeting.

The license awards do not resolve any of the litigation that has delayed implementation of the state’s medical cannabis program, first approved by the Alabama Legislature in 2021. The commission is facing lawsuits over license awards. A Montgomery judge has blocked the commission from granting dispensary and integrated facility licenses.

“The things we did today do not affect the lawsuit,” Vaughn said.

When implemented, the program will allow certified patients to use medical cannabis for 15 conditions, including cancer, chronic pain, Crohn’s disease, Parkinson’s disease and depression. Patients will need a card to obtain cannabis from licensed dispensers. The law prohibits smoking or consuming cannabis in food, offering it instead in forms like tablets, oils, creams and peach-flavored gummies.

Applicants who wanted to appeal denials could go to an administrative law judge who held a hearing to receive information from the applicants and review their paperwork. The judge then offered a recommendation to the commission based on the findings from both the hearing and from reviewing the application.

Applicants may also appeal the verdict in circuit court.

The licenses go to several different parts of the cannabis production chain, including cultivation, processing, dispensing, transporting and testing. The law also allowed the Commission to grant integrated licenses, which allow firms to grow, process and dispense marijuana under one roof.

Vaughn said the commission’s decision during Thursday’s meeting is final at the Commission level, with the applicants who wanted cultivator and transporter licenses having exhausted the appeals process administratively. They may, however, file an appeal in Montgomery Circuit Court.

In July, Montgomery Circuit Court directed companies that had been denied a license and AMCC to provide a jointly proposed order to allow investigative hearings on awarded licenses to continue but would prevent the licenses from being issued.

“The investigative hearing process has begun for the processor license category,” Vaughn said during the meeting. “Also, the dispensary and integrated facility license categories, the commission has imposed its administrative order that will remain in effect until the investigative hearing process has been completed in these categories. The commission has requested that the court lift or modify the temporary restraining orders that are preventing the investigative hearings in those categories.”

The delays stemming from the ongoing litigation is taking a visible toll on some of the commissioners.

“I am curious as to whether or not there is any hope of any settlement thoughts going on anytime soon,” said Commssioner Loree Skelton during the meeting. “Over a year ago, I pretty much begged this body to stop and pause and spend some time talking to the plaintiffs’ attorneys, because I am very concerned about the extensive litigation that just seems to never end.”

Amanda Taylor, who suffers from multiple sclerosis, gastroparesis and other ailments, told commissioners about the pain and weight loss she experienced.

“I filed a motion myself on behalf of the patients to intervene, because everybody is wrapped up in greed. And the last thing people are looking at is the people who suffer,” Taylor said.

She then pulled out straps on the pants she was wearing at the meeting to show how much weight she lost.

This story was first published by Alabama Reflector.

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Photo courtesy of Chris Wallis // Side Pocket Images.