Alabama judge considers revising order that’s stalled medical marijuana licensing

A Montgomery County Circuit Court judge is considering revising a temporary restraining order that has kept the issuance of medical marijuana business licenses in limbo. But what that change would entail is still unknown.

Judge James Anderson on Tuesday heard arguments from attorneys representing the Alabama Medical Cannabis Commission and companies seeking licenses. The immediate consideration is whether to allow investigative hearings to move forward, which could be a meaningful leap toward issuing licenses for vertical integration and dispensaries.

“Definitely a step in the right direction,” said Paula Savchenko, who represents Pure by Sirmon Farms LLC, one of the companies awarded a cultivation license in the initial round conducted by the AMCC.

Prior to the hearing, Anderson directed the commission and companies denied licenses to provide a joint proposed order that would allow for investigative hearings but prevent licenses from being issued immediately.

If the judge revises the order, an administrative law judge would be assigned to conduct hearings for vertical integration and dispensary licenses. That judge would then issue a recommendation to the AMCC, which could either revise or agree with the recommendation.

“We’re about two, three months out from that, I would say,” Savchenko estimated.

However, she also cautioned that several steps in this process could go “positive or negative, depending on which side you’re on.” Anderson has not definitively stated how he will revise the order, and the AMCC is not obligated to agree with the administrative law judge’s recommendations.

Savchenko also pointed to a growing concern among some: While cultivator and processor licenses are moving forward, the hold on vertical integration and dispensary licenses is creating financial strain.

“It’s just really going to hurt the industry because you’re going to have groups that are paying to keep their licenses operational while they don’t even have outlets to fill them into,” she said. “There really should be pressure put on the commission at this point to get that side of the industry moving and licensed.”

The ongoing legal challenges have delayed the implementation of Alabama’s medical marijuana program, which was legalized in 2021. The law allows for the production of various cannabis products to treat conditions including chronic pain, epilepsy and post-traumatic stress disorder.

The AMCC has attempted to award licenses three times since June 2023.

Will Somerville, an attorney for Alabama Always, a company rejected for licenses, told reporters after Tuesday’s hearing that he would like the judge to keep the injunction in place, invalidate the December license awards in the integrated category, and rule that the commission’s planned investigative hearing process is invalid.

“The process is clearly flawed,” Somerville said, according to ALReporter.com. “… Because right now we’ve got a situation where they keep issuing licenses and keep doing so in violation of the law and it’s just got the whole process mired in mud.”

Bryan Taylor, attorney for TheraTrue Alabama LLC, which received licenses in the first two rounds but not the third, said that they were seeking answers about the December decision, questioning why all the licenses changed.

State lawmakers attempted to address some of these issues in its last session, to no avail. Another hearing will be scheduled soon.