Alabama Audit Finds Medical Cannabis Commission Violated Open Meetings Law, Overpaid Legal Vendor by $204,000

A new report found the Alabama Medical Cannabis Commission committed multiple legal and procedural violations between May 17, 2021 and September 30, 2025, including failures tied to open meetings, administrative rulemaking and contract oversight. The report was filed March 20, 2026 by the Alabama Department of Examiners of Public Accounts. Among the most notable findings was that the commission paid a vendor for legal services far more than the contract allowed. According to the report, the legal services contract was capped at $400,000, but the vendor ultimately received $604,197.55, resulting in an overpayment of $204,197.55. Examiners said the overpayment happened because the commission failed to properly monitor payments to ensure they stayed within the contract terms. The report says the issue led to the vendor filing a claim with the Alabama Board of Adjustments that was later ordered to be paid.

The examination also found the commission failed to comply with all requirements of the Alabama Open Meetings Act. After reviewing minutes from 62 commission meetings, examiners said the records did not always include key details such as members in attendance, whether members attended virtually or in person, the physical location of meetings, and whether meetings would reconvene after executive session. In at least one instance, a posted meeting notice also failed to include the physical location. Examiners warned that such noncompliance could weaken public access and could even result in the invalidation of actions taken by the commission.

Another finding centered on fees. The report says the commission did not adopt rules in accordance with the Alabama Administrative Procedures Act to establish specific fee amounts for a wide range of licenses, registrations and card-related charges. Examiners said that because those amounts were not set directly in law, they needed to be established through administrative rule. The report also says the commission temporarily reduced certain annual business license fees in late 2024 without first amending its rules through the required process.

Examiners further found that one of the commission’s administrative rules conflicted with state statute by requiring patients and caregivers to report lost or stolen medical marijuana cards within 72 hours, even though Alabama law gives them 10 days after becoming aware the card is missing. The report says that rule imposed stricter requirements than what state law allows.

The commission was also cited for not having an approved Records Disposition Authority and for failing to submit annual implementation reports in 2022, 2023, 2024 and 2025 as required. Examiners said that failure could have allowed for the improper destruction of records.

The Alabama Medical Cannabis Commission was created in 2021 and has authority over licensing and regulation for medical marijuana cultivators, processors, dispensaries, transporters, testing laboratories and integrated facilities. The report notes that its operating funds come from fees collected while carrying out that mission. Financial exhibits in the examination show the commission received $2.77 million in cannabis licenses and fees during the review period, while the Medical Cannabis Commission Fund ended the period with $2.4 million in cash balances.