Alabama opens application process for medical cannabis business licenses

Published: Sep. 1, 2022 at 6:04 PM CDT
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MONTGOMERY, Ala. (WSFA) - The state’s Medical Cannabis Commission started its application process for business licenses. Businesses have a little over a month to request an application before the actual forms are sent out.

“We’re excited about today being the first day to start the application process,” said John McMillian, director of the commission.

The commission will award a specific number for each license:

  • 12 cultivators licenses
  • Four processors license
  • Four dispensary licenses
  • Five integrated facility licenses
  • An unspecified number for secure transport and state testing lab licenses

“I think we’ll probably see some combinations of Alabamians partnering up with some out-of-state people,” said McMillian.

It costs $2,500 to apply. And if accepted, annual license fees range from $30,000 to $53,000.

Medical cannabis advocate Melissa Mullins believes this will limit small businesses looking to apply. She sent a statement saying, in part, “We are afraid (and convinced), that the only ones with access to ‘big time’ funds and backers will dominate the industry; leaving small Alabama businesses/farms with absolutely no chance.”

“The Legislature does expect us to be self-sufficient in another couple of years,” said McMillian.

The prices were set by the Legislation and also ensure coverage of other fees, like software and facility inspections. McMillian says some of their prices are still cheaper than other states.

“The integrator license in the state of Florida, that fee is $174,000-plus, so that would be high...Different states are set up with different licenses,” he said.

The state set the following deadlines:

  • Oct. 17 for application requests
  • Oct. 24 is when applications will be sent to requestors
  • Dec. 30 is when applications due

The commission’s goal is to have products available in September of next year.

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