On
While many of the particulars of
Cultivation, Processing, Production, and Dispensing of
Commercially, the Act identifies the following kinds of licenses:
License Type | Maximum Number | Regulating Agency | Authorized Activities |
Cultivator | 127 | Department |
- Cultivation of cannabis
- Sale or transfer (by means of a Secure Transporter) of cannabis to a Processor - Sale or transfer of medical cannabis to a Dispensary (if the Cultivator contracts with a Processor to process cannabis into medical cannabis on the Cultivator's behalf) 8 |
Processor | 49 | Commission |
- Purchase or transfer of cannabis from a
Cultivator
- Processing of cannabis into medical cannabis (including packaging and labeling) - Sale or transfer (by means of a Secure Transporter) of medical cannabis to a Dispensary10 |
Dispensary | 411 | Commission |
- Purchase or transfer (by means of a Secure
Transporter) of medical cannabis from a Processor
- Purchase or transfer (by means of a Secure Transporter) of medical cannabis from a Cultivator (if the Cultivator contracts with a Processor to process cannabis into medical cannabis on the Cultivator's behalf) - Purchase or transfer (by means of a Secure Transporter) of medical cannabis from an Integrated Facility - Operate up to 3 dispensing sites, each of which must be in separate counties - Dispensing and sale of medical cannabis only to a registered qualified patient or registered caregiver12 |
Secure Transporter | No limit13 | Commission | - Store and transport cannabis and medical cannabis for a fee upon request by a licensee14 |
No limit15 | Commission | - Possess and test cannabis and medical cannabis products cultivated or processed at licensed facilities16 | |
Integrated Facility License | 517 | Department and Commission |
- Cultivation of cannabis
- Processing of cannabis into medical cannabis (including packaging and labeling) - Dispensing and sale of medical cannabis only to a registered qualified patient or registered caregiver - Transport of cannabis or medical cannabis between its facilities - Sale or transfer of medical cannabis to a Dispensary18 |
Notably, at least one-fourth of all licenses (other than Integrated Facility licenses) and at least 1 of the 5 available Integrated Facility Licenses are to be awarded to minority-owned businesses.19 A full list of the requirements for each one of the aforementioned licenses is beyond the scope of this article, but there are some worth noting at the outset:
- Dispensaries will not be allowed to operate in "any municipality or unincorporated area of a county" unless that municipality or county has specifically authorized the operation of medical cannabis dispensing sites within its boundaries.20
-
Each applicant must provide records indicating that a majority of ownership is attributable to an individual or individuals with proof of residence in
Alabama for a continuous period of no less than 15 years preceding the application date.21 - Integrated Facility and Cultivator license applicants must provide records indicating a majority of ownership is attributable to an individual or individuals, or an entity or entities, with cumulative business experience in the field of commercial horticulture or agronomic production for a period of at least 15 years.22
-
Each owner, shareholder, director, board member, and individual with an economic interest in an applicant, as well as any officers, employees, contractors, and other individuals with access to medical cannabis or the facilities are required to submit to a state and national criminal background check, with their fingerprints submitted to the
Alabama State Law Enforcement Agency .23 - Applicants cannot have an economic interest in any other license under the Act.24
-
Application fees are set at a minimum of
$10,000 , with any additional costs paid by the applicant.25 - Each applicant will be subject to a 30-day public notice and comment period, with hearings held, if necessary.26
Use of
As for the use of medical cannabis, the list of qualifying medical conditions is as follows (each, a "Qualifying Medical Condition"):
- Autism
- Cancer-related Cachexia, nausea or vomiting, weight loss or chronic pain
- Crohn's disease
- Depression
- Epilepsy or condition causing seizures
- HIV/AIDS-related nausea or weight loss
- Panic disorder
- Parkinson's
- Persistent nausea not significantly responsive to traditional treatment (other than pregnancy, cannabis-induced vomiting, or cannabinoid hyperemesis syndrome)
- PTSD
- Sickle-cell anemia
- Spasticity associated with a motor neuron disease (ALS)
- Spasticity associated with MS or spinal cord injury
- Terminal illness
- Tourette's
- Chronic or intractable pain in which conventional therapeutic intervention and opiate therapy is contraindicated or has proved ineffective27
Notably, the existence of a Qualifying Medical Condition is not sufficient, in and of itself, to qualify for medical cannabis; rather, absent the use of medical cannabis being the standard of care, there must be documentation that "indicates that conventional medical treatment or therapy has failed."28Additionally, prospective patients (or caregivers) must meet the following criteria:
Patient Type | Requirements |
Registered Qualified Patient
(Adult) | - 19+ years of age
- Resident of - Certified by a Registered Certifying Physician as having a Qualifying Medical Condition - Registered with the Commission - Issued a valid medical cannabis card29 |
Registered Qualified Patient
(Minor) | - <19 years of age
- Resident of - Certified by a Registered Certifying Physician as having a Qualifying Medical Condition - Has a Registered Caregiver who is the patient's parent or legal guardian30 |
Registered Caregiver |
- 21+ years of age, unless he or she is the
parent or legal guardian of, and caregiver for, a Registered
Qualified Patient
- Registered with the Commission - Issued a valid medical cannabis card31 |
A certification for medical cannabis (which will generally take the form of an oral tablet, capsule, gelatinous cube, or nebulizer rather than combustible or food-based consumption methods)32requires that a prospective patient visit a "Registered Certified Physician," or a physician that has (1) an active medical license; (2) completed a 4-hour course on medical cannabis, (3) completed a medical cannabis exam; (4) paid a registration fee (not to exceed
Following a Registered Certified Physician's certification that a prospective patient has a Qualifying Medical Condition, a prospective patient (or designated caregiver) is responsible for registering with the Patient Registry System, after which (assuming all other aforementioned eligibility criteria are met, including the payment of a
Financial Impacts of
In addition to the relatively high license application fees, beginning
If taxable income of the taxpayer is: | ||
at least | but less than | The tax rate shall be |
It is anticipated that the revenue generated by the Act will initially be utilized for the implementation, administration, and enforcement of the Act itself.38 Beginning
Footnotes
1
2 Ala. Code § 20-2A-1.
3 See id. at § 20-2A-32 (referring to the Act as the "Alabama Compassion Act").
4 See id. at § 20-2A-34(a).
5 See id. at § 20-2A-54 (describing the seed-to-sale tracking system).
6See, e.g. id. at § 20-2A-53(a).
7 See id. at § 20-2A-62(b).
8 See id. at § 20-2A-62(a).
9 See id. at § 20-2A-63(b).
10See id. at § 20-2A-63(a).
11See id. at § 20-2A-64(b).
12See id. at § 20-2A-64(a).
13 The Act does not establish a maximum number of Secure Transporter licenses, although the Commission may still determine that a limit is appropriate.
14See Ala. Code § 20-2A-65(a). Note that transport of medical cannabis by a Secure Transporter to a registered qualified patient or registered caregiver is prohibited. See id.
15 The Act does not establish a maximum number of
16See id. at § 20-2A-66(a). Note that transport of medical cannabis by a Secure Transporter to a registered qualified patient or registered caregiver is prohibited. See id.
17See id. at § 20-2A-67(b).
18See id. at § 20-2A-67(a).
19See id. at § 20-2A-51(b). For purposes of the Act, "minority group" is defined to mean individuals of
20See Ala. Code at § 20-2A-51(c).
21See id. at § 20-2A-55(a)(10).
22See id. at § 20-2A-55(a)(11).
23See id. at § 20-2A-55(b). See also id. at § 20-2A-59(a).
24See id. at § 20-2A-55(e).
25See id. at § 20-2A-53(a)(8).
26See id. at Code § 20-2A-56(a).
27See id. at § 20-2A-3(21).
28See id.
29See Ala. Code § 20-2A-30(a).
30See id. at § 20-2A-30(b).
31See id. at § 20-2A-30(c).
32See id. at § 20-2A-3(14).
33See id. at § 20-2A-31(a).
34See id. at § 20-2A-35(a)-(b).
35See id. at § 20-2A-30(d).
36See id. at § 20-2A-68.
37See Ala. Code § 40-14A-22(b).
38See id. at § 20-2A-10(a).
39See id. at § 20-2A-10(c).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr
Ridgeland
MS 39157
Tel: 601948 5711
Fax: 601985 4500
E-mail: Sherry.vance@butlersnow.com
URL: www.butlersnow.com
© Mondaq Ltd, 2021 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source