Alabama Cannabis Licensing Overview
Medical cannabis was legalized in Alabama in 2021. The application window for medical cannabis facilities and dispensaries closed on December 30, 2022, and all available Alabama cannabis licenses were issued on January 9, 2024.
License Types
There are six different Alabama medical cannabis business licenses. They are the integrated facility, cultivator, processor, dispensary, secure transporter, and state testing laboratory licenses. The number of issued licenses is listed in the chart below.
Fee Structure
There are three primary licensing fees that must be paid by applicants and those who operate licensed medical cannabis businesses:
1. Application fee (non-refundable)
2. License fee (paid after the license is approved)
3. Annual cannabis license renewal fee (paid annually by the licensed business)
The application fee is $2,500. The license fee and annual renewal fee are dependent on the license type.
Annual cannabis license renewal fees paid late are subjected to additional charges.
Integrated Facility License
The integrated facility license authorizes a variety of activities, including:
- Cannabis cultivation.
- Processing cannabis into medical products, including proper packaging and labeling.
- Dispensing and selling medical cannabis to registered patients or caregivers.
- Open up to five dispensaries; each of which must be in different counties.
- Transporting cannabis or medical cannabis between facilities.
- Selling or transferring medical cannabis to a dispensary in Alabama.
The integrated facility annual licensing fee is $50,000.
Alabama Cannabis Cultivator
The cultivator license allows a business to grow and harvest cannabis. Other activities include:
- Cultivating cannabis.
- Selling or transferring cannabis to a processor.
- If contracted, selling or transferring processed medical cannabis to a dispensary.
The annual licensing fee for cultivators is $40,000.
Alabama Cannabis Processor
The processor license allows for a business to manufacture cannabis products to be sold in medical dispensaries. The authorized activities include:
- Purchasing or receiving cannabis from a cultivator.
- Processing cannabis into medical products with proper packaging and labeling.
- Selling or transferring medical cannabis to a dispensary in Alabama.
Annual licensing fee for the cannabis processor license is $40,000.
Alabama Cannabis Dispensary
Businesses that want to dispense medical cannabis must acquire a dispensing license. The dispensing license allows for the following:
- Purchasing or receiving medical cannabis from a processor.
- If contracted, purchasing or receiving medical cannabis from a cultivator.
- Purchasing or receiving medical cannabis from an integrated facility.
- Dispensing and selling medical cannabis only to registered patients or caregivers.
The annual dispensary license fee is $40,000.
Alabama Secure Transporter
A secure transporter license allows the licensee to store and transport medical cannabis for a fee at the request of another licensee. It does not permit transport to registered patients or caregivers.
The secure transporter annual licensing fee is $30,000.
Alabama State Testing Laboratory
A state testing laboratory license allows the licensee to possess and test Alabama medical cannabis and cannabis products from licensed cultivation or processing facilities.
The annual licensing fee for the state testing laboratory license is $30,000.
Application Requirements
Alabama medical cannabis business application requires a variety of extensive documents, plans, and procedures. All of the following needs to be incorporated into the application in the order it appears below:
- Cover and Summary Sheets:
Complete the cover and summary sheets provided with the application form, including:
- License category.
- Applicant’s and contact person’s details (name, business address, email, phone number).
- Social Security Number or Federal Tax ID.
- Cannabis License Application Information:
- Provide comprehensive responses to each section of the application form.
- Ownership and Affiliations:
- List all individuals and entities with direct or indirect ownership interests.
- Detail all affiliated entities involved in the cannabis or related industries.
- Include information on related entities sharing ownership with the applicant.
- Individual Ownership Interests:
- Disclose any business connections (ownership or managerial roles) of the applicant and their immediate family in the cannabis industry.
- Criminal Background and Compliance History:
- Report any criminal history of owners or key individuals, including charges, outcomes, and dates.
- Disclose any denied, suspended, revoked, or non-renewed licenses or certifications, including reasons.
- Jurisdiction and Tax Compliance:
- List all cannabis-related licenses and any disciplinary actions in other jurisdictions within the last five years.
- Declare any tax disputes or delinquencies, including details of amounts and periods involved.
- Public Official Interests:
- Identify any financial interests or relationships with public officials or their families.
- Operations and Employee Estimates:
- Provide the estimated number of employees at startup and for the first five years.
- Outline a timeline for starting operations and reaching full capacity.
- Consent and Compliance Certification:
- Consent to state inspections and compliance checks.
- Verify facility locations comply with state and local regulations.
- Certify no economic interest in other licenses or applicants under the act.
- Exhibits and Supporting Documents:
- Resumes, proof of capital, business formation documents, criminal background consent.
- Local approval documents, financial statements, tax compliance plan.
- Employee handbook, policies, and procedures manual.
- Facility details (location, blueprints, site maps), business plan, product descriptions, marketing strategies, insurance plans, and standard operating procedures.
- Security plans covering alarm systems, surveillance, access controls, and emergency procedures.
- Category-Specific Information:
- Provide any additional documents specific to the license category.
- Affidavit and Fee:
- Submit an affidavit affirming the accuracy of the application.
- Pay the nonrefundable application fee electronically as instructed.
Application Selection & Post-Licensing Process
- Review of Applications: The Alabama Medical Cannabis Commission (AMCC) or independent consultants will review all submitted applications, whether original, amended, or corrected. Some reviews will be conducted “blind,” meaning the reviewers won’t know the applicant’s identity. Consultants may provide recommendations, but the final decision rests with AMCC
- Scoring and Ranking: Applications will be scored, averaged, and ranked to determine which applicants will be awarded a license.
- Communication: The AMCC may communicate with applicants to gather additional information, but applicants should not contact the AMCC otherwise.
- Background Checks and Investigations: The Commission will investigate applicants and their owners, potentially using third-party experts to conduct background checks.
- Pre-Licensure Inspections: Before issuing a license, the Commission may inspect applicants’ facilities to verify application information. The decision to inspect does not guarantee a license will or will not be issued.
Why Work with CannDelta?
Looking for a cannabis consultant? Partner with CannDelta to access a dedicated team committed to your success. With our extensive experience across North America, we have unique insights into the evolving cannabis industry. Our team is well-versed in the local regulatory landscape and has all the tools needed to help you successfully launch your cannabis business. Here’s how we can help:
Alabama Cannabis License Applications:
Confidently enter the cannabis market with our comprehensive support. We assist in preparing, submitting, and monitoring your cannabis license application to ensure it meets compliance standards with Alabama medical cannabis laws.
Business Plan Development:
Lay a strong foundation for your cannabis business. We create business plans designed to meet regulatory requirements and foster sustainable growth.
Operational Plans and Procedures:
Our team of cannabis consultants in Alabama develop detailed operational plans that align with Alabama’s medical marijuana regulations and safeguard your assets.
Zoning Support & Site Audits:
CannDelta offers zoning and location support to ensure your site is compliant and well-suited for a cannabis business, helping you pass all necessary site audits.
Site Audits and Inspections:
Stay ahead with our comprehensive site audits. We identify potential issues and provide solutions to maintain compliance and optimize operational efficiency. Our strategies will help enhance your operations, boost efficiency, and ensure you stay compliant.
Marketing Package:
Let your brand stand out! We assist in building your brand and developing marketing strategies to establish a strong presence in Alabama’s growing cannabis market.
Employee Staffing and Training Plan:
With strategic hiring and customized training programs, we equip your team to excel in the cannabis industry.
Fill out the form below to connect with our cannabis consultants in Alabama today!
Frequently Asked Questions
Is Cannabis Legal in Alabama?
Alabama medical cannabis laws authorize the possession of cannabis and cannabis products for use by qualified medical marijuana patients. Because of this, Alabama also has various medical cannabis businesses which make up the entire medical cannabis supply chain. Alabama medical cannabis businesses include integrated facility, cultivator, processor, dispensary, secure transporter, and state testing laboratory.
How Do I Open a Dispensary in Alabama?
You can open a medical dispensary in Alabama by submitting a cannabis license application when there is an open application window. The dispensary license application in Alabama requires the submission of various forms, procedures, and supporting documents that prove eligibility and compliance. The application requires security plans, proof of capital, and much more.
How Do I Apply for a Medical Cannabis License in Alabama?
You can apply for a medical cannabis license in Alabama when there is an open application window. The license application requires a variety of comprehensive documents and plans, some of which are specific to the license being applied for. The general application requires: Cover and Summary Sheets, Cannabis License Application Information, Ownership and Affiliations, Individual Ownership Interests, Criminal Background and Compliance History, Jurisdiction and Tax Compliance, Public Official Interests, Operations and Employee Estimates, Consent and Compliance Certification, Exhibits and Supporting Documents, Category-Specific Information, Affidavit and Fees.
What Types of Cannabis Licenses are Available in Alabama?
There are six different cannabis licenses in Alabama. These licenses are only available when an application window opens. The Alabama cannabis licenses are the integrated facility, cultivator, processor, dispensary, secure transporter, and state testing laboratory licenses. Alabama medical cannabis laws require that each medical cannabis business has one of these licenses to operate.
How Do I Start a Cannabis Business in Alabama?
You can start a cannabis business in Alabama by getting a cannabis business license, and building-out a compliant facility or dispensary in Alabama. This will also require that all necessary application and licensing fees are paid by the applicant. Starting a cannabis business can cost anywhere between $250,000 to over $1,000,000+ from the start of the project, to the day operations begin.
What is the Cost of a Cannabis License in Alabama?
Cannabis licenses in Alabama have a $2,500 application fee and varying licensing fees that range between $30,000 and $40,000. The cost of starting a cannabis business is much more significant than the cost of getting a license. Starting a medical cannabis business in Alabama can cost anywhere from $250,000 to $1,000,000 or more.
