Alabama Medical Marijuana Business Opportunities
Start Your Alabama Medical Marijuana License Application Now
Applications Have Been Submitted…Now What?
The Alabama Medical Cannabis Commission (AMCC) accepted licenses applications in December 2022 and even awarded licenses in May 2023. However, the AMCC announced on June 20 that they will be pausing all issuance of licenses after they discovered “potential inconsistency in the tabulation of scoring data.” At this point, there is no telling when or if licenses will be awarded this year and, more importantly, when the next application window will open.
Stay Prepared, Stay Connected
Though there is little on the horizon for Alabama applicant hopefuls, it’s never too early to get yourself and team positioned for the next big opportunity. Given the monster of an application in the last Alabama round, it’ll will be paramount that you are vigilant in building an exceptional and experienced team while staying up to date with the Alabama cannabis industry.
Contact our team today to start getting prepared.
Top Consulting Services for the Alabama Medical Marijuana Market
Important Application Dates for Alabama Medical Marijuana Licensing
Timeline Overview:
In early July, the Alabama Medical Cannabis Commission released this timeline for starting the license application process and awarding medical marijuana licenses in the state.
The process began on September 1, 2022, and the first licenses will be issued in July 2023.
One Notable Difference in the Alabama Licensing Process:
Alabama's license process includes the unique step of requesting an application before the release date.
Anyone who intends to apply for a marijuana business license must have submitted a request form between September 1 and October 17, 2022.
On October 24, the State will distributed the actual license application to those who made the request by the deadline. The deadline to apply for each license type is December 30, 2022.
Key License Application Dates:
September 1, 2022 - Window opens for Request for License Application Forms
October 17, 2022 - Window closes for form requests
October 24, 2022 - Application forms will go out to out to Requesters
October 31, 2022 - Window opens to submit license applications
December 30, 2022 - Deadline to submit an application
April 25, 2023 - Public hearing dates announced, if necessary
June 12, 2023 - Initial licenses granted or denied
July 10, 2023 - Licenses issued
Rules, Regulations & Important Requirements for Alabama Medical Marijuana Licenses
A number of different medical marijuana business opportunities are available in Alabama, but not all are created equal. Contact our team to weight your risk and reward for the following license types:
- Vertical/Integrated Facility
- Dispensary (Retail)
- Cultivation (Grower)
- Processor
- Secure Transporter
- Testing Laboratory
How to Apply for a Vertical/Integrated Facility License
- Only 5 marijuana facility licenses available
- Pay a $50,000 annual fee
- Pay a business application fee of $2,500
- Applications will require numerous manuals, handbooks, SOPs – above and beyond what we typically see
- Applications must include meticulous details for facility plans, engineering plans, electrical plans, construction details, formulations, ingredients, and excipients
How to Apply for a Cultivation (Grower) License
- Only 12 marijuana cultivation licenses available
- Pay a $40,000 annual fee
- Pay a business application fee of $2,500
- Applications must include specific details for number of plants and method of cultivation
- The requirement to show proof of existing business relationships with other licensees is particularly important for Alabama cultivation applicants to show that your supply chain is already lined up with the limited number of potential partners
- 15 years of Alabama horticulture experience required
Get more cultivation application tips here.
How to Apply for a Processor License
- Only 4 marijuana processor licenses available
- Pay a $40,000 annual fee
- Pay a business application fee of $2,500
- Evidence of existing business relationships and equipment contracts are key factors for processor applications
How to Apply for a Dispensary (Retail) License
- Only 4 marijuana dispensary licenses available
- Pay a $40,000 annual fee
- Pay a business application fee of $2,500
- Securing a location is of particular importance for Alabama dispensaries given the physical regulations
- In additional to proving existing business relationships and supply chain contracts, dispensary applications must be thorough with marketing and advertising plans
- The level of specifics for contracts, media vendors, social and digital platforms is well beyond what we typically have seen in applications in other states
How to Apply for a Secure Transporter License
- No limit on number of licenses
- Pay a $30,000 annual fee
- Pay a business application fee of $2,500
- One unusual requirement for transporter applications in Alabama is documenting the routes for delivery drivers and vehicle specifics beyond those that are typically required such as providing DOT numbers and listing all license plate numbers for vehicles that will be used
How to Apply for a Testing Laboratory License
- No limit on number of licenses
- Pay a $30,000 annual fee
- Pay a business application fee of $2,500
- Evidence of existing contracts and business relationships and equipment purchase will be crucial elements for testing lab applications in Alabama
Alabama Medical Marijuana Sales Projections:
Year 1: $80 million - $90 million
Year 4: $450 million - $545 million
SOURCE: New Frontier Data 2022 US Cannabis Report
Ready To Solidify Your Marijuana Business Model?
Our team of license application consultants can guide you through how these details impact your business planning and your license application preparation and submission.
How to Get Ahead: Alabama Medical Marijuana License Applications
Important Notes from our Alabama Cannabis Consultants:
To summarize comments from one of our regulatory analysts:
Applicants in Alabama won’t be able to adequately complete the application just from reading the regulations. Additional effort and knowledge will be required to get beyond the “exceptional” level that will be required for a winning score.
- Size & Scope - This is a large application with many narratives and a significant amount of content. Do not underestimate the level expertise and effort this application will require. The sections with page limits, alone, will tally over 1,000 pages of details, descriptions, and materials,
- Operating Location - Must have a facility locked down for the approved use
- Minority Ownership - 20% of Integrated facilities must be 51% owned by a minority and 25% of other license types must be minority owned at 51% or more
- Alabama Residency - 15 years Alabama resident - be sure to clearly address and prove
- Agricultural Experience - 15 years cumulative agricultural/farmer experience in Alabama
- Bonding - $2 million bond is required
- Assets - Proof of liquid assets is stringent
- Purchasing Documentation - Each license type will need to show contracts, receipts and agreement for equipment to demonstrate that you will have all equipment read to go when licenses are awarded.
- Pass/Fail - Some sections are pass/fail basis – if you fail a section your application is disqualified or “ineligible”.
- Formatting - Do not overlook important details like page limits and font specifications that can make applications ineligible.
- Balanced Responses - Know what details to include in specific sections that will maximize points -- and, what to leave out.
- Delivery - Submission requirements are complex and specific submissions – with both online and physical elements that must be mailed or hand delivered to Montgomery.