Alabama Marijuana Business Licenses
Status: In Alabama, qualified patients may obtain access to medical cannabis. State licensed businesses may cultivate, process, dispense, and/or transport medical cannabis.
| CBD Program | Medical Program | Recreational Program | Are Applications Open? |
| Legal | Legal | Not legal | closed |
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Number of Alabama Marijuana Business Licenses Licenses Available
| Dispensaries | Cultivation | Manufacturing/Processing | Transportation |
| 4 | 4 | 4 | 0 |
You can read the full text of the Alabama Marijuana Business Licenses law at: Alabama State Legislature
Alabama Proposed Medical Cannabis Program License Guidelines
The commission will issue the following licenses through an application process open to the general public:
A Dispensary License, which is a license to an entity authorized to dispense and sell medical cannabis at dispensing sites to registered qualified patients and registered caregivers. The state will license no more than four dispensaries, which may have up to three locations in different counties than other sites.
A Cultivator License, which is a license to grow cannabis. The state will license at least four cultivators.
A Processor License, which is a license to purchase cannabis from a cultivator and extract derivatives from the cannabis to produce a medical cannabis product or products for sale and transfer in packaged and labeled form to a dispensing site. The state will license no more than four processors.
A Secure Transporter License, which is a license to transport cannabis or medical cannabis from one licensed facility or site to another licensed facility or site
A State Testing Laboratory License, which is a license to test cannabis and medical cannabis to ensure the product meets safety qualifications required under the Act
An Integrated Facility License, which is a license to perform the functions of a cultivator, processor, secure transporter, and dispensary. The state will license up to five integrated facilities.
Application Fees: A $2,500 nonrefundable application fee shall be paid at the time of filing to defray the costs associated with the background investigation conducted by the commission.
License Fees: The commission shall establish license fees for each type of license, provided the fee shall be not less than ten thousand dollars ($10,000) and not more than fifty thousand dollars ($50,000).
Application Dates: Applications for cannabis business licenses must be accepted starting September 1, 2022.
Alabama Limited Medical Marijuana (CBD) Program License Guidelines
HB61 (Leni’s Law)
- authorizes the use of low THC CBD oil for the act of limited conditions that produce seizures, but is not intended as an endorsement or authorization of medical marijuana.
- CBD oil must have less than 3% measurable THC
- Individuals are only exempt from prosecution of marijuana laws if they are the patient that has been prescribed CBD oil, or the parent of a minor patient.
- Use of CBD oil as prescribed may not be used as a cause for child endangerment cases
- health insurance is not mandated to pay for such treatments
The state of Alabama currently is not accepting applications for marijuana businesses. To get ahead of the game and prepare for your marijuana business, review the resources below.
RECOMMENDED ALABAMA MARIJUANA BUSINESS PLANS FOR MARIJUANA BUSINESS APPLICATION:
- Alabama Application Guide & Checklist
- Business & Operations Plan Template
- Cultivation Plan Template
- Manufacturing/Processing Plan Template
- Environmental Plan Template
- Financial Plan Template
- Fire Safety Plan Template
- Inventory Control Plan Template
- Patient Education Plan Template
- Patient Recordkeeping Plan Template
- Product Safety Plan Template
- Security Plan Template
- Staffing Plan Template
- Suitability of Proposed Plan Template
- Transportation Plan Template
The History of Alabama Marijuana Business Licenses Marijuana
Alabama legalized a very limited medical marijuana bill on April 2, 2014 when Gov. Robert Bentley signed SB 174 (Carly’s Law) into law. The law only protects a small percentage of patients suffering from a debilitating epileptic condition for the use of CBD obtained by the University of Alabama. The law also does not allow for home cultivation or a state-regulated dispensary system.
In 2015, the Medical Marijuana Patient Safe Access Act, failed to reach the Senate floor.
In 2016, Leni’s Law expanded on Carly’s Law, allowing for a wider range of use for CBD oil, and for 3% of less THC to be present in the oil.
In June 2019, Governor Kay Ivey signed Senate Bill 236 into law to create a medical marijuana commission that will make recommendations to the Alabama Legislature next year on how to implement a medical cannabis program. The measure was a compromise after an original medical marijuana proposal hit opposition in the state House of Representatives. The Medical Cannabis Study Commission will hold a minimum of three public hearings before reporting findings to the legislature in December 2019.
On February 11, 2020, Sen. Tim Melson introduced a bill, Senate Bill 165, or the Compassion Act, that would authorize medical marijuana in Alabama, following months of study by a commission composed of doctors, legislators and lawyers. If adopted, Alabama would become the 34th state to authorize the use of marijuana to treat medical conditions. Melson sponsored a medical marijuana bill last year that passed the Senate but failed in the House.
On March 11, 2020, SB 165 was approved by the Senate. The bill went to the House for consideration, but amid the coronavirus pandemic, a vote was not held before the state’s legislative session ended on May 18, 2020.
In 2021, Sen. Tim Melson re-introduced the medical cannabis bill as Senate Bill 46. On May 6, 2021, the bill successfully passed out of Alabama legislature and was sent to the governor for a signature into law. The governor signed the bill on May 17, 2021. The new law prohibits raw cannabis, smoking, vaping and candy or baked good products. Patients instead are allowed to purchase capsules, lozenges, oils, suppositories and topical patches. A new Alabama Medical Cannabis Commission will be formed to regulate the program.