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Alabama Appellate Court Appears Poised to Deliver Big Win for Cannabis Commission
Wednesday, February 12, 2025

Longtime readers of Budding Trends (and there are dozens of you) know that I have been saying over and over recently that – as counterintuitive as it may sound – the fastest way to get Alabama’s medical cannabis program launched is through the court system.

At times did it feel like I was trying to speak it into existence in the face of facts on the ground? Look, I majored in history not psychology. But whether I was well-informed, clairvoyant, or just lucky, it appears as though we had our first breakthrough in Alabama’s medical cannabis program, and it came courtesy of the court system.

What Happened?

Yesterday the Alabama Court of Civil Appeals heard arguments in an appeal from the Montgomery County Circuit Court hearing all of the medical cannabis cases. Specifically, the court focused its inquiry on two questions: (1) does the circuit court have jurisdiction to entertain the claims of Alabama Always, an applicant for an integrated facility license who has not been awarded a license, against the Alabama Medical Cannabis Commission, and (2) does the temporary restraining order halt the AMCC from taking any steps towards issuing integrated facility licenses?

Over the course of three hours, it became apparent to the author that the court was prepared to rule in the AMCC’s favor on both issues. I got the sense that the panel believed disappointed applicants should have exhausted their administrative options – including, most importantly here, participating in the investigative hearing process – before resorting to litigation. It also seemed clear that the panel believed the existing TRO was unnecessarily broad and should be modified to, at a minimum, call for the AMCC to conduct investigative hearings and then perhaps refrain from actually issuing the licenses until further word from the court.

What’s Next?

As always, what happened is only part of the analysis, and often the harder question is what happens next. I believe the tone and substance of the questions from the court very well may impact the next steps.

Less than two hours after the oral argument in the Alabama Court of Civil Appeals, the circuit court had a status conference to discuss steps moving forward in the various medical marijuana cases currently pending. The court set several briefing schedules and appears to be taking steps to move the cases along. It will be interesting to see whether the circuit court, which has not been moving with all deliberate speed, will now begin to move more quickly with a decision from the appeals court looming.

Then, there’s the ole “legislative fix.” As I wrote previously:

Looking around and finding themselves in this maze, many have turned to the Alabama Legislature for help. This is nothing new to those who have been working on medical cannabis since it was enacted into law in 2021. Like clockwork, every year when a new legislative session approaches, certain dissatisfied applicants use the specter of a “legislative fix” in an effort to bring other stakeholders to the table to find a compromise. The problem with finding a compromise under the existing law is that limited licensing is a zero-sum proposition and there is very little chance all applicants will agree to the same rules.

True to form, and as we wrote earlier this week, Alabama Senate Bill 72 dropped last week. It would, among other things, (1) expand the total number of integrated licenses from five to seven; (2) shift the authority of issuing licenses from the AMCC to a consultant; and (3) shield the decision from any judicial review. At the time, I wrote that “this bill has little chance of becoming law as drafted.” Having now heard oral arguments and believing that the court may expedite this process, I think the chances are even lower.

It’s faint, but I believe that just might be light at the end of this long and winding tunnel. It’s impossible to know when the court will hand down its ruling in this case. Prognosticators predict a ruling in late March or early May. As always, we’ll stay on top of this so you don’t have to.

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