What if I told you that you could get a license to test medical cannabis in Alabama this July? Now is that something you might be interested in?

Lost amidst the torrent of confusing messages and general circus surrounding Alabama’s medical cannabis rollout is that the Alabama Medical Cannabis Commission has actually issued licenses to a number of would-be cannabis operators. More than a half dozen cultivators are licensed to grow medical cannabis, and four processors are licensed to process medical cannabis. These companies need testing facilities to analyze their products, and there is currently only one testing facility licensed to do so.

One testing facility is simply not enough to push out the amount of cannabis that will be necessary to operate a statewide medical cannabis program. With a single facility, there will be a huge logjam and a substantial delay in getting medicine to qualifying patients. The AMCC acknowledged as much the day it issued that license and has reiterated that point on multiple occasions since – hence the announcement last week that the AMCC will be offering additional testing licenses in the coming weeks.

Is It Advisable to Pursue a Medical Cannabis Testing License?

First, a word of caution. Because of court injunctions and administrative stays in issuing licenses, no one is currently licensed to dispense medical cannabis. Nor are there any patients licensed to obtain medical cannabis. Without patients and dispensaries, there is not a substantial market for testing medical cannabis. Therefore, anyone interested in pursuing a testing license should do so only after determining they are willing to take the calculated risk that dispensaries will eventually be opened and patients qualified to purchase medical cannabis.

Personally, as I wrote recently, I believe that the court system will soon provide a pathway for exactly that. But I don’t have a crystal ball and anyone considering this path has to determine their own risk tolerance.

I’m a lawyer, so I can tell you about regulations and some of the politics. I can’t tell you it’s going to be a big moneymaker. I do think the first/second mover status could be helpful, but there is no cap on the number of medical cannabis testing licenses under Alabama law, and there could be increased competition for what ultimately will be a limited supply of medical cannabis to be tested.

What Does a Testing License Allow You to Do?

A state testing laboratory license authorizes the licensee to possess and test cannabis and medical cannabis products cultivated or processed at licensed facilities.

There is an annual license fee of $30,000 for medical testing facilities.

The AMCC conveniently provided the following timeline on its website:

2025 State Testing Laboratory License Offering Timeline