Alabama Judge Orders New Temporary Restraining Order on Medical Cannabis Licensing Process

On Tuesday, Montgomery County Circuit Judge James Anderson announced he would enter another temporary restraining order on Alabama’s stalled medical cannabis licensing process. The decision comes amid ongoing legal disputes involving denied applicants and the Alabama Medical Cannabis Commission (AMCC).

Temporary Restraining Order Details

Judge Anderson directed the parties involved—companies denied licenses and the AMCC—to propose a joint order. This order would allow investigative hearings on awarded licenses to continue but would prevent the actual issuance of those licenses.

“I’m not really happy about telling somebody exactly what to do, but that’s my intent to have that into place to make sure that everybody’s rights [are protected], even the people who have gotten licenses,” Anderson stated.

While the AMCC initially objected, citing its own stay on issuing licenses, it agreed to a modified restraining order. This order permits the AMCC to proceed with investigative hearings and provides a structured process for denied applicants.

Legal Challenges and Applicants’ Rights

The new restraining order follows a request from Alabama Always, a company denied a license in all three rounds of the application process. The company argued that they could not adequately contest their denied license without also challenging the awarded licenses.

Will Somerville, attorney for Alabama Always, emphasized the need for fairness and transparency in the licensing process. “I think that if so-and-so who got a license isn’t qualified to get a license, I should be able to point that out, go to a hearing with them and challenge them and make them put up or shut up about can they satisfy the requirements of the act,” Somerville said.

History of the Licensing Process

The AMCC initially awarded licenses to produce medical cannabis in June 2023. However, these licenses were voided due to inconsistencies in scoring applications. A second attempt in August was derailed by a lawsuit alleging violations of the Open Meetings Act. The third attempt in December has also faced legal challenges, stalling the process further.

Legislative Efforts and Future Actions

Legislative attempts to address the ongoing legal issues have mostly failed this year. The only related bill sent to Governor Kay Ivey’s desk was HB 390, which shifts licensing powers for cultivators from the Department of Agriculture and Industries to the AMCC.

Other proposed bills, such as SB 276 and SB 306, aimed at increasing the maximum number of licenses and restarting the licensing process, respectively, stalled in the Senate and did not reach the floor for a vote before the session ended.

Discussion on Dispensaries and Future Proceedings

There was a brief discussion about lifting a separate restraining order on dispensaries, which would allow doctors to recommend medical cannabis to patients. However, Judge Anderson indicated that this matter would be addressed at a later date. Patrick Dungan, lawyer for Yellowhammer Medical Dispensaries, argued against lifting the stay as he has separately asked the court to review the licensing process, which is currently in the Alabama Court of Civil Appeals.

“We got something on appeal right now,” Dungan stated, highlighting the ongoing complexities and legal battles surrounding the medical cannabis licensing process in Alabama.