Darren Wesley "Ato" Hall Compassion Act

ALABAMA ACT
2021-450
Alabama Medical Cannabis Law Summary Report
 03. Medical Cannabis Products

04. Qualifying Medical Conditions

05. Physician Requirements

06. Patient Qualifications

07. Physician's Certification of Patient

CONTENTS Patient Registry System
08.
09. Patient Caregiver Registration | Medical Cannabis Card

10. Insurer & Employment Protections

11. Protections/Disciplines | Unauthorized Uses
12. Cultivator Licensing & Requirements
13. Processor Licensing & Requirements
14. Dispensary Licensing & Requirements
15. Secure Transporter Licensing & Requirements
16. Laboratory Licensing & Requirements
17. Integrated Facility Licensing & Requirements

18. Licenses

19. Eligibility of Licenses

20. Minority Licenses | Advertising on Physical Structures

21. Suspension/Revocation and Transfer/Sale of Licenses

22. Commission Oversight
23. Development of Rules
24. Statewide Tracking System
25. Licensee Tracking System
26. Commission Members

27. Annual Report | Confidential Data

28. Taxation | Medical Cannabis Commission Fund

29. Consortium for Medical Cannabis Research

30. Rulemaking Provisions

37. Mandatory Deadlines

DEFINED ON PAGE 8 §20-2A-3

MEDICAL
CANNABIS
PRODUCTS
Forms Allowed:
Oral tablet, capsule, tincture
Non-sugarcoated gelatinous cube, gelatinous
rectangular cuboid, or lozenge
Gel, oil, cream, or topical preparation
Suppository
Transdermal patch
Nebulizer
Liquid or oil for administration using an inhaler

Forms NOT Allowed:

Raw plant material
Any products administered by smoking,
combustion, or vaping
Food products

03.
DEFINED ON PAGE 10 §20-2A-3

QUALIFYING
MEDICAL
CONDITIONS
Conditions:
Autism Spectrum Disorder
Cancer related cachexia, nausea or vomiting,
weight loss, chronic pain
Crohn's Disease
Depression
Epilepsy or a condition causing seizures
HIV/AIDS - related nausea or weight loss
Panic Disorder
Parkinson's Disease
Persistent nausea
Post-Traumatic Stress Disorder (PTSD)
Sickle Cell Anemia
Spasticity associated with Multiple Sclerosis or
spinal cord injury
A terminal illness
Tourette's Syndrome
Condition causing chronic or intractable pain

04.
PAGES 33-35 §20-2A-31
§20-2A-32

PHYSICIAN
REQUIREMENTS
To qualify as registered certifying physician must:
Hold active license to practice medicine
Complete 4 hour course on medical cannabis/pass
exam
Pay initial registration fee (not more than $300)
Meet additional qualifications established by
Board (State Board of Medical Examiners)

Activities registered certifying physicians

may not engage in:
Remuneration from patients, caregiver, licensee,
etc.
Remuneration from dispensary for referrals
Offer discounts for use of recommended
caregiver/dispensary
Hold economic interest in license
Serve on board or as employee of licensee
Refer patients to specific caregiver or dispensary
Advertise at dispensary
Advertise on the physician’s website, brochures,
or any other media that refers to physicians as a
“medical cannabis” or “medical marijuana”
physician or doctor.
Approved language outlined on Page 36:
Dr. _______ is qualified by the State of Alabama to
certify patients for medical cannabis use under the
Alabama Compassion Act.”

05.
PAGES 31-33 §20-2A-30

PATIENT
QUALIFICATIONS
For Patient
State resident
19 or older
Certified by registered physician
Has qualifying condition
Registered with the Commission
Has been issued a valid medical cannabis card

For Patient Under 19

State resident
Certified by registered physician
Has qualifying condition
Has caregiver who is parent or guardian

For Caregivers
State resident
Registered with Commission
Issued a medical cannabis card
At least 21 years old unless parent/guardian
May purchase and possess but not use
Commission may limit # of patients per caregiver
May receive compensation
May not purchase more than 60 daily doses or
possess more than 70

06.
PAGES 36-40 §20-2A-33

PHYSICIAN'S
CERTIFICATION
OF PATIENT
Diagnose with at least one qualifying medical condition
No later than Dec. 1, 2021, the board (State Board of
Medical Examiners) shall adopt rules for the issuance of
physician’s certifications for patients to use medical
cannabis as recommended by a registered certifying
physician. The rules shall include, but not limited to all of
the following:
1. Requirements for patient exam/establishment of
relationship
2. Requirements for relevant info in patient’s medical record
3. Requirements for patient prescription drug history
4. Requirements for review of patient registry
5. Requirements for obtaining informed written consent
- Form created by Board of Medical Examiners and
accessible on website. Shall include:
a. Classification as schedule I controlled substance
b. Approval and oversight status of cannabis by FDA
c. Current State of research on the efficacy of cannabis
d. Potential for addiction
e. Potential effect on coordination, motor skills, etc.
f. Potential side effects
g. Risks, benefits, drug interactions
h. Potential employment termination
i. De-identified info may used for research
6. Requirements for issuance/re-issuance of certification
Enter info into patient registry
Does not constitute a prescription for medical cannabis
Valid for not more than 12 months
a. Commission to specify dosage
b. May not exceed 50 mg unless:
- Review after 90 days. May increase to 75 mg
- Terminal illness over 75 mg. Driver’s license suspended
Not greater than 3% THC to minors
07.
PAGES 40-42 §20-2A-34

PATIENT
REGISTRY
SYSTEM
Integrated, Electronic Patient & Caregiver Registry
Does the following:
1. Receives and records physician certification
2. Tracks qualified patient registration and cards
3. Tracks designated caregiver registration and
cards
4. Other info on physicians, patients, caregivers,
conditions, dosage
5. Verifies card is current
6. Tracks purchases by dispensary, date, time,
amount, and type
7. If exceeds permissible limit
8. Tracks cards that are denied, revoked or
suspended
9. Interfaces with seed to sale tracking system
10. Provides access to
State and local law enforcement with probable
cause
Health care practitioners licensed to prescribe
drugs
Registered certifying physicians
Dispensaries
The State Board of Medical Examiners
Licensed pharmacists

Commission may monitor for misuse

Commission to set up system to track all aspects

by September 1, 2022

08.
PAGES 42-44 §20-2A-35

PATIENT
CAREGIVER
REGISTRATION
Certified patient/caregiver register in
registry/fee not to exceed $65
If approved, card issued
May acquire, possess, or use medical cannabis
as applicable
Lost Card – shall notify commission within 10
days. Commission est rules and fees for
replacing lost or stolen card
Commission to adopt rules/may impose civil
penalties.

MEDICAL
CANNABIS
CARD
Shall be resistant to counterfeiting and tampering.
Shall include all of the following:
Identifying info: name, address, and date of birth
Photo
Identity as patient or caregiver
Expiration date
Statement “This card is only valid in the State of
Alabama”

09.
PAGES 13-17 §20-2A-6

INSURER AND
EMPLOYER
PROTECTIONS
Law does not:
1. Require insurer to pay for product
2. Require employer to accommodate use
3. Prohibit employer from taking adverse
employment action
4. Prohibit employer from drug testing policy
5. Prohibit employer from requiring notification of
medical cannabis card
6. Prohibit federal restrictions on employment
7. Permit individual to commence cause of action
against employer
8. Require government reimbursement to patient
9. Affect workers’ compensation premium discount
10. Affect employer's right to deny workers
compensation
11. Affect condition imposed on parole, probationer
Authorized use may not disqualify a patient
from medical care
Discharge for misconduct
Welfare of child in care of medical cannabis
user
Evidence of child abuse or neglect
Best interest of the child
Background check for protective foster,
adoptive, kinship caretaker

10.
PAGES 17-19 §20-2A-7
PAGES 19-20 §20-2A-8

PROTECTIONS
DISCIPLINES
when acting pursuant to the law
Registered patient not subject to arrest if
he/she possesses no more than 70 daily doses
and has medical cannabis card
Physicians immune from civil/criminal
prosecution
Licensee and employers not subject to arrest
Hospital, medical facility, hospice not subject to
arrest
Possession/application for medical cannabis
card not probable cause
Law enforcement may search licensee with
probable cause

UNAUTHORIZED
USES
An individual may not distribute, possess,
manufacture, or use medical cannabis that has
been diverted from registered patient, caregiver,
licensed cultivator, processor, secure
transporter, dispensary, or state laboratory.
Class B Felony
Conduct subject to penalties
Undertaking any task under the influence of
cannabis, when doing so would constitute
negligence, professional malpractice,
professional misconduct, or violation of law.
Use or possession at school, childcare
facility, correctional facilities or in vehicle

11.
PAGES 78-80 §20-2A-62

CULTIVATOR
LICENSING &
REQUIREMENTS
No more than 12 Licenses
Authorizes:
1. License for cultivation only
2. Sale or transfer to processor
3. Sale or transfer of processed cannabis to
dispensary

Applicant Requirements:
1. Ability to secure and maintain cultivation
facilities
2. Ability to obtain and use inventory control and
tracking
3. Ability to commence cultivation within 60 days
4. Demonstrate the ability to destroy unused/waste
5. Demonstrate financial stability to provide testing

Comply with the following:

1. 24/7 security system, enclosed, locked
2. Individuals entering/exiting monitored by video
surveillance
3. No employees with controlled substance
felony/misdemeanor for 10 years
4. Approved by the Dept of Ag prior to acquisition of
plant material

Subject to inspection by Dept of Ag

Cultivation considered an agricultural purpose
Does not prohibit hydroponic growing of cannabis
Department of Ag to consult with Commission
when adopting rules

12.
PAGES 80-83 §20-2A-63

PROCESSOR
LICENSING &
REQUIREMENTS
No more than 4 Licenses
Authorizes:
1. Purchase or transfer of cannabis from
cultivation
2. Processing of cannabis including packaging and
labeling
3. Sale or transfer to dispensary
Medical Grade/ Good Manufacturing Practices
Department of Agriculture to enforce Good
Manufacturing Practices
May not be processed into form that is attractive
to children:
1. Cannot resemble cartoon character, fictional
character, pop culture figure
2. Cannot resemble candy
3. Cannot resemble products designed to appeal to
children
4. Cannot be shaped as human, animal or fruit
Packaging Labels:
1. Cannot be attractive to minors/ must have “Keep
out of reach of children”
2. Child-resistant, tamper evident containers
3. Must contain the following:
a. Lot and batch number
b. License identification numbers
c. Cannabinoid content and potency
d. Universal State Medical Cannabis Symbol
Commission to establish one universal flavor
Warning label or insert
Cannot contain false statement
Commission may require QR code for tracking
Commission to determine info entered into
tracking system 13.
PAGES 84-87 §20-2A-64

DISPENSARY
LICENSING &
REQUIREMENTS
No more than 4 Licenses. May operate up to 3 sites in
different counties if authorized by city/county.
Authorizes:
1. Purchase/Transfer from processor
2. Purchase/Transfer from cultivator
3. Purchase/Transfer from integrated facility
4. Dispensing/Sale only to patient or caregiver
5. Transfer to/from licensed state testing lab
Comply with the following:
1. Be located at least 1,000 ft from any school
2. Surveillance cameras/maintain records (60 day
minimum)
3. Sell only after testing
4. Enter all info into tracking system
5. Only allow dispensing by certified dispenser
6. Not allowed to use product on premise
7. Only allow registered qualified
patients/caregivers on premise
Certified Dispenser:
1. Employee trained and certified by the commission
2. Commission to establish training program
3. Certified dispenser shall comply:
a. Check patient registry to confirm medical
cannabis card
b. Enter info in patient registry
c. Any additional requirements est by
commission
A dispensary may not operate any site in the unincorporated
area of a county or in a municipality that has not adopted a
resolution or ordinance authorizing the operation.
The county commission or municipal body shall notify the
commission not more than 7 calendar days after adopting
the resolution or ordinance. (Page 48)
14.
PAGES 87-88 §20-2A-65

SECURE TRANSPORTER
LICENSING &
REQUIREMENTS
No limit on licenses
Secure Transporter License authorizes to store
and transport cannabis for a fee.
A license does not authorize transport to a
registered qualified patient or registered
caregiver.
Comply with the following:
1. No felony or controlled substance misdemeanor
convictions in last 5 years
2. Route plan and manifest entered into tracking
system and a copy carried on transporting vehicle
and presented to law enforcement upon request
3. Transported in sealed containers
4. Vehicle to bear no markings
Subject to administrative inspection by law
enforcement

15.
PAGES 88-91 §20-2A-66

LABORATORY
LICENSING &
REQUIREMENTS
Authorizes:
1. The ability to possess and test
Commission to est protocols for product testing.
The protocols for testing shall include the
following:
1. Cannabinoid content and potency
a. Total THC (THC+THCA)
b. Total CBD (CBD=CBDA)
c. THC/CBD ration (if applicable)
d. Percent of THC relative to original plant
material
2. Terpene profiles
3. Heavy metals
4. Chemical contaminations
5. Microbials
6. Mycotoxins
7. Insecticides, fungicides, herbicides, and growth
regulators
8. Residual solvents
May do the following without secure transporter:
1. Take cannabis to/from licensed facility
2. Collect random samples from licensed facilities
Testing license applicant cannot have interest
in other facilities
Licensees shall comply with:
1. Perform tests to clarify cannabis is not tainted
2. Use validated test methods
3. Perform other tests as necessary
4. Have secure lab space
5. Retain/employee staff member with relevant
advanced degree in medical or laboratory
science
16.
PAGES 91-93 §20-2A-67

INTEGRATED FACILITY
LICENSING &
REQUIREMENTS
No more than 5 licenses. Up to 5 dispensing sites in
different counties per licensee.

Authorizes:
1. Cultivation
2. Processing
3. Dispensing/Sale
4. Transporting
5. Sale/transfer to independent dispensary
Same authorizations and shall comply with all
requirements for cultivators, processors, secure
transporters, and dispensaries
Applicant shall provide:
1. Ability to secure performance bond of $2
million
2. Proof of $250,000 in liquid assets
3. Proof of financial ability to maintain for at least
2 years
Commission to confirm performance bond
A license issued under this article is a revocable
privilege granted by this state and is not a
property right. Granting a license does not create
or vest any right, title, franchise or other property
interest. A licensee shall not lease, pledge or
borrow or loan money against a license.

17.
PAGES 56-63 §20-2A-55

LICENSES
Applications beginning September 1, 2022
Include, but not limited to, the following:
1. Identifying info
name, business name, business telephone number, social
security number (or if applicable, federal tax
identification number.)
2. Business entity with ownership interest shall:
a. Identify every individual with ownership interest
All following entities:
Subsidiary, affiliate, conglomerate, parent, partnership,
limited liability company
3.Individual with ownership interest:
a. Business entity/ individual, spouse, parent, child
b. Partnership/individual, spouse, parent, child
c. Limited liability company/individual, spouse, parent,
child
4. Criminal history of all parties
5. Any previous license denials or revocations
6. Complaints for failure/delinquency in payment
7. Any public officials or family members with financial
interest
8. Anticipated number of employees/projected gross receipts
9. Financial information
10. Proof of residency (no less than 15 years)
11. Integrated/cultivator license (at least 15-year experience in
commercial horticulture or agronomic production)
Each owner, shareholder, director, board member, and
individual with an economic interest in an applicant shall
submit to a state and national criminal background check
A false or incomplete application denied
Written consent for inspection, examinations, searches, and
seizures
No interest in any other license
Nonrefundable application fee of $2,500
No more than 60 days to correct deficient application

18.
PAGES 63-69 §20-2A-56

ELIGIBILITY OF LICENSES
Before issuing any license, the commission shall provide notice and a 30-
day period during which members of the public may submit written
comments regarding an applicant. The commission may hold public hearing
if deemed necessary.
Ineligible to receive a license if:
1. Felony in last 10 years unless overturned or expunged
2. Knowingly submitted application with false info
3. Member of the commission
4. Fails to demonstrate adequate insurance coverage
5. Cannot provide proof of residency for 15 years
6. Cannot provide proof of 15 years experience
7. Other criteria as established by rules
Factors Commission may consider when granting licensees:
1. Integrity, moral character, business probity, financial ability/experience
2. Ability to maintain required financial guarantees
3. Source and total amount of applicant’s capitalization
4. Criminal history
5. Bankruptcy within last 7 years
6. Complaint regarding tax payment
7. History of noncompliance with regulatory requirements
8. Current defendant in litigation relating to business practices
9. Ability to conduct operations
10. History of business activities
11. Proposed location(s)
12. Other standards established by rules
Each applicant informed of decision within 60 days of submission
After denial of license, upon request, public investigative hearing
License issued annually. Shall renew a license if both the following
requirements are met:
1. Licensee applies to commission in timely manner and pays annual fee
2. Meets requirements outlined in the rules
After license expiration date, 60 days to apply, pay late fee
Expiration does not terminate authority to impose sanctions
Licensee consents in writing to inspections, examinations, searches and
seizures
Applicant or licensee has continuing duty to provide information requested
19.
PAGES 47-48 §20-2A-51
PAGES 77-78 §20-2A-61

MINORITY
LICENSES
1/4 of each type of license (1/5 for integrated)
awarded to minority group.
Defined as at least 51% owned or 51% of
shares are owned by members of a minority
group. Defined in this subsection as
individuals of African American, Native
American, Asian, or Hispanic descent.

ADVERTISING
ON PHYSICAL
STRUCTURE/VEHICLE
Regarding any physical structure or vehicle
owned, leased, or used by licensee, the licensee
may not:
1. Advertise medical cannabis brand names or use
graphics related to cannabis or paraphernalia on
exterior of structure or vehicle
2. Restrictions apply to any item located on real
property
3. Advertising cannot appeal to minors
4. Commission to establish advertising restrictions
and requirements

20.
PAGES 69-71 §20-2A-57
PAGES 71-72 §20-2A-58

SUSPENSION/

REVOCATION
OF LICENSE
Commission may deny, suspend, revoke, or
restrict license:
1. Fails to comply with rules and law
2. No longer meets eligibility
3. Fails to provide requested information
Civil fines up to $5000 individual/ $25,000
licensee (or amount equal to the daily gross
receipts, whichever is greater) for violation of
the article, rules or order of the Commission
Commission shall comply with hearing
procedures outlined in the Administrative
Procedure Act
Aggrieved party given hearing
Investigative and contested case hearings
30 days to appeal to circuit court

TRANSFER OR
SALE LICENSE
Each license is exclusive to the licensee. A
license may not be sold or transferred without
application and approval by the Commission.
Transfer application fee of $2,500
Transfer or sale w/o approval of Commission
is grounds for suspension or revocation of
license

21.
PAGES 49-51 §20-2A-52
PAGE 47 §20-2A-51
COMMISSION
OVERSIGHT
Commission given power to oversee all facilities
(exception: cultivation – overseen by Dept. of Agriculture)
Investigate applicants
Investigate individual employees of licensee
Enter premise:
a. Inspect and examine
b. Inspect, examine, and audit records of
licensee
c. Inspect person or personal effects
d. Investigate alleges violations
Take appropriate disciplinary action
Require records kept on premise
Eject individual from premise for violation
Conduct periodic audits
Take disciplinary action to enforce rules
Commission/Dept. of Agriculture to adopt rules
by September 1, 2022
May enter MOU with law enforcement
Cooperation/assistance from ALEA regarding
background checks
Assist any prosecuting agency with
investigation
Nothing shall affect the authority of AL
Department of Environmental Management to
administer or enforce any existing law in their
jurisdiction
Commission has authority to determine the number
of licenses based on:
Population of the state
Number of registered qualified patients
Market demand
Unemployment rate
Need for agricultural/business opportunities
Access to healthcare
Infrastructure
Other factors 22.
PAGES 51-54 §20-2A-53

DEVELOPMENT
OF RULES
Commission/ Dept. of Agriculture to Adopt Rules

Shall adopt rules as necessary to implement,

administer, and enforce this article in a timely
manner that allows person to begin applying for
a license by September 1, 2022.

Rules must ensure safety, security, and integrity:

Establish operating standards
Minimum $2 million in liability and casualty
insurance
Establish qualifications and restrictions
Establish on-site inspection process
Establish security standards
Establish testing standards
Provide for levy and collection of fines for
violations
Establish license fees not less than $10,000 or
more than $50,000
Establish quality control standards
Establish chain of custody standards
Establish waste product storage and disposal
standards
Establish transportation standards
Establish storage procedures
Establish packaging and labeling standards
Establish marketing/advertising restrictions
Establish license renewal/revocation standards

23.
PAGES 54-56 §20-2A-54

STATEWIDE
TRACKING SYSTEM
Seed-to-Sale

Systems minimum requirement:

1. Retention of sale/transfer data
2. Seed-to-sale tracking
3. Integration of third-party inventory control

Commission to seek bids for tracking system

1. Cost of service/ability to meet requirements
2. Ability to prevent fraud/abuse
3. Non-disclosure requirement of person awarded
contract
4. Must deliver in 180 days
Contract can be terminated for violation
Confidential and exempt from Open Records Act

24.
PAGES 74-77 §20-2A-60

LICENSEE
TRACKING SYSTEM
Third-party inventory control interfacing with
statewide tracking
Track all plants, products, purchases, waste,
transfers
Track lot and batch info
Track all products
Track plant, batch, product destruction
Track transportation
Batch recall tracking
a. Sold product
b. Product inventory available for sale
c. .Product in process of transfer
d. Product being processed
e. Postharvest raw products
Reporting and tracking loss
Reporting and tracking inventory discrepancies
Reporting and tracking adverse patient response
Reporting and tracking sales and refunds
Receiving testing results electronically
Identifying altered test results
Access to commission and state agencies
Licensee access only to needed info
Analytics to commission:
Total daily sales
Total plants in production
Total plants destroyed
Total inventory adjustments
If the statewide seed-to-sale tracking system is
capable of allowing a licensee to access or enter
info into the system without use of a third-party
inventory control or tracking system, a licensee is
not required to adopt and use third-party
inventory control and tracking system. (Page 77)
25.
PAGES 23-29 §20-2A-20
PAGES 29-30 §20-2A-21

COMMISSION
MEMBERS
Initial members appointed by July 1, 2021
3 members appointed by Governor
3 members appointed by Lt. Governor
2 members appointed by Senate Pro Tempore
2 members appointed by Speaker of the House
1 member appointed by Commissioner of Ag and
Industries
1 member appointed by State Heath Officer
1 nonvoting advisory member appointed by the Attorney
General
1 nonvoting advisory member appointed by Secretary of
ALEA
Members to be confirmed by Senate
May not have financial interest or hold any public office
30 years of age/ resident of AL for 5 years/diversity
4 year terms/ 2 year terms
Elect chair/vice-chair
$500 per diem/ actual travel expenses
Minimum 6 meetings per year
May hire Director/Assistant Director
Members not subject to civil liability
Service of process to Director
Shall retain legal counsel
Employees of Commission not subject to Merit System Act
Commission subject to Administrative Procedure Act
Prohibitions:
Commission/family member cannot have financial or
other interest
Commission/family cannot accepts gifts
Employment termination/forfeit pay or compensation
Family member = spouse, child, parent, or sibling
including by marriage

26.
PAGES 20-21 §20-2A-9
PAGE 13 §20-2A-5
ANNUAL
REPORT
Commission reports to Legislature annually.
First report due January 1, 2022.
Report shall include:
1. Number of Patients
2. Qualifying medical conditions
3. Comments from health care providers
4. Revenues and expenses of card issuance and
licensing
5. Development in other states
6. Relevant scientific research
7. Applicable tax revenue
8. Commission’s operating budget
9. Number of applicants for each license type/
diversity
10. Info on affects to public
11. Suggested legislative changes:
a. Veterans, women, minorities not
discriminated against
b. To reflect changes in federal law
c. Changes based on research

CONFIDENTIAL
DATA
All data related to the implementation must be
maintained in a secure system developed or
procured by the Commission
Includes:
Application forms
Licensing info
Physician certification
Registration of patients/caregivers
Compliance
Status of cannabis research programs
Data may not be sold, patient info shall remain
confidential 27.
PAGES 94-96 SECTION 2
PAGES 21-23 §20-2A-10

TAXATION
Sales tax of 9% commencing January 1, 2022
Annual Privilege Tax
Beginning Jan 1, 2022 on net worth
Computed as other annual privilege taxes
Due with federal income tax return
Dept. of Revenue may grant extension
Forms prescribed by rule of the Dept. of
Revenue
Dept. of Revenue to adopt rules

MEDICAL CANNABIS
COMMISSION FUND
Includes the following:
1. Tax proceeds
2. License fees, civil penalties, other fees or
charges
3. Monies appropriated by Legislature
Beginning Oct. 1, 2025 excess funds over actual
expenses distributed:
60% to General Fund
30% to Medical Cannabis Research Fund
10% remains in Commission's Fund

28.
PAGES 96-98 SECTION 4

CONSORTIUM FOR
MEDICAL CANNABIS
RESEARCH
Purpose of awarding grants to entities for research
relating to cannabis and medical cannabis.
Initial member institutions:
HudsonAlpha Institute for Biotechnology
Southern Research Institute
Public and private four-year colleges within
the state designated not later than January
1, 2022.
Members maybe increased or decreased
Board of Directors
President of HudsonAlpha Institute for
Biotechnology
Chief Executive Officer of Southern Research
Institute
Presidents of each member college
Purpose of consortium:
Award grants
Monitor research
Encourage dialog among interested entities
Effectively disseminate research findings
and outcomes
By Feb 15 of each year, provide report to
Gov., President Pro Tem of Senate, Speaker
of the House, and Attorney General

29.
 Rulemaking Provisions
LIST OF SECTIONS PROVIDING FOR
ADMINISTRATIVE RULEMAKING

ARTICLE 1:
DEFINITIONS/MEDICAL CANNABIS
ALA. CODE SECTION: 20-2A-3(14)
MEDICAL CANNABIS. A medical grade product in the form of any of the
following, as determined by rule by the commission, that contains a derivative
of cannabis for medical use by a registered qualified patient

ARTICLE 2:
COMMISSION DUTIES
ALA. CODE SECTION: 20-2A-22
The Alabama Medical Cannabis Commission shall implement this chapter by
making medical cannabis derived from cannabis grown in Alabama available to
registered qualified patients and by licensing facilities that process, transport,
test, or dispense medical cannabis. (b) The commission shall administer and
enforce this chapter and all rules adopted pursuant to this chapter.

ARTICLE 3:
PHYSICIAN CERTIFICATION, PATIENT REGISTRY, CARDS

ALA. CODE SECTION: 20-2A-30(B)

(3) The commission, by rule, may limit the number of registered qualified
patients a registered caregiver may have under his or her care.
ALA. CODE SECTION: 20-2A-31(A) | PHYSICIAN REQUIREMENTS
In addition to the requirements listed in this section for a physician to qualify as
a registered certifying physician, the physician must;
(4) Meet any additional qualifications established by rule by the board. (Board of
Medical Examiners)

ALA. CODE SECTION: 20-2A-31(C) | PHYSICIAN REQUIREMENTS

(c) The board, by rule, may establish requirements for registered certifying
physicians to remain qualified, grounds for revoking registration, and a process
for renewing registration of qualified certifying physicians, including payment
of an annual registration renewal fee, not to exceed $200.

30.
 ALA. CODE SECTION: 20-2A-33(B) | PHYSICIAN CERTIFICATION OF PATIENT
(b) Not later than December 1, 2021, the board shall adopt rules for the
issuance of physician certifications for patients to use medical cannabis as
recommended by a registered certifying physician. The rules shall include, but
not be limited to, all of the following:
1. Requirements for patient examination and the establishment of a physician-
patient relationship.
2. Requirements for relevant information to be included in the patient's
medical record.
3. Requirements for review of the patient's controlled drug prescription history
in the controlled substance prescription database established under Article
10 of Chapter 2 of this title.
4. Requirements for review of the patient registry.
5. Requirements for obtaining the voluntary and informed written consent from
the patient to use medical cannabis, or from the patient's designated
caregiver to assist the patient with the use of medical cannabis, on a form
created by the board and accessible at no charge on its website. (Form
details can be found on page 7 of this report.)
6. Requirements for the issuance and reissuance of physician certifications by
certifying physicians, the permissible length of duration of a physician
certification, and the process and circumstances under which a physician
certification may be deactivated, as well as stipulations for timely updating
of physician certifications on the patient registry.

ALA. CODE SECTION: 20-2A-33(C) | ENTERING PATIENT INFO INTO REGISTRY

(c) At the time of physician certification, the registered certifying physician
shall enter electronically in the patient registry, in a manner determined by
rule by the board, relevant information necessary to appropriately identify the
patient; the respective qualifying medical condition or conditions of the
patient; the daily dosage and type of medical cannabis recommended for
medical use; and any other information the board, by rule, deems relevant.

ALA. CODE SECTION: 20-2A-33(F) | MAXIMUM DAILY DOSAGE

(f) The commission, by rule, shall specify, by form and tetrahydrocannabinol
content, a maximum daily dosage of medical cannabis that may be
recommended by a registered certifying physician for a particular qualifying
medical condition, which may not exceed the limits set forth in subdivision.
(Dosage details can be found on page 7 of this report.)

31.
 ALA. CODE SECTION: 20-2A-34(A)(1) | PATIENT REGISTRY SYSTEM
(d) Includes in the patient registry database for each qualified patient
registrant the name of the qualified patient and the patient's designated
caregiver, if applicable, the patient's registered certifying physician, the
respective qualifying medical condition or conditions, the recommended daily
dosage and type of medical cannabis, and any other information the
commission, by rule, deems relevant.

ALA. CODE SECTION: 20-2A-35 | PATIENT/CAREGIVER REGISTRATION

The commission shall develop the application and renewal process for patient
and designated caregiver registration, that shall include, but not be limited to,
an application form, relevant information that must be included on the form,
any additional requirements for eligibility the commission deems necessary,
and an application fee not to exceed $65.
The commission shall determine the criteria for revoking or suspending a
medical cannabis card.
The expiration date, as determined by commission rule.
The commission shall adopt rules to implement this section and may impose
civil penalties for violations of this section.

ARTICLE 4:
CULTIVATION, PROCESSING, AND DISPENSING

ALA. CODE SECTION: 20-2A-52(B) | COMMISSION/ADAI OVERSIGHT

(b) The commission and department (Department of Agriculture) shall adopt
rules addressing the frequency of conducting periodic inspections and audits of
respective licensees.
ALA. CODE SECTION: 20-2A-53(A) | COMMISSION/ADAI OVERSIGHT
(a) The commission, and the department with regard to cultivation, shall adopt
rules as necessary to implement, administer, and enforce this article in a timely
manner that allows persons to begin applying for a license by September 1,
2022. Rules must ensure safety, security, and integrity of the operation of
medical cannabis facilities, that do all of the following for each category of
license:
1. Establish operating standards to ensure the health, safety, and security of
the public and the integrity of medical cannabis facility operations.
2. Require a minimum of $2,000,000 of liability and casualty insurance and
establish minimum levels of other financial guarantees, if appropriate, that
licensees must maintain.
3. Establish qualifications and restrictions for individuals participating in or
involved with operating medical cannabis facilities.
32.
 1.
4. Establish an on-site inspection process to be conducted at each facility of an
applicant prior to being issued a license, as well as ongoing on-site
inspections of the facilities of a licensee.
2.
5.Establish standards or requirements to ensure cannabis and medical
cannabis remains secure at all times, including, but not limited to,
requirements that all facilities of licensees remain securely enclosed and
locked as appropriate.
3.
6. Establish testing standards, procedures, and requirements for medical
cannabis sold at dispensaries.
4.
7. Provide for the levy and collection of fines for a violation of this article or
rules.
5.
8. Establish annual license fees for each type of license, provided the fee shall
be not less than $10,000 and not more than$50,000, depending on the
category of license.
6.
9. Establish quality control standards, procedures, and requirements.
7. Establish chain of custody standards, procedures, and requirements.
10.
8. Establish standards, procedures, and requirements for waste product storage
11.
and disposal and chemical storage.
12.
9. Establish standards, procedures, and requirements for securely and safely
transporting medical cannabis between facilities.
10.
13. Establish standards, procedures, and requirements for the storage of
cannabis and medical cannabis.
11.
14. Establish packaging and labeling standards, procedures, and requirements
for medical cannabis sold at dispensaries.
12.
15. Establish marketing and advertising restrictions for medical cannabis
products and medical cannabis facilities.
13.
16. Establish standards and procedures for the renewal, revocation, suspension,
and nonrenewal of licenses.

ALA. CODE SECTION: 20-2A-53(B) | UNIVERSAL STATE SYMBOL

(b) The commission, by rule, shall design a universal state symbol that is a color
image and made available to licensed processors to include on all packages of
medical cannabis

ALA. CODE SECTION: 20-2A-54 | STATEWIDE SEED-TO-SALE TRACKING SYSTEM

The commission shall establish a statewide seed-to-sale tracking system for
use as an integrated cannabis and medical cannabis tracking, inventory, and
verification system.
This section does not specifically provide for promulgation of rules, but it only
provides minimum requirements for the seed-to-sale tracking system, the
Commission may adopt more specific rules. (Current requirements outlined on
page 24 of this report.)
33.
 ALA. CODE SECTION: 20-2A-55(A) | LICENSE APPLICATIONS
(a) The application shall be made under oath on a form provided by the
commission and shall contain information as prescribed by the commission,
including, but not limited to, all of the following: (License application
requirements and eligibility are detailed on pages 18-19 of this report.)

ALA. CODE SECTION: 20-2A-55(G) | DIFICIENT APPLICATION

(g) If the commission identifies a deficiency in an application, the commission
shall provide the applicant with a reasonable period of time, as determined by
the commission by rule but not more than 60 days, to correct the deficiency.

ALA. CODE SECTION: 20-2A-56(B) | INELIGIBILITY OF LICENSES

(b) An applicant is ineligible to receive a license if any of the following
circumstances exist:
(#s 1-6 are outlined on page 19 of this report)
(7) The applicant fails to meet other criteria established by rule.

ALA. CODE SECTION: 20-2A-56(C) | FACTORS CONSIDERED IN GRANTING LICENSEES

(c) In determining whether to grant a license to an applicant, the commission
may consider all of the following:
(#s 1-11 are outlined on page 19 of this report)
(12) Whether the applicant meets other standards or requirements established
under this article or by rules applicable to the license category.

ALA. CODE SECTION: 20-2A-56(E) | LICENSE FEE

(e) Before issuing a license, the applicant shall pay the annual license fee, as
established by the commission.
($10,000-$50,000 depending on license category per §20-2A-53(A)(8))

ALA. CODE SECTION: 20-2A-56(F) | LICENSE RENEWAL

(f) A license shall be issued annually. Except as otherwise provided in this
article, the commission shall renew a license if both of the following
requirements are met:
(1) The licensee applies to the commission in a timely manner on a renewal
form provided by the commission that requires information prescribed in rules
and pays the annual license fee.
(2) The licensee meets the requirements of this article and any other renewal
requirements set forth in the rules.

34.
 ALA. CODE SECTION: 20-2A-56(G) | LATE LICENSE RENEWAL
(g) If a license renewal application is not submitted by the license expiration
date, the license may be renewed within 60 days after its expiration date upon
application, payment of the annual license fee, and satisfaction of any renewal
requirement and late fee set forth in rules. The licensee may continue to
operate during the 60 days after the license expiration date if the license is
renewed by the end of the 60-day period.

ALA. CODE SECTION: 20-2A-59(C) | ENTRY OF INFO INTO TRACKING SYSTEM

(c) Each licensee shall enter all transactions, current inventory, and other
information into the statewide seed-to-sale tracking system in accordance with
rules adopted by the commission and the Department of Agriculture and
Industries.

ALA. CODE SECTION: 20-2A-60 | LICENSEE TRACKING SYSTEM

(b) A licensee shall adopt and use a third-party inventory control and tracking
system that is capable of interfacing with the statewide seed-to-sale tracking
system to allow the licensee to enter or access information in the statewide
seed-to-sale tracking system as required under this article and rules. The third-
party inventory control and tracking system must have all of the following
capabilities necessary for the licensee to comply with the requirements
applicable to the licensee's license type:
(Licensee tracking system requirements detailed on page 25 of this report)

ALA. CODE SECTION: 20-2A-61 | ADVERTISING ON PHYSICAL STRUCTURES OR VEHICLES

(Advertising on Physical Structures/Vehicles is detailed on page 20 of this
report)
(c) The commission shall adopt rules that establish restrictions and
requirements for advertising, including signage, that may include limiting the
media or forums where advertising may occur.

ALA. CODE SECTION: 20-2A-62 | CULTIVATOR LICENSES

(Cultivator license info detailed on page 12 of this report)
(b) The commission shall consult with the Department of Agriculture and
Industries when determining the number of cultivator licenses to issue,
provided the commission shall issue no more than 12 cultivator licenses.
(c) Demonstrate the ability to destroy unused or waste cannabis in accordance
with rules adopted by the Department of Agriculture and Industries.
(d) A licensed cultivator shall comply with all of the following, in accordance
with rules adopted by the Department of Agriculture and Industries: (P.12)
(h) The Department of Agriculture and Industries shall consult with the
commission when adopting rules pursuant to this article.
35.
 ALA. CODE SECTION: 20-2A-63 | PROCESSOR LICENSES
(Processor license info detailed on page 13 of this report)
(i) The commission may require the implementation of a digital image such as a
QR Code for purposes of tracking medical cannabis products. The digital image
must interface with the statewide seed-to-sale tracking system.
(j) The commission shall determine what information from the label shall be
entered into the statewide seed-to-sale tracking system.

ALA. CODE SECTION: 20-2A-64 | DISPENSARY LICENSES

(Dispensary license info detailed on page 14 of this report)
(e)(2) The commission shall establish and administer a training program for
dispensers that addresses proper dispensing procedures, including the
requirements of this subsection, and other topics relating to public health and
safety and preventing abuse and diversion of medical cannabis. The commission
shall certify trained dispensers and may require, as a qualification to remain
certified, periodic training.
(3) A certified dispensary shall comply with all of the following:
(requirements (a)-(b) detailed on page 14 of this report)
(c) Comply with any additional requirements established by the commission by
rule.
(4) The commission shall adopt rules to implement this subsection.

ALA. CODE SECTION: 20-2A-66 | STATE TESTING LAB

(Laboratory license info detailed on page 16 of this report)
(b) The commission, by rule, shall establish protocols for product testing by a
licensed state testing laboratory, which shall be conducted during cultivation,
processing, and dispensing to ensure that all dispensed medical cannabis is
consistently high grade and maintains a consistency with less than 0.5 percent
variability among batches of the same product.
(f)(3) Perform tests that determine whether cannabis and medical cannabis
comply with the standards the commission establishes for microbial and
mycotoxin contents.
(f)(4) Perform other tests necessary to determine compliance with any other
good manufacturing practices as prescribed in rules.

ALA. CODE SECTION: 20-2A-67 | INTEGRATED FACILITIES

(Integrated facility license info detailed on page 17 of this report)
There are no rulemaking provisions specific to this section, however, the
specific rulemaking provisions applicable to cultivators, processors, secure
transporters, and dispensaries apply per §20-2A-67(c)

36.
 December 1, 2021
The Board of Medical Examiners shall
adopt rules for the issuance of physician
certifications for patients to use medical
cannabis as recommended by a
January 1, 2022
registered certifying physician. The Commission shall provide annual
MANDTORY DEADLINES SET

written reports to the Legislature with

the first due no later than January 1,
2022, tracking implementation of this
chapter.
FORTH BY THE ACT

Commencing
January 1, 2022 January 1, 2022
There shall be established the Consortium
9% tax on gross proceeds of medical
for Medical Cannabis Research for the
cannabis
purpose of awarding grants to entities for
Annual privilege tax on every person
research relating to cannabis and medical
doing business under the Act.
cannabis.

By February 15 of each year, provide

report to Gov., Pro Tem of Senate, Speaker
of the House, and Attorney General

September 1, 2022
The Commission and Dept. of
Agriculture shall adopt rules as
necessary to implement, administer,
and enforce the Act.
The Commission shall establish and
administer an integrated, electronic
patient and caregiver registry.
The Commission shall establish a
statewide seed-to-sale tracking
system.
A person may apply to the
Commission for a license for an
integrated facility or for a license in
one of the following independent
Beginning
categories: cultivator, processor,
secure transporter, state testing
laboratory, or dispensary.
October 1, 2025
Any funds in the Medical Cannabis
Commission Fund in excess of actual
expenses from the previous fiscal year
shall be distributed to the General Fund
and Medical Cannabis Research Fund.
37.
Alabama Act 2021-450
Summary Report

NOVEMBER 2021