Alabama Medical Cannabis Commission Chair Rex Vaughn talks to an AMCC lawyer during a meeting in Montgomery on Dec. 12, 2023. The Alabama Court of Civil Appeals on Friday morning overturned a lower court’s ruling blocking the medical cannabis licensing, ruling the court lacked jurisdiction.(Alander Rocha/Alabama Reflector)
The Alabama Court of Civil Appeals on Friday overturned a temporary restraining order (TRO) that had blocked the Alabama Medical Cannabis Commission (AMCC) from issuing business licenses for medical marijuana production for nearly two years.
In a unanimous ruling, the justices rule that the Montgomery County Circuit Court lacked jurisdiction when it issued a stay in favor of Alabama Always, a company seeking a medical cannabis license, and dismissed the case, directing the lower court to vacate the TRO, according to the court order.
“Unless and until the AMCC and the commissioners are allowed to proceed, it remains speculative as to whether … they will impair or threaten to impair the procedural right of Alabama Always to a contested-case hearing,” the opinion said.
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The decision supports the AMCC’s position that its licensing decisions are not final until an investigative hearing process is completed. According to the commission, a final order will be issued once the hearings conclude, and it could then be subject to a lawsuit.
“On behalf of the many long-suffering patients in Alabama who have waited far too long for access to the benefits of medical cannabis products, we are pleased with today’s decision,” said AMCC Director John McMillan in a statement. “We are hopeful that this decision will remove the obstacles that have prevented the Commission from completing the licensing process and doing the work the law charged it to do.”
Alabama Always sought a license to run an integrated facility — one that grows, processes and distributes marijuana — but was denied three times. The firm filed multiple lawsuits challenging the commission’s procedures.
Will Somerville, an attorney representing the company, said in a phone interview Friday morning that the appellate court’s ruling was a victory despite the dismissal.
“They really gave us what we want,” Somerville said. “We’ve been asking for an order requiring the commission to follow the Administrative Procedure Act (APA), and the court just said that the provisions of the APA apply here, whether the commission has adopted rules compliant with them or not.”
Under the APA, companies denied licenses are entitled to a hearing where they can challenge the commission’s decisions and present evidence before an administrative law judge. Somerville said the ruling means companies like Alabama Always can now formally contest the awarding of licenses.
“As a practical matter, you’re going to have 17 or 18 different companies suing each other in an administrative process,” he said, describing the likely next steps.
Somerville said that the process in large similar cases may involve renting a hotel conference room for about three weeks to hold hearings before an administrative law judge. Parties would gather around a large table, and the proceeding functions much like a trial. Witnesses would be called and cross-examined, and counsel would make arguments and present evidence. The administrative law judge could then issue a decision based on the evidence, including formal findings of fact and conclusions of law.
The ruling clarifies that applicants who were denied licenses or were awarded licenses on Dec. 12, 2023, can now initiate contested case proceedings. According to Somerville, these proceedings will involve discovery, depositions, and site inspections of other applicants’ facilities.
“This is the process that should have been followed from the beginning,” Somerville said. “We’ve been asking for this for a year and a half.”
The AMCC has already issued licenses in the cultivator, processor, secure transporter and state testing laboratory categories but has been blocked from moving forward with dispensary and integrated facility licenses due to ongoing litigation.
Commission Chairman Rex Vaughn expressed optimism that the ruling would expedite patient access to medical cannabis.
“Today, we have hope for those patients — hope that we can proceed with our hearing process and get those products into their hands,” Vaughn said.
Alabama’s medical cannabis law, which passed in 2021, allows registered physicians to recommend cannabis for patients with qualifying conditions, including cancer-related pain, epilepsy, PTSD, and chronic pain. Approved products include tablets, tinctures, patches, oils, and gummies only in peach flavor, but raw plant material and smokable forms remain prohibited.
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