MONTGOMERY, Ala. – Just days after announcing the 21 companies selected to produce and distribute medical marijuana in the state, the Alabama Medical Cannabis Commission voted on Friday to halt the process of issuing licenses due to the “discovery of potential inconsistencies in the tabulation of scoring data.”
While more than 90 businesses applied for medical marijuana licenses, the AMCC selected 21 on Monday, based on a scoring formula developed by the University of South Alabama. The recipients were announced Monday, though not scheduled to receive said license until July 10.
The AMCC’s decision Friday, made over a virtual commission meeting, will postpone the licenses being issued pending an “independent review on all scoring data,” according to commission member Steven Stokes.
“I just want to commend the staff for catching this inconsistency; I know we’re all concerned about it, but it would have been a catastrophe if the applicant went through their numbers and found an error,” Stokes said during the meeting.
“We want to get through this, we’ve got to own it up and just say we’re trying to be honest and fair with everyone. Every state that has started a medical marijuana program has had problems, and we’re no different, we’re just going to have to work through them.”
The decision made by the AMCC will also delay the June 26 deadline for license fees from the 21 companies, as well as the June 26 deadline for companies that were not awarded licenses to request an investigative hearing as to why they weren’t selected.
Chuck Smith, the CEO of Southeast Cannabis Company, one of the 21 companies selected, told Alabama Daily News that while the delay was unfortunate, it was the right decision given the intense scrutiny over the AMCC’s selection process.
“In some respects we absolutely anticipated this, (but) I think the commission jumping on this right away and taking this moment to pause and verify their process and procedures, I think, is prudent,” Smith said Friday. “If nothing else, if they didn’t do this, there’d be a whole raft of lawsuits from the disgruntled folks that didn’t make it, and that could potentially delay the program even further.”
The state and many in the medical cannabis industry are anticipating a number of lawsuits from companies who were not awarded a license, with three companies having already sued the AMCC over its application process.
Whether or not the independent review will result in some licenses being revoked is unclear. At least for Smith, he’s doubtful that the review will result in any major changes.
“I happen to think that if they bring in an independent group, evaluate, I think they’re going to find that the scoring methodology was sound,” Smith said.
“Even if they find something that they could have done differently, I’m willing to bet it’s not going to materially change the outcome, and that’s a validation of the commission and their process.”
The law approved by the Legislature in 2021 allows for certain Alabama-made marijuana products to be prescribed for a limited number of medical conditions. Commission leaders have said they hope products will be available by the end of the year or early next year.