SB276INTRODUCED
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SB276
CN8DWQW-1
By Senators Sessions, Melson
RFD: Agriculture, Conservation, and Forestry
First Read: 02-Apr-24
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5 CN8DWQW-1 04/02/2024 INT (L)INT 2024-1288
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First Read: 02-Apr-24
SYNOPSIS:
The Alabama Medical Cannabis Commission is
responsible for issuing licenses for the processing and
dispensing of medical cannabis products.
Under existing law, the Alabama Medical Cannabis
Commission may issue no more than four processor
licenses and dispensary licenses and no more than five
integrated facility licenses to eligible applicants.
This bill would increase the number of licenses
the Alabama Medical Cannabis Commission issues to six
processor licenses, seven dispensary licenses, and 15
integrated facility licenses to eligible applicants.
This bill would also make the issuance of the
specified number of licenses mandatory rather than
discretionary.
This bill would void the rescission of licenses
and the denial of license applications for certain
applicants that were previously acted on by the
commission.
This bill would require the Alabama Medical
Cannabis Commission to reissue licenses to certain
applicants.
This bill would also provide for certain
requirements and guidelines pertaining to the awarding
of any additionally available licenses to certain
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of any additionally available licenses to certain
applicants.
This bill would provide for an administrative
adjudicatory process that provides the commission with
a recommended order pertaining to the awarding of any
additionally available licenses to certain applicants.
This bill would further provide for an appeals
process allowing aggrieved applicants to challenge the
final orders of the commission pertaining to the
awarding of any additionally available licenses to
certain applicants.
A BILL
TO BE ENTITLED
AN ACT
Relating to medical cannabis; to amend Sections
20-2A-63, 20-2A-64, and 20-2A-67, Code of Alabama 1975, to
require the Alabama Medical Cannabis Commission to issue an
increased number of licenses to eligible applicants; and to
provide certain requirements and guidelines related to the
licensure of certain applicants; to add Sections 20-2A-67.1
and 20-2A-67.2 to the Code of Alabama 1975, to provide for an
administrative adjudicatory process for recommendation of the
awarding of available licenses to certain applicants; and to
provide for an appeals process to challenge the final orders
of the commission regarding the licensure of certain
applicants.
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applicants.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 20-2A-63, 20-2A-64, and 20-2A-67,
Code of Alabama 1975, are amended to read as follows:
"§20-2A-63
(a)(1) A processor license authorizes all of the
following:
a. The purchase or transfer of cannabis from a
cultivator.
b. The processing of cannabis into medical cannabis
which shall include properly packaging and labeling medical
cannabis products, in accordance with this section.
c. The sale or transfer of medical cannabis to a
dispensary.
(2) A processor license authorizes the processor to
transfer medical cannabis only by means of a secure
transporter.
(b) The commission shall issue no more than four six
processor licenses to eligible applicants .
(c)(1) All medical cannabis products must be medical
grade product, manufactured using documented good quality
practices, and meet Good Manufacturing Practices, such that
the product is shown to meet intended levels of purity and be
reliably free of toxins and contaminants. Medical cannabis
products may not contain any additives other than
pharmaceutical grade excipients.
(2) The department shall be responsible for enforcing
Good Manufacturing Practices.
(d) Medical cannabis products may not be processed into
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(d) Medical cannabis products may not be processed into
a form that is attractive to or targets children, including
all of the following which are prohibited:
(1) Any product bearing any resemblance to a cartoon
character, fictional character whose target audience is
children or youth, or pop culture figure.
(2) Any product bearing a reasonable resemblance to a
product available for consumption as a commercially available
candy.
(3) Any product whose design resembles, by any means,
another object commonly recognized as appealing to, or
intended for use by, children.
(4) Any product whose shape bears the likeness or
contains characteristics of a realistic or fictional human,
animal, or fruit, including artistic, caricature, or cartoon
rendering.
(e) All of the following shall apply to all packages
and labels of medical cannabis products:
(1) Labels, packages, and containers shall not be
attractive to minors and may not contain any content that
reasonably appears to target children, including toys, cartoon
characters, and similar images. Packages shall be designed to
minimize appeal to children and must contain a label that
reads: "Keep out of reach of children."
(2) All medical cannabis products must be packaged in
child-resistant, tamper-evident containers.
(3) All medical cannabis product labels shall contain,
at a minimum, the following information:
a. Lot and batch numbers.
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a. Lot and batch numbers.
b. A license identification number for the cultivator
and a license identification number for the processor.
c. Cannabinoids content and potency.
d. The universal state symbol printed in color at least
one-half inch by one-half inch in size.
(f) The commission shall establish one universal flavor
for all gelatinous cube, cuboid, and lozenge medical cannabis
products.
(g) The following statement shall be included on each
label, if space permits, or as an insert within the package:
"WARNING: This product may make you drowsy or dizzy. Do not
drink alcohol with this product. Use care when operating a
vehicle or other machinery. Taking this product with
medication may lead to harmful side effects or complications.
Consult your physician before taking this product with any
medication. Women who are breastfeeding, pregnant, or plan to
become pregnant should discuss medical cannabis use with their
physicians."
(h) Any advertisement and any package or label may not
contain any false statement or statement that advertises
health benefits or therapeutic benefits of medical cannabis.
(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."
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seed-to-sale tracking system."
"§20-2A-64
(a)(1) A dispensary license authorizes all of the
following:
a. The purchase or transfer of medical cannabis from a
processor.
b. If a cultivator contracted with a processor to
process its cannabis into medical cannabis on the cultivator's
behalf, the purchase or transfer of medical cannabis from the
cultivator.
c. The purchase or transfer of medical cannabis from an
integrated facility.
d. The dispensing and sale of medical cannabis only to
a registered qualified patient or registered caregiver.
(2) A dispensary license authorizes the dispensary to
transfer medical cannabis only by means of a secure
transporter, including transport between its dispensing sites.
(b) The commission shall issue no more than four seven
dispensary licenses to eligible applicants .
(c) A dispensary license authorizes the dispensary to
transfer medical cannabis to or from a state testing
laboratory for testing by means of a secure transporter.
(d) A licensed dispensary shall comply with all of the
following:
(1) Each dispensing site must be located at least one
thousand1,000 feet from any school, day care, or child care
facility.
(2) Each dispensing site must be equipped with
surveillance cameras that are focused on each point of entry
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surveillance cameras that are focused on each point of entry
and that operate on a continuous basis. The dispensary must
maintain surveillance records for a minimum of 60 days
following the date of recording.
(3) Sell and dispense medical cannabis at a dispensing
site to a registered qualified patient or registered caregiver
only after it has been tested and bears the label required for
retail sale.
(4) Enter all transactions, current inventory, and
other information into the statewide seed-to-sale tracking
system as required in Section 20-2A-54.
(5) Only allow dispensing of medical cannabis by
certified dispensers, as provided in subsection (e).
(6) Not allow the use of medical cannabis products on
the premises.
(7) Only allow registered qualified patients and
registered caregivers on the premises.
(e)(1) As used in this subsection, "certified
dispenser" means an employee of a dispensary who dispenses
medical cannabis to a registered qualified patient or
registered caregiver and who has been trained and certified by
the commission.
(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
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require, as a qualification to remain certified, periodic
training.
(3) A certified dispensary shall comply with all of the
following:
a. Before dispensing medical cannabis, inquire of the
patient registry to confirm that the patient or caregiver
holds a valid, current, unexpired, and unrevoked medical
cannabis card and that the dispensing of medical cannabis
conforms to the type and amount recommended in the physician
certification and will not exceed the 60-day daily dosage
purchasing limit.
b. Enter into the patient registry the date, time,
amount, and type of medical cannabis dispensed.
c. Comply with any additional requirements established
by the commission by rule.
(4) The commission shall adopt rules to implement this
subsection.
(f) A licensee may operate up to three dispensing
sites, each of which must be located in a different county
from any other dispensing site; provided, however, the
commission may authorize a licensee to operate a greater
number of dispensing sites if, at least one year after the
date when the maximum number of total dispensing sites
authorized under this section and Section 20-2A-67 are
operating, the commission determines that the patient pool has
reached a sufficient level to justify an additional dispensing
site in an underserved or unserved area of the state.
Notwithstanding the foregoing, a licensee may not operate any
dispensing site in the unincorporated area of a county or in a
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dispensing site in the unincorporated area of a county or in a
municipality that has not adopted a resolution or ordinance
authorizing the operation of dispensing sites under subsection
(c) of Section 20-2A-51."
"§20-2A-67
(a) An integrated facility license authorizes all of
the following:
(1) The cultivation of cannabis.
(2) The processing of cannabis into medical cannabis,
including proper packaging and labeling of medical cannabis
products.
(3) The dispensing and sale of medical cannabis only to
a registered qualified patient or registered caregiver.
(4) The transport of cannabis or medical cannabis
between its facilities.
(5) The sale or transfer of medical cannabis to a
dispensary.
(b) The commission mayshall issue no more than five 15
integrated facility licenses to eligible applicants .
(c) An integrated facility licensee shall have the same
authorizations granted to, and shall comply with all
requirements for, cultivators, processors, secure
transporters, and dispensaries, in addition to any other
authorizations or requirements under this section or as
established by rule by the commission.
(d) An applicant for an integrated facility license
shall provide all of the following:
(1) A letter of commitment or other acknowledgement
acknowledgment, as determined by commission rule, of the
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acknowledgment, as determined by commission rule, of the
applicant's ability to secure a performance bond issued by a
surety insurance company approved by the commission in the
amount of two million dollars ($2,000,000).
(2) Proof of at least two hundred fifty thousand
dollars ($250,000) in liquid assets.
(3) Proof that the applicant has the financial ability
to maintain operations for not less than two years following
the date of application.
(e) At the time a license is issued under this section,
the commission shall ensure that the licensee has secured a
performance bond as provided in subdivision (1) of subsection
(d).
(f) A licensee may operate up to five dispensing sites,
each of which must be located in a different county from any
other dispensing site that the licensee operates; provided,
however, the commission may authorize a licensee to operate a
greater number of dispensing sites if, at least one year after
the date when the maximum number of total dispensing sites
authorized under this section and Section 20-2A-64 are
operating, the commission determines that the patient pool has
reached a sufficient level to justify an additional dispensing
site in an underserved or unserved area of the state.
Notwithstanding the foregoing, a licensee may not operate any
dispensing site in the unincorporated area of a county or in a
municipality that has not adopted a resolution or ordinance
authorizing the operation of dispensing sites under subsection
(c) of Section 20-2A-51. This subsection shall not be
construed to limit wholesale distribution from integrated
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construed to limit wholesale distribution from integrated
facility licensees to dispensary licensees."
Section 2. Sections 20-2A-67.1 and 20-2A-67.2 are added
to the Code of Alabama 1975, to read as follows:
§20-2A-67.1
(a) Notwithstanding any provision of this chapter or
the Alabama Administrative Procedure Act, the awarding of
licenses by the commission on June 12, 2023, August 10, 2023,
December 1, 2023, and December 12, 2023, is hereby ratified,
approved, and confirmed. To the extent that an applicant was
awarded a license on June 12, 2023, August 10, 2023, December
1, 2023, or December 12, 2023, and the award was purported to
have been subsequently rescinded, or the applicant was
subsequently denied a license, that purported rescission or
denial is hereby deemed void and without force or effect.
(b) No later than June 15, 2024, the commission shall
issue licenses to those applicants that were awarded a license
described in subsection (a).
(c) Any additional licenses available under this
article, which are not issued pursuant to subsections (a) and
(b), shall be awarded only to applicants whose applications
were deemed submitted by the commission on April 13, 2023,
pursuant to the procedures in Section 20-2A-67.2.
(d) Nothing in this section shall prohibit the
commission from suspending, revoking, or restricting any
license pursuant to Section 20-2A-57 or relieve any applicant
or licensee from any fee payment obligation.
§20-2A-67.2
(a) Any additional licenses available pursuant to
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(a) Any additional licenses available pursuant to
Section 20-2A-67.1(c) shall be awarded following an
investigative hearing before an administrative law judge
designated by the director, which, except as provided in this
section, shall be heard as a contested case subject to
Sections 41-22-12 and 41-22-13. Eligible applicants may elect
to participate in the award process under this section by
filing notice no later than June 15, 2024. Applicants that
have duly filed a request for an investigative hearing prior
to June 15, 2024, shall be deemed to have met this filing
requirement. Applicants receiving a license pursuant to
Section 20-2A-67.1(a) and (b) shall be ineligible to apply for
additional licenses under this section.
(b)(1) All applications in a license category shall be
consolidated for hearing purposes under this section. No later
than 10 calendar days prior to the hearing, the administrative
law judge shall issue a notice including a statement of the
time, place, and nature of the hearing; a statement of the
legal authority and jurisdiction under which the hearing is to
be held; a reference to the sections of the law and rules
involved; and a statement identifying the action that is the
subject of the appeal, which shall be deemed to satisfy the
notice requirements of Section 41-22-12.
(2) On motion of a party, the administrative law judge,
in his or her sole discretion, may issue subpoenas, discovery
orders related to relevant matters, and protective orders in
accordance with the Alabama Rules of Civil Procedure and the
provisions of this chapter. The commission may set a
reasonable fee by rule for the issuance of a subpoena to be
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reasonable fee by rule for the issuance of a subpoena to be
paid by the moving party and in the absence of such rule shall
charge a fee of fifty dollars ($50). Process issued pursuant
to this subsection shall be enforced by a court in the same
manner as process that is issued by the court.
(3) The administrative law judge may implement measures
to streamline the hearing process, including, but not limited
to, reasonable limitations on the number of witnesses, time of
presentation, and restrictions on the presentation of
testimony that is purely cumulative in nature.
(c) The commission shall secure a licensed court
reporter who shall maintain an index of all exhibits
identified or offered at the time hearing. All parties to the
appeal shall be responsible for the cost of any transcripts
produced by the court reporter for such party. The
administrative law judge shall coordinate with the court
reporter and the secretary of the commission to maintain for
the commission an indexed copy of all other filings of record,
rulings, and orders from the date of assignment of the case to
the administrative law judge through the issuance of a final
order.
(d) In addition to the requirements of Section
41-22-12(g), the record in the investigative hearing shall
include the applications, prior to filings made by the
applicants, the record of prior proceedings before the
commission relating to such application, and additional
testimony and evidence relating to the applications that are
submitted on behalf of the parties and admitted into evidence;
provided, however, that evaluation or scoring of the
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provided, however, that evaluation or scoring of the
applications by third parties engaged by the commission shall
not be considered or required.
(e) The commission shall not be an advocate or party in
the investigative hearing, and no commission member, agency
staff, or representative shall be called as a witness in such
hearing or be subject to discovery.
(f) The fee for the administrative law judge shall be
based on the hourly rate or other fee basis approved by the
executive director of the commission and shall be apportioned,
on a pro rata basis, between all parties to the hearing, with
each party paying its pro rata amount within 30 days of
receipt of an itemized invoice from the administrative law
judge. If a state employee who is employed outside of the
commission is utilized as an administrative law judge, the
parties shall pay an amount equal to the reimbursement
required under any interagency agreement through which such
services are provided. The director may waive all or a portion
of this apportionment and payment required for the
investigative hearings conducted under this section.
(g) Unless extended by the administrative law judge
upon agreement of all parties:
(1) Any hearing before an administrative law judge
pursuant to this article shall begin within 45 days of
assignment to the administrative law judge and completed
within 90 days of the assignment; and
(2) The administrative law judge shall render a
recommended order containing findings of fact and conclusions
of law in accordance with the Alabama Administrative Procedure
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of law in accordance with the Alabama Administrative Procedure
Act within 30 days of completion of the transcript.
(h)(1) In license categories where the number of
eligible applicants participating in the hearing exceeds the
number of licenses that may be issued under this chapter, the
recommended order shall include findings regarding the
applications of each applicant and a recommendation as to the
most suitable applicant among the applicants to be awarded
available licenses, applying applicable legal standards to the
evidence of the record. The recommended order shall be
distributed to all parties, and all parties shall have 15 days
to file exceptions or briefs relating to the recommended
order. The commission shall thereafter schedule the matter for
deliberation and vote.
(2) The commission may approve or reject the
administrative law judge's proposed findings of fact and
conclusions of law, in whole or in part, and may adopt, in
whole or in part, exceptions filed by the parties. In its
deliberations and vote, the commission shall follow the latest
edition of Robert's Rules of Order, except as provided in this
chapter or commission rules. As provided in Section 36-25A-7,
the commission may meet in executive session following the
issuance of the recommended order to deliberate and discuss
the evidence and testimony of record; provided, however, any
motion or vote shall be made in an open meeting.
(3) Upon the award of all available licenses in a
category, the remaining applications in that category shall be
deemed denied.
(i) Within 15 days following a commission vote on a
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(i) Within 15 days following a commission vote on a
proposed order issued by an administrative law judge and any
exceptions filed thereto, the chair shall issue a written
order reflecting the decisions of the commission, which shall
become the final order of the commission. Notice of the final
order must be served either by personal delivery or by
certified mail, postage prepaid, to all parties to the
investigative hearing. The final order may incorporate by
reference all or portions of the recommended order or
exceptions. The final order shall not be subject to
reconsideration or rehearing. The final order of the
commission on appeal shall automatically supersede any prior
action taken by the commission regarding the applications
filed by the parties to the investigative hearing.
(j)(1) An aggrieved party who has exhausted its
administrative remedies under this chapter may appeal the
final written order of the commission directly to the Alabama
Court of Civil Appeals, which shall be the exclusive appellate
remedy for the grant or denial of a license application,
subject to certiorari review by the Alabama Supreme Court. An
appeal shall be perfected by filing a written notice of appeal
with the commission and the clerk of the Alabama Court of
Civil Appeals within 21 days after the issuance of the written
final order of the commission. The notice of appeal shall be
on a form prescribed by the Alabama Rules of Appellate
Procedure. The Court of Civil Appeals shall have no discretion
to refuse to hear appeals of the final orders of the
commission timely filed under this section.
(2) Within 30 days after a notice of appeal is filed,
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(2) Within 30 days after a notice of appeal is filed,
the commission shall transmit the administrative record to the
clerk of the Alabama Court of Civil Appeals, with the
appealing parties bearing the costs associated with the
preparation and transmission of the record and transcript of
the hearing and of giving notice to the parties of the
transmittal. Upon the transmittal of the administrative record
to the Alabama Court of Civil Appeals, the appeal shall
proceed in accordance with the Alabama Rules of Appellate
Procedure.
(3) The final order of the commission shall be taken as
prima facie evidence as being just and reasonable, and the
court shall not substitute its judgment for that of the agency
as to the weight of the evidence on questions of fact.
(k) The investigative hearing process provided for in
this section shall be the sole administrative process for the
consideration of applications for licenses available pursuant
to Section 20-2A-67.1(c) and shall apply to any licenses
awarded after June 1, 2024. The commission may adopt rules
consistent with this section.
(l) Nothing in this section shall prohibit the
commission from suspending, revoking, or restricting any
license under Section 20-2A-57 or relieve any applicant or
licensee from any fee payment obligation.
Section 3. If any provision of this act is held invalid
by a court of competent jurisdiction, the invalidity shall not
affect the other provisions or application of this act or any
amendment or statute that can be given effect without the
invalid provisions or application, and to this end, the
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invalid provisions or application, and to this end, the
provisions of this act and any amendments and statutes are
declared to be severable.
Section 4. This act shall become effective on June 1,
2024.
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