Alabama 2024 Regular Session

Alabama Senate Bill SB276 Compare Versions

Only one version of the bill is available at this time.
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11 SB276INTRODUCED
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33 SB276
44 CN8DWQW-1
55 By Senators Sessions, Melson
66 RFD: Agriculture, Conservation, and Forestry
77 First Read: 02-Apr-24
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1212 5 CN8DWQW-1 04/02/2024 INT (L)INT 2024-1288
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1414 First Read: 02-Apr-24
1515 SYNOPSIS:
1616 The Alabama Medical Cannabis Commission is
1717 responsible for issuing licenses for the processing and
1818 dispensing of medical cannabis products.
1919 Under existing law, the Alabama Medical Cannabis
2020 Commission may issue no more than four processor
2121 licenses and dispensary licenses and no more than five
2222 integrated facility licenses to eligible applicants.
2323 This bill would increase the number of licenses
2424 the Alabama Medical Cannabis Commission issues to six
2525 processor licenses, seven dispensary licenses, and 15
2626 integrated facility licenses to eligible applicants.
2727 This bill would also make the issuance of the
2828 specified number of licenses mandatory rather than
2929 discretionary.
3030 This bill would void the rescission of licenses
3131 and the denial of license applications for certain
3232 applicants that were previously acted on by the
3333 commission.
3434 This bill would require the Alabama Medical
3535 Cannabis Commission to reissue licenses to certain
3636 applicants.
3737 This bill would also provide for certain
3838 requirements and guidelines pertaining to the awarding
3939 of any additionally available licenses to certain
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6969 of any additionally available licenses to certain
7070 applicants.
7171 This bill would provide for an administrative
7272 adjudicatory process that provides the commission with
7373 a recommended order pertaining to the awarding of any
7474 additionally available licenses to certain applicants.
7575 This bill would further provide for an appeals
7676 process allowing aggrieved applicants to challenge the
7777 final orders of the commission pertaining to the
7878 awarding of any additionally available licenses to
7979 certain applicants.
8080 A BILL
8181 TO BE ENTITLED
8282 AN ACT
8383 Relating to medical cannabis; to amend Sections
8484 20-2A-63, 20-2A-64, and 20-2A-67, Code of Alabama 1975, to
8585 require the Alabama Medical Cannabis Commission to issue an
8686 increased number of licenses to eligible applicants; and to
8787 provide certain requirements and guidelines related to the
8888 licensure of certain applicants; to add Sections 20-2A-67.1
8989 and 20-2A-67.2 to the Code of Alabama 1975, to provide for an
9090 administrative adjudicatory process for recommendation of the
9191 awarding of available licenses to certain applicants; and to
9292 provide for an appeals process to challenge the final orders
9393 of the commission regarding the licensure of certain
9494 applicants.
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124124 applicants.
125125 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
126126 Section 1. Sections 20-2A-63, 20-2A-64, and 20-2A-67,
127127 Code of Alabama 1975, are amended to read as follows:
128128 "ยง20-2A-63
129129 (a)(1) A processor license authorizes all of the
130130 following:
131131 a. The purchase or transfer of cannabis from a
132132 cultivator.
133133 b. The processing of cannabis into medical cannabis
134134 which shall include properly packaging and labeling medical
135135 cannabis products, in accordance with this section.
136136 c. The sale or transfer of medical cannabis to a
137137 dispensary.
138138 (2) A processor license authorizes the processor to
139139 transfer medical cannabis only by means of a secure
140140 transporter.
141141 (b) The commission shall issue no more than four six
142142 processor licenses to eligible applicants .
143143 (c)(1) All medical cannabis products must be medical
144144 grade product, manufactured using documented good quality
145145 practices, and meet Good Manufacturing Practices, such that
146146 the product is shown to meet intended levels of purity and be
147147 reliably free of toxins and contaminants. Medical cannabis
148148 products may not contain any additives other than
149149 pharmaceutical grade excipients.
150150 (2) The department shall be responsible for enforcing
151151 Good Manufacturing Practices.
152152 (d) Medical cannabis products may not be processed into
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182182 (d) Medical cannabis products may not be processed into
183183 a form that is attractive to or targets children, including
184184 all of the following which are prohibited:
185185 (1) Any product bearing any resemblance to a cartoon
186186 character, fictional character whose target audience is
187187 children or youth, or pop culture figure.
188188 (2) Any product bearing a reasonable resemblance to a
189189 product available for consumption as a commercially available
190190 candy.
191191 (3) Any product whose design resembles, by any means,
192192 another object commonly recognized as appealing to, or
193193 intended for use by, children.
194194 (4) Any product whose shape bears the likeness or
195195 contains characteristics of a realistic or fictional human,
196196 animal, or fruit, including artistic, caricature, or cartoon
197197 rendering.
198198 (e) All of the following shall apply to all packages
199199 and labels of medical cannabis products:
200200 (1) Labels, packages, and containers shall not be
201201 attractive to minors and may not contain any content that
202202 reasonably appears to target children, including toys, cartoon
203203 characters, and similar images. Packages shall be designed to
204204 minimize appeal to children and must contain a label that
205205 reads: "Keep out of reach of children."
206206 (2) All medical cannabis products must be packaged in
207207 child-resistant, tamper-evident containers.
208208 (3) All medical cannabis product labels shall contain,
209209 at a minimum, the following information:
210210 a. Lot and batch numbers.
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240240 a. Lot and batch numbers.
241241 b. A license identification number for the cultivator
242242 and a license identification number for the processor.
243243 c. Cannabinoids content and potency.
244244 d. The universal state symbol printed in color at least
245245 one-half inch by one-half inch in size.
246246 (f) The commission shall establish one universal flavor
247247 for all gelatinous cube, cuboid, and lozenge medical cannabis
248248 products.
249249 (g) The following statement shall be included on each
250250 label, if space permits, or as an insert within the package:
251251 "WARNING: This product may make you drowsy or dizzy. Do not
252252 drink alcohol with this product. Use care when operating a
253253 vehicle or other machinery. Taking this product with
254254 medication may lead to harmful side effects or complications.
255255 Consult your physician before taking this product with any
256256 medication. Women who are breastfeeding, pregnant, or plan to
257257 become pregnant should discuss medical cannabis use with their
258258 physicians."
259259 (h) Any advertisement and any package or label may not
260260 contain any false statement or statement that advertises
261261 health benefits or therapeutic benefits of medical cannabis.
262262 (i) The commission may require the implementation of a
263263 digital image such as a QR Code for purposes of tracking
264264 medical cannabis products. The digital image must interface
265265 with the statewide seed-to-sale tracking system.
266266 (j) The commission shall determine what information
267267 from the label shall be entered into the statewide
268268 seed-to-sale tracking system."
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298298 seed-to-sale tracking system."
299299 "ยง20-2A-64
300300 (a)(1) A dispensary license authorizes all of the
301301 following:
302302 a. The purchase or transfer of medical cannabis from a
303303 processor.
304304 b. If a cultivator contracted with a processor to
305305 process its cannabis into medical cannabis on the cultivator's
306306 behalf, the purchase or transfer of medical cannabis from the
307307 cultivator.
308308 c. The purchase or transfer of medical cannabis from an
309309 integrated facility.
310310 d. The dispensing and sale of medical cannabis only to
311311 a registered qualified patient or registered caregiver.
312312 (2) A dispensary license authorizes the dispensary to
313313 transfer medical cannabis only by means of a secure
314314 transporter, including transport between its dispensing sites.
315315 (b) The commission shall issue no more than four seven
316316 dispensary licenses to eligible applicants .
317317 (c) A dispensary license authorizes the dispensary to
318318 transfer medical cannabis to or from a state testing
319319 laboratory for testing by means of a secure transporter.
320320 (d) A licensed dispensary shall comply with all of the
321321 following:
322322 (1) Each dispensing site must be located at least one
323323 thousand1,000 feet from any school, day care, or child care
324324 facility.
325325 (2) Each dispensing site must be equipped with
326326 surveillance cameras that are focused on each point of entry
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356356 surveillance cameras that are focused on each point of entry
357357 and that operate on a continuous basis. The dispensary must
358358 maintain surveillance records for a minimum of 60 days
359359 following the date of recording.
360360 (3) Sell and dispense medical cannabis at a dispensing
361361 site to a registered qualified patient or registered caregiver
362362 only after it has been tested and bears the label required for
363363 retail sale.
364364 (4) Enter all transactions, current inventory, and
365365 other information into the statewide seed-to-sale tracking
366366 system as required in Section 20-2A-54.
367367 (5) Only allow dispensing of medical cannabis by
368368 certified dispensers, as provided in subsection (e).
369369 (6) Not allow the use of medical cannabis products on
370370 the premises.
371371 (7) Only allow registered qualified patients and
372372 registered caregivers on the premises.
373373 (e)(1) As used in this subsection, "certified
374374 dispenser" means an employee of a dispensary who dispenses
375375 medical cannabis to a registered qualified patient or
376376 registered caregiver and who has been trained and certified by
377377 the commission.
378378 (2) The commission shall establish and administer a
379379 training program for dispensers that addresses proper
380380 dispensing procedures, including the requirements of this
381381 subsection, and other topics relating to public health and
382382 safety and preventing abuse and diversion of medical cannabis.
383383 The commission shall certify trained dispensers and may
384384 require, as a qualification to remain certified, periodic
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414414 require, as a qualification to remain certified, periodic
415415 training.
416416 (3) A certified dispensary shall comply with all of the
417417 following:
418418 a. Before dispensing medical cannabis, inquire of the
419419 patient registry to confirm that the patient or caregiver
420420 holds a valid, current, unexpired, and unrevoked medical
421421 cannabis card and that the dispensing of medical cannabis
422422 conforms to the type and amount recommended in the physician
423423 certification and will not exceed the 60-day daily dosage
424424 purchasing limit.
425425 b. Enter into the patient registry the date, time,
426426 amount, and type of medical cannabis dispensed.
427427 c. Comply with any additional requirements established
428428 by the commission by rule.
429429 (4) The commission shall adopt rules to implement this
430430 subsection.
431431 (f) A licensee may operate up to three dispensing
432432 sites, each of which must be located in a different county
433433 from any other dispensing site; provided, however, the
434434 commission may authorize a licensee to operate a greater
435435 number of dispensing sites if, at least one year after the
436436 date when the maximum number of total dispensing sites
437437 authorized under this section and Section 20-2A-67 are
438438 operating, the commission determines that the patient pool has
439439 reached a sufficient level to justify an additional dispensing
440440 site in an underserved or unserved area of the state.
441441 Notwithstanding the foregoing, a licensee may not operate any
442442 dispensing site in the unincorporated area of a county or in a
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472472 dispensing site in the unincorporated area of a county or in a
473473 municipality that has not adopted a resolution or ordinance
474474 authorizing the operation of dispensing sites under subsection
475475 (c) of Section 20-2A-51."
476476 "ยง20-2A-67
477477 (a) An integrated facility license authorizes all of
478478 the following:
479479 (1) The cultivation of cannabis.
480480 (2) The processing of cannabis into medical cannabis,
481481 including proper packaging and labeling of medical cannabis
482482 products.
483483 (3) The dispensing and sale of medical cannabis only to
484484 a registered qualified patient or registered caregiver.
485485 (4) The transport of cannabis or medical cannabis
486486 between its facilities.
487487 (5) The sale or transfer of medical cannabis to a
488488 dispensary.
489489 (b) The commission mayshall issue no more than five 15
490490 integrated facility licenses to eligible applicants .
491491 (c) An integrated facility licensee shall have the same
492492 authorizations granted to, and shall comply with all
493493 requirements for, cultivators, processors, secure
494494 transporters, and dispensaries, in addition to any other
495495 authorizations or requirements under this section or as
496496 established by rule by the commission.
497497 (d) An applicant for an integrated facility license
498498 shall provide all of the following:
499499 (1) A letter of commitment or other acknowledgement
500500 acknowledgment, as determined by commission rule, of the
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530530 acknowledgment, as determined by commission rule, of the
531531 applicant's ability to secure a performance bond issued by a
532532 surety insurance company approved by the commission in the
533533 amount of two million dollars ($2,000,000).
534534 (2) Proof of at least two hundred fifty thousand
535535 dollars ($250,000) in liquid assets.
536536 (3) Proof that the applicant has the financial ability
537537 to maintain operations for not less than two years following
538538 the date of application.
539539 (e) At the time a license is issued under this section,
540540 the commission shall ensure that the licensee has secured a
541541 performance bond as provided in subdivision (1) of subsection
542542 (d).
543543 (f) A licensee may operate up to five dispensing sites,
544544 each of which must be located in a different county from any
545545 other dispensing site that the licensee operates; provided,
546546 however, the commission may authorize a licensee to operate a
547547 greater number of dispensing sites if, at least one year after
548548 the date when the maximum number of total dispensing sites
549549 authorized under this section and Section 20-2A-64 are
550550 operating, the commission determines that the patient pool has
551551 reached a sufficient level to justify an additional dispensing
552552 site in an underserved or unserved area of the state.
553553 Notwithstanding the foregoing, a licensee may not operate any
554554 dispensing site in the unincorporated area of a county or in a
555555 municipality that has not adopted a resolution or ordinance
556556 authorizing the operation of dispensing sites under subsection
557557 (c) of Section 20-2A-51. This subsection shall not be
558558 construed to limit wholesale distribution from integrated
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588588 construed to limit wholesale distribution from integrated
589589 facility licensees to dispensary licensees."
590590 Section 2. Sections 20-2A-67.1 and 20-2A-67.2 are added
591591 to the Code of Alabama 1975, to read as follows:
592592 ยง20-2A-67.1
593593 (a) Notwithstanding any provision of this chapter or
594594 the Alabama Administrative Procedure Act, the awarding of
595595 licenses by the commission on June 12, 2023, August 10, 2023,
596596 December 1, 2023, and December 12, 2023, is hereby ratified,
597597 approved, and confirmed. To the extent that an applicant was
598598 awarded a license on June 12, 2023, August 10, 2023, December
599599 1, 2023, or December 12, 2023, and the award was purported to
600600 have been subsequently rescinded, or the applicant was
601601 subsequently denied a license, that purported rescission or
602602 denial is hereby deemed void and without force or effect.
603603 (b) No later than June 15, 2024, the commission shall
604604 issue licenses to those applicants that were awarded a license
605605 described in subsection (a).
606606 (c) Any additional licenses available under this
607607 article, which are not issued pursuant to subsections (a) and
608608 (b), shall be awarded only to applicants whose applications
609609 were deemed submitted by the commission on April 13, 2023,
610610 pursuant to the procedures in Section 20-2A-67.2.
611611 (d) Nothing in this section shall prohibit the
612612 commission from suspending, revoking, or restricting any
613613 license pursuant to Section 20-2A-57 or relieve any applicant
614614 or licensee from any fee payment obligation.
615615 ยง20-2A-67.2
616616 (a) Any additional licenses available pursuant to
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646646 (a) Any additional licenses available pursuant to
647647 Section 20-2A-67.1(c) shall be awarded following an
648648 investigative hearing before an administrative law judge
649649 designated by the director, which, except as provided in this
650650 section, shall be heard as a contested case subject to
651651 Sections 41-22-12 and 41-22-13. Eligible applicants may elect
652652 to participate in the award process under this section by
653653 filing notice no later than June 15, 2024. Applicants that
654654 have duly filed a request for an investigative hearing prior
655655 to June 15, 2024, shall be deemed to have met this filing
656656 requirement. Applicants receiving a license pursuant to
657657 Section 20-2A-67.1(a) and (b) shall be ineligible to apply for
658658 additional licenses under this section.
659659 (b)(1) All applications in a license category shall be
660660 consolidated for hearing purposes under this section. No later
661661 than 10 calendar days prior to the hearing, the administrative
662662 law judge shall issue a notice including a statement of the
663663 time, place, and nature of the hearing; a statement of the
664664 legal authority and jurisdiction under which the hearing is to
665665 be held; a reference to the sections of the law and rules
666666 involved; and a statement identifying the action that is the
667667 subject of the appeal, which shall be deemed to satisfy the
668668 notice requirements of Section 41-22-12.
669669 (2) On motion of a party, the administrative law judge,
670670 in his or her sole discretion, may issue subpoenas, discovery
671671 orders related to relevant matters, and protective orders in
672672 accordance with the Alabama Rules of Civil Procedure and the
673673 provisions of this chapter. The commission may set a
674674 reasonable fee by rule for the issuance of a subpoena to be
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704704 reasonable fee by rule for the issuance of a subpoena to be
705705 paid by the moving party and in the absence of such rule shall
706706 charge a fee of fifty dollars ($50). Process issued pursuant
707707 to this subsection shall be enforced by a court in the same
708708 manner as process that is issued by the court.
709709 (3) The administrative law judge may implement measures
710710 to streamline the hearing process, including, but not limited
711711 to, reasonable limitations on the number of witnesses, time of
712712 presentation, and restrictions on the presentation of
713713 testimony that is purely cumulative in nature.
714714 (c) The commission shall secure a licensed court
715715 reporter who shall maintain an index of all exhibits
716716 identified or offered at the time hearing. All parties to the
717717 appeal shall be responsible for the cost of any transcripts
718718 produced by the court reporter for such party. The
719719 administrative law judge shall coordinate with the court
720720 reporter and the secretary of the commission to maintain for
721721 the commission an indexed copy of all other filings of record,
722722 rulings, and orders from the date of assignment of the case to
723723 the administrative law judge through the issuance of a final
724724 order.
725725 (d) In addition to the requirements of Section
726726 41-22-12(g), the record in the investigative hearing shall
727727 include the applications, prior to filings made by the
728728 applicants, the record of prior proceedings before the
729729 commission relating to such application, and additional
730730 testimony and evidence relating to the applications that are
731731 submitted on behalf of the parties and admitted into evidence;
732732 provided, however, that evaluation or scoring of the
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762762 provided, however, that evaluation or scoring of the
763763 applications by third parties engaged by the commission shall
764764 not be considered or required.
765765 (e) The commission shall not be an advocate or party in
766766 the investigative hearing, and no commission member, agency
767767 staff, or representative shall be called as a witness in such
768768 hearing or be subject to discovery.
769769 (f) The fee for the administrative law judge shall be
770770 based on the hourly rate or other fee basis approved by the
771771 executive director of the commission and shall be apportioned,
772772 on a pro rata basis, between all parties to the hearing, with
773773 each party paying its pro rata amount within 30 days of
774774 receipt of an itemized invoice from the administrative law
775775 judge. If a state employee who is employed outside of the
776776 commission is utilized as an administrative law judge, the
777777 parties shall pay an amount equal to the reimbursement
778778 required under any interagency agreement through which such
779779 services are provided. The director may waive all or a portion
780780 of this apportionment and payment required for the
781781 investigative hearings conducted under this section.
782782 (g) Unless extended by the administrative law judge
783783 upon agreement of all parties:
784784 (1) Any hearing before an administrative law judge
785785 pursuant to this article shall begin within 45 days of
786786 assignment to the administrative law judge and completed
787787 within 90 days of the assignment; and
788788 (2) The administrative law judge shall render a
789789 recommended order containing findings of fact and conclusions
790790 of law in accordance with the Alabama Administrative Procedure
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820820 of law in accordance with the Alabama Administrative Procedure
821821 Act within 30 days of completion of the transcript.
822822 (h)(1) In license categories where the number of
823823 eligible applicants participating in the hearing exceeds the
824824 number of licenses that may be issued under this chapter, the
825825 recommended order shall include findings regarding the
826826 applications of each applicant and a recommendation as to the
827827 most suitable applicant among the applicants to be awarded
828828 available licenses, applying applicable legal standards to the
829829 evidence of the record. The recommended order shall be
830830 distributed to all parties, and all parties shall have 15 days
831831 to file exceptions or briefs relating to the recommended
832832 order. The commission shall thereafter schedule the matter for
833833 deliberation and vote.
834834 (2) The commission may approve or reject the
835835 administrative law judge's proposed findings of fact and
836836 conclusions of law, in whole or in part, and may adopt, in
837837 whole or in part, exceptions filed by the parties. In its
838838 deliberations and vote, the commission shall follow the latest
839839 edition of Robert's Rules of Order, except as provided in this
840840 chapter or commission rules. As provided in Section 36-25A-7,
841841 the commission may meet in executive session following the
842842 issuance of the recommended order to deliberate and discuss
843843 the evidence and testimony of record; provided, however, any
844844 motion or vote shall be made in an open meeting.
845845 (3) Upon the award of all available licenses in a
846846 category, the remaining applications in that category shall be
847847 deemed denied.
848848 (i) Within 15 days following a commission vote on a
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878878 (i) Within 15 days following a commission vote on a
879879 proposed order issued by an administrative law judge and any
880880 exceptions filed thereto, the chair shall issue a written
881881 order reflecting the decisions of the commission, which shall
882882 become the final order of the commission. Notice of the final
883883 order must be served either by personal delivery or by
884884 certified mail, postage prepaid, to all parties to the
885885 investigative hearing. The final order may incorporate by
886886 reference all or portions of the recommended order or
887887 exceptions. The final order shall not be subject to
888888 reconsideration or rehearing. The final order of the
889889 commission on appeal shall automatically supersede any prior
890890 action taken by the commission regarding the applications
891891 filed by the parties to the investigative hearing.
892892 (j)(1) An aggrieved party who has exhausted its
893893 administrative remedies under this chapter may appeal the
894894 final written order of the commission directly to the Alabama
895895 Court of Civil Appeals, which shall be the exclusive appellate
896896 remedy for the grant or denial of a license application,
897897 subject to certiorari review by the Alabama Supreme Court. An
898898 appeal shall be perfected by filing a written notice of appeal
899899 with the commission and the clerk of the Alabama Court of
900900 Civil Appeals within 21 days after the issuance of the written
901901 final order of the commission. The notice of appeal shall be
902902 on a form prescribed by the Alabama Rules of Appellate
903903 Procedure. The Court of Civil Appeals shall have no discretion
904904 to refuse to hear appeals of the final orders of the
905905 commission timely filed under this section.
906906 (2) Within 30 days after a notice of appeal is filed,
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936936 (2) Within 30 days after a notice of appeal is filed,
937937 the commission shall transmit the administrative record to the
938938 clerk of the Alabama Court of Civil Appeals, with the
939939 appealing parties bearing the costs associated with the
940940 preparation and transmission of the record and transcript of
941941 the hearing and of giving notice to the parties of the
942942 transmittal. Upon the transmittal of the administrative record
943943 to the Alabama Court of Civil Appeals, the appeal shall
944944 proceed in accordance with the Alabama Rules of Appellate
945945 Procedure.
946946 (3) The final order of the commission shall be taken as
947947 prima facie evidence as being just and reasonable, and the
948948 court shall not substitute its judgment for that of the agency
949949 as to the weight of the evidence on questions of fact.
950950 (k) The investigative hearing process provided for in
951951 this section shall be the sole administrative process for the
952952 consideration of applications for licenses available pursuant
953953 to Section 20-2A-67.1(c) and shall apply to any licenses
954954 awarded after June 1, 2024. The commission may adopt rules
955955 consistent with this section.
956956 (l) Nothing in this section shall prohibit the
957957 commission from suspending, revoking, or restricting any
958958 license under Section 20-2A-57 or relieve any applicant or
959959 licensee from any fee payment obligation.
960960 Section 3. If any provision of this act is held invalid
961961 by a court of competent jurisdiction, the invalidity shall not
962962 affect the other provisions or application of this act or any
963963 amendment or statute that can be given effect without the
964964 invalid provisions or application, and to this end, the
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994994 invalid provisions or application, and to this end, the
995995 provisions of this act and any amendments and statutes are
996996 declared to be severable.
997997 Section 4. This act shall become effective on June 1,
998998 2024.
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