Alabama 2024 Regular Session

Alabama Senate Bill SB306 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB306INTRODUCED
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3	3	SB306
4	4	UPZNGXG-1
5	5	By Senator Melson
6	6	RFD: Agriculture, Conservation, and Forestry
7	7	First Read: 09-Apr-24
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12	12	5 UPZNGXG-1 04/09/2024 PMG (L)tgw 2024-1326
13	13	Page 1
14	14	First Read: 09-Apr-24
15	15	SYNOPSIS:
16	16	Under existing law, the Alabama Medical Cannabis
17	17	Commission is responsible for the regulation,
18	18	licensure, and enforcement of all aspects of the
19	19	processing and dispensing of medical cannabis, while
20	20	the Alabama Department of Agriculture and Industries
21	21	shares responsibility with the commission for the
22	22	regulation and enforcement of the cultivation of
23	23	cannabis to be used for medical cannabis products.
24	24	This bill would provide that the regulation,
25	25	licensure, and enforcement functions relating to the
26	26	cultivation of cannabis are duties of the Alabama
27	27	Medical Cannabis Commission and would require the
28	28	Alabama Department of Agriculture and Industries to
29	29	cooperate with the commission in carrying out these
30	30	functions.
31	31	Under existing law, the Alabama Medical Cannabis
32	32	Commission may issue five integrated facility licenses,
33	33	which allows for cultivation, processing, and
34	34	dispensing of medical cannabis.
35	35	This bill would specify a three-step process for
36	36	the awarding of integrated facility licences. The first
37	37	step would require a panel appointed by the Alabama
38	38	Securities Commission to determine if license
39	39	applicants meet certain basic eligibility requirements
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69	69	applicants meet certain basic eligibility requirements
70	70	for licensure. The second step would require the review
71	71	panel to determine the readiness of the cultivation and
72	72	dispensing operations if a license was to be awarded.
73	73	The third step would require the Alabama Medical
74	74	Cannabis Commission members to score the pool of
75	75	remaining eligible applicants on a number of criteria
76	76	to ultimately determine the awarding of the licenses.
77	77	This bill would also provide greater specificity
78	78	to the eligibility requirements for integrated license
79	79	facility licensure.
80	80	Under existing law, a medical cannabis license
81	81	may be transferred in certain circumstances.
82	82	This bill would prohibit the transfer of an
83	83	integrated facility license.
84	84	A BILL
85	85	TO BE ENTITLED
86	86	AN ACT
87	87	Relating to medical cannabis; to amend Sections
88	88	20-2A-3, 20-2A-50, 20-2A-51, 20-2A-52, 20-2A-53, 20-2A-57,
89	89	20-2A-59, 20-2A-62, and 20-2A-63, Code of Alabama 1975, to
90	90	provide that the Alabama Medical Cannabis Commission is
91	91	primarily responsible for the regulation, licensure, and
92	92	enforcement of cannabis cultivation; to amend Section
93	93	20-2A-58, Code of Alabama 1975, to prohibit the transfer of an
94	94	integrated facility license; and to amend Section 20-2A-67,
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124	124	integrated facility license; and to amend Section 20-2A-67,
125	125	Code of Alabama 1975, to provide for a three-step process in
126	126	the awarding of integrated facility licenses and provide
127	127	greater specificity in the procedure and in the eligibility
128	128	requirements for licensure.
129	129	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
130	130	Section 1. It is the intent of this act to:
131	131	(1) Ensure that the process for selecting integrated
132	132	facility licenses adheres to the original intent of Act
133	133	2021-450, now codified as Chapter 2A of Title 20, Code of
134	134	Alabama 1975;
135	135	(2) Account for every individual and entity who may
136	136	benefit financially from an integrated facility license; and
137	137	(3) Provide full transparency to the integrated
138	138	facility license selection process.
139	139	Section 2. Sections 20-2A-3, 20-2A-50, 20-2A-51,
140	140	20-2A-52, 20-2A-53, 20-2A-57, 20-2A-58, 20-2A-59, 20-2A-62,
141	141	20-2A-63, and 20-2A-67, Code of Alabama 1975, are amended to
142	142	read as follows:
143	143	"§20-2A-3
144	144	As used in this chapter, the following terms have the
145	145	following meanings:
146	146	(1) APPLICANT. The entity or individual seeking a
147	147	license under Article 4.
148	148	(2) BOARD. The State Board of Medical Examiners.
149	149	(3) CANNABIS. a. Except as provided in paragraph b.,
150	150	all parts of any plant of the genus cannabis, whether growing
151	151	or not, including the seeds, extractions of any kind from any
152	152	part of the plant, and every compound, derivative, mixture,
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182	182	part of the plant, and every compound, derivative, mixture,
183	183	product, or preparation of the plant.
184	184	b. The term does not include industrial hemp or hemp
185	185	regulated under Article 11 of Chapter 8 of Title 2.
186	186	(4) COMMISSION. The Alabama Medical Cannabis Commission
187	187	created pursuant to Section 20-2A-20.
188	188	(5) CULTIVATOR. An entity licensed by the Department of
189	189	Agriculture and Industries commission under Section 20-2A-62
190	190	authorized to grow cannabis pursuant to Article 4.
191	191	(6) DAILY DOSAGE. The total amount of one or more
192	192	cannabis derivatives, including, but not limited to,
193	193	cannabidiol and tetrahydrocannabinol, which may be present in
194	194	a medical cannabis product that may be ingested by a
195	195	registered qualified patient during a 24-hour period, as
196	196	determined by a registered certifying physician.
197	197	(7) DEPARTMENT. The Department of Agriculture and
198	198	Industries.
199	199	(8) DISPENSARY. An entity licensed by the commission
200	200	under Section 20-2A-64 authorized to dispense and sell medical
201	201	cannabis at dispensing sites to registered qualified patients
202	202	and registered caregivers pursuant to Article 4.
203	203	(9) DISPENSING SITE. A site operated by a dispensary
204	204	licensee or an integrated facility licensee pursuant to
205	205	Article 4.
206	206	(10) ECONOMIC INTEREST. The rights to either the
207	207	capital or profit interests of an applicant or licensee or, if
208	208	the applicant or licensee is a corporation, the rights to some
209	209	portion of all classes of outstanding stock in the
210	210	corporation.
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240	240	corporation.
241	241	(11) FACILITY or MEDICAL CANNABIS FACILITY. Any
242	242	facility, or land associated with a facility, of a licensee.
243	243	(12) INTEGRATED FACILITY. An entity licensed under
244	244	Section 20-2A-67 authorized to perform the functions of a
245	245	cultivator, processor, secure transporter, and dispensary
246	246	pursuant to Article 4.
247	247	(13) LICENSEE. A cultivator, processor, secure
248	248	transporter, state testing laboratory, dispensary, or
249	249	integrated facility licensed by the commission under Article
250	250	4.
251	251	(14) MEDICAL CANNABIS. a. A medical grade product in
252	252	the form of any of the following, as determined by rule by the
253	253	commission, that contains a derivative of cannabis for medical
254	254	use by a registered qualified patient pursuant to this
255	255	chapter:
256	256	1. Oral tablet, capsule, or tincture.
257	257	2. Non-sugarcoated gelatinous cube, gelatinous
258	258	rectangular cuboid, or lozenge in a cube or rectangular cuboid
259	259	shape.
260	260	3. Gel, oil, cream, or other topical preparation.
261	261	4. Suppository.
262	262	5. Transdermal patch.
263	263	6. Nebulizer.
264	264	7. Liquid or oil for administration using an inhaler.
265	265	b. The term does not include any of the following:
266	266	1. Raw plant material.
267	267	2. Any product administered by smoking, combustion, or
268	268	vaping.
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298	298	vaping.
299	299	3. A food product that has medical cannabis baked,
300	300	mixed, or otherwise infused into the product, such as cookies
301	301	or candies.
302	302	(15) MEDICAL CANNABIS CARD. A valid card issued
303	303	pursuant to Section 20-2A-36.
304	304	(16) MEDICAL USE or USE OF MEDICAL CANNABIS or USE
305	305	MEDICAL CANNABIS. The acquisition, possession, use, delivery,
306	306	transfer, or administration of medical cannabis authorized by
307	307	this chapter. The term does not include possession, use, or
308	308	administration of cannabis that was not purchased or acquired
309	309	from a licensed dispensary.
310	310	(17) PACKAGE. Any container that a processor may use
311	311	for enclosing and containing medical cannabis. The term does
312	312	not include any carry-out bag or other similar container.
313	313	(18) PATIENT REGISTRY. The Alabama Medical Cannabis
314	314	Patient Registry System that is an electronic integrated
315	315	system that tracks physician certifications, patient
316	316	registrations, medical cannabis cards, the daily dosage and
317	317	type of medical cannabis recommended to qualified patients by
318	318	registered certifying physicians, and the dates of sale,
319	319	amounts, and types of medical cannabis that were purchased by
320	320	registered qualified patients at licensed dispensaries.
321	321	(19) PHYSICIAN CERTIFICATION. A registered certifying
322	322	physician's authorization for a registered qualified patient
323	323	to use medical cannabis.
324	324	(20) PROCESSOR. An entity licensed by the commission
325	325	under Section 20-2A-63 authorized to purchase cannabis from a
326	326	cultivator and extract derivatives from the cannabis to
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356	356	cultivator and extract derivatives from the cannabis to
357	357	produce a medical cannabis product or products for sale and
358	358	transfer in packaged and labeled form to a dispensing site
359	359	pursuant to Article 4.
360	360	(21) QUALIFYING MEDICAL CONDITION. Any of the following
361	361	conditions or symptoms of conditions, but only after
362	362	documentation indicates that conventional medical treatment or
363	363	therapy has failed unless current medical treatment indicates
364	364	that use of medical cannabis is the standard of care:
365	365	a. Autism Spectrum Disorder (ASD).
366	366	b. Cancer-related cachexia, nausea or vomiting, weight
367	367	loss, or chronic pain.
368	368	c. Crohn's Disease.
369	369	d. Depression.
370	370	e. Epilepsy or a condition causing seizures.
371	371	f. HIV/AIDS-related nausea or weight loss.
372	372	g. Panic disorder.
373	373	h. Parkinson's disease.
374	374	i. Persistent nausea that is not significantly
375	375	responsive to traditional treatment, except for nausea related
376	376	to pregnancy, cannabis-induced cyclical vomiting syndrome, or
377	377	cannabinoid hyperemesis syndrome.
378	378	j. Post Traumatic Stress Disorder (PTSD).
379	379	k. Sickle Cell Anemia.
380	380	l. Spasticity associated with a motor neuron disease,
381	381	including Amyotrophic Lateral Sclerosis.
382	382	m. Spasticity associated with Multiple Sclerosis or a
383	383	spinal cord injury.
384	384	n. A terminal illness.
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414	414	n. A terminal illness.
415	415	o. Tourette's Syndrome.
416	416	p. A condition causing chronic or intractable pain in
417	417	which conventional therapeutic intervention and opiate therapy
418	418	is contraindicated or has proved ineffective.
419	419	(22) REGISTERED CAREGIVER. An individual who meets the
420	420	requirements described in subsection (c) of Section 20-2A-30
421	421	and is authorized to acquire and possess medical cannabis and
422	422	to assist one or more registered qualified patients with the
423	423	use of medical cannabis pursuant to this chapter.
424	424	(23) REGISTERED CERTIFYING PHYSICIAN. A physician
425	425	authorized by the State Board of Medical Examiners to certify
426	426	patients for the use of medical cannabis under this chapter.
427	427	(24) REGISTERED QUALIFIED PATIENT. Either of the
428	428	following:
429	429	a. An adult who meets the requirements described in
430	430	subsection (a) of Section 20-2A-30 and is authorized to
431	431	acquire, possess, and use medical cannabis pursuant to this
432	432	chapter.
433	433	b. A minor who meets the requirements described in
434	434	subsection (b) of Section 20-2A-30 and is authorized to use
435	435	medical cannabis pursuant to this chapter with the assistance
436	436	of a registered caregiver.
437	437	(25) SECURE TRANSPORTER. An entity licensed by the
438	438	commission under Section 20-2A-65 authorized to transport
439	439	cannabis or medical cannabis from one licensed facility or
440	440	site to another licensed facility or site.
441	441	(26) STATE TESTING LABORATORY. An entity licensed under
442	442	Section 20-2A-66 authorized to test cannabis and medical
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472	472	Section 20-2A-66 authorized to test cannabis and medical
473	473	cannabis to ensure the product meets safety qualifications
474	474	required under this chapter.
475	475	(27) STATEWIDE SEED-TO-SALE TRACKING SYSTEM. The
476	476	tracking system established pursuant to Section 20-2A-54 that
477	477	tracks all cannabis and medical cannabis in the state.
478	478	(28) UNIVERSAL STATE SYMBOL. The image established by
479	479	the commission pursuant to Section 20-2A-53 made available to
480	480	processors which indicates the package contains medical
481	481	cannabis."
482	482	"§20-2A-50
483	483	(a) The state hereby preemptively regulates medical
484	484	cannabis from seed to sale seed-to-sale and shall reasonably
485	485	regulate and control all aspects of the medical cannabis
486	486	industry to meet the intent of this chapter. All functions and
487	487	activities relating to the production of medical cannabis in
488	488	the state shall be licensed, and licenses shall be granted to
489	489	integrated facilities, as well as to independent entities in
490	490	the following categories: Cultivator, processor, dispensary,
491	491	secure transporter, and testing laboratory.
492	492	(b) The commission shall license ,and regulate, and
493	493	enforce all aspects of medical cannabis under this article ,
494	494	excluding cultivation . The Department of Agriculture and
495	495	Industries shall license and regulate the cultivation of
496	496	cannabis. For integrated facility licenses, the commission and
497	497	the department shall enter into a memorandum of understanding
498	498	relating to the sharing of regulatory and licensing and
499	499	enforcement authority over licensees with regard to the
500	500	cultivation function The commission may seek and shall receive
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530	530	cultivation function The commission may seek and shall receive
531	531	the cooperation of the Department of Agriculture and
532	532	Industries in the regulation and enforcement of this article.
533	533	The department may recover from the commission the
534	534	department's costs of cooperation ."
535	535	"§20-2A-51
536	536	(a) Where the commission is authorized under this
537	537	article to determine the number of licenses of a specific
538	538	license category the commission will grant, or increase the
539	539	number of licenses of a specific license category to grant,
540	540	the commission shall consider the population of the state, the
541	541	number of active registered qualified patients, market demand,
542	542	the unemployment rate, the need for agricultural and other
543	543	business opportunities in communities, access to health care,
544	544	infrastructure, and other factors the commission deems
545	545	relevant in providing the greatest benefits to the residents
546	546	of this state and taking into account the racial and economic
547	547	makeup of the state.
548	548	(b) The commission , and where applicable the
549	549	department, shall ensure that at least one-fourth of all
550	550	licenses, or in the case of Section 20-2A-67, one-fifth of all
551	551	licenses, to the extent there is an applicant or applicants
552	552	that are qualified under Section 20-2A-67, are awarded to
553	553	business entities at least 51 percent of which are owned by
554	554	members of a minority group or, in the case of a corporation,
555	555	at least 51 percent of the shares of the corporation are owned
556	556	by members of a minority group, and are managed and controlled
557	557	by members of a minority group in its daily operations. For
558	558	purposes of this subsection, "minority group" means
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588	588	purposes of this subsection, "minority group" means
589	589	individuals of African American, Native American, Asian, or
590	590	Hispanic descent.
591	591	(c)(1) Notwithstanding any other provision of this
592	592	chapter to the contrary, the commission shall not permit a
593	593	dispensary to operate a dispensing site in any municipality or
594	594	unincorporated area of a county unless the municipality or
595	595	county has authorized the operation of dispensing sites within
596	596	its boundaries, as provided in subdivision (2).
597	597	(2) Any county commission, by resolution, may authorize
598	598	the operation of dispensing sites in the unincorporated areas
599	599	of the county, and the governing body of any municipality, by
600	600	ordinance, may authorize the operation of dispensing sites
601	601	within the corporate limits of the municipality. The county
602	602	commission or municipal governing body shall notify the
603	603	commission not more than seven calendar days after adopting
604	604	the resolution or ordinance.
605	605	(3) This subsection does not prohibit a municipality
606	606	from adopting zoning ordinances restricting the operation of
607	607	dispensing sites within its corporate limits."
608	608	"§20-2A-52
609	609	(a) The commission , and the department with regard to
610	610	cultivation facilities, shall have all powers necessary and
611	611	proper to fully and effectively oversee the operation of
612	612	medical cannabis facilities licensed pursuant to this article,
613	613	including the authority to do all of the following:
614	614	(1) Investigate applicants for licenses, determine the
615	615	eligibility for licenses, and grant licenses to applicants in
616	616	accordance with this article and the rules.
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646	646	accordance with this article and the rules.
647	647	(2) Investigate all individuals employed by licensees.
648	648	(3) At any time, through its investigators, agents, or
649	649	auditors, without a warrant and without notice to the
650	650	licensee, enter the premises, offices, facilities, or other
651	651	places of business of a licensee, if evidence of compliance or
652	652	noncompliance with this article or rules is likely to be found
653	653	and consistent with constitutional limitations, for the
654	654	following purposes:
655	655	a. To inspect and examine all premises of licensees.
656	656	b. To inspect and examine relevant records of the
657	657	licensee and, if the licensee fails to cooperate with an
658	658	investigation, impound, seize, assume physical control of, or
659	659	summarily remove from the premises all books, ledgers,
660	660	documents, writings, photocopies, correspondence, records, and
661	661	videotapes, including electronically stored records, money
662	662	receptacles, or equipment in which the records are stored.
663	663	c. To inspect the person , and inspect or examine
664	664	personal effects of an individual who holds a license, while
665	665	that individual is present in a medical cannabis facility of
666	666	the licensee.
667	667	d. To investigate alleged violations of this article.
668	668	(4) Investigate alleged violations of this article or
669	669	rules and take appropriate disciplinary action against a
670	670	licensee.
671	671	(5) Require all relevant records of licensees,
672	672	including financial or other statements, to be kept on the
673	673	premises authorized for operation of the licensee or in the
674	674	manner prescribed by the commission.
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679	679	313
680	680	314
681	681	315
682	682	316
683	683	317
684	684	318
685	685	319
686	686	320
687	687	321
688	688	322
689	689	323
690	690	324
691	691	325
692	692	326
693	693	327
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699	699	333
700	700	334
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702	702	336 SB306 INTRODUCED
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704	704	manner prescribed by the commission.
705	705	(6) Eject, or exclude or authorize the ejection or
706	706	exclusion of, an individual from the premises of a licensee if
707	707	the individual violates this article, rules, or final orders
708	708	of the commission; provided, however, the propriety of the
709	709	ejection or exclusion is subject to a subsequent hearing by
710	710	the commission.
711	711	(7) Conduct periodic audits of licensees.
712	712	(8) Take disciplinary action as the commission
713	713	considers appropriate to prevent practices that violate this
714	714	article and rules.
715	715	(9) Take any other reasonable or appropriate action to
716	716	enforce this article and rules.
717	717	(b) The commission and department shall adopt rules
718	718	addressing the frequency of conducting periodic inspections
719	719	and audits of respective licensees.
720	720	(c) The commission may enter into one or more memoranda
721	721	of understanding with law enforcement agencies to assist with
722	722	enforcement of this article.
723	723	(d) The commission and department may seek and shall
724	724	receive the cooperation and assistance of the Alabama State
725	725	Law Enforcement Agency in conducting criminal background
726	726	checks and in fulfilling its responsibilities under this
727	727	article. The Alabama State Law Enforcement Agency may recover
728	728	its costs of cooperation under this article.
729	729	(e) The commission and department shall assist any
730	730	prosecuting agency in the investigation or prosecution of a
731	731	violation of a controlled substances law.
732	732	(f) Nothing in this article shall affect the authority
733	733	337
734	734	338
735	735	339
736	736	340
737	737	341
738	738	342
739	739	343
740	740	344
741	741	345
742	742	346
743	743	347
744	744	348
745	745	349
746	746	350
747	747	351
748	748	352
749	749	353
750	750	354
751	751	355
752	752	356
753	753	357
754	754	358
755	755	359
756	756	360
757	757	361
758	758	362
759	759	363
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762	762	(f) Nothing in this article shall affect the authority
763	763	of the Alabama Department of Environmental Management to
764	764	administer and enforce any existing law over which the Alabama
765	765	Department of Environmental Management has jurisdiction."
766	766	"§20-2A-53
767	767	(a) The commission , and the department with regard to
768	768	cultivation, shall adopt rules as necessary to implement,
769	769	administer, and enforce this article in a timely manner that
770	770	allows persons to begin applying for a license by September 1,
771	771	2022. Rules must ensure safety, security, and integrity of the
772	772	operation of medical cannabis facilities , that do all of the
773	773	following for each category of license:
774	774	(1) Establish operating standards to ensure the health,
775	775	safety, and security of the public and the integrity of
776	776	medical cannabis facility operations.
777	777	(2) Require a minimum of two million dollars
778	778	($2,000,000) of liability and casualty insurance and establish
779	779	minimum levels of other financial guarantees, if appropriate,
780	780	that licensees must maintain.
781	781	(3) Establish qualifications and restrictions for
782	782	individuals participating in or involved with operating
783	783	medical cannabis facilities.
784	784	(4) Establish an on-site inspection process to be
785	785	conducted at each facility of an applicant prior to being
786	786	issued a license, as well as ongoing on-site inspections of
787	787	the facilities of a licensee.
788	788	(5) Establish standards or requirements to ensure
789	789	cannabis and medical cannabis remain secure at all times,
790	790	including, but not limited to, requirements that all
791	791	365
792	792	366
793	793	367
794	794	368
795	795	369
796	796	370
797	797	371
798	798	372
799	799	373
800	800	374
801	801	375
802	802	376
803	803	377
804	804	378
805	805	379
806	806	380
807	807	381
808	808	382
809	809	383
810	810	384
811	811	385
812	812	386
813	813	387
814	814	388
815	815	389
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818	818	392 SB306 INTRODUCED
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820	820	including, but not limited to, requirements that all
821	821	facilities of licensees remain securely enclosed and locked as
822	822	appropriate.
823	823	(6) Subject to Section 20-2A-66, establish testing
824	824	standards, procedures, and requirements for medical cannabis
825	825	sold at dispensaries.
826	826	(7) Provide for the levy and collection of fines for a
827	827	violation of this article or rules.
828	828	(8) Establish annual license fees for each type of
829	829	license, provided the fee shall be not less than ten thousand
830	830	dollars ($10,000) and not more than fifty thousand dollars
831	831	($50,000), depending on the category of license.
832	832	(9) Establish quality control standards, procedures,
833	833	and requirements.
834	834	(10) Establish chain of custody standards, procedures,
835	835	and requirements.
836	836	(11) In compliance with Chapters 27 and 30 of Title 22,
837	837	establish standards, procedures, and requirements for waste
838	838	product storage and disposal and chemical storage.
839	839	(12) Establish standards, procedures, and requirements
840	840	for securely and safely transporting medical cannabis between
841	841	facilities.
842	842	(13) Establish standards, procedures, and requirements
843	843	for the storage of cannabis and medical cannabis.
844	844	(14) Subject to Section 20-2A-63, establish packaging
845	845	and labeling standards, procedures, and requirements for
846	846	medical cannabis sold at dispensaries.
847	847	(15) Establish marketing and advertising restrictions
848	848	for medical cannabis products and medical cannabis facilities.
849	849	393
850	850	394
851	851	395
852	852	396
853	853	397
854	854	398
855	855	399
856	856	400
857	857	401
858	858	402
859	859	403
860	860	404
861	861	405
862	862	406
863	863	407
864	864	408
865	865	409
866	866	410
867	867	411
868	868	412
869	869	413
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871	871	415
872	872	416
873	873	417
874	874	418
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876	876	420 SB306 INTRODUCED
877	877	Page 16
878	878	for medical cannabis products and medical cannabis facilities.
879	879	(16) Establish standards and procedures for the
880	880	renewal, revocation, suspension, and nonrenewal of licenses.
881	881	(b) The commission, by rule, shall design a universal
882	882	state symbol that is a color image and made available to
883	883	licensed processors to include on all packages of medical
884	884	cannabis, as required under Section 20-2A-63."
885	885	"§20-2A-57
886	886	(a) If any of the following occurs, the commission may
887	887	deny, suspend, revoke, or restrict a license:
888	888	(1) An applicant or licensee fails to comply with this
889	889	article or rules.
890	890	(2) A licensee no longer meets the eligibility
891	891	requirements for a license under this article.
892	892	(3) An applicant or licensee fails to provide
893	893	information the commission requests to assist in any
894	894	investigation, inquiry, or commission hearing.
895	895	(b) The commission may impose civil fines of up to five
896	896	thousand dollars ($5,000) against an individual and up to
897	897	twenty-five thousand dollars ($25,000) or an amount equal to
898	898	the daily gross receipts, whichever is greater, against a
899	899	licensee for each violation of this article, rules, or an
900	900	order of the commission. Assessment of a civil fine under this
901	901	subsection is not a bar to the investigation, arrest,
902	902	charging, or prosecution of an individual for any other
903	903	violation of this article and is not grounds to suppress
904	904	evidence in any criminal prosecution that arises under this
905	905	article or any other law of this state.
906	906	(c) The commission shall comply with the hearing
907	907	421
908	908	422
909	909	423
910	910	424
911	911	425
912	912	426
913	913	427
914	914	428
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916	916	430
917	917	431
918	918	432
919	919	433
920	920	434
921	921	435
922	922	436
923	923	437
924	924	438
925	925	439
926	926	440
927	927	441
928	928	442
929	929	443
930	930	444
931	931	445
932	932	446
933	933	447
934	934	448 SB306 INTRODUCED
935	935	Page 17
936	936	(c) The commission shall comply with the hearing
937	937	procedures of the Administrative Procedure Act when denying,
938	938	revoking, suspending, or restricting a license or imposing a
939	939	fine. The commission may suspend a license without notice or
940	940	hearing upon a determination that the safety or health of
941	941	registered qualified patients, registered caregivers, or
942	942	employees is jeopardized by continuing a facility's operation.
943	943	If the commission suspends a license under this subsection
944	944	without notice or hearing, a prompt post-suspension hearing
945	945	must be held to determine if the suspension should remain in
946	946	effect. The suspension may remain in effect until the
947	947	commission determines that the cause for suspension has been
948	948	abated. The commission may revoke the license or approve a
949	949	transfer or sale of the license upon a determination that the
950	950	licensee has not made satisfactory progress toward abating the
951	951	hazard.
952	952	(d) Any party aggrieved by an action of the commission
953	953	suspending, revoking, restricting, or refusing to renew a
954	954	license, or imposing a fine, shall be given a hearing before
955	955	the commission upon request. A request for a hearing must be
956	956	made to the commission in writing within 21 days after service
957	957	of notice of the action of the commission. Notice of the
958	958	action of the commission must be served either by personal
959	959	delivery or by certified mail, postage prepaid, to the
960	960	aggrieved party. Notice served by certified mail is considered
961	961	complete on the business day following the date of the
962	962	mailing.
963	963	(e) The commission may conduct investigative and
964	964	contested case hearings; issue subpoenas for the attendance of
965	965	449
966	966	450
967	967	451
968	968	452
969	969	453
970	970	454
971	971	455
972	972	456
973	973	457
974	974	458
975	975	459
976	976	460
977	977	461
978	978	462
979	979	463
980	980	464
981	981	465
982	982	466
983	983	467
984	984	468
985	985	469
986	986	470
987	987	471
988	988	472
989	989	473
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992	992	476 SB306 INTRODUCED
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994	994	contested case hearings; issue subpoenas for the attendance of
995	995	witnesses; issue subpoenas duces tecum for the production of
996	996	books, ledgers, records, memoranda, electronically retrievable
997	997	data, and other pertinent documents; and administer oaths and
998	998	affirmations to witnesses as appropriate to exercise and
999	999	discharge the powers and duties of the commission under this
1000	1000	article.
1001	1001	(f) Any person aggrieved by an action of the commission
1002	1002	or the department under this article, within 30 days after
1003	1003	receiving notice of the action, may appeal the action to the
1004	1004	circuit court in the county where the commission or department
1005	1005	is located."
1006	1006	"§20-2A-58
1007	1007	(a) Each license is exclusive to the licensee. A
1008	1008	license, and any interest in or rights under a license, and
1009	1009	any ownership interest or other beneficial interest in a
1010	1010	licensed entity, may not be sold, transferred, assigned,
1011	1011	conveyed, or otherwise disposed of in any manner, in whole or
1012	1012	in part, voluntarily or involuntarily, directly or indirectly,
1013	1013	except upon application to and approval of the commission.
1014	1014	(b) A nonrefundable application fee of two thousand
1015	1015	five hundred dollars ($2,500) shall be paid to the commission
1016	1016	at the time of filing any transfer request under subsection
1017	1017	(a).
1018	1018	(c) The attempted transfer, sale, or other conveyance
1019	1019	of an interest or right in a license, or transfer of an
1020	1020	ownership interest or other beneficial interest in a licensed
1021	1021	entity, without the approval of the commission, shall be
1022	1022	grounds for suspension or revocation of the license or for
1023	1023	477
1024	1024	478
1025	1025	479
1026	1026	480
1027	1027	481
1028	1028	482
1029	1029	483
1030	1030	484
1031	1031	485
1032	1032	486
1033	1033	487
1034	1034	488
1035	1035	489
1036	1036	490
1037	1037	491
1038	1038	492
1039	1039	493
1040	1040	494
1041	1041	495
1042	1042	496
1043	1043	497
1044	1044	498
1045	1045	499
1046	1046	500
1047	1047	501
1048	1048	502
1049	1049	503
1050	1050	504 SB306 INTRODUCED
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1052	1052	grounds for suspension or revocation of the license or for
1053	1053	other sanction considered appropriate by the commission.
1054	1054	(d) Notwithstanding subsections (a) through (c), an
1055	1055	integrated facility license may not be transferred. "
1056	1056	"§20-2A-59
1057	1057	(a) The commission, prior to appointment, employment,
1058	1058	or service for a licensee, shall require all officers,
1059	1059	employees, contractors, and other individuals performing work
1060	1060	of any character who would have access to cannabis, a medical
1061	1061	cannabis facility, or related equipment or supplies , to submit
1062	1062	to a state and national criminal background check. The
1063	1063	commission shall determine the manner in which fingerprints of
1064	1064	the individuals shall be submitted to the Alabama State Law
1065	1065	Enforcement Agency along with a sufficient fee required to
1066	1066	perform the criminal history records background check by the
1067	1067	agency and the Federal Bureau of Investigation.
1068	1068	Notwithstanding any state law to the contrary, all records
1069	1069	related to any criminal background check conducted pursuant to
1070	1070	this subsection shall be accessible and made available, upon
1071	1071	request, by the commission.
1072	1072	(b) If the criminal background check of a prospective
1073	1073	officer, employee, or contractor indicates a pending charge or
1074	1074	conviction within the past five years for a controlled
1075	1075	substance-related felony or a controlled substance-related
1076	1076	misdemeanor, a licensee may not appoint, hire, or contract
1077	1077	with the prospective officer, employee, or contractor without
1078	1078	written permission of the commission; provided, however, a
1079	1079	licensee shall not consider any conviction overturned on
1080	1080	appeal or any charge that has been expunged pursuant to
1081	1081	505
1082	1082	506
1083	1083	507
1084	1084	508
1085	1085	509
1086	1086	510
1087	1087	511
1088	1088	512
1089	1089	513
1090	1090	514
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1099	1099	523
1100	1100	524
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1106	1106	530
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1108	1108	532 SB306 INTRODUCED
1109	1109	Page 20
1110	1110	appeal or any charge that has been expunged pursuant to
1111	1111	Chapter 27 of Title 15.
1112	1112	(c) Each licensee shall enter all transactions, current
1113	1113	inventory, and other information into the statewide
1114	1114	seed-to-sale tracking system in accordance with rules adopted
1115	1115	by the commission and the department ."
1116	1116	"§20-2A-62
1117	1117	(a)(1) A cultivator license authorizes all of the
1118	1118	following:
1119	1119	a. The cultivation of cannabis.
1120	1120	b. The sale or transfer of cannabis to a processor.
1121	1121	c. If the cultivator contracts with a processor to
1122	1122	process its cannabis into medical cannabis on the cultivator's
1123	1123	behalf, the sale or transfer of medical cannabis to a
1124	1124	dispensary.
1125	1125	(2) A cultivator license authorizes the cultivator to
1126	1126	transfer cannabis only by means of a secure transporter.
1127	1127	(b) The commission shall consult with the Department of
1128	1128	Agriculture and Industries when determining the number of
1129	1129	cultivator licenses to issue, provided the commission shall
1130	1130	issue no more than 12 cultivator licenses.
1131	1131	(c) An applicant for a license under this section shall
1132	1132	meet all of the following requirements:
1133	1133	(1) Demonstrate the ability to secure and maintain
1134	1134	cultivation facilities.
1135	1135	(2) Demonstrate the ability to obtain and use an
1136	1136	inventory control and tracking system as required under
1137	1137	Section 20-2A-60.
1138	1138	(3) Demonstrate the ability to commence cultivation of
1139	1139	533
1140	1140	534
1141	1141	535
1142	1142	536
1143	1143	537
1144	1144	538
1145	1145	539
1146	1146	540
1147	1147	541
1148	1148	542
1149	1149	543
1150	1150	544
1151	1151	545
1152	1152	546
1153	1153	547
1154	1154	548
1155	1155	549
1156	1156	550
1157	1157	551
1158	1158	552
1159	1159	553
1160	1160	554
1161	1161	555
1162	1162	556
1163	1163	557
1164	1164	558
1165	1165	559
1166	1166	560 SB306 INTRODUCED
1167	1167	Page 21
1168	1168	(3) Demonstrate the ability to commence cultivation of
1169	1169	cannabis within 60 days of application approval notification.
1170	1170	(4) Demonstrate the ability to destroy unused or waste
1171	1171	cannabis in accordance with rules adopted by the department.
1172	1172	(5) Demonstrate the financial stability to provide
1173	1173	proper testing of individual lots and batches.
1174	1174	(d) A licensed cultivator shall comply with all of the
1175	1175	following, in accordance with rules adopted by the
1176	1176	departmentcommission:
1177	1177	(1) All facilities shall be protected by a monitored
1178	1178	security alarm system, be enclosed, and remain locked at all
1179	1179	times.
1180	1180	(2) All individuals entering and exiting facilities
1181	1181	shall be monitored by video surveillance and keypad or access
1182	1182	card entry.
1183	1183	(3) All employees may not have any conviction within
1184	1184	the past 10 years for a controlled substance-related felony or
1185	1185	a controlled substance-related misdemeanor other than a
1186	1186	conviction that was overturned on appeal or a charge that was
1187	1187	expunged pursuant to Chapter 27 of Title 15.
1188	1188	(4) Cultivatars Cultivars selected by a licensee must
1189	1189	be approved by the department commission prior to acquisition
1190	1190	of plant material for cultivation.
1191	1191	(e) A cultivator shall be subject to inspection by the
1192	1192	departmentcommission.
1193	1193	(f) The cultivation of cannabis pursuant to this
1194	1194	chapter shall be considered an agricultural purpose for
1195	1195	purposes of Section 40-23-4.
1196	1196	(g) Nothing in this section shall be construed to
1197	1197	561
1198	1198	562
1199	1199	563
1200	1200	564
1201	1201	565
1202	1202	566
1203	1203	567
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1206	1206	570
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1208	1208	572
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1216	1216	580
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1222	1222	586
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1224	1224	588 SB306 INTRODUCED
1225	1225	Page 22
1226	1226	(g) Nothing in this section shall be construed to
1227	1227	prohibit the hydroponic growing of cannabis.
1228	1228	(h) The department shall consult with the commission
1229	1229	when adopting rules pursuant to this article. "
1230	1230	"§20-2A-63
1231	1231	(a)(1) A processor license authorizes all of the
1232	1232	following:
1233	1233	a. The purchase or transfer of cannabis from a
1234	1234	cultivator.
1235	1235	b. The processing of cannabis into medical cannabis
1236	1236	which shall include properly packaging and labeling medical
1237	1237	cannabis products, in accordance with this section.
1238	1238	c. The sale or transfer of medical cannabis to a
1239	1239	dispensary.
1240	1240	(2) A processor license authorizes the processor to
1241	1241	transfer medical cannabis only by means of a secure
1242	1242	transporter.
1243	1243	(b) The commission shall issue no more than four
1244	1244	processor licenses.
1245	1245	(c)(1) All medical cannabis products must be medical
1246	1246	grade product, manufactured using documented good quality
1247	1247	practices, and meet Good Manufacturing Practices, such that
1248	1248	the product is shown to meet intended levels of purity and be
1249	1249	reliably free of toxins and contaminants. Medical cannabis
1250	1250	products may not contain any additives other than
1251	1251	pharmaceutical grade excipients.
1252	1252	(2) The department commission shall be responsible for
1253	1253	enforcing Good Manufacturing Practices.
1254	1254	(d) Medical cannabis products may not be processed into
1255	1255	589
1256	1256	590
1257	1257	591
1258	1258	592
1259	1259	593
1260	1260	594
1261	1261	595
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1269	1269	603
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1274	1274	608
1275	1275	609
1276	1276	610
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1280	1280	614
1281	1281	615
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1283	1283	Page 23
1284	1284	(d) Medical cannabis products may not be processed into
1285	1285	a form that is attractive to or targets children, including
1286	1286	all of the following which are prohibited:
1287	1287	(1) Any product bearing any resemblance to a cartoon
1288	1288	character, fictional character whose target audience is
1289	1289	children or youth, or pop culture figure.
1290	1290	(2) Any product bearing a reasonable resemblance to a
1291	1291	product available for consumption as a commercially available
1292	1292	candy.
1293	1293	(3) Any product whose design resembles, by any means,
1294	1294	another object commonly recognized as appealing to, or
1295	1295	intended for use by, children.
1296	1296	(4) Any product whose shape bears the likeness or
1297	1297	contains characteristics of a realistic or fictional human,
1298	1298	animal, or fruit, including artistic, caricature, or cartoon
1299	1299	rendering.
1300	1300	(e) All of the following shall apply to all packages
1301	1301	and labels of medical cannabis products:
1302	1302	(1) Labels, packages, and containers shall not be
1303	1303	attractive to minors and may not contain any content that
1304	1304	reasonably appears to target children, including toys, cartoon
1305	1305	characters, and similar images. Packages shall be designed to
1306	1306	minimize appeal to children and must contain a label that
1307	1307	reads: "Keep out of reach of children."
1308	1308	(2) All medical cannabis products must be packaged in
1309	1309	child-resistant, tamper-evident containers.
1310	1310	(3) All medical cannabis product labels shall contain,
1311	1311	at a minimum, the following information:
1312	1312	a. Lot and batch numbers.
1313	1313	617
1314	1314	618
1315	1315	619
1316	1316	620
1317	1317	621
1318	1318	622
1319	1319	623
1320	1320	624
1321	1321	625
1322	1322	626
1323	1323	627
1324	1324	628
1325	1325	629
1326	1326	630
1327	1327	631
1328	1328	632
1329	1329	633
1330	1330	634
1331	1331	635
1332	1332	636
1333	1333	637
1334	1334	638
1335	1335	639
1336	1336	640
1337	1337	641
1338	1338	642
1339	1339	643
1340	1340	644 SB306 INTRODUCED
1341	1341	Page 24
1342	1342	a. Lot and batch numbers.
1343	1343	b. A license identification number for the cultivator
1344	1344	and a license identification number for the processor.
1345	1345	c. Cannabinoids content and potency.
1346	1346	d. The universal state symbol printed in color at least
1347	1347	one-half inch by one-half inch in size.
1348	1348	(f) The commission shall establish one universal flavor
1349	1349	for all gelatinous cube, cuboid, and lozenge medical cannabis
1350	1350	products.
1351	1351	(g) The following statement shall be included on each
1352	1352	label, if space permits, or as an insert within the package:
1353	1353	"WARNING: This product may make you drowsy or dizzy. Do not
1354	1354	drink alcohol with this product. Use care when operating a
1355	1355	vehicle or other machinery. Taking this product with
1356	1356	medication may lead to harmful side effects or complications.
1357	1357	Consult your physician before taking this product with any
1358	1358	medication. Women who are breastfeeding, pregnant, or plan to
1359	1359	become pregnant should discuss medical cannabis use with their
1360	1360	physicians."
1361	1361	(h) Any advertisement and any package or label may not
1362	1362	contain any false statement or statement that advertises
1363	1363	health benefits or therapeutic benefits of medical cannabis.
1364	1364	(i) The commission may require the implementation of a
1365	1365	digital image such as a QR Code for purposes of tracking
1366	1366	medical cannabis products. The digital image must interface
1367	1367	with the statewide seed-to-sale tracking system.
1368	1368	(j) The commission shall determine what information
1369	1369	from the label shall be entered into the statewide
1370	1370	seed-to-sale tracking system."
1371	1371	645
1372	1372	646
1373	1373	647
1374	1374	648
1375	1375	649
1376	1376	650
1377	1377	651
1378	1378	652
1379	1379	653
1380	1380	654
1381	1381	655
1382	1382	656
1383	1383	657
1384	1384	658
1385	1385	659
1386	1386	660
1387	1387	661
1388	1388	662
1389	1389	663
1390	1390	664
1391	1391	665
1392	1392	666
1393	1393	667
1394	1394	668
1395	1395	669
1396	1396	670
1397	1397	671
1398	1398	672 SB306 INTRODUCED
1399	1399	Page 25
1400	1400	seed-to-sale tracking system."
1401	1401	"§20-2A-67
1402	1402	(a) An integrated facility license authorizes all of
1403	1403	the following:
1404	1404	(1) The cultivation of cannabis.
1405	1405	(2) The processing of cannabis into medical cannabis,
1406	1406	including proper packaging and labeling of medical cannabis
1407	1407	products.
1408	1408	(3) The dispensing and sale of medical cannabis only to
1409	1409	a registered qualified patient or registered caregiver.
1410	1410	(4) The transport of cannabis or medical cannabis
1411	1411	between its facilities.
1412	1412	(5) The sale or transfer of medical cannabis to a
1413	1413	dispensary.
1414	1414	(b) The commission may issue no more than five
1415	1415	integrated facility licenses.
1416	1416	(c)(1) On or after June 1, 2024, only those applicants
1417	1417	that submitted an application for an integrated facility
1418	1418	license to the commission by December 31, 2022, may
1419	1419	participate in the selection process as provided in this
1420	1420	section. Each participating applicant shall provide to the
1421	1421	commission, not later than July 1, 2024: (i) the name and
1422	1422	contact information of at least one individual whom the
1423	1423	commission and review panel described in subdivision (3) may
1424	1424	contact as necessary throughout the license selection process;
1425	1425	and (ii) any amendments to the original application to update
1426	1426	information particularly relating to financial interests and
1427	1427	financial obligations so that all information pertaining to
1428	1428	the application is current.
1429	1429	673
1430	1430	674
1431	1431	675
1432	1432	676
1433	1433	677
1434	1434	678
1435	1435	679
1436	1436	680
1437	1437	681
1438	1438	682
1439	1439	683
1440	1440	684
1441	1441	685
1442	1442	686
1443	1443	687
1444	1444	688
1445	1445	689
1446	1446	690
1447	1447	691
1448	1448	692
1449	1449	693
1450	1450	694
1451	1451	695
1452	1452	696
1453	1453	697
1454	1454	698
1455	1455	699
1456	1456	700 SB306 INTRODUCED
1457	1457	Page 26
1458	1458	the application is current.
1459	1459	(2) The commission, not later than July 15, 2024, shall
1460	1460	publish on its website the updated application for each
1461	1461	participating applicant, as described in subdivision (1). The
1462	1462	commission shall only redact and keep confidential criminal
1463	1463	background check, Social Security numbers, financial account
1464	1464	numbers, and dates of birth, if applicable. The commission
1465	1465	shall immediately include any additional information requested
1466	1466	by the review panel in the respective application published on
1467	1467	the commission's website.
1468	1468	(3) No later than July 15, 2024, the Director of the
1469	1469	Alabama Securities Commission shall convene a review panel of
1470	1470	five individuals to make a determination of whether the
1471	1471	applicants meet the basic eligibility requirements described
1472	1472	in this subsection. The Alabama Medical Cannabis Commission
1473	1473	shall ensure the panel has sufficient resources to carry out
1474	1474	this duty. As expeditiously as possible, the review panel
1475	1475	shall determine, on an objective, pass or fail basis, if the
1476	1476	applicant has included all of the following information:
1477	1477	a. Residency requirements, as required under Section
1478	1478	20-2A-55(a)(10), it being the intent that the requirement set
1479	1479	forth in that section apply to the applicant's beneficial and
1480	1480	not legal ownership of the applicant.
1481	1481	b. Agriculture experience requirements, as required
1482	1482	under Section 20-2A-55(a)(11), it being the intent that the
1483	1483	requirement set forth in that section apply to the applicant's
1484	1484	beneficial and not legal ownership of the applicant.
1485	1485	c. Disclosure of the business structure and disclosure
1486	1486	of the names of all entities and individuals with a
1487	1487	701
1488	1488	702
1489	1489	703
1490	1490	704
1491	1491	705
1492	1492	706
1493	1493	707
1494	1494	708
1495	1495	709
1496	1496	710
1497	1497	711
1498	1498	712
1499	1499	713
1500	1500	714
1501	1501	715
1502	1502	716
1503	1503	717
1504	1504	718
1505	1505	719
1506	1506	720
1507	1507	721
1508	1508	722
1509	1509	723
1510	1510	724
1511	1511	725
1512	1512	726
1513	1513	727
1514	1514	728 SB306 INTRODUCED
1515	1515	Page 27
1516	1516	of the names of all entities and individuals with a
1517	1517	controlling interest in the applicant, as required under
1518	1518	Section 20-2A-55(a)(2) and (3).
1519	1519	d. Confirmation that all parties with an economic
1520	1520	interest submit to a criminal background check, as required
1521	1521	under Section 20-2A-55(b). This requirement shall be broadly
1522	1522	interpreted to include each person who will or may benefit
1523	1523	from the integrated facility business. If the applicant has a
1524	1524	parent or holding company or is under a management or other
1525	1525	vendor agreement with an operating company, individuals
1526	1526	associated with any such company must be included in the
1527	1527	criminal background check.
1528	1528	e. A detailed description of the relationship in the
1529	1529	cannabis industry of each entity and individual required to be
1530	1530	disclosed in the application that confirms that the applicant
1531	1531	has no direct or indirect relationship with another applicant
1532	1532	for an integrated license. Details shall include the nature of
1533	1533	any business both within and outside the state, relating to
1534	1534	the cannabis industry, whether medical or recreational, and
1535	1535	investments in any business that aligns itself as a vendor,
1536	1536	service, or maker of a product used in the cannabis industry,
1537	1537	including companies that are financial or insurance related.
1538	1538	f. Proof that the applicant is in compliance with all
1539	1539	tax filings and other obligations required in each state where
1540	1540	the applicant does business.
1541	1541	g. Completion of a detailed business plan that includes
1542	1542	plans for employment and biographical information about the
1543	1543	managers and operators.
1544	1544	h. Proof of sufficient capital that ensures the
1545	1545	729
1546	1546	730
1547	1547	731
1548	1548	732
1549	1549	733
1550	1550	734
1551	1551	735
1552	1552	736
1553	1553	737
1554	1554	738
1555	1555	739
1556	1556	740
1557	1557	741
1558	1558	742
1559	1559	743
1560	1560	744
1561	1561	745
1562	1562	746
1563	1563	747
1564	1564	748
1565	1565	749
1566	1566	750
1567	1567	751
1568	1568	752
1569	1569	753
1570	1570	754
1571	1571	755
1572	1572	756 SB306 INTRODUCED
1573	1573	Page 28
1574	1574	h. Proof of sufficient capital that ensures the
1575	1575	applicant will be able to produce a high quality medical
1576	1576	cannabis product even if market circumstances require the
1577	1577	business to operate at a loss. Financial projections may not
1578	1578	be based on market success or future earnings.
1579	1579	i. A detailed description of the physical properties
1580	1580	where applicants' operations will be located.
1581	1581	(4) The applicant carries the burden to disclose the
1582	1582	information upon which the review panel will make its
1583	1583	determination and shall immediately provide any additional
1584	1584	information requested by the review panel. The review panel
1585	1585	shall maintain a record of all communications with an
1586	1586	applicant. Upon conclusion of making its determination, the
1587	1587	review panel shall present the results of the determination,
1588	1588	along with the record of all communications and its findings,
1589	1589	to the commission.
1590	1590	(5) Once the review panel makes a final determination
1591	1591	that an applicant meets the basic eligibility requirements in
1592	1592	subdivisions (3) and (4), the review panel shall determine if
1593	1593	each applicant can demonstrate that the applicant will be able
1594	1594	to meet all of the following criteria for readiness of the
1595	1595	cultivation and dispensing operations of an applicant:
1596	1596	a. Within 60 days after the awarding of a license, the
1597	1597	applicant's business has built and possesses an enclosed
1598	1598	cultivation facility that meets all of the following:
1599	1599	1. The structure must be built in accordance with the
1600	1600	plans for the structure submitted with the application.
1601	1601	2. All cannabis must be cultivated using artificial
1602	1602	light exclusively or as a supplement to natural sunlight.
1603	1603	757
1604	1604	758
1605	1605	759
1606	1606	760
1607	1607	761
1608	1608	762
1609	1609	763
1610	1610	764
1611	1611	765
1612	1612	766
1613	1613	767
1614	1614	768
1615	1615	769
1616	1616	770
1617	1617	771
1618	1618	772
1619	1619	773
1620	1620	774
1621	1621	775
1622	1622	776
1623	1623	777
1624	1624	778
1625	1625	779
1626	1626	780
1627	1627	781
1628	1628	782
1629	1629	783
1630	1630	784 SB306 INTRODUCED
1631	1631	Page 29
1632	1632	light exclusively or as a supplement to natural sunlight.
1633	1633	3. The enclosed structure must meet security
1634	1634	requirements of this chapter and rules adopted thereunder.
1635	1635	4. The enclosed structure may be a greenhouse, pod, or
1636	1636	similar structure that protects plants from variable
1637	1637	temperature, precipitation, wind, and other elements.
1638	1638	5. Each cannabis plant or batch of cannabis plants must
1639	1639	be cultivated in an individual receptacle containing soil or
1640	1640	growing media, so as to foster portability, limit
1641	1641	cross-contamination, and facilitate proper monitoring of each
1642	1642	plant.
1643	1643	6. Containers may be for individual plants or for
1644	1644	batches of plants as long as each plant is clearly identified
1645	1645	and traceable.
1646	1646	7. No cultivation is allowed outdoors or directly in
1647	1647	the ground.
1648	1648	b. The applicant's business possesses a minimum of five
1649	1649	dispensing sites that can be opened to the public within six
1650	1650	months after the awarding of a license. The commission shall
1651	1651	inspect these sites to determine whether they meet all the
1652	1652	criteria under Section 20-2A-64 for dispensaries and are
1653	1653	capable of being built and operational within the six-month
1654	1654	period.
1655	1655	(c)(d) An integrated facility licensee shall have the
1656	1656	same authorizations granted to, and shall comply with all
1657	1657	requirements for, cultivators, processors, secure
1658	1658	transporters, and dispensaries, in addition to any other
1659	1659	authorizations or requirements under this section or as
1660	1660	established by rule by the commission.
1661	1661	785
1662	1662	786
1663	1663	787
1664	1664	788
1665	1665	789
1666	1666	790
1667	1667	791
1668	1668	792
1669	1669	793
1670	1670	794
1671	1671	795
1672	1672	796
1673	1673	797
1674	1674	798
1675	1675	799
1676	1676	800
1677	1677	801
1678	1678	802
1679	1679	803
1680	1680	804
1681	1681	805
1682	1682	806
1683	1683	807
1684	1684	808
1685	1685	809
1686	1686	810
1687	1687	811
1688	1688	812 SB306 INTRODUCED
1689	1689	Page 30
1690	1690	established by rule by the commission.
1691	1691	(d)(e)(1) An applicant Once the Alabama Securities
1692	1692	Commission review panel determines an applicant has met all of
1693	1693	the preliminary requirements set forth in subsection (b), the
1694	1694	Alabama Medical Cannabis Commission shall score the remaining
1695	1695	pool of applicants for an integrated facility license shall
1696	1696	provide, as further provided in subdivision (3), based on all
1697	1697	of the following criteria provided by the eligible applicants :
1698	1698	a. A long-term plan for serving the residents of
1699	1699	Alabama by securely providing quality medical cannabis
1700	1700	products to registered qualified patients.
1701	1701	(1)b. A letter of commitment or other acknowledgement,
1702	1702	as determined by commission rule, of the applicant's ability
1703	1703	to secure a performance bond issued by a surety insurance
1704	1704	company payable to the State of Alabama approved by the
1705	1705	commission in the amount of two million dollars ($2,000,000)
1706	1706	or proof that such a bond will be obtainable once an applicant
1707	1707	is licensed.
1708	1708	(2)c. Proof of at least two hundred fifty thousand
1709	1709	dollars ($250,000) in liquid assets.
1710	1710	(3)d. Proof that the applicant has the financial
1711	1711	ability liquid funds necessary to maintain operations for not
1712	1712	less than two years following the date of application by the
1713	1713	presentation of a business plan showing the total estimate for
1714	1714	all expenses, including, but not limited to, expenses for
1715	1715	rent, mortgages, maintenance, security, and insurance;
1716	1716	operation expenses for cultivation and processing facilities;
1717	1717	operation expenses for dispensing sites; and expenses for
1718	1718	salaries, benefits, and taxes. Funds equal to or in excess of
1719	1719	813
1720	1720	814
1721	1721	815
1722	1722	816
1723	1723	817
1724	1724	818
1725	1725	819
1726	1726	820
1727	1727	821
1728	1728	822
1729	1729	823
1730	1730	824
1731	1731	825
1732	1732	826
1733	1733	827
1734	1734	828
1735	1735	829
1736	1736	830
1737	1737	831
1738	1738	832
1739	1739	833
1740	1740	834
1741	1741	835
1742	1742	836
1743	1743	837
1744	1744	838
1745	1745	839
1746	1746	840 SB306 INTRODUCED
1747	1747	Page 31
1748	1748	salaries, benefits, and taxes. Funds equal to or in excess of
1749	1749	the total funds necessary for all of these expenses must be on
1750	1750	deposit in the accounts of the applicant's business. These
1751	1751	deposits must be verified by a sworn statement from an
1752	1752	accounting firm that has been allowed access to the business'
1753	1753	bank accounts to verify deposits and the balance in the
1754	1754	accounts. An applicant's business that has a sworn statement
1755	1755	from an accounting firm that verifies the business has a
1756	1756	minimum of four million dollars ($4,000,000) on deposit in its
1757	1757	bank accounts shall be deemed to have the liquid funds
1758	1758	necessary to maintain operations for not less than two years
1759	1759	without further proof regarding its expenses. The funds on
1760	1760	deposit in the applicant's bank accounts do not qualify as
1761	1761	liquid funds necessary to maintain operations for two years if
1762	1762	any of the funds were borrowed by any owner of the business or
1763	1763	from any third party, were pledged as security for any
1764	1764	obligation, or are subject to repayment to another person
1765	1765	under any obligation or understanding among the parties .
1766	1766	(2) The applicant shall be required to certify under
1767	1767	oath to the commission that the applicant's business: (i)
1768	1768	meets the requirements for the ownership and operation of an
1769	1769	integrated facility license under this act; (ii) meets the
1770	1770	requirements for a performance bond, minimum paid-in capital
1771	1771	or cash investment; (iii) has the funds necessary to sustain
1772	1772	operations for a minimum of two years; and (iv) is in
1773	1773	compliance with the rules of the commission.
1774	1774	(3) For each applicant, each commission member shall
1775	1775	assign a numeric score for each of the criteria enumerated in
1776	1776	subdivision (1) after review and inspection, as appropriate.
1777	1777	841
1778	1778	842
1779	1779	843
1780	1780	844
1781	1781	845
1782	1782	846
1783	1783	847
1784	1784	848
1785	1785	849
1786	1786	850
1787	1787	851
1788	1788	852
1789	1789	853
1790	1790	854
1791	1791	855
1792	1792	856
1793	1793	857
1794	1794	858
1795	1795	859
1796	1796	860
1797	1797	861
1798	1798	862
1799	1799	863
1800	1800	864
1801	1801	865
1802	1802	866
1803	1803	867
1804	1804	868 SB306 INTRODUCED
1805	1805	Page 32
1806	1806	subdivision (1) after review and inspection, as appropriate.
1807	1807	The commission shall drop the highest and lowest numeric score
1808	1808	assigned by each member and thereafter, the commission shall
1809	1809	add the numeric scores assigned by each commission member to
1810	1810	calculate a total score for the applicant. Licenses shall be
1811	1811	awarded to the five applicants that receive the highest
1812	1812	cumulative score.
1813	1813	(e)(f) At the time a license is issued under this
1814	1814	section, the commission shall ensure that the licensee has
1815	1815	secured a performance bond as provided in subdivision (1) of
1816	1816	subsection (d) paragraph (e)(1)b .
1817	1817	(f)(g) A licensee may open and operate up to five
1818	1818	dispensing sites within six months after the date a license is
1819	1819	issued., each of which Each of the dispensing sites must be
1820	1820	located in a different county from any other dispensing site
1821	1821	that the licensee operates; provided, however, the commission
1822	1822	may authorize a licensee to operate a greater number of
1823	1823	dispensing sites if, at least one year after the date when the
1824	1824	maximum number of total dispensing sites authorized under this
1825	1825	section and Section 20-2A-64 are operating, the commission
1826	1826	determines that the patient pool has reached a sufficient
1827	1827	level to justify an additional dispensing site in an
1828	1828	underserved or unserved area of the state. Notwithstanding the
1829	1829	foregoing, a licensee may not operate any dispensing site in
1830	1830	the unincorporated area of a county or in a municipality that
1831	1831	has not adopted a resolution or ordinance authorizing the
1832	1832	operation of dispensing sites under subsection (c) of Section
1833	1833	20-2A-51(c). This subsection shall not be construed to limit
1834	1834	wholesale distribution from integrated facility licensees to
1835	1835	869
1836	1836	870
1837	1837	871
1838	1838	872
1839	1839	873
1840	1840	874
1841	1841	875
1842	1842	876
1843	1843	877
1844	1844	878
1845	1845	879
1846	1846	880
1847	1847	881
1848	1848	882
1849	1849	883
1850	1850	884
1851	1851	885
1852	1852	886
1853	1853	887
1854	1854	888
1855	1855	889
1856	1856	890
1857	1857	891
1858	1858	892
1859	1859	893
1860	1860	894
1861	1861	895
1862	1862	896 SB306 INTRODUCED
1863	1863	Page 33
1864	1864	wholesale distribution from integrated facility licensees to
1865	1865	dispensary licensees."
1866	1866	Section 3. This act shall become effective on June 1,
1867	1867	2024.
1868	1868	897
1869	1869	898
1870	1870	899