Lawyers from an Alabama group and some businesses that applied for licenses in an ongoing process with the Alabama Cannabis Commission are trying to figure out a way forward for the new industry in the state.
Even some companies granted a license in the initial process, which has since been scrubbed, are entangled in negotiations and litigation as a new round of awards are being conducted.
Among those companies awarded a license, the Southeast Cannabis Co., filed a motion in court this week saying the Commission’s willingness to reconsider the license awards feels unjust.
Having been awarded a license twice — on June 12 and Aug. 10 — Southeast Cannabis asserts that neither of these potential reversals were due to any shortcomings on their part.
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Following an intricate application process that spanned several months, the commission finalized its decisions during the summer.
Southeast Cannabis, after being initially awarded a license, saw its license status get “voided” by the commission, only to be “re-awarded” subsequently. This has sparked lawsuits with allegations the commission may have violated the Open Meetings Act during its decision-making processes.
“It is crucial for states like Alabama to strike a balance between ensuring fair licensing procedures and the needs of patients who rely on medical cannabis,” attorneys said in the filing.
In its plea, Southeast Cannabis is seeking a judgment on the commission revoking any licenses granted during the process and whether or not the panel can introduce new regulations.
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Alabama Always, a company that wasn’t awarded a license, has also filed two lawsuits against the commission, alleging the former commission chair had a conflict of interest. That official has since stepped down.
Alva Lambert with the Alabama Medical Cannabis Association told Yellowhammer News in August the process and the problems that accompany it are similar to other states.
“It is not dissimilar from other jurisdictions,” Lambert said. “It’s a highly competitive field with some heavy hitters involved in the process. So you would expect it to be contentious, competitive and I think it’s borne out what the expectations were.”
Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on Twitter @Grayson270
