SB306 Alabama 2024 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Regular Session 2024

Title

Medical Cannabis Commission; process for issuing integrated facility licenses revised, duties of Department of Agriculture and Industries revised

Summary

SB306 shifts cannabis cultivation regulation to the Alabama Medical Cannabis Commission, creates a strict three-step process to award integrated facility licenses, and bans transfer of those licenses.

What This Bill Does

It moves regulation of cultivation work from the Department of Agriculture and Industries to the Alabama Medical Cannabis Commission, with cooperation from the department. It establishes a three-step licensing process for integrated facility licenses: an eligibility panel determines basic qualifications, a readiness review checks cultivation and dispensing readiness, and the commission scores remaining applicants to award licenses. It tightens eligibility, requires detailed financial and ownership disclosures plus background checks and bonds, and prohibits transferring an integrated facility license. It also sets local authorization rules for dispensing sites and directs shared regulatory authority and cost between agencies.

Who It Affects

• License applicants and licensees (including cultivators, processors, secure transporters, dispensaries, testing laboratories, and integrated facility licensees) who must meet new eligibility criteria, post updated applications, post financial guarantees, undergo background checks, and follow a multi-step licensing process; integrated facility licenses cannot be transferred and are capped, with opportunities to expand dispensing sites under certain conditions.
• State and local regulators and governments (the Alabama Medical Cannabis Commission, the Department of Agriculture and Industries, the Alabama Securities Commission, and local county/municipal authorities) who will implement, enforce, and coordinate the new licensing framework, approve local dispensing sites, and oversee inspections, penalties, and cooperation between agencies.

Key Provisions

• Regulation of cannabis cultivation shifts from the Department of Agriculture and Industries to the Alabama Medical Cannabis Commission, with cooperation from the department.
• A three-step process for awarding integrated facility licenses: (1) basic eligibility determined by a panel appointed by the Alabama Securities Commission, (2) readiness review of cultivation and dispensing operations, (3) scoring by the Medical Cannabis Commission to select licensees.
• Explicit, detailed eligibility requirements for integrated facility licensure and broader licensing categories, including residency, agriculture experience, disclosures of ownership and economic interests, and financial qualifications.
• Prohibition on transferring an integrated facility license; transfers of other license categories may be restricted and require commission approval.
• The Commission may issue up to five integrated facility licenses; cultivator licenses are capped (no more than 12 cultivator licenses), and processor licenses are limited (no more than four).
• Integrated facility licensees may operate up to five dispensing sites within six months of licensing, with possible expansion only if underserved areas justify it and subject to location rules.
• At least one-fourth (or one-fifth for integrated facilities) of licenses must go to entities at least 51% minority-owned and minority-managed, with criteria defined for minority groups.
• Local government controls on dispensing sites: dispensing sites may operate only where authorized by municipalities or counties, with notification requirements.
• Comprehensive background checks for officers, employees, and contractors with access to cannabis or facilities, including state and FBI checks, and penalties for failing to disclose or for disqualifying charges.
• Seed-to-sale tracking, universal state symbol, and strict packaging/labeling rules, including child-resistant packaging, required labeling details, and prohibitions on attractive branding to minors.
• Standards for security, facility inspections, audits, and enforcement powers, including fines, suspensions, revocations, and hearings, with cost recovery for enforcement.
• Financial requirements for applicants, including minimum bonds ($2,000,000), liquid assets ($250,000), and funds to sustain operations for at least two years, verified by sworn statements.
• Rules for testing, manufacturing, and quality control to ensure medical cannabis products are of medical grade and compliant with Good Manufacturing Practices.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Health