Alabama can once again issue medical cannabis business licenses for the first time in nearly two years.
A recent court ruling overturned a temporary restraining order (TRO) that has prevented the Alabama Medical Cannabis Commission (AMCC) from issuing business licenses since January 03, 2024.
The TRO was issued after a lengthy legal battle between licence applicants and the AMCC which have been ongoing since August 2023.
According to newly released court documents from The Alabama Court of Civil Appeals, this TRO was overturned in a unanimous ruling on Friday, meaning the AMCC can resume the licensing process.
The case revolves around the AMCC and its process of issuing licenses for integrated cannabis facilities. Alabama Always had its license application denied three times, with the last rejection occurring on December 12, 2023.
After previous legal challenges, the company sought another review following the third denial, requesting a public investigative hearing and filing an appeal with the AMCC.
Meanwhile, Alabama Always brought the case to to the Montgomery Circuit Court, seeing the circuit court issue the TRO on January 03, 2024, halting the AMCC’s licensing process.
The AMCC and its commissioners appealed this TRO, arguing that the circuit court lacked jurisdiction to intervene in their licensing decisions.
Last week, the appeals court ultimately agreed with the AMCC’s argument, ruling that the TRO was void.
According to court documents, Alabama Always had not yet exhausted all administrative appeal options before going to court.
Under Alabama law, applicants must go through the full administrative review process before they can seek judicial intervention. Since this had not happened, the circuit court lacked jurisdiction to issue the TRO in the first place, making it legally void.
Furthermore, the licensing process had not yet reached a final decision. The AMCC had put an administrative hold on issuing licenses, meaning there was no immediate harm to Alabama Always that justified court action. The court also noted that challenges to the licensing process, including allegations of bias, must be handled through the AMCC’s established procedures before a court can step in.
With the TRO now lifted, the AMCC has the authority to resume issuing medical cannabis licenses, with the biggest legal roadblock now removed.
In a statement, Alabama Always’ legal representative Will Sommerville said: “This Appellate Court Order gave Alabama Always everything we have been asking for since December of 2023: the Court ordered the Alabama Cannabis Commission to abide by the Administrative Procedure Act (APA) in regard to medical cannabis licenses which they had previously refused to do.
“This means that companies who were ‘awarded’ licenses by the Commission will be required to appear at a hearing conducted by an Administrative Law Judge and prove that they satisfy the requirements that the Alabama Legislature set for getting a medical cannabis license.
“We can appear at that hearing and offer facts and offer proof that they are not qualified under the state cannabis law. The Court’s ruling also guarantees that after we have been denied a medical cannabis license, we are entitled to the same hearing in order to prove that we are entitled to a license.”
