Licensed cultivators could start growing marijuana for Alabama’s new medical cannabis industry in greenhouses or warehouses before the end of the summer.

The Alabama Medical Cannabis Commission will issue licenses to as many as 17 companies to raise the plants, which will be grown in enclosed facilities with round-the-clock video monitoring and tight security.

AMCC board member Rex Vaughn said experts have told him it will take about 14 weeks for plants to be ready for processing to make pills, capsules, gelatinous cubes, oils, patches, and other products. Those could be available to eligible patients in Alabama dispensaries by as early October or November, Vaughn said.

“That’s kind of what our game plan has been,” Vaughn said. “That will put us mid-fall trying to get products available. That’s what we’re hoping for.“

AMCC Assistant Director Daniel Autrey said he was reluctant to speculate but said early next year is probably a good estimate for product availability.

“Again, I hesitate to put a time on that,” Autrey said. “But I think by first quarter of ‘24. And hopefully before. It just kind of depends on the supply chain and a number of things, the challenges the licensees will face.” AMCC Director John McMillan has previously said products could be available late this year or early next year. Alabama is one of 38 states to authorize medical marijuana. The Legislature passed the bill in 2021.

Autrey and Vaughn said lawsuits are a potential snag that could disrupt the timeline. The AMCC announced last week that it was reviewing 90 applicants for licenses from companies that want to cultivate, transport, process, test, and dispense medical cannabis. The AMCC will award the licenses June 12 and issue them about one month later, Autrey said.

Applicants that do not receive a license can appeal that decision to the AMCC. And if that appeal fails, they can take the matter to court, Autrey said.

“Certainly that would be one thing that could delay,” Autrey said. “Absolutely that could delay our program. I would like to think we could skate by that. But we’ll just see.”

There has already been some litigation. Three companies sued the AMCC over what they said were problems with the online application portal that they said caused them to miss the application deadline of Dec. 30, 2022, Alabama Daily News reported. A Montgomery judge heard evidence and ruled in favor of two of the three, requiring the AMCC to accept their applications for review.

Twelve companies applied for cultivation licenses. In addition, the AMCC can issue up to five licenses for integrated facilities that will grow the cannabis. Integrated facilities will also process, transport, and dispense the products. The AMCC posted the names of the applicants in all categories on its website Thursday and posted redacted applications on Friday, along with a form for the public to submit comments.

Some of the applications for cultivator licenses are redacted more heavily than others. Six do not show the location of the proposed cultivation facility. The six that do show the addresses are in Atmore, Centre, Fairhope, Frisco City, Greenville, and McCalla.

The law requires the facilities to be in Alabama. It requires license applicants to show that the majority owners have lived in Alabama at least 15 continuous years before the application date.

Here are the number of applications accepted by the AMCC in Thursday’s announcement and the maximum number of licenses the AMCC can award on June 12:

• Cultivators: 12 applications accepted; limit of 12 licenses to be issued.
• Processors: 11 applications accepted; limit of 4 licenses to be issued.
• Dispensaries: 18 applications accepted; limit of 4 licenses to be issued. (Each licensee can have three dispensary locations.)
• Secure transporters: 9 applications accepted; no limit specified.
• State testing labs: 2 applications accepted; no limit specified.
• Integrated facilities: 38 applications accepted; limit of 5 licenses to be issued. (Integrated facilities will be authorized to cultivate, process, transport, and dispense medical cannabis. Each integrated licensee can have up to five dispensaries).

The licensing categories are part of a sweeping set of regulations in the state law and in rules approved by the AMCC. The goal is to regulate the production of medical marijuana from seed to sale. That starts with the companies that will raise the plants.

Cultivators must grow the plants in enclosed structures using artificial light exclusively or to supplement natural sunlight. A security plan to control access to the plants is required. Criminal background checks are required for employees.

The Alabama Department of Agriculture & Industries will inspect the cultivating facilities at least twice a year. A state testing lab will test samples at least four times a year for pesticides and other hazards. Cultivators must document that they destroyed unused cannabis plant material. .

Alabama Agriculture Commissioner Rick Pate said his agency’s role will be mostly limited to making sure the cultivators follow the rules to secure their facilities, such as video cameras and secured entrances.

“Our only role, and like I said, it’s not an agricultural role, is while the stuff is growing, they have to meet those security requirements and other things that we do require,” Pate said.

Pate said the agency has a larger role in regulating hemp growers in Alabama. Hemp is a form of cannabis that has much smaller amounts of THC, the chemical that causes people to feel high. For example, the department checks to make sure plants do not exceed a limit of 0.3 percent THC content, the legal limit for hemp. Hemp is farmed for CBD oil, which is believed to have health benefits, and has been raised in Alabama for about years.

Pate said one requirement for marijuana cultivators is that the plants must be raised in containers. He said growing it in the ground would have required soil testing for contaminants like metals.

“One of the requirements that came up was whether to let them grow it in the soil,” Pate said. “We made the decision they couldn’t. People are going to be eating it. I guess it’s mostly going to be in some digestible product rather than smokeable so we were concerned that you never know what’s in somebody’s soil.”

Pate said marijuana cultivators will be highly knowledgeable and said he believes most are aligned with partners that have experience raising cannabis in other states.

“I look for a pretty high level of professionalism,” Pate said. “This is not going to be Bubba from whatever Black Belt county that just thinks he can grow good marijuana gets in that business. It’s going to be pretty sophisticated business people.”

Vaughn, who raises row crops and beef cattle on his farm in Huntsville, said cultivators will need a large initial investment and have a small margin for error such as crop failure.

“They will have the ultimate in a controlled environment in how they’re producing these marijuana plants,” Vaughn said. “They really cannot afford any less. They will have to control every aspect in the production part of it to make sure that they’re timely about their production and also that the quality of the plant is protected and the THC content in the plant is what they need it to be when it comes harvest time.”

“It will be intense,” Vaughn added. “I would not want to do it.”

Alabama doctors who receive training in medical cannabis will be able to recommend products for more than a dozen conditions — autism spectrum disorder; cancer-related pain, weight loss, and vomiting; Crohn’s Disease; depression; epilepsy or conditions causing seizures; HIV/AIDS-related nausea or weight loss; panic disorder; Parkinson’s Disease; persistent nausea; post-traumatic stress disorder (PTSD); sickle cell anemia; spasticity associated with multiple sclerosis or spinal cord injury; Tourette’s Syndrome; a terminal illness; and conditions causing chronic or intractable pain.

The legislation allows the products to be pills, capsules, tinctures, gelatinous cubes, oils, creams, patches, suppositories, nebulizers, and liquids or oils for an inhaler. No raw plant materials or products for smoking or eating will be allowed.

The products will be sold in licensed dispensaries in cities and counties that have authorized them with a resolution or ordinance. Birmingham, Huntsville, Mobile, Montgomery, and Tuscaloosa are among the more than 50 cities and nine counties that have given their approval. Here is the list on the AMCC website.

Vaughn said cultivators will need deep financial resources because they can probably expect to wait two or three years before they can get a return on what will be a substantial investment.

“I’ve heard some of the guys say I’m prepared to lose money for the first two years,” Vaughn said. “I think they’re wise to plan that way.”

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