On May 17, 2021, Gov. Kay Ivey signed a legalization bill into law making Alabama the 38th state to legalize medical cannabis for adults and minors with certain conditions under a doctor’s recommendation. The law created the Alabama Medical Cannabis Commission to license in the following categories: cultivator, processor, dispensary, transporter, testing laboratory and “integrated facility” (which can cultivate, process, transport, and dispense medical cannabis under one license), as well as to supervise the program.

Regulators in Alabama approved rules for the regulation and licensing of medical cannabis in August 2022. From September 1, 2022 – October 17, 2022, the Commission accepted Requests for Business Applications for a license for an integrated facility, cultivator, processor, secure transporter, state testing laboratory or dispensary. The Commission received 607 Request for Application.

Once the program is launched, doctors will be able to recommend medical cannabis to patients for the treatment of autism; cancer-related weight loss or chronic pain; Crohn’s; depression; epilepsy or other conditions causing seizures; HIV/AIDS-related nausea or weight loss; panic disorder; Parkinson’s; persistent nausea that is not related to pregnancy; PTSD; sickle-cell; spasticity associated with ALS, multiple sclerosis and spinal cord injuries; terminal illnesses; Tourette’s; and chronic pain where conventional therapies or opiates should not be used or are ineffective.

Medical cannabis will be allowed in the forms of tablet, capsule or tincture, non-sugarcoated gelatinous cube, cuboid or lozenge, gel, oil, cream or other topical preparation, transdermal patch, nebulizer, liquid or oil only for an inhaler and suppository with the daily dosage cannot exceed 50 milligrams of THC.

In December 2023, Alabama regulators issued 25 medical cannabis business licenses to 5 integrated facilities, 4 dispensaries, 7 cultivators, 4 processors, 4 transport providers and 1 testing laboratory.

Sales in the Alabama cannabis market are expected to begin in 2024. MJBizDaily projects that the state medical cannabis program could generate $80 million-$90 million in sales in its first year once it gets going and $450 million-$545 million in annual sales by its fourth year.

Alabama Cannabis Market Infographics