Alabama Appeals Court Overturns Stay Allowing Medical Cannabis Licenses to be Issued

March 7, 2025 - MONTGOMERY, AL - The legal landscape of medical cannabis in Alabama has witnessed a significant development as the Alabama Appeals Court recently overturned a temporary restraining order (TRO) from Montgomery Circuit Court that has halted the issuance of medical cannabis licenses since 2023.

This ruling could signal that we are finally near to the end in the legal drama that has stalled the state's journey towards providing patients with access to medicinal cannabis.

Chey Garrigan is the founder and executive director of the Alabama Cannabis Industry Association.

"The Alabama Court of Civil Appeals rendered a decision that directed the lower court to release the TRO on the independent license and to lift the stay on the vertical integrated license being awarded," Garrigan explained to the Alabama Gazette.

The Background of the Case

In recent years, the movement to legalize medical cannabis has gained momentum across the United States, with many states implementing laws to allow patients to use cannabis for medicinal purposes. Alabama, traditionally known for its conservative stance on drug policy, joined this movement with the passing of the Darren Wesley 'Ato' Hall Compassion Act in 2021, which was sponsored by State Senator Tim Melson (R-Florence). Named after Rep. Laura Hall's late son, the Act aims to provide relief to patients suffering from a variety of medical conditions, including chronic pain, epilepsy, and multiple sclerosis.

However, the road to implementing this law has been fraught with legal challenges. In 2022, a lawsuit was filed by business entities whose license applications were denied by the Alabama Medical Cannabis Commission (AMCC), that resulted in a stay on the issuance of medical cannabis licenses, effectively stalling the program's progress. The plaintiffs argued that the licensing process was flawed and raised concerns about potential biases and irregularities

The Appeals Court Ruling

On Friday, the Alabama Appeals Court issued a ruling that overturned the stay, thereby allowing the state to proceed with the issuance of medical cannabis licenses. The court's decision was based on a thorough review of the arguments presented by both sides, and it concluded that the stay was not warranted under the circumstances.

In its ruling, the court emphasized the importance of adhering to the legislative intent of the Darren Wesley 'Ato' Hall Compassion Act, which was enacted to alleviate the suffering of patients with qualifying medical conditions. The court also noted that the plaintiffs had not provided sufficient evidence to demonstrate that the licensing process was inherently flawed or biased.

Implications for Patients and Providers

The court's decision to lift the stay has far-reaching implications for both patients and providers in Alabama. For patients, this ruling brings renewed hope and a sense of relief, as they will soon have access to a legal and regulated supply of medical cannabis. Many patients who have been relying on alternative therapies or illicit sources can now anticipate a safer and more consistent supply of the medication they need.

For medical providers and businesses, the ruling opens up new opportunities in the burgeoning medical cannabis industry. Physicians who are certified to recommend medical cannabis can now proceed with registering patients, while businesses can begin the process of applying for licenses to cultivate, process, and distribute medical cannabis products. This development is expected to stimulate economic growth and create jobs in the state's healthcare and agricultural sectors.

"The public is immediately expecting instruction on how to be receiving a certification to apply for a medical cannabis patient card, so they can purchase," Garrigan said.

Challenges and Future Outlook

Despite this significant step forward, the path to fully implementing Alabama's medical cannabis program is not without challenges. One of the biggest roadblocks could be the Alabama Legislature. The plaintiffs in the ongoing litigation, perhaps sensing that their legal case was increasingly unlikely to prevail in the courts, have asked the Legislature to intervene and overturn the license awards.

One of the key hangups has been that the original legislation limited the number of vertically integrated licenses (meaning they can grow, process, transport and sell medical cannabis to the public) to just five. When 36 business groups applied – 31 were doomed to be unhappy with the outcome.

Sen. Melson, who has been openly critical of the Commission his legislation created four years ago, has sponsored a bill that would vacate the license awards, strip the commission of the ability to award the licenses, and increase the number of vertically integrated license to ten. That bill, which is currently being considered by the Senate Agriculture and Forestry Committee, would further delay the process until at least 2026.

Looking ahead, the successful implementation of Alabama's medical cannabis program could serve as a model for other states with similar legislative efforts. It also has the potential to influence the broader national conversation on cannabis policy, particularly as more states consider legalizing cannabis for both medical and recreational use.

Conclusion

The Alabama Appeals Court's decision to overturn the stay on medical cannabis licenses represents a landmark moment in the state's efforts to provide patients with access to therapeutic cannabis. As Alabama moves forward with its medical cannabis program, it will be essential to maintain a focus on transparency, safety, and patient care. With the right regulatory framework and public support, medical cannabis has the potential to significantly improve the quality of life for many Alabamians.

(Brandon Moseley contributed to the composition of this article.)