MJBizMag January 2023 - 41

Connecticut
Rhode Island
can afford to hire the best cultivators,
purchasing agents and attorneys.
" I'm going to give the nod to the local
groups (over the MSOs), " he added. " The
people of the great state of Alabama are
going to be crying bloody murder if all
these licenses go out of state. "
OPPORTUNITY BEYOND 2023
Entrepreneurs considering a move in
Alabama should ask themselves if they
have the capital to sustain what could
be a long period of little revenue.
" Sometimes winning one of the early
licenses is a curse because it's so hard
to make money, and you're just burning
cash for years. Alabama is going to have
barely enough licenses for its program
to take hold. I'm sure it'll be years of
hard work and a lot of brain damage to
get these businesses profitable, just like
it is everywhere, " Czarkowski said.
The program also requires doctors
to take a four-hour course and pay a
ALABAMA
SNAPSHOT*
Ballot initiative or legislation: Alabama Gov. Kay Ivey signed the
Alabama Compassionate Act on May 17, 2021, 11 days after the bill
was passed by the state House of Representatives.
Regulatory agency: Medical Cannabis Commission.
Business license types and fees:
* Vertically Integrated: $2,500 application fee,
$50,000 license fee.
* Cultivation: $2,500 application fee, $40,000 license fee.
* Processor: $2,500 application fee, $40,000 license fee.
* Dispensary: $2,500 application fee, $40,000 license fee.
* Secure Transporter: $2,500 application fee,
$30,000 license fee.
* State Testing Laboratory: $2,500 application fee,
$30,000 license fee.
License caps: Five vertically integrated licenses, each of which
may have up to five dispensary locations; 12 cultivator licenses; four
processor licenses; four dispensary licenses, each of which may have
up to three locations. No limits on the number of secure-transporter
or testing laboratory licenses.
State tax requirements: Alabama patients are required to pay a
9% sales tax and an additional 9% excise tax on every purchase of
medical marijuana, according to SalesTaxHandbook.
Out-of-state applicants: Permitted.
Product types allowed: Capsules, inhalers, nebulizers, suppositories,
tablets, tinctures, topicals and transdermal patches.
Edibles and products that can be smoked or vaped are prohibited.
Anticipated sales launch: Applications were due Dec. 30, 2022, and
will be followed by comment and revision periods. Alabama's rules
say licenses are to be issued July 10. It's not clear when sales will
begin, but late 2023 is possible.
2022 population: 5 million.
Predicted size of market: Up to $90 million during the first year of
medical marijuana sales and $545 million by year four, according to
MJBizDaily estimates.
Local control and opt-in/opt-out rules: Municipalities must vote on
whether to opt into the MMJ program.
Social equity provisions: Alabama requires that at least 20%-25%
of all cannabis business licenses be awarded to companies that are
majority-owned by members of a minority group.
* Data is from the 2022 MJBiz Factbook, MJBizDaily and MJBizMagazine,
unless otherwise noted.
Alabama
Mississippi
fee of up to $300, something that will
undermine physician participation
and, in turn, depress patient
participation.
" I also expect that, for many of these
states coming online in 2023, the
licenses being given out or soon to be
given out are only part of a first round.
And once the state has had a chance to
assess demand, then I expect they will
award more licenses, " Czarkowski said.
" States start small-and then, over time,
programs gradually expand, just like
they have in so many other places. "
mjbizdaily.com | January 2023 41
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MJBizMag January 2023

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