In 2021, Alabama legalized medical cannabis and established the Alabama Medical Cannabis Commission to oversee the licensing and regulation of the industry. However, even after three years, patients still do not have access to medical cannabis.
APR had a conversation with Paula Savchenko, a consultant and part-owner of Pure by Sirmon Farms. She shared her insights on the future of the cannabis industry in Alabama.
Savchenko acknowledged that Alabama’s application requirements were complex and many in the industry considered them to be one of the most complex in the country. He agreed that a merit-based scoring process was necessary to ensure objectivity and to meet all the necessary regulations during the review process.
Savchenko, however, voiced her disappointment with the way the AMCC has carried out these processes. She stated, “In my opinion, the process suffered a setback due to the constant back-and-forth from the AMCC during the issuance of licenses and the rushed timeline for reviewing all application materials, presentations, and similar documents.”
According to Savchenko, the AMCC deviated from its merit-based scoring process in Alabama. She highlighted the unique challenges faced in the licensing process due to administrative stays. These stays resulted in the issuance and subsequent withdrawal of awarded licenses due to mathematical errors. Moreover, the scoring of each applicant was erased, and instead, voluntary presentations were allowed. Savchenko believes that these changes did not alleviate the biases that were previously raised; instead, they exacerbated the situation.
She continued, suggesting that in future application rounds for the remaining categories that require additional licenses, a merit-based scoring process should be strengthened. She also proposed having two third-party scorers review each application to ensure there are no errors. However, she acknowledged that despite these measures, litigation may still be unavoidable.
When we asked Savchenko about the timeline for Alabamians to have access to medical cannabis, she expressed uncertainty due to ongoing litigation and the limited number of licenses available under the current law. However, she remained hopeful that lawmakers would reach an agreement during the next legislative session to increase the number of dispensary licenses. This would allow the individual license categories to establish their supply chains while the vertically integrated companies continue their legal battles. According to Savchenko, these vertically integrated licenses are the most profitable and less likely to be resolved soon.
Savchenko emphasized the importance of taking legislative action and granting dispensary licenses. She stated, “It is crucial for dispensaries to be licensed soon because licensed cultivators and processors are currently unable to provide any product while still having to meet regulatory requirements. Without allowing cultivators and/or processors to start dispensing, it is uncertain when products will become available in the Alabama market.”
When questioned about the future of medical cannabis on a national scale, Savchenko expressed her thoughts by saying, “On a federal level, cannabis is expected to undergo rescheduling under the Controlled Substances Act, which will eliminate barriers for various industry aspects, such as research, development, and tax deductions for operators. However, licensing is likely to remain a responsibility of the individual states in the foreseeable future.”
“I believe that the primary and glaring problem facing the cannabis industry is its classification as a Schedule I drug. This classification hinders further research, which is crucial for federal agencies to provide clear guidance that can then be implemented at the state level. Once cannabis is rescheduled and more research is conducted, the industry can address the legal ambiguities it has been grappling with for the past decade,” she expressed.
According to Savchenko, it is not impossible for Alabama to legalize recreational use of cannabis in the future. He believes that once the medical cannabis program gains momentum and refines its processes, there is a possibility for legalization, especially if federal laws change. Despite the initial reluctance of many states to legalize cannabis when they first introduce medical programs, it becomes difficult to overlook the economic growth, job opportunities, and tax revenue that other states have benefited from through legalization.
Legalizing cannabis has the potential to bring about significant economic growth in rural areas through job creation, increased tax revenue, and improved infrastructure. As seen in states like Colorado, the sales tax receipts generated from cannabis sales can be reinvested into the city or county’s operating budget, addressing funding gaps in essential projects such as infrastructure renovation. Additionally, the legalization of cannabis can alleviate the strain on law enforcement in Alabama, as they can focus their resources on combating the rising use of methamphetamine, fentanyl, and other opioids, which pose more significant concerns for the state.
Savchenko made a compelling case for why Alabamians should care about ensuring access to medical cannabis. According to Savchenko, while some may not view cannabis as a medicine, access to medical cannabis is crucial in expanding options for personal health decisions. As a society that has witnessed the devastating effects of opioids on local communities, providing a natural alternative can help loved ones manage pain while reducing addiction and overdoses. Savchenko emphasized that even if medical cannabis only helps one person in the community, it should be enough to understand the importance of ensuring access to medical cannabis in their home state.
