On Thursday, members of the Alabama Medical Cannabis Commission (AMCC) cut most cannabis business license fees by 25%.
Almost all of the state's medical cannabis program has been stalled in ongoing litigation. Oral arguments for one medical cannabis-related lawsuit in the Alabama Court of Civil Appeals are set for January 13.
The AMCC's earlier vote at the meeting to reduce the fees on Thursday by 66% failed. After that vote, a motion to cut the fees by 25% for holders of state testing laboratory, processor, cultivator, and secure transporter licenses issued in December 2023 passed.
"It is just a one-time reduction. They'll return to the fee schedule that was adopted by the commission in 2022 after that," Brittany Peters, an AMCC spokesperson, told 1819 News on Thursday.
The annual license fees range from $30,000 to $40,000. According to Peters, the revenue loss to the AMCC from the fee cut is $147,500.
John Reeves, an owner of CRC of Alabama, said at a November meeting that he and other cultivator license holders requested the reduction because "we're operating and have absolutely nothing coming in."
"A lot of us, including CRC was prepared to work at a loss for several years if we needed to, but we did not prepare to work at a total loss. As many of you know, this litigation has gone on a lot longer than anybody anticipated," Reeves said. "While I can not sit here today and speak for the dispensaries or the processors, I can tell you for the cultivators; it costs a lot of money to run a cannabis cultivation plant. There are irrigation systems to put in, a complete revamping of your facilities, there's just so much that goes into it not to mention the labor. There's just a lot there."
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.
