One of the first cannabis companies to receive a business license from the Alabama Medical Cannabis Commission (AMCC) has asked to join a lawsuit against the commission as a defendant.
The plaintiffs in the suit in Montgomery County Circuit Court against AMCC are three cannabis companies that didn’t receive licenses from the commission in June.
Sustainable Alabama, one of the five companies that received an integrated facility license in June, filed a motion to intervene in the case on Wednesday as a defendant with AMMC.
Shortly after the licenses were announced, the commission put a stay on proceedings due to discoveries by commission staff of "potential inconsistencies in the tabulation of scoring data." The commission also suspended the issuance of previously awarded licenses.
The commission is currently undergoing an independent review of all scoring data. A Montgomery County Circuit Court Judge also issued a stay on the AMCC's licensing proceedings last month.
“The commission voted on June 12, 2023 to award an integrated facility license to Sustainable under the Act and Rules, providing it 14 days to pay its license fee,” attorneys for Sustainable Alabama said in the filing. “Sustainable paid its $50,000 license fee to the Commission the next day, on June 13, 2023. The Act required each applicant to “demonstrate the ability to commence cultivation of cannabis within 60 days of application approval notification.” The application posed the following question: “The number of days, if awarded a license, within which the applicant reasonably projects it will commence operations at this facility.” Sustainable projected 45 days in its application.”
Sustainable’s attorneys wrote, “the notice of award, therefore, required Sustainable to act immediately to fulfill its obligations under the Act and Rules, and it has done so. That work continues, and Sustainable has incurred costs and expenses associated with it.”
“Sustainable also immediately incurred obligations and liabilities upon the Commission’s award of the integrated license. This includes the obligation to close on the purchase of five separate properties throughout Alabama between July 30, 2023, and December 9, 2023, all of which were conditioned on the award of the license by the Commission. Sustainable must perform under those contracts and has begun the work to do so,” attorneys for Sustainable said in the court filing.
The next AMCC meeting is scheduled for July 10.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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