Alabama is a limited license state and has medical use licensing caps based on state population, medical market demand and other factors. The Medical Cannabis Commission is permitted to grant licenses for up to twelve cultivators, four processors, four dispensaries (which each may operate up to three locations in different counties), five integrated facilities (that may grow, process, transport and dispense at up to five dispensing sites in different counties), along with secure transporters and testing laboratories.

Localities in Alabama must proactively opt-in in order to participate in the medical market. A dispensary is not permitted to operate in a municipality unless the municipality has authorized operations in its jurisdiction.

Alabama distributes medical cannabis licenses through a merit system. 

An applicant will not be granted a license if they have been convicted of a controlled substance-related felony or other felony within the past 10 years; provided, however, the commission shall not consider any conviction overturned on appeal or any charge that has been expunged.

Alabama’s medical use sector has restrictions disqualifying potential employees with certain convictions.If the criminal background check of a prospective officer, employee, or contractor indicates a pending charge or conviction within the past five years for a controlled substance-related felony or a controlled substance-related misdemeanor, a licensee may not appoint, hire, or contract with the prospective person without written permission of the commission; provided, however, a licensee shall not consider any conviction that has been expunged.

Alabama does not offer expungements for felony cannabis convictions.