Cannabis Legalization and Regulation in Alabama
Alabama has not legalized adult-use cannabis. Recreational possession, sale, and cultivation remain illegal statewide and subject to criminal penalties.
Medical cannabis was legalized in May 2021 through the Darren Wesley “Ato” Hall Compassion Act. The program allows qualified patients with a physician’s recommendation to access medical cannabis products, but smoking and raw flower remain prohibited. Approved forms include tablets, capsules, tinctures, oils, topicals, transdermal patches, suppositories, and edibles. Vaporized oils are permitted, but products cannot exceed 50 milligrams of THC per dose unless specifically approved by a physician for terminal illness.
The Alabama Medical Cannabis Commission (AMCC) is responsible for licensing cultivators, processors, secure transporters, testing labs, and dispensaries, as well as managing patient and physician registrations. After delays and litigation in 2023 and early 2024, the AMCC re-awarded licenses in late 2024, and as of 2025, medical cannabis sales are expected to begin once final approvals and inspections are complete.
Home cultivation is not permitted. Patients must purchase only from state-licensed dispensaries once they open.
Hemp cultivation and hemp-derived CBD products are legal in Alabama if they contain no more than 0.3% THC. Intoxicating hemp-derived cannabinoids such as delta-8 THC have been restricted and are subject to enforcement when sold outside of licensed systems.
For cannabis operators, Alabama represents a highly regulated new market with strong compliance expectations. Licensed businesses must maintain full documentation, including state-issued licenses, ownership records, financial statements, tax IDs, and operating agreements. Because cannabis remains cash-heavy, secure armored transport, reconciled deposits, AML/BSA monitoring, and audit-ready bookkeeping are required to maintain banking relationships. Accurate excise tax and sales tax compliance will be critical once dispensaries open.
The Alabama Medical Cannabis Commission oversees all licensing and regulation of the program. For official program information, licensing updates, and compliance resources, visit: https://amcc.alabama.gov
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