Audit flags violations, $200K overpayment in AMCC

A new State audit has found multiple violations within the Alabama Medical Cannabis Commission (AMCC), including roughly $200,000 in overpayments, adding fresh concern to a program already slowed by years of delays and legal fights.

According to reporting by WBRC, the audit identified issues tied to how the Commission handled contracts and payments, raising questions about oversight as Alabama moves closer to launching its long-awaited medical cannabis market.

The findings could not come at a more critical moment. After repeated setbacks, State officials have said medical cannabis products could reach patients in 2026, though litigation and administrative problems have repeatedly pushed that timeline back.

The audit is the latest in a string of concerns surrounding the Commission’s work.

Since its creation under a 2021 law, the AMCC has faced:

• Scoring errors in license applications
• Multiple lawsuits from denied applicants
• Delays that left patients without access to treatment

Earlier reporting revealed widespread mistakes in the licensing process, including data entry errors and incorrect scoring weights that affected nearly every applicant.

The result has been a stop-and-start rollout. Licenses were issued, paused, and reworked—sometimes more than once—while courts and regulators tried to sort out disputes.

The problems have not come cheap.

A WBRC investigation found the Commission has spent more than $7 million since 2022, including over $1 million on legal expenses tied to ongoing litigation.

At the same time, patients have continued to wait.

When Alabama lawmakers approved medical cannabis, the expectation was that products would be available by late 2023. That deadline passed, and even optimistic projections now place full access years later.

The audit findings also land in the middle of a growing fight at the State House over hemp-derived products — one that critics say could undercut Alabama’s entire cannabis framework before it ever fully launches.

In 2025, lawmakers approved House Bill 445 (HB445), a sweeping measure signed by Governor Kay Ivey that placed strict limits on hemp products. The law banned smokable hemp and imposed caps on THC levels, while requiring new licensing and oversight rules. 

Supporters argued the bill was needed to rein in an unregulated market and protect minors. But hemp businesses warned at the time that the law went far beyond regulation and would cripple a legal industry built under federal law.

That concern quickly turned into legal action.

Four hemp companies sued Gov. Ivey and Attorney General Steve Marshall, arguing the law effectively criminalizes federally legal products and threatens their ability to operate.

Industry leaders have gone further, claiming the law threatens to destroy the hemp sector under the guise of regulation, as enforcement actions and product bans take hold.

Now, a new proposal in the 2026 legislative session is raising the stakes.

Senate Bill 321 (SB321) would classify hemp-derived psychoactive cannabinoids — such as Delta-8 and similar compounds — as Schedule I controlled substances, effectively banning most consumable hemp products in Alabama. This, despite the recent Executive Order from President Trump rescheduling marijuana from Schedule I to Schedule III, for the express purpose of removing barriers to cannabis research and improving access for patients.

The bill would also repeal the State’s current framework that allows regulated sales of certain hemp products to adults, replacing it with outright prohibition.

Industry advocates warn the move could eliminate the vast majority of the State’s hemp market, wiping out businesses that only recently adjusted to the rules imposed under HB445.

Taken together, the crackdown on hemp has raised broader questions about the State’s approach to cannabis policy.

While Alabama has legalized medical cannabis, that program remains stalled amid licensing disputes and regulatory issues. At the same time, lawmakers are moving to restrict or eliminate hemp-derived alternatives that are already available to consumers.

For some observers, the contrast is hard to ignore.

As regulators struggle to launch a tightly controlled medical system, the State is simultaneously narrowing access to hemp products that many residents have used as a substitute — fueling claims that policymakers are reshaping the market rather than simply regulating it.

Despite the audit findings, the Commission continues to move forward with rule changes and licensing steps aimed at launching the program.

Recent proposals show regulators are still refining how the system will operate, even as the first dispensaries prepare to open.

Still, the audit underscores a larger issue: confidence in the process remains fragile to nonexistent.

With money misspent, rules questioned, and the broader cannabis market in flux, State leaders now face renewed pressure to prove the program can be run fairly, efficiently, and within the law — before it finally delivers on its promise to alleviate the suffering of Alabama patients.

For more information on the AMCC, visit https://amcc.alabama.gov.