Audit Finds Noncompliance by Alabama Medical Cannabis Commission

The Alabama Department of Examiners of Public Accounts found in a recent
audit of the state’s medical cannabis program that the Alabama Medical
Cannabis has failed to follow state law on multiple occasions.

The audit investigated a multi-year period from May 17, 2021, through
September 30, 2025.

Officials noted at least five instances of noncompliance by Alabama
cannabis regulators, including:

- Failure to comply with state record-keeping policies.
- Failure to comply with the Alabama Open Meetings Act.
- Overpayment on a legal services contract by over $200,000.
- Failed to fully establish a licensing and fee structure for the
industry, as required under the state’s medical cannabis law.
- The Commission established an administrative rule for lost or stolen
medical cannabis ID cards that conflicts with state law.

For the overpayment, the receiving vendor had to file a claim with the
Alabama Board of Adjustments to get its payment.

“The total contract amount was $400,000.00 and the vendor received
$604,197.55, resulting in an overpayment of $204,197.55. The overpayment
occurred due to the Commission’s failure to properly monitor payments on
the contract to ensure payments were made within the contract terms.” —
Excerpt from the audit

According to the audit, the Commission has collected $2.78 million in
cannabis licensing fees between 2022 and 2025.