Council running out of time to approve medical marijuana dispensary

City Attorney Herman Marks said last week the council would have to pass a proposed ordinance soon enough to give anyone who wants to have a dispensary in the city time to find a location before applying with the state.

Applications have to be submitted before the Dec. 30 deadline to the Alabama Cannabis Commission, which will approve no more than 37 dispensaries throughout the state. As of Friday, the state has received 239 applications for dispensaries, the commission website says.

Alabama was the 37th state to approve medical marijuana when it adopted a law last year, although marijuana — whether recreational or medicinal — remains illegal under federal law. Under federal law it is a Schedule 1 drug — like LSD or heroin — but federal enforcement has eroded since about 2013, clearing the way for states to legalize marijuana possession and sale.

Marks presented a proposed ordinance at last week’s meeting for a first reading, but the council wants to make changes so a called meeting is scheduled for 4:30 p.m. Monday in the Council Chambers at Decatur City Hall.

“We will get it done,” Council President Jacob Ladner said even though he’s been clear that he opposes legalizing medical marijuana sales in Decatur.

Joey Robertson, of Wagon Trail Hemp Farms in Cullman, said Friday they are “running on a timing limit” to meet the state deadline. However, he said he believes they can get everything done for the Decatur dispensary if the council passes the ordinance at its Dec. 6 meeting.

“We’ll be OK as long as we’ve got to get a letter of intent or lease that shows we have a location (for a dispensary),” Robertson said. “We won’t start modifying the space until June when they (Cannabis Commission) make the decisions on who gets dispensaries.”

Chris Johnson, of Alabama Hemp Co. in Cullman, will be one of Robertson’s competitors for a dispensary in Cullman. He said most people who want to open a medical marijuana dispensary have already identified a possible location because the deadline is looming.

Marks' proposed ordinance presented last week requires a 1,000-foot buffer between a dispensary and residential areas, schools, churches and child care facilities, but council will consider changes to the buffer, Ladner said.

Councilman Kyle Pike said there’s concern a 1,000-foot buffer would make it hard to find a place in the city for a medical marijuana dispensary because most of the city’s business areas are near either a residential area, church or school.

Robertson, who has a CBG and hemp business in Cullman, said he has identified two possible locations “that are not too far off the Beltline (Road Southwest)” where he would like to open a medical dispensary. He said the concern is there are apartments not far from both locations.

Ladner said one change to the proposed medical marijuana ordinance the council will be considering is taking the R-4, attached multi-family resident, zoning out of the buffer. The R-4 zoning is where apartments can be located.

A revision of the proposed ordinance that is posted on the city website says a medical cannabis dispensing site can't be closer than 500 feet from the boundaries of any residential zoning district except for the R-4 zoning district. It also says a dispensary can't be located within the boundaries of any R-4 zoning district.

Robertson said one of the reasons his company is looking at Decatur is Huntsville’s newly approved ordinance “is very restrictive” because it only allows medical marijuana dispensaries in its medical districts.

“The whole reason we started talking to Decatur is because getting Decatur really opens things up to that city and several other surrounding communities,” Robertson said.

Johnson said the state wants to limit the number of medical marijuana dispensaries "to keep the new business from becoming like the CBD stores where there’s one on every corner. They don’t want dispensaries to go under just after they open. It also keeps them out of each other’s backyards.”

The Commission may award up to 12 cultivator licenses, four processor licenses, four dispensary licenses, five integrated facility licenses and an unspecified number of secure transport and state testing laboratory licenses.

Robertson’s company is applying for one of the licenses for an integrated dispensary facility in Cullman County, which along with the city of Cullman has authorized the facilities.

Robertson’s company began producing CDB products in 2019, and he plans to grow marijuana and then refine it before shipping it out to a dispensary.

Robertson said only a few people will be able to afford an integrated dispensary facility or even the license that will cost $50,000. He estimated it will cost $6 million to do a buildout to begin producing medical marijuana products.

The Cannabis Commission’s website said medical cannabis products that can be produced and recommended to patients include tablets, capsules, tinctures, gelatinous cubes, gels, oils or creams for topical use, suppositories, transdermal patches, nebulizers, or liquids or oils for use in an inhaler.

Raw plant materials, products administered by smoking or vaping, or food products such as cookies or candies will not be allowed.

Under Alabama’s program, registered physicians may recommend medical marijuana to patients who have been diagnosed with autism spectrum disorder; cancer-related pain or nausea; Crohn’s Disease; depression; epilepsy or conditions causing seizures; HIV/AIDS-related nausea or weight loss; panic disorder; Parkinson’s Disease; persistent nausea; post-traumatic stress disorder (PTSD); sickle cell anemia; spasticity associated with multiple sclerosis or spinal cord injury; Tourette’s Syndrome; a terminal illness; or conditions causing chronic or intractable pain.