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Alabama Pot Co. Sues Regulators Over Rescinded License


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A cannabis processor is suing the Alabama Medical Cannabis Commission and its members in federal court, alleging that its processing license was rescinded without notice or proper justification after it paid a $40,000 licensing fee, in violation of due process rights.


In a complaint filed Monday, Enchanted Green LLC said the Alabama Medical Cannabis Commission, or AMCC, and its members changed the application rules it had relied on and used a process devoid of transparency or a chance to appeal, resulting in the company losing the license, while the commission has thus far kept the license fee.


"The AMCC's actions of repeatedly changing rules, criteria, and parameters for applicants, their submissions, and the awarding of processor licenses was and is unconstitutional and cannot be permitted," Enchanted Green said in the complaint. "The AMCC's decision to go forward with a plan to award licenses without providing the unsuccessful license applicants any legitimate or meaningful opportunity to challenge the denial of their applications and the decisions not to award them licenses is unconstitutional, and cannot be permitted."


According to the complaint, the AMCC first awarded Enchanted Green a license in June 2023, then voted to stay proceedings, voided that award, and re-awarded the license in August, after which Enchanted Green paid its $40,000 license fee.


However, later that month, the commission voted to enact an "administrative stay" on the process, and adopted an emergency rule in October providing "special procedures," then rescinded all the previously awarded licenses, according to the complaint.

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