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.
