Alabama Cannabis Banking

Flourishing within the evolving cannabis market, a domain where Herring Bank stands out for its exceptional services in cannabis banking and financial solutions in Alabama. With comprehensive business and banking strategies tailored for cannabis enterprises, the bank is dedicated to supporting these companies through an in-depth application process for newcomers.

Leveraging significant expertise gained from the complexities of cannabis banking in various regions, Herring Bank is equipped to provide invaluable guidance and support to those embarking on their journey within Alabama’s emerging cannabis sector. As a reliable financial ally in the legal cannabis landscape, the bank plays a pivotal role in aiding businesses to thrive amid the ever-changing regulatory environment.

Herring Bank further enriches its offerings with educational materials and advisory services aimed at helping cannabis businesses navigate the maze of federal and state laws. This strategic approach not only assures compliance with legal requirements but also sets the stage for sustained growth and success in the competitive cannabis market. Their dedication to excellence and innovation in banking practices establishes them as an essential partner for any cannabis business aspiring to excel in the current economic climate.

In the state of Alabama, the landscape of cannabis regulation is distinct and focused primarily on medical use. The Alabama Medical Cannabis Commission (AMCC) was established following the approval of the Medical Cannabis Act 2021-450, signed into law by Governor Kay Ivey on May 17, 2021. This marked a significant development in Alabama’s stance towards cannabis, paving the way for the creation of a regulated medical cannabis program​​​​.

The AMCC oversees the implementation and administration of medical cannabis laws, ensuring that medical cannabis derived from cannabis grown within Alabama is available to registered qualified patients. It also licenses facilities that process, transport, test, or dispense medical cannabis, reflecting a comprehensive approach to managing medical cannabis from cultivation to patient access​​.

Alabama’s medical cannabis law stipulates that registered patients are allowed to possess up to “70 daily dosages” of medical cannabis at a time, with doses of authorized cannabis products capped at a maximum of 50 milligrams for the first 90 days. However, access to cannabis flower material or cannabis-infused edible products is not permitted. Instead, medical cannabis must be in the form of tablets, capsules, tinctures, gel cubes for oral use, gels, oils, creams for topical use, or other specified forms. Notably, patients aged 18 or younger are limited to low-THC cannabis products​​.

The framework for medical cannabis in Alabama is quite specific, with SB 46 detailing that patients must exhaust all other forms of treatment before a physician can recommend cannabis. Furthermore, the legislation imposes daily dose limits and specifies that the prescribed dosage cannot exceed certain thresholds without close supervision by a doctor. The bill also limits the number of dispensary operations to one per county, indicating a cautious approach to the rollout of medical cannabis dispensaries within the state​​.

Regarding taxation, SB 46 introduces a 9% sales tax on the gross proceeds of cannabis purchases, with revenues supporting the Alabama Medical Cannabis Commission and the Medical Cannabis Research Fund, among other provisions​​.

As of now, Alabama does not allow recreational cannabis use, focusing solely on medical cannabis for patients with qualifying conditions. The state is working towards operationalizing its medical cannabis program, with the expectation that medical cannabis products will become available sometime in 2024