A bombshell state audit slams Alabama’s Medical Cannabis Commission for breaking laws and wasting taxpayer cash, including a $204,000 overpayment to lawyers, right as the long-delayed medical pot market eyes an April launch. Patients desperate for relief now face fresh doubts about the program’s trustworthiness. Years of lawsuits from snubbed applicants gain steam from these findings.
The audit by the Alabama Department of Examiners of Public Accounts covers May 2021 to September 2025. It uncovers five clear violations that shake the foundation of this new agency. Lawmakers created it in 2021 to license growers, processors, and shops for medical cannabis.
Audit Uncovers Five Major Law Breaks
State examiners dug deep and found serious gaps in how the commission runs things. The agency violated state rules in five key spots, from sloppy records to secret meetings.
Here is a quick look at the problems:
| Violation Area | Key Issue |
|---|---|
| Records Management | No approved plan to handle or destroy files; missed yearly reports from 2022 to 2025. |
| Open Meetings Act | Minutes from 62 meetings missed details like who attended, times, and locations. |
| Legal Contract | Paid lawyers $604,197 on a $400,000 deal, over by $204,197. |
| Fee Rules | Failed to set fees for cards, licenses, and more via proper public steps. |
| Card Replacement Rule | Made patients report lost cards in 72 hours, tougher than the 10-day law allows. |
These lapses risk tossing out past decisions. The commission must fix them fast to stay legal.
Staff now works on a records plan and better meeting notes.
Lawyers Get Paid Too Much on Fixed Deal
The overpayment grabs the most heat. The commission hired Webster Henry law firm for $400,000, cleared by lawmakers. Bills piled up to $604,197, so lawyers went to the Board of Adjustments. That panel okayed the extra cash.
Executive Director John McMillan calls it out of their hands. The team refused the final bills at first, he says. Still, taxpayers footed the $204,197 bill for work that ballooned beyond limits.
This happened amid heavy legal fights over licenses. The firm helped craft the scoring system that sparked lawsuits. Poor oversight let costs run wild.
Commission spent $4.6 million on pros like lawyers from 2021 to 2025. Fees brought in $2.78 million in that time.
Secret Meetings Fuel Transparency Fears
Open meetings violations hit hard too. Law demands full public notice and clear minutes. Examiners checked 62 meetings and found holes everywhere.
No note of virtual or in-person attendance in many cases. Executive sessions lacked start and end times. One notice skipped the spot altogether.
These slips matter big. Closed-door talks on license picks look shady, backing claims in court fights. Denied companies say the process hid favors.
Records woes add fuel. Without a plan, key files could vanish. The state demands yearly reports, but none came.
One fix in play. Next meeting tackles fee rules properly.
Lawsuits Echo Audit as Launch Nears
Lawsuits piled up since 2021 over botched license scoring. Firms used random University of South Alabama graders, scores swung wild with no fixes. Audit backs gripes on meetings and rules.
Delays stretched five years. Patients wait for relief from pain, seizures, and more. Licenses now out for most growers and shops. Dispensary sales could hit shelves by late April, but trust hangs thin.
Cullivators test products now. Five “seed-to-sale” spots wait on final nods, maybe summer.
Alabama got $25 million in funds, spent $22 million. Most went to staff and outside help.
This mess hits everyday folks. Sick patients suffer longer. Tax dollars chase fixes from rushed starts.
The audit proves growing pains hurt real people. Commission vows changes at April meetings. Patients hope for smooth sales soon. Will leaders rebuild faith before first buds sell? Lawmakers watch close as market blooms.