HB 550 Summary: Alabama Cannabis and Hemp Reform Act of 2013

• Legalizes possession of up to one ounce of cannabis and cultivation of up to 12 cannabis plants for personal use by adults 21 years or older, provided growing occurs in enclosed, locked spaces and is not conducted openly or made available for sale.

• Authorizes the Department of Revenue to regulate cannabis establishments (retail stores, cultivation facilities, product manufacturers, and testing facilities) through licensing, with application fees capped at $5,000 and licenses valid for one year.

• Permits municipalities and counties to limit or prohibit cannabis establishments through ordinances or referendums and to collect local application and licensing fees.

• Establishes a medical cannabis program allowing qualified patients with serious medical conditions to obtain identification cards from county health departments, with physician-recommended usage classified into three tiers allowing purchase or home cultivation of specified amounts.

• Imposes state sales taxes on cannabis sales to be distributed to municipal police departments and sheriff's departments for drug enforcement; requires the Legislature to enact industrial hemp cultivation legislation by July 1, 2014.