Alabama bill giving ABC Board regulation over THC products derived from hemp awaiting Gov. Ivey's signature
House Bill 445, sponsored by Andy Whitt, would grant the Alabama Alcoholic Beverage Control Board to regulate all consumable hemp products through the licensure of manufacturers, wholesale distributors and retailers of consumable hemp products.
The bill says that under existing law, products that have 'psychoactive cannabinoids found in or derived from hemp may not be sold to minors but are otherwise not regulated.' It also defines THC as 'any tetrahydrocannabinol derived from hemp, including, but not limited to, Delta-8,
Delta-9 or Delta-10.
Under HB445, if passed into law, it would:
Impose testing and labeling requirements on all consumable hemp products sold in this state
Authorize the Alcoholic Beverage Control Board to license retailers of these products
Establish restrictions on retail establishments
Prohibit the sale of consumable hemp products to minors
Prohibit the sale of smokable hemp products
Prohibit online sales and direct delivery of consumable hemp products
Impose an excise tax on consumable hemp products and provide for the distribution of tax proceeds
Establish the Consumable Hemp Product Compliance Fund and provide for expenditures of the fund
Authorize the board to seize unlawful consumable hemp products
Provide for civil and criminal penalties for violations
Repeal Section 13A-12-214.4, Code of Alabama 1975, relating to the sale of psychoactive cannabinoids
If signed into law, HB445 would go into effect on Jan. 1, 2026. After this, 'consumable hemp products distributed into or within the state and offered for sale and sold to consumers in this state shall be governed by this chapter. The Alcoholic Beverage Control Board shall administer
and enforce this chapter and shall adopt rules as necessary to implement this chapter.'
The Consumable Hemp Product Compliance Fund, as stated in HB445, is created within the State Treasury and is said to be administered by the Board. 'All filing fees, annual license fees, and label approval fees collected under this chapter shall be deposited into the fund. Amounts deposited into the fund shall be budgeted and allotted in accordance with Sections 41-4-80
through 41-4-96 and Sections 41-19-1 through 41-19-12.,' the bill says.
The bill defines the contents of the consumable hemp products:
For a beverage or any edible product, a consumable hemp product may not contain more than 10 milligrams of total THC
For any topical, sublingual, or other consumable hemp product not addressed in subdivision (1), one container of a consumable hemp product may not contain more than 40 milligrams of total THC
All edible consumable hemp products shall be individually wrapped in single-serve packaging. One carton may not contain more than 40 milligrams of total THC
A beverage serving size may not exceed 12 fluid ounces or 355 milliliters. One carton may not contain more than four 12-ounce containers
A consumable hemp product may not contain alcohol, other than as a flavoring agent, or any other intoxicating compound other than cannabinoids
The bill said that, if passed, a 10% excise tax would be levied on the retail sales price of consumable hemp products. This is in addition to any other tax imposed by federal, state or local law.
The bill also lists out what each label/packaging for a consumable hemp product must contain at a minimum:
May not bear the likeness or contain cartoon-like characteristics of a real or fictional person, animal, or fruit that appeals to children
Must be child-resistant
A list of all ingredients in descending order of predominance
A scannable barcode or quick response code linked to the certificate of analysis
The batch number that corresponds to the certificate of analysis
The total number of milligrams of THC per serving
May not be modeled after a brand of products primarily consumed by or marketed to children
May not include a statement, artwork, or design that could reasonably mislead an individual to believe that the package contains anything other than a consumable hemp product
The manufacture date and expiration date
The total number of milligrams of THC found in the container and the serving size
This bill was first introduced on March 18, it passed the House on April 10 and then passed the Senate on May 6.
You can read what the full enrolled bill entails below.
Alabama-2025-HB445-EnrolledDownload
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