Leaders of two Alabama businesses that grow hemp and sell consumable products with ingredients from the plant said they will adjust to the sweeping restrictions in a new state law.
They also vow to fight to change that law.
HB445, which takes effect July 1, will ban smokable hemp and high-potency gummies, two of the industry’s biggest sellers.
It will be a felony to sell or possess the smokable flowers or pre-rolled cigarettes, harsher than the misdemeanor penalty for marijuana possession.
HB445 puts the hemp-derived products and retailers under regulation by the Alabama Alcoholic Beverage Control Board, imposing a 10% tax, banning some items, and setting up new requirements for packaging, labeling, and testing, as well as civil and criminal penalties for violations.
Online sales into or out of Alabama and direct home shipments will be banned.
“HB445 will likely force many small businesses in Alabama’s hemp industry to shut down or leave the state,” Carmelo Parasiliti, CEO of Green Acres Organic Pharms in Florence, said in an email.
“But Green Acres was born here, and we intend to stay. We will continue to fight for sensible, compassionate reform, to educate the public and lawmakers, and to do everything we can to remain a compliant, ethical, and transparent company.”
Public health risk or help for those in need?
The Legislature passed HB445, by Rep. Andy Whitt, R-Harvest, in May, and Gov. Kay Ivey signed it into law.
Whitt and proponents of the bill said regulations were overdue for products containing THC taken from hemp. THC is the psychoactive ingredient in marijuana.
Hemp and marijuana are both forms of cannabis, but hemp has a much lower THC content.
Cannabis with less than 0.3% THC is considered hemp and is legal under federal and state law.
Supporters of HB445 say companies that make and sell the smokable flowers, gummies, and drinks have been marketing THC by exploiting a loophole in the federal law that legalized hemp for farmers.
“It’s unregulated,” Whitt said. “There was no one that was overseeing it, the distribution of it. Anyone could make these products up, put them in a package and then put them in a store.”
Opponents of the bill said many adults buy the products for relief of pain, anxiety, and sleeplessness.
They said and that the products are especially important considering that Alabama’s medical marijuana industry, authorized by the Legislature four years ago, remains tied up in litigation over licensing disputes, with no products available to patients.
Whitt said he supported the medical marijuana bill and said the delays are disappointing.
But Whitt and others said the lack of oversight for the hemp-derived THC products, sold in some convenience stores and gas stations before HB445, posed a risk to children and the public.
“Anytime you can buy these products between motor oil and the beef jerky, you probably need to think twice before you smoke it or take it as medication,” Whitt said.
‘Is it legal for me or not?’
Businesses that make and sell the products in specialty hemp shops and online said they supported criminal penalties for selling to minors.
But they said the case for HB445 was built on a false premise of protecting children.
They said they supported regulation but that HB445 was an overreach that will close businesses and deprive adults of access to products they say are safer than alcohol and tobacco.
Hemp shop operators said they already limited access in their stores to people 21 and older.
Christian Butts is owner of Seedless Green, which is based in Elberta in Baldwin County.
Butts has a license with the Department of Agriculture and Industries to grow and process hemp.
Seedless Green has stores in Elberta and Gulf Shores that sells flower, gummies, tinctures, salves, and other products, all made in-house. The company is also a wholesaler with customers in Alabama and other states.
Butts said he intends to be careful to follow the new law because he expects to be checked on. He is concerned that the legislation is unclear or poorly understood.
“We’re not going to know the rulings of ABC Board and their structure and exactly how they’re going to put it into words until they come out and put that on the table,” Butt said.
“Once that’s put on the table, we can see if everything is designated properly.”
Butts said police with a search warrant seized a package of hemp flower that was delivered to one of his stores on Friday. He said they checked it and returned it to him after determining it was a legal product.
“They said thank you for doing a good job,” Butts said. “And thank you for doing things seemingly the right way.”
The smokable hemp flower becomes illegal July 1 under the new law.
Butts said it seems like a contradiction that he has a license with the Alabama Department of Agriculture and Industries to grow and process hemp, but that it becomes a felony to sell or possess the smokable hemp flowers on July 1.
He said he hopes to get answers from the Department of Agriculture and Industries about how the new law affects his work as a grower and processor.
“As a farmer processor, I’ve got an agreement with the state of Alabama that says I’m allowed to have flower, and I’m allowed to process flower to make the extraction to put in the gummies and the drinks and everything you said that we can make.
“But how’s that going to work? That’s not in the bill, either. There’s no protection to businesses in this bill.”
“All that’s going to have to get straightened out. But how is that going to get straightened out?”
“What is it? Is it legal for me or not?”
‘Devastating’ criminalization
Parasiliti said that of all his concerns about the law, the new criminal penalty for smokable hemp stands out.
“One of the most alarming components of HB445 is that possession of smokable hemp, a federally legal plant for over six years, will be considered a Class C felony in Alabama as of July 1, 2025,” Parasiliti wrote.
“This penalty applies even if the person is over 21 and the product was legally purchased.
“By comparison, possession of marijuana remains a misdemeanor in the state. This inconsistency is not only unjust, but it’s also dangerous.
“While we fully support efforts to keep these products out of the hands of minors, criminalizing a natural plant that has helped so many people goes against freedom, nature, and God.”
Parasiliti said Green Acres has given away products to some customers with medical needs. He said the new law stops that.
“One of the most devastating elements of HB445 is its criminalization of giving away hemp-derived products even to terminally ill customers,” Parasliti wrote.
“For years, Green Acres has operated a self-funded cancer and Parkinson’s relief program, donating products at no cost to those in need.
“This program was born out of love and community, many of us have lost loved ones to cancer and to see this kind of compassion turned into a crime is deeply disheartening.”
Parasiliti said Green Acres will sell only products allowed under the new law by July 1:
No more than 10 milligrams of naturally occurring Delta 9 THC per serving (gummy or drink).No more than 40 milligrams of naturally occurring Delta 9 THC per container (four 10 mg gummies or drinks per carton).All gummies individually wrapped.Child resistant packaging. Testing by labs certified by the Drug Enforcement Administration.
The products will include gummies, seltzers, tinctures and topicals, Parasiliti wrote.
They will be available at Green Acres’ two stores in Florence plus a third planned in Huntsville, pending licenses issued by the ABC Board.
‘An opportunity to adjust’
The licensing requirement for retailers is part of HB445.
The ABC Board still must develop rules and regulations for licensees. Parts of the law do not take effect until Jan. 1.
Parasiliti said Green Acres will no longer sell products with a version of THC called Delta 8 because it is banned under the new law. The law also bans Delta 10, which Parasiliti said Green Acres has not carried.
Besides the products with THC, hemp shops sell gummies, drinks, topical creams and salves, and other products containing CBD, a non-psychoactive substance, or cannabinoid, found in hemp.
Whitt, the sponsor of the bill, said the legislation was not intended to put the hemp shops out of business and thinks it leaves them room to operate legally.
“I think they will have an opportunity to adjust their business plans to conform to the law and provide products to their customers,” Whitt said.
Because the new law bans online sales into or out of Alabama, Parasiliti said Green Acres will move those operations outside the state.
He said the company will stick with the principles he said it has followed since it started.
“Since our founding, we’ve prioritized rigorous safety standards, patient access, and full legal alignment, always using third-party DEA-certified labs for product testing since day one,” Parasiliti said.
“HB445 introduces major changes to Alabama’s hemp laws, and while it presents significant challenges, we are committed to adjusting our operations while continuing to serve our customers and advocate for sensible reform.”
Butts said he plans to close the Seedless Green store in Gulf Shores and keep the one in Elberta open for now.
Butts thinks his business can survive with his wholesale products and what he will still be able to sell in the Elberta store.
He said has already figured out how to make some adjustments to the new law, like a new requirement that gummies are individually wrapped. He said that will add about 15% to the cost of gummies.
Butts said he will have to let go some longtime employees. He said six families have been supported by jobs with Seedless Green, but most of those jobs are going away.
“I’ve already told them this is what’s happening, and I can’t help it and y’all are going to have to go look for new jobs.”
Butts said he plans to advocate for changes in the law.
“I’m a big fighter for freedom and for responsible safety, that we should have our freedoms,” Butts said.
“If I can go down to the store and get me a bottle of 151 or Jack Daniels, I should surely be able to go down there and get me a couple of pre-rolls, a bag of cannabis.
“That needs to begin to be addressed.”
“And hopefully, we’ll somehow, some way get a recreational bill that includes a decriminalization.”
The controversial law puts hemp-derived products and retailers under regulation by the Alabama ABC Board. Read More
