BIRMINGHAM, Ala. (WBRC) – Small business owners in Birmingham are sounding the alarm over House Bill 445, warning it could devastate Alabama’s hemp industry and force longtime retailers to shut their doors.
The legislation, now awaiting Governor Kay Ivey’s signature, would give the Alabama Alcoholic Beverage Control (ABC) Board authority over consumable hemp products, including those containing delta-8, delta-9, and delta-10 THC. It includes strict licensing requirements, product restrictions, and a 10% excise tax.
“Having the ABC board taking over is not all this is,” said Jenni Otwell, CEO of Magic City Organics. “It’s so much bigger than that. It’s the end of all of our businesses, really, truly.”
Otwell says her company has shipped products nationwide from its Birmingham storefront for the past 10 years, prioritizing education and compliance.
“We have people that are sent to us, referred to us from cancer centers, because they are at their wits end,” she said. “They cannot figure out what to do. They can’t seem to find any sort of relief.”
She says the bill’s regulations would likely force Magic City Organics to relocate out of state.
“We are all real people. We are not criminals,” Otwell said. “We abide by all the laws, and we’ve been self-regulating for seven years.”
Under HB 445, smokable and vape hemp products would be banned, THC limits in edibles would be capped at 10mg per serving, and only adults 21 and older could purchase from a restricted set of retail locations.
“I use cannabis in my everyday life to keep me off SSRIs and NSAIDs,” said Kat, a local mom. “I’m not willing to drink alcohol. I’m not willing to use pills to fight my pain, and I’m here for people like me.”
A local brewery owner also spoke out, calling the measure “failed prohibition” and warning it contradicts the legislature’s own public health goals.
“All that has been accomplished with this is addressing a point-of-sale issue,” he said, “while ignoring the blatant hypocrisy of removing cannabis from shelves and replacing it with tequila and vodka.”
“There are thousands of jobs on the line. There are hardworking, well-meaning people, and this is going to create outcomes that are devastating.”
Birmingham Mayor Randall Woodfin says the bill undercuts small businesses and could push vulnerable residents toward dangerous alternatives.
“This bill does not protect our communities,” he said. “It destroys jobs — and hurts local businesses. This is economic sabotage.”
Woodfin said millions of dollars in revenue is pumped into the state through these businesses.
“For the past seven years, they’ve helped save lives,” Woodfin continued. “But with this bill, you’re pushing everyday people to the black market.”
Business owners are asking Alabamians to call the governor’s office and urge a veto before the bill takes effect.
WBRC reached out to Governor Ivey’s office for comment, and we will update this story when we hear back from them.
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Small business owners in Birmingham are sounding the alarm over House Bill 445, warning it could devastate Alabama’s hemp industry and force longtime retailers to shut their doors. Read More
