MONTGOMERY, Ala. (WPMI) — Four hemp products business owners have filed a lawsuit against Gov. Kay Ivey and Attorney General Steve Marshall over HB 445, which goes into effect Tuesday, arguing that it is unconstitutional.
The plaintiffs, Mellow Fellow, LLC, Tasty Haze, LLC, The Humble Hemp Shack, LLC and Seedless Green, LLC, argue that the Alabama Law violations the Commerce Clause as they “effectively prohibiot manufacturers, sellers, and other industry members, including plaintiffs, from transporting or shipping federally protected hemp products through Alabama.”
A hearing on the request of a temporary restraining order is scheduled for 2:00 Monday afternoon
A new survey conducted by the Alabama Wellness Collective (AWC) reveals that House Bill 445 (HB 445), set to take effect July 1, would devastate the state’s hemp retail sector, triggering widespread business closures, layoffs, and the evaporation of millions in local tax revenue.
The findings come just hours ahead of a key court hearing before Judge Anderson in Montgomery County, where legal action is underway to halt implementation of the controversial measure.
Key Findings:
– 2,300 layoffs projected within six months, representing 87% of the retail workforce relating to hemp-derived products.
– 84% of stores expect to turn unprofitable within 90 days.
– $100M in unsellable inventory would need to be written off.
– $36M+ in annual sales tax revenue is at risk of vanishing.
– 62% of store owners would consider relocating to states with more stable regulations.
“This bill isn’t regulation, it’s eradication,” said a spokesperson for the Alabama Wellness Collective. “Our members invested in good faith under current law. Now they’re being told their livelihoods are illegal overnight.”
Retailers surveyed span 45 counties, with economic clusters in Jefferson, Mobile, Madison, Montgomery, and Lee counties. Many are small family-run operations or independent entrepreneurs who have invested heavily in retail buildouts, inventory, and compliance infrastructure. Over 53% carry outstanding loans tied to those investments with personal guarantees with their banks.
Four hemp products business owners have filed a lawsuit against Gov. Kay Ivey and Attorney General Steve Marshall over HB 445, which goes into effect Tuesday, Read More
