Legislation regulating hemp products in Alabama takes effect July 1. What to know about HB 445.

A bill that would impose strict regulations on the sale of products containing hemp-derived THC will soon take effect in Alabama.HB 445, which authorizes the Alabama Alcoholic Beverage Control Board to regulate all hemp products, including delta-8, delta-9 and delta-10, through the licensure of manufacturers, wholesale distributors and retailers, including grocery stores under certain conditions, kicks in on July 1.While advocates of the bill say their main goal is to protect children from hemp products, opponents say it will undo years of cannabis reform and effectively “destroy the hemp industry in Alabama.”So, how will buyers and sellers actually be affected by the bill? Here’s everything you need to know about HB 445.What’s banned?The bill bans the sale of smokable hemp products and synthetic cannabinoids. This includes:Hemp cigarettesHemp cigarsHemp vapesHemp flowersHemp budsAny variation of these terms to include any product that contains a cannabinoid, whether psychoactive or not.On-premises consumption, placing local businesses like the Avondale Apothecary in jeopardy.What’s allowed?The bill allows the sale of edibles/beverages limited to 10mg of THC per serving. However, these products will be subject to several requirements in terms of packaging, including: Required to remain in the original sealed container as packaged by the producerRequired to have child-resistant packagingMay not bear the likeness or contain cartoon-like characteristics of a real or fictional person, animal, or fruit that appeals to childrenMay not be modeled after a brand of products primarily consumed by or marketed to childrenMay 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 productMust contain a list of all ingredients in descending order of predominance, Must contain the manufacturer’s date and expiration dateMust contain the batch number that corresponds to the certificate of analysisMust contain a scannable barcode or quick response code linked to the certificate of analysisMust contain the total number of milligrams of THC found in the container, the serving size and the total number of milligrams of THC per serving.Additionally, the following warnings are required on each product:To keep the product out of reach of childrenThat consumption of the product may cause the person to fail a drug test due to THC being presentThat the product is not safe or intended for any person under 21 years of ageThat the product is not safe for any person who is pregnant or breastfeedingThat the product may impair a person’s ability to drive and operate machineryLab testingAll products must receive a certificate of analysis issued by an independent testing laboratory that tests the batch from which the product was produced.Those labs must meet the following requirements:Is accredited by a third-party accrediting body as a competent testing laboratory pursuant to the International Organization for StandardizationDoes not have a direct or indirect interest in the producer whose product is being testedDoes not have a direct or indirect interest in a facility that cultivates, processes, distributes, or sells hemp or consumable hemp products in this state or in another jurisdictionLabs must test for the following: Total THC Total CBD THC/CBD ratio, if applicablePercent of THC relative to the original plant materialTerpene profilesHeavy metalsChemical contamination, such as residual solvents remaining after extraction and concentrationMicrobials, including pathogenic microbialsMycotoxinsResidual insecticides, fungicides, herbicides, and growth regulators used during cultivationRetailer requirementsConsumable hemp products may only be sold by retailers licensed by the ABC Board. Additionally, the county or municipality in which the retailer’s business is in must approve them for licensing.Each license applicant must:File a written application accompanied by a nonrefundable fee of $50Provide a valid form of IDConsent to a criminal background checkProvide two sets of fingerprintsPurchase and maintain a surety bond in the amount of $25,000If accepted, applicants must pay an annual license fee of $1,000 and preserve all records, including invoices, canceled checks, and other documentation for a period of three years.The ABC Board and agents acting on its behalf may enter the premises at any time, day or night, to make sure that everything is in order.THC in grocery stores?Drinkable hemp products may be sold in a supermarket, food store, or grocery store, provided the store receives a license from the ABC Board.If licensed, the store must keep hemp beverages in a minimum 500 square feet area separate from nonalcoholic beverages or beverages intended for children, behind glass, and marked with a sign indicating that the beverages contain hemp-derived compounds.This area must be manned at all times by an employee, and the purchase of the products must take place in this area.Online orderingOnline sales, direct delivery, drive-through sales, and direct shipments of consumable hemp products within or into Alabama are strictly prohibited.Those caught could face up to a Class C felonyHemp TaxAn excise tax of 10% will be placed on the sales price of consumable hemp products with 90% of the revenue it generates going to the state general fund.The remaining 10% will go to the county or municipality where the product was sold.PenaltiesThose caught selling hemp products without a license will face the following penalties:First offense$5,000 fineSecond offense $7,500 fineThird offense$10,000 fineClass C felonyRevocation of business licenseThose caught selling to people under the age of 21 will face the following penalties:First offense90-day license suspension$5,000 fine earmarked for the state general fundSecond offense180-day license suspension$10,000 fine earmarked for the state general fundThird offenseLicense revocation$20,000 fine earmarked for the state general fundPotential $20,000 fine for any person who has any proprietary or financial interest of 10% or more in the business.Reactions “I feel that it will destroy hemp industry here in Alabama,” said Joe Resha, CEO of the Avondale Apothecary. “The only thing we’ll be able to sell will be ten milligram drinks, ten milligrams edibles that are individually packaged; everything will have to go. There will be no more on-site consumption, there’ll be no more deliveries, no more e-commerce.”Resha says 90% of his business will be affected. “We put our hearts and souls into building this safe place for our community here: getting people off the black market where they are able to get tested products; they know exactly what they’re getting here versus going on the black market,” he said.Birmingham Mayor Randall Woodfin urged Gov. Ivey to veto the bill, saying that it would drag the state back to “an era of cannabis criminalization, overregulation, and lost opportunity.””Birmingham has led the way in cannabis reform and giving people a second chance,” said Woodfin. “Through Pardons for Progress, we’ve pardoned over 15,000 residents with low-level marijuana convictions — because we believe nobody should be held back in life over something that should have never been criminal in the first place. HB445 threatens that progress.””By limiting access to legal hemp products, burdening small businesses with excessive restrictions, and imposing punitive taxes, this bill doesn’t just regulate — it criminalizes,” he continued. “It locks out entrepreneurs, particularly Black and brown business owners who are often first to be policed and last to get licensed. It creates barriers where we should be building bridges — to opportunity, to equity, and to public health solutions that actually work. Alabama should be investing in the future of this industry — not regulating it into irrelevance.” The bill will take effect on July 1, 2025, with full enforcement beginning on Jan. 1, 2026.