Alabama Lawmakers Advance Controversial Hemp Bill

News Summary

Alabama legislators have voted to advance HB445, a contentious bill that imposes stringent regulations on THC and CBD products derived from hemp. This legislation, supported by Representative Andy Whitt, could jeopardize local businesses selling these items, including Freedom CBD & Wellness in Tuscaloosa. The bill introduces a licensing system, a 10% retail tax, and bans on certain hemp products. Local officials and business owners express concern over potential economic impacts and the push toward illegal markets as Governor Kay Ivey considers the bill.

Alabama lawmakers have voted to advance a controversial bill that could significantly impact businesses selling THC and CBD products derived from hemp. The bill, known as HB445, is poised to impose strict regulations on these products, which could lead to the closure of numerous local establishments.

This legislation, sponsored by Representative Andy Whitt (R-Harvest), aims to tax, regulate, and restrict the sale of various hemp-derived products, including gummies, drinks, vapes, and other items containing THC. The passing of HB445 on Tuesday has raised serious concerns within the local cannabis community, particularly among business owners relying on these products for their livelihoods.

Business owners such as Sonya Lowery, who runs Freedom CBD & Wellness in Tuscaloosa, have expressed their deep apprehension regarding the bill. Lowery indicated that higher-dose gummies and smokable hemp flowers, which account for approximately 90% of her sales, would be outlawed under the new regulations. She voiced concerns about the repercussions for her customers, many of whom rely on these products to manage conditions like pain, anxiety, and sleep disorders.

The bill is currently pending a review by Governor Kay Ivey and could soon be signed into law. If enacted, HB445 would implement a comprehensive licensing system for hemp-derived THC products managed by the Alabama Alcoholic Beverage Control (ABC) Board. Only licensed establishments would be permitted to sell these products, with purchases restricted to individuals aged 21 and older.

In a notable provision, grocery stores larger than 14,000 square feet would be allowed to sell THC beverages provided they obtain an ABC license. A new 10% retail tax is also set to be imposed on these products, in addition to existing state and local sales taxes. All products sold would necessitate child-resistant packaging, a maximum of 10 milligrams of THC per serving, and must undergo testing by an independent laboratory. Furthermore, the bill proposes a ban on smokable hemp products, including flowers, and prohibits the direct shipment of these items to customers.

Critics of the bill, such as Jennifer Boozer, owner of CannaBama in Mobile, believe that the legislation unfairly penalizes responsible retailers while potentially pushing customers toward illegal markets. Boozer emphasized that her store complies with age restrictions and has never sold products to minors, yet the new regulations could threaten her business’s viability.

The reactions from local officials have also been notable. Birmingham Mayor Randall Woodfin has publicly called upon Governor Ivey to veto the bill, characterizing it as a regressive move in the realm of cannabis reform. Woodfin has expressed concern that the strict regulations could hinder economic opportunities and stifle local businesses that play an important role in the community.

The bill is projected to take effect on July 1, 2025, with enforcement measures beginning on January 1, 2026. As the timeline for implementation approaches, many customers of CBD and THC products have voiced their unease over potential restrictions on access to their preferred products and the implications for their health and wellness. Local business owners remain worried that if the legislation is enacted, it could drive consumers back into the black market for hemp-derived products, undermining the very intent of regulation.

As the situation unfolds in Alabama, the future of hemp-derived THC products in the state remains uncertain, with both local businesses and customers anxiously awaiting the governor’s decision on this pivotal legislation.