Alabama Enacts Strict Regulations on Hemp-Derived THC and CBD Products

News Summary

Alabama has enacted strict regulations on hemp-derived THC and CBD products following the signing of House Bill 445 by Governor Kay Ivey. The law aims to protect children and establish a regulated framework for the industry, imposing limits on product dosage and restricting sales of smokable hemp products. The Alabama ABC Board will oversee licensing and regulation, but critics argue that these restrictions could negatively impact small businesses and push consumers to the black market. The law takes effect on July 1, 2025.

Alabama has officially enacted strict regulations on hemp-derived THC and CBD products following the signing of House Bill 445 by Governor Kay Ivey on May 17, 2025. This law aims to oversee the sale of consumable products containing THC and CBD derived from hemp, marking a significant shift in the state’s approach to cannabis-related goods.

The primary goal of House Bill 445, sponsored by Rep. Andy Whitt of Harvest, is to protect children and establish a regulated framework for the THC industry in Alabama. Under the new legislation, the Alabama Alcoholic Beverage Control (ABC) Board will assume responsibility for licensing and regulating all hemp products, including manufacturing, wholesale distribution, and retail sales.

One of the crucial components of the law is the restriction on the dosage of ingestible hemp products. The bill imposes a limit of 10 milligrams per serving and 40 milligrams per container for consumable THC and CBD items. Additionally, the law now prohibits the sale of smokable hemp products, such as e-cigarettes and vapes.

For retailers selling THC beverages in grocery stores, the law mandates designated areas for such sales and prohibits transactions to individuals under the age of 21. To legally sell THC and hemp products, businesses will need to obtain a license from the ABC Board.

The regulations outlined in the bill have drawn criticism from some store owners who argue that the restrictions are excessively stringent and could negatively impact small businesses. They contend that the limitations may hinder customer access to vital pain relief alternatives. Local company Easy Hemp Co. has defended its position against accusations of lobbying for the bill, stating that its goal was to avoid a total ban on hemp-derived products in the state.

The Alabama Policy Institute has characterized the bill as effectively legalizing marijuana, while other advocacy groups maintain that it unnecessarily complicates access to beneficial hemp products. The law imposes serious consequences for those who sell unregulated products, including fines or a potential Class C felony charge.

Concerns have also been raised that the new regulations might force consumers back to the black market for THC products. Retailers and dispensary staff have voiced apprehensions about the implications of the law, fearing that it could decrease legitimate sales while increasing illicit activities.

As the law is scheduled to take effect on July 1, 2025, businesses are urged to make swift adjustments to comply with the new packaging and sales requirements. The implementation of these regulations is seen by proponents as a step toward safer products for consumers, while critics worry about the potential adverse effects on small enterprises and equitable access to hemp-derived THC products.

This ongoing debate over the regulation of hemp-derived substances reflects the complexities of navigating cannabis legislation in Alabama, as lawmakers strive to balance consumer safety with the interests of local businesses and residents seeking access to hemp-related products.