Alabama Advances HB445: New Regulations on Hemp and THC Sales

News Summary

Alabama has approved HB445, a new bill aiming to regulate the sale of hemp and THC products. Sponsored by Rep. Andy Whitt, it restricts sales to those aged 21 and older, imposes a 10% tax, and requires licensing for retailers. The bill addresses concerns over marketing to minors and includes hefty penalties for non-compliance. However, some small business owners and local officials oppose the regulations, fearing negative impacts on small enterprises and accessibility to healing products. The bill awaits Governor Ivey’s signature to become law.

Alabama has taken a significant step in regulating the sale and distribution of hemp and THC products after the House of Representatives and Senate approved a new bill known as HB445. The legislation is now awaiting the signature of Governor Kay Ivey to become law.

Sponsored by Rep. Andy Whitt (R-Harvest), HB445 aims to restrict the sale of hemp products such as drinks and gummies to individuals aged 21 and older. The bill introduces a 10% tax on these products and limits sales of THC products to licensed establishments overseen by the Alcoholic Beverage Control (ABC) Board. Additionally, the bill caps serving sizes for THC products at 10 milligrams.

The legislation comes in response to growing concerns regarding the marketing of high-THC gummies and snacks, particularly in convenience stores that may appeal to young audiences. Rep. Whitt has highlighted the importance of protecting minors from potential harm associated with THC consumption. This regulation is part of an overarching effort to align age restrictions for access to THC products with existing laws concerning alcohol and tobacco, which are also set at 21 years of age.

As HB445 awaits the governor’s signature, its provisions include requiring retailers to have specific licenses and imposing strict penalties, including fines up to $20,000 for non-compliance. The bill is designed to ensure product safety through rigorous regulations and testing protocols.

Opponents of the bill include several small business owners who argue that these regulations could threaten their operations. For instance, Carmelo Parasiliti from Green Acres Organic Pharms has expressed concerns about how the bill might jeopardize small businesses and affect programs that serve cancer patients. In response, Parasiliti has initiated a petition on Change.org, which has attracted nearly 1,300 signatures urging Governor Ivey to veto the bill.

Criticism has also come from Birmingham Mayor Randall Woodfin, who argues that the bill favors large corporations and could jeopardize local jobs and businesses. Additionally, Rep. Curtis Travis (D-Tuscaloosa) has raised concerns about accessibility to legal alternatives for pain management, stressing that the new regulations might limit options for those seeking relief from health issues.

If enacted, the bill will facilitate the sale of THC products in designated areas of grocery stores, strictly for customers aged 21 and older. Along with HB445, a related measure, House Bill 8, seeks to enforce similar age restrictions on vape products and eliminate self-service sales in areas accessible to minors.

The passage of HB445 reflects a bipartisan acknowledgment of the need to impose stricter controls on the hemp and THC market in Alabama, often described as resembling a “wild west” scenario. House Speaker Nathaniel Ledbetter (R-Rainsville) has praised these measures as crucial for enhancing youth protection across the state.

As Governor Ivey considers the bill, it is noteworthy that if she does not take action by the end of Wednesday, HB445 will automatically become law. The implications of this bill are significant, indicating a shift in how Alabama intends to manage the increasingly popular market of hemp and THC products.