New Alabama Hemp Bill Headed to the Governor for Signature
Alabama’s new hemp bill, HB 445, has passed both the state House and Senate as of May 7, 2025. It is headed to the Governor for signature.
The bill, which we anticipate will become law, places hemp product regulation under the AL Alcoholic Beverage Control Board (ABC). Only ABC licensees may be a manufacturer, wholesaler, or retailer of consumable hemp products. Retailer licenses are only available to liquor licensees, grocery stores, standalone location hemp stores, and pharmacies. State applications will require local approval.
Notably, the new hemp bill prohibits online sales, direct delivery, drive-through sales, or direct shipments within or into the state.
Smokable hemp products are prohibited, as are psychoactive cannabinoids created by chemical “synthesis, modification, or conversion of another cannabinoid.“
For hemp beverages and edibles, potency limits are 10mgs per serving of Total THC. A beverage serving size may not exceed 12 fluid ounces or 355 milliliters. All edible consumable hemp products must be individually wrapped in single serve packaging. One carton may not contain more than 40 milligrams of total THC. Topical and sublingual products may not contain more than 40 milligrams of total THC.
Products must be tested for “total THC”, which the bill defines as “THC + THCA”. Additionally, they must be tested for the “Percent of THC relative to original plant material (w/w).”
The new hemp bill creates an excise tax of 10% at retail. It contains packaging, labeling, and full panel testing requirements. The bill also appears to have a product registration process. The bill prohibits vending machine sales and all hemp products must be sold to those 21+.
Here is the “enrolled” version of the bill:
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May 7, 2025
This article was co-written by Kight Law attorneys Amber Lengacher and Rod Kight.
No commentary? Don’t you think this will kill the Hemp industry altogether? How will it survive without conversions?
Carol,
Thanks for reading and commenting. I agree with you that this bill is a setback for the hemp industry. In particular, the ban on THCa flower and DTC sales from outside the state are debilitating. Fortunately, though, the industry should be able to weather this and live to fight another day. Once Alabama realizes the disservice it’s doing to its small hemp businesses and the revenue it’s missing, I think things will change for the better.
Rod