Alabama Approves Bill Directing Alcohol Regulators To Oversee Hemp Products

alabama

On April 8, an Alabama House committee approved a bill that would impose new regulations on consumable hemp products amid concerns over youth access as well as a lack of oversight of the products.

HB 445, sponsored by Rep. Andy Whitt, R-Harvest, would give the Alabama Alcoholic Beverage Control (ABC) Board authority to license and regulate the manufacturing, distribution and retail sale of hemp-derived consumables and banning their sale to anyone under 21, according to Alabama Reflector.

At the hearing, Whitt said that there were “recent developments” that made the bill more urgent and read a press release from Herbal Oasis, a company that produces hemp-derived products that planned to expand to Alabama, saying “their product will be in convenience stores, grocery stores and other locations throughout Alabama and Florida Panhandle, starting in late March.”

Alabama Bill Regulations

As explained by Alabama Reflector, under the proposed law, consumable hemp products could only be sold in regulated, 21-and-over retail environments — either standalone hemp product stores or existing off-premise liquor stores approved by local authorities. The bill also sets a 5 mg THC limit per serving and prohibits marketing or packaging that appeals to minors. It also bans vending machines and self-serve displays for such products.

At the hearing, Whitt referenced children’s snacks being used to market these hemp products, which the FTC and FDA have previously warned manufacturers about. In 2023, a variety of cannabis companies received joint FTC-FDA cease and desist letters for deceptive packaging that mimicked the look of candy and snack brands popular with children.

The Alabama bill also creates civil and criminal penalties, such as fines starting at $1,000 for exceeding allowed THC percentages or a Class C misdemeanor, with punishments of up to 30 days in jail and up to a $500 fine, for failing to keep records like invoices for inspection, an excise tax and a dedicated compliance fund. It would repeal an existing law that currently allows the sale of psychoactive cannabinoids to adults.

The bill passed by voice vote and now moves to the full House for consideration.