Consumable Hemp Products Bill Passes Legislature

Alabama House Bill 445 (HB445) passed both Houses of the Alabama Legislature on Tuesday, May 6, and has been sent to the Governor for her consideration.

HB445, sponsored by State Representative Andy Whitt (R-Harvest) and carried in the Senate by State Senator Tim Melson (R-Florence) was introduced March 18. It was read out of the House Health Committee April 8. It passed the House and was sent to the Senate April 10, and was read out of the Senate Fiscal Responsibility and Economic Development Committee April 16, before being brought to the Senate floor Tuesday afternoon.

Sen. Melson immediately offered a substitute for HB445, which was adopted. An amendment by Sen. Roger Smitherman (D-Birmingham) was offered and voted down, followed by an amendment by Sen. Bobby Singleton (D-Greensboro) which was adopted. The substitute, as amended, was adopted by a vote of 19 YEA to 13 NAY. 

Shortly thereafter, the House passed HB445 by a vote of 60 YEA, 27 NAY, and 14 Abstains.

HB445 establishes a comprehensive regulatory framework for consumable hemp products within the state. The legislation aims to protect public health, particularly among minors, by imposing stringent controls on the production, sale, and distribution of these products.

Key Provisions of HB445:

• Licensing and Oversight: The Alabama Alcoholic Beverage Control Board is authorized to license retailers of consumable hemp products and enforce compliance with the new regulations.
• Testing and Labeling Requirements: All consumable hemp products must undergo testing by independent laboratories to ensure safety and quality. Manufacturers are required to provide certificates of analysis detailing cannabinoid content, batch numbers, and the presence of any harmful substances.
• Age Restrictions and Sales Limitations: The sale of consumable hemp products is prohibited to individuals under 21 years of age. Additionally, the sale of smokable hemp products, online sales, and direct-to-consumer deliveries are banned to prevent underage access and ensure controlled distribution.
• Excise Tax and Compliance Fund: A 7% excise tax is imposed on the gross sales of consumable hemp products at the manufacturer and wholesaler levels. The revenue generated is allocated as follows: 50% to the State General Fund, 25% to counties based on population, and the remainder to the Alabama State Law Enforcement Agency for compliance checks and product testing.
• Enforcement and Penalties: The Board is empowered to seize unlawful consumable hemp products and enforce civil and criminal penalties for violations of the regulations.

HB445 does not affect activities related to medical cannabis regulated under Chapter 2A of Title 20 or hemp activities overseen by the Department of Agriculture and Industries. 

Supporters of more stringent cannabinoid regulation have called the present situation a “public safety crisis.“ In a recent joint statement, Eagle Forum of Alabama, ALCAP, Alabama Policy Institute, and the Southeast Law Institute said, “The dangers of psychoactive cannabis products are real, and lives are being damaged and lost due to their use. There is no public safety or health benefit in allowing psychoactive cannabis to be sold in the retail space.”

Criticisms of the final version of HB445 are already circulating, especially in regards to the ban on online sales and direct-to-consumer deliveries. Some feel this presents a barrier to access to those products which are used for therapeutically by physically/medically challenged persons.

Despite these and other criticisms, it is likely that Governor Ivey will sign HB445.

The full text of HB445, as enrolled, is HERE.