WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · HB 445

Summary of House Bill 445: Regulation of Consumable Hemp Products

Bill Number: HB 445
Title: Cannabinoids found in hemp; licensure and regulation of sale of consumable cannabinoid products by Alcoholic Beverage Control Board imposed
Status: Enacted
Introduced: March 18, 2025
Classification: Bill
Subject: Controlled Substances

Purpose and Intent

House Bill 445 aims to regulate the manufacture, distribution, and sale of consumable hemp products in Alabama. The legislation seeks to protect public health and safety by ensuring that these products meet strict testing and labeling standards, particularly those marketed towards minors. The bill prohibits the sale of consumable hemp products to individuals under 21 years of age and establishes a framework for the Alcoholic Beverage Control (ABC) Board to oversee these regulations.

Key Provisions

  1. Licensure and Regulation:

    • The ABC Board is authorized to license manufacturers, wholesalers, and retailers of consumable hemp products.
    • Retail establishments selling these products must be existing liquor stores or similar locations that minors cannot access.

  2. Prohibitions:

    • Sale of consumable hemp products to minors is strictly prohibited.
    • The sale of smokable hemp products and online sales or direct delivery of consumable hemp products is banned.

  3. Testing and Labeling Requirements:

    • All consumable hemp products must undergo testing and meet labeling requirements to ensure quality and safety.

  4. Excise Tax:

    • A 7% excise tax is imposed on the gross sales of consumable hemp products, with proceeds distributed as follows:
      • 50% to the State General Fund
      • 25% to counties (prorated by population)
      • 25% to municipalities (prorated by population)

  5. Consumable Hemp Product Compliance Fund:

    • Establishes a fund to cover the costs associated with the regulation and enforcement of the bill, funded by various fees including:
      • $50 initial license fee for retailers
      • $50 label approval fee for manufacturers
      • Annual license fees of $5,000 for manufacturers and wholesalers, and $1,000 for retailers.

  6. Penalties:

    • Civil and criminal penalties for violations, including fines up to $20,000 per offense.
    • The ABC Board is authorized to seize unlawful consumable hemp products.

  7. Repeal of Previous Law:

    • Repeals Section 13A-12-214.4 of the Code of Alabama 1975, which allowed the sale of psychoactive cannabinoids to adults.

Impact

  • Economic Impact: The bill is expected to generate additional revenue through the excise tax and licensing fees, although the exact amount is undetermined.
  • Public Health: By regulating consumable hemp products, the bill aims to reduce the risks associated with untested and potentially harmful products, particularly for minors.
  • Enforcement Costs: The ABC Board and the Alabama Department of Public Health may incur additional costs for enforcement and compliance, which will be offset by the fees collected.

Timeline

  • Effective Date: The provisions of the bill will take effect on January 1, 2026.
  • Legislative Actions: The bill was passed and enacted on May 27, 2025, following a series of readings and amendments in both the House and Senate.

This summary provides an overview of House Bill 445, detailing its purpose, key provisions, and potential impacts on public health and the economy in Alabama.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.