Governor Ivey Signs Bill Regulating THC, CBD, Hemp, Into Law

By Rick McCann
Blue RAM Media/Gulf Coast News

May 15, 2025

MONTGOMERY, Ala. House Bill 445 which regulates THC, Hemp, and CBD products in the State of Alabama was signed into law yesterday by Governor Kay Ivey.

While some business owners and local politicians including the mayor of Birmingham opposed the law saying that it would be harmful to small business owners, others applauded the bill which is aimed at regulating the manufacturing, wholesale distribution, and retail sale of consumable hemp products containing THC or CBD.

Supporters of the bill said regulations were needed to protect Alabamians, especially children, however, those who support the hemp industry believed this specific proposal would negatively impact good businesses in the state.

HB445 puts the Alabama Alcoholic Beverage Control (ABC) Board in charge of licensing and regulation of hemp THC or CBD manufacturers, wholesale distributors, and retailers.

The legislation also:

  • establishes penalties for selling products to a minor
  • requires specific labeling and testing for products
  • prohibits the sale of any smokable hemp products
  • bans psychoactive cannabinoids created by chemical synthesis, modification, or chemical conversion of another cannabinoid
  • imposes an excise tax of 10% on the retail sales price of consumable hemp products
  • disperses revenue to the State General Fund and local governments
  • creates the Consumable Hemp Product Compliance Fund with money from filing fees, annual license fees, and labeling approval fees to provide for the Board’s administration and enforcement costs
  • provides penalties for selling products without a license or selling to underage customers
  • authorizes the Board to seize unlawful hemp products without a warrant
  • repeals the state law allowing the sale of psychoactive cannabinoids to adults
  • prevents the sale of products for on-premises consumption
  • prevents the sale of hemp products through a vending machine or other self-service display and payment system

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