Alabama Lawmakers Approve Bill Directing Alcohol Regulators To Oversee Consumable Hemp Products

“What I would encourage is that we look at… an economic impact study and maybe a task force… so that way we actually know the facts.”

By Alander Rocha, Alabama Reflector

An Alabama House committee Tuesday approved a bill that would impose new regulations on consumable hemp products amid concerns over youth access and 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.

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.”

“This is exactly what we discussed last week that we were trying to do, was stop this product being served in such a manner,” Whitt said.

In a public hearing Wednesday, opponents of the bill said that there was a lack of data for what Carmelo Parasiliti, founder and CEO of Green Acres Organic Pharms in Florence, referred to as a lawmakers’ “hysteria,” and that data from the Alabama Poison Information Center suggests it is currently affecting less than .1 percent of children in Alabama. Opponents also suggested a study commission to develop “evidence-based policy” on cannabis regulation.

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 sets a five-milligram 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.

“We do have some bad activities that are our problems,” Whitt said, referencing children’s snacks being used to market these products, but he did not reference evidence supporting the claim. “You’ll not see the Doritos, the Airheads and things like that that are strictly marketed for our kids.”

The 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.

Rep. Jeremy Gray, D-Opelika, said he did not oppose the bill but wanted to study the matter further.

“What I would encourage is that we look at… an economic impact study and maybe a task force… so that way we actually know the facts.”

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

This story was first published by Alabama Reflector.