In a move that could reshape Alabama’s hemp landscape, Governor Kay Ivey signed House Bill 445 into law on May 14, 2025. The statute brings new regulatory oversight to hemp-derived products (such as delta-8, delta-9, and delta-10 cannabinoids), setting clear limits on THC content and imposing stricter rules on licensing, sales, and enforcement.
What the New Law Does
THC caps and product restrictions
Under HB 445, consumable hemp products—like edibles and beverages—are restricted to no more than 10 mg of total THC per serving, with a cap of 40 mg THC per container. The law also explicitly bans all smokable hemp products (including hemp flowers, buds, vapes, and hemp cigarettes) and prohibits synthetic cannabinoids created via chemical synthesis.
Licensing, oversight & taxation
The Alabama Alcoholic Beverage Control (ABC) Board is empowered to license manufacturers, distributors, and retailers of consumable hemp products. Retailers are required to hold a valid license, and local governments must approve these licenses. Additionally, a 10% excise tax will be applied to retail sales of consumable hemp products.
Labeling, testing, and enforcement
All products must carry a certificate of analysis from an independent testing laboratory, confirming their THC and CBD content as well as checking for contaminants like heavy metals, pesticides, and solvents. Packaging requirements are tight: products must be in sealed (child-resistant) containers, cannot appeal to children (e.g., by using cartoon imagery), and must include batch numbers, serving size, THC content, scannable barcode to link to testing data, and required warning labels (e.g., keep out of reach of children, may cause failed drug test, not safe for those under 21 or pregnant).
Unlawful or misbranded hemp products may be seized without a warrant. Penalties for violations range from fines to revocation of licenses and felony charges.
Timeline
While portions of the law take effect on July 1, 2025—including the ban on smokable products and some oversight powers—full enforcement provisions (such as licensing and product regulation) kick in on January 1, 2026.
Reactions: Supporters, Opponents, and Industry Concerns
Supporters, including the bill’s sponsor, Rep. Andy Whitt (R-Harvest), argue the legislation is essential to “put guardrails” around a largely unregulated market and to protect minors. Whitt described the bill as “easy to sponsor but hard to pass,” given pressure from both industry and regulatory critics.
However, hemp businesses and industry advocates warn the bill could cripple small enterprises. Many already sell smokable hemp products, which will now be outlawed. Denise Ali, owner of a Birmingham hemp shop, said roughly 80 % of her inventory could be affected and that the law might force her out of business. Critics also contend the bill’s language is vague, especially regarding whether non-psychoactive CBD products might be swept up in the regulation.
From a regulatory perspective, conservative groups like the Alabama Policy Institute challenged the bill, arguing it legalizes recreational THC use under the guise of hemp regulation.
Broader Context & Future Outlook
The law reflects a growing national trend: after the 2018 Farm Bill legalized hemp (defining it as plant material with less than 0.3 % delta-9 THC), many states have scrambled to regulate psychoactive hemp-derived cannabinoids (like delta-8 and delta-10), citing public health and youth access concerns. Alabama’s step may encourage similar statutes elsewhere, particularly across the South.
Still, much may depend on future legal and federal developments. Litigation is already being considered by industry groups challenging HB 445. And at the federal level, proposed amendments to the 2025 Farm Bill seek to narrow or eliminate the loophole allowing intoxicating hemp cannabinoids.
In Alabama, the transition period before January 2026 will be crucial. Hemp businesses will need to adapt to licensing, compliance, and stricter product standards—or face forced exits from the market.