Oppositional Alabama Hemp Restriction Bill Signed into Law by Governor

On Wednesday, May 14, 2025, Alabama Governor Kay Ivey, signed into law a hemp restrictions bill that has received much opposition from the hemp industry (1). The bill is known as HB 445 and will implement new requirements for testing and labeling hemp products, prohibit smokable tetrahydrocannabinol (THC) products, and place a cap on edible products that contain 10 mg of THC per individually wrapped product and 40 mg per package (2). Additionally, a 10% excise tax on consumable hemp products and the “state Alcoholic Beverage Control (ABC) Board will be tasked with licensing hemp companies,” (2). Consumable product hemp sales will only be able to be purchased from those licensed hemp companies.

Other components of HB 445 include (3):

• Prohibition of sales to minors.
• Prohibition of smokable hemp products and restrictions on online sales and direct delivery.
• Imposition of an excise tax on consumable hemp products.

The bill passed in the House by 60-27 votes and 14 abstentions. In the Senate, it passed in a 19-12 vote (3) before being sent to the governor's desk.

HB 445 was sponsored by Representative Andy Whitt. “If you have arthritis and you used CBD oil, you’ll be able to go to your local pharmacy and get this product,” he said. “If you take gummies to help you sleep or help you with your arthritis or anxiety, you will still be able to go get these products but it’s not at your local gas station or convenience store,” Whitt said to WFSA 12 News (2,4).

The bill has received opposition among hemp businesses and representatives, citing how the bill will harm both consumers and businesses.

“We’re going to keep our storefront open and serve Alabama to the best of our ability, but our future in Alabama is uncertain, and I’m really hoping Gov. Kay Ivey will veto this bill if she truly supports small businesses,” Carmelo Parasiliti, founder and CEO of Green Acres Organic Pharms, said in an interview with the Alabama Policy Institute prior to the bill's passing (3). “The governor’s office just celebrated last week small business week, and here we are,” Parasiliti added (3). “If this bill is signed and put into law, it’s going to be putting a lot of small businesses out of business.”

“I might have to close down and open a bar,” said Douglas Kennedy, owner of Montgomery’s The CBD Place, said to WFSA 12 News (2,4). “The poison that is alcohol is legal whereas the plant that grows naturally out of the ground is not.”

A petition signed by more than 800 Alabamians was circulating on Change.org last week and urged the governor to veto HB 445 it was gaining traction as Alabama residents voiced their “concerns about the health, economic and legal consequences of the bill,” (5). Route 420 Dispensary owner, Matt, expressed his opinion on the bill in the petition (5), “It threatens not just businesses like mine, but the entire supply chain—brands, workers, and especially the customers.”

“Alabama House Bill 445 is a step backwards and harmful to small businesses in Birmingham,” Birmingham Mayor Randall Woodfin said in a statement posted on Facebook (3). “Instead of moving us closer to justice and equity, this bill risks dragging us back to an era of cannabis criminalization, overregulation, and lost opportunity.”

Despite the controversy surrounding the legislation, Governor Ivey signed HB 445 into law.

References

1. Rocha, A. Gov. Kay Ivey signs controversial Alabama hemp regulation into law https://alabamareflector.com/2025/05/14/gov-kay-ivey-signs-controversial-alabama-hemp-regulation-into-law/ (accessed May 19, 2025).
2. Abbott, G. Alabama gov. signs hemp restrictions bill into law - ganjapreneur https://www.ganjapreneur.com/alabama-gov-signs-hemp-restrictions-bill-into-law/ (accessed May 19, 2025).
3. Alabama hemp bill creates confusion; industry braces for fight https://alabamapolicy.org/2025/05/14/alabama-hemp-bill-creates-confusion-industry-braces-for-fight/ (accessed May 19, 2025).
4. WSFA 12 News Staff; Pitts, S. Gov. Ivey signs bill regulating hemp products in Alabama https://www.wsfa.com/2025/05/14/gov-ivey-signs-bill-regulating-hemp-products-alabama/ (accessed May 19, 2025).
5. Niche, M. B. Alabamians urge veto of HB445, warning of job losses and hemp industry collapse https://alabamapolicy.org/2025/05/14/alabamians-urge-veto-of-hb445-warning-of-job-losses-and-hemp-industry-collapse/ (accessed May 19, 2025).