Governor signs major cannabis regulation into law

May 14, 2025 - MONTGOMERY, AL. – Alabama Governor Kay Ivy (R) signed legislation to tax and regulate THC products derived from hemp. The bill imposes strict regulations on the sale of psychoactive cannabinoids.

House Bill 445 (HB445) was introduced in the House by Rep. Andy Whitt (R-Harvest) and carried in the Senate by Senator Tim Melson (R-Florence).

The law will limit all psychoactive cannabinoids sold over the counter in Alabama to a maximum limit of 10 milligrams of THC – Tetrahydrocannabinol is the primary psychoactive component in marijuana.

The Alabama Alcoholic Beverage Control Board (ABC) has been tasked with regulating all the psychoactive products derived from hemp in the state. Only standalone hemp/vape stores and grocers will be allowed to sell hemp products. All the gas stations and convenience stores will have to remove products from their stores. Sales will be strictly limited to persons 21 and over and penalties will be stiff for businesses that continue to sell to teens.

The bill was opposed by the gas stations who will lose this business, the industry who believes that the rules are too onerous, and even some conservatives who believe that this should have been banned rather than formally legalized in state law.

The Alabama Gazette spoke with Chey Garrigan – the founder and President of the Alabama Cannabis Industry Association.

"The ABC Board has been tasked with writing the rules for and regulating a vast industry that they don't understand - not that any other state agency would have been better," said Garrigan. "The amount of resources they will have to expend to set this up is an enormous expenditure that the Legislature did not adequately plan for."

Recreational marijuana remains illegal in Alabama; but recreational psychoactive cannabinoids derived from hemp will be legally sold with a license from the state ABC Board.

The conservative Alabama Policy Institute (API) opposed the bill.

"The unintended consequences of the Farm Bill led to the proliferation of unregulated THC products derived from hemp through chemical processing and alteration, aimed at increasing potency and psychoactive effects," wrote Alabama Policy Institute President Stephanie Holden Smith. "Unfortunately, that loophole is being utilized by businesses and dispensaries in Alabama to provide an alternative to traditional recreational marijuana without legal repercussion." "We believe that the legislative aim to limit access to psychoactive THC has unfortunately fallen short. If Gov. Ivey signs or allows HB445 to become law, the state of Alabama will be condoning the recreational use of dangerous products and profiting off the increased addiction of Alabama's citizens."

"It would have been simpler and cleaner if the Legislature had passed recreational marijuana," Garrigan said.

The Alabama Gazette spoke with a maker of cannabis infused beverages in Kentucky that sells direct to Alabama businesses and homes.

"They can stop internet sales," Garrigan said. "I don't think they can stop the mail though."

Retailers will now be required to obtain a license from the ABC Board to sell these products. The bill outlaws all psychoactive vapes and smokable psychoactive hemp products as well as hemp flowers and any other marketed plant material.

The Alabama Hemp and Vape Association and the Alabama Cannabis Coalition have announced that they will sue in a desperate last-ditch effort to stop this legislation from being implemented.

The Legislation goes into full effect on July 1