Legislature votes to tax and regulate hemp derived cannabinoids

May 6, 2025 – MONTGOMERY, AL – The Alabama Legislature passed landmark regulation that will limit who can purchase hemp derived cannabinoids and where they can be purchased.

House Bill 455 (HB455) is sponsored by State Representative Andy Whitt (R-Harvest) and was carried in the Senate by Senator Tim Melson (R-Florence).

The House had passed HB455 earlier. On Tuesday the Alabama Senate took up controversial legislation.

Sen. Melson introduced a substitute on the floor. The substitute bill increased the limit on the THC content from the five-milligram in the House bill to ten milligrams. It also kept the products out of the convenience stores; but did allow grocery stores to sell cannabis products.

"This bill is to protect the health and safety of the consumer," Melson said.

The legislation passed the Senate 19 to 13.

Some members thought that hemp derived cannabinoids should have been banned outright. Others thought that the bill went too far in taking it off convenience store shelves.

Melson, who was the 2021 sponsor of the state's medical cannabis law, lamented the that the failure of the program to ever get off the ground resulted in many consumers turning to the hemp derived cannabis market for THC they otherwise cannot legally buy in the state – even with a documented medical need.

The legislation then went back to the House for their consideration.

The sponsor, Rep. Whitt, urged that the House concur with the Senate changes to the bill.

"This product has plagued our state for years," Whitt said.

"We set the limit at five milligrams - the Senate went to 10 mgs," said Whitt. "We kept it out of the grocery stores; but they allowed it in grocery stores; but it will be a store inside of a store with an individual man. Only stores that sell 75% of food so there is no selling in Dollar General or something like that."

"I think ten milligrams is better than five," said Rep. Napoleon Bracy (R-Prichard).

Bracy did have concerns about taking this business from the convenience stores.

"We are doing things to make it difficult for the store owners," Bracy said. "We are telling people that you can't sell nothing but sodas and chips." (The legislature also took away their ability to sell most vape products and laughing gas.)

"Are we having an attack on gas stations?" said Bracy. "If a gas station is selling this to minors we need to hold them accountable; but you are punishing everybody not just the bad actors."

Whitt said, "Convenience stores are not pharmacies."

The Alcohol Beverage Control Board would be tasked with collecting the new six percent tax on cannabinoids derived from hemp, licensing the stores that can sell cannabis, and making sure that the products is sold only to adults 21 years of age or older.

"Nobody is overseeing this product today," said Whitt. "It is being shipped in from out of state and overseas."

"This is another bill that has unintended consequences," said Bracy. "We are picking winners and losers. We just picked the big box grocery stores over the convenience stores. It sets a bad precedent.

Rep, Chris Blackshear (R-Phenix City) asked, "Where is ready to drink? Where are we on that?"

Blackshear said that the convenience stores had been hoping to be allowed to sell "cocktails in a can" – hard alcohol in mixed drink form in exchange for giving up their cannabis sales.

"I have gotten some texts from my stores on that," Blackshear said.

Whitt said that he did not know where the Senate was on that bill.

The House voted to concur with the Senate on a 61 to 26 vote.

HB455 now goes to the Governor for her signature.

Wednesday will be Day 29 of the 2025 Alabama regular legislative session. The Legislature is allowed to meet a maximum of 30 days in a session