June 28, 2025 – MONTGOMERY, AL - Beginning on Tuesday psychoactive hemp products will become heavily regulated by the state of Alabama. July 1 is the date that House Bill 445 goes into effect. Chey Garrigan is the founder and President of the Alabama Cannabis Industry Association. She joined the Brandon and Christopher Show Podcast.
HB445 taxes and regulates psychoactive cannabinoids derived from hemp – which had previously has been an entirely unregulated market since its legalization by Congress in the 2o18 Farm Bill. Since then cannabis infused drinks, gummies, snack foods, and cigarettes have become widely available in Alabama. Garrigan said that the industry knew that state regulation was coming and it could have been worse – a lot worse.
"Eventually something was going to happen," Garrigan said. Many in the industry, "Believed it was going to be worse something more like a ban."
Alabama passed medical cannabis in 2021; but never implemented the system due to legal maneuvering by businesses upset that they were not awarded a license. Garrigan was asked how HB445 impacts medical cannabis in the state.
"I don't think it is any kind of a blow against the medical cannabis industry; but I do believe it looks like we are going to open up the medical cannabis industry for patients because it is going to become very hard to get this product from the shop owners that do not meet the requirements of the hemp bill," said Garrigan.
Garrigan was asked if she was concerned that patients with a legitimate medical need for cannabis who still can't get the product from lawful medical cannabis dispensaries will be negatively impacted by the 10 milligrams of THC limit that HB445 imposes on psychoactive hemp products.
"I am concerned, but it is not a pharmaceutical grade type of product that really anybody could be held accountable for if something happened," said Garrigan. "I believe this is forcing the medical cannabis issue."
"This does get rid of the bad actors," Garrigan said of HB445. "Some of the shop owners are suffering because of the bad actors." "Some of these products you don't know what is in these products. A lot of people are being blamed for things that are going on in other states or even outside of this country that are sold in these convenience stores and we really don't know what is in them."
Garrigan said that this change only increases the urgency for getting the medical cannabis industry – which has been tied up in the courts – up and running.
"You can't be offering somebody something and then all of a sudden take it away without some type of a plan in place," said Garrigan.
Garrigan said that the Legislature was careful not to ban psychoactive cannabinoids derived from hemp.
"I don't believe the state is trying to eliminate these products," said Garrigan. "I believe it has legitimized the industry."
The Legislature tasked the Alcoholic Beverage Control Board with the responsibility of regulating psychoactive hemp products sold in Alabama.
"The ABC Board has been tasked with something that they were not aware they were going to be tasked with so they are working extremely diligently," said Garrigan.
The ABC Board is currently writing the rules for, "People that will be opening a retail store that is selling gummies and CBD drinks."
Several hemp stores have been raided by the Alabama Law Enforcement Agency (ALEA) and the Attorney General's office.
"I believe that these are ongoing investigations," explained Garrigan. "I don't believe the raids are intimidation tactics."
Garrigan did think that the raids have been heavy handed.
"I am not in favor of these raids taking people's phones or the cash out of the cash drawer," Garrigan said.
Many of these stores sell hemp flowers and plant material. On Tuesday, unless you are a licensed hemp farm selling or possessing hemp flowers or plant material becomes illegal across Alabama.
"The flower is the main thing that is the big deal," said Garriga. "That is about 80% of some of these people's business."
"These raids show that the state is serious," about enforcing the dictates of HB445 Garrigan explained. "I believe these ongoing investigation have been going on quite some time."
HB445 goes into effect at midnight on Monday.
"They have got to have these products off the shelves," explained Garrigan. Some business owners that have been legally selling hemp derived cannabinoids, "May not even be aware that this bill is in place. I am sure they are aware now. The AG is going in and seizing products and testing them. I don't know that this is an intimidation tactic; but is the right time tactic."
HB445 completely bans all smokable hemp products regardless of the THC level. The 2021 Alabama medical cannabis law does not allow smokable products at all.
"There is a lot to say about allowing smokable products," said Garrigan. "For people that have had certain conditions like kidney transplants smokables are easier on their system than gummies would be."
Garrigan suggested that the industry may bring legislation in the 2026 Alabama Legislative session to allow a smokable medical cannabis product.
"There is a place for that and it is some smokable product," Garrigan said.
Until midnight it is legal for persons in Alabama to purchase, consume, and possess smokeable hemp products. It is still legal in Alabama's neighboring states so there may be a temptation by some Alabamians to drive across the state line to purchase hemp derived cannabis products.
"They are going to drive across state line and get whatever they want," Garrigan acknowledged, but warned, "Once they drive back across the state line it would be considered contraband and it would be a felony and they would be in trouble. I would not advise that to anybody."
The state is moving from a nonregulated hemp market to a heavily regulated one.
"Any products that now you can buy at a gas station freely or you can buy at a shop owner freely those products are now coming up under control of the ABC Board and you have to have a retail license in place," explained Garrigan. "By July first these guys (hemp store operators) have to be in compliance."
HB445 goes into effect on July 1; but the bill gives the ABC Board until January 26, 2026 to write the rules for licensing hemp stores.
"That means there is a possibility that we could lag for up to six months without having any product," warned Garrigan. "July 1st is when it goes into effect. January 26 is when the ABC Board has to have the rules in place on how to get a retail license.'
Garrigan has been in contact with the ABC Board to make this transition a smooth one for the remaining hemp store operators.
"The ABC Board is working diligently to get this in place," said Garrigan. "They were tasking with the vaping bill as well." "It is not going to take until January of 2026 for these licensing applications in place. Anybody doing anything with hemp will have to have a license through the ABC Board."
"They will have to buy a retail license," from the ABC Board Garrigan explained. "That is about a thousand dollars. They will have to get a surety bond and that is about $25,000. If they fail to pay their taxes every money that is a surety bond issue."
Garrigan said that many small businesses will be negatively impacted by this in the short term.
"Absolutely yes it will," put small businesses out of business. "A small business or entrepreneur will have a hard time surviving."
Garrigan said that the hemp industry did a poor job explaining to the Legislature the good work that they do in the community.
"They have been helping a lot of people; but none of that was ever brought up with the legislature in any of those committee meetings," Garrigan said.
"The fortunate thing is that we did not get a total ban," said Garrigan. "If anybody thought this was going to last forever they were delusional."
Garrigan reminded cannabis industry supporters that the Legislature meets every year.
"There is another session comes up in 2026 so this can change," Garrigan said.
The Brandon and Christopher Show Podcast is cohosted by Alabama Gazette Lead Reporter and Content Manager Brandon Moseley and Alabama Political Contributor Christopher Peeks.
Reader Comments(0)