ABC releases adopted rules for hemp stores

October 17, 2025 – MONTGOMERY, AL – The Alabama Legislature through its landmark HB445 bill has tasked the Alabama Alcoholic Beverage Control Board with writing regulations for psychoactive cannabinoid products derived from hemp. Under HB445 all sellers of these products (which are legal in most states) must obtain a license from the ABC Board. On Friday, the ABC Board released several pages of adopted rules that hemp stores will have to comply with if they are allowed to stay in business moving forward.

The Alabama Gazette put all of the pages of regulations into an A.I. (outside of the legal definitions) and asked the A.I. to summarize the rules and regulations for the sake of brevity and to make the rules more understandable.

The 1916 words of summarized regulations are below:

ALABAMA ALCOHOLIC BEVERAGE CONTROL BOARD ADMINISTRATIVE CODE

Regulation of Licensees Operating as Package Stores

1. General Requirements for Off-Premises Alcohol Sales:

Applies to private clubs and lounge retail liquor licensees primarily selling alcohol for off-premises consumption:

• 📏 Must have at least 500 sq. ft. of customer-accessible display/sales space (excluding offices, storage, restrooms).

• 🧃 May sell only specific items: prepackaged snacks, cheeses, beverage containers, bartending supplies, tobacco products, electronic nicotine delivery systems, ice, mixers, and garnishments.

• ❌ Cannot sell general groceries, novelties, clothing, or unrelated merchandise.

• 🎁 Cannot use non-alcohol items as promotional gifts or discounts tied to alcohol purchases.

• 🚪 Interior access to adjoining buildings must be employee-only and clearly marked.

• 📦 Must maintain a liquor/wine inventory worth at least $5,000 wholesale, sourced from at least two distilleries and two wineries.

• 🚫 No exterior advertising of alcohol or use of flashing/blinking signs.

2. Grandfather Clause:

• 🕰️ Licensees issued before September 30, 1985, are exempt from the 500 sq. ft. requirement unless transferring the license.

3. Sale of Electronic Nicotine Delivery Systems:

Allowed for off-premises-only lounge retail liquor licensees if:

• ✅ Proper permits are obtained.

• 🔞 Premises are restricted to individuals 21+.

• 👤 An employee is present in the sales area during open hours.

• 📋 All ABC Board rules for both license types are followed.

4. Sale of Consumable Hemp Products:

Permitted for off-premises-only lounge retail liquor licensees if:

• 🪪 They also hold a valid Consumable Hemp Retailer License.

• 🔞 Premises are restricted to individuals 21+.

• 👤 An employee is present in the sales area during open hours.

• 🚫 No tastings or on-site consumption allowed.

• 📋 All ABC Board rules for both license types are followed.

CHAPTER 20-X-31

DEFINITIONS

20-X-31-.01

Definitions

The following words or phrases, whenever they appear in ABC Rules and Regulations 20-X-30 through 20-X-35, shall have the meaning ascribed to them as follows:

1.

2.

3.

Child-resistant packaging: Packaging that is designed in a way to make it extremely difficult for a child under five to open and complies with the standards and testing procedures established under the Poison Prevention Packaging Act, 15 U.S.C. §§1471-1477, and 16 C.F.R. §1700.20. For the purpose of this definition, standard aluminum beverage cans with pop tops that meet the federal standards, such as those used for beer and other alcoholic beverages, are considered child resistant provided the cans have not been modified to make opening them easier. Packaging that does meet the requirements would include, but is not limited to, standard screw caps, and Sports Cap/Push Pull Caps.

Decarboxylation: A chemical reaction where a carboxyl group is removed from a molecule, typically resulting in the release of carbon dioxide. In the context of cannabis, decarboxylation is the process of heating cannabis to activate its cannabinoids like THC and CBD, converting them from their inactive, acidic forms into their active, neutral forms.

Flavoring Agent: A substance used to enhance or modify the flavor and aroma of a consumable hemp product, typically derived from fruit, vegetables, herbs, or spices. If alcohol is used as a flavoring agent, the alcohol by volume shall not exceed .5% for the finished product and the label must be in conformance with federal standards.

Chapter 20-X-32: General Provisions for Consumable Hemp Products

1. 🧪 Testing of Purchases (20-X-32-.01)

• Random product purchases by the ABC Board must be tested by:

• An ISO/IEC 17025:2017-accredited independent lab, or

• The Alabama Department of Forensic Sciences for cannabinoid identification.

2. 📄 Certificate of Analysis (20-X-32-.02)

• Labs must confirm and retain documentation that tested materials were not chemically synthesized or modified from non-cannabis sources.

3. 🚫 Additives (20-X-32-.03)

• Consumable hemp products must not contain intoxicating substances or additives other than cannabinoids.

4. 📦 Serving & Container Sizes (20-X-32-.04)

• Hemp beverages:

• Max one serving per container.

• Serving size ≤ 12 fl oz or ≤ 10 mg THC.

• Topical/sublingual products:

• Max 40 mg THC per container.

• Edibles:

• Must be individually wrapped.

• Single serve ≤ 10 mg THC.

• One carton ≤ 40 mg THC.

Consumable Hemp Product License Types.

Consumable Hemp Products will be sold under three separate and

distinct license types as follows:

(1) Specialty Retailer of Consumable Hemp Products License

(2) Pharmacy Consumable Hemp Products License

(3) Retail Food Store Consumable Hemp Products License

Summary: Information Required for Consumable Hemp Products Licenses (Alabama ABC Board)

1. Application Requirements: Applicants must submit the following to the Alabama ABC Board:

• 📄 Approval letter from the local governing body where the facility will be located.

• 👤 Personal details (name, DOB, SSN, etc.) of anyone with ≥10% ownership interest (excluding publicly traded corporations).

• 🛂 Proof of lawful U.S. presence for all ≥10% owners.

• 🧾 Criminal court records (last 10 years) for applicants and key stakeholders; DUI and reckless driving must be disclosed.

• 💵 Proof of a $25,000 surety bond (renewed annually).

• ✅ Certification of application accuracy by the applicant or authorized corporate representative.

• 🚨 Consent to warrantless inspections by ABC or law enforcement.

• 💰 Evidence of funding sources for the business.

• 🏢 Proof of property ownership, lease, or use agreement for the business location.

2. Eligibility Criteria: Licenses are only issued to reputable individuals, associations, or corporations with reputable officers and directors.

3. False Information: Providing false, incorrect, or incomplete information may result in license denial, revocation, or disciplinary action.

4. Verification: The ABC Board may verify application details through interviews, community input, and background checks (valid if within 2 years).

5. Privacy: Social Security numbers are used solely for verification and are not public records.

Operation of Consumable Hemp Products Licensed Premises

1. Specialty Retailer License Holders:

• ✅ May sell all consumable hemp products as defined by law.

• 🍸 Must either hold a Lounge Retail Liquor (Class II) license or sell only hemp products.

• 🚫 Must restrict access to individuals 21+ years old, including employees.

• 📢 Must post a visible 8½" x 11" sign stating:

"It is illegal for anyone under 21 years of age to enter this licensed location."

• 🛍️ Sales are for off-premises consumption only.

• 📏 Must maintain at least 500 sq. ft. of customer-accessible sales and service area (excluding storage/offices).

2. Pharmacy License Holders:

• 💊 May sell only topical and sublingual hemp products.

• 🔒 Products must be stored in areas inaccessible to the public.

• 👩‍⚕️ Sales must be conducted by or supervised by a licensed pharmacist.

• 👶 Employees under 21 may sell products only under pharmacist supervision and if certified in the Responsible Vendor Program.

3. Retail Food Store License Holders:

• 🥤 May sell consumable hemp beverages.

• 🧊 Beverages must be stored behind glass or similar material in a dedicated area, not visible from children's product sections.

• 📜 Must post a sign on the display:

"These products contain hemp derived compounds. Must be 21 years of age or older to purchase."

4. Recordkeeping:

• 📁 Must retain purchase records and certificates of analysis for 3 years.

• 💻 Records can be electronic but must be immediately accessible to ABC personnel upon request.

5. Inspections:

• 🚓 Licensees must allow ABC and law enforcement access to all areas, including locked ones, and cooperate with audits and inspections.

6. On-Premises Conduct:

• 🚫 No consumption of hemp products by staff or licensees on-site.

• 🛑 No possession of hemp products on-site unless they are for sale.

7. Sales Restrictions:

• ❌ Cannot sell to individuals who appear intoxicated or impaired by alcohol or other substances.

This is a summary of Chapter 20-X-34 of the Alabama ABC Board Administrative Code, which governs the labeling, promotion, and advertising of consumable hemp products, effective January 1, 2026:

🔖 20-X-34-.01 Promotional Advertising, Marketing, and Labeling

Consumable hemp products must not use packaging, labeling, or advertising that:

• Appeals to minors through imagery like superheroes, cartoon or video game characters, celebrities, or mythical creatures.

• Mimics branding of food products marketed to children (e.g., cereals, cookies, ice cream, juice drinks).

• Uses terms like "candy," "cake," "cupcake," or "pie," including variations or brand references.

• Resembles school or office supplies (e.g., backpacks, pens, markers).

• Depicts personal items such as phones, toys, cosmetics, or clothing.

These restrictions aim to prevent marketing that could attract underage consumers.

⚖️ 20-X-34-.02 Contested Labels

• If a product is confiscated or removed by the ABC Board, the retailer or manufacturer listed on the label may appeal the decision.

• Appeals must be filed within 15 days of written notification and follow the procedures outlined in Chapter 20-X-3.

✅ 20-X-34-.03 Label Approval

• Manufacturers may seek pre-approval of product labels before selling or distributing consumable hemp products in Alabama.

• Applications must include a completed form, a copy of the label, and a $50 fee.

• Approved labels will be listed on the ABC Board's website.

These rules are designed to ensure responsible marketing and regulatory compliance for consumable hemp products sold in Alabama.

Here's a summary of the Alabama ABC Board's Chapter 20-X-35 rule establishing the Hearing Commission for Consumable Hemp Products, effective January 1, 2026:

🏛️ Hearing Commission Overview

• The Hearing Commission consists of at least three members appointed by the ABC Board, including the Administrator (who typically serves as Chairperson).

• The Commission meets at least monthly unless otherwise directed.

⚖️ Responsibilities

• Handles contested license applications and disciplinary actions involving consumable hemp product licensees.

• After conducting a hearing, the Commission may:

• Dismiss the complaint

• Suspend or revoke a license

• Impose fines per offense

• Approve or deny license applications

📬 Notification & Appeals

• Decisions must be communicated in writing within 15 days of the hearing.

• Licensees/applicants have 15 days from receipt to appeal to the ABC Board.

• Appeals must be in writing and submitted by hand or postmarked within the deadline.

• If no appeal is filed, the decision becomes final on day 16.

• If appealed, the ABC Board may affirm, modify, or reverse the decision with its own findings.

💵 Appeal Costs & Evidence

• Appellants must pay transcription costs (up to $10/page), with possible advance deposit required.

• If the appeal is successful, transcription fees are refunded.

• New evidence not available during the original hearing may be submitted on appeal via affidavit or exhibit.

🗃️ Record Retention

• If no appeal is filed, the ABC Board may destroy hearing records and testimony after 60 days from the final appeal deadline.

This rule ensures due process and clear procedures for handling disputes and licensing issues related to consumable hemp products in Alabama.

Here's a summary of the record-keeping and reporting requirements for consumable hemp product retailers in Alabama, effective January 1, 2026:

📋 Record-Keeping Requirements

Retailers must maintain detailed records for:

• Product Receipts: Include date received, invoice number, distributor/producer, and quantity. A retailer representative must sign and date each receiving document.

• Sales Receipts: Must show sales date, brand/label, price, quantity sold, tax collected, and total amount.

• Format: Paper records must be kept on-site and available for inspection. Electronic records are acceptable if they meet the same standards and are accessible in printable or digital format.

💰 Tax Reporting Requirements

• Paper Filing: Monthly tax returns must be postmarked by the 20th of the following month, with payment by check or money order.

• Electronic Filing: Returns must be submitted by the last day of the following month using a board-approved method.

• Zero Sales: If no sales occurred, a zero-activity report must be filed either by paper (by the 20th) or electronically (by the last day of the month).

These rules aim to ensure transparency, accountability, and regulatory compliance for all licensed consumable hemp product retailers in the state.

Editorial note: They go into effect in January 2026. Hemp store operators who intend to stay in business should be applying for an ABC license and taking whatever steps are necessary to get into compliance.

https://alabcboard.gov/announcement/adopted-new-and-amended-rules-and-chapters