Alabama has enrolled legislation regulating the sale of consumable products (including beverages, edible products, and topical creams) containing THC or CBD derived from hemp, and has designated the Alabama ABC Board as the agency overseeing the licensure and enforcement of the laws. On May 6, 2025, the Senate passed HB 445, sending it to its final stop at the Governor’s desk for signature. Unless vetoed by the Governor, HB 445 will become law, and if enacted, beginning January 1, 2026, the new law will require retailers to obtain a license from the Alabama Alcoholic Beverage Control Board to sell products containing THC, and will limit the types of retailers that may obtain such a license. Specifically, the law provides that only retail establishments restricted to patrons 21 years or older and certain grocery stores (referred to as “retail food stores” in the law) are eligible for a retail license to sell products containing THC. “Retail food store” is defined as “any store commonly known as a supermarket, food store, or grocery store, primarily engaged in the retail sale of a variety of canned goods, frozen foods, non-alcoholic beverages, dry goods, either packaged or in bulk, and fresh produce or meats.” Additionally, the store must dedicate: (1) a minimum of 75% of the store’s selling area to the sale of food items previously listed; and (2) at least 14,000 square feet of the store’s footprint to the sale of food items previously listed.

In addition to requiring retailers to obtain a license from the ABC Board to sell consumable hemp products, HB 445 imposes the following additional requirements on retailers:

1. a reporting requirement on retailers requiring them to submit forms monthly showing gross sales of consumable hemp products;
2. a requirement to post a surety bond in the amount of $25,000;
3. a requirement to keep records of certificates of analysis for all consumable hemp products sold in Alabama, which must be maintained as a part of the retailer’s records;
4. 10% excise tax to be collected on sales, which must appear as a separate line item on the receipt; and
5. sales of consumable hemp products may only be made for off-premises consumption.

It is important for a retailer to be certain that the consumable hemp products are not expressly prohibited by the new law. The sale of consumable hemp products that are specifically excluded from the defined term “Consumable Hemp Products” is a Class C Felony. The excluded products include any smokable hemp products and products that contain psychoactive cannabinoids created by chemical synthesis, modification or chemical conversion.

In addition, the new law imposes additional requirements on manufacturers and suppliers. Manufacturers of consumable hemp products must label the products to include: a list of all ingredients, a scanable barcode linked to the certificate of analysis, the manufacture date and expiration date, the batch number corresponding to the certificate of analysis, the total number of milligrams of THCs in the container, the serving size, the total number of milligrams of THCs per serving, and consumer warnings. The certificate of analysis is a document issued by an independent testing laboratory that provides information about the chemical composition of a particular batch of consumable hemp product.

The ABC Board has not promulgated its rules for implementing the new law upon its enactment so there is likely more to come.