Proposed regulations for the manufacturing, distributing, and sale of hemp products containing THC failed to get approval by a Senate committee Wednesday. Alabama business owners have criticized the legislation with fears it would have a serious negative impact on the hemp industry in the state, while proponents of the legislation say the regulations are necessary to keep products out of the hands of children.

The initial proposal from Sen. Tim Melson, R-Florence, banned the sale of products containing psychoactive cannabinoids, such as Delta-8 THC and Delta-9 THC, by labeling the cannabinoids as Schedule I Drugs. Melson pivoted to regulating the products in late February and offered several substitutes for Senate Bill 132.

A new bill with the latest variation of the regulations was filed this week, Senate Bill 237.

The Alcoholic Beverage Control Board would have overseen the licensing and regulation of “hemp beverages” and “psychoactive hemp products.” Under SB237, Hemp beverages were treated similarly to beer and wine, while hemp products were treated similarly to tobacco. Hemp products include gummies, vapes, and other consumable products that aren’t beverages.

SB237 required licenses from the ABC Board to manufacture, distribute, and sell hemp beverages. The bill restricts where hemp beverages could be sold in stores. SB237 called for a 10% tax on hemp beverages and hemp products in addition to any state or local sales tax already in place.

The bill also established labeling and testing requirements for hemp beverages and products, maintained the state age requirement of 21 to buy beverages and products, banned smokable hemp products, and provided civil and criminal penalties for violations.

Products in violation of the bill could be seized by the ABC Board or any law enforcement without a warrant. There are also provisions in the bill prohibiting manufacturers and wholesalers from selling beverages directly to consumers.

READ BILL HERE:

After a public hearing where several advocates for the hemp industry spoke, the bill ultimately failed to move forward, with four senators voting in favor, four voting against, and four abstaining.

Sen. Melson told the crowd the House version of the legislation would be coming soon.

 Proposed regulations for the production and sale of hemp products containing THC failed to be approved by a Senate committee Wednesday. Alabama business owners  Read More  

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