31 December 2025
More of Alabama’s revised hemp rules take effect on January 1, 2026. The shift is expected to reach consumers and businesses quickly. The changes stem from House Bill 445, which tightens limits on consumable hemp products such as gummies, drinks, and similar THC items. It also broadens enforcement authority and raises penalties for sales that fall outside the new standards.
Under HB 445, only licensed retailers may sell consumable hemp products. Sales are restricted to adults age 21 and older. Oversight falls to the Alabama Alcoholic Beverage Control Board, which is now responsible for issuing licenses. The agency has warned that unlicensed sales may lead to steep fines, felony charges, or loss of a business license. Products sold in violation of the law are treated as contraband and may be seized by law enforcement without a warrant.
The law also narrows how much THC these products may contain:
Retailers and distributors must keep certificates of analysis for every product they sell. These records must be available at once if requested by law enforcement or the ABC Board. Products also must remain in sealed, original packaging and follow specific labeling rules tied to serving size and THC content.
Penalties increase with repeated violations. A first offense brings a $5,000 civil fine. A second offense rises to $7,000. A third offense carries a $10,000 fine, a Class C felony charge, and revocation of the business license.
Some hemp businesses say short-term compliance may prove difficult. The licensing system is new, and timelines remain uncertain. The added rules may cut into profits and add thousands of dollars in new licensing fees on top of existing hemp licenses. The length of the review period is still unclear.
Others point to consumer impact, with rules that are likely to limit access and reduce product choice compared with earlier years.
For some consumers, access to THC may now depend on qualifying for Alabama’s medical cannabis program. Patients who meet state criteria may legally obtain higher-THC products through licensed medical dispensaries, which operate under a separate regulatory system from hemp retailers. The medical program remains limited in scope, and access varies by condition and location.
The licensing rollout itself remains unsettled. The ABC Board has not issued licenses in this category before and has not said when approvals will begin or how many may be granted. Retailers must also seek approval from their local city councils before applying for a state license. That step may further shape how quickly stores can legally stock consumable hemp products across Alabama in 2026.
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