SB237 Summary

• Establishes comprehensive regulation of hemp beverages (containing psychoactive cannabinoids) under the Alcoholic Beverage Control Board, requiring licenses for manufacturers, wholesalers, and retailers similar to alcoholic beverage regulations, effective January 1, 2026.

• Imposes a 10% excise tax on retail sales of hemp beverages in addition to other taxes, with revenue distributed to state general fund (40%), the board for regulatory costs (35%), enforcement agencies (15%), and local municipalities/counties (10%).

• Regulates psychoactive hemp products other than beverages (gummies, oils, tinctures, etc.) as tobacco-like products requiring permits from retailers, with labeling requirements, age restrictions to 21+ years, and placement restrictions near schools and youth facilities.

• Prohibits all smokable hemp products in Alabama, making possession a criminal offense with escalating penalties ranging from Class A misdemeanor for personal use to Class C felony for distribution.

• Establishes strict labeling, testing, and safety requirements for all hemp products including warning labels, child-resistant packaging, prohibition on cartoon characters and child-appealing designs, and mandatory certificates of analysis from independent laboratories.