Hello MCO Family,

SB237 & HB445 3/19: Two new bills have been introduced yesterday & today.  The first bill (SB237) was just voted down in committee with 4 yays, 4 nays & 4 that abstained. So at this point SB237 that was just introduced is dead.  Now our focus moves to the house bill that could use some work.

SB237:

Purpose of the Bill:

• The bill regulates products that contain psychoactive cannabinoids (like Delta-8 THC and Delta-9 THC) found in or derived from hemp.
• Currently, these products aren’t heavily regulated except that they can’t be sold to minors. This bill introduces new regulations.

Key Points:

1. Hemp Beverages Regulation:

   • Hemp-derived beverages would be regulated like beer and wine.
   • To make, distribute, or sell hemp beverages, businesses would need a license from the Alabama Alcoholic Beverage Control Board.
   • Hemp beverages would face labeling, testing, and safety requirements.
   • A 10% excise tax would apply to hemp beverage sales (in addition to standard sales taxes).
   • Hemp beverages cannot be sold to individuals under 21.

2. Psychoactive Hemp Products (like gummies or tinctures):

   • Non-beverage hemp products would be treated like tobacco.
   • Businesses would need a special permit to sell these products.
   • These products would have labeling and advertising restrictions.
   • A 10% excise tax would apply to these products as well.
   • Selling to anyone under 21 would be illegal, with fines and penalties for violations.

3. Smokable Hemp Ban:

   • The bill bans the sale and possession of smokable hemp products.

4. Licensing and Penalties:

   • Businesses would need different licenses for manufacturing, distributing, and selling hemp beverages or products.
   • Civil and criminal penalties are established for violations, including fines, suspension, and loss of licenses.

5. Tax Use:

   • Revenue from the excise tax would go toward the state’s general fund, law enforcement, and regulatory expenses.

In Short:

This bill aims to regulate hemp-derived psychoactive products like THC beverages and gummies similarly to alcohol and tobacco. Businesses would need licenses, products would require testing and proper labeling, and there would be penalties for breaking the rules. Smokable hemp products would be banned outright.

HB445 

Purpose of the Bill

The bill aims to regulate the sale and production of hemp-derived products (like CBD and THC) in Alabama. It sets rules about:

• Who can sell and make these products
• Where they can be sold
• How they should be labeled and tested
• How much THC can be in them
• Age restrictions and penalties for breaking the rules

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Key Points

1. Who’s in Charge?
   The Alabama Alcoholic Beverage Control Board (ABC Board) will regulate all hemp-derived products. This includes:

   • Licensing manufacturers, wholesalers, and retailers
   • Setting testing and labeling standards
   • Enforcing rules and punishing violations

2. Age Limit

   • You must be 21 or older to buy any hemp-derived products.
   • Retailers who sell to minors face heavy penalties.

3. Licensing Requirements

   • Manufacturers, wholesalers, and retailers will need a license from the ABC Board.
   • License fees:
     • $5,000 for manufacturers and wholesalers
     • $1,000 for retailers
   • All licenses need to be renewed yearly.

4. Product Restrictions

   • THC limits:
     • Beverages and edibles – 5 mg of THC per serving
     • Other products – No more than 0.3% THC by dry weight
   • Products can’t be sold with alcohol or other intoxicating substances.
   • Packaging must be child-resistant and not appeal to minors.

5. Taxation

   • An excise tax of 7% on sales from manufacturers and wholesalers to retailers.
   • Tax revenue distribution:
     • 50% to the State General Fund
     • 25% to counties (based on population)
     • 25% to cities (based on population)

6. Testing and Labeling

   • Products must be tested by a certified lab.
   • Labels must include:
     • Ingredients list
     • THC content
     • Batch number
     • Health warnings (e.g., impairment and drug tests)
   • Products without approved labels or test results can be seized and destroyed.

7. Sales and Location Rules

   • Sales allowed only in:
     • Liquor stores
     • Dedicated hemp stores where minors aren’t allowed
   • No self-service sales or vending machines.
   • Retailers must verify age with ID.

8. Penalties

   • Selling to minors:
     • 1st offense: $5,000 fine and 90-day suspension
     • 2nd offense: $10,000 fine and 180-day suspension
     • 3rd offense: $20,000 fine and permanent license revocation
   • Mislabeling, improper sales, or other violations:
     • 1st offense: $1,000 fine
     • 2nd offense: $2,500 fine
     • 3rd offense: $5,000 fine and possible license revocation

9. Repealing Existing Law

   • The bill would repeal the current law that allows the sale of psychoactive cannabinoids.

10. Effective Date

• The law would go into effect on July 1, 2025.

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Bottom Line

• Alabama is tightening control over hemp products, especially those with THC.
• Age limits, taxes, and strict licensing rules will be in place.
• Violating these rules can lead to heavy fines, product seizures, and license loss.

SB 132 UPDATE 3/14: The senate was out of session this week but we learned during meetings that Tim Melson is preparing a new bill & we should know more on Monday the 17th. We will update more once we have the bill in our hands!

SB 132 UPDATE 3/7: This week brought another round of developments with SB 132, but the battle is far from over. A new addendum was introduced, alongside a substitute bill, which didn’t significantly differ from the original. The bill was set for discussion in committee on Thursday, but that meeting was canceled.  We are collecting donations from businesses & manufactures to help with the incredible cost of lobbying for changes in the bill with our non-profit.  We are also developing our website for Alabama Wellness Collective & that should be done in about a week.  We will be releasing a list of major companies & local businesses that are supporting the fight so you know where to shop!

While the latest version is not an outright prohibition bill, there are still major concerns that need to be addressed, including:

• The 10% tax, which—when combined with existing taxes—would push the total tax on hemp products to 20%, making them significantly more expensive for consumers.
• Milligram caps remain around 10mg, which would eliminate 60% of the products we currently carry at Magic City Organics.

Next week, we’ll be meeting with our nonprofit board members, local senators, and representatives in Bham to advocate for critical amendments to protect both businesses and consumers. This is a pivotal moment, and we’ll need everyone’s support to ensure that responsible hemp regulations don’t turn into unnecessary restrictions.

UPDATE 2/6:  A new substitute bill was introduced by Tim Melson & was discussed on 2/26 in Montgomery.  While we are pleased to see Tim Melson(R) moving away from prohibition but we still have a lot of work to do.  There’s some positive language but we are continuing to move forward with lobbying to amend the bill & add some much needed adjustments to protect the retail & manufacturing companies of Alabama.  Our Non-Profit, Alabama Wellness Collective, has hired two fantastic lobbyists one of which was behind the “Free the Hops” movement. Thank you so much to all of you who have donated in the shop to our efforts!  We truly appreciate all of you!!

Here’s some takeaways…

Overall Impact on Hemp Retailers

• Higher costs due to licensing, taxes, and compliance.
• Reduced flexibility in sourcing and selling products.
• More restrictions on marketing and product placement.
• Increased legal risks for non-compliance.
• Limited product availability if wholesalers control the supply chain.
• Low MG Products only available so those requiring stronger products would not have access.

This bill would make it harder for small and independent hemp retailers to compete, potentially pushing more business to large, established distributors and state-controlled channels.

A bill introduced 2/6/2025 by Sen. Tim Melson (R) would end the hemp industry in Alabama. There would be no safe & legal access to these cannabinoids of any form (edible, vape, flower or concentrate) and hemp cannabinoids would be reclassified as a schedule one drug like heroin stating that there is no medicinal value.  

Write and call your reps!  Send your testimonials or use the sample email below.  Even if/when medical MJ is passed in this state the access is low for issues/ailments & there are few options for consumption.

 What are we doing at MCO?

We have started the Alabama Wellness Collective (Non-Profit) with other local BHM hemp companies to lobby against the bill in Montgomery to keep safe & legal access to hemp cannabinoids in the state of Alabama. There is a sample email below & some talking points in our BLOG (CLICK HERE).

 What will your donation go to?

We are collecting donations at the shop for those that want to help our efforts to fortify our Non-Profit with lobbying, writing a new Bill to present to the state legislature in the coming session & move forward with our grassroots efforts.  Think FREE THE HOPS but FREE THE HEMP!

 Our Goal

End the fight against hemp in Alabama & move forward with a plan to legitimize the hemp industry in our state.  This is our 6th year doing this & we are ready to see change for our customers & for businesses like ours!

IF YOU WANT TO LEAVE A PUBLIC COMMENT ON THE BILL CLICK HERE

🚨 URGENT: TELL YOUR REPS TO VOTE NO ON SB132 – PROTECT HEMP & CANNABINOIDS IN ALABAMA 🚨

Alabama Senate Bill SB132 is a direct attack on hemp-derived cannabinoids like THCA, Delta-9, and other naturally occurring compounds. This bill seeks to classify psychoactive hemp cannabinoids as Schedule I controlled substances, putting them in the same category as heroin—claiming they have no medical use and a high potential for abuse.

Why This Matters:

• Hemp-derived cannabinoids are federally legal under the 2018 Farm Bill.
• Many Alabamians rely on these products for pain relief, anxiety, sleep, and general relaxation.
• SB132 will shut down hemp businesses that sell legal hemp products.
• Consumers will be forced to seek alternatives out of state or from untested sources.

This bill is moving fast, and we need YOUR help to stop it!

Take Action Today!
📞 Call & Email Your State Representatives – Tell them to VOTE NO on SB132 and protect legal, regulated hemp products in Alabama.

📢 Spread the Word! – Share this with friends, family, and business owners who will be affected.

🚨 Find your legislators & contact them here: https://www.legislature.state.al.us

📢 Senators Phone & Email Links CLICK HERE

We must stand up NOW to protect access to hemp and stop this overreach on personal choice and small businesses. Let your voice be heard before it’s too late!

SAMPLE EMAIL:

Subject: VOTE NO ON SB132 – Hemp Products Are Essential for My Health

Dear [Representative’s Name],

I am writing to strongly oppose SB132, which would classify hemp-derived cannabinoids as Schedule I substances in Alabama. This bill would wrongly eliminate access to safe, legal, and beneficial hemp products that I, along with many others, rely on for my well-being.

For me, hemp-derived cannabinoids like [Delta-8, CBD, CBN, etc.—personalize based on your experience] have been life-changing. They help me manage [pain, anxiety, sleep issues, inflammation, PTSD, etc.] in a way that traditional pharmaceuticals have failed to do or come with unbearable side effects.

Why This Matters to Me and Many Others:

• Hemp products offer a safe, natural alternative to prescription drugs.
• Doctors in Alabama are sending patients to reputable hemp shops.
• Banning these products would force people to seek relief through untested sources or out-of-state options, creating unnecessary hardship.
• Many people depend on hemp cannabinoids for relief, anxiety, sleep, and overall quality of life.
• The 2018 Farm Bill federally legalized hemp, and states should not override this decision based on misinformation.

SB132 is a cruel and unnecessary restriction on people who are simply looking for relief in a safe and responsible manner. Please stand with Alabamians who rely on these products and VOTE NO on SB132.

Thank you for your time and consideration. I urge you to listen to the voices of those who would be directly harmed by this bill.

Sincerely,
[Your Name]
[Your Address]
[Your Contact Information]