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ABC board revises proposed hemp rules, lessening burden on retailers

The board approved new rules for consumable THC and hemp products, revising initial proposals to ease burdens on retailers after public comment.

Hemp-infused beverages line the shelf of an Alabama convenience store. JACOB HOLMES/APR

Late last week, the Alabama Alcoholic Beverage Control Board approved several rules related to House Bill 445, the new Alabama law restricting the sale and use of consumable THC and hemp products in the state.

The new rules were originally proposed by the ABC board in August before being subject to a public comment period. While some of those rules will now be implemented in their original form, others were revised by the board to be less burdensome for retailers.

In particular, two of the more stringent requirements initially proposed by the ABC board were removed from the final slate of rules.

The board originally sought to outlaw the sale of hemp-infused beverages in pop-top or pull tab cans under HB445’s provision that requires such drinks to be stored in “child-resistant” cans and bottles. Per the Alabama Daily News, that requirement was removed from the final version of the rule, with the board and ABC staff agreeing that pull tab cans are acceptable and meet federal standards for beverages.

The board also walked back a proposal that would require retailers to store hemp beverages in a locked case only accessible by employees. Retail advocates had pressured the board to eliminate the requirement, arguing that it would be difficult for small retailers to comply with.

“It would have been extremely costly for small, independent grocers to have an individual who was specifically dedicated to locking and unlocking the cooler section in their store,” Ellie Taylor, president of the Alabama Grocers Association, told Alabama Daily News.

Meanwhile, other rules–like a requirement that hemp beverages be stored behind glass in designated areas away from products intended for children with clear signage identifying them as hemp products–will reportedly be put into effect as originally proposed.

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At this time, the latest versions of the rules are not publicly available and will not be released until they are certified by the Legislative Services Agency. The rules are set to go into effect later this year unless the Legislative Council–a committee consisting of state lawmakers from both houses–decides to intervene.

On its own, HB445 limits THC content to 10 milligrams per serving for edibles and beverages, bans all smokable hemp products, mandates that all edible consumable hemp products be individually wrapped in a single serve packaging, and prohibits the sale of hemp products to individuals under the age of 21.

The law also imposes a 10 percent tax on all sales of THC products, institutes strict licensing requirements, and establishes severe civil and criminal penalties for retailer and consumer violations–including a maximum prison sentence of 10 years and up to a $15,000 fine for the sale or possession of smokable hemp products.

Alex Jobin is a reporter. You can reach him at [email protected].

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