SB237 Alabama 2025 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

2025 Regular Session

Title

Psychoactive cannabinoids in hemp; regulate under Alcoholic Beverage Control Board; hemp beverages and psychoactive hemp products defined; licensure required; penalties imposed for violations

Summary

SB237 would regulate hemp beverages and psychoactive hemp products through licensing, labeling and testing requirements, taxes, and age protections, enforced by the Alcoholic Beverage Control Board.

What This Bill Does

Creates a licensing regime under the ABC Board for hemp beverages (manufacturers, wholesalers, retailers) with fees and annual licenses, and imposes labeling, testing, and safety rules plus a 10% excise tax. Regulates psychoactive hemp products (non-beverage) as tobacco-like items, requiring permits, labeling, testing, advertising restrictions, and age limits (21+), and bans smokable forms. Establishes enforcement mechanisms, penalties for violations, required age verification, placement of products in restricted areas, and local regulatory authority, with dates for implementation and related tax revenue distribution.

Who It Affects

• Hemp beverage businesses (manufacturers, wholesalers, and retailers) and psychoactive hemp product permit holders, who would need licenses/permits, pay fees, and follow labeling, testing, and advertising rules.
• Consumers, especially those under 21, who must verify age for purchase, are subject to penalties for violations, and would be affected by packaging, labeling, and safety warnings.

Key Provisions

• Establishes a new licensing framework under Chapter 12 for hemp beverages with the ABC Board; licenses required to manufacture, distribute, or sell for on- or off-premises consumption; sets annual fees (500 for manufacturers, 550 for wholesalers plus 200 per warehouse, 150 for on- or off-premises retailers).
• Imposes labeling, testing, and safety requirements for hemp beverages, including COA certificates, batch tracking, serving size limits (max 12 ounces per container, 10 mg per serving), child-resistant packaging, and prohibitions on certain packaging/marketing elements.
• Adds psychoactive hemp products (PHP) regulated like tobacco; requires PHP permits for distributors/retailers, annual renewal, and defines penalties; requires labeling/testing, advertising restrictions, age verification, and prohibitions on smokable PHP.
• Imposes a 10% excise tax on retail sales of hemp beverages and psychoactive hemp products, with revenue distributed to the State General Fund, board/admin costs, law enforcement, and local jurisdictions for enforcement.
• Requires age verification of 21+ for sales, outlines acceptable IDs, imposes civil penalties for violations (up to $5,000 for first offenses against PHP, higher penalties for repeated offenses), and provides for license suspension/revocation and vicarious liability for wholesalers.
• Prohibits the sale of smokable hemp products to individuals under 21, creates criminal penalties for unlawful possession of smokable hemp products, and prohibits smokable hemp and related products where prohibited by local rules; establishes enforcement mechanisms and potential court actions.
• Places psychoactive hemp products on the ENDS directory and requires COA/testing disclosure for batches, with penalties for noncompliance and contraband seizures if rules are violated.
• Allows local governments to ban or further regulate hemp beverage sales where appropriate, and sets proximity and display rules for specialty retailers to limit youth access.
• Effective dates: July 1, 2025 for general provisions; January 1, 2026 for certain PHP and retail provisions; sections related to penalties for under-21 sales and certain enforcement provisions have staggered effective dates.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Controlled Substances