Alabama bill giving ABC Board control of sales of edibles, drinks with THC, CBD moves forward

A bill to regulate and tax gummies, drinks, and other products containing chemicals derived from hemp was approved Tuesday by the Health Committee in the Alabama House.

It is one of several bills lawmakers have discussed this year about products containing THC and CBD from hemp, a form of the same plant as marijuana.

THC is the ingredient in marijuana that makes people high.

Variations of the chemical are sometimes called Delta 8, Delta 9, and Delta 10.

The sponsor of the bill, Rep. Andy Whitt, R-Harvest, said the consumables containing THC are dangerous intoxicants that are sometimes marketed for children and teens, even though it is illegal to sell them to people younger than 19.

Speaking to the committee Tuesday, Whitt noted an AL.com story that the hemp-derived THC-infused seltzer brand Herbal Oasis is expanding sales into convenience stores, grocery stores, and other locations throughout Alabama and the Florida panhandle starting in late March.

Whitt said that was an example of the growing availability of the products and that it reinforced the need to impose restrictions.

For one thing, his bill would restrict sales to licensed stores that do not allow people younger than 21 to enter.

“I think we need to get this genie back in its bottle and get our guardrails up and get them in place ASAP,” Whitt said.

The Health Committee approved the bill on a voice vote with no opposition.

The committee’s vote follows a public hearing that drew an overflow crowd last week.

Advocates for the industry said they favor some regulations, including no sales to minors, but said Whitt’s bill went too far and would undermine an industry that provides products that are safer than alcohol to responsible adult users.

Whitt’s bill would require the Alcoholic Beverage and Control Board to license and regulate the companies that make the products, as well as wholesalers and the retail stores that sell them.

Sales would be limited to stores that prohibit entry to people younger than 21.

Bart Fletcher, president of Petroleum and Convenience Marketers of Alabama, said it would be unfair to take the products out of convenience stores.

“Unfortunately, I think that convenience stores can become an easy target because, like any industry, there are some convenience stores out there that might make sales that we all wish didn’t happen,” Fletcher said.

“But it’s unfair, I think, to lump the entire industry into that classification and say we’re going to preclude the 95% of the responsible retailers out there from retailing these highly sought after products simply because of the 5%.”

Fletcher said his organization, which represents companies that own, operate or supply more than 4,000 stores in Alabama, support reasonable regulations, taxation, age restrictions, and fines for those who sell to minors.

“We want to play by the rules,” Fletcher said.

“But once you set the rules, let’s let all responsible retailers participate in the retail sale of the products.”

The bill would impose a 7% excise tax on the products.

Manufacturers and wholesalers would pay annual license fees of $5,000, and retailers would pay a $1,000 annual fee.

The bill would place a cap on THC content for edibles, beverages, and other consumable products.

Packages would be child-resistant and could not be designed to appeal to minors.

Labels would have to show all ingredients and the THC content, as well as carry warnings saying that the products are not safe for those younger than 21, pregnant, or breastfeeding and that they may impair the ability to drive or operate machinery.

Manufacturers would have to submit samples of their products to certified labs and receive certificates of analysis.

The bill would impose fines, license suspensions, and license revocations for retailers that sell to people under 21.

Rep. Jeremy Gray, D-Opelika, suggested forming an economic impact study on regulations of the industry.

Some advocates had said the same at last week’s public hearing, saying that lawmakers should not rush through legislation on a complex topic.

“Punishing adults who choose to use these products legally and responsibly should not be the answer,” Carmelo Parasiliti II, CEO and founder of Green Acres Organic Pharms, told the committee at last week’s hearing.

Others, however, said they would like to see the products banned.

The approval by the Health Committee puts the bill in position for consideration by the full House.

Whitt said he hopes that could happen this week.