{"id":260115,"date":"2025-05-27T17:18:13","date_gmt":"2025-05-27T17:18:13","guid":{"rendered":"https:\/\/peraltafinancing.com\/alabama\/the-impact-of-alabamas-new-hemp-and-cbd-restrictions\/"},"modified":"2025-05-27T17:18:13","modified_gmt":"2025-05-27T17:18:13","slug":"the-impact-of-alabamas-new-hemp-and-cbd-restrictions","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=260115","title":{"rendered":"The impact of Alabama&#8217;s new hemp and CBD restrictions"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>Jim Higdon is the co-founder of <a href=\"https:\/\/loutoday.6amcity.com\/business\/cornbread-hemp-louisville-ky\">Cornbread Hemp<\/a>, a Kentucky-based company that sells hemp-based CBD products across the country. Higdon is also a member of the <a href=\"https:\/\/hempsupporter.com\/about\/\">U.S. Hemp Roundtable<\/a>, an advocacy group focused on \u201cscience-driven, equitable, and inclusive law and regulation\u201d for the hemp and CBD industry.<\/p>\n<p>APR recently spoke with Higdon to learn more about the effects that HB445 \u2014 the controversial legislation recently signed into law by Gov. Kay Ivey, which severely restricts access to THC-A and other hemp-derived products across the state \u2014 will have on Alabama businesses.<\/p>\n<p>Among other things, <a href=\"https:\/\/legiscan.com\/AL\/text\/HB445\/id\/3230342\/Alabama-2025-HB445-Enrolled.pdf\">HB445<\/a> bans smokable hemp, places a 10mg THC cap on edibles and hemp beverages, bans direct-to-consumer online sales and deliveries, and imposes a 10 percent excise tax and $1,000 licensing fee on retailers. Convenience stores and gas stations are also barred from selling hemp products under the law. Business owners who fail to comply with the law\u2019s provisions could face up to 10 years in prison.<\/p>\n<p>Critics of the law have lambasted it as a case of governmental overreach, which could <a href=\"https:\/\/www.alreporter.com\/2025\/05\/13\/alabamians-urge-veto-of-hb445-warning-of-job-losses-and-hemp-industry-collapse\/\">shutter small businesses across the state and harm consumers<\/a>. Higdon echoed many of those same critiques and emphasized how hemp and CBD products are now facing stricter regulations in the state than alcohol.\u00a0<\/p>\n<p>\u201c[The law\u2019s] \u2018attractive to children\u2019 standard includes fruit images on the can [of hemp beverages] which is arbitrary and capricious and would not apply to a beer can with hops on the front or a wine bottle with grapes on the label,\u201d Higdon noted. \u201cAnd so it\u2019s frustrating to see us being treated differently and more strictly than alcohol\u2026 in that manner.\u201d<\/p>\n<p>\u201cThe direct-to-consumer piece of this is very frustrating and could be unconstitutional\u2026 retailers are kind of paralyzed as to what\u2019s next,\u201d he added.<\/p>\n<p>Under HB445, retailers cannot sell hemp-based products for on-premises consumption, or can they offer tastings for customers purchasing consumable hemp products. Additionally, \u201conline sales, direct delivery, drive-through sales, and direct shipment\u201d of hemp products are banned \u2014 a provision which directly inhibits the ability of companies like Cornbread Hemp to conduct business in the state.<\/p>\n<div class=\"code-block code-block-6\" style=\"margin: 8px auto; text-align: center; display: block; clear: both;\">\n<div class=\"zox-post-ad-wrap\"><span class=\"zox-ad-label\">Advertisement. Scroll to continue reading.<\/span><\/div>\n<\/div>\n<p>\u201cWe have thousands of direct-to-consumer customers in Alabama, and we don\u2019t know exactly what this means for our relationship with customers who are depending on our products on a regular basis\u2026 if this bill takes effect the way that it is written, it could immediately impact our ability to serve customers who rely on our products,\u201d Higdon said.<\/p>\n<p>Higdon\u2019s questions concerning the constitutionality of HB445 stem from the state legislature\u2019s attempt to regulate the sale of hemp products in the same manner as alcohol. The 21st Amendment explicitly gives each state the right to make its own independent liquor laws which cannot be violated through interstate commerce. However, no such statute exists regarding hemp products, raising questions about Alabama\u2019s legal authority to outlaw the importation of such products from another state.<\/p>\n<p>Even when setting questions of legality aside, Higdon emphasized the hypocrisy he sees in the standards placed on hemp products in Alabama when compared to those placed on alcohol.<\/p>\n<p>\u201cThere\u2019s a potency cap at 10mg of THC. There\u2019s no potency cap on beer or liquor or wine, to my knowledge, in Alabama,\u201d Higdon said.<\/p>\n<p>\u201cBeer and wine are available at convenience stores, those convenience store clerks are perfectly able to ID check for beer and wine at checkout\u2026 there\u2019s no reason why they can\u2019t sell hemp beverages in the same manner,\u201d he continued. \u201cAnd Alabama allows direct-to-consumer wine sales from out of state but not out-of-state direct-to-consumer hemp sales.\u201d<\/p>\n<p>Given these harsh restrictions, Higdon believes that HB445 will seriously harm small business owners and the hemp industry writ-large in Alabama.<\/p>\n<p>\u201cIt\u2019s definitely going to negatively impact independently-owned entrepreneurial hemp shops,\u201d Higdon said.<\/p>\n<div class=\"code-block code-block-6\" style=\"margin: 8px auto; text-align: center; display: block; clear: both;\">\n<div class=\"zox-post-ad-wrap\"><span class=\"zox-ad-label\">Advertisement. Scroll to continue reading.<\/span><\/div>\n<\/div>\n<p>\u201cA lot of those hemp retailers that are trying to do the right thing are going to pay the penalty for an over-broad bill, and they\u2019re going to go out of business,\u201d he added. \u201cWe\u2019re going to have a lot of people in Alabama who have made a living thinking they were doing the right thing, with a product that\u2019s legal under federal law, but now Alabama says they can\u2019t sell, [go out of business].\u201d<\/p>\n<p>Beyond HB445\u2019s provisions, Higdon also criticized the process by which Republicans in the state legislature forced the bill through in the final moments of the 2025 legislative session.<\/p>\n<p>\u201cSignificant changes were made to this bill at the very last minute and provided no opportunity for public comment or feedback,\u201d Higdon said. \u201cDefinitely some changes made at the last minute intentionally in the Senate that are problematic and frustrating. I\u2019m no stranger to parliamentary tricks, but it just means that the bill\u2019s sponsors realized that they didn\u2019t have public opinion on their side to get what they wanted, so they had to resort to last-minute chicanery.\u201d<\/p>\n<p>However, Higdon did also highlight some silver linings in HB445, saying that \u201cit could have been worse.\u201d<\/p>\n<p>\u201cIn Kentucky, they capped us at 5mg per can, and Alabama has given us 10mg per can\u2026 so that is a positive. They\u2019ve also opened up grocery as a potential retailer for this product, and that\u2019s positive,\u201d Higdon noted.<\/p>\n<p>As for the future, Higdon believes that HB445 is not the end of the fight over hemp regulation in Alabama. Higdon told APR that the U.S. Hemp Roundtable will be lobbying at interim committee meetings before the start of next year\u2019s legislative session to make sure the issue does not \u201cdrop off the radar.\u201d<\/p>\n<p>\u201cThat\u2019s going to be a point of emphasis for us to make sure that our customers and other stakeholders, including legislators, understand that this issue is not going away, and that HB445 was an imperfect attempt at codifying a solution to this problem. And we\u2019re going to be back to make sure they do a better job next session,\u201d he said.<\/p>\n<div class=\"code-block code-block-6\" style=\"margin: 8px auto; text-align: center; display: block; clear: both;\">\n<div class=\"zox-post-ad-wrap\"><span class=\"zox-ad-label\">Advertisement. Scroll to continue reading.<\/span><\/div>\n<\/div>\n<p><!-- CONTENT END 1 -->\n\t\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Jim Higdon is the co-founder of Cornbread Hemp, a Kentucky-based company that sells hemp-based CBD products across the country. Higdon is also a member of the U.S. Hemp Roundtable, an advocacy group focused on \u201cscience-driven, equitable, and inclusive law and regulation\u201d for the hemp and CBD industry. APR recently spoke with Higdon to learn more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":181742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11763],"tags":[33526,31439,27251,65691,93607,88417,27250,93608,4197,17298,29083,93609],"dealstore":[],"offerexpiration":[],"class_list":["post-260115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alabama","tag-2025-legislative-session","tag-alabamas","tag-cbd","tag-consumable-hemp-products","tag-cornbread-hemp","tag-hb445","tag-hemp","tag-hemp-industry","tag-impact","tag-restrictions","tag-thc","tag-u-s-hemp-roundtable"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The impact of Alabama&#039;s new hemp and CBD restrictions - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=260115\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The impact of Alabama&#039;s new hemp and CBD restrictions - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Jim Higdon is the co-founder of Cornbread Hemp, a Kentucky-based company that sells hemp-based CBD products across the country. 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