HB445 Hits Home: A Lawrence County Business Owner Speaks Out
On May 6, 2025, the Alabama Legislature passed House Bill 445 (HB445), a significant overhaul of the state's hemp industry regulations. The bill now awaits Governor Kay Ivey's signature and is set to take effect on July 1, 2025, with full enforcement beginning January 1, 2026.
The journey to this point began with the 2018 federal Farm Bill, which reclassified hemp as an agricultural commodity, effectively legalizing its cultivation and paving the way for state-level programs. In response, Alabama launched its Industrial Hemp Program in 2019, overseen by the Alabama Department of Agriculture and Industries (ADAI). This program facilitated the growth of a burgeoning hemp industry within the state, allowing entrepreneurs and farmers to explore new economic opportunities through the cultivation and sale of hemp-derived products.
HB445: A Controversial Shift in Hemp Regulation
HB445 introduces significant restrictions on the sale and distribution of consumable hemp products. Key provisions include:
A ban on smokable hemp products, including flower buds and vapes.
Prohibition of online sales, direct delivery, and drive-through sales of consumable hemp products.
Limiting the sale of hemp products to adults aged 21 and over, and restricting sales to licensed liquor stores, standalone CBD/hemp stores, and certain pharmacies.
Imposing a 10% excise tax on consumable hemp products, with revenue allocated to the State General Fund and local governments.
Establishing the Consumable Hemp Product Compliance Fund to support the administration and enforcement of the new regulations.
Granting the Alabama Alcoholic Beverage Control (ABC) Board authority to license and regulate manufacturers, wholesalers, and retailers of consumable hemp products.
Supporters of HB445 argue that the bill is necessary to protect public health, particularly among minors, by imposing stricter regulations on hemp-derived products. They point to reports of adverse health incidents involving minors as justification for the new measures.
Representative Andy Whitt, the bill's sponsor, explained, “These are unregulated, unchecked, and dangerous products that are being sold to our children in our convenience stores and retailers across the state, and it is time we put guardrails on this to protect our students in high school.”
Supporters believe the bill will close dangerous loopholes in the system and ensure hemp products are only accessible through trusted, licensed vendors.
However, critics contend that the bill could have devastating effects on small businesses in the hemp industry. They argue that the restrictions could lead to job losses, business closures, and a shift of the industry to larger corporations less connected to local communities.
A Local Business Owner's Perspective
Disclaimer: The views and opinions expressed in this op-ed are those of the author and do not necessarily reflect the official policy or position of LCtoday or its staff.
James Darnell, owner of Trap CBD in Trinity, Alabama, shared his perspective on the potential impact of HB445:
“As someone who spent time in prison for selling marijuana, I know firsthand how tough it is to turn your life around. Since starting my hemp business, I’ve seen how this industry can create real opportunity—something I never thought possible back then. Over the past three years, my business has thrived, and I’m proud to say we’ve followed every law and regulation, thanks to the protections provided by the Farm Bill.
Right now, our industry is making a real impact in Alabama. My business is currently in over 100 stores across the state, with each store spending at least $1,000 weekly on hemp products. This means my business generates at least $2,000 in revenue each week, and with a 7% sales tax, that’s around $14,000 in tax revenue weekly—supporting local communities and state programs.
But now, HB445 threatens everything we’ve built. This bill doesn’t protect our communities; it destroys jobs, shuts down local businesses, and risks handing our industry over to big corporations that don’t have Alabama’s best interests at heart. If passed, it could lead to widespread economic failure for small businesses like mine that are contributing to the local economy every day.
We need smart, sensible regulation—not economic sabotage. I’m calling on Governor Ivey to veto HB445. It’s time to send this bill back to the legislature and work together to create solutions that support small businesses and foster growth in our community.
Alabama citizens, I urge you to stand with our small business owners in the hemp industry. Call Governor Ivey at 334-242-7100 and ask her to veto HB445. Let’s protect our jobs, our economy, and the future of Alabama’s hemp industry.
Regardless if the bill passes or not, we will continue to run some kind of small business in the LC community to generate revenue for this county.”
Looking Ahead
As HB445 awaits the governor's decision, the future of Alabama's hemp industry hangs in the balance. The bill represents a significant shift in the state's approach to hemp regulation, with potential implications for public health, economic development, and the viability of small businesses. Stakeholders across the state continue to voice their opinions, highlighting the need for a balanced approach that safeguards public health while supporting local entrepreneurs.
