Alabama 2025 Regular Session

Alabama Senate Bill SB237 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	SB237INTRODUCED
2	2	Page 0
3	3	SB237
4	4	11HSPL3-1
5	5	By Senators Melson, Albritton, Waggoner, Livingston, Butler,
6	6	Kitchens, Williams, Chesteen, Allen, Sessions, Hovey, Kelley,
7	7	Jones, Beasley, Stewart, Chambliss, Price
8	8	RFD: Healthcare
9	9	First Read: 18-Mar-25
10	10	1
11	11	2
12	12	3
13	13	4
14	14	5
15	15	6
16	16	7 11HSPL3-1 03/17/2025 PMG (L)cr 2025-1274
17	17	Page 1
18	18	First Read: 18-Mar-25
19	19	SYNOPSIS:
20	20	Under existing law, products that contain
21	21	psychoactive cannabinoids found in or derived from hemp
22	22	may not be sold to minors but are otherwise not
23	23	regulated.
24	24	This bill would regulate beverages containing
25	25	hemp derivatives, defined as "hemp beverages," and
26	26	treat hemp beverages for purposes of state law similar
27	27	to beer or wine, to be licensed and regulated by the
28	28	Alcoholic Beverage Control Board.
29	29	This bill would require a license from the board
30	30	to manufacture, distribute, or sell at retail for
31	31	either on-premises or off-premises consumption.
32	32	This bill would establish labeling and testing
33	33	requirements for safety, and would place restrictions
34	34	on where hemp beverages may be sold in stores.
35	35	This bill would levy an excise tax on hemp
36	36	beverages at the rate of ten percent on the retail
37	37	sales price, in addition to any state or local sales
38	38	tax.
39	39	This bill would regulate consumable products
40	40	containing hemp derivatives other than beverages,
41	41	defined as "psychoactive hemp products" and treat these
42	42	products for purposes of state law similar to tobacco
43	43	products, to be permitted and regulated by the
44	44	1
45	45	2
46	46	3
47	47	4
48	48	5
49	49	6
50	50	7
51	51	8
52	52	9
53	53	10
54	54	11
55	55	12
56	56	13
57	57	14
58	58	15
59	59	16
60	60	17
61	61	18
62	62	19
63	63	20
64	64	21
65	65	22
66	66	23
67	67	24
68	68	25
69	69	26
70	70	27
71	71	28 SB237 INTRODUCED
72	72	Page 2
73	73	products, to be permitted and regulated by the
74	74	Alcoholic Beverage Control Board.
75	75	This bill would require psychoactive hemp
76	76	products to be placed onto the ENDS directory
77	77	maintained by the Department of Revenue and would
78	78	provide requirements for such products to be listed on
79	79	the directory.
80	80	This bill would establish labeling requirements
81	81	and restrict advertising of these products.
82	82	This bill would prohibit the sale of any
83	83	products containing hemp derivatives to individuals
84	84	under 21 years of age and provide penalties for
85	85	violations.
86	86	This bill would prohibit smokable hemp products
87	87	in the state.
88	88	This bill would also provide civil and criminal
89	89	penalties for violations.
90	90	A BILL
91	91	TO BE ENTITLED
92	92	AN ACT
93	93	Relating to psychoactive cannabinoids; to add Chapter
94	94	12 to Title 28, Code of Alabama 1975; to license and regulate
95	95	hemp beverages that contain psychoactive cannabinoids; to
96	96	provide for licensure of manufacturers, wholesalers, and
97	97	retailers of hemp beverages by the Alcoholic Beverage Control
98	98	Board and set fees and requirements for licensure; to impose
99	99	29
100	100	30
101	101	31
102	102	32
103	103	33
104	104	34
105	105	35
106	106	36
107	107	37
108	108	38
109	109	39
110	110	40
111	111	41
112	112	42
113	113	43
114	114	44
115	115	45
116	116	46
117	117	47
118	118	48
119	119	49
120	120	50
121	121	51
122	122	52
123	123	53
124	124	54
125	125	55
126	126	56 SB237 INTRODUCED
127	127	Page 3
128	128	Board and set fees and requirements for licensure; to impose
129	129	labeling and testing requirements for hemp beverages; to levy
130	130	an excise tax on retail sales of hemp beverages; to amend
131	131	Sections 28-11-1, 28-11-2, 28-11-3, 28-11-4, 28-11-5,
132	132	28-11-6.2, 28-11-8, and 28-11-9, Section 28-11-13, as last
133	133	amended by Act 2024-79 of the 2024 Regular Session, and
134	134	Sections 28-11-15, 28-11-16, and 28-11-19, Code of Alabama
135	135	1975; to add Sections 28-11-1.1, 28-11-1.2, 28-11-7.1,
136	136	28-11-15.1, 28-11-16.1, 28-11-17.2, and 28-11-22 to the Code
137	137	of Alabama 1975; to permit and regulate psychoactive hemp
138	138	products other than beverages; to require a permit for
139	139	retailers of psychoactive hemp products and set fees; to
140	140	impose labeling and advertising requirements; to impose
141	141	labeling and testing requirements for psychoactive hemp
142	142	products; to impose civil and criminal penalties for
143	143	violations; to prohibit sales of all consumable products
144	144	containing hemp derivatives to individuals under 21 years of
145	145	age; to levy an excise tax on retail sales of psychoactive
146	146	hemp products; and to amend Section 13A-12-214.4, Code of
147	147	Alabama 1975, and add Section 13A-12-214.5 to the Code of
148	148	Alabama 1975, to prohibit the possession of smokable hemp
149	149	products and provide for criminal penalties.
150	150	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
151	151	Section 1. Chapter 12 is added to Title 28, Code of
152	152	Alabama 1975, to read as follows:
153	153	Article 1. General Provisions
154	154	§28-12-1
155	155	It is the intent of the Legislature, through the
156	156	provisions of this chapter, to:
157	157	57
158	158	58
159	159	59
160	160	60
161	161	61
162	162	62
163	163	63
164	164	64
165	165	65
166	166	66
167	167	67
168	168	68
169	169	69
170	170	70
171	171	71
172	172	72
173	173	73
174	174	74
175	175	75
176	176	76
177	177	77
178	178	78
179	179	79
180	180	80
181	181	81
182	182	82
183	183	83
184	184	84 SB237 INTRODUCED
185	185	Page 4
186	186	provisions of this chapter, to:
187	187	(1) Exercise the police power of the State of Alabama
188	188	to regulate the sale and distribution of hemp beverages for
189	189	the protection of the public welfare, health, peace, and
190	190	morals of the people of the state; and
191	191	(2) Eliminate the sale of hemp beverages to, and
192	192	consumption of hemp beverages by, individuals under 21 years
193	193	of age.
194	194	§28-12-2
195	195	Nothing in this chapter shall prevent the governing
196	196	body of any county or municipality to ban or further regulate
197	197	where or when hemp beverages may be sold within the respective
198	198	jurisdiction of the county or municipality.
199	199	§28-12-3
200	200	As used in this chapter, the following terms have the
201	201	following meanings:
202	202	(1) BATCH. A specific quantity of a specific product
203	203	containing psychoactive cannabinoids that: (i) is manufactured
204	204	at the same time and using the same methods, equipment, and
205	205	ingredients that are uniform and intended to meet
206	206	specifications for identity, strength, purity, and
207	207	composition, and (ii) is manufactured, packaged, and labeled
208	208	according to a single batch production record executed and
209	209	documented.
210	210	(2) CARTON. The package or container or containers in
211	211	which hemp beverages are originally packaged for shipment to
212	212	market by the manufacturer or its designated representatives.
213	213	(3) CERTIFICATE OF ANALYSIS (COA). A document issued by
214	214	an independent, accredited laboratory that provides
215	215	85
216	216	86
217	217	87
218	218	88
219	219	89
220	220	90
221	221	91
222	222	92
223	223	93
224	224	94
225	225	95
226	226	96
227	227	97
228	228	98
229	229	99
230	230	100
231	231	101
232	232	102
233	233	103
234	234	104
235	235	105
236	236	106
237	237	107
238	238	108
239	239	109
240	240	110
241	241	111
242	242	112 SB237 INTRODUCED
243	243	Page 5
244	244	an independent, accredited laboratory that provides
245	245	information about the chemical composition of a particular
246	246	batch of hemp beverages.
247	247	(4) CONTAINER. The bottle, can, bag, or other
248	248	receptacle, not a carton, in which hemp beverages are
249	249	originally packaged for the market by the manufacturer or its
250	250	designated representatives and from which the hemp beverage is
251	251	consumed by or dispensed to the public.
252	252	(5) HEMP BEVERAGE. Any product that is intended to be
253	253	consumed as a beverage by humans that contains psychoactive
254	254	cannabinoids. The term excludes medical cannabis regulated
255	255	under Chapter 2A of Title 20.
256	256	(6) KEG. A pressurized factory sealed container used to
257	257	dispense hemp beverages on draft.
258	258	(7) MANUFACTURER. Any person licensed by the board
259	259	engaged in the producing, bottling, manufacturing, blending,
260	260	infusing, cooking, rectifying, or compounding of hemp
261	261	beverages in this state for sale or distribution in this state
262	262	or to the board or to a licensee of the board.
263	263	(8) MULTI-USE CONTAINER. A resealable container
264	264	designed and intended for multiple servings of a hemp
265	265	beverage.
266	266	(9) PSYCHOACTIVE CANNABINOIDS. Cannabinoids derived
267	267	from or found in hemp as defined in Section 2-8-381,
268	268	including, but not limited to, cannabidiol (CBD),
269	269	delta-8-tetrahydrocannabinol (delta-8 THC),
270	270	delta-9-tetrahydrocannabinol (delta-9 THC), and
271	271	delta-10-tetrahydrocannabinol (delta-10 THC).
272	272	(10) RETAILER. Any person licensed by the board to
273	273	113
274	274	114
275	275	115
276	276	116
277	277	117
278	278	118
279	279	119
280	280	120
281	281	121
282	282	122
283	283	123
284	284	124
285	285	125
286	286	126
287	287	127
288	288	128
289	289	129
290	290	130
291	291	131
292	292	132
293	293	133
294	294	134
295	295	135
296	296	136
297	297	137
298	298	138
299	299	139
300	300	140 SB237 INTRODUCED
301	301	Page 6
302	302	(10) RETAILER. Any person licensed by the board to
303	303	engage in the retail sale of any hemp beverages to the
304	304	consumer.
305	305	(11) WHOLESALER. Any person licensed by the board to
306	306	engage in the sale and distribution of hemp beverages within
307	307	this state, at wholesale only, to be sold by export or to
308	308	retail licensees or other wholesaler licensees or others
309	309	within this state lawfully authorized to sell hemp beverages
310	310	for the purpose of resale only.
311	311	§28-12-4
312	312	(a) The manufacture, possession, sale, consumption,
313	313	use, and delivery of hemp beverages within this state shall be
314	314	regulated and enforced by the board through the licensure of
315	315	manufacturers, wholesalers, and retailers of hemp beverages,
316	316	as provided in this chapter.
317	317	(b) The board may enter upon the premises of any
318	318	licensee to examine, or cause to be examined by any agent or
319	319	representative designated by the board for that purpose, any
320	320	books, papers, or other records and to secure other
321	321	information directly or indirectly relating to the enforcement
322	322	of this chapter.
323	323	(c) The board shall adopt rules as necessary to
324	324	implement this chapter.
325	325	Article 2 Hemp Beverage Licenses
326	326	§28-12-20
327	327	(a) Subject to this chapter and rules adopted
328	328	thereunder, the board may issue and renew licenses to
329	329	reputable and responsible persons for the following purposes:
330	330	(1) To manufacture or otherwise produce, blend, bottle,
331	331	141
332	332	142
333	333	143
334	334	144
335	335	145
336	336	146
337	337	147
338	338	148
339	339	149
340	340	150
341	341	151
342	342	152
343	343	153
344	344	154
345	345	155
346	346	156
347	347	157
348	348	158
349	349	159
350	350	160
351	351	161
352	352	162
353	353	163
354	354	164
355	355	165
356	356	166
357	357	167
358	358	168 SB237 INTRODUCED
359	359	Page 7
360	360	(1) To manufacture or otherwise produce, blend, bottle,
361	361	infuse, cook, rectify, or compound hemp beverages within this
362	362	state for sale or distribution within this state.
363	363	(2) To distribute, wholesale, or act as jobber for the
364	364	sale of hemp beverages to licensed retailers within the state
365	365	and others within this state lawfully authorized to sell hemp
366	366	beverages.
367	367	(3) To sell hemp beverages at retail for on-premises
368	368	consumption.
369	369	(4) To sell hemp beverages at retail for off-premises
370	370	consumption.
371	371	(b) The board is granted discretionary powers in acting
372	372	upon license applications under this chapter.
373	373	(c) Licenses issued under this chapter, unless revoked
374	374	or suspended by the board, shall be valid for the license year
375	375	which shall begin on October 1 of each year, unless otherwise
376	376	established by this chapter or by the board. Licenses may be
377	377	issued at any time during the year.
378	378	§28-12-21
379	379	(a)(1) Effective January 1, 2026, upon the submission
380	380	of an application and application fee, as prescribed by the
381	381	board by rule, the board shall issue to the applicant a
382	382	manufacturer license that authorizes the licensee to
383	383	manufacture or otherwise produce, blend, bottle, infuse, cook,
384	384	rectify, or compound hemp beverages within this state or for
385	385	sale to a retailer or wholesaler within this state.
386	386	(2) No person shall manufacture or otherwise produce,
387	387	blend, bottle, infuse, cook, rectify, or compound hemp
388	388	beverages within this state or for sale or distribution within
389	389	169
390	390	170
391	391	171
392	392	172
393	393	173
394	394	174
395	395	175
396	396	176
397	397	177
398	398	178
399	399	179
400	400	180
401	401	181
402	402	182
403	403	183
404	404	184
405	405	185
406	406	186
407	407	187
408	408	188
409	409	189
410	410	190
411	411	191
412	412	192
413	413	193
414	414	194
415	415	195
416	416	196 SB237 INTRODUCED
417	417	Page 8
418	418	beverages within this state or for sale or distribution within
419	419	this state, unless the person is issued a manufacturer license
420	420	by the board.
421	421	(b) A manufacturer licensee may not:
422	422	(1) Sell any hemp beverages for consumption on the
423	423	premises where sold;
424	424	(2) Sell any hemp beverages within this state directly
425	425	to consumers;
426	426	(3) Sell or deliver any hemp beverages in other than
427	427	original containers approved by the board; or
428	428	(4) Maintain or operate within the state any place or
429	429	places, other than the place or places covered by the
430	430	manufacturer license where hemp beverages are manufactured or
431	431	sold.
432	432	(c) Effective January 1, 2026, each manufacturer
433	433	licensee shall file with the board prior to making any sales
434	434	within this state:
435	435	(1) The label for each container to be sold in this
436	436	state, which label must comply with Section 28-12-40; and
437	437	(2) The certificate of analysis for each batch of hemp
438	438	beverages to be sold in this state, which certificate must
439	439	provide the information as established in Section 28-12-41.
440	440	(d) On and after January 1, 2026, all hemp beverages
441	441	whose labels and certificates of analysis have not been filed
442	442	as provided in subsection (c) shall be considered contraband
443	443	and may be seized by the board or its agents, or any law
444	444	enforcement officer of the state without a warrant, and the
445	445	goods shall be delivered to, and disposed of by, the board.
446	446	(e) A manufacturer licensee shall be required to mail
447	447	197
448	448	198
449	449	199
450	450	200
451	451	201
452	452	202
453	453	203
454	454	204
455	455	205
456	456	206
457	457	207
458	458	208
459	459	209
460	460	210
461	461	211
462	462	212
463	463	213
464	464	214
465	465	215
466	466	216
467	467	217
468	468	218
469	469	219
470	470	220
471	471	221
472	472	222
473	473	223
474	474	224 SB237 INTRODUCED
475	475	Page 9
476	476	(e) A manufacturer licensee shall be required to mail
477	477	to the board prior to the twentieth day of each month a
478	478	consolidated report of all shipments of hemp beverages made to
479	479	each retailer and wholesaler during the preceding month. The
480	480	reports shall be in the form and containing information as the
481	481	board may prescribe.
482	482	(f) A manufacturer licensee shall keep at its principal
483	483	place of business within this state daily permanent records
484	484	that show the quantities of raw materials received and used in
485	485	the manufacture of hemp beverages and the quantities of hemp
486	486	beverages manufactured and stored, the sale of hemp beverages,
487	487	the quantities of hemp beverages stored for hire or
488	488	transported for hire by or for the licensee, and the names and
489	489	addresses of the purchasers or other recipients thereof.
490	490	(g)(1) Every place licensed as a manufacturer shall be
491	491	subject to inspection by members of the board or by
492	492	individuals authorized and designated by the board at any time
493	493	of the day or night as they may deem necessary, for the
494	494	detection of violations of this chapter, any law, or the rules
495	495	of the board, or for the purpose of ascertaining the
496	496	correctness of the records required to be kept by the
497	497	licensees.
498	498	(2) The books and records of licensees at all times
499	499	shall be open to inspection by members of the board or by
500	500	individuals authorized and designated by the board.
501	501	(3) Members of the board and its authorized agents,
502	502	without hindrance, may enter any place that is subject to
503	503	inspection hereunder or any place where records are kept for
504	504	the purpose of making inspections and making transcripts
505	505	225
506	506	226
507	507	227
508	508	228
509	509	229
510	510	230
511	511	231
512	512	232
513	513	233
514	514	234
515	515	235
516	516	236
517	517	237
518	518	238
519	519	239
520	520	240
521	521	241
522	522	242
523	523	243
524	524	244
525	525	245
526	526	246
527	527	247
528	528	248
529	529	249
530	530	250
531	531	251
532	532	252 SB237 INTRODUCED
533	533	Page 10
534	534	the purpose of making inspections and making transcripts
535	535	thereof.
536	536	§28-12-22
537	537	(a) Effective January 1, 2026, upon the submission of
538	538	an application and application fee, as prescribed by the board
539	539	by rule, the board shall issue to the applicant a wholesaler
540	540	license that authorizes the licensee to import and receive
541	541	shipments of hemp beverages from outside the state from
542	542	licensed manufacturers, to purchase hemp beverages from
543	543	licensed manufacturers or other licensed wholesalers within
544	544	the state, to sell at wholesale and distribute hemp beverages
545	545	to retailer licensees, and to export hemp beverages from the
546	546	state. Sales to all retailer licensees shall be in original
547	547	packages or containers as prepared for the market by the
548	548	manufacturer or bottler.
549	549	(b) No person shall sell at wholesale or distribute
550	550	hemp beverages within this state or to retailer licensees
551	551	unless the person has been issued a wholesaler license by the
552	552	board.
553	553	(c) A wholesaler may not sell any hemp beverages within
554	554	this state directly to consumers.
555	555	§28-12-23
556	556	(a) Effective January 1, 2026, upon the submission of
557	557	an application and application fee, as prescribed by the board
558	558	by rule, the board shall issue to the applicant a retail
559	559	license that authorizes the licensee to purchase hemp
560	560	beverages from a licensed manufacturer or wholesaler and to
561	561	sell hemp beverages at retail for on-premises consumption in a
562	562	room or rooms or place on the licensed premises, for
563	563	253
564	564	254
565	565	255
566	566	256
567	567	257
568	568	258
569	569	259
570	570	260
571	571	261
572	572	262
573	573	263
574	574	264
575	575	265
576	576	266
577	577	267
578	578	268
579	579	269
580	580	270
581	581	271
582	582	272
583	583	273
584	584	274
585	585	275
586	586	276
587	587	277
588	588	278
589	589	279
590	590	280 SB237 INTRODUCED
591	591	Page 11
592	592	room or rooms or place on the licensed premises, for
593	593	off-premises consumption.
594	594	(b) A retail licensee for off-premises consumption may
595	595	only be sold in original unopened containers.
596	596	(c) No person shall sell hemp beverages at retail for
597	597	either: (i) on-premises consumption; or (ii) off-premises
598	598	consumption within this state unless the person has been
599	599	issued the appropriate on-premises retailer license or
600	600	off-premises retailer license by the board.
601	601	§28-12-24
602	602	(a) Effective January 1, 2026, upon the submission of
603	603	an application and application fee, as prescribed by the board
604	604	by rule, the board shall issue to the applicant the applicable
605	605	hemp beverage license as established in Sections 28-12-21
606	606	through 28-12-23 to any person who holds and possesses any of
607	607	the following:
608	608	(1) A valid manufacturer license as provided for in
609	609	Section 28-3A-6.
610	610	(2) A valid wholesaler license as provided for in
611	611	Section 28-3A-9.
612	612	(3) A valid retail license as provided for in Sections
613	613	28-3A-11 through 28-3A-20.
614	614	(b) Notwithstanding any provision of this title or
615	615	rules of the board to the contrary, upon the issuance of a
616	616	hemp beverage license in accordance with subsection (a)(3),
617	617	retail licensees under Section 28-3A-11, commonly known as
618	618	package stores, shall be authorized to purchase hemp beverages
619	619	from a licensed hemp beverage wholesaler and sell hemp
620	620	beverages at retail commensurate with the privileges granted
621	621	281
622	622	282
623	623	283
624	624	284
625	625	285
626	626	286
627	627	287
628	628	288
629	629	289
630	630	290
631	631	291
632	632	292
633	633	293
634	634	294
635	635	295
636	636	296
637	637	297
638	638	298
639	639	299
640	640	300
641	641	301
642	642	302
643	643	303
644	644	304
645	645	305
646	646	306
647	647	307
648	648	308 SB237 INTRODUCED
649	649	Page 12
650	650	beverages at retail commensurate with the privileges granted
651	651	to such store to sell alcoholic beverages.
652	652	(c) Except for payment of the applicable license fee,
653	653	there shall be no additional licensing or administrative
654	654	requirements, including no requirement for additional
655	655	background checks, which may be imposed by the state, a
656	656	county, or a municipality for licenses issued under this
657	657	section.
658	658	§28-12-25
659	659	(a) The board shall impose the following annual license
660	660	fees for hemp beverage licenses issued and renewed by the
661	661	board:
662	662	(1) Manufacturer license, license fee of five hundred
663	663	dollars ($500).
664	664	(2) Wholesaler license, license fee of five hundred
665	665	fifty dollars ($550), plus two hundred dollars ($200) for each
666	666	warehouse in addition to the principal warehouse.
667	667	(3) Retail license for on-premises consumption, license
668	668	fee of one hundred fifty dollars ($150).
669	669	(4) Retail license for off-premises consumption,
670	670	license fee of one hundred fifty dollars ($150).
671	671	(b) The license fees shall be paid before a license may
672	672	be issued or renewed.
673	673	§28-12-26
674	674	The requirements and restrictions on licensees set
675	675	forth in subsections (a), (b), (c), (d), (f), (g), (k), (l),
676	676	(m), and (n) of Section 28-3A-23 are adopted and apply to this
677	677	article, and any reference therein to alcoholic beverages
678	678	shall refer to hemp beverages for purposes of this chapter.
679	679	309
680	680	310
681	681	311
682	682	312
683	683	313
684	684	314
685	685	315
686	686	316
687	687	317
688	688	318
689	689	319
690	690	320
691	691	321
692	692	322
693	693	323
694	694	324
695	695	325
696	696	326
697	697	327
698	698	328
699	699	329
700	700	330
701	701	331
702	702	332
703	703	333
704	704	334
705	705	335
706	706	336 SB237 INTRODUCED
707	707	Page 13
708	708	shall refer to hemp beverages for purposes of this chapter.
709	709	§28-12-27
710	710	(a) Except subdivisions (a)(10) and (a)(13) of Section
711	711	28-3A-25(a)(10) and (a)(13), the violations of the alcoholic
712	712	beverage laws described in Section 28-3A-25(a) and the
713	713	penalties described in Section 28-3A-25(b) and (c) are adopted
714	714	and apply to this article, and any reference therein to
715	715	alcoholic beverages shall refer to hemp beverages for purposes
716	716	of this chapter.
717	717	(b)(1) In addition to subsection (a), it shall be
718	718	unlawful for any person to:
719	719	a. Sell hemp beverages in any county or municipality
720	720	that has prohibited the sale of hemp beverages or to sell hemp
721	721	beverages in a manner that violates a restriction authorized
722	722	under Section 28-12-2 as to where or when hemp beverages may
723	723	be sold; or
724	724	b. Adulterate, contaminate, or in any manner change the
725	725	character or purity of a hemp beverage from that as originally
726	726	marketed and packaged by the manufacturer.
727	727	(2) A violation of this subsection shall be subject to
728	728	the penalties described in Section 28-3A-25(b).
729	729	§28-12-28
730	730	The board may revoke licenses under the same terms and
731	731	conditions set forth in Section 28-3A-26.
732	732	Article 3 Hemp Beverage Guidelines
733	733	§28-12-40
734	734	(a) Every container of hemp beverages must bear a label
735	735	that contains, at a minimum:
736	736	(1) The name, location, contact phone number, and
737	737	337
738	738	338
739	739	339
740	740	340
741	741	341
742	742	342
743	743	343
744	744	344
745	745	345
746	746	346
747	747	347
748	748	348
749	749	349
750	750	350
751	751	351
752	752	352
753	753	353
754	754	354
755	755	355
756	756	356
757	757	357
758	758	358
759	759	359
760	760	360
761	761	361
762	762	362
763	763	363
764	764	364 SB237 INTRODUCED
765	765	Page 14
766	766	(1) The name, location, contact phone number, and
767	767	website of the manufacturer of the product;
768	768	(2) The name and address of the independent, accredited
769	769	laboratory used by the manufacturer to test the product;
770	770	(3) The batch number;
771	771	(4) The total number of milligrams of psychoactive
772	772	cannabinoids found in the container;
773	773	(5) The serving size, which may not exceed 12 ounces;
774	774	(6) The total number of milligrams of psychoactive
775	775	cannabinoids per serving;
776	776	(7) The International Intoxicating Cannabinoid Product
777	777	Symbol (IICPS);
778	778	(8) A list of ingredients, including identification of
779	779	any major food allergens declared by name;
780	780	(9) A statement that the hemp beverage does not claim
781	781	to diagnose, treat, cure, or prevent any disease and has not
782	782	been evaluated or approved by the U.S. Food and Drug
783	783	Administration (FDA), unless the product has been so approved;
784	784	and
785	785	(10) The following warnings:
786	786	a. To keep the product out of reach of children;
787	787	b. That consumption of the product impairs person's
788	788	ability to drive and operate machinery;
789	789	c. For persons who are pregnant, nursing, or taking
790	790	medications, to consult their licensed healthcare professional
791	791	about safety before consuming the product;
792	792	d. That the product is not intended for sale to or use
793	793	by persons under 21 years of age;
794	794	e. That the psychoactive cannabinoids in the product
795	795	365
796	796	366
797	797	367
798	798	368
799	799	369
800	800	370
801	801	371
802	802	372
803	803	373
804	804	374
805	805	375
806	806	376
807	807	377
808	808	378
809	809	379
810	810	380
811	811	381
812	812	382
813	813	383
814	814	384
815	815	385
816	816	386
817	817	387
818	818	388
819	819	389
820	820	390
821	821	391
822	822	392 SB237 INTRODUCED
823	823	Page 15
824	824	e. That the psychoactive cannabinoids in the product
825	825	are derived from hemp.
826	826	(b) Containers of hemp beverages may not:
827	827	(1) Bear the likeness or contain cartoon-like
828	828	characteristics of a real or fictional person, animal, or
829	829	fruit that appeals to children;
830	830	(2) Be modeled after a brand of products primarily
831	831	consumed by or marketed to children;
832	832	(3) Contain an ingredient, other than a psychoactive
833	833	cannabinoid, that is not approved by the United States Food
834	834	and Drug Administration for use in beverages;
835	835	(4) Include a statement, artwork, or design that could
836	836	reasonably mislead an individual to believe that the package
837	837	contains anything other than a hemp beverage product;
838	838	(5) Contain alcohol; provided, however, hemp beverages
839	839	may contain trace amounts of alcohol if the alcohol is solely
840	840	derived from flavoring agents or ingredients such as bitters
841	841	and the presence of trace amounts of alcohol does not cause
842	842	the hemp beverage to be classified as an alcoholic beverage
843	843	under state or federal law; or
844	844	(6) Contain caffeine; provided, however, hemp beverages
845	845	may contain naturally occurring caffeine derived from
846	846	ingredients such as coffee, tea, or other natural sources, so
847	847	long as the caffeine does not exceed levels deemed safe by
848	848	generally accepted dietary guidelines.
849	849	(c) Hemp beverages must be packaged in child-resistant
850	850	packaging, which may include traditional beverage cans with a
851	851	stay-on tab mechanism.
852	852	(d) Hemp beverages may not contain more than a total of
853	853	393
854	854	394
855	855	395
856	856	396
857	857	397
858	858	398
859	859	399
860	860	400
861	861	401
862	862	402
863	863	403
864	864	404
865	865	405
866	866	406
867	867	407
868	868	408
869	869	409
870	870	410
871	871	411
872	872	412
873	873	413
874	874	414
875	875	415
876	876	416
877	877	417
878	878	418
879	879	419
880	880	420 SB237 INTRODUCED
881	881	Page 16
882	882	(d) Hemp beverages may not contain more than a total of
883	883	10 milligrams of psychoactive cannabinoids per container, and
884	884	a single container may not contain more than 12 ounces of
885	885	beverage. Kegs and multi-use containers that hold a volume no
886	886	less than 750 milliliters may contain more than 10 milligrams
887	887	of psychoactive cannabinoids, so long as the intended single
888	888	serving from the keg or multi-use container does not exceed 10
889	889	milligrams of psychoactive cannabinoids.
890	890	(e) Hemp beverages must not be packaged in cartons
891	891	containing more than six containers.
892	892	(f) Hemp beverages may be dispensed from kegs and
893	893	multi-use containers for on-premises consumption only in
894	894	servings not exceeding 10 milligrams of psychoactive
895	895	cannabinoids. Kegs and multi-use containers may not be sold by
896	896	off-premises licensees.
897	897	(g) Any hemp beverages found not complying with the
898	898	provisions of this section shall be considered contraband and
899	899	may be seized by the board or its agents or by any law
900	900	enforcement officer of the State of Alabama without a warrant,
901	901	and the goods shall be delivered to, and disposed of by, the
902	902	board.
903	903	§28-12-41
904	904	(a) Prior to making any sales within this state, a
905	905	manufacturer shall submit representative samples of each batch
906	906	of the hemp beverage product to be sold within this state or
907	907	for sale or distribution within this state to an independent,
908	908	accredited laboratory for a certificate of analysis
909	909	certifying, at a minimum, that the product:
910	910	(1) Contains an amount of delta-8 tetrahydrocannabinol,
911	911	421
912	912	422
913	913	423
914	914	424
915	915	425
916	916	426
917	917	427
918	918	428
919	919	429
920	920	430
921	921	431
922	922	432
923	923	433
924	924	434
925	925	435
926	926	436
927	927	437
928	928	438
929	929	439
930	930	440
931	931	441
932	932	442
933	933	443
934	934	444
935	935	445
936	936	446
937	937	447
938	938	448 SB237 INTRODUCED
939	939	Page 17
940	940	(1) Contains an amount of delta-8 tetrahydrocannabinol,
941	941	delta-9 tetrahydrocannabinol, delta-10 tetrahydrocannabinol,
942	942	or any other psychoactive cannabinoid not exceeding that which
943	943	is stated on the label of the product; and
944	944	(2) Does not contain more than trace amounts of any
945	945	mold, residual solvents or other catalysts, pesticides,
946	946	fertilizers, or heavy metals.
947	947	(b) A manufacturer must disclose all known information
948	948	regarding pesticides, fertilizers, solvents, or other foreign
949	949	materials applied to hemp or added to hemp during any
950	950	production or processing stages of any batch from which a
951	951	representative sample has been sent for testing, including any
952	952	catalysts used to create psychoactive cannabinoids. The
953	953	disclosure must be made to the laboratory performing testing
954	954	or sampling and, upon request, to the board. The disclosure
955	955	must include all information known to the manufacturer
956	956	regardless of whether the application or addition was made
957	957	intentionally or accidentally, or by the manufacturer or any
958	958	other person.
959	959	(c) Prior to making any sales within this state, a
960	960	manufacturer shall submit the certificate of analysis required
961	961	by this section to the board, and a manufacturer shall not
962	962	sell or offer for sale or distribution within this state any
963	963	hemp beverages from a batch which has not obtained a
964	964	certificate of analysis.
965	965	(d) Any hemp beverages found not complying with this
966	966	section shall be considered contraband and may be seized by
967	967	the board or its agents or by any law enforcement officer of
968	968	the state without a warrant, and the goods shall be delivered
969	969	449
970	970	450
971	971	451
972	972	452
973	973	453
974	974	454
975	975	455
976	976	456
977	977	457
978	978	458
979	979	459
980	980	460
981	981	461
982	982	462
983	983	463
984	984	464
985	985	465
986	986	466
987	987	467
988	988	468
989	989	469
990	990	470
991	991	471
992	992	472
993	993	473
994	994	474
995	995	475
996	996	476 SB237 INTRODUCED
997	997	Page 18
998	998	the state without a warrant, and the goods shall be delivered
999	999	to, and disposed of by, the board.
1000	1000	§28-12-42
1001	1001	(a) Prior to initiating a sale or otherwise providing
1002	1002	hemp beverages to an individual, an employee of a retailer
1003	1003	must verify that the individual is at least 21 years of age.
1004	1004	(b) Proof of age may be established only by one of the
1005	1005	following:
1006	1006	(1) A valid driver license of any state.
1007	1007	(2) A valid United States Uniformed Service
1008	1008	Identification.
1009	1009	(3) A valid passport.
1010	1010	(4) A valid identification issued by any agency of a
1011	1011	state for the purpose of identification, bearing a photograph
1012	1012	and date of birth of the individual in question.
1013	1013	(c) The board shall levy a civil penalty against any
1014	1014	licensee who sells a hemp beverage to an individual under 21
1015	1015	years of age as follows:
1016	1016	(1) One thousand five hundred dollars ($1,500) for a
1017	1017	first offense.
1018	1018	(2) Two thousand five hundred dollars ($2,500) for a
1019	1019	second offense.
1020	1020	(3) Five thousand dollars ($5,000) for a third offense.
1021	1021	(4) Revocation of all licenses and permits issued by
1022	1022	the board to the licensee for a fourth offense. In addition,
1023	1023	the board shall not issue any license or permit under this
1024	1024	title until the expiration of one year from the date the
1025	1025	license or licenses are revoked at the location where the
1026	1026	violation occurred.
1027	1027	477
1028	1028	478
1029	1029	479
1030	1030	480
1031	1031	481
1032	1032	482
1033	1033	483
1034	1034	484
1035	1035	485
1036	1036	486
1037	1037	487
1038	1038	488
1039	1039	489
1040	1040	490
1041	1041	491
1042	1042	492
1043	1043	493
1044	1044	494
1045	1045	495
1046	1046	496
1047	1047	497
1048	1048	498
1049	1049	499
1050	1050	500
1051	1051	501
1052	1052	502
1053	1053	503
1054	1054	504 SB237 INTRODUCED
1055	1055	Page 19
1056	1056	violation occurred.
1057	1057	(d) In addition to the penalties described in
1058	1058	subsection (c), a retailer who violates this section shall
1059	1059	notify the wholesaler from whom the retailer purchased the
1060	1060	hemp beverage of the violation. For a third or fourth offense,
1061	1061	the wholesaler shall be vicariously liable and subject to the
1062	1062	same penalties as the retailer.
1063	1063	§28-12-43
1064	1064	(a) Off-premises retail licensees must designate a
1065	1065	specific area within their premises for the display and sale
1066	1066	of hemp beverages.
1067	1067	(b) The designated sales space for hemp beverages must
1068	1068	be:
1069	1069	(1) Separate from areas used for the display or sale of
1070	1070	non-alcoholic beverages and of alcoholic beverages; and
1071	1071	(2) Clearly marked and identified as a space for hemp
1072	1072	beverages to prevent consumer confusion.
1073	1073	(c) The designated space must include signage that:
1074	1074	(1) Clearly identifies the products as hemp beverages
1075	1075	containing psychoactive cannabinoids; and
1076	1076	(2) States that the products are not intended for sale
1077	1077	to persons under 21 years of age.
1078	1078	Article 4 Taxation
1079	1079	§28-12-60
1080	1080	(a) An excise tax at the rate of ten percent is levied
1081	1081	on the retail sales price of a hemp beverage product. The tax
1082	1082	is in addition to any other tax imposed by federal, state, or
1083	1083	local law.
1084	1084	(b) The tax levied by this section is intended to be
1085	1085	505
1086	1086	506
1087	1087	507
1088	1088	508
1089	1089	509
1090	1090	510
1091	1091	511
1092	1092	512
1093	1093	513
1094	1094	514
1095	1095	515
1096	1096	516
1097	1097	517
1098	1098	518
1099	1099	519
1100	1100	520
1101	1101	521
1102	1102	522
1103	1103	523
1104	1104	524
1105	1105	525
1106	1106	526
1107	1107	527
1108	1108	528
1109	1109	529
1110	1110	530
1111	1111	531
1112	1112	532 SB237 INTRODUCED
1113	1113	Page 20
1114	1114	(b) The tax levied by this section is intended to be
1115	1115	passed on to and borne by the purchaser of the hemp beverage
1116	1116	product. The tax is a debt from the purchaser to the retailer
1117	1117	until paid. The retailer is considered to act as a trustee on
1118	1118	behalf of the board when the retailer collects the tax from
1119	1119	the purchaser on a taxable transaction. The tax must be stated
1120	1120	and charged separately on any documentation provided to the
1121	1121	purchaser by the retailer at the time of the transaction.
1122	1122	(c) The tax levied during the preceding month is due
1123	1123	and payable monthly to the board on the first day of each
1124	1124	month, and for the purpose of ascertaining the amount of tax
1125	1125	payable under this section, all retailers making taxable sales
1126	1126	on or before the twentieth day of each month shall transmit to
1127	1127	the board, upon forms prescribed by the board, returns showing
1128	1128	gross sales during the preceding month.
1129	1129	(d) The revenue generated from the tax shall be
1130	1130	distributed as follows:
1131	1131	(1) Forty percent to the State General Fund.
1132	1132	(2) Thirty-five percent shall be retained by the board
1133	1133	for regulatory and administrative purposes.
1134	1134	(3) Fifteen percent divided equally between the board
1135	1135	and the Alabama State Law Enforcement Agency to be retained by
1136	1136	each for purposes of enforcement.
1137	1137	(4) Ten percent to the treasury of the municipality in
1138	1138	which the hemp beverages were sold within its corporate
1139	1139	limits, or, where sold outside the corporate limits of any
1140	1140	municipality, to the treasury of the county in which the hemp
1141	1141	beverages were sold for the purposes of enforcement.
1142	1142	(e) The taxes levied pursuant to this section are
1143	1143	533
1144	1144	534
1145	1145	535
1146	1146	536
1147	1147	537
1148	1148	538
1149	1149	539
1150	1150	540
1151	1151	541
1152	1152	542
1153	1153	543
1154	1154	544
1155	1155	545
1156	1156	546
1157	1157	547
1158	1158	548
1159	1159	549
1160	1160	550
1161	1161	551
1162	1162	552
1163	1163	553
1164	1164	554
1165	1165	555
1166	1166	556
1167	1167	557
1168	1168	558
1169	1169	559
1170	1170	560 SB237 INTRODUCED
1171	1171	Page 21
1172	1172	(e) The taxes levied pursuant to this section are
1173	1173	exclusive and shall be in lieu of all other and additional
1174	1174	taxes and licenses of the state, county, or municipality,
1175	1175	imposed on the sale of hemp beverages; provided, that nothing
1176	1176	herein contained shall be construed to exempt the retail sale
1177	1177	of hemp beverages from the levy of tax on general retail sales
1178	1178	by the state, county, or municipality in the nature of, or in
1179	1179	lieu of, a general sales tax.
1180	1180	Section 2. Sections 28-11-1, 28-11-2, 28-11-3, 28-11-4,
1181	1181	28-11-5, 28-11-6.2, 28-11-8, and 28-11-9, Section 28-11-13, as
1182	1182	last amended by Act 2024-79 of the 2024 Regular Session, and
1183	1183	Sections 28-11-15, 28-11-16, and 28-11-19, Code of Alabama
1184	1184	1975, are amended to read as follows:
1185	1185	"§28-11-1
1186	1186	It is the intent of the Legislature to prohibit access
1187	1187	to tobacco, tobacco products, psychoactive hemp products,
1188	1188	alternative nicotine products, and electronic nicotine
1189	1189	delivery systems to individuals under the age of 21 years of
1190	1190	age and prevent all of the following:
1191	1191	(1) The possibility of addiction to tobacco, tobacco
1192	1192	products, psychoactive hemp products, alternative nicotine
1193	1193	products, and electronic nicotine delivery systems by
1194	1194	individuals under the age of 21 years of age.
1195	1195	(2) Potential health problems associated with the use
1196	1196	of tobacco, tobacco products, psychoactive hemp products,
1197	1197	alternative nicotine products, and electronic nicotine
1198	1198	delivery systems.
1199	1199	(3) The failure by this state to comply with federal
1200	1200	guidelines or grant funding requirements, when applicable,
1201	1201	561
1202	1202	562
1203	1203	563
1204	1204	564
1205	1205	565
1206	1206	566
1207	1207	567
1208	1208	568
1209	1209	569
1210	1210	570
1211	1211	571
1212	1212	572
1213	1213	573
1214	1214	574
1215	1215	575
1216	1216	576
1217	1217	577
1218	1218	578
1219	1219	579
1220	1220	580
1221	1221	581
1222	1222	582
1223	1223	583
1224	1224	584
1225	1225	585
1226	1226	586
1227	1227	587
1228	1228	588 SB237 INTRODUCED
1229	1229	Page 22
1230	1230	guidelines or grant funding requirements, when applicable,
1231	1231	which relate to the establishment by the state of programs and
1232	1232	policies dealing with the sale of tobacco, tobacco products,
1233	1233	psychoactive hemp products, alternative nicotine products, and
1234	1234	electronic nicotine delivery systems."
1235	1235	"§28-11-2
1236	1236	For purposes of this chapter, the following terms have
1237	1237	the following meanings unless the context clearly indicates
1238	1238	otherwise:
1239	1239	(1) ALTERNATIVE NICOTINE PRODUCT. The term alternative
1240	1240	nicotine product includes any product that consists of or
1241	1241	contains nicotine that can be ingested into the body by
1242	1242	chewing, smoking, absorbing, dissolving, inhaling, snorting,
1243	1243	sniffing, or by any other means. The term does not include a
1244	1244	tobacco product, electronic nicotine delivery system, or any
1245	1245	product that has been approved by the United States Food and
1246	1246	Drug Administration for sale as a tobacco cessation product or
1247	1247	for other medical purposes and that is being marketed and sold
1248	1248	solely for that purpose.
1249	1249	(2) BOARD. The Alabama Alcoholic Beverage Control
1250	1250	Board.
1251	1251	(3) CHILD-RESISTANT PACKAGING. Liquid nicotine
1252	1252	container packaging meeting the requirements of 15 U.S.C. §
1253	1253	1472a.
1254	1254	(4) COMMISSIONER. The Commissioner of the Department of
1255	1255	Revenue.
1256	1256	(5) DISTRIBUTION. To sell, barter, exchange, or give
1257	1257	tobacco or tobacco products for promotional purposes or for
1258	1258	gratis.
1259	1259	589
1260	1260	590
1261	1261	591
1262	1262	592
1263	1263	593
1264	1264	594
1265	1265	595
1266	1266	596
1267	1267	597
1268	1268	598
1269	1269	599
1270	1270	600
1271	1271	601
1272	1272	602
1273	1273	603
1274	1274	604
1275	1275	605
1276	1276	606
1277	1277	607
1278	1278	608
1279	1279	609
1280	1280	610
1281	1281	611
1282	1282	612
1283	1283	613
1284	1284	614
1285	1285	615
1286	1286	616 SB237 INTRODUCED
1287	1287	Page 23
1288	1288	gratis.
1289	1289	(6) ELECTRONIC NICOTINE DELIVERY SYSTEM. Any electronic
1290	1290	device that uses a battery and heating element in combination
1291	1291	with an e-liquid or tobacco to produce a vapor that delivers
1292	1292	nicotine to the individual inhaling from the device to
1293	1293	simulate smoking, and includes, but is not limited to,
1294	1294	products that may be offered to, purchased by, or marketed to
1295	1295	consumers as an electronic cigarette, electronic cigar,
1296	1296	electronic cigarillo, electronic pipe, electronic hookah, vape
1297	1297	pen, vape tool, vaping device, or any variation of these
1298	1298	terms. The term also includes any e-liquid intended to be
1299	1299	vaporized in any device included in this subdivision.
1300	1300	(7) ELECTRONIC NICOTINE DELIVERY SYSTEM RETAILER. Any
1301	1301	retail business which offers for sale electronic nicotine
1302	1302	delivery systems.
1303	1303	(8) E-LIQUID. A liquid that contains nicotine and may
1304	1304	include flavorings or other ingredients that are intended for
1305	1305	use in an electronic nicotine delivery system.
1306	1306	(9) E-LIQUID MANUFACTURER. Any person who manufactures,
1307	1307	fabricates, assembles, processes, mixes, prepares, labels,
1308	1308	repacks, or relabels an e-liquid to be sealed in final
1309	1309	packaging intended for consumer use. This term includes an
1310	1310	owner of a brand or formula for an e-liquid who contracts with
1311	1311	another person to complete the fabrication and assembly of the
1312	1312	product to the brand or formula owner's standards.
1313	1313	(10) FDA. The United States Food and Drug
1314	1314	Administration.
1315	1315	(11) LIQUID NICOTINE CONTAINER. A bottle or other
1316	1316	container of a liquid product that is intended to be vaporized
1317	1317	617
1318	1318	618
1319	1319	619
1320	1320	620
1321	1321	621
1322	1322	622
1323	1323	623
1324	1324	624
1325	1325	625
1326	1326	626
1327	1327	627
1328	1328	628
1329	1329	629
1330	1330	630
1331	1331	631
1332	1332	632
1333	1333	633
1334	1334	634
1335	1335	635
1336	1336	636
1337	1337	637
1338	1338	638
1339	1339	639
1340	1340	640
1341	1341	641
1342	1342	642
1343	1343	643
1344	1344	644 SB237 INTRODUCED
1345	1345	Page 24
1346	1346	container of a liquid product that is intended to be vaporized
1347	1347	and inhaled using an electronic nicotine delivery system. The
1348	1348	term does not include a container holding liquid that is
1349	1349	intended for use in a vapor product if the container is
1350	1350	pre-filled and sealed by the manufacturer and is not intended
1351	1351	to be opened by the consumer.
1352	1352	(12) MINOR. Any individual under the age of 19 years of
1353	1353	age.
1354	1354	(13) PERSON. Any natural person, firm, partnership,
1355	1355	association, company, corporation, or other entity. Person
1356	1356	does not include a manufacturer or wholesaler of tobacco or
1357	1357	tobacco products nor does it include employees of the permit
1358	1358	holder.
1359	1359	(14) PROOF OF IDENTIFICATION. Any one or more of the
1360	1360	following documents used for purposes of determining the age
1361	1361	of an individual purchasing, attempting to purchase, or
1362	1362	receiving tobacco, tobacco products, electronic nicotine
1363	1363	delivery systems, or alternative nicotine products:
1364	1364	a. A valid driver's driver license issued by any state
1365	1365	and bearing the photograph of the presenting individual.
1366	1366	b. United States Uniform Service Identification.
1367	1367	c. A valid passport.
1368	1368	d. A valid identification card issued by any state
1369	1369	agency for the purpose of identification and bearing the
1370	1370	photograph and date of birth of the presenting individual.
1371	1371	e. For legal mail order purposes only, a valid signed
1372	1372	certification that will verify the individual is 21 years of
1373	1373	age or older.
1374	1374	(15) PSYCHOACTIVE CANNABINOIDS. Any cannabinoid derived
1375	1375	645
1376	1376	646
1377	1377	647
1378	1378	648
1379	1379	649
1380	1380	650
1381	1381	651
1382	1382	652
1383	1383	653
1384	1384	654
1385	1385	655
1386	1386	656
1387	1387	657
1388	1388	658
1389	1389	659
1390	1390	660
1391	1391	661
1392	1392	662
1393	1393	663
1394	1394	664
1395	1395	665
1396	1396	666
1397	1397	667
1398	1398	668
1399	1399	669
1400	1400	670
1401	1401	671
1402	1402	672 SB237 INTRODUCED
1403	1403	Page 25
1404	1404	(15) PSYCHOACTIVE CANNABINOIDS. Any cannabinoid derived
1405	1405	from or found in hemp as defined in Section 2-8-381,
1406	1406	including, but not limited to, cannabidiol (CBD),
1407	1407	delta-8-tetrahydrocannabinol (delta-8 THC),
1408	1408	delta-9-tetrahydrocannabinol (delta-9 THC), and
1409	1409	delta-10-tetrahydrocannabinol (delta-10 THC).
1410	1410	(16) PSYCHOACTIVE HEMP PRODUCT. a. Any of the
1411	1411	following:
1412	1412	1. A liquid that contains psychoactive cannabinoids and
1413	1413	may include flavorings or other ingredients that are intended
1414	1414	for use in an electronic nicotine delivery system or any other
1415	1415	product marketed to consumers as an electronic cigarette,
1416	1416	electronic cigarillo, electronic pipe, electronic hookah, vape
1417	1417	pen, vape tool, vaping device, or any variation of these
1418	1418	terms.
1419	1419	2. A candy, gummy, capsule, or other product that
1420	1420	contains psychoactive cannabinoids and is intended to be
1421	1421	ingested into the body.
1422	1422	3. An oil or tincture that contains psychoactive
1423	1423	cannabinoids and is marketed to deliver to the body
1424	1424	sublingually psychoactive cannabinoids.
1425	1425	b. The term excludes all of the following:
1426	1426	1. Hemp beverages regulated pursuant to Chapter 12.
1427	1427	2. Medical cannabis regulated pursuant to Chapter 2A of
1428	1428	Title 20.
1429	1429	3. Smokable hemp products prohibited pursuant to
1430	1430	Section 13A-12-214.4. and 13A-12-214.5.
1431	1431	(17) PSYCHOACTIVE HEMP PRODUCT PERMIT or PHP PERMIT. A
1432	1432	permit issued by the board to allow the permit holder to
1433	1433	673
1434	1434	674
1435	1435	675
1436	1436	676
1437	1437	677
1438	1438	678
1439	1439	679
1440	1440	680
1441	1441	681
1442	1442	682
1443	1443	683
1444	1444	684
1445	1445	685
1446	1446	686
1447	1447	687
1448	1448	688
1449	1449	689
1450	1450	690
1451	1451	691
1452	1452	692
1453	1453	693
1454	1454	694
1455	1455	695
1456	1456	696
1457	1457	697
1458	1458	698
1459	1459	699
1460	1460	700 SB237 INTRODUCED
1461	1461	Page 26
1462	1462	permit issued by the board to allow the permit holder to
1463	1463	engage in distribution and retail sale of psychoactive hemp
1464	1464	products at the location identified in the permit.
1465	1465	(15)(18) RESPONSIBLE VENDOR PROGRAM. A program
1466	1466	administered by the board to encourage and support vendors in
1467	1467	training employees in legal and responsible sales practices.
1468	1468	(16)(19) SAMPLER. Any business or person who
1469	1469	distributes tobacco or tobacco products for promotional
1470	1470	purposes.
1471	1471	(17)(20) SELF-SERVICE DISPLAY. A display that contains
1472	1472	tobacco or tobacco products and is located in an area openly
1473	1473	accessible to purchasers at retail and from which the
1474	1474	purchasers can readily access tobacco or tobacco products
1475	1475	without the assistance of the tobacco permit holder or an
1476	1476	employee of the permit holder. A display case that holds
1477	1477	tobacco or tobacco products behind locked doors does not
1478	1478	constitute a self-service display.
1479	1479	(18)(21) SPECIALTY RETAILER OF ELECTRONIC NICOTINE
1480	1480	DELIVERY SYSTEMS. A business establishment at which any of the
1481	1481	following are true:
1482	1482	a. The sale of electronic nicotine delivery systems
1483	1483	accounts for more than 35 percent of the total quarterly gross
1484	1484	receipts for the establishment.
1485	1485	b. Twenty percent or more of the public retail floor
1486	1486	space is allocated for the offering, displaying, or storage of
1487	1487	electronic nicotine delivery systems.
1488	1488	c. Twenty percent or more of the total shelf space,
1489	1489	including retail floor shelf space and shelf space in areas
1490	1490	accessible only to employees, is allocated for the offering,
1491	1491	701
1492	1492	702
1493	1493	703
1494	1494	704
1495	1495	705
1496	1496	706
1497	1497	707
1498	1498	708
1499	1499	709
1500	1500	710
1501	1501	711
1502	1502	712
1503	1503	713
1504	1504	714
1505	1505	715
1506	1506	716
1507	1507	717
1508	1508	718
1509	1509	719
1510	1510	720
1511	1511	721
1512	1512	722
1513	1513	723
1514	1514	724
1515	1515	725
1516	1516	726
1517	1517	727
1518	1518	728 SB237 INTRODUCED
1519	1519	Page 27
1520	1520	accessible only to employees, is allocated for the offering,
1521	1521	displaying, or storage of electronic nicotine delivery
1522	1522	systems.
1523	1523	d. The retail space features a self-service display for
1524	1524	electronic nicotine delivery systems.
1525	1525	e. Samples of electronic nicotine delivery systems are
1526	1526	offered to customers.
1527	1527	f. Liquids intended to be vaporized through the use of
1528	1528	an electronic nicotine delivery system are produced at the
1529	1529	facility or are produced by the owner of the establishment or
1530	1530	any of its agents or employees for sale at the establishment.
1531	1531	(19)(22) TOBACCO or TOBACCO PRODUCT. Any product made
1532	1532	or derived from tobacco that is intended for human
1533	1533	consumption, including any component, part, or accessory of a
1534	1534	tobacco product, except for raw materials other than tobacco
1535	1535	used in manufacturing a component, part, or accessory of a
1536	1536	tobacco product, but does not include an article that is a
1537	1537	drug under Section 201(g)(1) of the Federal Food, Drug, and
1538	1538	Cosmetic Act, a device under Section 201(h) of the Federal
1539	1539	Food, Drug, and Cosmetic Act, or a combination product
1540	1540	described in Section 503(g) of the Federal Food, Drug, and
1541	1541	Cosmetic Act.
1542	1542	(20)(23) TOBACCO PERMIT. A permit issued by the board
1543	1543	to allow the permit holder to engage in the distribution of
1544	1544	tobacco, tobacco products, electronic nicotine delivery
1545	1545	systems, or alternative nicotine products at the location
1546	1546	identified in the permit.
1547	1547	(21)(24) TOBACCO SPECIALTY STORE. A business that
1548	1548	derives at least 75 percent of its revenue from tobacco or
1549	1549	729
1550	1550	730
1551	1551	731
1552	1552	732
1553	1553	733
1554	1554	734
1555	1555	735
1556	1556	736
1557	1557	737
1558	1558	738
1559	1559	739
1560	1560	740
1561	1561	741
1562	1562	742
1563	1563	743
1564	1564	744
1565	1565	745
1566	1566	746
1567	1567	747
1568	1568	748
1569	1569	749
1570	1570	750
1571	1571	751
1572	1572	752
1573	1573	753
1574	1574	754
1575	1575	755
1576	1576	756 SB237 INTRODUCED
1577	1577	Page 28
1578	1578	derives at least 75 percent of its revenue from tobacco or
1579	1579	tobacco products."
1580	1580	"§28-11-3
1581	1581	The board, in conjunction with federal, state, and
1582	1582	local law enforcement agencies, shall enforce state and
1583	1583	federal laws that prohibit relating to the distribution and
1584	1584	retail sales of tobacco, tobacco products, psychoactive hemp
1585	1585	products, alternative nicotine products, and electronic
1586	1586	nicotine delivery systems to individuals under the age of 21
1587	1587	years. Notwithstanding the foregoing, for purposes of
1588	1588	inspections and enforcement actions undertaken pursuant to
1589	1589	this section, individuals under the age of 21 years of age may
1590	1590	be enlisted to attempt to purchase or purchase tobacco,
1591	1591	tobacco products, psychoactive hemp products, alternative
1592	1592	nicotine products, and electronic nicotine delivery systems,
1593	1593	provided that individuals under the age of 18 years of age
1594	1594	shall have the prior written consent of a parent or legal
1595	1595	guardian, and provided further that the individuals shall be
1596	1596	directly supervised during the conduct of each inspection or
1597	1597	enforcement action by an enforcement agent of the board or a
1598	1598	law enforcement officer. , or by a sheriff or head of police of
1599	1599	any county, city, town, or other political subdivision, or by
1600	1600	a deputy or officer thereof. No individual under the age of 21
1601	1601	years may misrepresent his or her age for the purpose of
1602	1602	purchasing or attempting to purchase tobacco, tobacco
1603	1603	products, alternative nicotine products, or electronic
1604	1604	nicotine delivery systems. If questioned about his or her age
1605	1605	during an attempt to purchase or receive tobacco, tobacco
1606	1606	products, alternative nicotine products, or electronic
1607	1607	757
1608	1608	758
1609	1609	759
1610	1610	760
1611	1611	761
1612	1612	762
1613	1613	763
1614	1614	764
1615	1615	765
1616	1616	766
1617	1617	767
1618	1618	768
1619	1619	769
1620	1620	770
1621	1621	771
1622	1622	772
1623	1623	773
1624	1624	774
1625	1625	775
1626	1626	776
1627	1627	777
1628	1628	778
1629	1629	779
1630	1630	780
1631	1631	781
1632	1632	782
1633	1633	783
1634	1634	784 SB237 INTRODUCED
1635	1635	Page 29
1636	1636	products, alternative nicotine products, or electronic
1637	1637	nicotine delivery systems, an individual under the age of 21
1638	1638	years shall state his or her true age. A photograph or video
1639	1639	recording of any individual under the age of 21 years
1640	1640	assisting in an inspection or enforcement action shall be
1641	1641	taken prior to the investigation. The appearance of an
1642	1642	individual under the age of 21 years participating in an
1643	1643	inspection or enforcement action shall not be altered at the
1644	1644	time of the inspection. "
1645	1645	"§28-11-4
1646	1646	Pursuant to its rulemaking authority, the board shall
1647	1647	adopt rules that have the full force and effect of law, for
1648	1648	purposes of the following:
1649	1649	(1) Establishing permits for the distribution of
1650	1650	tobacco, tobacco products, electronic nicotine delivery
1651	1651	systems, and alternative nicotine products.
1652	1652	(2) Establishing permits for the distribution of
1653	1653	psychoactive hemp products as provided in Section 28-11-7.1.
1654	1654	(2)(3) Preventing the distribution of tobacco, tobacco
1655	1655	products, psychoactive hemp products, electronic nicotine
1656	1656	delivery systems, and alternative nicotine products to
1657	1657	individuals under the age of 21 years of age.
1658	1658	(3)(4) Conducting annual random compliance tests to
1659	1659	assure compliance with applicable state and federal laws and
1660	1660	guidelines regarding the distribution of tobacco, tobacco
1661	1661	products, psychoactive hemp products, electronic nicotine
1662	1662	delivery systems, and alternative nicotine products. The tests
1663	1663	involving any person or location engaged in the distribution
1664	1664	of tobacco may utilize use individuals under the age of 21
1665	1665	785
1666	1666	786
1667	1667	787
1668	1668	788
1669	1669	789
1670	1670	790
1671	1671	791
1672	1672	792
1673	1673	793
1674	1674	794
1675	1675	795
1676	1676	796
1677	1677	797
1678	1678	798
1679	1679	799
1680	1680	800
1681	1681	801
1682	1682	802
1683	1683	803
1684	1684	804
1685	1685	805
1686	1686	806
1687	1687	807
1688	1688	808
1689	1689	809
1690	1690	810
1691	1691	811
1692	1692	812 SB237 INTRODUCED
1693	1693	Page 30
1694	1694	of tobacco may utilize use individuals under the age of 21
1695	1695	years of age."
1696	1696	"§28-11-5
1697	1697	The board may use funding, if available, from the
1698	1698	Department of Mental Health, other state or federal agencies,
1699	1699	grants, and private or public organizations to enforce this
1700	1700	chapter and to provide and distribute tobacco , psychoactive
1701	1701	hemp products, and nicotine prevention materials to retail
1702	1702	tobacco merchants and specialty retailers of electronic
1703	1703	nicotine delivery systems. The materials shall provide
1704	1704	information regarding state and federal laws that prohibit
1705	1705	access to tobacco, tobacco products, psychoactive hemp
1706	1706	products, alternative nicotine products, and electronic
1707	1707	nicotine delivery systems by individuals under the age of 21
1708	1708	years of age and other appropriate information. The board may
1709	1709	also provide consultation services for establishing programs
1710	1710	to minimize or eliminate sales of tobacco, tobacco products,
1711	1711	psychoactive hemp products, alternative nicotine products, and
1712	1712	electronic nicotine delivery systems to individuals under the
1713	1713	age of 21 years of age pursuant to the responsible vendor
1714	1714	program."
1715	1715	"§28-11-6.2
1716	1716	(a) No tobacco, tobacco product, alternative nicotine
1717	1717	product, or electronic nicotine delivery system shall be
1718	1718	distributed at retail through a self-service display unless
1719	1719	the display is a vending machine as permitted under Section
1720	1720	28-11-6.1 or is located in a tobacco specialty store or at a
1721	1721	specialty retailer of electronic nicotine delivery systems and
1722	1722	is located in an area in which individuals under 21 years of
1723	1723	813
1724	1724	814
1725	1725	815
1726	1726	816
1727	1727	817
1728	1728	818
1729	1729	819
1730	1730	820
1731	1731	821
1732	1732	822
1733	1733	823
1734	1734	824
1735	1735	825
1736	1736	826
1737	1737	827
1738	1738	828
1739	1739	829
1740	1740	830
1741	1741	831
1742	1742	832
1743	1743	833
1744	1744	834
1745	1745	835
1746	1746	836
1747	1747	837
1748	1748	838
1749	1749	839
1750	1750	840 SB237 INTRODUCED
1751	1751	Page 31
1752	1752	is located in an area in which individuals under 21 years of
1753	1753	age are not permitted access.
1754	1754	(b) A psychoactive hemp product may only be distributed
1755	1755	at retail through a self-service display if the display is
1756	1756	located in a specialty retailer of electronic nicotine
1757	1757	delivery systems and the product is located in an area in
1758	1758	which individuals under 21 years of age are not permitted
1759	1759	access.
1760	1760	(c) A violation of this section shall be subject to the
1761	1761	penalties provided in Section 28-11-9 ."
1762	1762	"§28-11-8
1763	1763	(a)(1) It shall be unlawful for any person to sell or
1764	1764	offer for sale tobacco ,or tobacco products , psychoactive hemp
1765	1765	products, alternative nicotine products, or electronic
1766	1766	nicotine delivery systems without first obtaining the
1767	1767	appropriate permit from the board.
1768	1768	(2) Selling or offering for sale tobacco ,or tobacco
1769	1769	products, alternative nicotine products, or electronic
1770	1770	nicotine delivery systems without obtaining and displaying a
1771	1771	valid permit by January 1, 1998, shall result in issuance of a
1772	1772	warning citation.
1773	1773	(3) Selling or offering for sale any psychoactive hemp
1774	1774	product without obtaining a valid PHP permit from the board
1775	1775	shall be subject to the violations in Section 5 of this act.
1776	1776	(b) The board shall conduct an information and
1777	1777	education campaign by its Responsible Vendor Program to inform
1778	1778	distributors of tobacco products , psychoactive hemp products,
1779	1779	alternative nicotine products, or electronic nicotine delivery
1780	1780	systems at retail or in vending machines or self-service
1781	1781	841
1782	1782	842
1783	1783	843
1784	1784	844
1785	1785	845
1786	1786	846
1787	1787	847
1788	1788	848
1789	1789	849
1790	1790	850
1791	1791	851
1792	1792	852
1793	1793	853
1794	1794	854
1795	1795	855
1796	1796	856
1797	1797	857
1798	1798	858
1799	1799	859
1800	1800	860
1801	1801	861
1802	1802	862
1803	1803	863
1804	1804	864
1805	1805	865
1806	1806	866
1807	1807	867
1808	1808	868 SB237 INTRODUCED
1809	1809	Page 32
1810	1810	systems at retail or in vending machines or self-service
1811	1811	displays of the requirements of this law. Failure to obtain or
1812	1812	display a valid permit pursuant to this chapter after January
1813	1813	1, 1998, shall constitute a misdemeanor offense.
1814	1814	(b) It shall be unlawful for any person to sell or
1815	1815	offer for sale electronic nicotine delivery systems or
1816	1816	alternative nicotine products without first obtaining the
1817	1817	appropriate permit from the board. Failure to obtain or
1818	1818	display a valid permit by October 30, 2019, shall result in
1819	1819	issuance of a warning citation. The board shall conduct an
1820	1820	information and education campaign by its Responsible Vendor
1821	1821	Program to inform distributors of alternative nicotine
1822	1822	products at retail or in vending machines or self-service
1823	1823	displays of the requirements of this law. Selling or offering
1824	1824	for sale electronic nicotine delivery systems or alternative
1825	1825	nicotine products without obtaining and displaying a valid
1826	1826	permit issued pursuant to this chapter by October 30, 2019,
1827	1827	shall be a Class C misdemeanor.
1828	1828	(c) Each violation for selling tobacco, tobacco
1829	1829	products, psychoactive hemp products, electronic nicotine
1830	1830	delivery systems, or alternative nicotine products without a
1831	1831	valid permit shall be treated as a separate offense and be
1832	1832	punishable as follows: For the first violation by a fine of
1833	1833	not less than one hundred dollars ($100) nor more than five
1834	1834	hundred dollars ($500) and for each subsequent violation by a
1835	1835	fine of not less than five hundred dollars ($500) nor more
1836	1836	than one thousand five hundred dollars ($1,500)."
1837	1837	"§28-11-9
1838	1838	(a) Subject to the Alabama Administrative Procedure
1839	1839	869
1840	1840	870
1841	1841	871
1842	1842	872
1843	1843	873
1844	1844	874
1845	1845	875
1846	1846	876
1847	1847	877
1848	1848	878
1849	1849	879
1850	1850	880
1851	1851	881
1852	1852	882
1853	1853	883
1854	1854	884
1855	1855	885
1856	1856	886
1857	1857	887
1858	1858	888
1859	1859	889
1860	1860	890
1861	1861	891
1862	1862	892
1863	1863	893
1864	1864	894
1865	1865	895
1866	1866	896 SB237 INTRODUCED
1867	1867	Page 33
1868	1868	(a) Subject to the Alabama Administrative Procedure
1869	1869	Act, Chapter 22 of Title 41, the board shall have full and
1870	1870	final authority as to the suspension or revocation for cause
1871	1871	of any permit issued pursuant to this chapter.
1872	1872	(b)(1) The board may appoint a hearing commission of at
1873	1873	least three persons which may do all of the following:
1874	1874	a. Hear and decide all contested applications for
1875	1875	permits.
1876	1876	b. Hear and decide all charges against any permit
1877	1877	holder or employee of a permit holder for violations of this
1878	1878	chapter, the law, or the rules of the board.
1879	1879	c. Revoke or suspend permits as provided in this
1880	1880	chapter.
1881	1881	d. Levy administrative fines upon permit holders or
1882	1882	employees of permit holders.
1883	1883	(2) No member of the hearing commission shall
1884	1884	participate in the hearing or disposition of any application
1885	1885	for a permit or charge against a permit holder or an employee
1886	1886	of a permit holder if he or she has an interest therein or was
1887	1887	involved in the investigation.
1888	1888	(b)(c) The board, or a hearing commission appointed by
1889	1889	the board, upon finding that a permit holder or any partner,
1890	1890	member, employee, officer, or director of the permit holder
1891	1891	has violated any of the laws of this state or the United
1892	1892	States relating to the manufacture, sale, possession, or
1893	1893	transportation of tobacco, tobacco products, psychoactive hemp
1894	1894	products, electronic nicotine delivery systems, or alternative
1895	1895	nicotine products, or that the permit holder has acted in a
1896	1896	manner prejudicial to the welfare, health, peace, temperance,
1897	1897	897
1898	1898	898
1899	1899	899
1900	1900	900
1901	1901	901
1902	1902	902
1903	1903	903
1904	1904	904
1905	1905	905
1906	1906	906
1907	1907	907
1908	1908	908
1909	1909	909
1910	1910	910
1911	1911	911
1912	1912	912
1913	1913	913
1914	1914	914
1915	1915	915
1916	1916	916
1917	1917	917
1918	1918	918
1919	1919	919
1920	1920	920
1921	1921	921
1922	1922	922
1923	1923	923
1924	1924	924 SB237 INTRODUCED
1925	1925	Page 34
1926	1926	manner prejudicial to the welfare, health, peace, temperance,
1927	1927	and safety of the people of the community or of the state, may
1928	1928	upon due notice and hearing, shall levy administrative fines
1929	1929	or suspend or revoke the permit issued by the board, or a
1930	1930	combination of all three. In all cases where the board or
1931	1931	hearing commission shall levy levies an administrative fine or
1932	1932	suspend or revoke suspends or revokes a permit, it shall set
1933	1933	forth its findings of fact, the evidence from which the
1934	1934	findings of facts are made, and the reasons upon which its
1935	1935	actions are based.
1936	1936	(c)(d) The fines as specified in subsection (e)(f)
1937	1937	shall be applicable per each violation. The permit holder or
1938	1938	employee shall remit the administrative fine to the board
1939	1939	within seven calendar days from the day that the
1940	1940	administrative fine is levied. Failure by the permit holder to
1941	1941	pay the administrative fine within that time period shall
1942	1942	result in an automatic suspension of the permit until the
1943	1943	administrative fine is paid.
1944	1944	(d)(e)(1) The maximum length of suspension of a permit
1945	1945	pursuant to this chapter shall be one year. A permit holder
1946	1946	shall be ineligible to hold a permit pursuant to this chapter
1947	1947	for the location where the violation occurred until the
1948	1948	expiration or removal of the suspension.
1949	1949	(2) A permit holder whose permit is revoked by the
1950	1950	board or the hearing commission shall be, at the discretion of
1951	1951	the board or hearing commission, shall be ineligible to hold a
1952	1952	permit pursuant to this chapter until the expiration of one
1953	1953	year from the date the permit is revoked at the location where
1954	1954	the violation occurred.
1955	1955	925
1956	1956	926
1957	1957	927
1958	1958	928
1959	1959	929
1960	1960	930
1961	1961	931
1962	1962	932
1963	1963	933
1964	1964	934
1965	1965	935
1966	1966	936
1967	1967	937
1968	1968	938
1969	1969	939
1970	1970	940
1971	1971	941
1972	1972	942
1973	1973	943
1974	1974	944
1975	1975	945
1976	1976	946
1977	1977	947
1978	1978	948
1979	1979	949
1980	1980	950
1981	1981	951
1982	1982	952 SB237 INTRODUCED
1983	1983	Page 35
1984	1984	the violation occurred.
1985	1985	(e)(f)The Except as otherwise provided in this
1986	1986	chapter, the following administrative fines may penalties
1987	1987	shall be levied for violations of this chapter against valid
1988	1988	permit holders or employees, or both :
1989	1989	(1) Upon conviction for a first violation by the permit
1990	1990	holder or an employee of the permit holder, the board or
1991	1991	hearing commission may offer the permit holder an opportunity
1992	1992	to provide training sessions administered by the Responsible
1993	1993	Vendor Program in lieu of an administrative fine upon the
1994	1994	permit holder and the employee, if the violation is by an
1995	1995	employee, of not more than two hundred dollars ($200).
1996	1996	(2) Upon conviction of a second violation at the same
1997	1997	location within a two-year period, the board or hearing
1998	1998	commission may levy an administrative fine upon the permit
1999	1999	holder and the employee, if the violation is by an employee,
2000	2000	of not more than four hundred dollars ($400).
2001	2001	(3) Upon conviction of a third or subsequent violation
2002	2002	at the same location within a two-year period, the board or
2003	2003	hearing commission may levy an administrative fine upon the
2004	2004	permit holder and the employee, if the violation is by an
2005	2005	employee, of not more than seven hundred fifty dollars ($750).
2006	2006	(4) Upon conviction of a fourth or subsequent violation
2007	2007	at the same location within a two-year period, the board or
2008	2008	hearing commission may levy an administrative fine upon the
2009	2009	permit holder and the employee, if the violation is by an
2010	2010	employee, of not more than one thousand dollars ($1,000) and
2011	2011	may suspend or revoke the permit.
2012	2012	(f)(g) Before imposition of any administrative fine,
2013	2013	953
2014	2014	954
2015	2015	955
2016	2016	956
2017	2017	957
2018	2018	958
2019	2019	959
2020	2020	960
2021	2021	961
2022	2022	962
2023	2023	963
2024	2024	964
2025	2025	965
2026	2026	966
2027	2027	967
2028	2028	968
2029	2029	969
2030	2030	970
2031	2031	971
2032	2032	972
2033	2033	973
2034	2034	974
2035	2035	975
2036	2036	976
2037	2037	977
2038	2038	978
2039	2039	979
2040	2040	980 SB237 INTRODUCED
2041	2041	Page 36
2042	2042	(f)(g) Before imposition of any administrative fine,
2043	2043	the permit holder shall be afforded all procedural rights to
2044	2044	due process in addition to those rights guaranteed by the
2045	2045	Alabama Administrative Procedure Act, Chapter 22 of Title 41."
2046	2046	"§28-11-13
2047	2047	(a)(1) It is unlawful for any individual under 21 years
2048	2048	of age to purchase, use, possess, or transport tobacco, a
2049	2049	tobacco product, a psychoactive hemp product, an electronic
2050	2050	nicotine delivery system , or other electronic battery-powered
2051	2051	device capable of being used to deliver any e-liquid, e-liquid
2052	2052	substitute, tobacco, CBD oil, THC oil, herbal extract, or
2053	2053	nicotine salt, or any analog thereof, or any other substance
2054	2054	to the individual through the inhalation of vapor, or an
2055	2055	alternative nicotine product within this state.
2056	2056	(2) For purposes of this subsection, a violation is
2057	2057	committed upon mere possession of an electronic nicotine
2058	2058	delivery system or other electronic battery-powered device as
2059	2059	described in subdivision (1), irrespective of which particular
2060	2060	e-liquid or other substance, if any, was contained or
2061	2061	otherwise used in the device.
2062	2062	(b) It shall not be unlawful for an individual under 21
2063	2063	years of age who is an employee of a tobacco, tobacco product,
2064	2064	psychoactive hemp product, electronic nicotine delivery
2065	2065	system, or alternative nicotine product permit holder to
2066	2066	handle, transport, or sell tobacco, a tobacco product, a
2067	2067	psychoactive hemp product, an electronic nicotine delivery
2068	2068	system, or an alternative tobacco product if the employee is
2069	2069	acting within the line and scope of employment and the permit
2070	2070	holder, or an employee of the permit holder who is 21 years of
2071	2071	981
2072	2072	982
2073	2073	983
2074	2074	984
2075	2075	985
2076	2076	986
2077	2077	987
2078	2078	988
2079	2079	989
2080	2080	990
2081	2081	991
2082	2082	992
2083	2083	993
2084	2084	994
2085	2085	995
2086	2086	996
2087	2087	997
2088	2088	998
2089	2089	999
2090	2090	1000
2091	2091	1001
2092	2092	1002
2093	2093	1003
2094	2094	1004
2095	2095	1005
2096	2096	1006
2097	2097	1007
2098	2098	1008 SB237 INTRODUCED
2099	2099	Page 37
2100	2100	holder, or an employee of the permit holder who is 21 years of
2101	2101	age or older, is present.
2102	2102	(c) It is unlawful for any individual under 21 years of
2103	2103	age to present or offer to another person proof of
2104	2104	identification that is false, fraudulent, or not actually his
2105	2105	or her own proof of identification in order to buy, receive,
2106	2106	or otherwise obtain, or attempt to buy, receive, or otherwise
2107	2107	obtain, any tobacco, tobacco product, psychoactive hemp
2108	2108	product, electronic nicotine delivery system, or alternative
2109	2109	nicotine product.
2110	2110	(d) If a minor is cited for any violation under this
2111	2111	section, the citing agency shall make reasonable efforts to
2112	2112	notify a parent, legal guardian, or legal custodian of the
2113	2113	minor unless the minor has been emancipated by court order or
2114	2114	operation of law.
2115	2115	(e) Nothing in this section shall apply to devices used
2116	2116	to deliver medication prescribed or ordered by a physician
2117	2117	licensed to practice medicine in this state."
2118	2118	"§28-11-15
2119	2119	(a) Any person who distributes sells at retail tobacco,
2120	2120	or tobacco products , psychoactive hemp products, electronic
2121	2121	nicotine delivery systems, or alternative nicotine products
2122	2122	within this state shall post conspicuously and keep so posted
2123	2123	at each location of distribution sale and vending machines a
2124	2124	sign that is placed in a way that it is likely to be read by
2125	2125	those seeking to purchase or obtain tobacco or tobacco any of
2126	2126	these products. Each sign shall state that:
2127	2127	(1) Alabama law strictly prohibits the purchase of
2128	2128	tobacco products and psychoactive hemp products by persons
2129	2129	1009
2130	2130	1010
2131	2131	1011
2132	2132	1012
2133	2133	1013
2134	2134	1014
2135	2135	1015
2136	2136	1016
2137	2137	1017
2138	2138	1018
2139	2139	1019
2140	2140	1020
2141	2141	1021
2142	2142	1022
2143	2143	1023
2144	2144	1024
2145	2145	1025
2146	2146	1026
2147	2147	1027
2148	2148	1028
2149	2149	1029
2150	2150	1030
2151	2151	1031
2152	2152	1032
2153	2153	1033
2154	2154	1034
2155	2155	1035
2156	2156	1036 SB237 INTRODUCED
2157	2157	Page 38
2158	2158	tobacco products and psychoactive hemp products by persons
2159	2159	under the age of 21 years of age.
2160	2160	(2) Proof of age is required for the purchase of
2161	2161	tobacco products and psychoactive hemp products .
2162	2162	(b) In addition to subsection (a), any retailer of
2163	2163	psychoactive hemp products shall display in a prominent area
2164	2164	of the retail store near the point of sale a sign that
2165	2165	contains the following statement:
2166	2166	"(1) Psychoactive hemp products do not claim to
2167	2167	diagnose, treat, cure, or prevent any disease and have not
2168	2168	been evaluated or approved by the U.S. Food and Drug
2169	2169	Administration.
2170	2170	(2) Consumption of this product impairs a person's
2171	2171	ability to drive and operate machinery.
2172	2172	(3) For persons who are pregnant, nursing, or taking
2173	2173	medication, consult your licensed healthcare professional
2174	2174	about safety before consuming this product." "
2175	2175	"§28-11-16
2176	2176	(a)(1) A retailer or manufacturer of psychoactive hemp
2177	2177	products, electronic nicotine delivery systems , or alternative
2178	2178	nicotine products may not advertise an electronic nicotine
2179	2179	delivery system or an alternative nicotine the product in any
2180	2180	of the following ways:
2181	2181	a. As a tobacco cessation product.
2182	2182	b. As a healthier alternative to smoking.
2183	2183	c. As available for purchase in any variety of flavors
2184	2184	other than tobacco, mint, or menthol on any outdoor billboard.
2185	2185	d. On any outdoor billboard located within 1,000 feet
2186	2186	of any public or private K-12 school or public playground.
2187	2187	1037
2188	2188	1038
2189	2189	1039
2190	2190	1040
2191	2191	1041
2192	2192	1042
2193	2193	1043
2194	2194	1044
2195	2195	1045
2196	2196	1046
2197	2197	1047
2198	2198	1048
2199	2199	1049
2200	2200	1050
2201	2201	1051
2202	2202	1052
2203	2203	1053
2204	2204	1054
2205	2205	1055
2206	2206	1056
2207	2207	1057
2208	2208	1058
2209	2209	1059
2210	2210	1060
2211	2211	1061
2212	2212	1062
2213	2213	1063
2214	2214	1064 SB237 INTRODUCED
2215	2215	Page 39
2216	2216	of any public or private K-12 school or public playground.
2217	2217	e. As a drug to treat, diagnose, or cure any medical
2218	2218	condition.
2219	2219	f. Using any medical-related imagery, including images
2220	2220	of doctors, nurses, syringes, or pills.
2221	2221	g. To individuals under 21 years of age.
2222	2222	h. On social media websites accessible to individuals
2223	2223	under 21 years of age.
2224	2224	i. Using unsubstantiated claims, exaggerated or false
2225	2225	promises about the product, or misrepresenting the effect of
2226	2226	the product on the consumer.
2227	2227	(2) Paragraphs (1)a. and (1)b. of subdivision (1) are
2228	2228	not applicable to products that have received an order from
2229	2229	the FDA permitting the product to be marketed as a modified
2230	2230	risk tobacco product, and are marketed in accordance with that
2231	2231	order.
2232	2232	(b)(1) A specialty retailer of electronic nicotine
2233	2233	delivery systems ,ora manufacturer of tobacco, tobacco
2234	2234	products, electronic nicotine delivery systems, or alternative
2235	2235	nicotine products ,or a retailer of psychoactive hemp products
2236	2236	may not in any way sponsor, finance, or advertise a
2237	2237	scholarship of any kind using the brand name of any tobacco
2238	2238	product, psychoactive hemp product, alternative nicotine
2239	2239	product, or electronic nicotine delivery system.
2240	2240	(2) A specialty retailer of electronic nicotine
2241	2241	delivery systems ,ora manufacturer of tobacco, tobacco
2242	2242	products, electronic nicotine delivery systems, or alternative
2243	2243	nicotine products , or a retailer of psychoactive hemp products
2244	2244	may not use the brand name of any tobacco product,
2245	2245	1065
2246	2246	1066
2247	2247	1067
2248	2248	1068
2249	2249	1069
2250	2250	1070
2251	2251	1071
2252	2252	1072
2253	2253	1073
2254	2254	1074
2255	2255	1075
2256	2256	1076
2257	2257	1077
2258	2258	1078
2259	2259	1079
2260	2260	1080
2261	2261	1081
2262	2262	1082
2263	2263	1083
2264	2264	1084
2265	2265	1085
2266	2266	1086
2267	2267	1087
2268	2268	1088
2269	2269	1089
2270	2270	1090
2271	2271	1091
2272	2272	1092 SB237 INTRODUCED
2273	2273	Page 40
2274	2274	may not use the brand name of any tobacco product,
2275	2275	psychoactive hemp product, alternative nicotine product, or
2276	2276	electronic nicotine delivery system to advertise at or sponsor
2277	2277	any stadium, concert, sporting event, or other public
2278	2278	performance event for which individuals aged 21 years of age
2279	2279	or older make up less than 85 percent of the total age
2280	2280	demographic of performing participants.
2281	2281	(3) A specialty retailer of electronic nicotine
2282	2282	delivery systems ,ora manufacturer of tobacco, tobacco
2283	2283	products, electronic nicotine delivery systems, or alternative
2284	2284	nicotine products , or a retailer of psychoactive hemp products
2285	2285	may not advertise a tobacco product, psychoactive hemp
2286	2286	product, electronic nicotine delivery system, or alternative
2287	2287	nicotine product in a newspaper, magazine, periodical, or
2288	2288	other print or digital publication distributed in this state
2289	2289	for which less than 85 percent of the viewership or readership
2290	2290	of the publication is made up of individuals 21 years of age
2291	2291	or older as measured by competent and reliable survey
2292	2292	evidence.
2293	2293	(c)(1) A violation of subsection (a) or subsection (b)
2294	2294	shall result in a one hundred dollar ($100) fine for the first
2295	2295	occurrence.
2296	2296	(2) A second or subsequent violation of subsection (a)
2297	2297	or subsection (b) shall result in a five hundred dollar ($500)
2298	2298	fine per occurrence.
2299	2299	(3) Each day a violation of subsection (a) or
2300	2300	subsection (b) persists shall constitute a separate and
2301	2301	subsequent violation.
2302	2302	(d) A retailer or manufacturer of tobacco, tobacco
2303	2303	1093
2304	2304	1094
2305	2305	1095
2306	2306	1096
2307	2307	1097
2308	2308	1098
2309	2309	1099
2310	2310	1100
2311	2311	1101
2312	2312	1102
2313	2313	1103
2314	2314	1104
2315	2315	1105
2316	2316	1106
2317	2317	1107
2318	2318	1108
2319	2319	1109
2320	2320	1110
2321	2321	1111
2322	2322	1112
2323	2323	1113
2324	2324	1114
2325	2325	1115
2326	2326	1116
2327	2327	1117
2328	2328	1118
2329	2329	1119
2330	2330	1120 SB237 INTRODUCED
2331	2331	Page 41
2332	2332	(d) A retailer or manufacturer of tobacco, tobacco
2333	2333	products, psychoactive hemp products, electronic nicotine
2334	2334	delivery systems, or alternative nicotine products may not
2335	2335	advertise, market, or offer for sale tobacco, a tobacco
2336	2336	product, a psychoactive hemp product, an electronic nicotine
2337	2337	delivery system, or an alternative nicotine product in any of
2338	2338	the following ways:
2339	2339	(1) By using, in the labeling or design of the product,
2340	2340	its packaging, or in its advertising or marketing materials,
2341	2341	the terms "candy" or "candies," any variant of these words, or
2342	2342	any other term referencing a type or brand of candy, including
2343	2343	types or brands of candy that do not include the words "candy"
2344	2344	or "candies" in their names or slogans.
2345	2345	(2) By using, in the labeling or design of the product,
2346	2346	its packaging, or in its advertising or marketing materials,
2347	2347	the terms "cake" or "cakes" or "cupcake" or "cupcakes" or
2348	2348	"pie" or "pies," any variant of these words, or any other term
2349	2349	referencing a type or brand of cake, pastry, or pie, including
2350	2350	types or brands of cakes, pastries, or pies that do not
2351	2351	include the words "cake" or "cakes" or "cupcake" or "cupcakes"
2352	2352	or "pie" or "pies" in their names or slogans.
2353	2353	(3) By using, in the labeling or design of the product,
2354	2354	its packaging, or in its advertising or marketing materials,
2355	2355	trade dress, trademarks, branding, or other related imagery
2356	2356	that imitates or replicates those of food brands or other
2357	2357	related products that are marketed to minors, including, but
2358	2358	not limited to, breakfast cereal, cookies, juice drinks, soft
2359	2359	drinks, frozen drinks, ice creams, sorbets, sherbets, and
2360	2360	frozen pops.
2361	2361	1121
2362	2362	1122
2363	2363	1123
2364	2364	1124
2365	2365	1125
2366	2366	1126
2367	2367	1127
2368	2368	1128
2369	2369	1129
2370	2370	1130
2371	2371	1131
2372	2372	1132
2373	2373	1133
2374	2374	1134
2375	2375	1135
2376	2376	1136
2377	2377	1137
2378	2378	1138
2379	2379	1139
2380	2380	1140
2381	2381	1141
2382	2382	1142
2383	2383	1143
2384	2384	1144
2385	2385	1145
2386	2386	1146
2387	2387	1147
2388	2388	1148 SB237 INTRODUCED
2389	2389	Page 42
2390	2390	frozen pops.
2391	2391	(4) By using, in the labeling or design of the product,
2392	2392	its packaging, or in its advertising or marketing materials,
2393	2393	trade dress, trademarks, branding, or other related imagery
2394	2394	that depicts or signifies characters or symbols that are known
2395	2395	to appeal primarily to minors, including, but not limited to,
2396	2396	superheroes, comic book characters, video game characters,
2397	2397	television show characters, movie characters, mythical
2398	2398	creatures, unicorns, or that otherwise incorporates related
2399	2399	imagery or scenery."
2400	2400	"§28-11-19
2401	2401	(a) Beginning January 1, 2020, a A county or
2402	2402	municipality may not issue a license to conduct business as a
2403	2403	specialty retailer of psychoactive hemp products or electronic
2404	2404	nicotine delivery systems if the retail business is located
2405	2405	within 1,000 feet of any of the following:
2406	2406	(1) A public or private K-12 school.
2407	2407	(2) A licensed child-care child care facility or
2408	2408	preschool.
2409	2409	(3) A church.
2410	2410	(4) A public library.
2411	2411	(5) A public playground.
2412	2412	(6) A public park.
2413	2413	(7) A youth center or other space used primarily for
2414	2414	youth-oriented activities.
2415	2415	(b) This section does not apply to a specialty retailer
2416	2416	of electronic nicotine delivery systems that obtained a
2417	2417	business license at a location prohibited in subsection (a)
2418	2418	prior to January 1, 2020, that has conducted business as a
2419	2419	1149
2420	2420	1150
2421	2421	1151
2422	2422	1152
2423	2423	1153
2424	2424	1154
2425	2425	1155
2426	2426	1156
2427	2427	1157
2428	2428	1158
2429	2429	1159
2430	2430	1160
2431	2431	1161
2432	2432	1162
2433	2433	1163
2434	2434	1164
2435	2435	1165
2436	2436	1166
2437	2437	1167
2438	2438	1168
2439	2439	1169
2440	2440	1170
2441	2441	1171
2442	2442	1172
2443	2443	1173
2444	2444	1174
2445	2445	1175
2446	2446	1176 SB237 INTRODUCED
2447	2447	Page 43
2448	2448	prior to January 1, 2020, that has conducted business as a
2449	2449	specialty retailer of electronic nicotine delivery systems at
2450	2450	that location for at least 18 consecutive months, and that
2451	2451	remains in the same location."
2452	2452	Section 3. Sections 28-11-1.1, 28-11-1.2, 28-11-7.1,
2453	2453	28-11-15.1, 28-11-16.1, 28-11-17.2, and 28-11-22 are added to
2454	2454	the Code of Alabama 1975, to read as follows:
2455	2455	§28-11-1.1
2456	2456	Nothing in this chapter shall prevent the governing
2457	2457	body of any county or municipality to ban or further regulate
2458	2458	where or when psychoactive hemp products may be sold within
2459	2459	the respective jurisdiction of the county or municipality.
2460	2460	§28-11-1.2
2461	2461	(a) The possession, sale, consumption, use, and
2462	2462	delivery of psychoactive hemp products within this state shall
2463	2463	be regulated and enforced by the board through the permitting
2464	2464	of distributors and retailers of psychoactive hemp products,
2465	2465	as provided in this chapter.
2466	2466	(b) The board may enter upon the premises of any holder
2467	2467	of a PHP permit to examine, or cause to be examined by any
2468	2468	agent or representative designated by the board for that
2469	2469	purpose, any books, papers, or other records and to secure
2470	2470	other information directly or indirectly relating to the
2471	2471	enforcement of this chapter.
2472	2472	(c) Any psychoactive hemp product found not complying
2473	2473	with this chapter shall be considered contraband and may be
2474	2474	seized by the board or its agents or by any law enforcement
2475	2475	officer of the State of Alabama without a warrant, and the
2476	2476	goods shall be delivered to, and disposed of by, the board.
2477	2477	1177
2478	2478	1178
2479	2479	1179
2480	2480	1180
2481	2481	1181
2482	2482	1182
2483	2483	1183
2484	2484	1184
2485	2485	1185
2486	2486	1186
2487	2487	1187
2488	2488	1188
2489	2489	1189
2490	2490	1190
2491	2491	1191
2492	2492	1192
2493	2493	1193
2494	2494	1194
2495	2495	1195
2496	2496	1196
2497	2497	1197
2498	2498	1198
2499	2499	1199
2500	2500	1200
2501	2501	1201
2502	2502	1202
2503	2503	1203
2504	2504	1204 SB237 INTRODUCED
2505	2505	Page 44
2506	2506	goods shall be delivered to, and disposed of by, the board.
2507	2507	(d) The board may revoke a PHP permit of any person
2508	2508	that purposefully falsifies any document or record required of
2509	2509	a PHP permit holder under this chapter.
2510	2510	(d) The board may adopt rules to administer this
2511	2511	chapter as it relates to psychoactive hemp products.
2512	2512	§28-11-7.1
2513	2513	(a) Any person who distributes or sells at retail
2514	2514	psychoactive hemp products within this state shall first
2515	2515	obtain a PHP permit from the board for each location of
2516	2516	distribution.
2517	2517	(b) Upon application, there shall be a one-time,
2518	2518	nonrefundable filing fee of one hundred dollars ($100), in
2519	2519	addition to a permit fee of five hundred dollars ($500), which
2520	2520	shall be renewed annually. A permit shall be valid only for
2521	2521	the location specified in the permit application.
2522	2522	(c) Fees collected under this section shall be
2523	2523	deposited in the State Treasury to the credit of the Alcoholic
2524	2524	Beverage Control Board to be used for operational costs of
2525	2525	enforcing this chapter and tobacco, nicotine, and psychoactive
2526	2526	hemp product prevention education.
2527	2527	(d) Any person who distributes or sells a psychoactive
2528	2528	hemp product without a permit shall be subject to Section 5.
2529	2529	§28-11-15.1
2530	2530	(a) Prior to initiating a sale of tobacco, tobacco
2531	2531	products, psychoactive hemp products, electronic nicotine
2532	2532	delivery systems, or alternative nicotine products to an
2533	2533	individual, an employee of the retailer must verify that the
2534	2534	individual is at least 21 years of age.
2535	2535	1205
2536	2536	1206
2537	2537	1207
2538	2538	1208
2539	2539	1209
2540	2540	1210
2541	2541	1211
2542	2542	1212
2543	2543	1213
2544	2544	1214
2545	2545	1215
2546	2546	1216
2547	2547	1217
2548	2548	1218
2549	2549	1219
2550	2550	1220
2551	2551	1221
2552	2552	1222
2553	2553	1223
2554	2554	1224
2555	2555	1225
2556	2556	1226
2557	2557	1227
2558	2558	1228
2559	2559	1229
2560	2560	1230
2561	2561	1231
2562	2562	1232 SB237 INTRODUCED
2563	2563	Page 45
2564	2564	individual is at least 21 years of age.
2565	2565	(b) Proof of age may be established only by one of the
2566	2566	following:
2567	2567	(1) A valid driver license of any state.
2568	2568	(2) A valid United States Uniformed Service
2569	2569	Identification.
2570	2570	(3) A valid passport.
2571	2571	(4) A valid identification issued by any agency of a
2572	2572	state for the purpose of identification, bearing a photograph
2573	2573	and date of birth of the individual in question.
2574	2574	(c) The board shall levy a civil penalty against any
2575	2575	retailer who sells tobacco, tobacco products, psychoactive
2576	2576	hemp products, electronic nicotine delivery systems, or
2577	2577	alternative nicotine products to an individual under 21 years
2578	2578	of age as follows:
2579	2579	(1) One thousand five hundred dollars ($1,500) for a
2580	2580	first offense.
2581	2581	(2) Two thousand five hundred dollars ($2,500) for a
2582	2582	second offense.
2583	2583	(3) Five thousand dollars ($5,000) for a third offense.
2584	2584	(4) Revocation of all licenses and permits issued by
2585	2585	the board to the retailer for a fourth offense. In addition,
2586	2586	the board shall not issue any license or permit under this
2587	2587	title until the expiration of one year from the date the
2588	2588	license or licenses are revoked at the location where the
2589	2589	violation occurred.
2590	2590	(d) In addition to the penalties described in
2591	2591	subsection (c), a retailer who violates this section shall
2592	2592	notify the person from whom the retailer purchased the product
2593	2593	1233
2594	2594	1234
2595	2595	1235
2596	2596	1236
2597	2597	1237
2598	2598	1238
2599	2599	1239
2600	2600	1240
2601	2601	1241
2602	2602	1242
2603	2603	1243
2604	2604	1244
2605	2605	1245
2606	2606	1246
2607	2607	1247
2608	2608	1248
2609	2609	1249
2610	2610	1250
2611	2611	1251
2612	2612	1252
2613	2613	1253
2614	2614	1254
2615	2615	1255
2616	2616	1256
2617	2617	1257
2618	2618	1258
2619	2619	1259
2620	2620	1260 SB237 INTRODUCED
2621	2621	Page 46
2622	2622	notify the person from whom the retailer purchased the product
2623	2623	of the violation. For a third or fourth offense, the person
2624	2624	shall be vicariously liable and subject to the same penalties
2625	2625	as the retailer.
2626	2626	§28-11-16.1
2627	2627	(a) Every container of psychoactive hemp products must
2628	2628	bear a label that contains, at a minimum:
2629	2629	(1) The name, location, contact phone number, and
2630	2630	website of the manufacturer of the product;
2631	2631	(2) The name and address of the independent, accredited
2632	2632	laboratory used by the manufacturer to test the product;
2633	2633	(3) The batch number;
2634	2634	(4) The total number of milligrams of psychoactive
2635	2635	cannabinoids found in the container;
2636	2636	(5) The serving size, provided one gummy may not
2637	2637	contain more than one serving;
2638	2638	(6) The total number of milligrams of psychoactive
2639	2639	cannabinoids per serving, provided one serving may not contain
2640	2640	more than 10 milligrams of total psychoactive cannabinoids;
2641	2641	(7) The International Intoxicating Cannabinoid Product
2642	2642	Symbol (IICPS);
2643	2643	(8) A list of ingredients, including identification of
2644	2644	any major food allergens declared by name;
2645	2645	(9) A statement that the psychoactive hemp product does
2646	2646	not claim to diagnose, treat, cure, or prevent any disease and
2647	2647	has not been evaluated or approved by the U.S. Food and Drug
2648	2648	Administration (FDA), unless the product has been so approved;
2649	2649	and
2650	2650	(10) The following warnings:
2651	2651	1261
2652	2652	1262
2653	2653	1263
2654	2654	1264
2655	2655	1265
2656	2656	1266
2657	2657	1267
2658	2658	1268
2659	2659	1269
2660	2660	1270
2661	2661	1271
2662	2662	1272
2663	2663	1273
2664	2664	1274
2665	2665	1275
2666	2666	1276
2667	2667	1277
2668	2668	1278
2669	2669	1279
2670	2670	1280
2671	2671	1281
2672	2672	1282
2673	2673	1283
2674	2674	1284
2675	2675	1285
2676	2676	1286
2677	2677	1287
2678	2678	1288 SB237 INTRODUCED
2679	2679	Page 47
2680	2680	(10) The following warnings:
2681	2681	a. To keep the product out of reach of children;
2682	2682	b. That consumption of the product impairs person's
2683	2683	ability to drive and operate machinery;
2684	2684	c. For persons who are pregnant, nursing, or taking
2685	2685	medications, to consult their licensed healthcare professional
2686	2686	about safety before consuming the product;
2687	2687	d. That the product is not intended for sale to or use
2688	2688	by persons under 21 years of age;
2689	2689	e. That the psychoactive cannabinoids in the product
2690	2690	are derived from hemp.
2691	2691	(b) Containers of psychoactive hemp products may not:
2692	2692	(1) Bear the likeness or contain cartoon-like
2693	2693	characteristics of a real or fictional person, animal, or
2694	2694	fruit that appeals to children;
2695	2695	(2) Be modeled after a brand of products primarily
2696	2696	consumed by or marketed to children;
2697	2697	(3) Contain an ingredient, other than a psychoactive
2698	2698	cannabinoid, that is not approved by the United States Food
2699	2699	and Drug Administration for use in the product;
2700	2700	(4) Include a statement, artwork, or design that could
2701	2701	reasonably mislead an individual to believe that the package
2702	2702	contains anything other than a psychoactive hemp product; or
2703	2703	(5) Contain caffeine; provided, however, psychoactive
2704	2704	hemp products may contain naturally occurring caffeine derived
2705	2705	from ingredients such as coffee, tea, or other natural
2706	2706	sources, so long as the caffeine does not exceed levels deemed
2707	2707	safe by generally accepted dietary guidelines.
2708	2708	(c) Any psychoactive hemp products found not complying
2709	2709	1289
2710	2710	1290
2711	2711	1291
2712	2712	1292
2713	2713	1293
2714	2714	1294
2715	2715	1295
2716	2716	1296
2717	2717	1297
2718	2718	1298
2719	2719	1299
2720	2720	1300
2721	2721	1301
2722	2722	1302
2723	2723	1303
2724	2724	1304
2725	2725	1305
2726	2726	1306
2727	2727	1307
2728	2728	1308
2729	2729	1309
2730	2730	1310
2731	2731	1311
2732	2732	1312
2733	2733	1313
2734	2734	1314
2735	2735	1315
2736	2736	1316 SB237 INTRODUCED
2737	2737	Page 48
2738	2738	(c) Any psychoactive hemp products found not complying
2739	2739	with this section shall be considered contraband and may be
2740	2740	seized by the board or its agents or by any law enforcement
2741	2741	officer of the State of Alabama without a warrant, and the
2742	2742	goods shall be delivered to, and disposed of by, the board.
2743	2743	§28-11-17.2
2744	2744	(a) Prior to making any sales within this state, the
2745	2745	PHP permit holder or the manufacturer of the psychoactive hemp
2746	2746	product shall submit representative samples of each batch of
2747	2747	the product to be sold within this state to an independent,
2748	2748	accredited laboratory for a certificate of analysis
2749	2749	certifying, at a minimum, that the product:
2750	2750	(1) Contains an amount of delta-8 tetrahydrocannabinol,
2751	2751	delta-9 tetrahydrocannabinol, delta-10 tetrahydrocannabinol,
2752	2752	or any other psychoactive cannabinoid not exceeding that which
2753	2753	is stated on the label of the product; and
2754	2754	(2) Does not contain more than trace amounts of any
2755	2755	mold, residual solvents or other catalysts, pesticides,
2756	2756	fertilizers, or heavy metals.
2757	2757	(b) A manufacturer must disclose all known information
2758	2758	regarding pesticides, fertilizers, solvents, or other foreign
2759	2759	materials applied to hemp or added to hemp during any
2760	2760	production or processing stages of any batch from which a
2761	2761	representative sample has been sent for testing, including any
2762	2762	catalysts used to create psychoactive cannabinoids. The
2763	2763	disclosure must be made to the laboratory performing testing
2764	2764	or sampling and, upon request, to the board. The disclosure
2765	2765	must include all information known to the manufacturer
2766	2766	regardless of whether the application or addition was made
2767	2767	1317
2768	2768	1318
2769	2769	1319
2770	2770	1320
2771	2771	1321
2772	2772	1322
2773	2773	1323
2774	2774	1324
2775	2775	1325
2776	2776	1326
2777	2777	1327
2778	2778	1328
2779	2779	1329
2780	2780	1330
2781	2781	1331
2782	2782	1332
2783	2783	1333
2784	2784	1334
2785	2785	1335
2786	2786	1336
2787	2787	1337
2788	2788	1338
2789	2789	1339
2790	2790	1340
2791	2791	1341
2792	2792	1342
2793	2793	1343
2794	2794	1344 SB237 INTRODUCED
2795	2795	Page 49
2796	2796	regardless of whether the application or addition was made
2797	2797	intentionally or accidentally, or by the manufacturer or any
2798	2798	other person.
2799	2799	§28-11-22
2800	2800	(a) An excise tax at the rate of 10 percent is levied
2801	2801	on the retail sales price of a psychoactive hemp product. The
2802	2802	tax is in addition to any other tax imposed by federal, state,
2803	2803	or local law.
2804	2804	(b) The tax levied by this section is intended to be
2805	2805	passed on to and borne by the purchaser of the psychoactive
2806	2806	hemp product. The tax is a debt from the purchaser to the
2807	2807	retailer until paid. The retailer is considered to act as a
2808	2808	trustee on behalf of the board when the retailer collects the
2809	2809	tax from the purchaser on a taxable transaction. The tax must
2810	2810	be stated and charged separately on any documentation provided
2811	2811	to the purchaser by the retailer at the time of the
2812	2812	transaction.
2813	2813	(c) The tax levied during the preceding month is due
2814	2814	and payable monthly to the board on the first day of each
2815	2815	month, and for the purpose of ascertaining the amount of tax
2816	2816	payable under this section, all retailers making taxable sales
2817	2817	on or before the twentieth day of each month shall transmit to
2818	2818	the board, upon forms prescribed by the board, returns showing
2819	2819	gross sales during the preceding month.
2820	2820	(d) The revenue generated from the tax shall be
2821	2821	distributed as follows:
2822	2822	(1) Forty percent to the State General Fund.
2823	2823	(2) Thirty-five percent shall be retained by the board
2824	2824	for regulatory and administrative purposes.
2825	2825	1345
2826	2826	1346
2827	2827	1347
2828	2828	1348
2829	2829	1349
2830	2830	1350
2831	2831	1351
2832	2832	1352
2833	2833	1353
2834	2834	1354
2835	2835	1355
2836	2836	1356
2837	2837	1357
2838	2838	1358
2839	2839	1359
2840	2840	1360
2841	2841	1361
2842	2842	1362
2843	2843	1363
2844	2844	1364
2845	2845	1365
2846	2846	1366
2847	2847	1367
2848	2848	1368
2849	2849	1369
2850	2850	1370
2851	2851	1371
2852	2852	1372 SB237 INTRODUCED
2853	2853	Page 50
2854	2854	for regulatory and administrative purposes.
2855	2855	(3) Fifteen percent divided equally between the board
2856	2856	and the Alabama State Law Enforcement Agency to be retained by
2857	2857	each for purposes of enforcement.
2858	2858	(4) Ten percent to the treasury of the municipality in
2859	2859	which the psychoactive hemp products were sold within its
2860	2860	corporate limits, or, where sold outside the corporate limits
2861	2861	of any municipality, to the treasury of the county in which
2862	2862	the psychoactive hemp products were sold for the purposes of
2863	2863	enforcement.
2864	2864	(e) The taxes levied pursuant to this section are
2865	2865	exclusive and shall be in lieu of all other and additional
2866	2866	taxes and licenses of the state, county, or municipality,
2867	2867	imposed on the sale of psychoactive hemp products; provided,
2868	2868	that nothing herein contained shall be construed to exempt the
2869	2869	retail sale of psychoactive hemp products from the levy of tax
2870	2870	on general retail sales by the state, county, or municipality
2871	2871	in the nature of, or in lieu of, a general sales tax.
2872	2872	Section 4. (a) It shall be unlawful for any person to
2873	2873	sell or offer for sale a psychoactive hemp product, as defined
2874	2874	in Section 28-11-2, Code of Alabama 1975, or a hemp beverage,
2875	2875	as defined in Section 28-12-3, Code of Alabama 1975, without
2876	2876	first obtaining the appropriate permit or license from the
2877	2877	Alcoholic Beverage Control Board.
2878	2878	(b) Any person who sells or offers for sale a
2879	2879	psychoactive hemp product or hemp beverage in violation of
2880	2880	this section shall be subject to the following violations:
2881	2881	(1) For a first offense, the board shall levy a civil
2882	2882	penalty of five thousand dollars ($5,000).
2883	2883	1373
2884	2884	1374
2885	2885	1375
2886	2886	1376
2887	2887	1377
2888	2888	1378
2889	2889	1379
2890	2890	1380
2891	2891	1381
2892	2892	1382
2893	2893	1383
2894	2894	1384
2895	2895	1385
2896	2896	1386
2897	2897	1387
2898	2898	1388
2899	2899	1389
2900	2900	1390
2901	2901	1391
2902	2902	1392
2903	2903	1393
2904	2904	1394
2905	2905	1395
2906	2906	1396
2907	2907	1397
2908	2908	1398
2909	2909	1399
2910	2910	1400 SB237 INTRODUCED
2911	2911	Page 51
2912	2912	penalty of five thousand dollars ($5,000).
2913	2913	(2) For a second offense, the board shall levy a civil
2914	2914	penalty of seven thousand five hundred dollars ($7,500).
2915	2915	(3) For a third offense, the board shall levy a civil
2916	2916	penalty of ten thousand dollars ($10,000), the person shall be
2917	2917	guilty of a Class C felony, and the court shall order any
2918	2918	business licenses of the person to be revoked.
2919	2919	Section 5. Section 13A-12-214.4, Code of Alabama 1975,
2920	2920	is amended to read as follows:
2921	2921	"§13A-12-214.4
2922	2922	(a) As used in this section, " psychoactive cannabinoids
2923	2923	smokable hemp product " means any plant product or raw hemp
2924	2924	material that: (i) contains cannabinoids derived from or found
2925	2925	in hemp as defined in Section 2-8-381, including, but not
2926	2926	limited to, delta-8-tetrahydrocannabinol and
2927	2927	delta-10-tetrahydrocannabinol cannabidiol (CBD),
2928	2928	delta-8-tetrahydrocannabinol (delta-8 THC),
2929	2929	delta-9-tetrahydrocannabinol (delta-9 THC), and
2930	2930	delta-10-tetrahydrocannabinol (delta-10 THC), and (ii) is
2931	2931	marketed to be smoked, including, but not limited to, as hemp
2932	2932	cigarettes, hemp cigars, hemp joints, whole hemp buds, or
2933	2933	ground hemp flowers .
2934	2934	(b) Except as provided in Chapter 2A of Title 20,
2935	2935	psychoactive cannabinoids shall not be sold, distributed, or
2936	2936	marketed to, or possessed by an individual who is under 21
2937	2937	years of age.
2938	2938	(c) Any psychoactive cannabinoids lawfully sold in this
2939	2939	state must be located in an area in which individuals under
2940	2940	the age of 21 years are not permitted access.
2941	2941	1401
2942	2942	1402
2943	2943	1403
2944	2944	1404
2945	2945	1405
2946	2946	1406
2947	2947	1407
2948	2948	1408
2949	2949	1409
2950	2950	1410
2951	2951	1411
2952	2952	1412
2953	2953	1413
2954	2954	1414
2955	2955	1415
2956	2956	1416
2957	2957	1417
2958	2958	1418
2959	2959	1419
2960	2960	1420
2961	2961	1421
2962	2962	1422
2963	2963	1423
2964	2964	1424
2965	2965	1425
2966	2966	1426
2967	2967	1427
2968	2968	1428 SB237 INTRODUCED
2969	2969	Page 52
2970	2970	the age of 21 years are not permitted access.
2971	2971	(d) Any person who sells, distributes, or markets
2972	2972	psychoactive cannabinoids to individuals under 21 years of age
2973	2973	shall be guilty of a Class B misdemeanor.
2974	2974	(e) Any individual under 21 years of age who is in
2975	2975	possession of psychoactive cannabinoids shall be issued a
2976	2976	citation similar to a uniform nontraffic citation and shall be
2977	2977	fined not less than fifty dollars ($50) nor more than two
2978	2978	hundred dollars ($200) for each violation or community service
2979	2979	in equal value of the fine and shall be assessed no other
2980	2980	court costs or fees. In addition, on a third or subsequent
2981	2981	conviction, including convictions in district court or
2982	2982	municipal court, the individual shall be issued a citation
2983	2983	similar to a uniform nontraffic citation and shall be fined
2984	2984	four hundred dollars ($400) for each violation or community
2985	2985	service in equal value of the fine.
2986	2986	(f) Any psychoactive cannabinoids sold in this state
2987	2987	shall be packaged in child-resistant containers
2988	2988	(b) Except as otherwise authorized by law, a person
2989	2989	commits the crime of unlawful possession of a smokable hemp
2990	2990	product in the first degree if:
2991	2991	(1) He or she possesses smokable hemp products for
2992	2992	other than personal use; or
2993	2993	(2) He or she possesses smokable hemp products for his
2994	2994	or her personal use only after having been previously
2995	2995	convicted of: (i) unlawful possession of smokable hemp
2996	2996	products in the second degree; (ii) unlawful possession of
2997	2997	marijuana in the second degree; or (iii) unlawful possession
2998	2998	1429
2999	2999	1430
3000	3000	1431
3001	3001	1432
3002	3002	1433
3003	3003	1434
3004	3004	1435
3005	3005	1436
3006	3006	1437
3007	3007	1438
3008	3008	1439
3009	3009	1440
3010	3010	1441
3011	3011	1442
3012	3012	1443
3013	3013	1444
3014	3014	1445
3015	3015	1446
3016	3016	1447
3017	3017	1448
3018	3018	1449
3019	3019	1450
3020	3020	1451
3021	3021	1452
3022	3022	1453
3023	3023	1454
3024	3024	1455 SB237 INTRODUCED
3025	3025	Page 53
3026	3026	marijuana in the second degree; or (iii) unlawful possession
3027	3027	of smokable hemp products for his or her personal use only.
3028	3028	(c) Unlawful possession of smokable hemp products in
3029	3029	the first degree pursuant to subdivision (b)(1) is a Class C
3030	3030	felony.
3031	3031	(d) Unlawful possession of smokable hemp products in
3032	3032	the first degree pursuant to subdivision (b)(2) is a Class D
3033	3033	felony."
3034	3034	Section 6. Section 13A-12-214.5 is added to the Code of
3035	3035	Alabama 1975, to read as follows:
3036	3036	§13A-12-214.5
3037	3037	(a) A person commits the crime of unlawful possession
3038	3038	of smokable hemp products in the second degree if, except as
3039	3039	otherwise authorized, he or she possesses smokable hemp
3040	3040	products for his or her personal use only.
3041	3041	(b) Unlawful possession of smokable hemp products in
3042	3042	the second degree is a Class A misdemeanor.
3043	3043	Section 7. If any provision of Section 1 or Section 2,
3044	3044	or its application to any person or circumstance, is
3045	3045	determined by a court to be invalid or unconstitutional, that
3046	3046	provision shall be stricken and the remaining provisions shall
3047	3047	be construed in accordance with the intent of the Legislature
3048	3048	to further limit rather than expand commerce in hemp
3049	3049	beverages.
3050	3050	Section 8. This act shall become effective on July 1,
3051	3051	2025, except Section 5 shall become effective on January 1,
3052	3052	2026.
3053	3053	1456
3054	3054	1457
3055	3055	1458
3056	3056	1459
3057	3057	1460
3058	3058	1461
3059	3059	1462
3060	3060	1463
3061	3061	1464
3062	3062	1465
3063	3063	1466
3064	3064	1467
3065	3065	1468
3066	3066	1469
3067	3067	1470
3068	3068	1471
3069	3069	1472
3070	3070	1473
3071	3071	1474
3072	3072	1475
3073	3073	1476
3074	3074	1477
3075	3075	1478
3076	3076	1479
3077	3077	1480
3078	3078	1481