Alabama Senate Bill SB237 Latest Draft

                            SB237INTRODUCED
Page 0
SB237
11HSPL3-1
By Senators Melson, Albritton, Waggoner, Livingston, Butler,
Kitchens, Williams, Chesteen, Allen, Sessions, Hovey, Kelley,
Jones, Beasley, Stewart, Chambliss, Price
RFD: Healthcare
First Read: 18-Mar-25
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7 11HSPL3-1 03/17/2025 PMG (L)cr 2025-1274
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First Read: 18-Mar-25
SYNOPSIS:
Under existing law, products that contain
psychoactive cannabinoids found in or derived from hemp
may not be sold to minors but are otherwise not
regulated.
This bill would regulate beverages containing
hemp derivatives, defined as "hemp beverages," and
treat hemp beverages for purposes of state law similar
to beer or wine, to be licensed and regulated by the
Alcoholic Beverage Control Board.
This bill would require a license from the board
to manufacture, distribute, or sell at retail for
either on-premises or off-premises consumption.
This bill would establish labeling and testing
requirements for safety, and would place restrictions
on where hemp beverages may be sold in stores.
This bill would levy an excise tax on hemp
beverages at the rate of ten percent on the retail
sales price, in addition to any state or local sales
tax.
This bill would regulate consumable products
containing hemp derivatives other than beverages,
defined as "psychoactive hemp products" and treat these
products for purposes of state law similar to tobacco
products, to be permitted and regulated by the
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products, to be permitted and regulated by the
Alcoholic Beverage Control Board.
This bill would require psychoactive hemp
products to be placed onto the ENDS directory
maintained by the Department of Revenue and would
provide requirements for such products to be listed on
the directory.
This bill would establish labeling requirements
and restrict advertising of these products.
This bill would prohibit the sale of any
products containing hemp derivatives to individuals
under 21 years of age and provide penalties for
violations.
This bill would prohibit smokable hemp products
in the state.
This bill would also provide civil and criminal
penalties for violations.
A BILL
TO BE ENTITLED
AN ACT
Relating to psychoactive cannabinoids; to add Chapter
12 to Title 28, Code of Alabama 1975; to license and regulate
hemp beverages that contain psychoactive cannabinoids; to
provide for licensure of manufacturers, wholesalers, and
retailers of hemp beverages by the Alcoholic Beverage Control
Board and set fees and requirements for licensure; to impose
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Board and set fees and requirements for licensure; to impose
labeling and testing requirements for hemp beverages; to levy
an excise tax on retail sales of hemp beverages; to amend
Sections 28-11-1, 28-11-2, 28-11-3, 28-11-4, 28-11-5,
28-11-6.2, 28-11-8, and 28-11-9, Section 28-11-13, as last
amended by Act 2024-79 of the 2024 Regular Session, and
Sections 28-11-15, 28-11-16, and 28-11-19, Code of Alabama
1975; to add Sections 28-11-1.1, 28-11-1.2, 28-11-7.1,
28-11-15.1, 28-11-16.1, 28-11-17.2, and 28-11-22 to the Code
of Alabama 1975; to permit and regulate psychoactive hemp
products other than beverages; to require a permit for
retailers of psychoactive hemp products and set fees; to
impose labeling and advertising requirements; to impose
labeling and testing requirements for psychoactive hemp
products; to impose civil and criminal penalties for
violations; to prohibit sales of all consumable products
containing hemp derivatives to individuals under 21 years of
age; to levy an excise tax on retail sales of psychoactive
hemp products; and to amend Section 13A-12-214.4, Code of
Alabama 1975, and add Section 13A-12-214.5 to the Code of
Alabama 1975, to prohibit the possession of smokable hemp
products and provide for criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Chapter 12 is added to Title 28, Code of
Alabama 1975, to read as follows:
Article 1. General Provisions
§28-12-1 
It is the intent of the Legislature, through the
provisions of this chapter, to:
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provisions of this chapter, to:
(1) Exercise the police power of the State of Alabama
to regulate the sale and distribution of hemp beverages for
the protection of the public welfare, health, peace, and
morals of the people of the state; and 
(2) Eliminate the sale of hemp beverages to, and
consumption of hemp beverages by, individuals under 21 years
of age.
§28-12-2 
Nothing in this chapter shall prevent the governing
body of any county or municipality to ban or further regulate
where or when hemp beverages may be sold within the respective
jurisdiction of the county or municipality.
§28-12-3 
As used in this chapter, the following terms have the
following meanings:
(1) BATCH. A specific quantity of a specific product
containing psychoactive cannabinoids that: (i) is manufactured
at the same time and using the same methods, equipment, and
ingredients that are uniform and intended to meet
specifications for identity, strength, purity, and
composition, and (ii) is manufactured, packaged, and labeled
according to a single batch production record executed and
documented.
(2) CARTON. The package or container or containers in
which hemp beverages are originally packaged for shipment to
market by the manufacturer or its designated representatives.
(3) CERTIFICATE OF ANALYSIS (COA). A document issued by
an independent, accredited laboratory that provides
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an independent, accredited laboratory that provides
information about the chemical composition of a particular
batch of hemp beverages.
(4) CONTAINER. The bottle, can, bag, or other
receptacle, not a carton, in which hemp beverages are
originally packaged for the market by the manufacturer or its
designated representatives and from which the hemp beverage is
consumed by or dispensed to the public.
(5) HEMP BEVERAGE. Any product that is intended to be
consumed as a beverage by humans that contains psychoactive
cannabinoids. The term excludes medical cannabis regulated
under Chapter 2A of Title 20.
(6) KEG. A pressurized factory sealed container used to
dispense hemp beverages on draft.
(7) MANUFACTURER. Any person licensed by the board
engaged in the producing, bottling, manufacturing, blending,
infusing, cooking, rectifying, or compounding of hemp
beverages in this state for sale or distribution in this state
or to the board or to a licensee of the board.
(8) MULTI-USE CONTAINER. A resealable container
designed and intended for multiple servings of a hemp
beverage.
(9) PSYCHOACTIVE CANNABINOIDS. Cannabinoids derived
from or found in hemp as defined in Section 2-8-381,
including, but not limited to, cannabidiol (CBD),
delta-8-tetrahydrocannabinol (delta-8 THC),
delta-9-tetrahydrocannabinol (delta-9 THC), and
delta-10-tetrahydrocannabinol (delta-10 THC).
(10) RETAILER. Any person licensed by the board to
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(10) RETAILER. Any person licensed by the board to
engage in the retail sale of any hemp beverages to the
consumer.
(11) WHOLESALER. Any person licensed by the board to
engage in the sale and distribution of hemp beverages within
this state, at wholesale only, to be sold by export or to
retail licensees or other wholesaler licensees or others
within this state lawfully authorized to sell hemp beverages
for the purpose of resale only.
§28-12-4 
(a) The manufacture, possession, sale, consumption,
use, and delivery of hemp beverages within this state shall be
regulated and enforced by the board through the licensure of
manufacturers, wholesalers, and retailers of hemp beverages,
as provided in this chapter.
(b) The board may enter upon the premises of any
licensee to examine, or cause to be examined by any agent or
representative designated by the board for that purpose, any
books, papers, or other records and to secure other
information directly or indirectly relating to the enforcement
of this chapter.
(c) The board shall adopt rules as necessary to
implement this chapter.
Article 2 Hemp Beverage Licenses
§28-12-20 
(a) Subject to this chapter and rules adopted
thereunder, the board may issue and renew licenses to
reputable and responsible persons for the following purposes:
(1) To manufacture or otherwise produce, blend, bottle,
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(1) To manufacture or otherwise produce, blend, bottle,
infuse, cook, rectify, or compound hemp beverages within this
state for sale or distribution within this state.
(2) To distribute, wholesale, or act as jobber for the
sale of hemp beverages to licensed retailers within the state
and others within this state lawfully authorized to sell hemp
beverages.
(3) To sell hemp beverages at retail for on-premises
consumption.
(4) To sell hemp beverages at retail for off-premises
consumption.
(b) The board is granted discretionary powers in acting
upon license applications under this chapter.
(c) Licenses issued under this chapter, unless revoked
or suspended by the board, shall be valid for the license year
which shall begin on October 1 of each year, unless otherwise
established by this chapter or by the board. Licenses may be
issued at any time during the year.
§28-12-21
(a)(1) Effective January 1, 2026, upon the submission
of an application and application fee, as prescribed by the
board by rule, the board shall issue to the applicant a
manufacturer license that authorizes the licensee to
manufacture or otherwise produce, blend, bottle, infuse, cook,
rectify, or compound hemp beverages within this state or for
sale to a retailer or wholesaler within this state. 
(2) No person shall manufacture or otherwise produce,
blend, bottle, infuse, cook, rectify, or compound hemp
beverages within this state or for sale or distribution within
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beverages within this state or for sale or distribution within
this state, unless the person is issued a manufacturer license
by the board. 
(b) A manufacturer licensee may not:
(1) Sell any hemp beverages for consumption on the
premises where sold;
(2) Sell any hemp beverages within this state directly
to consumers;
(3) Sell or deliver any hemp beverages in other than
original containers approved by the board; or 
(4) Maintain or operate within the state any place or
places, other than the place or places covered by the
manufacturer license where hemp beverages are manufactured or
sold.
(c) Effective January 1, 2026, each manufacturer
licensee shall file with the board prior to making any sales
within this state: 
(1) The label for each container to be sold in this
state, which label must comply with Section 28-12-40; and
(2) The certificate of analysis for each batch of hemp
beverages to be sold in this state, which certificate must
provide the information as established in Section 28-12-41. 
(d) On and after January 1, 2026, all hemp beverages
whose labels and certificates of analysis have not been filed
as provided in subsection (c) shall be considered contraband
and may be seized by the board or its agents, or any law
enforcement officer of the state without a warrant, and the
goods shall be delivered to, and disposed of by, the board.
(e) A manufacturer licensee shall be required to mail
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(e) A manufacturer licensee shall be required to mail
to the board prior to the twentieth day of each month a
consolidated report of all shipments of hemp beverages made to
each retailer and wholesaler during the preceding month. The
reports shall be in the form and containing information as the
board may prescribe.
(f) A manufacturer licensee shall keep at its principal
place of business within this state daily permanent records
that show the quantities of raw materials received and used in
the manufacture of hemp beverages and the quantities of hemp
beverages manufactured and stored, the sale of hemp beverages,
the quantities of hemp beverages stored for hire or
transported for hire by or for the licensee, and the names and
addresses of the purchasers or other recipients thereof.
(g)(1) Every place licensed as a manufacturer shall be
subject to inspection by members of the board or by
individuals authorized and designated by the board at any time
of the day or night as they may deem necessary, for the
detection of violations of this chapter, any law, or the rules
of the board, or for the purpose of ascertaining the
correctness of the records required to be kept by the
licensees. 
(2) The books and records of licensees at all times
shall be open to inspection by members of the board or by
individuals authorized and designated by the board. 
(3) Members of the board and its authorized agents,
without hindrance, may enter any place that is subject to
inspection hereunder or any place where records are kept for
the purpose of making inspections and making transcripts
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the purpose of making inspections and making transcripts
thereof.
§28-12-22
(a) Effective January 1, 2026, upon the submission of
an application and application fee, as prescribed by the board
by rule, the board shall issue to the applicant a wholesaler
license that authorizes the licensee to import and receive
shipments of hemp beverages from outside the state from
licensed manufacturers, to purchase hemp beverages from
licensed manufacturers or other licensed wholesalers within
the state, to sell at wholesale and distribute hemp beverages
to retailer licensees, and to export hemp beverages from the
state. Sales to all retailer licensees shall be in original
packages or containers as prepared for the market by the
manufacturer or bottler. 
(b) No person shall sell at wholesale or distribute
hemp beverages within this state or to retailer licensees
unless the person has been issued a wholesaler license by the
board.
(c) A wholesaler may not sell any hemp beverages within
this state directly to consumers.
§28-12-23
(a) Effective January 1, 2026, upon the submission of
an application and application fee, as prescribed by the board
by rule, the board shall issue to the applicant a retail
license that authorizes the licensee to purchase hemp
beverages from a licensed manufacturer or wholesaler and to
sell hemp beverages at retail for on-premises consumption in a
room or rooms or place on the licensed premises, for
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room or rooms or place on the licensed premises, for
off-premises consumption.
(b) A retail licensee for off-premises consumption may
only be sold in original unopened containers.
(c) No person shall sell hemp beverages at retail for
either: (i) on-premises consumption; or (ii) off-premises
consumption within this state unless the person has been
issued the appropriate on-premises retailer license or
off-premises retailer license by the board.
§28-12-24
(a) Effective January 1, 2026, upon the submission of
an application and application fee, as prescribed by the board
by rule, the board shall issue to the applicant the applicable
hemp beverage license as established in Sections 28-12-21
through 28-12-23 to any person who holds and possesses any of
the following:
(1) A valid manufacturer license as provided for in
Section 28-3A-6.
(2) A valid wholesaler license as provided for in
Section 28-3A-9.
(3) A valid retail license as provided for in Sections
28-3A-11 through 28-3A-20.
(b) Notwithstanding any provision of this title or
rules of the board to the contrary, upon the issuance of a
hemp beverage license in accordance with subsection (a)(3),
retail licensees under Section 28-3A-11, commonly known as
package stores, shall be authorized to purchase hemp beverages
from a licensed hemp beverage wholesaler and sell hemp
beverages at retail commensurate with the privileges granted
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beverages at retail commensurate with the privileges granted
to such store to sell alcoholic beverages. 
(c) Except for payment of the applicable license fee,
there shall be no additional licensing or administrative
requirements, including no requirement for additional
background checks, which may be imposed by the state, a
county, or a municipality for licenses issued under this
section.
§28-12-25
(a) The board shall impose the following annual license
fees for hemp beverage licenses issued and renewed by the
board: 
(1) Manufacturer license, license fee of five hundred
dollars ($500).
(2) Wholesaler license, license fee of five hundred
fifty dollars ($550), plus two hundred dollars ($200) for each
warehouse in addition to the principal warehouse.
(3) Retail license for on-premises consumption, license
fee of one hundred fifty dollars ($150).
(4) Retail license for off-premises consumption,
license fee of one hundred fifty dollars ($150).
(b) The license fees shall be paid before a license may
be issued or renewed.
§28-12-26
The requirements and restrictions on licensees set
forth in subsections (a), (b), (c), (d), (f), (g), (k), (l),
(m), and (n) of Section 28-3A-23 are adopted and apply to this
article, and any reference therein to alcoholic beverages
shall refer to hemp beverages for purposes of this chapter.
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shall refer to hemp beverages for purposes of this chapter.
§28-12-27
(a) Except subdivisions (a)(10) and (a)(13) of Section
28-3A-25(a)(10) and (a)(13), the violations of the alcoholic
beverage laws described in Section 28-3A-25(a) and the
penalties described in Section 28-3A-25(b) and (c) are adopted
and apply to this article, and any reference therein to
alcoholic beverages shall refer to hemp beverages for purposes
of this chapter.
(b)(1) In addition to subsection (a), it shall be
unlawful for any person to:
a. Sell hemp beverages in any county or municipality
that has prohibited the sale of hemp beverages or to sell hemp
beverages in a manner that violates a restriction authorized
under Section 28-12-2 as to where or when hemp beverages may
be sold; or
b. Adulterate, contaminate, or in any manner change the
character or purity of a hemp beverage from that as originally
marketed and packaged by the manufacturer.
(2) A violation of this subsection shall be subject to
the penalties described in Section 28-3A-25(b).
§28-12-28
The board may revoke licenses under the same terms and
conditions set forth in Section 28-3A-26.
Article 3 Hemp Beverage Guidelines
§28-12-40
(a) Every container of hemp beverages must bear a label
that contains, at a minimum:
(1) The name, location, contact phone number, and
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(1) The name, location, contact phone number, and
website of the manufacturer of the product;
(2) The name and address of the independent, accredited
laboratory used by the manufacturer to test the product;
(3) The batch number; 
(4) The total number of milligrams of psychoactive
cannabinoids found in the container;
(5) The serving size, which may not exceed 12 ounces; 
(6) The total number of milligrams of psychoactive
cannabinoids per serving;
(7) The International Intoxicating Cannabinoid Product
Symbol (IICPS); 
(8) A list of ingredients, including identification of
any major food allergens declared by name;
(9) A statement that the hemp beverage does not claim
to diagnose, treat, cure, or prevent any disease and has not
been evaluated or approved by the U.S. Food and Drug
Administration (FDA), unless the product has been so approved;
and
(10) The following warnings: 
a. To keep the product out of reach of children;
b. That consumption of the product impairs person's
ability to drive and operate machinery; 
c. For persons who are pregnant, nursing, or taking
medications, to consult their licensed healthcare professional
about safety before consuming the product;
d. That the product is not intended for sale to or use
by persons under 21 years of age; 
e. That the psychoactive cannabinoids in the product
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e. That the psychoactive cannabinoids in the product
are derived from hemp. 
(b) Containers of hemp beverages may not:
(1) Bear the likeness or contain cartoon-like
characteristics of a real or fictional person, animal, or
fruit that appeals to children;
(2) Be modeled after a brand of products primarily
consumed by or marketed to children;
(3) Contain an ingredient, other than a psychoactive
cannabinoid, that is not approved by the United States Food
and Drug Administration for use in beverages;
(4) Include a statement, artwork, or design that could
reasonably mislead an individual to believe that the package
contains anything other than a hemp beverage product; 
(5) Contain alcohol; provided, however, hemp beverages
may contain trace amounts of alcohol if the alcohol is solely
derived from flavoring agents or ingredients such as bitters
and the presence of trace amounts of alcohol does not cause
the hemp beverage to be classified as an alcoholic beverage
under state or federal law; or
(6) Contain caffeine; provided, however, hemp beverages
may contain naturally occurring caffeine derived from
ingredients such as coffee, tea, or other natural sources, so
long as the caffeine does not exceed levels deemed safe by
generally accepted dietary guidelines. 
(c) Hemp beverages must be packaged in child-resistant
packaging, which may include traditional beverage cans with a
stay-on tab mechanism.
(d) Hemp beverages may not contain more than a total of
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(d) Hemp beverages may not contain more than a total of
10 milligrams of psychoactive cannabinoids per container, and
a single container may not contain more than 12 ounces of
beverage. Kegs and multi-use containers that hold a volume no
less than 750 milliliters may contain more than 10 milligrams
of psychoactive cannabinoids, so long as the intended single
serving from the keg or multi-use container does not exceed 10
milligrams of psychoactive cannabinoids. 
(e) Hemp beverages must not be packaged in cartons
containing more than six containers. 
(f) Hemp beverages may be dispensed from kegs and
multi-use containers for on-premises consumption only in
servings not exceeding 10 milligrams of psychoactive
cannabinoids. Kegs and multi-use containers may not be sold by
off-premises licensees.
(g) Any hemp beverages found not complying with the
provisions of this section shall be considered contraband and
may be seized by the board or its agents or by any law
enforcement officer of the State of Alabama without a warrant,
and the goods shall be delivered to, and disposed of by, the
board.
§28-12-41
(a) Prior to making any sales within this state, a
manufacturer shall submit representative samples of each batch
of the hemp beverage product to be sold within this state or
for sale or distribution within this state to an independent,
accredited laboratory for a certificate of analysis
certifying, at a minimum, that the product: 
(1) Contains an amount of delta-8 tetrahydrocannabinol,
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(1) Contains an amount of delta-8 tetrahydrocannabinol,
delta-9 tetrahydrocannabinol, delta-10 tetrahydrocannabinol,
or any other psychoactive cannabinoid not exceeding that which
is stated on the label of the product; and
(2) Does not contain more than trace amounts of any
mold, residual solvents or other catalysts, pesticides,
fertilizers, or heavy metals.
(b) A manufacturer must disclose all known information
regarding pesticides, fertilizers, solvents, or other foreign
materials applied to hemp or added to hemp during any
production or processing stages of any batch from which a
representative sample has been sent for testing, including any
catalysts used to create psychoactive cannabinoids. The
disclosure must be made to the laboratory performing testing
or sampling and, upon request, to the board. The disclosure
must include all information known to the manufacturer
regardless of whether the application or addition was made
intentionally or accidentally, or by the manufacturer or any
other person.
(c) Prior to making any sales within this state, a
manufacturer shall submit the certificate of analysis required
by this section to the board, and a manufacturer shall not
sell or offer for sale or distribution within this state any
hemp beverages from a batch which has not obtained a
certificate of analysis. 
(d) Any hemp beverages found not complying with this
section shall be considered contraband and may be seized by
the board or its agents or by any law enforcement officer of
the state without a warrant, and the goods shall be delivered
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the state without a warrant, and the goods shall be delivered
to, and disposed of by, the board.
§28-12-42
(a) Prior to initiating a sale or otherwise providing
hemp beverages to an individual, an employee of a retailer
must verify that the individual is at least 21 years of age.
(b) Proof of age may be established only by one of the
following:
(1) A valid driver license of any state.
(2) A valid United States Uniformed Service
Identification.
(3) A valid passport.
(4) A valid identification issued by any agency of a
state for the purpose of identification, bearing a photograph
and date of birth of the individual in question. 
(c) The board shall levy a civil penalty against any
licensee who sells a hemp beverage to an individual under 21
years of age as follows: 
(1) One thousand five hundred dollars ($1,500) for a
first offense.
(2) Two thousand five hundred dollars ($2,500) for a
second offense.
(3) Five thousand dollars ($5,000) for a third offense.
(4) Revocation of all licenses and permits issued by
the board to the licensee for a fourth offense. In addition,
the board shall not issue any license or permit under this
title until the expiration of one year from the date the
license or licenses are revoked at the location where the
violation occurred.
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violation occurred.
(d) In addition to the penalties described in
subsection (c), a retailer who violates this section shall
notify the wholesaler from whom the retailer purchased the
hemp beverage of the violation. For a third or fourth offense,
the wholesaler shall be vicariously liable and subject to the
same penalties as the retailer.
§28-12-43
(a) Off-premises retail licensees must designate a
specific area within their premises for the display and sale
of hemp beverages.
(b) The designated sales space for hemp beverages must
be:
(1) Separate from areas used for the display or sale of
non-alcoholic beverages and of alcoholic beverages; and
(2) Clearly marked and identified as a space for hemp
beverages to prevent consumer confusion.
(c) The designated space must include signage that:
(1) Clearly identifies the products as hemp beverages
containing psychoactive cannabinoids; and
(2) States that the products are not intended for sale
to persons under 21 years of age.
Article 4 Taxation
§28-12-60
(a) An excise tax at the rate of ten percent is levied
on the retail sales price of a hemp beverage product. The tax
is in addition to any other tax imposed by federal, state, or
local law.
(b) The tax levied by this section is intended to be
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(b) The tax levied by this section is intended to be
passed on to and borne by the purchaser of the hemp beverage
product. The tax is a debt from the purchaser to the retailer
until paid. The retailer is considered to act as a trustee on
behalf of the board when the retailer collects the tax from
the purchaser on a taxable transaction. The tax must be stated
and charged separately on any documentation provided to the
purchaser by the retailer at the time of the transaction.
(c) The tax levied during the preceding month is due
and payable monthly to the board on the first day of each
month, and for the purpose of ascertaining the amount of tax
payable under this section, all retailers making taxable sales
on or before the twentieth day of each month shall transmit to
the board, upon forms prescribed by the board, returns showing
gross sales during the preceding month.
(d) The revenue generated from the tax shall be
distributed as follows:
(1) Forty percent to the State General Fund.
(2) Thirty-five percent shall be retained by the board
for regulatory and administrative purposes.
(3) Fifteen percent divided equally between the board
and the Alabama State Law Enforcement Agency to be retained by
each for purposes of enforcement.
(4) Ten percent to the treasury of the municipality in
which the hemp beverages were sold within its corporate
limits, or, where sold outside the corporate limits of any
municipality, to the treasury of the county in which the hemp
beverages were sold for the purposes of enforcement.
(e) The taxes levied pursuant to this section are
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(e) The taxes levied pursuant to this section are
exclusive and shall be in lieu of all other and additional
taxes and licenses of the state, county, or municipality,
imposed on the sale of hemp beverages; provided, that nothing
herein contained shall be construed to exempt the retail sale
of hemp beverages from the levy of tax on general retail sales
by the state, county, or municipality in the nature of, or in
lieu of, a general sales tax.
Section 2. Sections 28-11-1, 28-11-2, 28-11-3, 28-11-4,
28-11-5, 28-11-6.2, 28-11-8, and 28-11-9, Section 28-11-13, as
last amended by Act 2024-79 of the 2024 Regular Session, and
Sections 28-11-15, 28-11-16, and 28-11-19, Code of Alabama
1975, are amended to read as follows:
"§28-11-1
It is the intent of the Legislature to prohibit access
to tobacco, tobacco products, psychoactive hemp products,
alternative nicotine products, and electronic nicotine
delivery systems to individuals under the age of 21 years of
age and prevent all of the following:
(1) The possibility of addiction to tobacco, tobacco
products, psychoactive hemp products, alternative nicotine
products, and electronic nicotine delivery systems by
individuals under the age of 21 years of age.
(2) Potential health problems associated with the use
of tobacco, tobacco products, psychoactive hemp products,
alternative nicotine products, and electronic nicotine
delivery systems.
(3) The failure by this state to comply with federal
guidelines or grant funding requirements, when applicable,
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guidelines or grant funding requirements, when applicable,
which relate to the establishment by the state of programs and
policies dealing with the sale of tobacco, tobacco products,
psychoactive hemp products, alternative nicotine products, and
electronic nicotine delivery systems."
"§28-11-2
For purposes of this chapter, the following terms have
the following meanings unless the context clearly indicates
otherwise:
(1) ALTERNATIVE NICOTINE PRODUCT. The term alternative
nicotine product includes any product that consists of or
contains nicotine that can be ingested into the body by
chewing, smoking, absorbing, dissolving, inhaling, snorting,
sniffing, or by any other means. The term does not include a
tobacco product, electronic nicotine delivery system, or any
product that has been approved by the United States Food and
Drug Administration for sale as a tobacco cessation product or
for other medical purposes and that is being marketed and sold
solely for that purpose.
(2) BOARD. The Alabama Alcoholic Beverage Control
Board.
(3) CHILD-RESISTANT PACKAGING. Liquid nicotine
container packaging meeting the requirements of 15 U.S.C. §
1472a.
(4) COMMISSIONER. The Commissioner of the Department of
Revenue.
(5) DISTRIBUTION. To sell, barter, exchange, or give
tobacco or tobacco products for promotional purposes or for
gratis.
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gratis.
(6) ELECTRONIC NICOTINE DELIVERY SYSTEM. Any electronic
device that uses a battery and heating element in combination
with an e-liquid or tobacco to produce a vapor that delivers
nicotine to the individual inhaling from the device to
simulate smoking, and includes, but is not limited to,
products that may be offered to, purchased by, or marketed to
consumers as an electronic cigarette, electronic cigar,
electronic cigarillo, electronic pipe, electronic hookah, vape
pen, vape tool, vaping device, or any variation of these
terms. The term also includes any e-liquid intended to be
vaporized in any device included in this subdivision.
(7) ELECTRONIC NICOTINE DELIVERY SYSTEM RETAILER. Any
retail business which offers for sale electronic nicotine
delivery systems.
(8) E-LIQUID. A liquid that contains nicotine and may
include flavorings or other ingredients that are intended for
use in an electronic nicotine delivery system.
(9) E-LIQUID MANUFACTURER. Any person who manufactures,
fabricates, assembles, processes, mixes, prepares, labels,
repacks, or relabels an e-liquid to be sealed in final
packaging intended for consumer use. This term includes an
owner of a brand or formula for an e-liquid who contracts with
another person to complete the fabrication and assembly of the
product to the brand or formula owner's standards.
(10) FDA. The United States Food and Drug
Administration.
(11) LIQUID NICOTINE CONTAINER. A bottle or other
container of a liquid product that is intended to be vaporized
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container of a liquid product that is intended to be vaporized
and inhaled using an electronic nicotine delivery system. The
term does not include a container holding liquid that is
intended for use in a vapor product if the container is
pre-filled and sealed by the manufacturer and is not intended
to be opened by the consumer.
(12) MINOR. Any individual under the age of 19 years of
age.
(13) PERSON. Any natural person, firm, partnership,
association, company, corporation, or other entity. Person
does not include a manufacturer or wholesaler of tobacco or
tobacco products nor does it include employees of the permit
holder.
(14) PROOF OF IDENTIFICATION. Any one or more of the
following documents used for purposes of determining the age
of an individual purchasing, attempting to purchase, or
receiving tobacco, tobacco products, electronic nicotine
delivery systems, or alternative nicotine products:
a. A valid driver's driver license issued by any state
and bearing the photograph of the presenting individual.
b. United States Uniform Service Identification.
c. A valid passport.
d. A valid identification card issued by any state
agency for the purpose of identification and bearing the
photograph and date of birth of the presenting individual.
e. For legal mail order purposes only, a valid signed
certification that will verify the individual is 21 years of
age or older.
(15) PSYCHOACTIVE CANNABINOIDS. Any cannabinoid derived
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(15) PSYCHOACTIVE CANNABINOIDS. Any cannabinoid derived
from or found in hemp as defined in Section 2-8-381,
including, but not limited to, cannabidiol (CBD),
delta-8-tetrahydrocannabinol (delta-8 THC),
delta-9-tetrahydrocannabinol (delta-9 THC), and
delta-10-tetrahydrocannabinol (delta-10 THC).
(16) PSYCHOACTIVE HEMP PRODUCT. a. Any of the
following:
1. A liquid that contains psychoactive cannabinoids and
may include flavorings or other ingredients that are intended
for use in an electronic nicotine delivery system or any other
product marketed to consumers as an electronic cigarette,
electronic cigarillo, electronic pipe, electronic hookah, vape
pen, vape tool, vaping device, or any variation of these
terms.
2. A candy, gummy, capsule, or other product that
contains psychoactive cannabinoids and is intended to be
ingested into the body.
3. An oil or tincture that contains psychoactive
cannabinoids and is marketed to deliver to the body
sublingually psychoactive cannabinoids.
b. The term excludes all of the following:
1. Hemp beverages regulated pursuant to Chapter 12.
2. Medical cannabis regulated pursuant to Chapter 2A of
Title 20.
3. Smokable hemp products prohibited pursuant to
Section 13A-12-214.4. and 13A-12-214.5.
(17) PSYCHOACTIVE HEMP PRODUCT PERMIT or PHP PERMIT. A
permit issued by the board to allow the permit holder to
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permit issued by the board to allow the permit holder to
engage in distribution and retail sale of psychoactive hemp
products at the location identified in the permit.
(15)(18) RESPONSIBLE VENDOR PROGRAM. A program
administered by the board to encourage and support vendors in
training employees in legal and responsible sales practices.
(16)(19) SAMPLER. Any business or person who
distributes tobacco or tobacco products for promotional
purposes.
(17)(20) SELF-SERVICE DISPLAY. A display that contains
tobacco or tobacco products and is located in an area openly
accessible to purchasers at retail and from which the
purchasers can readily access tobacco or tobacco products
without the assistance of the tobacco permit holder or an
employee of the permit holder. A display case that holds
tobacco or tobacco products behind locked doors does not
constitute a self-service display.
(18)(21) SPECIALTY RETAILER OF ELECTRONIC NICOTINE
DELIVERY SYSTEMS. A business establishment at which any of the
following are true:
a. The sale of electronic nicotine delivery systems
accounts for more than 35 percent of the total quarterly gross
receipts for the establishment.
b. Twenty percent or more of the public retail floor
space is allocated for the offering, displaying, or storage of
electronic nicotine delivery systems.
c. Twenty percent or more of the total shelf space,
including retail floor shelf space and shelf space in areas
accessible only to employees, is allocated for the offering,
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accessible only to employees, is allocated for the offering,
displaying, or storage of electronic nicotine delivery
systems.
d. The retail space features a self-service display for
electronic nicotine delivery systems.
e. Samples of electronic nicotine delivery systems are
offered to customers.
f. Liquids intended to be vaporized through the use of
an electronic nicotine delivery system are produced at the
facility or are produced by the owner of the establishment or
any of its agents or employees for sale at the establishment.
(19)(22) TOBACCO or TOBACCO PRODUCT. Any product made
or derived from tobacco that is intended for human
consumption, including any component, part, or accessory of a
tobacco product, except for raw materials other than tobacco
used in manufacturing a component, part, or accessory of a
tobacco product, but does not include an article that is a
drug under Section 201(g)(1) of the Federal Food, Drug, and
Cosmetic Act, a device under Section 201(h) of the Federal
Food, Drug, and Cosmetic Act, or a combination product
described in Section 503(g) of the Federal Food, Drug, and
Cosmetic Act.
(20)(23) TOBACCO PERMIT. A permit issued by the board
to allow the permit holder to engage in the distribution of
tobacco, tobacco products, electronic nicotine delivery
systems, or alternative nicotine products at the location
identified in the permit.
(21)(24) TOBACCO SPECIALTY STORE. A business that
derives at least 75 percent of its revenue from tobacco or
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derives at least 75 percent of its revenue from tobacco or
tobacco products."
"§28-11-3
The board, in conjunction with federal, state, and
local law enforcement agencies, shall enforce state and
federal laws that prohibit relating to the distribution and
retail sales of tobacco, tobacco products, psychoactive hemp
products, alternative nicotine products, and electronic
nicotine delivery systems to individuals under the age of 21
years. Notwithstanding the foregoing, for purposes of
inspections and enforcement actions undertaken pursuant to
this section, individuals under the age of 21 years of age may
be enlisted to attempt to purchase or purchase tobacco,
tobacco products, psychoactive hemp products, alternative
nicotine products, and electronic nicotine delivery systems,
provided that individuals under the age of 18 years of age
shall have the prior written consent of a parent or legal
guardian, and provided further that the individuals shall be
directly supervised during the conduct of each inspection or
enforcement action by an enforcement agent of the board or a
law enforcement officer. , or by a sheriff or head of police of
any county, city, town, or other political subdivision, or by
a deputy or officer thereof. No individual under the age of 21
years may misrepresent his or her age for the purpose of
purchasing or attempting to purchase tobacco, tobacco
products, alternative nicotine products, or electronic
nicotine delivery systems. If questioned about his or her age
during an attempt to purchase or receive tobacco, tobacco
products, alternative nicotine products, or electronic
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products, alternative nicotine products, or electronic
nicotine delivery systems, an individual under the age of 21
years shall state his or her true age. A photograph or video
recording of any individual under the age of 21 years
assisting in an inspection or enforcement action shall be
taken prior to the investigation. The appearance of an
individual under the age of 21 years participating in an
inspection or enforcement action shall not be altered at the
time of the inspection. "
"§28-11-4
Pursuant to its rulemaking authority, the board shall
adopt rules that have the full force and effect of law, for
purposes of the following:
(1) Establishing permits for the distribution of
tobacco, tobacco products, electronic nicotine delivery
systems, and alternative nicotine products.
(2) Establishing permits for the distribution of
psychoactive hemp products as provided in Section 28-11-7.1.
(2)(3) Preventing the distribution of tobacco, tobacco
products, psychoactive hemp products, electronic nicotine
delivery systems, and alternative nicotine products to
individuals under the age of 21 years of age.
(3)(4) Conducting annual random compliance tests to
assure compliance with applicable state and federal laws and
guidelines regarding the distribution of tobacco, tobacco
products, psychoactive hemp products, electronic nicotine
delivery systems, and alternative nicotine products. The tests
involving any person or location engaged in the distribution
of tobacco may utilize use individuals under the age of 21
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of tobacco may utilize use individuals under the age of 21
years of age."
"§28-11-5
The board may use funding, if available, from the
Department of Mental Health, other state or federal agencies,
grants, and private or public organizations to enforce this
chapter and to provide and distribute tobacco , psychoactive
hemp products, and nicotine prevention materials to retail
tobacco merchants and specialty retailers of electronic
nicotine delivery systems. The materials shall provide
information regarding state and federal laws that prohibit
access to tobacco, tobacco products, psychoactive hemp
products, alternative nicotine products, and electronic
nicotine delivery systems by individuals under the age of 21
years of age and other appropriate information. The board may
also provide consultation services for establishing programs
to minimize or eliminate sales of tobacco, tobacco products,
psychoactive hemp products, alternative nicotine products, and
electronic nicotine delivery systems to individuals under 	the
age of 21 years of age pursuant to the responsible vendor
program."
"§28-11-6.2
(a) No tobacco, tobacco product, alternative nicotine
product, or electronic nicotine delivery system shall be
distributed at retail through a self-service display unless
the display is a vending machine as permitted under Section
28-11-6.1 or is located in a tobacco specialty store or at a
specialty retailer of electronic nicotine delivery systems and
is located in an area in which individuals under 21 years of
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is located in an area in which individuals under 21 years of
age are not permitted access.
(b) A psychoactive hemp product may only be distributed
at retail through a self-service display if the display is
located in a specialty retailer of electronic nicotine
delivery systems and the product is located in an area in
which individuals under 21 years of age are not permitted
access.
(c) A violation of this section shall be subject to the
penalties provided in Section 28-11-9 ."
"§28-11-8
(a)(1) It shall be unlawful for any person to sell or
offer for sale tobacco ,or tobacco products , psychoactive hemp
products, alternative nicotine products, or electronic
nicotine delivery systems without first obtaining the
appropriate permit from the board.
(2) Selling or offering for sale tobacco ,or tobacco
products, alternative nicotine products, or electronic
nicotine delivery systems without obtaining and displaying a
valid permit by January 1, 1998, shall result in issuance of a
warning citation. 
(3) Selling or offering for sale any psychoactive hemp
product without obtaining a valid PHP permit from the board
shall be subject to the violations in Section 5 of this act.
(b) The board shall conduct an information and
education campaign by its Responsible Vendor Program to inform
distributors of tobacco products , psychoactive hemp products,
alternative nicotine products, or electronic nicotine delivery
systems at retail or in vending machines or self-service
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systems at retail or in vending machines or self-service
displays of the requirements of this law. Failure to obtain or
display a valid permit pursuant to this chapter after January
1, 1998, shall constitute a misdemeanor offense.
(b) It shall be unlawful for any person to sell or
offer for sale electronic nicotine delivery systems or
alternative nicotine products without first obtaining the
appropriate permit from the board. Failure to obtain or
display a valid permit by October 30, 2019, shall result in
issuance of a warning citation. The board shall conduct an
information and education campaign by its Responsible Vendor
Program to inform distributors of alternative nicotine
products at retail or in vending machines or self-service
displays of the requirements of this law. Selling or offering
for sale electronic nicotine delivery systems or alternative
nicotine products without obtaining and displaying a valid
permit issued pursuant to this chapter by October 30, 2019,
shall be a Class C misdemeanor.
(c) Each violation for selling tobacco, tobacco
products, psychoactive hemp products, electronic nicotine
delivery systems, or alternative nicotine products without a
valid permit shall be treated as a separate offense and be
punishable as follows: For the first violation by a fine of
not less than one hundred dollars ($100) nor more than five
hundred dollars ($500) and for each subsequent violation by a
fine of not less than five hundred dollars ($500) nor more
than one thousand five hundred dollars ($1,500)."
"§28-11-9
(a) Subject to the Alabama Administrative Procedure
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(a) Subject to the Alabama Administrative Procedure
Act, Chapter 22 of Title 41, the board shall have full and
final authority as to the suspension or revocation for cause
of any permit issued pursuant to this chapter.
(b)(1) The board may appoint a hearing commission of at
least three persons which may do all of the following:
a. Hear and decide all contested applications for
permits.
b. Hear and decide all charges against any permit
holder or employee of a permit holder for violations of this
chapter, the law, or the rules of the board.
c. Revoke or suspend permits as provided in this
chapter.
d. Levy administrative fines upon permit holders or
employees of permit holders.
(2) No member of the hearing commission shall
participate in the hearing or disposition of any application
for a permit or charge against a permit holder or an employee
of a permit holder if he or she has an interest therein or was
involved in the investigation.
(b)(c) The board, or a hearing commission appointed by
the board, upon finding that a permit holder or any partner,
member, employee, officer, or director of the permit holder
has violated any of the laws of this state or the United
States relating to the manufacture, sale, possession, or
transportation of tobacco, tobacco products, psychoactive hemp
products, electronic nicotine delivery systems, or alternative
nicotine products, or that the permit holder has acted in a
manner prejudicial to the welfare, health, peace, temperance,
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manner prejudicial to the welfare, health, peace, temperance,
and safety of the people of the community or of the state, 	may
upon due notice and hearing, shall levy administrative fines
or suspend or revoke the permit issued by the board, or a
combination of all three. In all cases where the board or
hearing commission shall levy levies an administrative fine or
suspend or revoke suspends or revokes a permit, it shall set
forth its findings of fact, the evidence from which the
findings of facts are made, and the reasons upon which its
actions are based.
(c)(d) The fines as specified in subsection (e)(f)
shall be applicable per each violation. The permit holder or
employee shall remit the administrative fine to the board
within seven calendar days from the day that the
administrative fine is levied. Failure by the permit holder to
pay the administrative fine within that time period shall
result in an automatic suspension of the permit until the
administrative fine is paid.
(d)(e)(1) The maximum length of suspension of a permit
pursuant to this chapter shall be one year. A permit holder
shall be ineligible to hold a permit pursuant to this chapter
for the location where the violation occurred until the
expiration or removal of the suspension. 
(2) A permit holder whose permit is revoked by the
board or the hearing commission shall be, at the discretion of
the board or hearing commission, shall be ineligible to hold a
permit pursuant to this chapter until the expiration of one
year from the date the permit is revoked at the location where
the violation occurred.
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the violation occurred.
(e)(f)The Except as otherwise provided in this
chapter, the following administrative fines may penalties
shall be levied for violations of this chapter against valid
permit holders or employees, or both :
(1) Upon conviction for a first violation by the permit
holder or an employee of the permit holder, the board or
hearing commission may offer the permit holder an opportunity
to provide training sessions administered by the Responsible
Vendor Program in lieu of an administrative fine upon the
permit holder and the employee, if the violation is by an
employee, of not more than two hundred dollars ($200).
(2) Upon conviction of a second violation at the same
location within a two-year period, the board or hearing
commission may levy an administrative fine upon the permit
holder and the employee, if the violation is by an employee,
of not more than four hundred dollars ($400).
(3) Upon conviction of a third or subsequent violation
at the same location within a two-year period, the board or
hearing commission may levy an administrative fine upon the
permit holder and the employee, if the violation is by an
employee, of not more than seven hundred fifty dollars ($750).
(4) Upon conviction of a fourth or subsequent violation
at the same location within a two-year period, the board or
hearing commission may levy an administrative fine upon the
permit holder and the employee, if the violation is by an
employee, of not more than one thousand dollars ($1,000) and
may suspend or revoke the permit.
(f)(g) Before imposition of any administrative fine,
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(f)(g) Before imposition of any administrative fine,
the permit holder shall be afforded all procedural rights to
due process in addition to those rights guaranteed by the
Alabama Administrative Procedure Act, Chapter 22 of Title 41."
"§28-11-13
(a)(1) It is unlawful for any individual under 21 years
of age to purchase, use, possess, or transport tobacco, a
tobacco product, a psychoactive hemp product, an electronic
nicotine delivery system , or other electronic battery-powered
device capable of being used to deliver any e-liquid, e-liquid
substitute, tobacco, CBD oil, THC oil, herbal extract, or
nicotine salt, or any analog thereof, or any other substance
to the individual through the inhalation of vapor, or an
alternative nicotine product within this state.
(2) For purposes of this subsection, a violation is
committed upon mere possession of an electronic nicotine
delivery system or other electronic battery-powered device as
described in subdivision (1), irrespective of which particular
e-liquid or other substance, if any, was contained or
otherwise used in the device.
(b) It shall not be unlawful for an individual under 21
years of age who is an employee of a tobacco, tobacco product,
psychoactive hemp product, electronic nicotine delivery
system, or alternative nicotine product permit holder to
handle, transport, or sell tobacco, a tobacco product, a
psychoactive hemp product, an electronic nicotine delivery
system, or an alternative tobacco product if the employee is
acting within the line and scope of employment and the permit
holder, or an employee of the permit holder who is 21 years of
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holder, or an employee of the permit holder who is 21 years of
age or older, is present.
(c) It is unlawful for any individual under 21 years of
age to present or offer to another person proof of
identification that is false, fraudulent, or not actually his
or her own proof of identification in order to buy, receive,
or otherwise obtain, or attempt to buy, receive, or otherwise
obtain, any tobacco, tobacco product, psychoactive hemp
product, electronic nicotine delivery system, or alternative
nicotine product.
(d) If a minor is cited for any violation under this
section, the citing agency shall make reasonable efforts to
notify a parent, legal guardian, or legal custodian of the
minor unless the minor has been emancipated by court order or
operation of law.
(e) Nothing in this section shall apply to devices used
to deliver medication prescribed or ordered by a physician
licensed to practice medicine in this state."
"§28-11-15
(a) Any person who distributes sells at retail tobacco,
or tobacco products , psychoactive hemp products, electronic
nicotine delivery systems, or alternative nicotine products
within this state shall post conspicuously and keep so posted
at each location of distribution sale and vending machines a
sign that is placed in a way that it is likely to be read by
those seeking to purchase or obtain tobacco or tobacco any of
these products. Each sign shall state that:
(1) Alabama law strictly prohibits the purchase of
tobacco products and psychoactive hemp products by persons
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tobacco products and psychoactive hemp products by persons
under the age of 21 years of age.
(2) Proof of age is required for the purchase of
tobacco products and psychoactive hemp products .
(b) In addition to subsection (a), any retailer of
psychoactive hemp products shall display in a prominent area
of the retail store near the point of sale a sign that
contains the following statement:
"(1) Psychoactive hemp products do not claim to
diagnose, treat, cure, or prevent any disease and have not
been evaluated or approved by the U.S. Food and Drug
Administration.
(2) Consumption of this product impairs a person's
ability to drive and operate machinery.
(3) For persons who are pregnant, nursing, or taking
medication, consult your licensed healthcare professional
about safety before consuming this product." "
"§28-11-16
(a)(1) A retailer or manufacturer of psychoactive hemp
products, electronic nicotine delivery systems , or alternative
nicotine products may not advertise an electronic nicotine
delivery system or an alternative nicotine the product in any
of the following ways:
a. As a tobacco cessation product.
b. As a healthier alternative to smoking.
c. As available for purchase in any variety of flavors
other than tobacco, mint, or menthol on any outdoor billboard.
d. On any outdoor billboard located within 1,000 feet
of any public or private K-12 school or public playground.
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of any public or private K-12 school or public playground.
e. As a drug to treat, diagnose, or cure any medical
condition.
f. Using any medical-related imagery, including images
of doctors, nurses, syringes, or pills.
g. To individuals under 21 years of age.
h. On social media websites accessible to individuals
under 21 years of age.
i. Using unsubstantiated claims, exaggerated or false
promises about the product, or misrepresenting the effect of
the product on the consumer.
(2) Paragraphs (1)a. and (1)b. of subdivision (1) are
not applicable to products that have received an order from
the FDA permitting the product to be marketed as a modified
risk tobacco product, and are marketed in accordance with that
order.
(b)(1) A specialty retailer of electronic nicotine
delivery systems ,ora manufacturer of tobacco, tobacco
products, electronic nicotine delivery systems, or alternative
nicotine products ,or a retailer of psychoactive hemp products
may not in any way sponsor, finance, or advertise a
scholarship of any kind using the brand name of any tobacco
product, psychoactive hemp product, alternative nicotine
product, or electronic nicotine delivery system.
(2) A specialty retailer of electronic nicotine
delivery systems ,ora manufacturer of tobacco, tobacco
products, electronic nicotine delivery systems, or alternative
nicotine products , or a retailer of psychoactive hemp products
may not use the brand name of any tobacco product,
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may not use the brand name of any tobacco product,
psychoactive hemp product, alternative nicotine product, or
electronic nicotine delivery system to advertise at or sponsor
any stadium, concert, sporting event, or other public
performance event for which individuals aged 21 years of age
or older make up less than 85 percent of the total age
demographic of performing participants.
(3) A specialty retailer of electronic nicotine
delivery systems ,ora manufacturer of tobacco, tobacco
products, electronic nicotine delivery systems, or alternative
nicotine products , or a retailer of psychoactive hemp products
may not advertise a tobacco product, psychoactive hemp
product, electronic nicotine delivery system, or alternative
nicotine product in a newspaper, magazine, periodical, or
other print or digital publication distributed in this state
for which less than 85 percent of the viewership or readership
of the publication is made up of individuals 21 years of age
or older as measured by competent and reliable survey
evidence.
(c)(1) A violation of subsection (a) or subsection (b)
shall result in a one hundred dollar ($100) fine for the first
occurrence.
(2) A second or subsequent violation of subsection (a)
or subsection (b) shall result in a five hundred dollar ($500)
fine per occurrence.
(3) Each day a violation of subsection (a) or
subsection (b) persists shall constitute a separate and
subsequent violation.
(d) A retailer or manufacturer of tobacco, tobacco
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(d) A retailer or manufacturer of tobacco, tobacco
products, psychoactive hemp products, electronic nicotine
delivery systems, or alternative nicotine products may not
advertise, market, or offer for sale tobacco, a tobacco
product, a psychoactive hemp product, an electronic nicotine
delivery system, or an alternative nicotine product in any of
the following ways:
(1) By using, in the labeling or design of the product,
its packaging, or in its advertising or marketing materials,
the terms "candy" or "candies," any variant of these words, or
any other term referencing a type or brand of candy, including
types or brands of candy that do not include the words "candy"
or "candies" in their names or slogans.
(2) By using, in the labeling or design of the product,
its packaging, or in its advertising or marketing materials,
the terms "cake" or "cakes" or "cupcake" or "cupcakes" or
"pie" or "pies," any variant of these words, or any other term
referencing a type or brand of cake, pastry, or pie, including
types or brands of cakes, pastries, or pies that do not
include the words "cake" or "cakes" or "cupcake" or "cupcakes"
or "pie" or "pies" in their names or slogans.
(3) By using, in the labeling or design of the product,
its packaging, or in its advertising or marketing materials,
trade dress, trademarks, branding, or other related imagery
that imitates or replicates those of food brands or other
related products that are marketed to minors, including, but
not limited to, breakfast cereal, cookies, juice drinks, soft
drinks, frozen drinks, ice creams, sorbets, sherbets, and
frozen pops.
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frozen pops.
(4) By using, in the labeling or design of the product,
its packaging, or in its advertising or marketing materials,
trade dress, trademarks, branding, or other related imagery
that depicts or signifies characters or symbols that are known
to appeal primarily to minors, including, but not limited to,
superheroes, comic book characters, video game characters,
television show characters, movie characters, mythical
creatures, unicorns, or that otherwise incorporates related
imagery or scenery."
"§28-11-19
(a) Beginning January 1, 2020, a A county or
municipality may not issue a license to conduct business as a
specialty retailer of psychoactive hemp products or electronic
nicotine delivery systems if the retail business is located
within 1,000 feet of any of the following:
(1) A public or private K-12 school.
(2) A licensed child-care child care facility or
preschool.
(3) A church.
(4) A public library.
(5) A public playground.
(6) A public park.
(7) A youth center or other space used primarily for
youth-oriented activities.
(b) This section does not apply to a specialty retailer
of electronic nicotine delivery systems that obtained a
business license at a location prohibited in subsection (a)
prior to January 1, 2020, that has conducted business as a
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prior to January 1, 2020, that has conducted business as a
specialty retailer of electronic nicotine delivery systems at
that location for at least 18 consecutive months, and that
remains in the same location."
Section 3. Sections 28-11-1.1, 28-11-1.2, 28-11-7.1,
28-11-15.1, 28-11-16.1, 28-11-17.2, and 28-11-22 are added to
the Code of Alabama 1975, to read as follows:
§28-11-1.1
Nothing in this chapter shall prevent the governing
body of any county or municipality to ban or further regulate
where or when psychoactive hemp products may be sold within
the respective jurisdiction of the county or municipality.
§28-11-1.2
(a) The possession, sale, consumption, use, and
delivery of psychoactive hemp products within this state shall
be regulated and enforced by the board through the permitting
of distributors and retailers of psychoactive hemp products,
as provided in this chapter.
(b) The board may enter upon the premises of any holder
of a PHP permit to examine, or cause to be examined by any
agent or representative designated by the board for that
purpose, any books, papers, or other records and to secure
other information directly or indirectly relating to the
enforcement of this chapter.
(c) Any psychoactive hemp product found not complying
with this chapter shall be considered contraband and may be
seized by the board or its agents or by any law enforcement
officer of the State of Alabama without a warrant, and the
goods shall be delivered to, and disposed of by, the board.
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goods shall be delivered to, and disposed of by, the board.
(d) The board may revoke a PHP permit of any person
that purposefully falsifies any document or record required of
a PHP permit holder under this chapter.
(d) The board may adopt rules to administer this
chapter as it relates to psychoactive hemp products.
§28-11-7.1
(a) Any person who distributes or sells at retail
psychoactive hemp products within this state shall first
obtain a PHP permit from the board for each location of
distribution.
(b) Upon application, there shall be a one-time,
nonrefundable filing fee of one hundred dollars ($100), in
addition to a permit fee of five hundred dollars ($500), which
shall be renewed annually. A permit shall be valid only for
the location specified in the permit application.
(c) Fees collected under this section shall be
deposited in the State Treasury to the credit of the Alcoholic
Beverage Control Board to be used for operational costs of
enforcing this chapter and tobacco, nicotine, and psychoactive
hemp product prevention education.
(d) Any person who distributes or sells a psychoactive
hemp product without a permit shall be subject to Section 5.
§28-11-15.1
(a) Prior to initiating a sale of tobacco, tobacco
products, psychoactive hemp products, electronic nicotine
delivery systems, or alternative nicotine products to an
individual, an employee of the retailer must verify that the
individual is at least 21 years of age.
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individual is at least 21 years of age.
(b) Proof of age may be established only by one of the
following:
(1) A valid driver license of any state.
(2) A valid United States Uniformed Service
Identification.
(3) A valid passport.
(4) A valid identification issued by any agency of a
state for the purpose of identification, bearing a photograph
and date of birth of the individual in question.
(c) The board shall levy a civil penalty against any 
retailer who sells tobacco, tobacco products, psychoactive
hemp products, electronic nicotine delivery systems, or
alternative nicotine products to an individual under 21 years
of age as follows:
(1) One thousand five hundred dollars ($1,500) for a
first offense.
(2) Two thousand five hundred dollars ($2,500) for a
second offense.
(3) Five thousand dollars ($5,000) for a third offense.
(4) Revocation of all licenses and permits issued by
the board to the retailer for a fourth offense. In addition,
the board shall not issue any license or permit under this
title until the expiration of one year from the date the
license or licenses are revoked at the location where the
violation occurred.
(d) In addition to the penalties described in
subsection (c), a retailer who violates this section shall
notify the person from whom the retailer purchased the product
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notify the person from whom the retailer purchased the product
of the violation. For a third or fourth offense, the person
shall be vicariously liable and subject to the same penalties
as the retailer.
§28-11-16.1
(a) Every container of psychoactive hemp products must
bear a label that contains, at a minimum:
(1) The name, location, contact phone number, and
website of the manufacturer of the product;
(2) The name and address of the independent, accredited
laboratory used by the manufacturer to test the product;
(3) The batch number;
(4) The total number of milligrams of psychoactive
cannabinoids found in the container;
(5) The serving size, provided one gummy may not
contain more than one serving;
(6) The total number of milligrams of psychoactive
cannabinoids per serving, provided one serving may not contain
more than 10 milligrams of total psychoactive cannabinoids;
(7) The International Intoxicating Cannabinoid Product
Symbol (IICPS);
(8) A list of ingredients, including identification of
any major food allergens declared by name;
(9) A statement that the psychoactive hemp product does
not claim to diagnose, treat, cure, or prevent any disease and
has not been evaluated or approved by the U.S. Food and Drug
Administration (FDA), unless the product has been so approved;
and
(10) The following warnings:
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(10) The following warnings:
a. To keep the product out of reach of children;
b. That consumption of the product impairs person's
ability to drive and operate machinery;
c. For persons who are pregnant, nursing, or taking
medications, to consult their licensed healthcare professional
about safety before consuming the product;
d. That the product is not intended for sale to or use
by persons under 21 years of age;
e. That the psychoactive cannabinoids in the product
are derived from hemp.
(b) Containers of psychoactive hemp products may not:
(1) Bear the likeness or contain cartoon-like
characteristics of a real or fictional person, animal, or
fruit that appeals to children;
(2) Be modeled after a brand of products primarily
consumed by or marketed to children;
(3) Contain an ingredient, other than a psychoactive
cannabinoid, that is not approved by the United States Food
and Drug Administration for use in the product;
(4) Include a statement, artwork, or design that could
reasonably mislead an individual to believe that the package
contains anything other than a psychoactive hemp product; or
(5) Contain caffeine; provided, however, psychoactive
hemp products may contain naturally occurring caffeine derived
from ingredients such as coffee, tea, or other natural
sources, so long as the caffeine does not exceed levels deemed
safe by generally accepted dietary guidelines.
(c) Any psychoactive hemp products found not complying
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(c) Any psychoactive hemp products found not complying
with this section shall be considered contraband and may be
seized by the board or its agents or by any law enforcement
officer of the State of Alabama without a warrant, and the
goods shall be delivered to, and disposed of by, the board.
§28-11-17.2 
(a) Prior to making any sales within this state, the
PHP permit holder or the manufacturer of the psychoactive hemp
product shall submit representative samples of each batch of
the product to be sold within this state to an independent,
accredited laboratory for a certificate of analysis
certifying, at a minimum, that the product:
(1) Contains an amount of delta-8 tetrahydrocannabinol,
delta-9 tetrahydrocannabinol, delta-10 tetrahydrocannabinol,
or any other psychoactive cannabinoid not exceeding that which
is stated on the label of the product; and
(2) Does not contain more than trace amounts of any
mold, residual solvents or other catalysts, pesticides,
fertilizers, or heavy metals.
(b) A manufacturer must disclose all known information
regarding pesticides, fertilizers, solvents, or other foreign
materials applied to hemp or added to hemp during any
production or processing stages of any batch from which a
representative sample has been sent for testing, including any
catalysts used to create psychoactive cannabinoids. The
disclosure must be made to the laboratory performing testing
or sampling and, upon request, to the board. The disclosure
must include all information known to the manufacturer
regardless of whether the application or addition was made
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regardless of whether the application or addition was made
intentionally or accidentally, or by the manufacturer or any
other person.
§28-11-22
(a) An excise tax at the rate of 10 percent is levied
on the retail sales price of a psychoactive hemp product. The
tax is in addition to any other tax imposed by federal, state,
or local law.
(b) The tax levied by this section is intended to be
passed on to and borne by the purchaser of the psychoactive
hemp product. The tax is a debt from the purchaser to the
retailer until paid. The retailer is considered to act as a
trustee on behalf of the board when the retailer collects the
tax from the purchaser on a taxable transaction. The tax must
be stated and charged separately on any documentation provided
to the purchaser by the retailer at the time of the
transaction.
(c) The tax levied during the preceding month is due
and payable monthly to the board on the first day of each
month, and for the purpose of ascertaining the amount of tax
payable under this section, all retailers making taxable sales
on or before the twentieth day of each month shall transmit to
the board, upon forms prescribed by the board, returns showing
gross sales during the preceding month.
(d) The revenue generated from the tax shall be
distributed as follows:
(1) Forty percent to the State General Fund.
(2) Thirty-five percent shall be retained by the board
for regulatory and administrative purposes.
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for regulatory and administrative purposes.
(3) Fifteen percent divided equally between the board
and the Alabama State Law Enforcement Agency to be retained by
each for purposes of enforcement.
(4) Ten percent to the treasury of the municipality in
which the psychoactive hemp products were sold within its
corporate limits, or, where sold outside the corporate limits
of any municipality, to the treasury of the county in which
the psychoactive hemp products were sold for the purposes of
enforcement.
(e) The taxes levied pursuant to this section are
exclusive and shall be in lieu of all other and additional
taxes and licenses of the state, county, or municipality,
imposed on the sale of psychoactive hemp products; provided,
that nothing herein contained shall be construed to exempt the
retail sale of psychoactive hemp products from the levy of tax
on general retail sales by the state, county, or municipality
in the nature of, or in lieu of, a general sales tax.
Section 4. (a) It shall be unlawful for any person to
sell or offer for sale a psychoactive hemp product, as defined
in Section 28-11-2, Code of Alabama 1975, or a hemp beverage,
as defined in Section 28-12-3, Code of Alabama 1975, without
first obtaining the appropriate permit or license from the
Alcoholic Beverage Control Board. 
(b) Any person who sells or offers for sale a
psychoactive hemp product or hemp beverage in violation of
this section shall be subject to the following violations:
(1) For a first offense, the board shall levy a civil
penalty of five thousand dollars ($5,000).
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penalty of five thousand dollars ($5,000).
(2) For a second offense, the board shall levy a civil
penalty of seven thousand five hundred dollars ($7,500).
(3) For a third offense, the board shall levy a civil
penalty of ten thousand dollars ($10,000), the person shall be
guilty of a Class C felony, and the court shall order any
business licenses of the person to be revoked.
Section 5. Section 13A-12-214.4, Code of Alabama 1975,
is amended to read as follows:
"§13A-12-214.4
(a) As used in this section, " psychoactive cannabinoids
smokable hemp product " means any plant product or raw hemp
material that: (i) contains cannabinoids derived from or found
in hemp as defined in Section 2-8-381, including, but not
limited to, delta-8-tetrahydrocannabinol and
delta-10-tetrahydrocannabinol cannabidiol (CBD),
delta-8-tetrahydrocannabinol (delta-8 THC),
delta-9-tetrahydrocannabinol (delta-9 THC), and
delta-10-tetrahydrocannabinol (delta-10 THC), and (ii) is
marketed to be smoked, including, but not limited to, as hemp
cigarettes, hemp cigars, hemp joints, whole hemp buds, or
ground hemp flowers .
(b) Except as provided in Chapter 2A of Title 20,
psychoactive cannabinoids shall not be sold, distributed, or
marketed to, or possessed by an individual who is under 21
years of age.
(c) Any psychoactive cannabinoids lawfully sold in this
state must be located in an area in which individuals under
the age of 21 years are not permitted access.
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the age of 21 years are not permitted access.
(d) Any person who sells, distributes, or markets
psychoactive cannabinoids to individuals under 21 years of age
shall be guilty of a Class B misdemeanor.
(e) Any individual under 21 years of age who is in
possession of psychoactive cannabinoids shall be issued a
citation similar to a uniform nontraffic citation and shall be
fined not less than fifty dollars ($50) nor more than two
hundred dollars ($200) for each violation or community service
in equal value of the fine and shall be assessed no other
court costs or fees. In addition, on a third or subsequent
conviction, including convictions in district court or
municipal court, the individual shall be issued a citation
similar to a uniform nontraffic citation and shall be fined
four hundred dollars ($400) for each violation or community
service in equal value of the fine.
(f) Any psychoactive cannabinoids sold in this state
shall be packaged in child-resistant containers
(b) Except as otherwise authorized by law, a person
commits the crime of unlawful possession of a smokable hemp
product in the first degree if:
(1) He or she possesses smokable hemp products for
other than personal use; or
(2) He or she possesses smokable hemp products for his
or her personal use only after having been previously
convicted of: (i) unlawful possession of smokable hemp
products in the second degree; (ii) unlawful possession of
marijuana in the second degree; or (iii) unlawful possession
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marijuana in the second degree; or (iii) unlawful possession
of smokable hemp products for his or her personal use only.
(c) Unlawful possession of smokable hemp products in
the first degree pursuant to subdivision (b)(1) is a Class C
felony.
(d) Unlawful possession of smokable hemp products in
the first degree pursuant to subdivision (b)(2) is a Class D
felony."
Section 6. Section 13A-12-214.5 is added to the Code of
Alabama 1975, to read as follows:
§13A-12-214.5
(a) A person commits the crime of unlawful possession
of smokable hemp products in the second degree if, except as
otherwise authorized, he or she possesses smokable hemp
products for his or her personal use only.
(b) Unlawful possession of smokable hemp products in
the second degree is a Class A misdemeanor.
Section 7. If any provision of Section 1 or Section 2,
or its application to any person or circumstance, is
determined by a court to be invalid or unconstitutional, that
provision shall be stricken and the remaining provisions shall
be construed in accordance with the intent of the Legislature
to further limit rather than expand commerce in hemp
beverages.
Section 8. This act shall become effective on July 1,
2025, except Section 5 shall become effective on January 1,
2026.
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