Alabama Hemp Retailers Sue Over New Law

Four hemp retailers in Alabama have initiated legal action against Governor Kay Ivey and Attorney General Steve Marshall. They contend that the state’s recently implemented hemp law essentially criminalizes advertising for their businesses and infringes upon constitutional rights, arguing that it was meant to serve as a regulatory measure.

The lawsuit, filed on June 27 in Montgomery County Circuit Court, highlights various aspects of the hemp industry, including products like hemp-derived edibles and their accompanying regulations. This legal challenge is aimed at preventing the enforcement of House Bill 445, which is set to come into effect on July 1.

The plaintiffs assert that the law extends beyond mere regulation, effectively “encouraging the entire industry overnight.”

House Bill 445 completely prohibits smoking and vaporizing hemp products. For edibles containing hemp-derived THC, there are strict limitations: no more than 10 milligrams per serving and 40 milligrams per package, all of which must be packaged appropriately for children and sold only by licensed sellers. Offenses can result in Class C felony charges, leading to a maximum penalty of 10 years in prison and a fine of $15,000.

The complaint accuses Ivey and Marshall, in their official capacities, of violating due process, equal protections, and economic freedoms laid out in the Alabama Constitution. It points out that the ambiguous terminology in the law grants regulators excessive power, disrupts legitimate business transactions, and retroactively categorizes legal products as contraband without sufficient justification or warning.

One plaintiff remarked that “the law is not about public safety and is not about politics.”

Supporters of HB 445 claim it aims to “protect children” and apply “common sense control” over a rapidly expanding and inadequately regulated industry. Lawmakers like Andy Whitt and Senator April Weaver have put forth this framework, which would establish a licensing system under the Alabama Alcohol Beverage Control Board. This system mandates lab testing for all consumable hemp products, enforces strict packaging guidelines, and requires tracking from seed to sale.

Proponents of the law argue its necessity in curbing the rise of psychoactive hemp products, especially Delta-8 and Delta-10 THC, which mimic marijuana’s effects yet had been legal under previous laws.

However, for many Alabama hemp entrepreneurs, this law feels like a matter of survival and not just regulation. A plaintiff based in Montgomery expressed, “this is a complete closure of the framework-wrapped industry,” emphasizing their compliance with regulations before feeling blindsided by the new law.

Despite petitions signed by over 800 residents, including veterans and medical patients who depend on hemp products, Ivey signed the bill into law. Her office has refrained from commenting on the ongoing lawsuit, while Marshall has been vocal about actively enforcing the new regulations.

A memo from Marshall’s office indicated that starting July 1, possessing or selling smokable hemp products would be classified as a felony. The enforcement responsibility falls under his jurisdiction alongside local district attorneys.

Critics highlight that this legislation disproportionately impacts small businesses and minority entrepreneurs, many of whom entered the hemp industry in good faith under regulations established after the 2018 Federal Farm Bill permitted hemp with less than 0.3% Delta-9 THC.

Birmingham Mayor Randall Woodfin criticized the bill as a step backward, describing it as “criminalizing economic opportunities in underserved communities” and forcing consumers back to an unregulated black market.

As tensions escalate, Weaver is collaborating on Senate Bill 1 for future special sessions, which would restrict all hemp-derived psychoactive products to authorized pharmacies, entirely removing them from retail environments. This bill also mandates tracking for hemp grown in Alabama and state-sourced seeds, leading many in the industry to view it as an indirect ban benefiting larger pharmaceutical companies.

An industry advocate commented, “This isn’t about children; it’s about control. They want to eliminate independent hemp shops and consolidate the market under politically favored operators.”

The plaintiffs’ lawsuit could represent the industry’s last chance to avert possibly devastating changes. As of June 30, no hearing date has been set regarding the emergency motion for the plaintiff’s restraining order. Nonetheless, with the law coming into effect on July 1, the urgency for Alabama hemp retailers has surely escalated.

Update: Montgomery County Circuit Judge James Anderson is scheduled to hear requests for a temporary restraining order regarding the new hemp laws today at 2 p.m.