“It over-regulates small businesses, making it harder for them to operate, while failing to put real protections in place to keep hemp products away from minors.”
By Alander Rocha, Alabama Reflector
A Senate committee Wednesday rejected a bill aimed at regulating hemp beverages and products following a tense public hearing.
SB 237, sponsored by Sen. Tim Melson, R-Florence, would create regulations on consumable hemp products similar to those for alcohol and tobacco, requiring licenses for manufacturers and retailers while imposing a 10 percent excise tax. The bill would also ban smokable hemp products and restrict sales to individuals 21 and older.
“It’s not trying to prohibit anybody from being in business or put them out [of business],” Melson said. “We’re just trying to regulate it and make sure that it’s put in a place that will prevent it from getting to students.”
The bill would have distinguished “hemp beverages” from other hemp products, defined in the bill as “psychoactive hemp products.” It would also require licenses to manufacture, distribute, or sell cannabis drinks to be consumed on or off-site.
Other hemp products would have been regulated similarly to tobacco, with products being placed on a state directory maintained by the Department of Revenue.
Melson told the committee that the bill would keep children from accessing hemp products, saying there are reports of emergency room visits linked to their consumption.
“I honestly believe, going to your place, you’re doing it the right way,” Melson said to one of the public speakers. “But somebody is selling a product that’s not done the right way, and having children having seizures and going to the hospital and tying up ERs that could be taking care of heart attacks or other real patients, driving costs up for the rest us,” Melson said.
Industry representatives pushed back, arguing the bill would harm their businesses while failing to effectively regulate the market.
Molly Cole, a lobbyist for the Alabama Hemp and Vape Association, said the bill “creates more problems than it solves” and asked lawmakers to consider alternative legislation that mirrors policies in other states.
“It over-regulates small businesses, making it harder for them to operate, while failing to put real protections in place to keep hemp products away from minors,” she said. “So yes, we need regulation, but we need a 21-plus model that will mirror successful policies in other states.”
Cole said that a 21-plus law would prevent minors from accessing hemp while allowing Alabama businesses to compete. She also suggested shifting regulation to the Alabama Department of Agriculture and Industries, recognizing hemp as an agricultural commodity rather than an intoxicating substance.
Although industrial hemp is currently regulated by the Alabama Department of Agriculture and Industries, a law passed in 2024 shifted licensing powers for medical cannabis cultivators from the Department of Agriculture and Industries to the Alabama Medical Cannabis Commission.
Melson entered into a tense exchange with Carmelo Parasiliti, founder and CEO of Green Acres Organic Pharms in Florence, over the issue of product safety testing.
The senator repeatedly said there is a lack of oversight in the current market and concerns about mislabeled and potentially harmful hemp products being sold without proper testing.
“You’re saying that they do complete analysis?” Melson asked Parasiliti, to which he responded, “Yes, sir.”
“I think you ought to be for this bill. You got something you could promote and say that you got a product that’s legit, pure and everything,” Melson said. Melson and Parasiliti then dove into a lengthy exchange about the original intent of the Farm Bill that legalized the sale of certain cannabis products that are classified as “hemp.”
After a lengthy debate, the bill failed on a tied vote, but Melson suggested a similar bill could through the House.
“We will see you with the House version when it comes up,” Melson said after announcing the bill failed on a 4-4 vote.
Rep. Andy Whitt, R-Harvest, has introduced HB 445 in the House, but it has yet to be assigned to a committee.
This story was first published by Alabama Reflector.
Photo courtesy of Brendan Cleak.
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