The government over-regulates the small business sector, which makes them more difficult to operate. It also fails to implement real safeguards that keep products like hemp away from children.
By Alander Rocha, Alabama Reflector
After a heated public hearing, a Senate committee rejected Wednesday a bill that would regulate hemp drinks and products.
SB 237 sponsored by Sen. Tim Melson of Florence, R, creates regulations similar to the ones for tobacco and alcohol on hemp-based products. It requires licenses from manufacturers and retailers, while also imposing an excise rate of 10%. The bill will also restrict the sales of hemp smokable products to people 21 or older and ban them.
The aim is not to put people out of business or stop anyone from starting a new one. [of business]Melson added. “We are just trying regulate it, and making sure it is put somewhere that prevents it from reaching students.
Bill would distinguish “hemp products” (defined in bill as “psychoactive products”) from hemp beverages. This bill also requires licenses for the manufacture, distribution, and sale of cannabis drinks that are consumed off-site.
The Department of Revenue would have maintained a directory of hemp products that was similar to the tobacco products.
Melson said that he believes the bill will prevent children from consuming hemp products. Melson also stated there were reports linking their consumption to emergency rooms.
Melson told one of the speakers, “I believe you are doing things the right way by going to your house.” Melson stated, “Someone is selling products that are not made correctly, and this leads to children suffering seizures, going to hospital, and taking up space in ERs where they could have been treating heart attacks, or real patients. This drives up costs for all of us.”
Representatives of the industry reacted, asserting that the bill was unjust and would damage their business.
Molly Cole is a lobbyist with the Alabama Hemp and Vape Association. She said that the bill would “create more problems than solve” and asked legislators to look at alternative legislation which mirrors the policies of other states.
She said, “The law overregulates the small business, which makes it difficult for them to run, and fails to provide real protections to prevent hemp products from reaching minors.” Yes, regulation is needed, but the model should mirror policies that have been successful in other states.
Cole stated that the law of 21 and over would keep minors out of hemp, while still allowing Alabama’s businesses to compete. She suggested that the Alabama Department of Agriculture and Industries be responsible for regulation, as hemp is an agricultural product and not an intoxicating drug.
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 and Carmelo Parasiliti of Green Acres Organic Pharms, based in Florence, had a heated exchange over product testing.
The Senator repeatedly claimed that the market is not properly regulated and there’s a concern about hemp products with incorrect labels and potential harm being sold.
You are saying they complete the analysis? Melson asked Parasiliti. He replied, “Yes sir.”
I think that you should be in favor of this bill. Melson stated that “you have something that is pure, legit and all that.” Melson then engaged Parasiliti in a long exchange on the original intention of the Farm Bill, which legalized certain cannabis products classified as hemp.
Melson suggests that after lengthy discussion, a bill of a similar nature could be passed by the House.
Melson, after Melson’s announcement that the Bill failed with a 4-4 voting result said: “We will be back when the House version is ready.”
Rep. Andy Whitt, R-Harvest, has introduced HB 445 in the House, but it has yet to be assigned to a committee.
The original publication of this story is Alabama Reflector.
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Brendan Cleak provided the photo.