The Alabama Alcohol Beverage Control (ABC) Board Thursday approved an emergency, temporary rule regulating the sale of consumable hemp products, over the opposition of a state representative who sponsored the law leading to the regulation.
The rule creates the Responsible Consumable Hemp Product Program and establishes warnings and fees for violations of the rule.
David Peacock, chief general counsel for the ABC Board, told board members that on first violation of the rule, retailers would receive a warning, and distributors would be fined $1,000 on first offense for selling a product that is not approved by the board.
“If the distributor were to purchase a product from a supplier that was violative a second time, they would no longer be able to use that supplier unless they provide to us a corrective action plan that we approve,” Peacock said.
Peacock did not say what products would be prohibited or allowed, but that there would be a list of products published on the ABC Board’s website.
Peacock said the rule is needed in accordance with HB 445, sponsored by Rep. Andy Whitt, R-Harvest, which passed the Legislature this spring. The law, which goes into effect on January 1, requires testing and labeling for all consumable hemp products and caps THC at 10 milligrams per individually wrapped product and 40 milligrams per package.
It also requires the ABC Board to license retailers of these products; restrict retail establishments selling hemp products and impose an excise tax on consumable hemp products. In October, the ABC Board passed a rule to implement the law.
The emergency rule passed 2-1 with board member John Knight, a former state representative, voting against it.
“I’m opposed to it only because I have a problem with the way it was done,” Knight said.
Whitt, who did not attend Thursday’s meeting, sent the board a letter Wednesday expressing his opposition to the emergency rule.
“In addition to my concerns about the non-compliance with statutory guidelines about emergency rules, there are other areas of the proposal that bother me,” the letter said. “Nowhere in the authorizing legislation does it provide for a Responsible Consumable Hemp Product Program, such as that legislatively authorized by Alabama Code Section 28-10-4 in connection with alcoholic beverages. Therefore, it seems that this proposed regulation goes beyond statutory authority.”
Whitt said in an interview Thursday afternoon that he had a great relationship with the board but reiterated his opposition to the rule.
“I think when it comes down to the emergency rulings, it serves a different purpose than maybe what’s transparent to begin with, maybe a self-serving group,” he said. “I want to make sure that it doesn’t and that the legislative process works.”
Curtis Stewart, the board’s administrator, explained that the rule’s intention is to protect retailers.
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