How To Start CBD Business in Alabama

CBD business requirements differ from state to state and even between municipalities. Some state has an open application system for business and gives many licenses while other states are more strict in rules and regulations with a limited grant of licenses. Even when planning for a CBD business in a specific state you must also have to follow rules of residency and background checks.

With the emergence of Farm bill 2018, the consumers of CBD in Alabama have general access to the CBD products as its legality is outlined in the Farm Bill. State rules of CBD only allow licensed growers and processors to sell their hemp-derived CBD products within the state. 

In this article, we will cover the necessary information which will be helpful for you to start a CBD business in Alabama.

CBD Laws in Alabama

In 2014 SB 174 called Carly's Law was passed which allows patients of epilepsy to get the CBD product and patients can get the prescription for use and possession only through the University of Alabama. In 2016 House Bill 61 was signed called Leni’s Law. This law gave wide access to CBD products for seizure patients but still, CBD was strictly regulated and the FDA has only approved one CBD drug for seizer that is Epidolex. Also in 2016 Alabama Industrial Hemp Research Program Act was passed. According to this act, a task of licensing and inspection for industrial hemp was given to the Alabama Department of Agriculture and Industries. This department in 2018 finalized the regulations and with the Farm bill in 2018 CBD become legalized only if products contain THC less than 0.3%.

Alabama state has its regulation align with the Farm bill in term of the legal status of CBD products that 

  • It must be sold by a licenses vender
  • It should not contain THC more than 0.3%
  • Low THC CBD products are available for purchase and sale in Alabama

SB  225 in 2019 was signed and it redefined the CBD to match with the definitions of CBD and Alabama pharmacies was given go-ahead to sell CBD products. FDA collaborated with the Alabama Department of Agriculture and Industries for devising regulations in accordance with Farm bill 2018 but the hemp program of Alabama remains in effect. CBD is legal in Alabama but growers and processors must get the permit before dealing hemp.

Business as a Grower of CBD

CBD is legal in Alabama but through licensed grower and processors so if you planning to start a CBD business in Alabama as a grower and then you need to be eligible and legally market your product. Alabama Department of Agriculture and Industries provides the guidelines and instructions to apply for CBD grower licenses. 

  • The fee for the application is $200 which is non-refundable and is the same even if you are applying for multiple sites with in the same application. 
  • Complete filling of application is necessary otherwise you may face denial.
  • Licenses are either for individual or business entity
  • The applicant of the license must submit the grow plan like hemp production, growing techniques, processing, methods, and yields long with equipment used
  • Before approvals, you must be aware that when applying for a license the law enforcement agencies will conduct your background check
  • The applicant is also prohibited from some activities when submitting the growth plan and these activities are

Not growing industrial hemp which contains less than 0.3% of THC.

Processing or growing of industrial hemp which is not mentioned in the license application agreement.

Growing industrial hemp for residential use, near to school, churches, recreational spot, and on un-owned property.

Business as a Processor of CBD

CBD business in Alabama has various categories that you can select according to your business niche among which is the processor of CBD. The authority that deals with processor license application is the Alabama Department of Agriculture and Industries providing the necessary detailing for applying.

  • The fee is $200 which non-refundable.
  • If the application is approved then you be subjected to further fees as well that's why plan accordingly when applying.
  • The application must be completed in every aspect and detail as missing information will be the sole responsibility of the applicant and many results in denial.
  • The application submission for the individuals and business entity.
  • The applicant must submit the processing or handling of the CBD plan.
  • You must be ready for background checks of criminal records.

The CBD business in Alabama has taken a new law. The CBD regulations of Alabama inspires the business owners to introduce more CBD products in the market. As the cannabis market is blooming constantly worldwide and the US has also legalized its use. This legalization has open various opportunities for businesses in different states of the US including Alabama but of course with state own regulations.

Author - Noah Nicholls

Noah Nicholls is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for CBD-Boxes. Noah Nicholls writing relates to a range of subjects such as CBD and health.


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