Federal and state hemp regulations continue to evolve rapidly, affecting both beverage makers and consumers. This March update covers critical changes in Alabama, Chicago’s regulatory status, and federal developments that may impact your hemp beverage business.
Alabama hemp regulations: major changes requiring immediate action
Alabama’s HB 445, effective January 1, 2026, fundamentally restructures the state’s hemp market. If you’re selling or manufacturing hemp beverages in Alabama, you need to reformulate and reorganize your supply chain now.
What changed
The Alabama Alcoholic Beverage Control (ABC) Board now oversees all consumable hemp products. This shift brings hemp regulation under alcohol-style controls with strict licensing requirements.
Key restrictions:
- All smokable hemp products are banned
- Consumable cannabinoids cannot be sold to minors
- Only ABC-licensed retailers can sell hemp beverages and other consumable products
Licensing requirements
Three license types are available:
- Consumable Hemp Product Retail Food Store License
- Consumable Hemp Products Pharmacy License
- Consumable Hemp Products Specialty Retailer License
Action items: Review the Alabama ABC’s Pre-application Checklist and submit the required Pre-application form for approval before scheduling your licensing appointment.
Chicago ordinance veto upheld
On February 18, 2026, Chicago’s city council failed to override Mayor Johnson’s veto of an intoxicating hemp ordinance. The veto stands.
What this means
The proposed restrictions won’t take effect. The ordinance would have banned most intoxicating hemp products while carving out exceptions for beverages, additives (up to 10mg per serving), topicals, and animal products. It also would have allowed bars and restaurants to sell hemp beverages and liquid/powder additives for mixing into drinks.
Chicago’s regulatory landscape remains unchanged for now.
Proposed Farm Bill: status and implications
A partisan Farm Bill draft is moving through Congress. According to Farm Progress and Hanford Sentinel, the bill:
- Leaves existing THC bans in place – no relief for intoxicating hemp products
- Establishes federal hemp testing protocols and pesticide labeling authority
- Is expected not to pass in its current form
- This bill won’t address the state-by-state patchwork of intoxicating cannabinoid regulations that beverage makers currently navigate.
FDA misses cannabinoid list deadline
The FDA failed to meet its February deadline to publish a comprehensive cannabinoid list and define “hemp containers” as required. Marijuana Moment reports that industry stakeholders are criticizing the delay.
The lack of federal clarity continues to complicate product development and compliance planning.
Medicare CBD coverage finalized
The Centers for Medicare and Medicaid Services (CMS) finalized rules for federal health insurance coverage of CBD through a pilot program. According to Marijuana Moment, this rule was completed weeks ago but is just now being publicly acknowledged.
This represents a significant shift in federal recognition of CBD’s therapeutic potential, though practical implementation details remain unclear.
