SB 66 — Relating to cannabis; to prohibit the sale, distribution, marketing, or possession of psychoactive cannabinoids found in hemp for certain age groups; to levy a five percent tax on the gross proceeds of products containing psychoactive cannabinoids sold at retail; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.

SB66 ENGROSSEDENROLLED VMC4VP-2VMC4VP-3 By Senators Melson, Albritton, Sessions RFD:

21-Mar-23 2023 Regular Session Page 0 SB66 EngrossedEnrolled 2Enrolled, 4An 6Act, A3 BILL TO BE ENTITLED AN ACT Relating to cannabis;

to prohibit the sale, distribution, marketing, orand possession of psychoactive cannabinoids found in hemp forto certainminors; age groups;

to levyprovide anfor eightviolations; percent tax on the gross proceeds of products containing psychoactive cannabinoids sold at retail;

to distribute the gross proceeds of the tax to the State General Fund;

(a) ExceptAs asused provided in Chapterthis 2Asection, of"psychoactive Titlecannabinoids" 20,means Code of Alabama 1975, psychoactive cannabinoids derived from or found in hemp as defined in Section 2-8-381, Code of Alabama 1975, including, but not limited to, delta-8-tetrahydrocannabinol and delta-10-tetrahydrocannabinol,delta-10-tetrahydrocannabinol. shall not be sold, distributed, marketed to, or possessed by an individual who is under 21 years of age.

Page(b) 1Except SB66as Engrossedprovided (b)in AChapter violation2A of subsectionTitle (a)20, Code of Alabama 1975, psychoactive cannabinoids shall not be asold, Classdistributed, Bor misdemeanor.marketed to, or possessed by an individual who is under 21 years of age.

(c) Any individualpsychoactive undercannabinoids thelawfully agesold ofin 21this yearsstate violatingmust subsection (a), shall be issuedlocated ain citationan similararea toin awhich uniformindividuals nontrafficunder citationthe andage shallof be21 finedyears are not lesspermitted thanaccess. fifty dollars ($50) nor more than two hundred dollars ($200) for each violation, and shall be assessed no other court costs or fees.

In(d) addition,Any onperson awho thirdsells, ordistributes, subsequent conviction, including convictions in district court or municipalmarkets court,psychoactive thecannabinoids court shall forward a record of the applicable convictions to theindividuals Alabamaunder State21 Lawyears Enforcement Agency, and the Secretary of theage Alabama State Law Enforcement Agency shall suspendbe theguilty driving privileges or driver license of the individual for a periodClass ofB notmisdemeanor. less than three months nor more than six months.

(e) Any individual under 21 years of age who is in possession of psychoactive cannabinoids shall be issued a Page 1 SB66 Enrolled citation similar to a uniform nontraffic citation and shall be fined not less than fifty dollars ($50) nor more than two hundred dollars ($200) for each violation or community service in equal value of the fine and shall be assessed no other court costs or fees.

In addition, on a third or subsequent conviction, including convictions in district court or municipal court, the individual shall be issued a citation similar to a uniform nontraffic citation and shall be fined four hundred dollars ($400) for each violation or community service in equal value of the fine.

(f) Any psychoactive cannabinoids sold in this state shall be packaged in child-resistant containers.

(a) Commencing October 1, 2024, there is levied, in addition to all other taxes of every kind now imposed by law, and shall be collected and remitted in accordance with Article 1, commencing with Section 40-23-1, of Chapter 23 of Title 40, Code of Alabama 1975, a tax on the gross proceeds of the sales of any product containing psychoactive cannabinoids when sold at retail in this state at the rate of eight percent of the gross proceeds of the sales.

The taxes generated by this section shall be deposited to the credit of the State General Fund.

For purposes of this section, "psychoactive cannabinoids" means psychoactive cannabinoids derived from or found in hemp as defined in Section 2-8-381, Code of Alabama 1975, including, but not limited to, delta-8-tetrahydrocannabinol and Page 2 SB66 Engrossed delta-10-tetrahydrocannabinol, but does not include medical cannabis regulated under Chapter 2A of Title 20, Code of Alabama 1975.

(b) The producer value added agricultural product exemption provided in Sections 40-23-1 and 40-23-4, as last amended by Act 2022-291 of the 2022 Regular Session, Code of Alabama 1975, shall not apply to any product containing psychoactive cannabinoids.

(c) The tax proceeds collected pursuant to subsection (a), shall be distributed in the same manner prescribed by Section 40-23-35, Code of Alabama 1975.

Section 3.

Section 4.3.

This act shall become effective on the first day of the third month,month following its passage and approval by the GovernorGovernor, or its otherwise becoming law.

Page 32 SB66 EngrossedEnrolled Senate________________________________________________ ReadPresident forand thePresiding firstOfficer timeof andthe referredSenate ................21-Mar-23________________________________________________ toSpeaker of the House of Representatives SB66 Senate committee04-Apr-23 onI Healthcarehereby Readcertify forthat the secondwithin timeAct andoriginated placedin ................22-Mar-23and onpassed the calendar:Senate, as amended.

0 amendments Read for the third time and passed ................04-Apr-23 as amended Yeas 29 Nays 1 Abstains 0 Patrick Harris, Secretary.

PageHouse 4of Representatives Amended and passed:

02-May-23 Senate concurred in House amendment 03-May-23 By:

Senator Melson Page 3