The Dothan City Commission approved an ordinance (2025-352) to add Chapter 28 to the city code to regulate and license consumable hemp products and later adopted Commission Policy No. 18 to establish licensing procedures.

City staff explained the change responds to a recent state legislative session that will impose a 10% tax on hemp products and set limits on concentrations and sale locations. "State legislature passed... they will be putting a 10% tax on hemp products and they have different regulations as to where they can be sold and what type of concentrations can be sold," the city manager said. The proposed ordinance creates a local licensing mechanism modeled on processes used for alcohol licensing through the ABC board.

Staff told commissioners the ordinance includes grandfathering provisions for existing businesses; city staff said only one currently known seller would not meet setback requirements and would need to relocate or seek exceptions. Commissioners clarified that the city is implementing licensing and procedures required by the new state framework and is not the originator of the underlying regulatory change. "This is not something that we control. This is at the state level," one commissioner said.

The commission approved immediate consideration of the ordinance and then approved both the ordinance and the related Policy No. 18 by voice votes. The adopted policy sets out licensing procedures for implementation of the ordinance.