Reference is to Printer's Date 2/14/19-H.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Title 46 of the 1976 Code is amended by adding:
Section 46-56-10. This chapter must be known and may be cited as the 'South Carolina Hemp Farming Act'.
      Section 46-56-20.      The 
General Assembly finds that hemp is a viable agricultural crop 
in South Carolina. This chapter is intended to:
      (1)      promote the 
cultivation and processing of hemp and to open new commercial 
markets for farmers and businesses through the sale of hemp 
products; 
      (2)      promote the 
expansion of this State's hemp industry to the maximum extent 
permitted by law, allowing farmers and businesses to cultivate, 
handle, and process industrial hemp and sell industrial hemp 
products for commercial purposes;
      (3)      encourage and 
empower research into hemp growth and hemp products at state 
institutions of higher education and in the private sector; 
and
      (4)      move this state and 
its citizens to the forefront of the hemp industry.
      Section 46-56-30. As used in this chapter: 
      (1)      'Cannabidiol' or 
'CBD' means the compound by the same name derived from the hemp 
variety of the Cannabis sativa L. plant.
      (2)      'Commercial sales' 
mean the sale of hemp products in the stream of commerce, at 
retail, wholesale and online.
      (3)      'Commissioner' is 
the Commissioner of the South Carolina Department of 
Agriculture.
      (4)      'Cultivating' means 
planting, watering, growing, and harvesting a plant or crop.
      (5)      'Department' means 
the South Carolina Department of Agriculture.
      (6)      'Federally defined 
THC level for hemp' means a delta-9 THC concentration of not 
more than 0.3 percent on a dry weight basis, or the THC 
concentration for hemp defined in 7 U.S.C. sec 5940, whichever 
is greater.
      (7)      'Handling' means 
possessing or storing hemp for any period of time. Handling 
includes possessing or storing hemp in a vehicle for any period 
of time other than during its actual transport from the premises 
of a licensed person to cultivate or process industrial hemp to 
the premises of another licensed person. Handling does not mean 
possessing or storing finished hemp products.
      (8)      'Hemp' means the 
plant Cannabis sativa L. and any part of that plant, including 
the non-sterilized seeds thereof and all derivatives, extracts, 
cannabinoids, isomers, acids, salts, and salts of isomers, 
whether growing or not, with the federally defined THC level for 
hemp. Hemp is considered an agricultural commodity. The term 
also includes all industrial grown hemp and hemp products.  
      (9)      'Hemp products' 
means all products with the federally defined THC level for hemp 
derived from, or made by, processing hemp plants or hemp plant 
parts, that are prepared in a form available for commercial 
sale, including, but not limited to cosmetics, personal care 
products, food intended for animal or human consumption, cloth, 
cordage, fiber, fuel, paint, paper, particleboard, plastics, and 
any product containing one or more hemp-derived cannabinoids, 
such as cannabidiol. Unprocessed or raw plant material, 
including non-sterilized hemp seeds is not considered a hemp 
product. 
      (10)      'Licensee' means 
an individual or business entity possessing a license issued by 
the department under the authority of this chapter to grow, 
handle, cultivate, or process hemp.
      (11)      'Marijuana,' has 
the same meaning as in Section 44-53-110 and does not include 
hemp or hemp products.
      (12)      'Processing' means 
converting an agricultural commodity into a marketable form.
      (13)      'State plan' means 
the plan submitted by the department and approved by the 
Secretary of the United States Department of Agriculture under 
which the department regulates hemp production.
      (14)      'THC' means 
tetrahydrocannabinol. The THC found in hemp is not considered to 
be THC in qualifying as a controlled substance.
      (15)      'University' means 
any public institution of higher education offering a four-year 
baccalaureate degree or private institution of higher education 
accredited by the Southern Association of Colleges and Schools 
offering a four-year baccalaureate degree throughout the State.
      Section 46-56-40.     
 (A)(1)      There is created the South 
Carolina Hemp Program to enable the department, its licensees, 
and affiliated universities to promote the cultivation and 
processing of hemp and the commercial sales of hemp products. 
The department, its licensees, the licensees' agents, and 
affiliated universities may cultivate, handle, and process hemp 
in this State and may transport hemp within and outside of this 
State.
            (2)     
 It is lawful to possess, transport, sell, and purchase 
legally produced hemp products in this State. Nothing in this 
chapter authorizes a person to violate a federal or state law or 
regulation. 
      (B)      A person only may 
cultivate, handle, or process hemp in this State with a hemp 
license issued by the department under the state plan. A person 
seeking to cultivate hemp: 
            (1)     
 provide to the department the legal description and global 
positioning coordinates sufficient for locating the fields or 
greenhouses used to cultivate hemp; 
            (2)     
 provide written consent allowing representatives of the 
department, South Carolina Law Enforcement Division (SLED), and 
local law enforcement, to enter onto all premises where hemp is 
cultivated, processed, or stored for the purposes of conducting 
physical inspections, obtaining samples of hemp or hemp 
products, or otherwise ensuring compliance with the requirements 
of applicable laws and regulations; 
            (3)     
 subject hemp to the testing procedure set forth in the 
state plan using post-decarboxylation or other similarly 
reliable methods to test the delta-9 THC concentration levels of 
hemp produced in the State; and
            (4)     
 undergo a state criminal records check, supported by 
fingerprints, by SLED and a national criminal records check, 
supported by fingerprints, by the Federal Bureau of 
Investigation.  The results of these records checks must be 
reported to the department.  SLED is authorized to retain the 
fingerprints for certification purposes and for notification to 
the department regarding criminal charges.  A person who has 
been convicted of a felony relating to a controlled substance 
under state or federal law in the ten years prior to the 
submission of the application is not eligible to:
            (a)     
 obtain a license or participate in the program established 
under this section or the Agriculture Improvement Act of 2018; 
or 
            (b)     
 produce hemp under a regulation or guideline issued under 
the Agriculture Improvement Act of 2018.
      (C)(1)      A licensee is 
required to conduct a corrective action plan if the commissioner 
determines that the licensee has negligently violated applicable 
state laws, regulations, or the state plan by:     
       
            (a)     
 failing to provide a legal description and global 
positioning coordinates of land on which hemp is cultivated; 
            (b)     
 failing to obtain a proper license or other required 
authorization from the commissioner; or
            (c)     
 producing Cannabis sativa L. with more than the federally 
defined THC level for hemp.
            (2)     
 A corrective action plan should include a:
            (a)     
 reasonable date by which the licensee must correct the 
violation; and 
            (b)     
 requirement that the licensee periodically report to the 
commissioner on the compliance of the hemp producer with the 
provisions of this chapter and the state plan for a period of 
not less than the next two calendar years. 
            (3)     
 A licensee that negligently violates state laws or 
regulations may not be subject to criminal or civil liability 
other than the enforcement action provided in this section. 
            (4)     
 A licensee that negligently violates the state plan three 
times within a five-year period is ineligible to produce hemp 
for a period of five years beginning on the date of the third 
violation. 
            (5)     
 If the commissioner determines that a licensee violated a 
state law with a culpable mental state greater than negligence, 
the commissioner must immediately report the hemp producer to 
the United States Attorney General and the South Carolina 
Attorney General. 
      Section 46-56-50. The department may charge 
a reasonable application fee, license fee, and renewal of 
license fee that must be remitted to administer the South 
Carolina Hemp Program. Licensing fees for:
            (1)     
 hemp growers and handlers may not exceed one thousand 
dollars each year per registrant; and
            (2)     
 processors may not exceed the cost calculated by the 
department to cover the costs incurred under the processor 
licensing program. 
      Section 46-56-60.      (A) 
     Within sixty days of the effective date of 
this chapter, the commissioner shall submit a state plan to the 
Secretary of the United States Department of Agriculture 
regulating hemp production in South Carolina. The plan shall 
include a:
            (1)     
 practice to maintain relevant information relating to land 
on which hemp is produced including a legal description of the 
land for a period of no less than three years;  
            (2)     
 procedure for testing delta-9 THC concentration levels on 
hemp produced in this State using post-decarboxylation or a 
similarly reliable method; 
            (3)     
 procedure for the effective disposal of products that are 
in violation of this chapter; and 
            (4)     
 procedure to comply with the enforcement of this chapter. 
      (B) If the secretary disapproves the state 
plan, the commissioner, in consultation with the Governor and 
Attorney General, shall submit an amended state plan. 
Section 46-56-70. The South Carolina Hemp Program does not apply to the possession, handling, transport, or sale of hemp products and extracts, including those containing hemp-derived cannabinoids such as CBD.
Section 46-56-80. A person who manufactures, distributes, dispenses, delivers, purchases, aids, abets, attempts, or conspires to manufacture, distribute, dispense, deliver, or purchase, or possesses with the intent to manufacture, distribute, dispense, deliver, or purchase marijuana, in a manner intended to disguise the marijuana due to its proximity to industrial hemp, is guilty of a misdemeanor and, upon conviction, must be imprisoned not more than three years or fined not more than three thousand dollars, or both. The penalty provided for in this section may be imposed in addition to any other penalties provided by law."
SECTION 2. Chapter 55, Title 46 of the 1976 Code is repealed.
SECTION 3. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.