Rep. FORD proposes the following amendment (LC-4759.VR0001H):

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

SECTION 1. Title 46 of the S.C. Code is amended by adding:

CHAPTER 59

Hemp-Derived Cannabinoid Products

 Section 46-59-10. (A) This chapter is known and may be cited as the "South Carolina Hemp-Derived Cannabinoid Products Act."
 (B) The General Assembly finds that:
  (1) The regulation of full-spectrum hemp-derived cannabinoid products and broad-spectrum cannabinoid products that comply with the federal three-tenths of one percent total THC standard serves the public interest by ensuring product quality, consumer safety, and appropriate tax collection.
  (2) A product registration system adapted from proven models will provide an efficient framework for tracking compliant products while preventing illegal and synthetic cannabinoid products from entering interstate commerce.
  (3) Licensing of manufacturers, wholesalers, distributors, and retailers of full-spectrum hemp-derived cannabinoid products and broad-spectrum hemp-derived cannabinoid products will create accountability in the supply chain and protect public health.
  (4) An excise tax on retail full-spectrum hemp-derived cannabinoid products and broad-spectrum hemp-derived cannabinoid products in all categories will generate state revenue while minimizing the regulatory burden on state law enforcement and compliant manufacturers, wholesalers, distributors, and retailers.
  (5) The definition of synthetic cannabinoids must be comprehensive and explicit to distinguish between naturally derived hemp cannabinoids and prohibited synthetic cannabinoid forms.
  (6) Age restrictions limiting the sale of full-spectrum cannabinoid products and broad-spectrum hemp-derived cannabinoid products to individuals twenty-one years of age and older will protect youth from potential harm associated with cannabinoid consumption and will align with federal and state policies governing age-restricted products.
  (7) Creating a safe harbor protection system, in which hemp-derived cannabinoid products that are not permitted to be sold in South Carolina are permitted to be manufactured, stored, and distributed for use outside of South Carolina and researched in South Carolina, will benefit the South Carolina economy and scientific community.

 Section 46-59-20. As used in this chapter:
  (1) "Adult" or "adult consumer" means a natural person who attained twenty-one years of age and who is authorized to purchase and possess full-spectrum or broad-spectrum cannabinoid products in accordance with this chapter.
  (2) "Broad-spectrum hemp-derived cannabinoid product" means a hemp extract or hemp-derived cannabinoid product that:
   (a) is derived from hemp;
   (b) contains multiple naturally occurring hemp-derived cannabinoids, terpenes, and other naturally occurring compounds; and
   (c) has had delta-9 tetrahydrocannabinol with a limit of quantification lower than 0.3 percent delta 9 tetrahydrocannabinol by weight.
  (3) "Cannabidol" or "CBD" means the compound by the same name derived from the hemp variety of Cannabis sativa L plant.
  (4) "Certificate of analysis" or "COA" means a report issued by an independent, third-party testing laboratory accredited by the International Organization for Standardization (ISO/IEC 17025:2017) that documents the complete cannabinoid profile, potency, purity, and contaminant testing results for a specific batch or lot of a full-spectrum or broad-spectrum hemp-derived cannabinoid product.
  (5) "Commercial sales" means the sale of hemp products in the stream of commerce, at retail, wholesale, and online.
  (6) "Consumable hemp product" means a finished product derived from hemp that is intended for human ingestion or inhalation, containing one or more hemp-derived cannabinoids, with a delta-9 THC concentration of not more than 0.3 percent on a dry weight basis. This includes edibles, beverages, tinctures, gummies, capsules, oils for ingestion or vaporization, and inhalable products, but excludes topical products, seeds or seed-derived ingredients generally recognized as safe by the U.S. Food and Drug Administration, industrial hemp products not intended for consumption, and any product classified as marijuana under federal or state law.
  (7) "Cultivating" means planting, watering, growing, and harvesting of a plant or crop.
  (8) "Distributor" means any business located in South Carolina that purchases, receives, possesses, stores, transports, and offers for sale broad-spectrum hemp-derived cannabinoid products and/or full-spectrum hemp-derived cannabinoid products to wholesalers, retailers, or other distributors, but does not manufacture or process the products. A distributor includes wholesalers and wholesale warehouse operators.
  (9) "Full-Spectrum Cannabinoid Product" means any finished hemp product intended for human consumption, ingestion, inhalation, absorption, or topical application that:
   (a) contains multiple cannabinoids and other plant compounds including, but not limited to, terpenes, flavonoids, and plant waxes derived from or extracted from the hemp plant Cannabis sativa L.;
   (b) is derived from hemp containing a delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3 percent on a dry weight basis;
   (c) includes any combination of the following non-psychoactive primary cannabinoids: cannabidiol (CBD), cannabichromene (CBC), cannabigerol (CBG), or cannabinol (CBN);
   (d) may include regulated amounts of psychoactive tetrahydrocannabinol (THC) isomers and derivatives, provided they do not exceed applicable regulatory limits per serving and per package, and comply with labeling and potency verification requirements;
   (e) is prepared in a form available for commercial sale in all product categories including, but not limited to, beverages, edibles, topicals, tinctures, oils, isolates, and distillates;
   (f) does not contain synthetic cannabinoids as defined herein; and
   (g) meets all product registration, certification of analysis, packaging, and labeling requirements established in this chapter.
  (10) "Hemp" means the plant Cannabis sativa L. and any part of the plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3 percent on a dry weight basis as defined in Section 46-55-10.
  (11) "Hemp-derived cannabinoid" means any phytocannabinoid found in or derived from hemp including, but not limited to, delta-9 THC, tetrahydrocannabinolic acid (THCA), cannabidiol (CBD), cannabidiolic acid (CBDA), cannabinol (CBN), cannabigerol (CBG), cannabichromene (CBC), cannabicyclol (CBL), cannabivarin (CBV), tetrahydrocannabivarin (THCV), cannabidivarin (CBDV), cannabicitran (CBT), delta-7 THC, delta-8 THC, delta-10 THC, hexahydrocannabinol (HHC), or tetrahydrocannabiphorol (THCp). This excludes synthetic cannabinoids not derived from hemp.
  (12) "Independent testing laboratory" means a laboratory accredited under ISO 17025 standards or registered with the U.S. Drug Enforcement Administration, with no financial interest in the tested entity, capable of testing for cannabinoids using high-performance liquid chromatography (HPLC) or a validated equivalent method.
  (13) "Ingestible product" means a product consumed through the mouth by swallowing into the gastrointestinal system or through tissue absorption.
  (14)  "Inhalable product" means a product consumed through respiratory system via the mouth or nasal passage, including vaporization.
  (15) "Manufacturer" means any business located in this State that extracts, processes, concentrates, infuses, converts, compounds, chemically derives, or otherwise manufactures broad-spectrum hemp-derived cannabinoid products or full-spectrum hemp-derived cannabinoid products for sale or distribution within or outside the State. This includes engaging in:
   (a) extraction and refinement of cannabinoids from hemp plant material;
   (b) conversion of cannabinoid precursor compounds through chemical or biological processes;
   (c) formulation and blending of extracted cannabinoids with other ingredients;
   (d) packaging and labeling of cannabinoid products produced by the manufacturer or obtained from licensed in-state or out-of-state sources; or
   (e) any combination of the above processes.
  (16) "Product registration" means the process by which a manufacturer or distributor submits required documentation and pays applicable fees to the South Carolina Department of Agriculture to authorize a specific cannabinoid product formulation for lawful sale within this State. Each unique product, defined by its specific cannabinoid composition, serving size, and label, requires a separate registration. Product registration authorizes lawful manufacture, distribution, and retail sales but does not create any right or entitlement beyond those expressly granted by statute.
  (17) "Proof of age" means a valid government-issued photographic identification document including, but not limited to, a driver's license, passport, military identification card, or state identification card, that evidences that the holder has attained twenty-one years of age.
  (18) "Registry" means the database maintained by the South Carolina Department of Agriculture containing information regarding all broad-spectrum hemp-derived cannabinoid products and full-spectrum hemp-derived cannabinoid products approved for distribution and sale in this State, manufacturer information, retail location registrations, and testing documentation.
  (19) "Registry certificate" means the official documentation issued by the South Carolina Department of Agriculture certifying that a retail location is authorized to sell registered full-spectrum CBD products and that the retailer is in compliance with all applicable registration and operational requirements.
  (20) "Retailer" means any business or entity that purchases broad-spectrum hemp-derived cannabinoid products or full-spectrum hemp-derived cannabinoid products from a licensed manufacturer or distributor and sells such products at retail directly to consumers for personal use and does not resell products to other retailers or distributors.
  (21)(a) "Synthetic cannabinoid" means any cannabinoid compound that is created, produced, or synthesized through chemical synthesis, chemical modification, or isomerization that does not occur naturally in the Cannabis sativa L. plant in appreciable quantities, or where the synthetic process creates a chemical structure that differs from naturally occurring cannabinoids found in hemp.
   (b) "Synthetic cannabinoid" includes, but is not limited to:
    (i) fully synthetic cannabinoids manufactured entirely through chemical synthesis (e.g., HU-210, JWH-018, JWH-073, XLR-11, or other synthetic cannabinoid receptor agonists).
    (ii) structural isomers of tetrahydrocannabinol (THC), tetrahydrocannabiphrol (THCp), or other naturally occurring cannabinoids where the isomerization process does not replicate a naturally occurring form found in Cannabis sativa L. in its native state;
    (iii) cannabinoids created through hydrogenation, hydration, or other chemical modification processes that produce compounds with chemical structures distinct from those naturally present in hemp plant material;
    (iv) esters, ethers, salts, and acid derivatives of cannabinoids created through chemical synthesis where such forms are not naturally present in Cannabis sativa L. in appreciable quantities; and
    (v) cannabinoid metabolites or degradation products that do not naturally occur in significant concentrations in the hemp plant.
   (c) "Synthetic cannabinoid" does not include:
    (i) cannabinoids (including delta-8 THC, delta-9 THC, delta-10 THC, THCA, CBDA, CBN, CBC, CBG, THCV, or other cannabinoids) derived directly through extraction, distillation, chromatography, or other mechanical or nonchemical separation processes from Cannabis sativa L. plant material or hemp biomass, regardless of isomer form, where the compound existed naturally in the source material in appreciable quantities;
    (ii) isomeric forms of delta-9-THC or other naturally occurring cannabinoids that are separated from hemp plant material or naturally converted within the hemp plant through heating or enzymatic processes;
    (iii) minor cannabinoid concentrates where the minor cannabinoid is naturally present in hemp and is concentrated through mechanical separation, extraction, or distillation without chemical synthesis or artificial creation; or
    (iv) full-spectrum extracts that contain multiple naturally occurring cannabinoids in proportions consistent with or derived from hemp plant material;
   (d) The Department of Agriculture shall develop and publish a list of approved cannabinoids and prohibited synthetic cannabinoids. Any cannabinoid not explicitly approved or listed as prohibited may only be distributed after the Department of Agriculture has issued written approval based on laboratory analysis and chemical verification.
  (22) "Tincture" means a liquid broad-spectrum or full-spectrum hemp-derived cannabinoid non-potable liquid product, not a beverage or intended for drinking, that is intended for human consumption by oral ingestion or sublingual administration and consists of a hemp-derived cannabinoid concentrate or extract dissolved or suspended in a consumable oil-based carrier.
  (23) "Total psychoactive cannabinoids" or "total THC" means a total of all psychoactive phytocannabinoid found in or derived from hemp including, but not limited to, delta-9 THC, tetrahydrocannabinolic acid (THCA), tetrahydrocannabivarin (THCV), delta-7 THC, delta-8 THC, delta-10 THC, hexahydrocannabinol (HHC), or tetrahydrocannabiphorol (THCp).

 Section 46-59-30. (A) An individual may not use, consume, possess, distribute, or attempt to distribute a hemp-derived consumable product on public or charter school property or at a school function.
 (B) For the purposes of this section:
  (1) "School" means a public or charter elementary school, middle school, junior high school, or high school.
  (2) "School property" means any building, bus, campus, athletic facility, playground, or land owned, leased, used, or operated by a school including any school bus or vehicle use to transport students.
  (3) "School function" means any school-sponsored or school-related activity event, or program whether held on or off school property.
 (C) This prohibition applies at all times, including during and outside normal school hours.
 (D) A violation of this section by a person under eighteen years of age must be handled in accordance with applicable school disciplinary policies and does not constitute a criminal offense.
 (E) A violation of this section by a person eighteen years of age or older is subject to a civil fine of fifty dollars, consistent with enforcement of tobacco-related offenses on school property.
 (F) Hemp-derived consumable products possessed in violation of this section are subject to seizure and forfeiture.
 (G) This section does not apply to:
  (1) a product approved by the United States Food and Drug Administration and lawfully prescribed to a student and administered in accordance with school policy; or
  (2) a law enforcement officer's action within scope of official duties.
 (H) Nothing in this chapter may be construed to limit the authority of a school district or governing body to adopt and enforce more restrictive policies regarding hemp-derived consumable products.

 Section 46-59-40. (A) It is unlawful for any person to manufacture, possess with intent to sell, distribute, sell, or offer for sale any synthetic cannabinoid product within this state, or to cause such products to be transported into this State for sale or distribution.
 (B) Any synthetic cannabinoid product possessed, distributed, sold, or offered for sale in violation of this section is contraband and may be seized by law enforcement.
 (C) A person convicted of violating this section must be punished in the same manner as violations involving THC pursuant to Sections 44-53-190 and 44-53-370.
 (D) The South Carolina Law Enforcement Division (SLED) shall enforce the provisions of this section in coordination with the Department of Agriculture.

 Section 46-59-50. (A) An individual may not sell, distribute, dispense, give away, or offer for sale any full-spectrum hemp-derived cannabinoid product or broad-spectrum hemp-derived cannabinoid products to any individual under twenty-one years of age. This restriction applies to all full-spectrum or broad-spectrum cannabinoid products in all product categories including, but not limited to, beverages, edibles, topicals, tinctures, oils, isolates, distillates, capsules, and other forms.
 (B)(1) Every retailer licensed to sell full-spectrum cannabinoid products and broad-spectrum hemp-derived cannabinoid products shall verify, through examination of government-issued photographic proof of age, that any customer attempting to purchase a full or broad spectrum cannabinoid product is at least twenty-one years of age prior to completing the sale.
  (2) The retailer or sales representative shall:
   (a) request valid proof of age from the customer;
   (b) carefully examine the proof of age to verify the customer's date of birth;
   (c) confirm that the customer is at least twenty-one years of age; and
   (d) refuse the sale if the customer cannot provide satisfactory proof of age or if the proof of age indicates the customer is under twenty-one years of age;
  (3) A retailer may not sell full-spectrum cannabinoid products and broad-spectrum hemp-derived cannabinoid products to any person who appears to be under thirty years of age without requesting and verifying proof of age. This presumption applies even if a customer claims to be of legal age.
  (4) Cash or credit card transactions involving full-spectrum cannabinoid products and broad-spectrum hemp-derived cannabinoid products must clearly identify the product type.
 (C)(1) Full-spectrum hemp-derived cannabinoid products and broad-spectrum hemp-derived cannabinoid products may not be sold:
   (a) to any individual who is visibly intoxicated or impaired;
   (b) to any individual who is on the premises of a school, school bus, or school-related event;
   (c) through vending machines or other automated dispensing devices not monitored by a licensed retailer;
   (d) by delivery to a residential address unless the delivery driver verifies proof of age upon delivery and obtains a signature confirming receipt from an adult at least twenty-one years of age;
   (e) to any person who is below the legal age of twenty-one years, except that a parent or guardian may purchase the product for use for his minor child for nonrecreational, therapeutic purposes;
   (f) via mail delivery or common carrier, except in compliance with all applicable federal and state laws governing age-restricted deliveries; or
   (g) through social media, online platforms, or electronic marketplaces unless the seller implements a robust age verification system that requires proof of age prior to purchase and delivery.
  (2) A retailer may not knowingly allow any person under twenty-one years of age to enter or remain on retail premises where full-spectrum cannabinoid products and broad-spectrum hemp-derived cannabinoid products are displayed or sold, unless such person is accompanied by a parent or legal guardian who is at least twenty-one years of age.
 (D)(1) Every retailer and every employee of a retailer who is authorized to sell full-spectrum cannabinoid products or broad-spectrum hemp-derived cannabinoid products shall complete age verification training prior to engaging in any sales of these products.
  (2) The training must include:
   (a) identification of valid government-issued photographic identification documents;
   (b) techniques for detecting fraudulent or forged identification;
   (c) procedures for proper age verification and documentation;
   (d) state and federal laws governing the sale of age-restricted products;
   (e) the legal consequences of selling products to individuals under twenty-one years of age; and
   (f) customer service best practices when refusing a sale due to lack of proper age verification.
  (3) Each retailer shall maintain documentation of completion of age verification training for all employees, including the date of training and the trainer's name.
 (E)(1) Any retailer engaged in online sales or remote sales of full-spectrum or broad-spectrum cannabinoid products shall:
   (a) implement an age verification system that requires the customer to provide proof of age before payment is processed;
   (b) use a third-party age verification service that complies with federal identity verification standards;
   (c) require a signature from an individual at least twenty-one years of age upon delivery of the product;
   (d) maintain records of the age verification process and delivery signature for at least one year;
   (e) clearly display a statement on all web pages, marketing materials, and product listings stating "Age 21+ Required" or similar language indicating the age restriction; and
   (f) refuse delivery if the person receiving the package cannot provide satisfactory proof of age or if the proof of age indicates the person is under twenty-one years of age.
  (2) A retailer may not ship or cause to be shipped any full-spectrum hemp-derived cannabinoid product or broad-spectrum hemp-derived cannabinoid products to any address where the retailer knows or reasonably should know that a person under twenty-one years of age resides or will receive the product.
 (F)(1) A retailer, manufacturer, distributor, or any other person who knowingly or intentionally sells, distributes, dispenses, gives away, or offers for sale any full-spectrum cannabinoid product or broad-spectrum hemp-derived cannabinoid products to a person under twenty-one years of age is subject to:
   (a) a civil penalty of not less than five hundred dollars and not more than two thousand five hundred dollars for each violation;
   (b) suspension of the retailer's or distributor's license for not less than thirty days;
   (c) for subsequent violations within a five-year period, revocation of the retailer's or distributor's license;
   (d) criminal penalties as provided in subsection (H).
  (2) A retailer who fails to maintain proof of age verification records as required in subsection (B)(2)(e) is subject to a civil penalty of not less than one hundred dollars and not more than five hundred dollars for each day of noncompliance.
  (3) Each sale to an individual under twenty-one years of age constitutes a separate and distinct violation.
 (G)(1) A person who knowingly and intentionally violates the age restriction in subsection (A) by selling or distributing a full-spectrum hemp-derived cannabinoid product or broad-spectrum hemp-derived cannabinoid products to a person under twenty-one years of age is guilty of a misdemeanor and, upon conviction, may be fined not less than one thousand dollars and not more than five thousand dollars or imprisoned for not more than one year, or both.
  (2) A person who negligently or recklessly fails to verify age in violation of subsection (B) is guilty of a misdemeanor and, upon conviction, may be fined not less than five hundred dollars and not more than two thousand dollars or imprisoned for not more than six months, or both.
  (3) A person who provides false identification to purchase a full-spectrum hemp-derived cannabinoid product or broad-spectrum hemp-derived cannabinoid products, or who intentionally misrepresents their age to obtain such a product, is guilty of a misdemeanor and, upon conviction, may be fined not less than two hundred fifty dollars and not more than one thousand dollars or imprisoned for not more than thirty  days, or both.
 (H) It is an affirmative defense to a charge of selling a full-spectrum or broad-spectrum cannabinoid product to a person under twenty-one years of age if the defendant exercised reasonable diligence in examining the proof of age and the proof of age appeared to be genuine and indicated that the purchaser was at least twenty-one years of age. The burden of proving reasonable diligence rests with the defendant and requires evidence of compliance with all requirements in subsections (B), (D), and (E).
 (I) This section establishes minimum age requirements for the sale of full-spectrum or broad-spectrum cannabinoid products. Nothing in this section may be construed to prevent local governments in this State from enacting ordinances or regulations that impose stricter age requirements or additional restrictions on the sale of these products.

 Section 46-59-60. (A) The Department of Agriculture has sole authority to issue, renew, suspend, and revoke licenses for manufacturers, distributors, and retailers of full-spectrum or broad-spectrum hemp-derived cannabinoid products in accordance with this section and regulations promulgated by the department.
 (B) A person may not lawfully manufacture, distribute, or retail full-spectrum or broad-spectrum hemp-derived cannabinoid products without obtaining and maintaining a current, valid license issued by the Department of Agriculture.
  (1) A manufacturer's license authorizes the licensee to:
   (a) extract, process, refine, and manufacture full-spectrum or broad-spectrum hemp-derived cannabinoid products;
   (b) sell products to other licensed manufacturers, distributors, or retailers;
   (c) sell products outside this state in compliance with applicable federal and state laws; and
   (d) possess and store hemp plant material and cannabinoid products at the licensed facility.
  (2) A distributor's license authorizes the licensee to:
   (a) purchase and take possession of full-spectrum or broad-spectrum hemp-derived cannabinoid products from licensed manufacturers, other distributors, or from out-of-state sources;
   (b) store, transport, and warehouse products;
   (c) sell and distribute products to licensed retailers, other distributors, or to consumers who are licensed retailers; and
   (d) maintain records of all products received and distributed.
  (3) A retailer's license authorizes the licensee to:
   (a) purchase full-spectrum hemp-derived cannabinoid products from licensed manufacturers or distributors;
   (b) store and possess products for retail sale;
   (c) sell products at retail directly to consumers;
   (d) sell only products that are properly registered, labeled, and certified; and 
   (e) comply with all age restriction requirements in Section 46-59-50.
 (C) An applicant for any license shall submit to the Department of Agriculture:
  (1) a completed application on forms prescribed by the department;
  (2) proof of identity and, for business entities, proof of legal status, articles of incorporation, partnership agreement, or other organizational documents;
  (3) the physical address of the facility where products will be manufactured, stored, or sold;
  (4) a statement of the specific license type sought and the cannabinoid products to be handled;
  (5) proof that the facility complies with all applicable local zoning, land use, and building code requirements;
  (6) for manufacturers, a detailed description of extraction and processing methods, equipment, solvents, and quality control procedures;
  (7) for all applicants, proof of compliance with local government approval or permits, if required;
  (8) for retailers, verification that the applicant is not disqualified under subsection (G);
  (9) for retailers, evidence of a written policy and training procedures to ensure compliance with age restrictions in Section 46-59-50;
  (10) a nonrefundable application filing fee as established by the department not to exceed two hundred fifty dollars;
  (11) other information as the department deems necessary to determine qualifications and compliance.
 (D)(1) The Department of Agriculture shall establish annual license fees, applicable in biennial license periods, by regulation as follows:
   (a) manufacturer's license: not to exceed fifteen thousand dollars per license, per biennial period;
   (b) distributor's license: not to exceed five thousand dollars per license, per biennial period;
   (c) retailer's license: not to exceed one thousand dollars per license, per biennial period.
  (2) License fees must be payable at the time of application and upon renewal.
 (E) All licenses must be:
  (1) effective upon issuance and valid for a biennial period unless suspended or revoked;
  (2) nontransferable to a different location or to a different person without department approval;
  (3) subject to annual compliance inspection;
  (4) renewable upon payment of the renewal fee and submission of an application for renewal at least thirty days before expiration;
  (5) subject to denial of renewal if the licensee fails to pay applicable fees, maintain compliance with regulations, provide required documentation, or maintain compliance with age restriction requirements in Section 46-59-50.
 (F) The Department of Agriculture may refuse to issue or renew a license or shall revoke a license if the applicant or licensee:
  (1) has been convicted of a felony involving distribution or manufacture of controlled substances within the preceding five years;
  (2) has engaged in any fraudulent or deceptive practice regarding cannabinoid products;
  (3) has been found to have distributed synthetic cannabinoids or nonregistered products;
  (4) fails to cooperate with department inspections or investigations;
  (5) fails to maintain proper records or provide required product documentation;
  (6) is not in good standing with the Department of Revenue for tax purposes;
  (7) has sold or distributed full-spectrum or broad-spectrum cannabinoid products to individuals under twenty-one years of age;
  (8) has had a previous license revoked by the department within the preceding five years;
  (9) engages in unlawful conduct related to controlled substances, tax evasion, or fraud;
  (10) fails to implement or maintain age verification procedures and training as required in Section 46-59-50. 
 (G)(1) The Department of Agriculture may issue a notice of violation to a licensee for noncompliance with licensing requirements or regulations, including noncompliance with age restrictions.
  (2) If a licensee fails to cure a violation within thirty days of notice, the department may suspend or revoke the license after providing notice and an opportunity to be heard.
  (3) In cases involving imminent public health or safety risks, or violations of age restrictions, the department may suspend a license without prior notice, provided that the licensee must be afforded an opportunity to be heard within ten days of suspension.
  (4) A licensee whose license is revoked may not apply for a new license for at least three years from the date of revocation.

 Section 46-59-70. (A) Broad-spectrum hemp-derived cannabinoid product or full-spectrum hemp-derived cannabinoid product may not be manufactured, distributed, or sold in this State unless the product has been registered with the Department of Agriculture and remains in active registration status. Product registration does not authorize interstate transport or sales in states where such products are prohibited, and registration is valid only for sales within South Carolina.
 (B)(1) In-state manufacturers and distributors of broad-spectrum hemp-derived cannabinoid products or full-spectrum hemp-derived cannabinoid products shall register each product prior to offering it for sale in this State.
  (2) Out-of-state manufacturers and distributors seeking to distribute broad-spectrum hemp-derived cannabinoid product or full-spectrum hemp-derived cannabinoid product in South Carolina shall register each product prior to introduction into commerce in the State.
  (3) A retailer selling a product manufactured or distributed by another licensee is not required to register the product, provided it is properly registered by the manufacturer or distributor.
 (C) Each product registration application must include:
  (1) the name and address of the applicant, manufacturer or distributor;
  (2) the brand name or company name to appear on the label, if different from applicant;
  (3) the product name and description;
  (4) a detailed list of all cannabinoids present in the product, including their specific names, CAS numbers, and percentages by weight;
  (5) the complete botanical or natural source description;
  (6) a statement that the product contains no synthetic cannabinoids as defined in Section 46-59-20;
  (7) the intended product category such as, beverage, edible, topical, tincture, oil, isolate, capsule;
  (8) the serving size, as a whole unit or specified volume or weight;
  (9) a front and back copy of the complete product label that complies with Section 46-59-80;
  (10) a Certificate of Analysis (COA) from an independent, ISO/IEC 17025:2017 accredited laboratory documenting:
   (a) complete cannabinoid profile including all major and minor cannabinoids present;
   (b) total THC content (THC + THCA);
   (c) primary cannabinoid content (CBD, CBG, CBC, CBN, etc.);
   (d) cannabinoid potency per serving and per container;
   (e) testing for residual solvents, heavy metals, microbial contaminants, mycotoxins, and pesticide residues;
   (f) batch number and lot identification; and
   (g) laboratory accreditation number and testing date;
  (11) for products manufactured out-of-state: a copy of the manufacturing or processing permit issued by the out-of-state regulatory authority, and a copy of applicable state regulations governing manufacture in the state of origin; and
  (12) proof of payment of the product registration fee.
 (D)(1) A nonrefundable product registration fee of one hundred dollars must be paid for each unique product formulation. For purposes of this section, a "unique product formulation" is defined as a product with a specific cannabinoid composition, serving size, and label.
  (2) A new product registration and fee must be required if there are material changes to:
   (a) the cannabinoid composition or formula of the product;
   (b) the serving size or recommended use;
   (c) the product label; or
   (d) the manufacturing process that may alter the product profile.
  (3) Registration fees must be paid by check or money order made payable to the "State of South Carolina, Department of Agriculture."
 (E)(1) The Department of Agriculture shall approve or deny a product registration application within thirty days of receipt of a complete application with all required documentation and fee payment.
  (2) If the department determines that an application is incomplete, it shall notify the applicant of the deficiencies, and the applicant has fifteen days to provide the missing information.
  (3) Upon approval, the product registration is valid for two years from the date of issuance and must be renewable upon submission of the product registration renewal form and payment of a one hundred dollar renewal fee.
  (4) A product registration may be revoked by the Department of Agriculture if:
   (a) the product is found to contain synthetic cannabinoids;
   (b) laboratory testing reveals the product potency or cannabinoid content differs by more than twenty percent from the registered label;
   (c) the product is found to be contaminated with prohibited substances; or
   (d) the manufacturer, distributor, or retailer fails to maintain compliance with this section.
(F) Any testing laboratory conducting Certificate of Analysis testing for South Carolina product registrations must:
  (1) be accredited by the International Organization for Standardization (ISO) to ISO/IEC 17025:2017 standards;
  (2) maintain no direct or indirect financial interest in any manufacturer, distributor, or retailer being tested;
  (3) maintain equipment and procedures that accurately measure cannabinoid potency, residual solvents, heavy metals, microbial contaminants, and pesticides;
  (4) provide testing results within fourteen days of sample receipt; and
  (5) retain records of all testing for at least three years.

 Section 46-59-80. (A) Each container of a full-spectrum or broad-spectrum hemp-derived cannabinoid product must bear a label that includes, at a minimum, the following information:
  (1) the product name and brand name;
  (2) a complete list of all ingredients in descending order of predominance by weight;
  (3) the complete cannabinoid profile expressed as:
   (a) total tetrahydrocannabinol (THC) content (THC + THCA + any other psychoactive cannabinoids);
   (b) total primary cannabinoid content (CBD, CBG, CBC, or CBN, as applicable);
   (c) milligrams of total THC per serving;
   (d) milligrams of primary cannabinoid per serving;
   (e) milligrams of total THC per container; and
   (f) milligrams of primary cannabinoid per container;
  (4) the serving size expressed as a whole unit, for edibles, ounces, for beverages or liquids, or grams, for other products;
  (5) the total number of servings per container;
  (6) directions for use and recommended dosage;
  (7) the manufacture date and expiration or "best by" date;
  (8) a batch number or lot number that corresponds to the Certificate of Analysis;
  (9) a quick response code (QR code) that links to the Certificate of Analysis for the specific batch;
  (10) the name and address of the manufacturer or distributor;
  (11) the statement: "This product contains hemp-derived cannabinoids and is intended for adult use only";
  (12) a prominent statement indicating "Age 21+ Required" or substantially similar language indicating that sale to persons under twenty-one years of age is prohibited;
  (13) a statement verifying that the product contains less than 0.3% delta-9 THC on a dry weight basis and no synthetic cannabinoids;
  (14) product registration number issued by the Department of Agriculture; and
  (15) all warnings required by subsection (B).
 (B) The label of each hemp-derived consumable product intended for ingestion or inhalation must include the following text: "This product has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, mitigate, or prevent any disease."
 (C)(1) Each container of a broad-spectrum and full-spectrum cannabinoid product must:
   (a) have a tamper-evident seal;
   (b) be in child-resistant packaging designed to comply with federal Poison Prevention Packaging Act standards;
   (c) display all required label information on the package or on a label affixed to the package;
   (d) not bear any imagery, language, or design that is appealing to children, including cartoons, animated characters, bright colors intended to attract youth, or likenesses to popular children's products or candy; and
   (e) include the "Age 21+ Required" notice on the front and back of the package in a conspicuous location.
  (2) Product packaging may not include:
   (a) images or designs that mimic commercial candy, snack food, beverage, or baked-good packaging;
   (b) terms such as "candy," "treat," or other language suggesting the product is food intended for children;
   (c) claims that the product treats, cures, or prevents any disease or medical condition, unless such claims are supported by substantial scientific evidence and do not violate FDA regulations; or
   (d) any seal, insignia, or mark that could reasonably mislead consumers to believe the product is endorsed by the State of South Carolina, a state agency, or any federal agency.
  (3) All text on labels must be legible and in a type-font size not smaller than 8-point font.
 (D) Broad-spectrum hemp-derived cannabinoid products and full-spectrum hemp-derived cannabinoid products in nonliquid ingestible products, liquid ingestible products, and inhalable products must comply with the following serving size limits to ensure consumer safety:
  (1) any hemp-derived consumable product intended for ingestion that is not a liquid may not:
   (a) be sold in a serving that contains more than ten milligrams per serving of total psychoactive cannabinoids or total THC including, but not limited to:
    (i) Delta-8 THC;
    (ii) Delta-9 THC;
    (iii) Delta-10 THC;
    (iv) THCA; or
   (b) be formed in the shape of an animal or cartoon character.
  (2) any hemp-derived consumable product intended for ingestion that is a liquid form may not be sold in a serving that contains more than ten milligrams per serving of total psychoactive cannabinoids or total THC including, but not limited to:
   (a) Delta-8 THC;
   (b) Delta-9 THC;
   (c) Delta-10 THC;
   (d) THCA;
  (3)(a) any hemp-derived consumable product intended for inhalation may not be sold in a container that contains more than ten milligrams of total psychoactive cannabinoids or total THC including, but not limited to:
    (i) Delta-8 THC;
    (ii) Delta-9 THC;
    (iii) Delta-10 THC;
    (iv) THCA;
   (b) smokeable flower or prerolls are prohibited for sale to the general public;
  (4) any hemp-derived consumable product in tincture form may not be sold in a container that contains more than ten milligrams per bottle of total psychoactive cannabinoids or total THC including, but not limited to:
   (a) Delta-8 THC;
   (b) Delta-9 THC;
   (c) Delta-10 THC;
   (d) THCA.
 (E)(1) The cannabinoid content reflected on the product label may not vary by more than twenty percent from the results documented in the Certificate of Analysis.
  (2) A product that contains more than twenty percent variation from labeled potency must be considered noncompliant and may not be distributed or sold.
  (3) The Department of Agriculture may conduct periodic testing of retail products to verify label accuracy and may assess penalties against manufacturers, distributors, or retailers who fail to meet potency requirements.

 Section 46-59-90. (A) This chapter does not apply to:
  (1) a safe harbor hemp product;
  (2) a safe harbor manufacturer or storage facility; or
  (3) a safe harbor research institute or facility.
 (B) For the purposes of this section, a "safe harbor hemp product" means a hemp-derived compound or cannabinoid, whether a finished product or in the process of being produced, that is permitted to be manufactured for distribution, produced for distribution, packaged for distribution, processed for distribution, prepared for distribution, treated for distribution, transported for distribution, or held for distribution in South Carolina for export from South Carolina but that is not permitted to be sold or distributed in South Carolina.
 (C) For the purposes of this section, a "safe harbor manufacturer or storage facility" means a facility that manufactures for distribution, produces for distribution, packages for distribution, processes for distribution, prepares for distribution, treats for distribution, transports for distribution, or holds for distribution a s safe harbor hemp product.
 (D) For the purposes of this section, a "safe harbor research institute or facility" means a facility with accreditation from a US regional accreditor, a private or public university or college, or an institute with ISO accredited analytical research or testing that may work with hemp-derived cannabinoids that are not permitted to be sold or distributed in this State.

 Section 46-59-100. (A)(1) The Department of Agriculture shall enforce all provisions of Sections 46-59-40, 46-59-50, 46-59-60, and 12-36-1210 related to licensing and taxation.
  (2) The Department of Agriculture shall enforce all provisions of Sections 46-59-70 and 46-59-80 related to product registration, packaging and labeling requirements, and potency.
  (2) The South Carolina Law Enforcement Division (SLED) shall enforce the provisions of Sections 46-59-50 and 46-59-30 related to age restrictions and possession of products on school grounds and at school functions and shall enforce all criminal provisions of this chapter and shall investigate violations of synthetic cannabinoid prohibitions and age restriction violations.
  (3) All law enforcement agencies in South Carolina shall cooperate with the Department of Agriculture and SLED in investigating violations, including violations of age restrictions.
 (B)(1) The Department of Agriculture and its authorized agents may conduct unannounced inspections of any licensed manufacturing, distribution, or retail facility to:
   (a) verify compliance with licensing requirements;
   (b) inspect products for compliance with registration and labeling requirements;
   (c) verify that only registered products are being distributed or sold;
   (d) verify age verification procedures and point-of-sale compliance;
   (e) inspect records, including sales records, product inventory, certificates of analysis, and proof of age verification documentation;
   (f) ensure that only properly licensed persons are handling cannabinoid products; and
   (g) verify that no sales have been made to individuals under twenty-one years of age.
  (2) All licensees and product distributors shall cooperate fully with inspections and shall make products, facilities, records, and vehicles subject to inspection available upon request.
  (3) If inspection reveals violations, the Department of Agriculture shall issue a notice of violation with a specified period for cure, no less than ten days, except for imminent public health threats or age restriction violations.
 (C)(1) A full-spectrum or broad-spectrum cannabinoid product is considered contraband and may be seized by law enforcement if it:
   (a) contains synthetic cannabinoids;
   (b) is not registered with the SC Department of Agriculture;
   (c) does not comply with labeling requirements;
   (d) contains cannabinoid potency that varies by more than twenty percent from labeled content; or
   (e) contains contaminants or prohibited substances.
  (2) Upon seizure, the product must be destroyed unless the owner requests a hearing within fifteen days to contest the seizure.
  (3) A hearing must be conducted in accordance with the South Carolina Administrative Procedures Act.
 (D)(1) A person who violates any provision of this section including, but not limited to, manufacturing, distributing, or selling unregistered full-spectrum cannabinoid products, operating without a required license, violating labeling or packaging requirements, engaging in fraudulent product registration, or violating age restrictions pursuant to Section 46-59-50, is liable for a civil penalty of not less than one thousand dollars and not more than five thousand dollars per violation, plus the cost of investigation and enforcement.
  (2) Each day of violation constitutes a separate violation.
  (3) Civil penalties must be assessed by the Department of Agriculture and may be enforced through civil action.
 (E)(1) A person who manufactures, distributes, possesses with intent to distribute, or sells synthetic cannabinoids is guilty of a misdemeanor and, upon conviction, must be punished pursuant to Sections 44-53-190 and 44-53-370, or as otherwise provided by law.
  (2) A person who operates a manufacturing, distribution, or retail facility without the required license is guilty of a misdemeanor and, upon conviction, may be fined not less than five hundred dollars and not more than two thousand five hundred dollars or imprisoned for not more than one year, or both.
  (3) A person who falsifies a certificate of analysis or engages in fraudulent product registration is guilty of a misdemeanor and, upon conviction, may be fined not less than one thousand dollars and not more than five thousand dollars or imprisoned for not more than two years, or both.
  (4) A person who violates the age restriction pursuant to Section 46-59-50 is guilty of a misdemeanor and must be subject to the penalties prescribed therein.
(F) The Department of Agriculture shall suspend or revoke a license if a licensee:
  (1) is convicted of a crime related to controlled substances or fraud;
  (2) distributes synthetic cannabinoids or nonregistered products;
  (3) fails to maintain compliance with labeling or packaging requirements;
  (4) fails to pay assessed penalties or taxes;
  (5) engages in deceptive practices or violates any material provision of this chapter;
  (6) sells or distributes full-spectrum cannabinoid products to individuals under twenty-one years of age; or
  (7) fails to maintain age verification procedures and training pursuant to Section 46-59-50.

SECTION 2. Chapter 36, Title 12 of the S.C. Code is amended by adding:

Article 12

Cannabinoid Product Excise Tax

 Section 12-36-1210. (A) An additional sales, use, and casual excise tax equal to ten percent is imposed on amounts taxable pursuant to this chapter upon the retail sale of all full-spectrum and broad-spectrum hemp-derived cannabinoid products including, but not limited to, beverages infused with delta-9 THC and other cannabinoid products in all product categories, edibles, tinctures, oils, topicals, capsules, isolates, distillates, and other forms, sold or offered for sale to consumers in South Carolina.
 (B) The tax rate must be administered and remitted in the same manner as the tax imposed pursuant to Section 12-36-910.
 (C) Revenue generated from this execution must be deposited in the state general fund and allocated as follows:
  (1) sixty percent to the state general fund;
  (2) twenty percent to the Department of Agriculture for administration and enforcement of this Chapter 59 of Title 46;
  (3) twenty percent to the South Carolina Law Enforcement Division (SLED) for enforcement and investigation of violations of Chapter 59 of Title 46.
(D) This excise tax may not apply to samples or promotional products distributed by manufacturers or wholesalers for marketing purposes, provided the aggregate value of samples does not exceed five hundred dollars per recipient per calendar year;
(E) In addition to any other penalty set forth in law, a retailer who fails to collect and remit this tax is subject to:
  (1) a penalty of ten percent of the unpaid tax;
  (2) interest at the rate of eighteen percent per annum on the unpaid tax amount; or
  (3) suspension or revocation of the retailer's license to sell full-spectrum or broad-spectrum cannabinoid products if non-payment continues for more than sixty days after notice.
(F) The Department of Revenue may prescribe amounts that may be added to the sales price to reflect the additional taxes imposed pursuant to this article.

SECTION 3. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION 4. This act takes effect on August 1, 2026, provided that:
  (1) The Department of Agriculture shall begin accepting license applications on or after June 1, 2026.
  (2) The Department of Agriculture shall begin accepting product registration applications on or after June 1, 2026.
  (3) Any license or product registration issued on or before June 30, 2026, must be valid through the first full biennial period.
  (4) All manufacturers, distributors, and retailers shall obtain required license prior to August 1, 2026, or cease operations.
  (5) All broad-spectrum hemp derived cannabinoid products and full-spectrum hemp derived cannabinoid products being distributed or sold after December 31, 2026, must be registered and shall comply with all labeling and packaging requirements set forth.
  (6) All retailers must comply with age verification procedures and training requirements pursuant to Section 46-59-50 prior to May 1, 2026.

Renumber sections to conform.

Amend title to conform.