Senator Johnson proposes the following amendment (SJ-3924.MB0026S):

Amend the bill, as and if amended, SECTION 1, by striking paragraph (E)(10) and inserting:

  (10) ensure that statutes and regulations relating to intoxicating beverages exist to serve the interests of the State of South Carolina and its citizens rather than to serve or protect the interests of the market participants by adopting protectionist measures with no demonstrable connection to the state's legitimate interests in regulating intoxicating beverages that may cause impairment.

Amend the bill further, SECTION 2, by striking Section 46-55-5 and inserting:

 Section 46-55-5. The purpose of this chapter is to regulate the sale and distribution of hemp products. It is the intent of the General Assembly that the manufacture, sale, and distribution of hemp-cannabinoid products are strictly prohibited unless specifically provided for in this chapter and Chapters 2, 4, 6, and 14 of Title 61, and synthetic cannabis products are strictly prohibited and a violation should be treated as marijuana under Chapter 53, Title 44.

Amend the bill further, SECTION 3, by striking Section 46-55-10(3)(x) and (xi) and inserting:

  (x) delta-8 isotetrahydrocannabinol, delta-4 isotetrahydrocannabinol and isohexahydrocannabinol; or
  (xi) any combination of the compounds, including hexahydrocannabiphorol-o-ester and delta-8 tetrahydrocannabiphorol acetate, or delta-9 tetrahydrocannabiphorol acetate.; or
  (xii) any other substance that contains THC that, when ingested, inhaled, or absorbed into the body, produces an intoxicating or psychoactive reaction

Amend the bill further, SECTION 3, by striking Section 46-55-10(19) and (20) and inserting:

  (19) "Psychoactive reaction" means an altered state of the brain that has significant effects on a person's psychological processes, consciousness, thinking, physical ability, perception, or emotion.
 (13)(19)(20) "State plan" means the plan submitted by the department and approved by the Secretary of the United States Department of Agriculture pursuant to which the department regulates hemp production.
 (14)(20)(21) "THC" means tetrahydrocannabinol.

Amend the bill further, SECTION 7, by striking Section 61-2-135 and inserting:

 Section 61-2-135. When a person licensed to sell alcoholic liquor or, beer and wine, or a hemp-cannabinoid beverages moves his business to a new location in the same county that was licensed in the same manner within ninety days of the time of the move, the person may use his current license and is not required to initiate a new application upon approval by the department. In addition to a hemp-cannabinoid beverage retail license, the person must also have a retail license for alcoholic liquor or beer and wine and continue selling both types of products in the new location.

Amend the bill further, SECTION 8, by striking Section 61-2-136 and inserting:

 Section 61-2-136. Notwithstanding another provision of law, a currently licensed beer and wine wholesaler or, currently licensed alcoholic liquor wholesaler, or currently licensed hemp-cannabinoid wholesaler who wishes to relocate the licensed business to a new location within the State must notify the department. This notice must be in writing, must precisely describe the premises to be licensed, must give the date of the move, and must be filed with the department at least thirty days prior to the move. Upon receipt of this notice, the department shall transfer the permit to the new premises effective on the date of the move. In addition to a hemp-cannabinoid beverage wholesaler license, the person must also have a wholesale license for alcoholic liquor or beer and wine and continue servicing purchase, store, keep, possess, import into this State, transport, sell, and deliver both types of products hemp-cannabinoid beverages and beer, wine, or liquor in the new location.

Amend the bill further, by adding appropriately numbered SECTIONS to read:

SECTION X. Section 61-2-30 of the S.C. Code is amended to read:

 Section 61-2-30. The department and the division must employ personnel necessary to administer and enforce the laws and regulations governing alcoholic liquors, hemp-cannabinoid beverages, beer, and wine. Salaries of these personnel must be set by the department and the division, as applicable.

SECTION X. Section 61-2-80 of the S.C. Code is amended to read:

 Section 61-2-80. The State, through the department, is the sole and exclusive authority empowered to regulate the operation of all locations authorized to sell beer, wine, hemp-cannabinoid beverages, or alcoholic liquors, is authorized to establish conditions or restrictions which the department considers necessary before issuing or renewing a license or permit, and occupies the entire field of beer, wine, hemp-cannabinoid-beverage and liquor regulation except as it relates to hours of operation more restrictive than those set forth in this title.
 Nothing contained in this section may be considered as prohibiting judicial appeals from decisions of the Administrative Law Court, as authorized by Chapter 23 of Title 1, nor as limiting the authority of the courts in interpreting and applying the laws of this State relating to matters administered by the department.

SECTION X. Section 61-2-105 of the S.C. Code is amended to read:

 Section 61-2-105. Notwithstanding another provision of law, all initial alcoholic liquor, hemp-cannabinoid beverage, and beer and wine license application fees are increased by one hundred dollars, all biennial alcoholic liquor and beer and wine beverage fees and licenses are increased by two hundred dollars, and all local operation permit fees are increased by fifty dollars. These additional funds must be collected by the Department of Revenue and as soon as practicable allocated to the State Law Enforcement Division to offset the costs of inspections, investigations, and enforcement. SLED is authorized to receive, expend, and carry forward these funds.

SECTION X. Section 61-2-175 of the S.C. Code is amended to read:

 Section 61-2-175. (A) Any person or corporate entity (including partnerships) located in another state or country who knowingly and intentionally ships, causes to be shipped, or accepts for shipment any beer, wine, hemp-cannabinoid beverages or alcoholic liquors directly to any resident of this State who does not hold a valid producer's, manufacturer's, wholesaler's, or special food manufacturer's license or producer representative's certificate of registration issued by the State of South Carolina is in violation of this title.
 (B) Any person, corporation, or partnership found by the department to be in violation of subsection (A) of this section shall be issued a notice to cease and desist. Any person, corporation, or partnership who, after receiving a cease and desist order, is found by the department to be in violation of subsection (A) of this section for a second or subsequent occurrence within a two-year period of the first violation is guilty of a misdemeanor and, upon conviction, must be punished by a fine not to exceed $10,000. This subsection shall not apply to any person, corporation, or partnership who has registered brands for sale with the department pursuant to this title and who has current licenses and who has posted adequate surety bonds as required by this title; however, violations of subsection (A) constitute grounds for the department to take appropriate administrative action against the person, including suspension or cancellation of license and forfeiture of bonds.

Amend the bill further, SECTION 15, by striking Section 61-4-50(C) and inserting:

 (C) A person who violates the provisions of this section also is required to successfully complete a DAODAS an Office of Substance Use Services approved merchant alcohol enforcement education program. The program must be a minimum of two hours and the cost to the person may not exceed fifty dollars.

Amend the bill further, SECTION 15, by striking Section 61-4-50(D)(1) and inserting:

 (D)(1) Whenever any person who has not previously been convicted of any offense under this section, pleads guilty to or is found guilty of a sale in violation of this section, the court, without entering a judgment of guilt and with the consent of the accused, may defer further proceedings and place him on probation upon terms and conditions as it requires provided that one such condition must be that he complete the merchant education program described in subsection (C). Upon violation of a term or condition, the court may enter an adjudication of guilt and proceed as otherwise provided. Upon fulfillment of the terms and conditions, the court shall discharge the person and dismiss the proceedings against him. Discharge and dismissal under this section must be without court adjudication of guilt and is not a conviction for purposes of this section or for purposes of disqualifications or disabilities imposed by law upon conviction of a crime, including the additional penalties imposed for second or subsequent convictions. However, a nonpublic record must be forwarded to and retained by the South Carolina Law Enforcement Divisiondivision for the purpose of use by the courts in determining whether or not a person has committed a subsequent offense under this section. The South Carolina Law Enforcement Divisiondivision must produce this record upon subpoena or court order. Discharge and dismissal under this section may occur only once with respect to any person.

Amend the bill further, SECTION 24, Section 61-4-300, by striking the MACROBUTTON NoMacro <> undesignated paragraph and inserting:

 "Producer" as used in this article means:
  (1) a brewery or winery or a manufacturer, bottler, or importer of beer or wine into the United States.;
  (2)and, as used in this chapter, includes a manufacturer, a bottler, or importer of hemp-cannabinoid beverages into the United States.

Amend the bill further, SECTION 41, by striking Section 61-14-10(1) and inserting:

 (1) "Allowable THC concentration" means the total naturally derived delta-9 THC concentration of:
  (a) not more than 5 mgfive milligrams on a liquid weight basis in a twelve-ounce single serving container sold in a retail store; or
  (b) more than five milligrams but not more than 10 mgten milligrams on a liquid weight basis per serving, which can be:
   (i) up to one and one-half of an ounce, in a 750 mL750-milliliter container sold in a liquor store; or
   (ii) a twelve-ounce single serving container sold in a liquor store.

Amend the bill further, SECTION 41, by striking Section 61-14-10(6) and (7) and inserting:

 (6) "Division" means the State South Carolina Law Enforcement Division.
 (7) "Hemp" has the same meaning as Section 46-55-10(12)(13).

Amend the bill further, SECTION 41, by striking Section 61-14-10(8)(b) and inserting:

  (b) as no more than seventeen servings with a total of 170 mgone hundred-seventy milligrams of THC in a single 750-milliliter bottle.

Amend the bill further, SECTION 41, by striking Section 61-14-10(17) and inserting:

 (17) "Wholesaler" means a person who purchases, acquires, or imports from outside this State or who purchases or acquires from a manufacturer or producer in the State hemp-cannabinoid beverages, hemp-cannabinoid ingestible products, or both for resale.

Article 3

Enforcement

Amend the bill further, SECTION 41, by striking Section 61-14-700(A)(2) and inserting:

  (2) A manufacturer, wholesaler, or retailer of hemp-cannabinoid beverages must be in possession of a valid applicable beer and wine or liquor license issued by the department.

Amend the bill further, SECTION 41, by striking Section 61-14-700(B)(3) and inserting:

  (3) hemp-cannabinoid beverage retail license, which authorizes the licensees to purchase hemp-cannabinoid beverages from wholesalers having licenses issued pursuant to this article, and to store, keep, possess, and sell hemp-cannabinoid beverages at retail, and which excludes sales of hemp-cannabinoid beverages for on-premise consumption.

Amend the bill further, SECTION 41, by striking Section 61-14-710(B)(1) and (2) and inserting:

 (B)(1) Manufacturers of hemp-cannabinoid beverages containing up to five milligrams of an allowable THC concentration are subject to Chapter 4, Title 61 in the same manner and to the same extent as those provisions apply to manufacturers of beer or wine.
  (2) Manufacturers of hemp-cannabinoid beverages containing more than five milligrams but no more than ten milligrams of an allowable THC concentration are subject to Chapter 6, Title 61 in the same manner and to the same extent as those provisions apply to manufacturers of alcoholic liquor.

Amend the bill further, SECTION 41, by striking Section 61-14-710(C)(1) and inserting:

 (C)(1) Wholesalers of hemp-cannabinoid beverages containing up to five milligrams of allowable THC concentration are subject to Chapter 4, Title 61 in the same manner and to the same extent those provisions apply to wholesalers of alcoholic liquorbeer and wine.

Amend the bill further, SECTION 41, by striking Section 61-14-710(D)(2) and inserting:

  (2) Retailers of hemp-cannabinoid beverages containing more than five milligrams but no more than ten milligrams of allowable THC concentration are subject to Chapter 6 of Title 61, in the same manner and to the same extent those provisions apply to alcoholic liquor.

Amend the bill further, SECTION 41, by striking Section 61-14-730(B) and (C) and inserting:

 (B) In addition to all other taxes levied, assessed, collected, and paid in with respect to hemp-cannabinoid beverages, every licensed wholesaler shall be subject to the payment of a tax of six-tenths cent per ounce or fractional quantity thereof on sales of each hemp-cannabinoid beverage sold and containing five (5) milligrams or less of an allowable THC concentration.
 (C) In addition to all other taxes levied, assessed, collected, and paid in with respect to hemp-cannabinoid beverages, every licensed wholesaler shall be subject to the payment of a tax of one hundred two thousandths cent per ounce or fractional quantity thereof on each hemp-cannabinoid beverage sold and containing more than five (5) milligrams of an allowable THC concentration.

Amend the bill further, SECTION 41, by striking Section 61-14-900(D) and inserting:

 (D) Producers, manufacturers, and importers of hemp-cannabinoid beverages are declared to be in business on one tier, a wholesaler on another tier, and a retailer on another tier. For the purposes of this section, a manufacturer or producer of hemp-cannabinoid beverages is declared to be a tier one business, a wholesaler or importer owned solely by a wholesaler is declared to be a tier two business, and a retailer is declared to be a tier three business. A person or entity in the hemp-cannabinoid beverage business on one tier or a person acting directly or indirectly on his behalf may not have ownership or financial interest in a hemp-cannabinoid beverage business operated on another tier. For purposes of this subsection, ownership or financial interest does not include the ownership of less than one percent of the stock in a corporation with a class of voting shares registered with the Securities and Exchange Commission or other federal agency under Section 12 of the Securities and Exchange Act of 1934, as amended, or a consulting agreement under which the consultant has no control over business decisions and whose compensation is unrelated to the profits of the business.

Amend the bill further, SECTION 41, by striking Section 61-14-900(F) and inserting:

 (F) A person or entity on one tier that has ownership or financial interest on January 1, 2026, in a business that upon the effective date of this section will be an entity on another tier has two years from the effective date of this section to divest the interest in either of the entities so as to only have ownership or financial interest in one tier as described in subsection (D). This section does not exempt any requirements of the three-tier system as described in Title 61. For purposes of this subsection, ownership or financial interest does not include the ownership of less than one percent of the stock in a corporation with a class of voting shares registered with the Securities and Exchange Commission or other federal agency under Section 12 of the Securities and Exchange Act of 1934, as amended, or a consulting agreement under which the consultant has no control over business decisions and whose compensation is unrelated to the profits of the business.

Amend the bill further, SECTION 41, by striking Section 61-14-920 and inserting:

 Section 61-14-920. Hemp-cannabinoid beverages in a 750 mL750-milliliter bottle or a single serving can with 10 mgmore than five milligrams but not more than ten milligrams of the allowable THC concentration per serving may be sold only in licensed alcoholic liquor stores.

Renumber sections to conform.

Amend title to conform.