Senator Davis proposes the following amendment (SR-3924.CEM0038S):

Amend the bill, as and if amended, SECTION 1, by adding subsections (F) through (K) to read:

 (F) The State has a substantial interest in ensuring that hemp-derived cannabinoid products with psychoactive properties are subject to appropriate regulatory oversight to protect public health, safety, and welfare, while recognizing that such products may offer genuine therapeutic value to patients under the guidance of a licensed physician. A regulatory framework that channels therapeutic hemp products exclusively through licensed dispensaries operating under physician supervision serves these interests by ensuring product safety, preventing diversion, and protecting vulnerable populations, including minors.
 (G) The State has a substantial interest in protecting its citizens from unregulated hemp-derived products of unknown potency, purity, and provenance. Many such products currently circulate in South Carolina outside any regulatory framework, without mandatory testing, without age verification requirements, and without meaningful oversight. The General Assembly finds that establishing a licensed dispensary system with mandatory testing, labeling, and physician certification requirements directly serves the State's interest in consumer protection and public health.
 (H) The State has a substantial interest in supporting South Carolina's agricultural and hemp-processing industries. South Carolina farmers and hemp program participants have developed significant expertise and infrastructure in hemp cultivation and production. The General Assembly finds that a therapeutic hemp dispensary licensing system that gives priority consideration to South Carolina hemp farmers and existing hemp program participants advances the State's economic interests while ensuring that the regulatory framework is administered by those with demonstrated knowledge of the hemp supply chain.
 (I) The State has a substantial interest in ensuring that therapeutic hemp products are distinguished from hemp-cannabinoid beverages and from unregulated over-the-counter hemp products. The General Assembly finds that therapeutic hemp products in non-beverage dosage forms, including capsules, tinctures, gummies, oils for inhalation, and topical preparations, are appropriately regulated under the State's agricultural and health laws rather than under the State's alcohol beverage laws, given the distinct manner in which such products are produced, distributed, and consumed, and the distinct therapeutic purposes for which they are used.
 (J) The State has a substantial interest in prioritizing the health and safety of children with respect to all psychoactive hemp-derived products. The General Assembly is committed to ensuring that therapeutic hemp products are accessible only to adults and to minors for whom a physician has certified therapeutic need, and that robust age verification and dispensary oversight requirements are strictly enforced to prevent access by persons under the age of twenty-one.
 (K) It is the intent of the General Assembly, with respect to therapeutic hemp products, to:
  (1) establish a safe, regulated, and accountable supply chain for therapeutic hemp products through a licensed dispensary system;
  (2) ensure that all therapeutic hemp products sold in this State meet rigorous testing standards for potency, purity, and freedom from contaminants;
  (3) require physician oversight to protect patients from unguided self-medication with psychoactive substances while preserving patient access to potentially beneficial cannabinoid therapies;
  (4) support South Carolina's hemp industry by prioritizing existing hemp program participants and farmers in the dispensary licensing process; and
  (5) prohibit synthetic cannabinoids and ensure that only naturally derived hemp cannabinoids are used in therapeutic hemp products, consistent with the State's broader policy of prohibiting synthetic cannabis products.

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. Nothing in this chapter or in Title 61 shall be construed to prohibit, regulate, or restrict therapeutic hemp products as defined and authorized under Sections 46-55-200 through 46-55-260.

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

  (xii) any other substance that contains THC that, when ingested, inhaled, or absorbed into the body, produces an intoxicating or psychoactive reaction.
 (4) "Caregiver" means a person who is at least twenty-one years of age and has been designated in writing by the guardian of a minor or incapacitated qualifying patient to obtain therapeutic hemp products on behalf of that patient, and whose name appears on the written physician certification issued for that patient

Amend the bill further, SECTION 3, by striking Section 46-55-10(4), (5), (6), (7), (8), (9), (10), and (11) and inserting:

 (2)(4) (5) "Commercial sales'" means the sale of hemp products in the stream of commerce, at retail, wholesale, and online.
 (3)(5)(6) "Commissioner" means the Commissioner of the South Carolina Department of Agriculture.
 (4)(6)(7) "Cultivating" means planting, watering, growing, and harvesting a plant or crop.
 (7)(8) "Delta-8" means delta-8 tetrahydrocannabinol.
 (8)(9) "Delta-9" means delta-9 tetrahydrocannabinol.
 (9)(10) "Delta-10" means delta-10 tetrahydrocannabinol.
 (5)(10)(11) "Department" means the South Carolina Department of Agriculture.
 (12) "Dispensary" or "therapeutic hemp dispensary" means a retail location licensed by the Department of Agriculture to dispense therapeutic hemp products to qualifying patients and their designated caregivers.
 (11)(13) "Division" means the South Carolina Law Enforcement Division.

Amend the bill further, SECTION 3, by striking Section 46-55-10(12), (13), (14), (15), (16), (17), (18), (19), (20), and (21) and inserting:

 (7)(12)(14) "Handling" means possessing or storing hemp for any period of time. "Handling" also 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)(13)(a)(15)(a) "Hemp" or "industrial hemp" means the plant Cannabis sativa L. and any part of that plant, including the nonsterilized 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 hempa total delta-9 THC concentration of not more than 0.3 percent on a dry weight basis. . Hemp shall be considered an agricultural commodity.
  (b) "Hemp" does not include:
   (i) any viable seeds from a Cannabis sativa L. plant that exceeds a total THC concentration of 0.3 percent in the plant on a dry weight basis; or
   (ii) any intermediate hemp-derived cannabinoid products containing:
    (I) cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant;
    (II) cannabinoids that:
     (aa) are capable of being naturally produced by a Cannabis sativa L. plant; and
     (bb) were synthesized or manufactured outside the plant; or
    (III) more than 0.3 percent combined total of:
     (aa) total tetrahydrocannabinols (including tetrahydrocannabinolic acid); and
     (bb) any other cannabinoids that have similar effects (or are marketed to have similar effects) on humans or animals as a tetrahydrocannabinol (as determined by the Secretary of Health and Human Services); or
   (iii) any intermediate hemp-derived cannabinoid products which are marketed or sold as a final product or directly to an end consumer for personal or household use; or
   (iv) any final hemp-derived cannabinoid products containing:
    (I) cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant;
    (II) cannabinoids that:
     (aa) are capable of being naturally produced by a Cannabis sativa L. plant; and
     (bb) were synthesized or manufactured outside the plant; or
    (III) greater than 0.4 milligrams combined total per container of:
     (aa) total tetrahydrocannabinols (including tetrahydrocannabinolic acid); and
     (bb)(III) any other cannabinoids that have similar effects (or are marketed to have similar effects) on humans or animals as a tetrahydrocannabinol (as determined by the Secretary of Health and Human Services
 (14)(16) "Hemp product" means all products containing cannabidiol with a total delta-9 THC concentration of not more than 0.3 percent on a dry weight basis 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 human and animal consumption, cloth, cordage, fiber, fuel, paint, paper, particleboard, plastics, and any product containing one or more hemp-derived cannabinoids such as, but not limited to: CBD, CBG, CBC, or CBN provided the product does not cause a psychoactive reaction. Unprocessed or raw plant material, including nonsterilized hemp seeds, is not considered a hemp product.
 (9)(15)(17) "Hemp-cannabinoid products" only 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 nonsterilized hemp seeds, is not considered a hemp product permitted under Title 61 for human consumption.
 (10)(16)(18) "Licensee" means an individual or business entity possessing a license issued by the department under the authority of this chapter to cultivate, handle, or process hemp.
 (11)(17)(19) "Marijuana" has the same meaning as in Section 44-53-110 and does not include tetrahydrocannabinol in hemp, or hemp products, or therapeutic hemp products as defined herein.
 (20) "Physician certification" means a written document issued by a licensed physician, in the course of a bona fide physician-patient relationship, that meets the requirements of Section 46-55-210 and authorizes a named qualifying patient to obtain therapeutic hemp products.
 (12)(18)(21) "Processing" means converting an agricultural commodity into a marketable form.
  (19)(22) "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.
 (23) "Qualifying patient" means a person who has received a physician certification issued under Section 46-55-210.
 (13)(20)(24) "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)(21)(25) "THC" means tetrahydrocannabinol.
 (26) "Therapeutic hemp product" means a hemp-derived cannabinoid product authorized under Section 46-55-200, including capsules, tinctures, gummies, oils for inhalation, and topical preparations, containing no more than ten milligrams of naturally derived delta-9 tetrahydrocannabinol per serving and no synthetic or semi-synthetic cannabinoids, intended for human use by a qualifying patient pursuant to a physician certification. Therapeutic hemp products may be psychoactive. Therapeutic hemp products are not hemp-cannabinoid beverages and are not subject to Title 61.

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

SECTION X. Chapter 55, Title 46 of the S.C. Code is amended by adding:

 Section 46-55-95. Nothing in this chapter and nothing in Title 61 shall be construed to prohibit or restrict the manufacture, testing, distribution, dispensing, acquisition, or possession of therapeutic hemp products as authorized under Sections 46-55-200 through 46-55-260. To the extent of any conflict between the provisions of Title 61 and the provisions of Sections 46-55-200 through 46-55-260 as applied to therapeutic hemp products, the provisions of Sections 46-55-200 through 46-55-260 shall control.

SECTION X. Chapter 55, Title 46 of the S.C. Code is amended by adding:

Article 2

Therapeutic Hemp Products

 Section 46-55-200. (A) "Therapeutic hemp product" means a hemp-derived cannabinoid product intended for human use in the form of capsules, tinctures, gummies, oils for inhalation, or topical preparations that:
  (1) contain no more than ten milligrams of naturally hemp-derived delta-9 THC per serving;
  (2) contain only naturally derived hemp cannabinoids and no synthetic or semi-synthetic cannabinoids;
  (3) are dispensed exclusively by a licensed therapeutic hemp dispensary to a qualifying patient or the qualifying patient's caregiver pursuant to a valid physician certification; and
  (4) are not hemp-cannabinoid beverages and are not regulated under Title 61.
 (B) Therapeutic hemp products may be psychoactive.
 (C) All therapeutic hemp products must be derived from hemp as defined in Section 46-55-10 and must comply with all testing and packaging requirements established in this article.
 (D) The sale or distribution of therapeutic hemp products in any form other than as authorized by this article is prohibited. Any unauthorized sale, distribution, or possession with intent to distribute therapeutic hemp products is subject to the same penalties applicable to marijuana under Chapter 53, Title 44.

 Section 46-55-210. (A) A therapeutic hemp product may only be dispensed to a qualifying patient who possesses a valid written physician certification issued in accordance with this section. If the qualifying patient is a minor or incapacitated person, the physician certification must also identify the designated caregiver who is authorized to obtain the therapeutic hemp product on the patient's behalf.
 (B) A physician certification must:
  (1) be issued in the course of a bona fide physician-patient relationship;
  (2) include the qualifying patient's name and identifying information, and, if applicable, the designated caregiver's name;
  (3) state the physician's medical opinion as to why the use of a hemp-derived cannabinoid product is being recommended for that patient;
  (4) state that the issuing physician has determined that the potential benefits of cannabinoid therapy outweigh the potential risks for that patient; and
  (5) be renewed at least annually.
 (C) A physician issuing certifications under this section must:
  (1) hold an active, unrestricted South Carolina medical license;
  (2) hold active state and federal controlled substance registrations; and
  (3) maintain documentation of the physician-patient relationship and the basis for the certification in the patient's medical record.
 (D) A physician issuing certifications under this section may not:
  (1) hold an ownership interest in a therapeutic hemp dispensary;
  (2) receive remuneration from a therapeutic hemp dispensary, whether directly or indirectly; or
  (3) refer a qualifying patient to a specific therapeutic hemp dispensary.
 (E) A physician certification is not a prescription for purposes of state or federal law and does not authorize the acquisition of a controlled substance. It authorizes only the acquisition of therapeutic hemp products as defined in this chapter from a licensed therapeutic hemp dispensary.

 Section 46-55-220. (A) The South Carolina Department of Agriculture shall establish and administer a licensing program for therapeutic hemp dispensaries consistent with the requirements of this section and any regulations promulgated pursuant to Section 46-55-260.
 (B) A therapeutic hemp dispensary may dispense therapeutic hemp products only to:
  (1) a qualifying patient who presents a valid physician certification and valid government-issued photo identification; or
  (2) a designated caregiver of a qualifying patient who presents the qualifying patient's valid physician certification, the caregiver's own valid government-issued photo identification, and documentation of the caregiver's designation.
 (C) A separate license is required for each physical retail location at which a licensee dispenses therapeutic hemp products.
 (D) The annual license fee for each therapeutic hemp dispensary location is five thousand dollars, payable to the Department of Agriculture.
 (E) In issuing therapeutic hemp dispensary licenses, the Department of Agriculture shall give priority consideration to:
  (1) individuals or business entities that have previously held a license and actively participated in the South Carolina Industrial Hemp Program under this chapter;
  (2) South Carolina farmers actively engaged in the cultivation of hemp under this chapter; and
  (3) individuals or business entities that, as of the effective date of this act, operate a retail establishment whose primary business is the sale of hemp-derived cannabinoid products, as evidenced by the fact that hemp-derived cannabinoid product sales constitute the majority of the establishment's gross retail revenue. For purposes of this subdivision, an establishment whose hemp-derived cannabinoid product sales are incidental to a primary business in another retail category, including but not limited to motor fuel sales, convenience retail, grocery, or tobacco, does not qualify for priority consideration under this subdivision.
 (F) The total number of therapeutic hemp dispensary licenses statewide may not exceed two hundred at any one time. The Department of Agriculture shall by regulation establish a process for the allocation and reissuance of licenses, including procedures for addressing license vacancies.
 (G) A therapeutic hemp dispensary license is not transferable. Any change in ownership or controlling interest requires a new application and approval by the Department of Agriculture.

 Section 46-55-230. (A) Before dispensing a therapeutic hemp product, a therapeutic hemp dispensary must verify:
  (1) the validity of the physician certification presented by the qualifying patient or designated caregiver; and
  (2) the identity of the qualifying patient or designated caregiver by examining valid government-issued photo identification.
 (B) A dispensary may not sell or transfer therapeutic hemp products to any person who does not present both a valid physician certification and valid government-issued photo identification as required by this section.
 (C) A dispensary shall maintain a record of each sale that includes, at a minimum:
  (1) the qualifying patient's government-issued identification number or other unique identifier sufficient to identify the patient without retaining a copy of the identification document;
  (2) the physician certification number or other unique identifier;
  (3) a description of the therapeutic hemp product dispensed, including its form (capsule, tincture, gummy, or topical), the batch number, and the cannabinoid content;
  (4) the quantity dispensed; and
  (5) the date of the sale.
 (D) Records required by this section must be maintained for not less than five years and must be made available for inspection by the Department of Agriculture or law enforcement upon request.
 (E) A therapeutic hemp dispensary may not sell or dispense therapeutic hemp products to a person under the age of twenty-one. A person who violates this subsection is subject to the penalties provided in Section 46-55-200 and is subject to license revocation.

 Section 46-55-240. (A) All therapeutic hemp products must be tested by an independent testing laboratory that meets the requirements of Section 61-14-510, applied mutatis mutandis, for:
  (1) cannabinoid potency, including a full cannabinoid profile and verification that the total delta-9 THC content per serving does not exceed ten milligrams;
  (2) pesticides;
  (3) heavy metals, including arsenic, cadmium, mercury, and lead;
  (4) microbial contamination, including pathogenic microbials such as E. coli, salmonella, and mold; and
  (5) residual solvents.
 (B) A certificate of analysis meeting the requirements of Section 61-14-520(B), applied mutatis mutandis, must be completed for each batch prior to the sale or dispensing of any therapeutic hemp product from that batch.
 (C) A licensed therapeutic hemp dispensary must maintain a current copy of the certificate of analysis for each batch of therapeutic hemp product in its inventory and must make that certificate available for inspection by the Department of Agriculture or law enforcement upon request.

 Section 46-55-250. (A) All therapeutic hemp products must:
  (1) be sold in child-resistant packaging that meets applicable Consumer Product Safety Commission standards;
  (2) not be packaged or marketed in a manner that is attractive to children, and may not bear cartoon-like characters, imagery, or designs that could reasonably appeal to children;
  (3) not be modeled after or marketed to resemble a brand of product primarily consumed by or marketed to children; and
  (4) not be packaged in any way that violates federal trademark or copyright laws.
 (B) Each unit of therapeutic hemp product must be clearly labeled to display, at a minimum:
  (1) the type of product (capsule, tincture, gummy, or topical);
  (2) a complete list of ingredients;
  (3) the total milligrams of delta-9 THC per serving and per container;
  (4) the serving size;
  (5) the batch number, corresponding to the certificate of analysis;
  (6) the expiration date;
  (7) the name and address of the manufacturer; and
  (8) the following warnings:
   (a) 'FOR USE ONLY BY QUALIFYING PATIENTS WITH A VALID PHYSICIAN CERTIFICATION. NOT FOR SALE TO PERSONS UNDER 21.';
   (b) 'Use of this product may impair your ability to drive or operate machinery.';
   (c) 'Consumption during pregnancy or breastfeeding may be harmful.'; and
   (d) 'This product has not been approved by the FDA for any medical use.'

 Section 46-55-260. (A) The Department of Agriculture may promulgate regulations necessary to implement this article, including regulations establishing:
  (1) licensing procedures, application requirements, and renewal processes for therapeutic hemp dispensary licenses;
  (2) inspection standards and procedures for licensed dispensaries;
  (3) recordkeeping requirements consistent with Section 46-55-230(D);
  (4) product testing protocols and laboratory certification standards consistent with Section 46-55-240; and
  (5) any other regulations necessary to protect the health, safety, and welfare of qualifying patients and the public.
 (B) The Department of Agriculture may not accept applications for therapeutic hemp dispensary licenses until the regulations required by subsection (A) have been promulgated and become effective.

Amend the bill further, by striking SECTION 47 and inserting:

SECTION 47. Pre-existing stock, purchased prior to the effective date of this act, may be sold through November 12, 2026 for a period of ninety days following the effective date of this act, provided a certificate of analysis is available and sales are prohibited to anyone under the age of twenty-one. Therapeutic hemp products existing in the stream of commerce on the effective date of this act may continue to be sold for a period of ninety days following the date on which the regulations required by Section 46-55-260(A) become effective, provided they are sold in compliance with the age restriction set forth in Section 46-55-230(E) and a certificate of analysis is available; provided, however, that after such ninety-day period, all therapeutic hemp products may only be dispensed by a licensed therapeutic hemp dispensary pursuant to Sections 46-55-200 through 46-55-260.

Renumber sections to conform.

Amend title to conform.