Senator Johnson proposes the following amendment (SJ-3924.MB0065S):
Amend the bill, as and if amended, 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(5) and inserting:
(3)(5) "Commissioner" means the Commissioner of the South Carolina Department of Agriculture.Amend the bill further, SECTION 3, by striking Section 46-55-10(10) and inserting:
(5)(10) "Department" means the South Carolina Department of Agriculture.Amend the bill further, SECTION 3, by striking Section 46-55-10(6) and inserting:
(6)() "Federally defined THC level for hemp" means a delta-9 THC concentration of not more than 0.3 percent on a dry weight basis, or the THC concentration for hemp defined in 7 U.S.C. SECTION 5940, whichever is greater.Amend the bill further, SECTION 3, by striking Section 46-55-10(13)(bb)(iv)(II)(bb) and inserting:
(bb) were synthesized or manufactured outside the plant; or.Amend the bill further, SECTION 3, by deleting Section 46-55-10(13)(bb)(iv)(III) from the bill.
Amend the bill further, SECTION 3, by striking Section 46-55-10(17) and inserting:
(11)(17) "Marijuana" has the same meaning as in Section 44-53-110 and does not include tetrahydrocannabinol in hemp or hemp products as defined herein or hemp beverages or chewables as defined in Section 61-14-20.Amend the bill further, SECTION 5, by striking Section 61-2-60(1), (2), (3), (4), and (5) and inserting:
(1) regulations for the application and issuance of alcoholic liquor and hemp-cannabinoid beverages product licenses, permits, and certificates;(2) regulations to prevent the unlawful manufacture, bottling, sale, distribution, transportation, and importation of alcoholic liquors and hemp-cannabinoid beveragesproducts;
(3) regulations necessary to effect an equitable distribution of alcoholic liquors and hemp-cannabinoid beverages products in this State;
(4) regulations for the analysis of alcoholic liquors and hemp-cannabinoid beverages products sold in this State and for a procedure for obtaining the samples for this purpose;
(5) regulations governing the administration and enforcement of provisions relating to producers and wholesalers of beer and wine and hemp-cannabinoid beverages products;
Amend the bill further, SECTION 6, by striking Section 61-2-100(I) and inserting:
(I) The department may not issue a wholesale beer and wine or a hemp-cannabinoid beverage product permit pursuant to this title unless the applicant is a legal resident of the United States and has been a legal resident of this State and has maintained his principal place of abode in this State for at least thirty days before the date of the application.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 product 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 beverageproduct 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 product wholesaler license, the person must also have a wholesale license for alcoholic liquor or beer and wine and continue purchase, store, keep, possess, import into this State, transport, sell, and deliver both hemp-cannabinoid beveragesproducts and beer, wine, or liquor in the new location.Amend the bill further, SECTION 9, Section 61-2-150, by striking the MACROBUTTON NoMacro <
Amend the bill further, SECTION 10, by striking Section 61-2-170 and inserting:
Section 61-2-170. The department may not generate license fees to be deposited in the general fund of the State through the issuance of licenses or permits for on or off premises consumption which authorize alcoholic liquors, beer, or wine, or hemp-cannabinoid beverages products to be sold on a drive-through or curb service basis.Amend the bill further, SECTION 11, by striking Section 61-2-30 and inserting:
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 beveragesproducts, beer, and wine. Salaries of these personnel must be set by the department and the division, as applicable.Amend the bill further, SECTION 12, Section 61-2-80, by striking the first undesignated paragraph and inserting:
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 beveragesproducts, 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 products and liquor regulation except as it relates to hours of operation more restrictive than those set forth in this title.Amend the bill further, SECTION 13, by striking Section 61-2-105 and inserting:
Section 61-2-105. Notwithstanding another provision of law, all initial alcoholic liquor, hemp-cannabinoid beverage product, 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.Amend the bill further, SECTION 14, by striking Section 61-2-175(A) and inserting:
(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 products 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.Amend the bill further, by deleting SECTIONS 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, and 37 from the bill.
Amend the bill further, SECTION 38, by striking Section 61-6-20(1)(a) and inserting:
(1)(a) "Alcoholic liquors" or "alcoholic beverages" means any hemp-cannabinoid beverage products that contains more than five milligrams of allowable THC concentration but not more than ten milligrams of allowable THC concentration, spirituous malt, vinous, fermented, brewed (whether lager or rice beer), or other liquors or a compound or mixture of them, including, but not limited to, a powdered or crystalline alcohol, by whatever name called or known, which contains alcohol and is used as a beverage for human consumption, but does not include:(i) wine when manufactured or made for home consumption and which is not sold by the maker of the wine or by another person; or
(ii) a beverage declared by statute to be nonalcoholic or nonintoxicating.
Amend the bill further, SECTION 39, by striking Section 61-6-120(A) and inserting:
(A) The department shall not grant or issue any license provided for in this article, Article 5, or Article 7 of this chapter or Chapter 14 of this title, as applicable to hemp-cannabinoid beverages products with an allowable THC concentration of more than five milligrams up to ten milligrams, if the place of business is within three hundred feet of any church, school, or playground situated within a municipality or within five hundred feet of any church, school, or playground situated outside of a municipality. Such distance shall be computed by following the shortest route of ordinary pedestrian or vehicular travel along the public thoroughfare from the nearest point of the grounds in use as part of such church, school, or playground, which, as used herein, shall be defined as follows:(1) "church", an establishment, other than a private dwelling, where religious services are usually conducted;
(2) "school", an establishment, other than a private dwelling, where the usual processes of education are usually conducted; and
(3) "playground", a place, other than grounds at a private dwelling, which is provided by the public or members of a community for recreation.
The above restrictions do not apply to the renewal of licenses and they do not apply to new applications for locations which are licensed at the time the new application is filed with the department.
Amend the bill further, SECTION 40, by striking Section 61-6-185(A) and inserting:
(A) A person residing in the county in which a retail liquor license or retail hemp-cannabinoid beverage product license is requested to be granted, or a person residing within five miles of the location for which a retail liquor license is requested, may protest the issuance or renewal of the license if he files a written protest providing:(1) the name, address, and telephone number of the person filing the protest;
(2) the name of the applicant for the license and the address of the premises sought to be licensed, or the name and address of the license holder if the application is for renewal;
(3) the specific reasons why the application should be denied; and
(4) whether or not he wishes to attend a contested case hearing before the Administrative Law Court.
Amend the bill further, SECTION 41, by striking Section 61-6-505(A) and inserting:
(A) A person who purchases or acquires by lease, inheritance, divorce decree, eviction, or otherwise a retail business which sells alcoholic beverages from a holder of a retail liquor license or a hemp-cannabinoid beverage product retail license at the business, upon initiating the application process for a permanent retail liquor license, may be issued a temporary retail liquor license by the department at the time of the purchase or acquisition if the location for which the temporary license is sought is not considered by the department to be a public nuisance and:(1) the applicant currently holds a valid retail liquor license, and a retail hemp-cannabinoid beverage product license, as applicable; or
(2) the applicant has had a criminal history background check conducted by the State Law Enforcement Division within the past thirty days.
Amend the bill further, SECTION 42, by striking Section 61-6-900 and inserting:
Section 61-6-900. In the event of a licensee's death, except in the case of a license issued to more than one person, the personal representative of the deceased licensee may, with the consent of the probate court and upon permit of the department, continue the operation of the business covered by the license. If the personal representative elects to discontinue the business or if the department does not issue a permit for its continuance, the unearned portion of the license tax, computed on the basis of the cost of the license per month for the period for which the license was issued, must be refunded to the personal representative. Alcoholic liquors, including hemp-cannabinoid beveragesproduct, of the deceased which are subject to the control of the personal representative may be sold by him as provided in Section 61-6-950.Amend the bill further, SECTION 44, by striking Section 61-6-4000 and inserting:
Section 61-6-4000. This article, except Section 61-6-4720, is complementary to and not in conflict with the laws providing for the lawful sale of beer, hemp-cannabinoid beveragesproducts, wines, and other vinous, fermented, or malt liquors.Amend the bill further, SECTION 45, MACROBUTTON NoMacro <
Amend the bill further, SECTION 45, by striking Section 61-14-10(1)(a) and (b) and inserting:
(a) not more than five milligrams on a liquid weight basis in a twelve-ounce single serving container sold in a retail store; or(b)(a) more than five milligrams but not more than ten milligrams on a liquid weight basis per serving, which can be:
(i) up to one and one-half of an ounce, in a 750-milliliter container sold in a liquor store; or
(ii) a twelve-ounce single serving container sold in a liquor store.; or
(iii) one hemp gelatin chewable.
Amend the bill further, SECTION 45, by striking Section 61-14-10(4) and inserting:
(4) "Certificate of analysis" means a document issued by an independent testing laboratory, which provides information about the chemical composition of a particular batch of a hemp-cannabinoid beverage or hemp gelatin chewable.Amend the bill further, SECTION 45, Section 61-14-10(1)(b)(iii), by adding a subitem to read:
(9) "Hemp gelatin chewable," "chewable," or "gummy" is an edible product that contains intoxicating alcoholic liquid converted into a gelatin substance subject to the exercise of the police power of the General Assembly, pursuant to Section 1, Article VIII-A of the South Carolina Constitution. Chewables may contain no more than ten milligrams per serving of hemp gelatin chewable an allowable THC concentration per chewable or gummy and must be sold in containers of no more than four chewables per package, ten milligrams total THC per package.Amend the bill further, SECTION 45, by striking Section 61-14-10(9), (10), (11), (12), (13), (14), (15), (16), and (17) and inserting:
(9)(10) "Manufacture" or "produce" means to compound, blend, extract, infuse, cook, or otherwise make or prepare hemp-cannabinoid beverages, or chewables including the process of extraction, infusion, packaging, repackaging, labeling, and relabeling of hemp-cannabinoid beverages or chewables.(10)(11) "Manufacturer" means a person or entity who produces hemp-cannabinoid beverages products for consumption and not for resale, including compounding, blending, extracting, infusing, cooking, packaging, labeling, or otherwise making or preparing hemp-cannabinoid beverages.
(11)(12) "Producer" as used in this chapter includes a manufacturer, a bottler, or importer of hemp-cannabinoid beverages or chewables, into the United States.
(12) (13) "Proof of age" means a valid driver's license or other government-issued identification card that contains a photograph of the person and confirms the person's age is twenty-one years or older.
(13)(14) "Retailer" means a person or entity that sells hemp-cannabinoid beverages or chewables for consumption and not for resale and is a holder of a license issued under the provisions of this chapter, other than a manufacturer or wholesaler.
(14)(15) "Retail establishment" means a place of business open to the general public for the sale of goods or services.
(16) "Safe harbor hemp product" means a hemp-derived compound or cannabinoid whether a finished product or in the process of being produced, that is manufactured, produced, packaged, processed, prepared, treated, transported, or held in this state for export from this state but that is not sold or distributed in this state. To be eligible for the designation as a safe harbor hemp product, the manufacturer must have a certificate of analysis of any finished product.
(17) "Safe harbor manufacturer or storage facility" means a facility that manufactures, produces, packages, processes, prepares, treats, transports, or holds a safe harbor hemp product and that:
(a) is authorized to operate in the state and maintains a valid state business license or other required state or local authorization, including under this chapter; and
(b) maintains current third-party Good Manufacturing Practices (GMP) certification for hemp products or dietary supplements issued by an independent certifying body recognized within the United States.
(18) "Safe harbor research institute or facility" means a facility with accreditation from a United States 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
(15)(19) "Serving" means a hemp-cannabinoid beverage containing either:
(a) twelve fluid ounces in a single serving container; or
(b) no more than one and one-half fluid ounces in a 750-milliliter bottle.
(c) or a chewable containing no more than ten milligrams of an allowable THC concentration per gummy
(16)(20) "THC" means tetrahydrocannabinol.
(17)(21) "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 for resale.
Article 3
Enforcement
Amend the bill further, SECTION 45, by striking Section 61-14-300(B), (C), and (D) and inserting:
(B) All hemp-cannabinoid beverages or chewables distributed into or within the State and offered for sale and sold to consumers in this State must be governed by this chapter, and where applicable Chapter 4, for hemp-cannabinoid beverages containing up to but no more than five milligrams an allowable THC concentration and Chapter 6, for hemp cannabinoid beverages products containing more than five milligrams but no more than ten milligrams of an allowable THC concentration.(C) Any hemp-cannabinoid beveragebeverages or chewables possessed, distributed, sold, or offered for sale to consumers in this State in violation of this article must be considered contraband and must be seized by law enforcement as provided for by law.
(D) The department shall administer the provisions of this chapter related to the licensing and taxation of hemp-cannabinoid beverages and chewables.
Amend the bill further, SECTION 45, by striking Section 61-14-300(F)(1), (2), (3), (4), (5), and (6) and inserting:
(1) regulations for the application and issuance of hemp-cannabinoid beverage product licenses;(2) regulations to prevent the unlawful manufacture, bottling, packaging, sale, distribution, transportation, and importation of hemp-cannabinoid beveragesproducts;
(3) regulations necessary to effect an equitable distribution of hemp-cannabinoid beveragesproducts in this State;
(4) regulations for the analysis of hemp-cannabinoid beverages products sold in this State and for a procedure for obtaining the samples for this purpose;
(5) regulations governing the administration and enforcement of provisions relating to producers and wholesalers of hemp-cannabinoid beveragesproducts; and
(6) regulations for the application for and issuance of hemp-cannabinoid product licenses and the sale, distribution, promotion, and shipment of hemp-cannabinoid beverages products into and within this State.
Amend the bill further, SECTION 45, Section 61-14-320, by striking the MACROBUTTON NoMacro <
Amend the bill further, SECTION 45, by striking Section 61-14-320(C)(1) and inserting:
(C)(1) It is unlawful for a person under the age of twenty-one to purchase, attempt to purchase, consume, or knowingly possess hemp-cannabinoid beveragesproducts. Possession is prima facie evidence that it was knowingly possessed. It is also unlawful for a person to falsely represent his age for the purpose of procuring hemp-cannabinoid beveragesproducts.Amend the bill further, SECTION 45, by striking Section 61-14-320(D) and inserting:
(D) The manufacture, production, distribution, importation, sale or possession of a hemp-cannabinoid beverage or hemp gelatin chewable containing more than the allowable THC concentration is prohibited by law and punishable in the same manner as marijuana pursuant to Sections 44-53-190 and 44-53-370, unless otherwise deemed a safe harbor hemp product by the department.Amend the bill further, SECTION 45, by striking Section 61-14-330(A) and (B) and inserting:
(A) A person engaged in the business of selling retail hemp-cannabinoid beveragesproducts must post in each location that he has obtained a license, a sign with the following words printed: "The possession of hemp-cannabinoid beveragesproducts by a person under twenty-one years of age is a criminal offense under the laws of this State, and it also is unlawful for a person to knowingly give false information concerning his age for the purpose of possessing or acquiring hemp-cannabinoid beveragesproducts." The department shall proscribe by regulation the size of the lettering and the location of the sign on the seller's premises.(B) A retail seller of hemp-cannabinoid beverages or hemp gelatin chewable who fails to display the sign required by this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days.
Amend the bill further, SECTION 45, by striking Section 61-14-340(A)(1) and (2) and inserting:
(1) undertake any task under the influence of hemp-cannabinoid beverages or hemp gelatin chewable when doing so would constitute negligence or professional malpractice; or(2) operate, navigate, or be in actual physical control of a motor vehicle, aircraft, motorized watercraft, or any other vehicle while under the influence of a hemp-cannabinoid beverage or hemp gelatin chewable .
Amend the bill further, SECTION 45, by striking Section 61-14-340(B) and inserting:
(B) This article does not exempt a person from prosecution for a criminal offense related to impairment or intoxication resulting from the use of hemp-cannabinoid beverages or hemp gelatin chewable or relieve a person from any requirement under the law to submit to a breath, blood, urine, oral swab, or other test to detect the presence of a controlled substance.Amend the bill further, SECTION 45, by striking Section 61-14-350 and inserting:
Section 61-14-350. It is unlawful for a person to have in his possession, except in the trunk or luggage compartment, a hemp-cannabinoid beverage product in an open container in a motor vehicle of any kind while located upon the public highways or highway rights-of-way of this State. This section must not be construed to prohibit the transporting of hemp-cannabinoid beverage products in a closed container in the trunk or luggage compartment, and this section does not apply to vehicles parked in legal parking places during functions such as sporting events where law enforcement officers are on duty to perform traffic control duties. A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days.Amend the bill further, SECTION 45, Section 61-14-360, by striking the MACROBUTTON NoMacro <
(1) it is unlawful to sell hemp-cannabinoid beverages in bottles or hemp gelatin chewables from liquor stores on Sundays, on Christmas Day, or during periods proclaimed by the Governor in the interest of law and order or public morals and decorum. Full authority to proclaim these periods is conferred upon the Governor in addition to all other powers conferred upon the Governor.
(2) it is unlawful for a retailer to deliver hemp-cannabinoid produucts directly to a person's residence.
Amend the bill further, SECTION 45, by deleting Section 61-14-360(A)(2) from the bill.
Amend the bill further, SECTION 45, by striking Section 61-14-500(A), (B), and (C) and inserting:
(A) A hemp-cannabinoid beverage or hemp gelatin chewable may not be distributed into or within the State or offered for sale or sold at retail within the State, unless the product:(1) has a corresponding certificate of analysis as described in Section 61-14-520, issued by an independent testing laboratory that tests the batch from which the hemp-cannabinoid beverage or hemp gelatin chewable was produced;
(2) is in the original sealed container as packaged by the producer and meets the packaging restrictions in Section 61-14-530;
(3) meets the serving size and product content requirements, including total THC, described in this chapter; and
(4) meets the labeling requirements described in Section 61-14-540.
(B) Every manufacturer, producer, importer, and distributor shall maintain and make immediately available for inspection to any law enforcement officer or authorized agent of the department a copy of the certificate of analysis of each hemp-cannabinoid beverage or hemp gelatin chewable being distributed by a distributor or offered for sale by a retailer.
(C) Any person, including any servant, agent, or employee of the person who distributes, sells, or offers for sale any hemp-cannabinoid beverage or hemp gelatin chewable in violation of this section is subject to the following penalties:
(1) for a first offense within a three-year period, is guilty of a misdemeanor and, upon conviction, must be imprisoned not more than two years, or fined not more than five thousand dollars, or both;
(2) for a second offense within a three-year period, is guilty of a felony and, upon conviction, must be imprisoned not more than five years or fined not more than ten thousand dollars, or both; and
(3) for a third or subsequent offense within a three-year period, is guilty of a felony and, upon conviction, must be imprisoned not more than five years or fined not more than ten thousand dollars, or both. A third offense within a three-year period subjects the licensee of the retailer to revocation by the department of all licenses under Title 61.
Amend the bill further, SECTION 45, by striking Section 61-14-520(A) and inserting:
(A) The protocols for testing a hemp-cannabinoid beverage or a hemp gelatin chewable by an independent testing laboratory must include the following, as well as a determination of corresponding tolerance limits:(1) a cannabinoid profile of content and potency including, but not limited to, all the following:
(a) total THC (THC+THCA);
(b) total CBD (CBD+CBDA);
(c) other detectable cannabinoids; and
(d) total THC/CBD ratio; if applicable;
(2) terpene profiles;
(3) heavy metals including, but not limited to, arsenic, cadmium, mercury, and lead;
(4) chemical contamination, such as residual solvents remaining after extraction, and concentration;
(5) microbials including, but not limited to, pathogenic microbials such as E. coli, salmonella, and mold;
(6) mycotoxins; and
(7) residual insecticides, fungicides, herbicides, and growth regulators used during cultivation.
Amend the bill further, SECTION 45, by striking Section 61-14-520(C) and inserting:
(C) The manufacturer must include a scannable barcode or quick response code linked to the certificate of analysis on the label on the hemp-cannabinoid beverage or hemp gelatin chewable container.Amend the bill further, SECTION 45, by striking Section 61-14-530(A) and (B) and inserting:
(A) Packaging of hemp-cannabinoid beverages or hemp gelatin chewables-:(1) may not bear the likeness or contain cartoon-like characteristics of real or fictional persons, animals, or fruits that appeal to children;
(2) may not be modeled after a brand or products primarily consumed by or marketed to children;
(3) may not include a statement, artwork, or design that could reasonably appeal to children or mislead an individual to believe that the package contains anything other than a hemp-cannabinoid beverage or hemp gelatin chewable, as applicable; and
(4) may not be packaged in any way that violates federal trademark or copyright laws.
(B) A person who knowingly sells, holds for sale, or distributes a hemp-cannabinoid beverage or hemp gelatin chewable that violates subsection (A):
(1) for a first offense within a three-year period, is guilty of a misdemeanor and, upon conviction, must be imprisoned not more than two years, or fined not more than five thousand dollars, or both;
(2) for a second offense within a three-year period, is guilty of a felony and, upon conviction, must be imprisoned not more than five years or fined not more than ten thousand dollars, or both; and
(3) for a third or subsequent offense within a three-year period, is guilty of a felony and, upon conviction, must be imprisoned not more than five years or fined not more than ten thousand dollars, or both. A third offense within a three-year period subjects the licensee of the retailer to revocation by the department of all licenses under Title 61.
Amend the bill further, SECTION 45, Section 61-14-540, by striking the MACROBUTTON NoMacro <
Amend the bill further, SECTION 45, by striking Section 61-14-540(9)(a) and inserting:
(a) hemp-cannabinoid beverage and hemp gelatin chewable consumption while pregnant or breastfeeding may be harmful;Amend the bill further, SECTION 45, by striking Section 61-14-540(9)(f) and inserting:
(f) hemp-cannabinoid beverages and hemp gelatin chewables are not approved for any medical use by the United States Food and Drug Administration.(g) THC is an intoxicating substance that causes a psychoactive reaction. Onsets of effects may be delayed.
(h) concurrent use with alcohol or other intoxicants increases impairment and crash risk
Article 7
Licensing; Relationship between Manufacturers, Wholesalers, and Retailers; Taxation
Amend the bill further, SECTION 45, by striking Section 61-14-700(A)(1) and (2) and inserting:
(1) A manufacturer, wholesaler, or retailer of hemp-cannabinoid beverages , hemp gelatin chewables, or safe harbor hemp products must be in possession of a valid, applicable hemp-cannabinoid product license issued by the department that has sole and exclusive power to issue hemp-cannabinoid product licenses.(2) A wholesaler or retailer of hemp-cannabinoid beverages or hemp gelatin chewables must be in possession of a valid applicable beer and wine or liquor license issued by the department.
Amend the bill further, SECTION 45, by striking Section 61-14-700(B)(1), (2), and (3) and inserting:
(1) hemp-cannabinoid beverageproduct manufacturer's license, which authorizes the licensee to manufacture :(a) hemp-cannabinoid beverages and hemp gelatin chewables and to sell, deliver, or ship hemp-cannabinoid beverages and hemp gelatin chewables in accordance with regulations in bottles or cans or containers to a person in this State who has a wholesaler's license issued pursuant to this article and in bottle or cans or containers to person outside this State.; or
(b) manufacture safe harbor hemp products and to sell, deliver, or ship safe harbor hemp products in accordance with this chapter.
However, deliveries or shipmentsthe manufacturer may not delivery or ship a product into be made into another state whose laws prohibit the consignee from receiving or selling hemp-cannabinoid beverages;that specific product.
(2) hemp-cannabinoid beverageproduct wholesaler's license, which authorizes the licensee to purchase, store, keep, possess, import into this State, transport, sell, and deliver hemp-cannabinoid beverages in bottles or cans and hemp gelatin chewables in accordance with regulations to a person having a manufacturer's or retail license issued pursuant to this article; and
(3) hemp-cannabinoid beverage product retail license, which authorizes the licensees to purchase hemp-cannabinoid beverages and hemp gelatin chewables 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 45, by striking Section 61-14-700(C) and inserting:
(C) The department is authorized to issue, suspend, revoke, renew, or decline to renew hemp-cannabinoid beverageproduct licenses pursuant to Article 3, Chapter 6, Title 61, Sections 61-2-90 through 140, and Section 61-2-260 or to revoke or decline to renew any licenses under Title 61 for violations of this chapter, or both.Amend the bill further, SECTION 45, by striking Section 61-14-710(A), (B), (C), and (D) and inserting:
(A) A manufacturer of hemp-cannabinoid beverages or hemp gelatin chewables or a person who imports these beverages produced outside the United States may not sell, barter, exchange, transfer, or deliver for resale hemp-cannabinoid beverages or hemp gelatin chewables unless the person holds a valid hemp-cannabinoid beverageproduct wholesaler's license, and a holder of a hemp-cannabinoid beverage product wholesaler's license may not sell, barter, exchange, transfer, or deliver for resale hemp-cannabinoid beverages products to a person who does not have a hemp-cannabinoid beverage product manufacturer's, or retailer's license.(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.
(B) Manufacturers of hemp-cannabinoid products containing not 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.
(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 beer and wine.
(2) Wholesalers of hemp-cannabinoid beverages containing more than five milligrams but no more than ten milligrams of allowable THC concentration are subject to Chapter 6, Title 61 in the same manner and to the same extent those provisions apply to wholesalers of alcoholic liquor.
(3) Wholesalers of hemp-cannabinoid beverages must also maintain a wholesaler license issued under Chapter 4 or Chapter 6.
(C)(1) Wholesalers of hemp-cannabinoid products are subject to Chapter 6, Title 61 in the same manner and to the same extent those provisions apply to wholesalers of alcoholic liquor.
(2) Wholesalers of hemp-cannabinoid products must also maintain a wholesaler license issued under Chapter 6, Title 61.
(D)(1) Retailers of hemp-cannabinoid beverages containing up to five milligrams of allowable THC concentration are subject to Chapter 4 of Title 61, in the same manner and to the same extent those provisions apply to beer and wine; and
(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.
(3) Retailers of hemp-cannabinoid beverages must also maintain a retail license for beer and wine or for alcoholic liquor to be eligible for a hemp-cannabinoid beverage retailer's license in addition to any additional requirements required by the department.
(D)(1) Retailers of hemp-cannabinoid products are subject to Chapter 6 of Title 61, in the same manner and to the same extent those provisions apply to alcoholic liquor.
(2) Retailers of hemp-cannabinoid products must also maintain a retail license for alcoholic liquor to be eligible for a hemp-cannabinoid product retailer's license in addition to any additional requirements required by the department.
Amend the bill further, SECTION 45, by striking Section 61-14-720(A) and inserting:
(A) The biennial license taxes on hemp-cannabinoid product licenses granted pursuant to this article in addition to all other licenses taxes are as follows:(1) manufacturer's license: fifty thousand dollars;
(2) wholesaler's license: twenty thousand dollars;
(3) retail license: one thousand two hundred dollars.
Amend the bill further, SECTION 45, 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 and hemp gelatin chewables, 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 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 and hemp gelatin chewables, 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 and hemp gelatin chewables sold and containing more than five milligrams of an allowable THC concentration.
Amend the bill further, SECTION 45, by striking Section 61-14-740 and inserting:
Section 61-14-740. The tax prescribed in this article must be paid by requiring each wholesaler to make a report to the department, in the form the department prescribes, of all hemp-cannabinoid beverages and all hemp gelatin chewables sold or disposed of within this State by the wholesaler and to pay the tax due thereon not later than the twentieth of the month following the sale of the hemp-cannabinoid beverages and hemp gelatin chewables. Any wholesaler who fails to file the report or to pay the tax as prescribed in this section must pay a penalty of one quarter of one percent of the amount of the tax due and unpaid or unreported for each day the tax remains unpaid or unreported. The penalty must be assessed and collected by the department in the manner as other taxes are assessed and collected. The department may grant any wholesaler extensions of time for filing the reports and paying the taxes prescribed in this article and no penalties may be assessed or collected to the extent that the extensions of time are granted.Amend the bill further, SECTION 45, by striking Section 61-14-750(A) and (B) and inserting:
(A) For hemp-cannabinoid beverages or hemp gelatin chewables containing five milligrams or less of an allowable THC concentration, and under the reporting method of tax payment on such sales of hemp-cannabinoid beverages as prescribed in Section 61-14-730, the department shall allow a discount of two percent to the wholesaler on the amount of tax reported on each monthly report.(B) For hemp-cannabinoid beverages or hemp gelatin chewables containing more than five milligrams of an allowable THC concentration, and under the reporting method of tax payment on such sales of hemp-cannabinoid beverages as prescribed in Section 61-14-730, the department shall allow a discount of one percent to the wholesaler on the amount of tax reported on each monthly report.
Amend the bill further, SECTION 45, by striking Section 61-14-760 and inserting:
Section 61-14-760. Every person, firm, corporation, club, or association, or any organization or individual within this State, importing, receiving, or acquiring from without the State or from any other sources whatever, hemp-cannabinoid beverages or hemp gelatin chewables as defined in this chapter on which the tax imposed by this chapter has not been paid, for use or consumption within the State, shall be subject to the payment of a license tax at the same rates provided in Sections 61-14-730 and 61-14-740.Amend the bill further, SECTION 45, by striking Section 61-14-780 and inserting:
Section 61-14-780. The department or any agent or representative designated by it for that purpose and all peace officers or police officers of the State may enter upon the premises of any person selling or offering for sale any hemp-cannabinoid beverages or hemp gelatin chewables without a warrant and examine or cause to be examined any books, records, papers, memoranda or commodities and secure any other information directly or indirectly pertaining to the enforcement of this article.Amend the bill further, SECTION 45, by striking Section 61-14-790(B) and inserting:
(B) The hemp-cannabinoid beverages and hemp gelatin chewables taxes and license fees provided for by this article must be paid to and collected by the department and deposited to the credit of the general fund of the State, unless otherwise specified by this article.Amend the bill further, SECTION 45, by striking Section 61-14-800(A), (B), and (C) and inserting:
(A) It is unlawful for a person to sell or permit to be sold hemp-cannabinoid beverages or hemp gelatin chewables authorized to be sold under this chapter on which taxes levied have not been paid.(1) For a first violation of this section, a person is guilty of a misdemeanor and, upon conviction, must be fined not less than twenty dollars nor more than one hundred dollars or imprisoned for not less than ten days nor more than thirty days, in the discretion of the court.
(2) For a second offense of this section, a person is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars, imprisoned not more than thirty days, or both.
(3) For a third or subsequent offense of this section, a person is guilty of a felony and, upon conviction, must be fined not less than five hundred dollars nor more than one thousand dollars, imprisoned for not less than thirty days nor more than sixty days, or both.
(B) It is unlawful for a person who does not hold a license pursuant to this chapter to sell or permit to be sold hemp-cannabinoid beverages or hemp gelatin chewables. A person who violates this subsection is guilty of a felony and, upon conviction, must be fined not less than one thousand dollars nor more than two-thousand five hundred dollars or imprisoned for not less than thirty days nor more than sixty days, or both, and is prohibited from being a licensee under any chapter of Title 61.
(C) Each hemp-cannabinoid beverage or hemp gelatin chewable sold on which taxes levied have not been paid is a separate offense.
Article 9
Provisions Affecting Hemp-Cannabinoid Beverages Products Only
Amend the bill further, SECTION 45, by striking Section 61-14-900(A), (B), (C), (D), and (E) and inserting:
(A) A manufacturer, producer, distributor, wholesaler, and retailer must abide by the regulations of practices between each other, as established in Section 61-4-735 and Section 61-4-940, as applied to hemp-cannabinoid beveragesproducts.(B) Except as provided in subsection (C), a manufacturer, producer, or wholesaler of hemp-cannabinoid products, or a person acting on his behalf, must not give, furnish, rent, lend, or sell, directly or indirectly, to the holder of a hemp-cannabinoid beverage product retail license any equipment, fixtures, free hemp-cannabinoid beverages or hemp gelatin chewables, or service. The holder of a hemp-cannabinoid beverage product retail license or a person acting on his behalf may not accept, directly or indirectly, any equipment, fixtures, free hemp-cannabinoid beverages or hemp gelatin chewables , or service referred to in this subsection from a manufacturer, producer, wholesaler of hemp-cannabinoid beveragesproducts, except as provided in subsection (C).
(C) A wholesaler may furnish at no charge to the holder of a hemp-cannabinoid beverage product retail license equipment, replacement parts of nominal value, point of sale advertising specialties and product displays as provided under 27 Code of Federal Regulations, Section 6.83, and point of sale advertising specialties,excluding electronic refrigeration equipment. A wholesaler also may furnish the following services to a retailer: setting boxes, rotating stock, affixing price tags to hemp-cannabinoid beveragesproducts, and building hemp-cannabinoid beverage displays, . setting boxes, developing shelf schematics, stocking shelves, and assisting in hemp-cannabinoid beverage resets at the same rate as beer resets for any store having a retail permit during the hours of 8:00 a.m. to 8:00 p.m. Resets are defined as being a change in the location of the hemp-cannabinoid beverage department within a store or a rearrangement of the products on shelves within the store's hemp-cannabinoid department, which involves more than one wholesaler's products. All wholesalers must be notified in writing of any resets being requested by a retail store at least fourteen days prior to reset.
(D) Producers, manufacturers, and importers of hemp-cannabinoid beverages products 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 products 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 product 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 product 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.
(E) A manufacturer, producer, importer, or wholesaler of hemp-cannabinoid beverages products may discount product price based on quantity purchases if all discounts are on price only, appear on the sales records, and are available to all retail customers.
Amend the bill further, SECTION 45, by striking Section 61-14-920 and inserting:
Section 61-14-920. Hemp-cannabinoid beverages in a 750-milliliter bottle or, a single serving can with more than five milligrams but not more than ten milligrams of the allowable THC concentration per serving may, or a hemp gelatin chewable as permitted by this chapter must be sold only in licensed alcoholic liquor stores.Amend the bill further, by striking SECTION 46 and inserting:
SECTION 46. If the federal government exercises its right to regulate hemp-cannabinoid beverages products through prohibition or regulation, then the allowable THC concentration shall be the lesser of either the federally defined THC level for hemp-cannabinoid beverages products or delta-9 tetrahydrocannabinol that is not more than three-tenths of one percent on a dry weight basis or not more than ten milligrams on a liquid basis.Amend the bill further, by adding an appropriately numbered SECTION to read:
SECTION X. Section 61-6-1500 of the S.C. Code is amended to read:Section 61-6-1500. (A) A retail dealer may not:
(1) sell, barter, exchange, give, or offer for sale, barter, or exchange, or permit the sale, barter, exchange, or gift, of alcoholic liquors without regard to the size of the container:
(a) between the hours of 7:00 p.m. and 9:00 a.m.;
(b) for consumption on the premises;
(c) to a person under twenty-one years of age;
(d) to an intoxicated person;
(e) to a mentally incompetent person; or
(f) to a person the retail dealer knows is another retail dealer, except as provided in Section 61-6-950 or between locations owned by the same retail dealer;
(2) permit the drinking of alcoholic liquors in his store or place of business;
(3) sell alcoholic liquors on credit; however, this item does not prohibit payment by electronic transfer of funds if:
(a) the transfer of funds is initiated by an irrevocable payment order on or before delivery of the alcoholic liquors; and
(b) the electronic transfer is initiated by the retailer no later than one business day after delivery;
(4) redeem proof-of-purchase certificates for any promotional item; or
(5) purchase, barter, exchange, receive, or offer to purchase, barter, exchange, receive or permit the purchase, barter, exchange, or receipt, of alcoholic liquors without regard to the size of the container from another retail dealer, except as provided in Section 61-6-950 or between locations owned by the same retail dealer.
However, during restricted hours a retail dealer is permitted to receive, stock, and inventory merchandise, provide for maintenance and repairs, and other necessary, related functions that do not involve the sale of alcoholic liquors.
(B)(1) It is unlawful for a person licensed to sell alcoholic liquors pursuant to the provisions of this section to knowingly and willfully refill, partially refill, or reuse a bottle of lawfully purchased alcoholic liquor, or otherwise tamper with the contents of the bottle.
(2) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction:
(a) for a first offense, must be fined five hundred dollars or imprisoned for not more than thirty days, or both;
(b) for a second or subsequent offense, must be fined one thousand dollars or imprisoned not more than six months, or both.
(3) In addition to the penalties provided in subsection (B), a violation of this section may subject the licensee or permit holder to revocation or suspension of the license or permit by the department. A third or subsequent violation of subsection (A)(1)(f) within three years of the first violation must result in a mandatory suspension of the license or permit for a period of at least thirty days. A violation of subsection (A)(5) must result in a mandatory suspension of the license or permit for a period of at least thirty days.
(4) The possession of a refilled or reused bottle or other container of alcoholic liquors is prima facie evidence of a violation of this section. A person who violates this provision must, upon conviction, have his license revoked permanently.
(C) A retail dealer must keep a record of all sales of alcoholic liquors sold to establishments licensed for on-premises consumption. The record must include the name of the purchaser and the date and quantity of the sale by brand and bottle size.
(D) It is unlawful to sell alcoholic liquors except during lawful hours of operation.
(E) It is unlawful for a retail dealer to sell hemp-cannabinoid products for delivery directly to a customer's residence.
Amend the bill further, SECTION 50, by striking Section and inserting:
SECTION 50. The prohibition and enforcement of hemp-cannabinoid beverage product distribution and sales to individuals under the age of twenty-one are effective upon the signature of the Governor, and the remaining provisions of this act take effective sixty days after approval by the Governor.Renumber sections to conform.
Amend title to conform.