Senator Cromer and Leber propose the following amendment (SJ-3924.MB0069S):

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(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-cannabinoid beverages or chewables as defined in Section 61-14-20.

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 product 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 product wholesaler license, the person must also have a wholesale license for alcoholic liquor and continue purchase, store, keep, possess, import into this State, transport, sell, and deliver both hemp-cannabinoid products and or liquor in the new location.

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

SECTION X. Chapter 4, Title 61 of the S.C. Code is amended by adding:

 Section 61-4-15. (A) "Hemp-cannabinoid beverage" is a chemically intoxicating beverage subject to the exercise of the police power of the General Assembly, pursuant to Section 1, Article VIII-A of the South Carolina Constitution.
 (B) For the purposes of this chapter, hemp-cannabinoid beverages that contain no more than five milligrams of an allowable THC concentration in a single serving in a twelve-ounce container shall be treated as beer or wine as described in Chapter 4, except for the provisions in Chapter 14 including creation of hemp-cannabinoid product licenses, violations, and penalties.

SECTION X. Sections 61-4-20 through 61-4-70 of the S.C. Code are amended to read:

 Section 61-4-20. It is unlawful for a person to sell or permit to be sold beer, ale, porter, wine, malt, hemp-cannabinoid beverage, or other beverage authorized to be sold under this chapter on which the tax levied has not been paid. A person having charge of the sale of one of these beverages who sells or permits it to be sold in violation of the provisions of this section is guilty of a misdemeanor and, upon conviction, for each offense must be fined not less than twenty-five 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.

 Section 61-4-30. Beer, or wine, or hemp-cannabinoid beverages sold by wholesalers to the holders of retail licenses in this State must be sold for cash only at the time of delivery or prior to delivery. For purposes of this section, "cash" means money or a bona fide check, money order, or electronic transfer of funds if the transfer of funds is initiated by an irrevocable payment order on or before delivery of the beer or wine. The electronic transfer must be initiated by the wholesaler no later than one business day after delivery. A holder of a retail permit who issues a check or an irrevocable payment order in payment for beer or wine with insufficient funds at the bank to cover the check violates the provisions of this section. This provision for cash payment applies to cash deposits on empties when beer is delivered in returnable containers. This deposit on bottles or draft beer containers must not be less than the charge from the brewery to the wholesaler.

 Section 61-4-40. A holder of a beer permit, or a beer and wine permit, or a hemp-cannabinoid permit may not purchase beer, or wine, or hemp-cannabinoid beverages, or both, on credit by a dishonored check, an unpaid note or invoice, or other insufficient manner from a permitted beer and wine wholesaler. However, no action may be taken against the holder for a first violation of this section. If a holder commits a second or subsequent violation, his retailer's permit may be suspended, canceled, or revoked by the department, or a monetary penalty of not more than twenty-five dollars may be assessed against him.

 Section 61-4-50. (A) It is unlawful for a person to sell beer, ale, porter, wine, hemp-cannabinoid beverage, or other similar malt or fermented beverage to a person under twenty-one years of age. A person who makes a sale in violation of this section, upon conviction:
  (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both; and
  (2) for a second or subsequent offense, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both.
 (B) Failure of a person to require identification to verify a person's age is prima facie evidence of the violation of this section.
 (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.
 (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 Division 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 Division must produce this record upon subpoena or court order. Discharge and dismissal under this section may occur only once with respect to any person.
  (2) Upon the dismissal of the person and discharge of the proceedings against him pursuant to item (1), the person may apply to the court for an order to expunge from all official records, other than the nonpublic records to be retained as provided in item (1), all recordation relating to his arrest, indictment or information, trial, finding of guilt, and dismissal and discharge pursuant to this section. If the court determines, after the hearing, that the person was dismissed and the proceedings against him discharged, it shall enter the order. The effect of the order is to restore the person, in the contemplation of the law, to the status he occupied before the arrest or indictment or information. No person as to whom the order has been entered may be held pursuant to another provision of law to be guilty of perjury or otherwise giving a false statement by reason of his failure to recite or acknowledge the arrest, or indictment or information, or trial in response to an inquiry made of him for any purpose, except when the person is providing sworn statements or giving testimony under oath. A conditional discharge granted pursuant to this section does not preclude a person from availing themselves of subsequent pre-trial diversion options provided by law.
  (3) Before a person may be discharged and the proceedings dismissed pursuant to this subsection, the person must pay a fee of three hundred fifty dollars if the person is in a general sessions court and one hundred fifty dollars if the person is in a summary court. No portion of the fee may be waived, reduced, or suspended, except in cases of indigency. If the court determines that a person is indigent, the court may partially or totally waive, reduce, or suspend the fee. The revenue collected pursuant to this item must be retained by the jurisdiction that heard or processed the case and paid to the State Treasurer within thirty days of receipt. The State Treasurer shall transmit these funds to the Prosecution Coordination Commission which shall then apportion these funds among the sixteen judicial circuits on a per capita basis equal to the population in that circuit compared to the population of the State as a whole based on the most recent official United States census. The funds must be used for drug treatment court programs only. The amounts generated by this subsection are in addition to any amounts presently being provided for drug treatment court programs and may not be used to supplant funding already allocated for these services. The State Treasurer may request the State Auditor to examine the financial records of a jurisdiction which he believes is not timely transmitting the funds required to be paid to the State Treasurer pursuant to this subsection. The State Auditor is further authorized to conduct these examinations and the local jurisdiction is required to participate in and cooperate fully with the examination.
  (4) Conditional discharge may only be granted by the court in accordance with the provisions of this section upon approval of the circuit solicitor or prosecuting officer.
 (E) Violations for sale of hemp-cannabinoid beverages to a person under the age of twenty-one are provided for in Section 61-14-320.

 Section 61-4-60. It is unlawful for a person to whom beer or, wine, or hemp-cannabinoid beverage cannot be lawfully sold to knowingly give false information concerning his age for the purpose of purchasing beer or, wine, or hemp-cannabinoid beverage. A person who violates the provisions of this section, upon conviction, must be fined not less than one hundred dollars nor more than two hundred dollars or be imprisoned for not more than thirty days, or both.

 Section 61-4-70. A person engaged in the business of selling at retail beer or, wine, or hemp-cannabinoid beverage must post in each location for which he has obtained a permit a sign with the following words printed thereon: "The possession of beer, wine, hemp-cannabinoid beverage, or alcoholic liquors, by a person under twenty-one years of age is a criminal offense under the laws of this State, and it is also unlawful for a person to knowingly give false information concerning his age for the purpose of purchasing beer, wine, hemp-cannabinoid beverage or liquor". The department must prescribe by regulation the size of the lettering and the location of the sign on the seller's premises.
 A retail seller of beer or, wine, or hemp-cannabinoid beverage 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.
 A person found guilty of a violation of Section 61-6-1530 and this section may not be sentenced under both sections for the same offense.

SECTION X. Sections 61-4-90 through 61-4-100 of the S.C. Code are amended to read:

 Section 61-4-90. (A) It is unlawful for a person to transfer or give to a person under the age of twenty-one years for the purpose of consumption of beer or, wine, or hemp-cannabinoid beverage in the State, unless the person under the age of twenty-one is recruited and authorized by a law enforcement agency to test a person's compliance with laws relating to the unlawful transfer or sale of beer and wine or hemp-cannabinoid beverage to a minor. A person who violates this section is guilty of a misdemeanor and, upon conviction:
  (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both; and
  (2) for a second or subsequent offense, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both.
 (B) A person found guilty of a violation of Section 61-6-4070 and this section may not be sentenced under both sections for the same offense.
 (C) The provisions of this section do not apply to a:
  (1) spouse over the age of twenty-one giving beer or wine to his spouse under the age of twenty-one in their home;
  (2) parent or guardian over the age of twenty-one giving beer or wine to his children or wards under the age of twenty-one in their home; or
  (3) person giving beer or wine or hemp-cannabinoid beverage to another person under the age of twenty-one in conjunction with a religious ceremony or purpose if the beer or wine or hemp-cannabinoid beverage was lawfully purchased.
 (D) A person eighteen years of age and over lawfully employed to serve or remove beer, wine, or alcoholic beverages in establishments licensed to sell these beverages are not considered to be in unlawful possession of the beverages during the course and scope of their duties as an employee. The provisions of this subsection do not affect the requirement that a bartender must be at least twenty-one years of age.
 (E) This section does not apply to an employee lawfully engaged in the sale or delivery of these beverages in an unopened container.
 (F) The provisions of this section do not apply to a student who:
  (1) is eighteen years of age or older;
  (2) is enrolled in an accredited college or university and a student in a culinary course that has been approved through review by the State Commission on Higher Education;
  (3) is required to taste, but not consume or imbibe, any beer, ale, porter, wine, or other similar malt or fermented beverage as part of the required curriculum; and
  (4) tastes a beverage pursuant to item (3) only for instructional purposes during classes that are part of the curriculum of the accredited college or university.
 The beverage must remain at all times in the possession and control of an authorized instructor of the college or university who must be twenty-one years of age or older. Nothing in this subsection may be construed to allow a student under the age of twenty-one to receive any beer, ale, porter, wine, or other similar malt or fermented beverage unless the beverage is delivered as part of the student's required curriculum and the beverage is used only for instructional purposes during classes conducted pursuant to the curriculum.

 Section 61-4-100. (A) If a person is charged with a violation of the unlawful sale of beer or, wine, or hemp-cannabinoid beverage to minors pursuant to Section 61-4-50, the minor also must be charged with a violation of the unlawful purchase or possession of beer or, wine, or hemp-cannabinoid beverage pursuant to Section 63-19-2440. In addition, if the minor violated false information as to age pursuant to Section 61-4-60 or if an adult violated the unlawful purchase of beer or, wine, or hemp-cannabinoid beverage for a person who cannot lawfully buy pursuant to Section 61-4-80, these persons also must be charged with their violations.
 (B) A person may not be charged with a violation of Section 61-4-50 if the provisions of subsection (A) are not met.
 (C) Nothing in this section requires that charges made pursuant to this section be prosecuted to conclusion; but rather this determination must be made in the manner provided by law.
 (D) Notwithstanding the provisions of subsections (A) and (B), a person under the age of twenty-one may be recruited and authorized by a law enforcement agency to test an establishment's compliance with laws relating to the unlawful transfer or sale of beer or, wine, or hemp-cannabinoid beverage to a minor. The testing must be under the direct supervision of a law enforcement agency, and the agency must have the person's parental consent. If the requirements of this subsection are met, a person may be charged with a violation of Section 61-4-50 without the requirement that the minor also be charged.

SECTION X. Section 61-4-150 of the S.C. Code is amended to read:

 Section 61-4-150. If beer or, wine, or hemp-cannabinoid beverage is sold to anyone by a person who does not have a valid license to make the sale, all beer and, wine, and hemp-cannabinoid beverage found on the premises of the person is contraband and must be seized by a peace officer and treated as contraband liquor.

SECTION X. Sections 61-4-200 through 61-4-210 of the S.C. Code are amended to read:

 Section 61-4-200. Notwithstanding any other provision of law, a holder of a retail permit to sell beer and, wine, and hemp-cannabinoid beverage may transfer beer and wine to other businesses. In order for this transfer to be lawful, all businesses involved in the transfer must hold a retail beer and wine and, if applicable, a retail hemp-cannabinoid product permit issued to the same individual, partnership, or corporation. In addition, a particular brand of beer may be transferred only between retail stores located within the territorial restrictions described in the distribution agreement between the brewery and the wholesaler on file with the department pursuant to Section 61-4-1300. Transfers of beer and wine or hemp-cannabinoid beverage between retail beer and wine and, if applicable, hemp-cannabinoid beverage locations in a manner not authorized by this section, purchase of beer or wine and, if applicable, hemp-cannabinoid beverage by a retailer from another retailer for the purpose of resale, and sale of beer or wine or hemp-cannabinoid beverage by a retailer to a retailer for the purpose of resale are unlawful. A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars.

 Section 61-4-210. (A) A person who purchases or acquires by lease, inheritance, divorce decree, eviction, or otherwise a retail business which sells beer or wine from a holder of a retail permit to sell beer or wine or hemp-cannabinoid beverage at the business, upon initiating the application process for a biennial retail beer or beer and wine permit or a retail hemp-cannabinoid product, may be issued a temporary retail beer or beer and wine or retail hemp-cannabinoid permit by the department at the time of the purchase or acquisition if the location for which the temporary permit is sought is not considered by the department to be a public nuisance and:
  (1) the applicant currently holds a valid beer or beer and wine or retail hemp-cannabinoid product permit; or
  (2) the applicant has had a criminal history background check conducted by the division within the past thirty days.
 (B) A temporary beer or beer and wine or hemp-cannabinoid product permit issued pursuant to subsection (A) is valid until a biennial retail beer or, beer and wine, or hemp-cannabinoid product permit is approved or disapproved by the department, but in no case is it valid for more than one hundred twenty days from the date of issuance.
 (C) Notwithstanding subsection (B), the department may revoke a temporary retail beer or, beer and wine, or hemp-cannabinoid product permit if the applicant fails to pursue the biennial retail beer or, beer and wine, or hemp-cannabinoid product permit in a timely manner, as set forth by regulation of the department.
 (D) The department shall collect a fee of twenty-five dollars for each temporary beer or, beer and wine, or hemp-cannabinoid product permit. The funds generated by this fee must be deposited in the general fund of the State.

SECTION X. Section 61-4-230 of the S.C. Code is amended to read:

 Section 61-4-230. A person who, upon demand of an officer or agent of the division:
 (1) refuses to allow full inspection of the premises or any part of the premises which is licensed to sell beer or, wine; or hemp-cannabinoid beverage; or
 (2) refuses to allow full inspection of the stocks and invoices of the licensee; or
 (3) who prevents or in any way hinders an inspection is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars or imprisoned for not more than sixty days, or both.
 A person found guilty of a violation of Section 61-6-4190 and this section may not be sentenced under both sections for the same offense.

SECTION X. Section 61-4-300 of the S.C. Code is amended to read:

 Section 61-4-300. "Producer" as used in this article means a brewery or winery or a manufacturer, bottler, or importer of beer or wine into the United States; and, as used in this chapter, includes a manufacturer, bottler, or importer of hemp-cannabinoid beverages into the United States.

SECTION X. Section 61-4-310 of the S.C. Code is amended to read:

 Section 61-4-310. (A) A producer must apply to the department on forms the department prescribes for a certificate of registration, which must be approved and issued before the shipment of beer or , wine, or hemp-cannabinoid beverage by the producer to a point within the State. A producer, at the same time application is made for a certificate of registration, must remit to the department a fee of two hundred dollars.
 (B) The department, in its discretion upon consideration of the information contained in the application for a certificate of registration, must issue or reject the application.
 (C) A certificate of registration is valid from the date of issue until the second August thirty-first after the issuance of the license. Beer and wine and hemp-cannabinoid beverage wholesalers must purchase beer, ale, or wine from manufacturers or importers who hold a certificate of registration issued by the department. Nothing in this section or Section 61-4-940 prohibits the transfer or purchase and sale, for resale to retailers only, between wholesalers authorized by the registered producer or an exclusive agent in the State to distribute the same brand or brands of wine, beer, or ale, or hemp-cannabinoid beverages.

SECTION X. Section 61-4-340 of the S.C. Code is amended to read:

 Section 61-4-340. No person other than a registered producer may ship, move, or cause to be shipped or moved, beer, ale, porter, malt beverage, or wine, or hemp-cannabinoid beverages from outside the State to a point in the State, and only in accordance with the provisions of this chapter. No brand may be registered by the producer unless the person registering the brand is either the American producer or the primary American source of supply in the United States of the brand as herein defined, and it is unlawful for a wholesaler in this State to order, purchase, or receive beer, ale, porter, malt beverage, or wine, or hemp-cannabinoid beverage from a producer who is not the primary American source of supply for the brand ordered, purchased, or received. The term primary American source of supply means the manufacturer, distiller, vintner, brewer, producer, winery, or owner of vinous or spirituous beverages at the time they become a marketable product, or bottler, or the exclusive agent of these persons, who, if the product cannot be secured directly from the manufacturer by an American distributor, is the source closest to the manufacturer in the channel of commerce from whom the product can be secured by an American distributor, or who, if the product can be secured directly from the manufacturer by an American distributor, is the manufacturer. The provisions of this section do not apply to a person who produces beer, ale, porter, malt beverage, or wine solely in this State and who subsequently ships or sells this beer, ale, porter, malt beverage, or wine solely in this State.

SECTION X. Section 61-4-350 of the S.C. Code is amended to read:

 Section 61-4-350. Beer or, wine, or hemp-cannabinoid beverages shipped or moved into this State in violation of this chapter is contraband and may be seized and sold as provided in Section 61-6-4310.

SECTION X. Section 61-4-520 of the S.C. Code is amended to read:

 Section 61-4-520. A retail permit authorizing the sale of beer or wine or hemp-cannabinoid beverages must not be issued unless:
 (1) The applicant, a partner, or co-shareholder of the applicant, and each agent, employee, and servant of the applicant to be employed on the licensed premises are of good moral character.
 (2) The applicant is a legal resident of the United States, has been a legal resident of this State for at least thirty days before the date of application, and has maintained his principal place of abode in the State for at least thirty days before the date of application.
 (3) The applicant, within two years before the date of application, has not had revoked a beer or, a wine, or hemp-cannabinoid product permit issued to him.
 (4) The applicant is twenty-one years of age or older.
 (5) The location of the proposed place of business of the applicant is in the opinion of the department a proper one.
 (6) The department may consider, among other factors, as indications of unsuitable location, the proximity to residences, schools, playgrounds, and churches. This item does not apply to locations licensed before April 21, 1986.
 (7)(a) Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, city, or community in which the applicant proposes to engage in business. The department shall determine which newspapers meet the requirements of this section based on available circulation figures. However, if a newspaper is published in the county and historically has been the newspaper where the advertisements are published, the advertisements published in that newspaper meet the requirements of this section. The notice must:
   (i) be in the legal notices section of the newspaper or an equivalent section if the newspaper has no legal notices section;
   (ii) be in large type, covering a space of one column wide and at least two inches deep; and
   (iii) state the type license applied for and the exact location of the proposed business.
  (b) An applicant for a beer or wine or a hemp-cannabinoid product permit and an alcoholic liquor license may use the same advertisement for both if the advertisement is approved by the department.
 (8) Notice has been given by displaying a sign for fifteen days at the site of the proposed business. The sign must:
  (a) state the type of permit sought;
  (b) state where an interested person may protest the application;
  (c) be in bold type;
  (d) cover a space at least twelve inches high and eighteen inches wide;
  (e) be posted and removed by an agent of the division.

SECTION X. Section 61-4-525 of the S.C. Code is amended to read:

 Section 61-4-525. (A) A person residing in the county in which a retail beer and wine or a retail hemp-cannabinoid product permit is requested to be granted, or a person residing within five miles of the location for which a retail beer and wine or a retail hemp-cannabinoid product permit is requested, may protest the issuance or renewal of the permit if he files a written protest setting forth:
  (1) the name, address, and telephone number of the person filing the protest;
  (2) the name of the applicant for the permit and the address of the premises sought to be licensed, or the name and address of the permit 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.
 (B) Upon receipt of a timely filed protest, the department shall determine the protestant's intent to attend a contested hearing before the Administrative Law Court. If the protestant intends to attend a contested hearing, the department may not issue the permanent permit but shall forward the file to the Administrative Law Court.
 (C) If the protestant, during the investigation expresses no desire to attend a contested hearing and offer testimony, the protest is considered invalid, and the department shall continue to process the application and shall issue the permit if all other statutory requirements are met.
 (D) A person who files a protest and fails to appear at a hearing after affirming a desire to attend the hearing may be assessed a fine or penalty to include court costs.

SECTION X. Section 61-4-530 of the S.C. Code is amended to read:

 Section 61-4-530. In considering an application for a permit for the sale of beer or, wine, or hemp-cannabinoid beverage at a location within five miles of a political subdivision of another state in which the sale of beer or, wine, or hemp-cannabinoid beverage is prohibited, the department must, in addition to the factors required to be considered, consider the proximity of the location to the prohibited area, the likelihood that large crowds may gather from time to time with attendant breaches of the peace, the requirement of increased law enforcement officers, and any other factor which in its judgment should be considered before issuing the permit.
 These special considerations, however, do not apply where the application is made with respect to a location within the corporate limits of a municipality.

SECTION X. Section 61-4-590 of the S.C. Code is amended to read:

 Section 61-4-590. (A) The department has jurisdiction to revoke or suspend permits authorizing the sale of beer or, wine, or hemp-cannabinoid beverage. The department may, on its own initiative or on complaint signed and sworn to by two or more freeholders resident for the preceding six months in the community in which the licensed premises are located or by a local peace officer, all of whom are charged with the duty of reporting immediately to the department a violation of the provisions of Section 61-4-580, revoke or suspend the permit pursuant to the South Carolina Revenue Procedures Act. The decision of the Administrative Law Court is not automatically superseded or stayed by the filing of a petition for judicial review.
 (B) In addition to the notice requirements contained in the Administrative Procedures Act, the department may not suspend or revoke a licensee's permit authorizing the sale of beer or, wine, or hemp-cannabinoid beverage until the division has conducted and completed an investigation, and the department has made a departmental determination, as defined in Section 12-60-30, that the licensee's permit should be revoked or suspended.

SECTION X. Section 61-4-600 of the S.C. Code is amended to read:

 Section 61-4-600. Upon the revocation, cancellation, or suspension of a license or permit to sell beer or, wine, or hemp- cannabinoid beverage at wholesale or retail, the licensee must immediately surrender his license to the department. A person who violates this section 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, or both, in the discretion of the court.

SECTION X. Section 61-4-1100 of the S.C. Code is amended to read:

 Section 61-4-1100. (1) It is unlawful for a producer who holds a certificate of registration from the department (hereinafter "registered producer") or an officer, agent, or representative of a registered producer:
  (a) to coerce, attempt to coerce, or persuade a person holding a permit to sell beer, ale, porter, hemp-cannabinoid beverage, and other similar malt or fermented beverages at wholesale (hereinafter "beer wholesaler") to enter into an agreement to take any action which would violate a provision of this article or any ruling or regulation in accordance therewith; or
  (b) to unfairly, without due regard to the equities of the beer wholesaler or without just cause or provocation, cancel or terminate a written or oral agreement or contract, franchise, or contractual franchise relationship of the wholesaler existing on May 1, 1974, or thereafter entered into, to sell beer manufactured by the registered producer; this provision is a part of a contractual franchise relationship, written or oral, between a beer wholesaler and a registered producer doing business with the beer wholesaler, just as though the provision had been specifically agreed upon between the beer wholesaler and the registered producer. However, notice of intention to cancel the agreement or contract, written or oral, franchise, or contractual franchise relationship must be given in writing at least sixty days before the date of the proposed cancellation or termination. The notice must contain (i) assurance that the agreement or contract, written or oral, franchise, or contractual franchise relationship is being terminated in good faith and for material violation of one or more provisions which are relevant to the effective operation of the agreement, or contract, written or oral, franchise, or contractual franchise relationship, if any, and (ii) a list of the specific reasons for the termination or cancellation.
 (2) It is unlawful for a beer wholesaler:
  (a) to enter into an agreement or take any action which would violate or tend to violate a provision of this article or any rule or regulation promulgated pursuant thereto;
  (b) to unfairly, without due regard for the equities of a registered producer or without just cause or provocation, cancel or terminate a written or oral agreement or contract, franchise, or contractual franchise relationship of the registered producer existing on May 1, 1974, or thereafter entered into, to sell beer manufactured by the registered producer; this provision becomes a part of a contractual franchise relationship, written or oral, between a beer wholesaler and a registered producer doing business with the beer wholesaler, just as though this provision had been specifically agreed upon between the beer wholesaler and the registered producer. However, notice of intention to cancel the agreement or contract, written or oral, franchise, or contractual franchise relationship must be given in writing at least sixty days prior to the date of the proposed cancellation or termination. The notice must contain (i) assurance that the agreement or contract, written or oral, franchise, or contractual franchise relationship is being terminated in good faith and for material violation of one or more provisions which are relevant to the effective operation of the agreement or contract, written or oral, franchise, or contractual franchise relationship, if any, and (ii) a list of the specific reasons for the termination or cancellation;
  (c) to refuse to sell to a licensed retailer whose place of business is within the geographical limits specified in a distributorship agreement between the beer wholesaler and the registered producer for the brands involved; or
  (d) to store or warehouse beer or other malt beverages to be sold in the State in a warehouse located outside the State.

Amend the bill further, SECTION 15, by striking Section 61-6-20(1)(a) and (b) and inserting:

 (1)(a) "Alcoholic liquors" or "alcoholic beverages" means any hemp-cannabinoid products that contains not less than five milligrams or 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.
  (b) "Alcoholic liquor by the drink" or "alcoholic beverage by the drink" means a drink poured from a container of alcoholic liquor, excluding hemp-cannabinoid beverageproduct, without regard to the size of the container for consumption on the premises of a business licensed pursuant to Article 5 of this chapter.

Amend the bill further, SECTION 22, by striking Section 61-14-10(1)(a)(iii) and inserting:

   (iii) one hemp gelatin chewable in a liquor store.

Amend the bill further, SECTION 22, by striking Section 61-14-10(21) and inserting:

 (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 products for resale.

Article 3

Enforcement

Amend the bill further, SECTION 22, by striking Section 61-14-360(B) and inserting:

 (B) A permit authorized by this section to sell hemp-cannabinoid beverages with an allowable THC concentration of five milligrams or less, may be issued only in those counties or municipalities where a majority of the qualified electors voting in a referendum vote in favor of the issuance of the permit for retail sales of hemp-cannabinoid beverages, on Sundays in retail stores. The county or municipal election commission, as the case may be, shall conduct a referendum upon petition of at least ten percent but not more than seven thousand five hundred qualified electors of the county or municipality, as the case may be. The petition form must be submitted to the election commission not less than one hundred twenty days before the date of the referendum. The names on the petition must be on the petition form provided to county election officials by the State Election Commission. The names on the petition must be certified by the election commission within sixty days after receiving the petition form. The referendum must be conducted at the next general election. The election commission shall cause a notice to be published in a newspaper circulated in the county or municipality, as the case may be, at least seven days before the referendum. The state election laws shall apply to the referendum, mutatis mutandis. The election commission shall publish the results of the referendum and certify them to the South Carolina Department of Revenue
 (B)(C) A person who violates a provision of this sectionsubsection (A) is guilty of a misdemeanor and, upon conviction, must be punished as follows:
  (1) for a first offense, by a fine of two hundred dollars or imprisonment for sixty days;
  (2) for a second offense, by a fine of one thousand dollars or imprisonment for one year; and
  (3) for a third or subsequent offense, by a fine of two thousand dollars or imprisonment for two years.

Article 5

Product Requirements

Amend the bill further, SECTION 22, by striking Section 61-14-700(A)(2) and inserting:

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

Amend the bill further, SECTION 22, Section 61-14-710(B), by adding an item to read:

 (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 not more than ten milligrams of an allowable THC concentration or hemp-cannabinoid products gelatin chewables 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.

Amend the bill further, SECTION 22, by striking Section 61-14-710(C)(1) and (2) 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 beer and wine.
  (2) Wholesalers of hemp-cannabinoid beverages containing more than five milligrams but not more than ten milligrams of an allowable THC concentration or hemp-cannabinoid products gelatin chewables 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 those provisions apply to wholesalers of alcoholic liquor.
  (2)(3) Wholesalers of hemp-cannabinoid products must also maintain a wholesaler license issued under Chapter 4 or Chapter 6, Title 61.

Amend the bill further, SECTION 22, by striking Section 61-14-710(D)(1) and (2) and inserting:

 (D)(1) Retailers 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 extent those provisions apply to beer and wine.
  (2) Retailers of hemp-cannabinoid beverages more than five milligrams but not more than ten milligrams of an allowable THC concentration or hemp-cannabinoid products gelatin chewables containing not more than ten milligrams are subject to Chapter 6 of Title 61, in the same manner and to the same extent those provisions apply to alcoholic liquor.
  (2)(3) Retailers of hemp-cannabinoid products must also maintain a retail license for beer and wine or 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 22, by striking Section 61-14-730(C) and inserting:

 (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 sold and containing more than five milligrams but not more than ten milligrams and hemp gelatin chewables sold and containing more than five milligrams not more than ten milligrams of an allowable THC concentration.

Amend the bill further, SECTION 23, MACROBUTTON NoMacro <> , by adding an undesignated paragraph MACROBUTTON NoMacro <> to read:

 If the federal government exercises its right to regulate hemp-cannabinoid products through prohibition or regulation of the types of allowable products then a hemp-cannabinoid product for purpose of this act shall include the more restrictive list of products.

Amend the bill further, by striking SECTION 24 and inserting:

SECTION 24. Pre-existing stock, purchased prior to the effective date of this act, may be sold through November 12, 2026, provided a certificate of analysis is available and sales are prohibited to anyone under the age of twenty-one. Current retailers, wholesalers, and manufacturers of hemp-cannabinoid products must have applied to the department for the applicable hemp-cannabinoid license, and met all other licensing requirements of Chapter 4, Chapter 6, and Chapter 14 of Title 61 by November 12, 2026, to continue sales and production. If a retailer, wholesaler, or manufacturer of hemp-cannabinoid products cannot show proof of an active application with the department by November 12, 2026, they must cease all sales and production. All enforcement shall be stayed until after the final adjudication of an applicable application.

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

SECTION X. Section 61-4-735(C) of the S.C. Code is amended to read:

 (C) A wholesaler may furnish at no charge to the holder of a retail permit draft wine equipment replacement parts of nominal value, including washers, gaskets, hoses, hose connectors, clamps, and tap markers, product displays as provided under 27 Code of Federal Regulations, Section 6.83, and point of sale advertising specialties. A wholesaler also may furnish the following services to a retailer: cleaning wine lines, rotating stock, affixing price tags to wine products, building wine displays, setting boxes, conduct not more than two wine tastings in accordance with department rulings or regulations, developing shelf schematics, stocking shelves, providing wine party wagon for temporary use, and assist in wine resets a maximum of three times a year 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 wine department within a store or a rearrangement of the products on shelves within the store's wine 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 the reset.

SECTION X. Section 61-4-940(C) of the S.C. Code is amended to read:

 (C) A wholesaler may furnish at no charge to the holder of a retail permit draft beer equipment replacement parts of nominal value, including washers, gaskets, hoses, hose connectors, clamps, and tap markers, party wagons for temporary use, and point of sale advertising specialties. A wholesaler may furnish at no charge to the holder of a retail permit product displays pursuant to the provisions of 27 C.F.R., Section 6.83, excluding electronic refrigeration equipment. A wholesaler also may furnish the following services to a retailer: cleaning draught lines, setting boxes, rotating stock, affixing price tags to beer products, and building beer displays.

SECTION X. Title 61 of the S.C. Code is amended by adding:


 Section 61-14-15. (A) It is unlawful for a licensee of a retail establishment or a liquor store to fail to maintain any hemp-cannabinoid product behind the counter of a retail establishment or a liquor store in an area inaccessible to the customer.
 (B) A person who violates this section:
  (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 for not more than five years or fined not more than ten thousand dollars, or both, and the licensee is subjected to revocation by the department of all licenses under Title 61.
 (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 products. 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 products.
  (2) A person who violates the provisions of this subsection is guilty of a misdemeanor and, upon conviction, must be fined not less than one hundred dollars nor more than two hundred dollars or must be imprisoned for not more than thirty days, or both.

Amend the bill further, SECTION 29, by striking Section and inserting:

SECTION 29. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective. Additionally, if the prohibition and enforcement of hemp-cannabinoid product distribution and sales to individuals under the age of twenty-one is for any reason held to be unconstitutional or invalid, the General Assembly hereby declares that it would have passed this act with a prohibition and enforcement of hemp-cannabinoid product distribution and sales to individuals under the age of eighteen. 

Amend the bill further, SECTION 30, by striking Section and inserting:

SECTION 30. The prohibition and enforcement of hemp-cannabinoid product distribution and sales to individuals under the age of twenty-one are effective upon the signature of the Governor, unless there is a challenge to the constitutionality of the prohibition and enforcement of hemp-cannabinoid product distribution and sales to individuals under the age of twenty-one, then this act shall have the effect of prohibiting and enforcing hemp-cannabinoid products distribution and sales to individuals under the age of eighteen, and the remaining provisions of this act take effective sixty days after approval by the Governor.

Renumber sections to conform.

Amend title to conform.