Rep. MCCRAVY proposes the following amendment (LC-3924.VR0015H):

Amend the bill, as and if amended, 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 39, by striking Section 61-14-10(1)(b) and inserting:

  (b) not more than ten milligrams 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;
   (ii) a twelve-ounce single serving container sold in a liquor store; or
   (iii) one hemp gelatin chewable in a liquor store.
  (b) not more than ten milligrams 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.

Amend the bill further, SECTION 39, 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 39, by striking Section 61-14-10(9) and (10) and inserting:

 (9) "Hemp gelatin chewable," "chewable," or "gummy" is an edible, chewable product that contains intoxicating alcoholic liquid converted into a gelatin or a kosher gelatin alternative 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 an allowable THC concentration per chewable or gummy and must be sold in containers of no more than four chewables per package, forty milligrams total THC per package. Baked goods or other food products of any kind are not chewables or gummies. Reserved.
 (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.

Amend the bill further, SECTION 39, by striking Section 61-14-10(12) and inserting:

 (12) "Producer" as used in this chapter includes a manufacturer, a bottler, or importer of hemp-cannabinoid beverages or chewables, into the United States.

Amend the bill further, SECTION 39, by striking Section 61-14-10(14) and inserting:

 (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.

Amend the bill further, SECTION 39, by striking Section 61-14-10(19) and inserting:

 (19) "Serving" means a hemp-cannabinoid beverage containing either:
  (a) twelve fluid ounces in a single serving container;
  (b) no more than one and one-half fluid ounces in a 750-milliliter bottle; or
  (c) or a chewable containing no more than ten milligrams of an allowable THC concentration per gummy.
 (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,

Amend the bill further, SECTION 39, 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 not more than five milligrams of an allowable THC concentration, or Chapter 6, for hemp cannabinoid products containing more than five milligrams but not more than ten milligrams of an allowable THC concentration.
 (C) Any hemp-cannabinoid beverages 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 39, 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 39, by striking Section 61-14-330(B) and inserting:

 (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 39, 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 39, 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 39, by striking Section 61-14-360(A)(1) and inserting:

  (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.

Amend the bill further, SECTION 39, 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 39, 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 39, 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 39, 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;
  (4) may not be packaged in any way that violates federal trademark or copyright laws, and
  (5) for the purposes of hemp gelatin chewable packaging must be child resistant.
 (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 39, 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 39, 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;

Amend the bill further, SECTION 39, by striking Section 61-14-700(A)(1) 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.

Amend the bill further, SECTION 39, by striking Section 61-14-700(B)(1)(a) and inserting:

   (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

Amend the bill further, SECTION 39, by striking Section 61-14-700(B)(2) and (3) and inserting:

  (2) hemp-cannabinoid product 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 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 product at retail, and which excludes sales of hemp-cannabinoid product for on-premise consumption.

Amend the bill further, SECTION 39, by striking Section 61-14-710(A) 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 product wholesaler's license, and a holder of a hemp-cannabinoid product wholesaler's license may not sell, barter, exchange, transfer, or deliver for resale hemp-cannabinoid products to a person who does not have a hemp-cannabinoid product manufacturer's, or retailer's license.

Amend the bill further, SECTION 39, by striking Section 61-14-710(B)(2) and inserting:

  (2) Manufacturers of hemp-cannabinoid beverages containing more than five milligrams but not more than ten milligrams of an allowable THC concentration or hemp 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 39, by striking Section 61-14-710(C)(2) and inserting:

  (2) Wholesalers of hemp-cannabinoid beverages containing more than five milligrams but not more than ten milligrams of an allowable THC concentration or hemp 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.

Amend the bill further, SECTION 39, by striking Section 61-14-710(D)(2) and inserting:

  (2) Retailers of hemp-cannabinoid beverages more than five milligrams but not more than ten milligrams of an allowable THC concentration or hemp 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.

Amend the bill further, SECTION 39, 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 sold and containing more than five milligrams but not more than ten milligrams and hemp gelatin chewables sold and containing not more than ten milligrams of an allowable THC concentration.

Amend the bill further, SECTION 39, 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 39, 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 39, 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 39, 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 39, by striking Section 61-14-790(B) and inserting:

 (B) The hemp-cannabinoid beverages and hemp gelatin chewablesbeverage 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 39, 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 Products Only

Amend the bill further, SECTION 39, by striking Section 61-14-900(B) and inserting:

 (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 product retail license any equipment, fixtures, free hemp-cannabinoid beverages or hemp gelatin chewables, or service. The holder of a hemp-cannabinoid 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, or wholesaler of hemp-cannabinoid products, except as provided in subsection (C).

Amend the bill further, SECTION 39, 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 or bottle containing more than five milligrams but not more than ten milligrams of an allowable THC concentration, or a hemp gelatin chewable as permitted by this chapter must be sold only in licensed alcoholic liquor stores.

Renumber sections to conform.

Amend title to conform.