Rep. FORD proposes the following amendment (LC-3924.PH0030H):
Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:
SECTION X.A. Chapter 14 of Title 61 of the S.C. Code is amended by adding:Article 11
Hemp Specialty Retailers
Section 61-14-1100. The purpose of this article is to establish that the General Assembly finds that hemp is an agricultural commodity lawfully produced under federal and state law and that retail access to hemp-derived products should be regulated in a manner that:
(1) promotes public safety and responsible retailing;
(2) supports South Carolina hemp farmers, processors, and small businesses;
(3) provides regulated retail channels distinct from alcohol and tobacco retail establishments; and
(4) ensures that existing lawful hemp retailers may continue to operate under a clear and consistent regulatory framework.
Section 61-14-1110. For the purposes of this chapter, a "hemp specialty retailer" means a licensed retail establishment that:
(1) is primarily engaged in the sale of hemp products, hemp-derived consumable products, and hemp-cannabinoid beverages, pursuant to this chapter and Chapter 55, Title 46;
(2) holds a valid hemp specialty retailer license issued by the department pursuant to Section 61-14-715;
(3) complies with all age verification, signage, product display, and operational requirements pursuant to this chapter;
(4) maintain proper certificates of analysis for all hemp-cannabinoid beverages and hemp-derived consumable products offered for sale;
(5) operates in compliance with all local zoning ordinances and distance requirements from schools and churches; and
(6) does not sell tobacco products, pursuant to Section 16-17-501, or alcoholic beverages unless separately licensed as provided by law.
Section 61-14-1120. (A) The department may issue a hemp specialty retailer's license authorizing the licensee to sell at retail:
(1) hemp-cannabinoid beverages containing no more than five milligrams of allowable THC concentration in a single serving twelve-ounce container;
(2) hemp-cannabinoid beverages containing more than five milligrams but not more than ten milligrams of allowable THC concentration per serving pursuant to Section 61-14-540;
(3) hemp-derived consumable products intended for ingestion that are not liquids, including edible products containing not more than ten milligrams of allowable THC concentration per serving, provided that a package contains not more than three hundred servings;
(5) non-psychoactive cannabidiol products derived from pursuant to Chapter 55, Title 46.
(B) A hemp specialty retailer:
(1) may not sell tobacco products, pursuant to Section 16-17-501;
(2) may not sell alcoholic liquors, beer, or wine; and
(3) must primarily operate as a retail establishment engaged in the sale of hemp-derived products.
Section 61-14-1130. (A) An applicant for a hemp specialty retailer's license must submit to the department:
(1) a completed application on forms prescribed by the department;
(2) a non-refundable application fee of five hundred dollars;
(3) proof that the applicant is at least twenty-one years of age;
(4) proof of legal residency in the United States and residency in South Carolina for at least thirty days prior to application;
(5) documentation that the proposed retail location complies with all distance requirements from elementary, middle, and high schools and churches, pursuant to Section 61-14-920;
(6) certification that the applicant and all principals have completed a criminal background check by the division;
(7) proof of completion of a department approved responsible vendor training program, addressing hemp-cannabinoid beverage laws, age verification procedures, and product handling requirements;
(8) documentation of local business licenses and compliance with local zoning ordinance; and
(9) such other information as the department may reasonably require to ensure compliance with this chapter.
(B) The department shall conduct a criminal background check on all applicants and principals associated with the application. The department may deny a license based on a criminal history pursuant to Section 61-14-710.
Section 61-14-1140. (A) The biennial license fee for a hemp specialty retailer's license is two thousand dollars.
(B) A hemp specialty retailer's license is valid for two years from the date of issuance and may be renewed upon payment of the renewal fee and demonstration of continued compliance with all requirements of this chapter.
(C) All license fees collected under this section shall be deposited and allocated pursuant to Section 61-14-730.
(D) The department may not establish a numerical cap or moratorium on hemp specialty retailer's licenses, provided that applicants meet the requirements established in this chapter.
Section 61-14-1150. (A) A hemp specialty retailer must:
(1) maintain all certificates of analysis for hemp-cannabinoid beverages and hemp-derived consumable products pursuant to Section 61-14-530;
(2) display all required signage regarding age restrictions and possession laws pursuant to Section 61-4-70 and Section 61-14-900;
(3) implement and maintain age verification procedures to ensure no sales to persons under twenty-one years of age;
(4) comply with all product display and merchandising requirements established by the department;
(5) maintain accurate records of all hemp-cannabinoid beverage and hemp-consumable product purchases and sales for a period not less than three years;
(6) ensure all employees who handle or sell hemp-cannabinoid beverages or hemp-derived consumables products are at least eighteen years of age and have completed department approved training;
(7) comply with all packaging requirements, ensuring that products do not include imagery, language, or design that is appealing to children, including cartoons, animated characters, or imagery intended to attract youth;
(8) comply with all other operational requirements established by this chapter and regulations promulgated by the department; and
(9) purchase hemp-cannabinoid beverages from a licensed wholesaler authorized to distribute products pursuant to Chapter 4, Chapter 6, or Chapter 14, Title 61.
(B) Hemp-cannabinoid beverages and hemp-derived consumable products sold by hemp specialty retailers must not be consumed on the premises of the licensed establishment.
Section 61-14-1160. (A) The department may suspend or revoke a hemp specialty retailer's license for violation of this chapter by using the procedures and standards pursuant to Sections 61-14-330 through 61-14-350.
(B) A hemp specialty retailer who violates the provisions of this chapter is subject to the penalties established in Article 3, Chapter 14 including, but not limited to:
(1) sale to persons under twenty-one years of age pursuant to Section 61-14-320;
(2) sale of products without proper certificates of analysis pursuant to Section 61-14-530;
(3) failure to maintain required signage pursuant to Section 61-14-900; and
(4) sale of products exceeding the allowable THC concentration limits pursuant to Section 61-14-540.
Section 61-14-1170. Nothing in this article prohibits a county or municipality from adopting ordinances regulating the time, place, and manner of operation of hemp specialty retailers within its jurisdiction, provided such ordinances do not conflict with state law.
Section 61-14-1180. The department in consultation with the South Carolina Department of Agriculture and the division, is authorized to promulgate regulations necessary to implement the provisions of this amendment including, but not limited to:
(1) application procedures and forms for hemp specialty retailer's licenses;
(2) responsible vendor training program requirements and curriculum approval;
(3) product display and merchandising standards for hemp specialty retailers;
(4) record-keeping and reporting requirements;
(5) inspection protocols and monitoring procedures; and
(6) such other regulations as necessary to ensure public health, safety, and compliance with this chapter.
Section 61-14-1190. The division has the exclusive authority to enforce the provisions of this article in a manner that may reasonably be expected, and shall conduct random, unannounced inspections of locations where such products are manufactured, produced, sold, or distributed to ensure compliance with this chapter.
Section 61-14-1200. A retail establishment that was lawfully engaged in the retail sale of hemp products in South Carolina prior to January 1, 2026 may continue operations and may obtain a hemp specialty retailer's license upon application and without being considered a new location for purpose of distance requirements pursuant to Section 61-14-920(B). The provisions of Section 61-14-1120 are required.
B. (A) The department shall begin accepting applications for hemp specialty retailer licenses no later than ninety days after the effective date of this act.
(B) Existing retail establishments that were lawfully selling hemp products as of the effective date of this act and that desire to obtain a hemp specialty retailer's license shall have one hundred-eighty days from the effective date to submit a complete application and comply with Section 61-14-1120.
(C) During the transition period, an existing retailer may continue operations under its current authorizations until the department acts upon the hemp specialty retailer's license application, provided the retailer maintains compliance with all applicable laws and regulations including, but not limited to Section 61-14-1120 and Section 61-14-1150.
Renumber sections to conform.
Amend title to conform.