Indicates Matter Stricken

Indicates New Matter

 

Committee Report

January 29, 2026

 

H. 4758

 

Introduced by Reps. W. Newton, Bradley, Brewer, Chapman, Crawford, Davis, Duncan, Erickson, Forrest, Gatch, Gilliam, Guest, Hartz, Hewitt, Hiott, Hixon, Holman, Lawson, Ligon, Lowe, Martin, McGinnis, T. Moore, B. Newton, Oremus, Pedalino, Pope, Rankin, Robbins, Schuessler, G. M. Smith, Taylor, Teeple, Vaughan, Whitmire, Willis, Wooten and McCravy

 

S. Printed 1/29/26--H.

Read the first time January 13, 2026

 

________

 

The committee on House Judiciary

To whom was referred a Bill (H. 4758) to amend the South Carolina Code of Laws by adding Section 46-55-5 so as to provide the purpose of this chapter is to encourage the lawful cultivation, harvesting, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

 

    Amend the bill, as and if amended, SECTION 2, by striking Section 46-55-10(4) and inserting:

    (4) "Consumable hemp product" means a finished hemp product that is intended for human consumption, ingestion, injection, or inhalation and contains any part of the hemp plant, including intoxicating hemp products, or any compound, concentrate, derivative, including synthetic derivatives, extract, isolate, or resin derived from hemp other than CBD, CBG, CBC, CBN provided the products do not contain an intoxicating hemp product that causes a psychoactive reaction. The term includes, but is not limited to, products that contain cannabinoids;

Amend the bill further, SECTION 2, by striking Section 46-55-10(15) and (16) and inserting:

    (13)(15) "State plan" means the plan submitted by the department and approved by the Secretary of the United States Department of Agriculture pursuant to which the department regulates hemp production. "Psychoactive Reaction" means an altered state of the brain that has significant effects on a person's psychological processes, consciousness, thinking, physical ability, perception, or emotion.

    (14)(16) "THC" means tetrahydrocannabinol. "State plan" means the plan submitted by the department and approved by the Secretary of the United States Department of Agriculture pursuant to which the department regulates hemp production.

       (17) "THC" means tetrahydrocannabinol.

Amend the bill further, SECTION 3, by striking Section 46-55-80 and inserting:

    Section 46-55-80.  Nothing in this chapter may be construed to limit the interstate commerce of any product being transported through this Stateto prohibit the continuous transportation through South Carolina of the plant Cannabis sativa L., and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths percent (0.3%) on a dry weight basis, produced in accordance with 7 U.S.C Section 1639 et. seq.

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

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

 

    Section 46-55-100. Local school districts shall collaborate with the State Department of Education, the South Carolina Law Enforcement Division, and the Attorney General's office, as appropriate, to implement a policy to educate and notify students of the provisions of this chapter which includes adequate notice to students, parents or guardians, the public, and school personnel of the change in law.

Renumber sections to conform.

Amend title to conform.

 

W. NEWTON for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill prohibits the possession, manufacturing, and distribution of consumable hemp products that contain THC This bill creates new definitions for consumable hemp product, and intoxicating hemp product as well as amends the current definitions for hemp or industrial hemp and hemp products to include a delta-9 THC concentration of not more than three-tenths of one percent on a dry weight basis. Also, any consumable hemp products in violation of the Hemp Farming Act are considered contraband and may be seized by law enforcement. The sale or possession of a consumable hemp product is prohibited by law and violations are subject to punishment in the same manner as THC pursuant Section 44-53-190, related to schedule I controlled substances, and Section 44-53-370 related to prohibited acts and penalties. This bill also prohibits online sales, direct deliveries, and direct shipments of consumable hemp products within or into South Carolina, and a person who is convicted of this offense is subject to a misdemeanor offense and may be fined up to $3,000 or up to three years in jail, or both.

 

This bill may result in an increase in the number of court cases, and potentially the number of incarcerations, which may increase the workload of the court system and the Commission of Indigent Defense, the Commission on Prosecution Coordination, Corrections, and PPP. The potential increase in expenses will depend upon the increase in the number of cases and number of incarcerations. However, Judicial and the agencies anticipate that the potential impact of the workload can be managed within existing appropriations but note that if this bill results in a significant increase in the workload, then an increase in General Fund appropriations may be requested. For information, according to Corrections, in FY 2024-25, the annual total cost per inmate was $37,503, of which $35,696 was state funded.

 

Department of Agriculture. This bill will have no expenditure impact on the Department of Agriculture as it does not create any new responsibilities or impose new requirements on the department. The Department of Agriculture does not anticipate this bill to impact the current Industrial Hemp Farming Program, which the department administers, as no grower or processor permits will be affected. The Department of Agriculture also does not anticipate any required changes to the state's plan regulating regulate hemp production, which is approved by the United States Department of Agriculture (USDA).

 

Department of Revenue. DOR indicates that this bill will have no expenditure impact on the department as it does not create any new responsibilities or impose new requirements on the department.

 

State Law Enforcement Division. This bill prohibits the possession, manufacturing, and distribution of consumable hemp products, which may increase the workload for SLED. SLED indicates that it will require significant effort to enforce the ban on all hemp consumables since the items are already being sold. Therefore, every vape store, convenience store, and restaurant currently selling the items would require inspections, education, and seizures as necessary. SLED anticipates the need for 8.0 new FTEs and an increase in expenses by approximately $1,967,000 beginning in FY 2026-27, including $1,137,000 of recurring and $830,000 of non-recurring expenses, and $1,137,000 each year thereafter. SLED will request General Fund appropriations to fund the expenses due to this bill. The table below displays the recurring and non-recurring expenses anticipated by the department.

 

 

RECURRING PERSONNEL EXPENSES
Position Title	# of FTEs	Salary, Overtime, & Fringe
Special Agent II, Enforcement Functions	8.0	$895,000
OPERATING EXPENSES
Description of Expenses		Recurring Expenses	Non-Recurring Expenses
Gas		$67,000
I-Phone with Hotspot		$6,400
Mobile and Portable 800 Radio Service		$13,00
Other Recurring Costs		$5,00
Uniform Replacement		$5,000
Training/Travel		$12,000
Technology Licenses		$10,000
1/5 Vehicle Replacement		$124,000
Vehicle			$620,000
Protective Vest and Cover			$21,00
Glock, Duty Belt, Holster			$12,000
Patrol Rifle			$13,000
Uniforms, Boots, Raingear, Protective Gloves, Handcuffs, PPE, Other			$44,000
Motorola Tri-band Portable Radio			$96,000
Computer Equipment			$24,000

 

State Revenue

This bill classifies consumable hemp products as contraband and makes them illegal to sell or possess. Currently, any consumable hemp products being sold in the state are subject to state and local sales tax. Therefore, this bill may reduce state sales tax revenue collections due to the prohibition of the products in the state. There is no data available to estimate the gross sales amount of hemp beverages in South Carolina, and therefore, any reduction in General Fund, EIA, and HEX revenue from sales tax is undetermined. However, DOR anticipates any impact to sales tax to be minimal.

 

This bill may also result in a change in the fines and fees collected in court. Court fines and fees are distributed to the General Fund, Other Funds, and local funds. Therefore, RFA anticipates that this bill may result in a change to General Fund and Other Funds revenue due to the change in fines and fees collections in court.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

_______

 

 

 

 

 

 

 

 

A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 46-55-5 SO AS TO PROVIDE THE PURPOSE OF THIS CHAPTER is to encourage the lawful cultivation, harvesting, and manufacturing of hemp; BY AMENDING SECTION 46-55-10, RELATING TO INDUSTRIAL HEMP CULTIVATION TERMS AND DEFINITIONS, SO AS TO PROVIDE ADDITIONAL TERMS AND THEIR DEFINiTIONS, AND TO REVISE THE DEFINITIONS OF EXISTING TERMS; and BY ADDING SECTIONs 46-55-70, 46-55-80, and 46-55-90 so as to regulate the distribution and sale of consumable hemp, to provide the provisions of this chapter may not be construed to limit interstate commerce, or to prohibit the lawful possession, manufacture, sale, or distribution of certain CBD products, and to provide penalties.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Chapter 55, Title 46 of the S.C. Code is amended by adding:

 

    Section 46-55-5. The purpose of this chapter is to encourage the cultivation, harvesting, and manufacturing of hemp in recognition that hemp is a valuable commodity. It is also the intent of the General Assembly to prohibit the possession, manufacturing, and distribution of consumable hemp products that contain tetrahydrocannabinol (THC) which is an illegal controlled substance under South Carolina law. In acknowledging consumable hemp products may be intoxicating, the prohibition of such products in this State is in the interest of the public health and safety of its citizens.

 

SECTION 2.  Section 46-55-10 of the S.C. Code is amended to read:

 

    Section 46-55-10.  For the purposes of this chapter:

    (1) "Cannabidiol" or "CBD" means the compound by the same name derived from the hemp variety of the Cannabis sativa L. plant.

    (2) "Commercial sales" means the sale of hemp products in the stream of commerce, at retail, wholesale, and online.

    (3) "Commissioner" means the Commissioner of the South Carolina Department of Agriculture.

    (4) "Consumable hemp product" means a finished hemp product that is intended for human consumption, ingestion, injection, or inhalation and contains any part of the hemp plant, including intoxicating hemp products, or any compound, concentrate, derivative, including synthetic derivatives, extract, isolate, or resin derived from hemp other than CBD. The term includes, but is not limited to, products that contain cannabinoids;

    (4)(5) "Cultivating" means planting, watering, growing, and harvesting a plant or crop.

    (5)(6) "Department" means the South Carolina Department of Agriculture.

    (6)(7) "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.

    (7)(8) "Handling" means possessing or storing hemp for any period of time. "handling" also includes possessing or storing hemp in a vehicle for any period of time other than during its actual transport from the premises of a licensed person to cultivate or process industrial hemp to the premises of another licensed person. "Handling" does not mean possessing or storing finished hemp products.

    (8)(9) "Hemp" or "industrial hemp" means the plant Cannabis sativa L. and any part of that plant, including the nonsterilized seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannaboid (THC) concentration of no more than three-tenths of one percent (.3%) on a dry weight basisthe federally defined THC level for hemp. Hemp shall be considered an agricultural commodity.

    (9)(10) "Hemp products" means all products with the federally defined THC level a delta-9 tetrahydrocannaboid (THC) concentration of no more than three-tenths of one percent (.3%) on a dry weight basis for hemp derived from, or made by, processing hemp plants or hemp plant parts, that are prepared in a form available for commercial sale, including, but not limited to, cosmetics, personal care products, food intended for animal or human consumption, cloth, cordage, fiber, fuel, paint, paper, particleboard, plastics, and any product containing one or more hemp-derived cannabinoids, such as cannabidiol. Unprocessed or raw plant material, including nonsterilized hemp seeds, is not considered a hemp product.

    (10)(11) "Intoxicating hemp products" are derivatives, extracts, cannabinoids, isomers, esters, ethers, acids, salts, and salts of isomers, esters, and ethers whenever the existence of such isomers, esters,

ethers, and salts is possible within the specific chemical designation including, but not limited to:

       (i) delta-10 cis or trans tetrahydrocannabinol and its optical isomers;

       (ii) delta-9 cis or trans tetrahydrocannabinol and its optical isomers;

       (iii) delta-8 cis or trans tetrahydrocannabinol and its optical isomers;

       (iv) delta-7 cis or trans tetrahydrocannabinol and its optical isomers;

       (v) delta-6a, 10a cis or trans tetrahydrocannabinol and its optical isomers;

       (vi) exo-tetrahydrocannabinol;

       (vii) metabolites of tetrahydrocannabinol, including 11-hydroxy-tetrahydrocannabinol, 3-27 hydroxy-tetrahydrocannabinol, and 7-12 hydroxy-tetrahydrocannabinol;

       (viii) tetrahydrocannabinolic acid;

       (ix) hydrogenated forms of tetrahydrocannabinol, including hexahydrocannabinol, hexaydrocannabiphrol, and hexahydrocannabihexol;

       (x) synthetic forms of tetrahydrocannabinol, including dronabinol;

       (xi) ester forms of tetrahydrocannabinol, including delta-8 tetrahydrocannabinol, tetrahydrocannabinol-O-acetate, delta-9 tetrahydrocannabinol-O-acetate, delta-10 tetrahydrocannabinol-O-acetate, delta-6a, 10a tetrahydrocannabinol-O-acetate and hexahydrocannabinol-O-6 acetate;

       (xii) ether forms of tetrahydrocannabinol and hexahydrocannabinol including delta-9 tetrahydrocannabinol methyl ether and delta-8 tetrahydrocannabinol methyl ether;

       (xiii) tetrahydrocannabivarins, including delta-8 tetrahydrocannabivarin but excluding delta-9 tetrahydrocannabivarin;

       (xiv) analogues or tetrahydrocannabinols with an alkyl chain of four (4) or more carbon atoms, including tetrahydrocannabiphorols, tetrahydrocannabioctyls, tetrahydocannabihexols, or tetrahydrocannabutols;

       (xv) delta-8 isotetrahydrocannabinol, delta-4 isotetrahydrocannabinol and isohexahydrocannabinol;

       (xvi) any combination of the compounds, including hexahydrocannabiphorol-o-ester and delta-8 tetrahydrocannabiphorol acetate, delta-9 tetrahydorcannabiphorol acetate."Licensee" means an individual or business entity possessing a license issued by the department under the authority of this chapter to cultivate, handle, or process hemp.

    (12) "Licensee" means an individual or business entity possessing a license issued by the department under the authority of this chapter to cultivate, handle, or process hemp.

    (11)(13) "Marijuana" has the same meaning as in Section 44-53-110 and does not include tetrahydrocannabinol in hemp or hemp products as defined herein.

    (12)(14) "Processing" means converting an agricultural commodity into a marketable form.

    (13)(15) "State plan" means the plan submitted by the department and approved by the Secretary of the United States Department of Agriculture pursuant to which the department regulates hemp production.

    (14)(16) "THC" means tetrahydrocannabinol.

 

SECTION 3.  Chapter 55, Title 46 of the S.C. Code is amended by adding:

 

    Section 46-55-70.  (A) Any consumable hemp product distributed, sold, or offered for sale to consumers in this State in violation of this chapter shall be considered contraband and may be seized by law enforcement as provided for by law.

    (B) The sale or possession of a consumable hemp product is prohibited by law and punishable in the same manner as THC pursuant to Sections 44-53-190 and 44-53-370.

    (C) Online sales, direct delivery, and direct shipments of consumable hemp products within or into this State are strictly prohibited. For purposes of this section, "direct shipment" means the shipment of any consumable hemp product from any producer or retailer of consumable hemp products directly to a resident of this State. A person who violates this subsection is guilty of a misdemeanor and, upon conviction, must be fined not more than three thousand dollars or imprisoned for three years, or both.

 

    Section 46-55-80.  Nothing in this chapter may be construed to limit the interstate commerce of any product being transported through this State.

 

    Section 46-55-90.  Nothing in this chapter may be construed to prohibit the possession, manufacture, sale, or distribution of CBD products, provided those products do not produce an intoxicating or psychoactive reaction when consumed by a person. CBD products that contain THC or intoxicating hemp products or any other controlled substances are prohibited by law. A person who violates this section must be punished pursuant to Section 44-53-370 as applicable.

 

SECTION 4.  This act takes effect upon approval by the Governor.

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