Indicates Matter Stricken

Indicates New Matter

 

Committee Report

January 29, 2026

 

H. 4759

 

Introduced by Reps. W. Newton, Bailey, Bradley, Brewer, Chapman, Crawford, Davis, Erickson, Gatch, Gilliam, Guest, Haddon, Hartz, Herbkersman, Hewitt, Hiott, Hixon, Holman, Lawson, Ligon, Long, Lowe, Martin, T. Moore, B. Newton, Oremus, Pedalino, Pope, Rankin, Robbins, Schuessler, Sessions, G. M. Smith, M. M. Smith, Taylor, Vaughan, Whitmire, Willis, Wooten, Yow and C. Mitchell

 

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. 4759) to amend the South Carolina Code of Laws by adding Section 46-55-5 so as to provide a purpose of regulating the sale and distribution of consumable hemp products, 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(2) and inserting:

    (2) "Cannabinoids" means any tetrahydrocannabinol (THC) derived from hemp except CBD, CBG, CBC, or other non-intoxicating hemp products that cause a psychoactive reaction.

Amend the bill further, SECTION 2, by striking Section 46-55-10(5) and inserting:

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

Amend the bill further, SECTION 2, by striking Section 46-55-10(17) and (18) and inserting:

    (17) "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.

    (13)(17)(18) "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)(18)(19) "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 State. to 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 of one percent on a dry weight basis, produced in accordance with 7 U.S.C Section 1639o et. seq.

Amend the bill further, SECTION 4, by striking Section 61-14-20(2) and inserting:

       (2) "Cannabinoids" means any tetrahydrocannabinol (THC) derived from hemp except CBD, CBG, CBC, or other non-intoxicating hemp products.

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

SECTION X. Article 3, Chapter 14, Title 61 of the S.C. Code is amended by adding:

 

    Section 61-14-370. 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.

Amend the bill further, SECTION 6, by striking Section  and inserting:

SECTION 6.  This act takes effect on July 1, 2026 The prohibition and enforcement of hemp beverage distribution and sales to individuals under the age of twenty-one are effective upon signature of the Governor. The remaining provisions of this act are effective October 1, 2026.

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 regulates the sale and distribution of consumable hemp products, and states that the manufacture, sell, and distribution of consumable hemp products is strictly prohibited unless specifically provided for in the Hemp Farming Act and in the new chapter created by this bill, Chapter 14 of Title 61. This bill defines cannabinoids, 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 tetrahydrocannabinol (THC) concentration of not more than three-tenths of one percent on a dry weight basis. In addition, this bill establishes definitions for batch, certificate of analysis, and hemp beverage, among other definitions.

 

This bill states that the functions, duties, and powers set forth in Chapter 14 of Title 61 are vested in DOR and SLED. SLED must enforce the provisions of this chapter, and DOR must administer the provisions related to the hemp beverage licenses and taxes. This bill also authorizes DOR and SLED to promulgate regulations necessary for the proper administration and enforcement of this bill, including, but not limited to, for applications and issuances of hemp beverage licenses, to prevent unlawful practices, to obtain samples, those related to producers and wholesalers, and for the sale, distribution, promotion, and shipment of hemp beverages into and within the state. Further, this bill requires that SLED conduct random, unannounced inspections at locations where such products are sold or distributed to ensure compliance.

 

This bill establishes hemp beverage licenses, including manufacturers' licenses, wholesalers' licenses, and retail dealers' licenses. DOR is authorized by this bill to issue, suspend, revoke, renew, or decline to renew hemp beverage licenses pursuant to Chapter 6 of Title 61 dealing with the regulation of retailers, wholesalers, and manufacturers of alcohol and alcoholic beverages and Chapter 2 of Title 61 dealing with general provisions of alcohol and alcoholic beverages licenses and contested case hearings. A retailer may only be issued a hemp beverage license if they are in possession of a valid retail liquor store license. This bill states that hemp beverages cannot be sold, bartered for, exchanged, transferred, or delivered for resale by a manufacturer, wholesaler, or retailer without the valid license(s) to do so, and a manufacturer, wholesaler, or retailer cannot conduct businesses with another entity who does not also possess the necessary license(s). This bill requires manufacturers of hemp beverages to be subject to Sections 61-6-1100 and 6-6-1110, related to restrictions upon manufacturers and manufacturer's license fees, to the same extent as those provisions apply to manufactures of alcoholic liquor. This bill also specifies that wholesalers and retailers are both subject to Article 3 of Chapter 6 of Title 61, related to regulations of retailers, wholesalers, and manufacturers, to the same extent as those provisions apply to alcoholic liquor.

 

Moreover, this bill sets the biennial license taxes for hemp beverages, in which the manufacturer's license is $50,000, the wholesaler's license is $20,000, and the retailer dealer's license is $1,200. Each applicant must pay a filing fee of $100, which must accompany the initial application for each location and is not refundable. A person who applies for a license after the first day of a license period shall pay the license fees as follows: the entire fee if filing in the first quarter of the license period, three-fourths of the prescribed fee if filing in the second quarter of the license period, one-half of the prescribed fee if filing in the third quarter of the license period, and one-fourth of the prescribed fee if filing in the final quarter of the license period.

 

Furthermore, this bill requires that hemp beverage sales must be taxed at the same rate and in the same manner as alcoholic liquors pursuant to Article 3 of Chapter 33 of Title 12, and therefore, hemp beverages are to be taxed as follows: hemp beverages are subject to a tax of $0.12 upon each eight ounces or fractional quantity thereof and an additional tax of $0.05 upon each eight ounces or a fractional quantity thereof or $0.71825 in total per liter. Taxes must be paid to and collected by DOR.

 

This bill also requires that wholesale of hemp beverages must be taxed at the same rate and in the same manner as Article 5 of Chapter 33 of Title 12, and therefore, wholesale hemp beverages are to be taxed as follows: every licensed wholesaler shall be subject to a tax of $1.81 on each case of hemp beverages, an additional tax of $0.56 on each standard case of hemp beverages, and an additional surtax of 9 percent on all taxes imposed upon hemp beverages. Furthermore, every wholesaler must pay an additional $2.99 on each standard case of hemp beverages, which is to be borne by the licensed retailer and must be paid to the wholesaler.

 

In addition, this bill creates requirements for which testing laboratories may be used as well as protocols for testing by independent testing laboratories and states what information must be included in a certificate of analysis. Moreover, this bill creates packaging requirements, including the type of artwork that may be used as well as labeling requirements, including required ingredients lists, barcodes that can be linked to the certificate of analysis, manufacture and expiration dates, serving size, and warning, among other requirements.

 

This bill also requires that retailers must post a sign that states the laws in relation to possession and purchasing consumable hemp products by people under the age of twenty-one. A retailer that fails to post the required sign is guilty of a misdemeanor that is subject to a fine of not more than $100 or imprisonment for not more than thirty days. DOR must prescribe the size, lettering, and location of signs through the use of regulations.

 

This bill makes it illegal to sell or possess a consumable hemp product, other than hemp beverages governed by Chapter 14 of Title 61, and any violations are punishable 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 imprisonment, or both. In addition, any consumable hemp products in violation of the Hemp Farming Act as well as any hemp beverages possessed, distributed, sold, or offered for sale to consumers in South Carolina in violation of this bill are considered contraband and may be seized by law enforcement.

 

This bill also creates new offenses dealing with hemp beverages pertaining to a person who is under the age of twenty-one. This bill makes it illegal to sell or distribute consumable hemp product to a person under twenty-one years old, or to purchase such consumables on behalf of a person under twenty-one. Any violations are punishable in accordance with Chapter 6 of Title 61, which include existing penalties for sale of alcohol and alcoholic beverages to a person under twenty-one. Likewise, this bill makes it illegal for a person under twenty-one to purchase, or knowingly possess a hemp beverage, and violations are guilty of a misdemeanor, which are subject to a fine of $100 to $200, or imprisonment for not more than thirty days, or both. In addition, this bill makes it illegal to sell or possess a hemp beverage containing more than five milligrams of hemp derived delta-9 THC per twelve ounces or any beverage containing any other intoxicating hemp products, 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. A person who is charged with one of the aforementioned provisions may avail themselves of any affirmative defenses, diversion programs, conditional discharge provisions, intervention programs, or similar alternatives to conviction and similar that are provided by law and would be available to a person charged with a similar alcoholic liquor violation.

 

This bill also makes it illegal to have a hemp-derived beverage in an open container while located upon public highways or highway rights of way. Any violations of this provision are guilty of a misdemeanor and subject to a fine of not more than $100 or imprisonment of up to thirty days. Additionally, this bill makes it illegal to sell consumable hemp products on Sundays, except as authorized by law. A person who violates this provision is guilty of a misdemeanor and is subject to a fine of $200 or imprisonment for sixty days for a first offense, a fine of $1,000 or imprisonment for one year for a second offense, and a fine of $2,000 or imprisonment for two years for a third and subsequent offenses.

 

This bill establishes product requirements for intoxicating hemp beverages, including dealing with required certificates of analysis, packaging, serving size and product content, and labeling. Any person who distributes, sells, or offers for sell any hemp beverage in violation of these requirements is subject to a fine of $1,000 for a first offense within a three-year period, a fine of $2,500 for a second offense within a three-year period, and a fine of $5,000 for a third and subsequent offenses within a three-year period.

 

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.

 

Administrative Law Court. This bill authorizes DOR to issue, suspend, revoke, renew, or decline a hemp beverage license, which may be appealed by requesting a contested case hearing before the ALC. The ALC indicates that these cases would come before the Court under the current organizational framework of contested cases from DOR. However, as this is a new licensing process and program within DOR, there are no data available to estimate the number of hearings or appeals that would be filed with the Court. The ALC anticipates that if this bill results in a significant increase in the workload, then an increase in General Fund appropriations may be requested.

 

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).

 

State Law Enforcement Division. This bill will create additional workload for SLED in order to enforce the new consumable hemp products and hemp beverage requirements in this bill as these are novel products, which will require expanded focus, time, and expertise to regulate. 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. In addition, hemp beverages are a specialty item, and therefore, new businesses may begin operating that only sell beverages, which would result in more liquor/hemp license applications for licensing agents to investigate. SLED anticipates the need for 10.0 new FTEs and an increase in expenses by approximately $2,458,000 in FY 2026-27, including $1,420,000 of recurring and $1,038,000 of non-recurring expenses, and $1,420,000 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
Special Agent II, Licensing Functions	2.0	$224,000
OPERATING EXPENSES
Description of Expenses		Recurring Expenses	Non-Recurring Expenses
Gas		$84,000
I-Phone with Hotspot		$8,000
Mobile and Portable 800 Radio Service		$16,000
Other Recurring Costs		$6,000
Uniform Replacement		$6,000
Training/Travel		$15,000
Technology Licenses		$12,000
1/5 Vehicle Replacement		$155,000
Vehicle			$775,000
Protective Vest and Cover			$26,000
Glock, Duty Belt, Holster			$15,000
Patrol Rifle			$17,000
Uniforms, Boots, Raingear, Protective Gloves, Handcuffs, PPE, Other			$55,000
Motorola Tri-band Portable Radio			$120,000
Computer Equipment			$30,000

 

Department of Revenue. This bill creates additional responsibilities for DOR in order to administer the new hemp beverage licenses, taxes, and fees. DOR indicates that this bill will increase recurring expenses by approximately $120,000 to hire 2.0 FTE ABL Analysts. DOR anticipates that system upgrades, new application creation, the development of new guidelines, and the website updates necessary for the new hemp beverage licenses, taxes, and fees can be handled within the scope of the department's current processes and procedures. DOR will request General Fund appropriations to fund expenses due to this bill. 

 

State Revenue

This bill applies the current alcoholic liquor taxes to hemp beverages and creates a new manufacturer's, wholesaler's, and retail dealer's license for hemp beverages. This bill will increase General Fund revenue due to the new taxes and license fees for hemp beverages. The amount of revenue to be generated will be dependent on the number of wholesalers, manufacturers, and retail dealers that apply for a license and sell hemp beverages. Therefore, the revenue impact of this bill is undetermined. For information, the following table outlines the new taxes and license fees, and to which funds the revenue is to be distributed.

 

Applies To	Tax & Fees	Description	Fund Distribution
Wholesalers & Retailers	$0.12	Per 8 oz. of Alcohol	GF
Wholesalers & Retailers	$0.05	Per 8 oz. of Alcohol	GF
Wholesalers	$1.81	Per Standard Case of Hemp Beverages	GF
Retailers Pay Wholesalers	$2.99	Per Standard Case of Hemp Beverages	GF
Wholesalers	$0.56	Additional Tax Per Standard Case of Hemp Beverages	GF
Wholesalers	9.0%	Surtax on all Taxes Imposed Upon Hemp Beverages.	GF
Manufacturers	$50,000	Biennial License Tax	GF
Wholesalers	$20,000	Biennial License Tax	GF
Retailers	$1,500	Biennial License Tax	GF
Manufacturers, Wholesalers, Retailers	$100	License Filing Fee	GF

 

Further, state and local sales tax are currently applicable to hemp beverages; and therefore, we do not anticipate an increase in state sales tax collections due to this bill. However, this bill classifies other consumable hemp products as contraband and makes them illegal to sell or possess. Currently, any other consumable hemp products currently 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 are 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.

 

Local Expenditure

This bill may also result in an increase in the number of local court cases and potentially the number of persons sentenced to jail time, which may increase the workload of the local court system and local jails. The potential increase in expenses will depend upon the increase in the number of cases and number of sentences. Therefore, the potential increase in local expenses is undetermined.

 

 

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 A PURPOSE OF REGULATING THE SALE AND DISTRIBUTION OF CONSUMABLE HEMP PRODUCTS; BY AMENDING SECTION 46-55-10, RELATING TO HEMP FARMING DEFINITIONS, SO AS TO ADD DEFINITIONS FOR "CONSUMABLE HEMP PRODUCT" AND "INTOXICATING HEMP PRODUCT"; BY ADDING SECTION 46-55-70 SO AS TO PROHIBIT THE SALE OF CERTAIN CONSUMABLE HEMP PRODUCTS; BY ADDING SECTION 46-55-80 SO AS TO PROVIDE THAT INTERSTATE COMMERCE IS NOT BEING LIMITED; AND BY ADDING CHAPTER 14 TO TITLE 61 SO AS TO PROVIDE DEFINITIONS RELATING TO INTOXICATING HEMP BEVERAGES, PROVIDE FOR ENFORCEMENT, PROVIDE FOR INTOXICATING HEMP BEVERAGE PRODUCT REQUIREMENTS, AND TO PROVIDE FOR LICENSING AND TAXES.

 

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 regulate the sale and distribution of consumable hemp products. It is the intent of the General Assembly that the manufacture, sale, and distribution of consumable hemp products is strictly prohibited unless specifically provided for in this chapter and Chapter 14, Title 61. In acknowledging consumable hemp products may be intoxicating, the regulation and control of such products in this State is in the interest of public health and safety through ensuring proper age verification and the state's ability to efficiently enforce the requirements and restrictions contained in this chapter.

 

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) "Cannabinoids" means any tetrahydrocannabinol (THC) derived from hemp.

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

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

    (5) "Consumable hemp product" means a finished hemp product that is intended for human consumption, ingestion, inhalation, or absorption and contains any part of the hemp plant, including intoxicating hemp products, cannabinoids, or any compound, concentrate, derivative, including synthetic derivatives, extract, isolate, or resin derived from hemp other than CBD.

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

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

    (6)(8) "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)(9) "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)(10) "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 the federally defined THC level for hemp a delta-9 tetrahydrocannabinol (THC) concentration of not more than three-tenths of one percent (.3%) on a dry weight basis. Hemp shall be considered an agricultural commodity.

    (9)(11) "Hemp products" means all products with the federally defined THC level for hemp  a delta-9 tetrahydrocannabinol (THC) concentration of not more than three-tenths of one percent (.3%) on a dry weight basis 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.

    (12) "Intoxicating hemp product" means a product comprised of 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, hexahydrocannabiphrol, 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 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; or

       (xvii) any other substance that contains THC that, when ingested, inhaled, or absorbed into the body, produces an intoxicating or psychoactive reaction.

    (10)(13) "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)(14) "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)(15) "Processing" means converting an agricultural commodity into a marketable form.

    (16) "SLED" means the South Carolina Law Enforcement Division.

    (13)(17) "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)(18) "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 possessed, distributed, sold, or offered for sale to consumers in this State in violation of this chapter is considered contraband and may be seized by law enforcement as provided for by law.

    (B) The sale or possession of a consumable hemp product, other than hemp beverages governed by Chapter 14, Title 61, 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 deliveries, 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 is convicted of this subsection is guilty of a misdemeanor and may be fined up to three thousand dollars or up to three years in jail, or both.

    (D) SLED is vested with the enforcement of this section.

 

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

 

CHAPTER 14

 

Intoxicating Hemp Beverages

 

Article 1

 

Definitions

 

    Section 61-14-20.  As used in this chapter:

       (1) "Batch" means a specific quantity of a specific product containing cannabinoids which are manufactured at the same time and use the same methods, equipment, and ingredients that are uniform and intended to meet specifications for identity, strength, purity, and composition and is manufactured, packaged, and labeled according to a single-batch production record executed and documented.

       (2) "Cannabinoids" means any tetrahydrocannabinol (THC) derived from hemp.

       (3) "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 consumable hemp product.

       (4) "Department" means the South Carolina Department of Revenue.

       (5) "Hemp" means 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 (THC) concentration of not more than three-tenths of one percent on a dry weight basis.

       (6) "Hemp beverage" is an intoxicating, alcoholic 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. "Hemp beverages" may not contain more than five milligrams, per serving, of hemp-derived tetrahydrocannabinol (THC) with concentrations of delta-9 THC of not more than 0.3 percent on a dry weight basis and must be sold in twelve-ounce cans or bottles. A beverage containing any other intoxicating hemp product as defined in Section 46-55-10, whether combined with delta-9 THC or not, is strictly prohibited by law.

       (7) "Manufacture" means to compound, blend, extract, infuse, cook, or otherwise make or prepare hemp beverages, including the processes of extraction, infusion, packaging, repackaging, labeling, and relabeling of hemp beverages.

       (8) "Producer" means a manufacturer, bottler, or importer of hemp beverages into the United States.

       (9) "Proof of age" means a valid driver's license or other government-issued identification card that contains a photograph of the person and confirms the person's age as twenty-one years of age or older.

       (10) "Retailer" means a person or entity that sells hemp beverages for consumption and not for resale.

       (11) "Retail establishment" means a place of business open to the general public for the sale of goods or services.

       (12) "Serving" means a hemp beverage containing twelve fluid ounces.

       (13) "SLED" means the South Carolina Law Enforcement Division.

       (14) "THC" means tetrahydrocannabinol.

       (15) "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 beverages for resale.

 

Article 3

 

Enforcement

 

    Section 61-14-300. (A) The functions, duties, and powers set forth in this chapter are vested in the department and SLED. The department must administer the provisions of this chapter, and SLED must enforce the provisions of this chapter.

    (B) All hemp beverages distributed into or within the State and offered for sale and sold to consumers in this State must be governed by this chapter.

    (C) Any hemp beverage possessed, distributed, sold, or offered for sale to consumers in this State in violation of this article must be considered contraband and may be seized by law enforcement as provided for by law.

    (D) The department shall administer the provisions of this article related to the licensing and taxation of hemp beverages.

    (E) SLED is vested with the enforcement of this article.

    (F) The department and SLED are authorized to promulgate regulations necessary to carry out the duties imposed upon them by law for the proper administration and enforcement of, and consistent with, this article including, but not limited to:

       (1) regulations for the application and issuance of hemp beverage licenses;

       (2) regulations to prevent the unlawful manufacture, bottling, sale, distribution, transportation, and importation of hemp beverages;

       (3) regulations necessary to effect an equitable distribution of hemp beverages in this State;

       (4) regulations for the analysis of hemp beverages sold in this State and for a procedure for obtaining the samples for this purpose;

       (5) regulations governing the administration and enforcement of provisions relating to producers and wholesalers of hemp beverages; and

       (6) regulations for application for and issuance of hemp beverage licenses and the sale, distribution, promotion, and shipment of hemp beverages into and within the State.

 

    Section 61-14-310. SLED has the exclusive authority to enforce the provisions of this chapter in a manner that may reasonably be expected, and shall conduct random, unannounced inspections at locations where such products are sold or distributed to ensure compliance with this chapter.

 

    Section 61-14-320. (A) It is unlawful for a person to knowingly sell or distribute hemp beverages to a person who is under twenty-one years of age or to purchase hemp beverages on behalf of a person who is under twenty-one years of age.

    (B) A person who violates this section must be punished in accordance with Chapter 6, Title 61 related to sales of liquor to underage persons including, but not limited to, Sections 61-6-4070, 61-6-4075, 61-6-4080, and 61-6-4090.

    (C)(1) It is unlawful for a person under the age of twenty-one to purchase, attempt to purchase, consume, or knowingly possess consumable hemp beverages. 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 consumable hemp beverages.

       (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.

    (D) The sale or possession of a hemp beverage containing more than five milligrams of hemp derived delta-9 THC per twelve ounces or any beverage containing any other intoxicating hemp products, whether combined with delta-9 THC or not, is prohibited by law and punishable in the same manner as THC pursuant to Sections 44-53-190 and 44-53-370.

    (E) A person who is charged with a violation of this section may avail themselves of any affirmative defenses, diversion programs, conditional discharge provisions, intervention programs, or similar alternatives to conviction and sentencing that are provided by law and would be available to a person charged with a similar violation involving alcoholic liquor.

 

    Section 61-14-330. (A) A person engaged in the business of selling retail hemp beverages must post, in each location that he has obtained a license, a sign with the following words printed: "The possession of hemp-derived beverages by a person under twenty-one years of age is a criminal offense under the laws of this State, and it also is unlawful for a person to knowingly give false information concerning his age for the purpose of hemp beverages." The department shall prescribe by regulation the size of the lettering and the location of the sign on the seller's premises.

    (B) A retail seller of hemp beverages 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.

 

    Section 61-14-340. (A) This article does not permit a person to:

       (1) undertake any task under the influence of hemp beverages 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 beverage.

    (B) This article does not exempt a person from prosecution for a criminal offense related to impairment or intoxication resulting from use of hemp beverages or relieve a person from any requirement under law to submit to a breath, blood, urine, or other test to detect the presence of a controlled substance.

 

    Section 61-14-350. It is unlawful for a person to have in his possession, except in the trunk or luggage compartment, a consumable hemp product in an open container in a motor vehicle of any kind while located upon the public highways or highway rights of way of this State. This section must not be construed to prohibit the transporting of consumable hemp products in a closed container, and this section does not apply to vehicles parked in legal parking places during functions such as sporting events where law enforcement officers are on duty to perform traffic control duties. A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned not more than thirty days.

 

    Section 61-14-360. It is unlawful to sell consumable hemp products on Sunday except as authorized by law, 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 his other powers. A person who violates a provision of this section 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

 

    Section 61-14-500. (A) A hemp beverage 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 described in Section 61-14-520 issued by an independent testing laboratory that tests the batch from which the product 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 Sections 61-14-20 and 61-14-320; and

       (4) meets the labeling requirements described in Section 61-40-540.

    (B) Every distributor and retailer shall maintain and make immediately available for inspection to any law enforcement officer or authorized agent of the board a copy of the certificate of analysis of each consumable hemp product 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 beverage in violation of this section is subject to the following penalties:

       (1) for a first offense within a three-year period, a fine of one thousand dollars;

       (2) for a second offense within a three-year period, a fine of two thousand five hundred dollars; and

       (3) for a third or subsequent offense within a three-year period, a fine of five thousand dollars.

 

    Section 61-14-510. In order to protect the health, safety, and welfare of the residents of this State from dangerous foreign products, an independent testing laboratory must meet all of the following requirements:

       (1) is accredited by a third-party accrediting body as a competent testing laboratory pursuant to International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) 17025:2017 of the International Organization for Standardization;

       (2) does not have a direct or indirect interest in the producer whose product is being tested; and

       (3) does not have a direct or indirect interest in a facility that cultivates, processes, distributes, or sells hemp or consumable hemp products in this State or in another jurisdiction.

 

    Section 61-14-520. (A) The protocols for testing a hemp beverage by an independent testing laboratory must include the following, as well as a determination of corresponding tolerance limits:

       (1) cannabinoid content and potency including, but not limited to, all of the following:

           (a) total THC (THC+THCA);

           (b) total CBD (CBD+CBDA);

           (c) THC/CBD ratio, if applicable; and

           (d) percent of THC relative to original plant material (w/w);

       (2) terpene profiles;

       (3) heavy metals;

       (4) chemical contamination, such as residual solvents remaining after extraction and concentration;

       (5) microbials, including pathogenic microbials;

       (6) mycotoxins; and

       (7) residual insecticides, fungicides, herbicides, and growth regulators used during cultivation.

    (B) The certificate of analysis must include, at a minimum, all of the following:

       (1) the batch number or lot number of the product;

       (2) the date the certificate of analysis is issued;

       (3) the method of analysis for each test conducted;

       (4) the product name;

       (5) a scannable barcode or quick response code linked to the label on the consumable hemp product container;

       (6) the cannabinoid profile by the percentage in dry weight of CBD and total THC content and verification that the product contains an amount of total THC not exceeding that which is stated on the label of the product; and

       (7) a listing of all ingredients for each product, including, if present, solvents, pesticides, microbial contaminants, and heavy metals.

 

    Section 61-14-530. Packaging of consumable hemp products:

       (1) may not bear the likeness or contain cartoon-like characteristics of a real or fictional person, animal, or fruit that appeals to children;

       (2) may not be modeled after a brand of products primarily consumed by or marketed to children;

       (3) may not include a statement, artwork, or design that could reasonably mislead an individual to believe that the package contains anything other than a consumable hemp product; and

       (4) must be child-resistant.

 

    Section 61-14-540. Each container of a hemp beverage must be labeled to include, at a minimum:

       (1) a list of all ingredients in descending order of predominance;

       (2) a scannable barcode or quick response code linked to the certificate of analysis;

       (3) the manufacture date and expiration date;

       (4) the batch number must correspond to the certificate of analysis;

       (5) the total number of milligrams of THCs found in the container;

       (6) the serving size;

       (7) the total number of milligrams of THCs per serving; and

       (8) the following warnings:

           (a) to keep the product out of reach of children;

           (b) that consumption of the product may cause the person to fail a drug test due to THC being present;

           (c) that the product is not safe nor intended for any person under twenty-one years of age;

           (d) must contain the words "CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CERTAIN CANNABINOIDS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE HEAVY MACHINERY. PLEASE USE EXTREME CAUTION."; and

           (e) a statement that the hemp beverages are not approved for any medical use by the United States Food and Drug Administration.

 

Article 7

 

Licensing; Relationship between Manufacturers, Wholesalers, and Retailers; Taxation

 

    Section 61-14-700. (A) A manufacturer, wholesaler, or retailer of hemp beverages must be in possession of a valid applicable hemp beverage license issued by the department that has sole and exclusive power to issue hemp beverage licenses.

    (B) The department may issue, subject to revocation, the following licenses:

       (1) hemp beverage manufacturers' licenses which authorize the licensees to manufacture hemp beverages and to sell, deliver, or ship hemp beverages, in accordance with regulations, in bottles, cans, or in similar closed containers to a person in this State who has a wholesaler's license issued pursuant to this article, and in barrels, bottles, cans, or other closed containers to persons outside this State. However, deliveries or shipments may not be made into another state whose laws prohibit the consignee from receiving or selling hemp beverages;

       (2) hemp beverage wholesalers' licenses which authorize the licensees to purchase, store, keep, possess, import into this State, transport, sell, and deliver hemp beverages in bottles or similar closed containers, in accordance with regulations, to a person having a manufacturer's or retail dealer's license issued pursuant to this article; and

       (3) hemp beverage retail dealers' licenses which authorize the licensees to purchase hemp beverage from wholesalers having licenses issued pursuant to this article, and to store, keep, possess, and sell alcoholic liquors at retail. A hemp beverage retail dealer's license may only be issued to a retailer who is in possession of a valid retail liquor store license.

    (C) The department is authorized to issue, suspend, revoke, renew, or decline to renew hemp beverage licenses pursuant to Article 3, Chapter 6, Title 61; Sections 61-2-90 through 140; and Section 61-2-260.

 

    Section 61-14-710. (A) A manufacturer of hemp beverages or a person who imports these products produced outside the United States may not sell, barter, exchange, transfer, or deliver for resale hemp beverages unless the person holds a valid hemp beverage wholesaler's permit, and a holder of a hemp beverage wholesaler's permit may not sell, barter, exchange, transfer, or deliver for resale hemp beverages to a person who does not have a hemp manufacturer's license or hemp beverage retailer's license and an alcohol liquor store license.

    (B) Manufacturers of hemp beverages are subject to Sections 61-6-1100 and 61-6-1110 in the same manner and to the same extent as those provisions apply to manufacturers of alcoholic liquor.

    (C) Wholesalers of hemp beverages are subject to Article 3, Chapter 6, Title 61 in the same manner and to the same extent as those provisions apply to wholesalers of alcoholic liquor.

    (D) Retailers of hemp beverages must maintain an alcohol liquor store permit in order to sell hemp beverages. Retailers of hemp beverages are subject to Article 3, Chapter 6, Title 61 in the same manner and to the same extent as those provisions apply to alcoholic liquor.

 

    Section 61-14-720. (A) The biennial license taxes on licenses granted pursuant to this article in addition to all other license taxes, are as follows:

       (1) manufacturer's license: fifty thousand dollars;

       (2) wholesaler's license: twenty thousand dollars;

       (3) retail dealer's license: one thousand two hundred dollars.

    (B) Each applicant shall pay a filing fee of one hundred dollars, which must accompany the initial application for each location and is not refundable.

    (C) A person who applies for a license after the first day of a license period shall pay license fees in accordance with the schedule provided in Section 61-6-1810.

 

    Section 61-14-730. (A) Hemp beverage sales must be taxed at the same rate and in the same manner as alcoholic liquors pursuant to Article 3, Chapter 33, Title 12 except Section 12-33-245.

    (B) Wholesale of hemp beverages must be taxed at the same rate and in the same manner as Article 5, Chapter 33, Title 12.

 

SECTION 5.  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.

 

SECTION 6.  This act takes effect on July 1, 2026.

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