A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "APOTHECARY RETAILER ACT" BY ADDING CHAPTER 140 TO TITLE 44 SO AS TO REGULATE THE SALE OF CERTAIN HEMP-DERIVED CANNABINOID PRODUCTS, SMOKING CESSATION PRODUCTS, AND WELLNESS PRODUCTS THROUGH THE USE OF LICENSED APOTHECARY RETAILERS; TO ESTABLISH AGE AND OTHER RESTRICTIONS APPLICABLE TO THE SALE OF COVERED PRODUCTS; TO EXEMPT APOTHECARY RETAILERS AND COVERED PRODUCTS FROM REGULATION PURSUANT TO TITLE 61; TO REQUIRE THE DEPARTMENT OF REVENUE TO ESTABLISH AND ISSUE APOTHECARY RETAILER LICENSES, TO PROMULGATE REGULATIONS, AND TO ENFORCE THE PROVISIONS OF THE CHAPTER; AND FOR OTHER PURPOSES.

 

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

 

SECTION 1.  This act may be cited as the "Apothecary Retailer Act."

 

SECTION 2.  The General Assembly finds all of the following:

    (A) There is a need to establish a controlled, regulated retail environment for products intended as alternatives to traditional tobacco and alcohol use, including smoking cessation and wellness-oriented products.

    (B) Consumers are increasingly seeking health-focused alternatives, including nicotine replacement, vapor products, hemp-derived cannabinoid products, and other plant-based wellness products.

    (C) Existing regulatory frameworks do not adequately distinguish between general retail environments, alcohol-regulated establishments, or controlled-access specialty retailers.

    (D) A dedicated retail category will promote public health and consumer safety, ensure age-restricted access and compliance, and support South Carolina small businesses, including veteran-owned operations.

 

SECTION 3.  Title 44 of the S.C. Code is amended by adding:

 

CHAPTER 140

 

Apothecary Retailers

 

    Section 44-140-10. For purposes of this chapter:

    (1) "Apothecary retailer" means a retail establishment licensed by the Department of Revenue to sell regulated wellness and alternative products in a controlled, age-restricted environment.

    (2) "Covered product" means any of the following:

       (a) hemp-derived cannabinoid products, including low-dose beverages containing up to ten milligrams of THC per serving, edibles, tinctures, topicals, and CBD products;

       (b) smoking cessation products, including nicotine replacement therapies such as patches, gum, and lozenges, vapor products intended for adult use, and reduced-risk nicotine delivery products; and

       (c) wellness and alternative products, including herbal and botanical products, nonalcohol functional beverages, and dietary supplements and plant-based wellness products.

 

    Section 44-140-20. (A) The Department of Revenue shall establish an apothecary retailer license for which the annual fee is three hundred dollars. A separate license is required for each retail location.

    (B) An apothecary license holder is not required to hold a liquor license, and the license may not be classified pursuant to Title 61.

    (C) Priority for issuance of an apothecary retailer license may be given to:

       (1) existing compliant apothecary retailers;

       (2) South Carolina-based operators; and

       (3) businesses primarily engaged in covered product sales.

 

    Section 44-140-30. (A) It is unlawful for an individual to sell, furnish, give, distribute, purchase for, or provide a covered product to a minor under the age of twenty-one years.

    (B) It is unlawful to sell a covered product to an individual who does not present, upon demand, proper proof of age. Failure to demand identification to verify an individual's age is not a defense to an action initiated pursuant to this subsection. Proof that is demanded, is shown, and reasonably is relied upon for the individual's proof of age is a defense to an action initiated pursuant to this subsection.

 

    Section 44-140-40. (A) All covered products must be maintained behind the counter and accessible only by employees.   

    (B) It is unlawful to sell a covered product through a vending machine.

    (C) Every apothecary retailer must implement age-verification procedures that comply with the requirements of Section 44-140-30(B).

    (D) On-premises consumption of any covered product is prohibited unless otherwise authorized by law.

 

    Section 44-140-50. (A) Every apothecary retailer must ensure that any covered product offered for sale has met and complied with all applicable testing, labeling, and packaging requirements.

    (B) Hemp-derived products must not exceed ten milligrams THC per serving and must not contain synthetic cannabinoids.

    (C) Covered products must not be marketed to minors or resemble products intended for children.

 

    Section 44-140-60. Covered products, including hemp-derived cannabinoid products and nonalcohol wellness beverages, must not be classified, regulated, or restricted pursuant to Title 61.

 

    Section 44-140-70. Violations of this chapter by an apothecary retailer, including the apothecary retailer's employees, may result in license suspension, license revocation, or civil penalties imposed by the Department of Revenue.

 

    Section 44-140-80. The Department of Revenue may promulgate regulations necessary to implement the provisions of this chapter.

 

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

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