A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING CHAPTER 56 TO TITLE 46 SO AS TO REGULATE THE SALE AND DISTRIBUTION OF PRODUCTS CONTAINING HEMP-DERIVED CANNABINOID; AND BY AMENDING SECTION 59-1-380, RELATING TO TOBACCO-FREE SCHOOL CAMPUS POLICIES, SO AS TO ADD REFERENCES TO HEMP-DERIVED CANNABINOIDS.

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

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

CHAPTER 56

The Sale and Distribution of Products Containing Hemp-Derived Cannabinoid

    Section 46-56-10.  The purpose of this chapter is to regulate the sale and distribution of products containing a hemp-derived cannabinoid.

    Section 46-56-20.  As used in this chapter, unless the context otherwise requires:

    (1) "Batch" means a single stockkeeping unit with common cannabinoid input or a hemp flower of the same varietal and harvested on the same date manufactured during a defined cycle in such a way that it could be expected to be of a uniform character and should be designated as such.

    (2) "Department" means the Department of Agriculture.

    (3) "Hemp-derived cannabinoid":

       (a) means:

           (i) a cannabinoid other than delta-9-tetrahydrocannabinol, or anisomer derived from such cannabinoid, that is derived from hemp in a concentration of more than one tenth of one percent; or

           (ii) a hemp-derived product for ingestion or inhalation containing delta-9-tetrahydrocannabinol in a concentration of three tenths of one percent or less on a dry weight basis;

       (b) includes, but is not limited to:

           (i) Delta-8-tetrahydrocannabinol;

           (ii) Delta-10-tetrahydrocannabinol;

           (iii) Hexahydrocannabinol;

           (iv) Tetrahydrocannabinol acetate ester (THCo);

           (v) Tetrahydrocannabiphorol (THCp);

           (vi) Tetrahydrocannabivarin (THCv); and

           (vii) Tetrahydrocannabinolic acid (THCa); and

       (c) does not include:

           (i) Cannabichromene (CBC/CBCa/CBCv);

           (ii) Cannabicitran (CBT/CBTa);

           (iii) Cannabicyclol (CBL/CBLa);

           (iv) Cannabidiol (CBD/CBDa/CBDv/CBDp);

           (v) Cannabielsoin (CBE/CBEa);

           (vi) Cannabigerol (CBG/CBGa/CBGv/CBGm);

           (vii) Cannabinol (CBN/CBNa);

           (viii) Cannabivarin (CBV/CBVa);

           (ix) Hemp-derived feed products; or

           (x) Hemp-derived fiber, grain, or topical products.

    (4) "Manufacture" means to compound, blend, extract, infuse, cook, or otherwise make or prepare products containing a hemp-derived cannabinoid, including the processes of extraction, infusion, packaging, repackaging, labeling, and relabeling of products containing a hemp-derived cannabinoid.

    (5) "Producer" means a person or entity that manufactures hemp-derived cannabinoids or sells products containing hemp-derived cannabinoids to retailers.

    (6) "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 eighteen years of age or older.

    (7) "Retailer" means a person or entity that sells products containing a hemp-derived cannabinoid for consumption and not for resale.

    (8) "Serving" means a quantity of a hemp-derived cannabinoid product reasonably suitable for a single person's daily use.

    (9) "THC" means delta-9 tetrahydrocannabinol.

    Section 46-56-30.  (A) It is an offense for a person to knowingly sell or distribute a product containing a hemp-derived cannabinoid to a person who is under eighteen years of age or to purchase a product containing a hemp-derived cannabinoid on behalf of a person who is under eighteen years of age.

    (B) It is an offense for a person to knowingly persuade, entice, send, or assist a person who is under eighteen years of age to purchase, acquire, receive, or attempt to purchase a product containing a hemp-derived cannabinoid. This section does not preclude law enforcement efforts involving:

       (1) The use of a minor if the minor's parent or legal guardian has consented to this action; or

       (2) The use of a person under eighteen years of age who is not a minor if the individual has consented to this action.

    (C) It is an offense to knowingly distribute samples of products containing a hemp-derived cannabinoid in or on a public street, sidewalk, or park.

    (D) It is an offense to knowingly sell or distribute a product containing a hemp-derived cannabinoid without having first obtained proof of age from the purchaser or recipient.

    (E) It is an offense for a person who is under eighteen years of age to knowingly purchase, possess, or accept receipt of a product containing a hemp-derived cannabinoid or to knowingly present purported proof of age that is false, fraudulent, or not actually that person for the purpose of purchasing or receiving a product containing a hemp-derived cannabinoid.

    (F) A violation of this subsection is a Class A misdemeanor.

    Section 46-56-40.  (A) As used in this section:

       (1) "Counter" means the point of purchase at a retail establishment.

       (2) "Retail establishment" means a place of business open to the general public for the sale of goods or services and does not include a place of business for which entry is limited to persons eighteen years of age or older.

    (B) Any product containing a hemp-derived cannabinoid shall be maintained behind the counter of a retail establishment in an area inaccessible to a customer.

    (C) A violation of this section is a Class A misdemeanor.

    Section 46-56-50.  (A) The department shall enforce this chapter in a manner that may reasonably be expected to reduce the extent to which products containing a hemp-derived cannabinoid are sold or distributed to persons under eighteen years of age, and shall conduct random, unannounced inspections at locations where such products are sold or distributed to ensure compliance with this chapter.

    (B) The department shall submit an annual report to the general assembly describing in detail the department's enforcement efforts under this chapter. The report must also be published and made available to the public on the department's website.

    Section 46-56-60.  (A) A person or entity that is in the business of manufacturing or selling products containing a hemp-derived cannabinoid in this State, including as a producer or retailer, must obtain a license from the Department of Agriculture authorizing the person or entity to engage in that business prior to the commencement of business or by January 1, 2025, whichever is later.

    (B) In order to obtain and maintain a producer or retailer license under this section, a person must:

       (1) submit to the department information it prescribes as necessary for the efficient enforcement of this chapter;

       (2) pay to the department a fee of five hundred dollars for producers or two hundred fifty dollars per retailer per location; and

       (3) consent to reasonable inspection and sampling by the department of the person's inventory of products containing a hemp-derived cannabinoid.

    (C) A person is not eligible to obtain or maintain a producer or retailer license while serving a sentence for, or for ten years following completion of a sentence for, a drug-related felony offense in any state or federal jurisdiction.

    (D) A license issued pursuant to this section is valid for a period of one year and may be renewed annually. The department shall charge an annual renewal fee equal to the initial licensing fee.