The proposed bill, H. 3601, aims to regulate the sale and distribution of products containing hemp-derived cannabinoids in South Carolina by adding Chapter 56 to Title 46 of the South Carolina Code of Laws. It establishes definitions for key terms, including "hemp-derived cannabinoid," "producer," and "retailer," and outlines the responsibilities of the Department of Agriculture in enforcing these regulations. The bill prohibits the sale of such products to individuals under the age of twenty-one and mandates that these products be kept behind the counter in retail establishments. Additionally, it requires that all products undergo testing for safety and quality, and that they meet specific labeling requirements, including warnings about potential risks associated with their use.

Furthermore, the bill imposes a five percent sales tax on hemp-derived cannabinoid products, with the revenue allocated to the Department of Agriculture for regulatory purposes. It also stipulates that businesses involved in the manufacturing or sale of these products must obtain a license from the Department of Agriculture, which includes a fee structure and eligibility criteria. Violations of the regulations can result in misdemeanor charges, and the bill outlines various offenses related to the sale and distribution of these products. Overall, the legislation seeks to create a structured framework for the hemp-derived cannabinoid market while ensuring public safety and compliance with age restrictions.