The bill H. 4004 seeks to establish a regulatory framework for the distribution and sale of nonalcoholic hemp-derived beverages in South Carolina by introducing Chapter 56 to Title 46 of the South Carolina Code of Laws. It defines key terms, including the allowable concentration of delta-9 THC, and outlines the roles of the South Carolina Department of Agriculture and the South Carolina Law Enforcement Division (SLED) in enforcing these regulations. The bill sets forth licensing requirements for producers, wholesalers, and retailers, mandating that all licensees be at least twenty-one years old and of good moral character. It also includes provisions for age verification, prohibits credit purchases, and establishes penalties for violations, including fines and potential misdemeanor charges for repeat offenders.

Additionally, the bill addresses taxation related to hemp-derived beverages, introducing a two percent discount for wholesalers who pay their taxes on time and specifying that taxes are in lieu of other taxes, except for sales and use taxes. It grants the Department of Revenue the authority to create rules for tax administration and enforcement, allowing inspections of premises and records without a warrant. The revenue generated from these taxes will be allocated to the state’s general fund and a special school account. Overall, the legislation aims to ensure public safety and compliance within the hemp-derived beverage market while promoting responsible consumption.