The bill H. 4004 introduces regulations for the distribution and sale of nonalcoholic hemp-derived beverages in South Carolina by adding Chapter 56 to Title 46 of the South Carolina Code of Laws. It defines key terms related to these beverages, including the allowable concentration of delta-9 tetrahydrocannabinol (THC), and establishes the South Carolina Department of Agriculture and the South Carolina Law Enforcement Division (SLED) as the primary authorities for enforcement and inspections. The bill outlines a licensing process for individuals and businesses, specifying that licenses are non-transferable and must be surrendered under certain conditions. It also includes provisions for fines, handling dishonored checks, and prohibits sales on credit.

Additionally, the bill amends existing laws regarding taxation on hemp-derived beverages, establishing a two percent discount for wholesalers who pay taxes on time and mandating that individuals or organizations importing untaxed beverages must pay a license tax. The Department of Revenue is granted authority to create rules for tax administration and enforcement, including the ability to inspect premises without a warrant. Revenue generated from these taxes will support the state’s general fund and a special school account. The legislation aims to ensure consumer safety, regulate the market, and generate revenue while maintaining strict compliance measures for businesses in the hemp-derived beverage industry.