Bill H. 4004 seeks to regulate 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 essential terms related to these beverages, including the permissible concentration of delta-9 tetrahydrocannabinol (THC), and outlines the manufacturing, selling, and licensing requirements. The South Carolina Department of Agriculture and the South Carolina Law Enforcement Division (SLED) are designated as the primary authorities for administering and enforcing these regulations, which include conducting inspections and ensuring compliance. The bill also establishes a licensing process for individuals and businesses, emphasizing good moral character and residency, and specifies that licenses are non-transferable and must be surrendered under certain conditions.

Additionally, the bill addresses taxation and penalties associated with hemp-derived beverages, including a two percent discount for wholesalers who pay taxes on time. It mandates testing and labeling requirements for these products, similar to those for alcoholic beverages, to ensure consumer safety and awareness. The Department of Revenue is granted authority to inspect premises and records related to the sale of these beverages without a warrant, and all tax revenue will be directed to the state’s general fund, with a portion allocated to a special school account. The act will take effect upon the Governor's approval, aiming to create a structured framework for the legal sale and distribution of hemp-derived beverages while prioritizing public safety and compliance with state laws.