H 3935

South Carolina General Assembly
126th Session, 2025-2026
Bill 3935
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY enacting the "consumable
hemp licensing and regulation act" by ADDING CHAPTER 81 TO TITLE 39 SO AS TO provide
for the licensing and regulation of hemp-derived consumables, among other
things.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  This act may be cited as the "Consumable Hemp Licensing and Regulation
Act." The purpose of this chapter is to provide for the licensing and
regulation of hemp-derived consumables.
SECTION
2.A.  Title 39 of the S.C. Code is amended by
adding:
CHAPTER 81
Hemp-Derived Consumable Products
    Section
39-81-10.  As used in this chapter:
    (1)
"Batch" means:
       (a)
a specific quantity of hemp plants that are cultivated from the same seed or
plant stock, are cultivated together, are intended to be harvested together,
and receive an identical propagation and cultivation treatment;
       (b)
a specific quantity of hemp flower that is harvested together; is uniform and
is intended to meet specifications for identification, strength, purity, and
composition; and receives identical sorting, drying, curing, and storage
treatment; or
       (c)
a specific quantity of hemp-derived consumable product that is manufactured at
the same time and using the same methods, equipment, and ingredients that is
uniform and intended to meet specifications for identification, strength,
purity, and composition, and that is manufactured, packaged, and labeled
according to a single-batch production record executed and documented.
    (2) "Batch
number" means a unique numeric or alphanumeric identifier assigned to a batch
of hemp plants or hemp-derived consumable products.
    (3)
"Business" means any of the following licensed under this chapter:
       (a)
hemp-derived consumable product distributor;
       (b)
hemp-derived consumable product retailer;
       (c)
hemp-derived consumable product manufacturer; and
       (d)
hemp producer.
    (4)
"Counter" means the point of purchase at a retail establishment or in an area
of the retail establishment that is inaccessible to the customer.
    (5)
"Department" means the South Carolina Department of Agriculture.
    (6)
"Distributor" means a person or entity that purchases hemp-derived consumable
products from manufacturers and sells them to retailers.
    (7)
"Franchise" means a written or oral arrangement for a definite or indefinite
period, in which a person grants to another person a license to use a trade
name, trademark, service mark, or related characteristic, and in which there is
a community of interest in the marketing of goods or services at wholesale,
retail, by lease, agreement, or otherwise including, but not limited to, a
commercial relationship of definite duration or continuing indefinite duration,
between a hemp-derived consumable beverage product manufacturer and a
hemp-derived consumable product distributor, and wherein a hemp-derived
consumable product distributor is granted the right to offer, sell, and
distribute within this State or any designated area thereof some or all of the
hemp-derived consumable product manufacturer's hemp-derived consumable products
to hemp-derived consumable product retailers.
    (8) "Food
service establishment" means an establishment where food is prepared and served
on premise.
    (9) "Hemp"
means: the plant Cannabis sativa L. and any part of that plant, including the
seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids,
salts, and salts of isomers, whether growing or not, with a delta-9
tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight
basis.
    (10) "Hemp-derived
cannabinoid" means any cannabinoid derived from a compound found in hemp
including, but not limited to, delta-9 tetrahydrocannabinol (delta-9 THC),
tetrahydrocannabinolic acid (THCA), cannabidiol (CBD), cannabidiolic acid
(CBDA), cannabinol (CBN), cannabigerol (CBG), cannabicrhomene (CBC)
cannabicycol (CBL), cannabivarin (CBV), tetrahydrocannabivarin (THCV),
cannabidivarin (CBDV), cannabicitran (CBT), delta-7 tetraydrocannabinol
(delta-7 THC), delta-8 tetrahydrocannabinol (delta-8 THC), delta-10
tetrahydrocannabinol (delta-10 THC), or hexahydrocannabinol (HHC). This term
also includes any synthetic cannabinoid derived from hemp and contained in a
hemp-derived consumable product.
    (11) "Hemp-derived
consumable product" means a hemp product that is a finished good intended for
human ingestion or inhalation that contains a delta-9 THC concentration of not
more than three-tenths of one percent (0.3%) on a dry weight basis but may
contain concentrations of other hemp-derived cannabinoids in excess of that
amount. This term does not include hemp products intended for topical
application, or seeds or seed derived ingredients that are generally recognized
as safe by the United States Food and Drug Administration.
    (12) "Hemp
product" means hemp-derived feed products; or hemp-derived fiber, grain, or
topical products.
    (13) "Independent
testing laboratory" means a laboratory that meets all of the following
conditions:
       (a)
holds an ISO 17025 accreditation or is registered with the Drug Enforcement
Administration in accordance with 21 C.F.R. Section 1301.13;
       (b)
does not have a direct or indirect interest in the entity whose product is
being tested;
       (c)
does not have a direct or indirect interest in a facility that cultivates,
processes, distributes, dispenses, or sells hemp-derived consumable products in
this State or any other jurisdiction; and
       (d)
performs tetrahydrocannabinol concentration sampling and testing using the
high-performance chromatography (HPLC) method.
    (14) "Ingestion"
means the process of consuming hemp through the mouth by swallowing into the
gastrointestinal system or through tissue absorption.
    (15) "Inhalation"
means the process of consuming hemp through the respiratory system through the
mouth or nasal passageway.
    (16) "License"
means a license issued in accordance with this chapter.
    (17) "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.
    (18) "Manufacturer"
means any person who engages in the process of manufacturing, preparing, or
packaging of hemp-derived consumable products.
    (19) "Producer"
means any person or entity that engages in the process of farming and
harvesting hemp that is intended to be used in the manufacture of a
hemp-derived consumable product.
    (20) "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 twenty-one years of age or older.
    (21) "Resident
corporation" means a corporation incorporated under the laws of this State, all
the officers and directors of which, and all the stockholders, who legally and
beneficially own or control sixty percent or more of the stock in amount and in
voting rights, must be qualified legal voters and taxpaying citizens of the
county and municipality in which they reside and who have been bona fide
residents of the State for a period of three years continuously immediately
prior to the date of filing of application for a license, provided that a
stockholder need not be a voter or a taxpayer, and all the resident
stockholders of which must own, legally and beneficially, at least sixty
percent of all the financial interest in the business to be licensed under the
law; provided, that no corporation, licensed under the provisions of the law on
January 1, 1947, nor any corporation succeeding to the business of a
corporation licensed on January 1, 1947, as a result of a tax-free
reorganization coming within the provisions of Section 112, United States
Internal Revenue Code, must be disqualified by reason of the new requirements
herein, except corporations engaged in the manufacture of alcoholic beverages
containing alcohol in excess of five percent by weight, or owned or controlled,
directly or indirectly, by nonresident persons, partnerships, or corporations
engaged in the manufacture of alcoholic beverages containing alcohol in excess
of five percent by weight.
    (22) "Retailer"
means a person or entity that sells products containing a hemp-derived
cannabinoid for consumption and not for resale.
    (23) "Retail
establishment" means a place of business open to the general public for the
sale of goods or services.
    (24) "Serving"
means a quantity of a hemp-derived consumable product indicated on the
packaging.
    (25)"Tincture"
means hemp-infused liquid or oil administered orally in small amounts using a
dropper that indicates the serving size.
    Section
39-81-20.  (A) No person may
knowingly:
       (1)
sell or distribute a product containing a hemp-derived cannabinoid to a person
who is under twenty-one years of age or to purchase a product containing a
hemp-derived cannabinoid on behalf of a person who is under twenty-one years of
age;
       (2)
persuade, entice, send, or assist a person who is under twenty-one 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:
  (a)
the use of a minor if the minor's parent or legal guardian has consented to
this action; or
  (b)
the use of a person under twenty-one years of age who is not a minor if the
individual has consented to this action;
       (3)
distribute samples of products containing a hemp-derived cannabinoid in or on a
public street, sidewalk, or park; or
       (4)
sell or distribute a product containing a hemp-derived cannabinoid without
having first obtained proof of age from the purchaser or recipient.
    (B) It
is an offense for a person who is under twenty-one 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.
    (C)
With the exception of hemp-derived consumable beverage products, it is a
violation to fail to maintain any product containing hemp-derived cannabinoids
behind the counter of a retail establishment in an area inaccessible to the
customer. Any hemp-derived consumable beverage product offered for retail sale
shall be merchandised in such a manner including, but not limited to, signage,
shelf-talkers, and stickers on cooler doors, so as to clearly indicate to
consumers the product contains hemp-derived cannabinoids.
    (D) A
violation of this section is a Class A misdemeanor.
    Section
39-81-30.  (A) The department must
enforce this chapter in a manner that may reasonably be expected to reduce the
extent to which hemp-derived consumable products are sold or distributed to
persons under twenty-one years of age, and must conduct random, unannounced inspections
at locations where such products are sold or distributed to ensure compliance
with this chapter.
    (B) The
department must submit an annual report to the General Assembly describing in
detail the department's enforcement efforts under this chapter. The report also
must be published and made available to the public on the department's website.
    Section
39-81-40.  (A) A person or entity
that is in the business of hemp-derived consumable products in this State,
including a distributor, manufacturer, producer, or retailer, must obtain a
license from the department authorizing the person or entity to engage in that
business prior to the commencement of business or by July 1, 2025, whichever is
later.
    (B) In
order to obtain and maintain a distributor, manufacturer, 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 two hundred fifty dollars for distributors,
manufacturers, and producers, and a fee for retailers of one hundred dollars per
location; and not to exceed twenty-five hundred dollars for an entity with
multiple locations; and
       (3)
consent to reasonable inspection and sampling by the department of the person's
inventory of hemp-derived consumable products.
    (C) A
person is not eligible to obtain or maintain a distributor, manufacturer,
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 must charge an annual renewal fee equal
to the initial licensing fee.
    (E)
The department is authorized to:
       (1)
determine requirements for and issue licenses for the production of hemp in
this State and for the manufacture or sale of hemp-derived consumable products
in this State;
       (2)
deny or revoke licenses and issue civil penalties up to one thousand dollars
for each violation of this chapter or rules promulgated pursuant to this
section; and
       (3)
promulgate regulations to effectuate the purposes of this section.
    (F)
The department may issue licenses no more than three months from the date it
promulgates rules subject to this chapter.
    (G)
Notwithstanding the foregoing, any applicant that meets the requirements set
forth in this chapter must be issued a license by the department.
    (H)
The revenue collected from fees established under this section must be
deposited in the state general fund and used exclusively for the administration
of this chapter.
    (I) On
or after the effective date of this act, no person may operate or begin
operating in this State a retail establishment that sells or otherwise
distributes products containing hemp-derived cannabinoids to consumers that is
located within one thousand feet of any educational institution, public or
private, providing elementary or secondary education to children at any level,
kindergarten through twelfth grade, or the equivalent thereof if grade
designations are not used by such institution.
    Section
39-81-50.(A) It is an offense for a person or entity
to engage in the business of manufacturing, producing, or selling products
containing a hemp-derived cannabinoid in this State without a valid license
required by this chapter.
    (B) A
violation of this section is a Class A misdemeanor. A product containing a
hemp-derived cannabinoid that is sold or offered for sale in violation of this
section is subject to seizure and forfeiture.
    Section
39-81-60.  (A) The manufacturer must
have a hemp-derived consumable product tested prior to distribution to a
distributor or before distributing the product to a retailer. If the
hemp-derived consumable product is packaged in a manner that may be sold to the
ultimate consumer of the product when delivered to the distributor and the
distributor does not open such package, the distributor is not required to test
the hemp-derived consumable product. If the hemp-derived consumable product is
not packaged in a manner that may be sold to the ultimate consumer of the
product when delivered to the distributor or the distributor does open the
package, the distributor must have the hemp-derived consumable product tested
prior to distribution. The testing must determine the presence and amounts of
any of the substances listed in subsection (B). No product that contains more
than the maximum amount indicated for any substance in subsection (B) may be
distributed or sold in this State.
    (B) The
department must promulgate regulations specifying pass/fail action levels for
safety and toxicity with respect to the testing required by this section. All
hemp-derived consumable products offered for sale or distribution in this State
must be tested for the presence of and amount of the following substances:
       (1)
heavy metals;
       (2)
pesticides;
       (3)
mycotoxins;
       (4)
solvents; and
       (5)
microbials.
    (C) A
manufacturer or distributor must contract with an independent testing laboratory
to provide the testing required under subsection (A).
    (D) An
independent testing laboratory providing testing required under subsection (A) must
use high-performance liquid chromatography for any separation and measurement
required in the testing.
    (E)
Each hemp-derived consumable product tested in accordance with this section must
be accompanied by a validly issued Certificate of Analysis (COA) from an independent
testing laboratory to demonstrate:
       (1)
the batch identification number;
       (2)
the date received;
       (3)
the date of completion;
       (4)
the method of analysis for each test conducted; and
       (5)
proof that the certificate of analysis is connected to the product.
    (F)
Each batch manufactured must undergo testing and obtain a certificate of
analysis by an independent testing laboratory.
    (G) A
hemp-derived consumable product shall have an expiration date on the label that
conforms with applicable federal law and must be no more than two years from
the date of publication of the product's laboratory testing report required by
subsection (A).
    (H) The
department must:
       (1)
maintain and post on its website a registry of testing laboratories that are
qualified to test intermediate manufactured material and finished products
containing a hemp-derived cannabinoid; and
       (2)
develop an application and process by which qualifying laboratories are listed
on its website. The application submitted by a potentially qualifying
laboratory must include a sample certificate of analysis issued by the applying
laboratory.
    Section
39-81-70.  (A) The label of a
hemp-derived consumable product offered for distribution or sale in this State
must contain the following information, legibly displayed:
       (1)
product name or common name, on the front of the label;
       (2)
brand name, on the front of the label;
       (3)
size of the container or net count of individual items, on the front of the
label;
       (4)
net weight or volume;
       (5)
suggested product use, including serving sizes if the product is intended for
ingestion or inhalation;
       (6)
list of ingredients, including:
  (a)
amount of any advertised cannabinoid, in milligrams; and
  (b)
amount of any primary cannabinoid, in milligrams;
       (7)
list of allergens;
       (8)
manufacturer or distributor name and address;
       (9)
batch number;
       (10)
a statement that use while pregnant or breastfeeding may be harmful;
       (11)
a statement that the product contains hemp-derived cannabinoids and that
consumption of certain cannabinoids may impair your ability to drive or operate
heavy machinery;
       (12)
a statement to keep out of the reach of children;
       (13)
a statement that the product is only for persons over the age of twenty-one;
       (14)
a statement to consult your physician before use;
       (15)
a statement that consuming hemp-derived consumable products may result in a
failed drug test; and
       (16)
an expiration date in accordance with applicable law.
    (B)
The label of each hemp-derived consumable product intended for ingestion or
inhalation must include the following text:
       (1)
"THIS PRODUCT HAS NOT BEEN EVALUATED BY THE FOOD AND DRUG ADMINISTRATION. THIS
PRODUCT IS NOT INTENDED TO DIAGNOSE, TREAT, CURE, MITIGATE, OR PREVENT ANY
DISEASE."; and
       (2)
"WARNING - THE SAFETY OF THIS PRODUCT HAS NOT BEEN DETERMINED."
    (C) Hemp-derived
consumable product labels must not:
       (1)
have any likeness or bear any reasonable resemblance to a human, animal,
cartoon character, or fictional character; or
       (2)
appear to imitate a food, candy, or other commonly available snack product that
is typically marketed toward or appealing to children.
    Section
39-81-80.  A hemp-derived consumable product that is
sold in this State must meet the following requirements:
    (1) be
labeled in accordance with Section 39-81-70 and include a quick response code
that directs consumers to all label information required pursuant to Section
39-81-70 and all requirements pursuant to Section 39-81-60;
    (2) a
retailer or producer of a product containing a hemp-derived cannabinoid may not
advertise, market, or offer for sale a product containing a hemp-derived
cannabinoid by using, in the labeling or design of the product or product
packaging or in advertising or marketing materials for the product, trade
dress, trademarks, branding, or other related imagery or scenery that depicts
or signifies characters or symbols known to appeal primarily to persons under
twenty-one years of age. This does not prevent the use of drawings,
illustrations, or artwork depicting nonmythical creatures, inanimate objects,
scenery, humanoid characters, fruit- or flavor-focused images, or any other
items not known to appeal primarily to persons under twenty-one years of age;
    (3) any
hemp-derived consumable product intended for ingestion that is not a liquid and
not intended for inhalation may not:
       (a)
be sold in a serving that contains more than 100 milligrams, in the aggregate,
of one or more of the following hemp-derived cannabinoids:
  (i) Delta-8 THC;
  (ii) Delta-9 THC; and
  (iii) Delta-10 THC;
       (b)
be formed in the shape of an animal or cartoon character.
    (4)
Any hemp-derived consumable product intended for ingestion that is a liquid and
not intended for inhalation shall not be sold in a serving that contains more
than 10 milligrams, in the aggregate, of one or more of the following
hemp-derived cannabinoids:
       (a) Delta-8 THC;
       (b) Delta-9 THC; and
       (c) Delta-10 THC.
    (5) Any hemp-derived consumable product
intended for inhalation may not be sold in a container that contains more than
six milliliters or six grams of hemp-derived cannabinoids, in the aggregate, of
one or more of the following hemp-derived cannabinoids:
       (a) Delta-8 THC;
       (b) Delta-9 THC; and
       (c) Delta-10 THC.
    Section 39-81-90.  (A) This chapter does not permit a
person to:
       (1)
undertake any task under the influence of a hemp-derived cannabinoid when doing
so would constitute negligence or professional malpractice; or
       (2)
operate, navigate, or be in actual physical control of a motor vehicle,
aircraft, motorized watercraft, or any other vehicle while under the influence
of a hemp-derived cannabinoid.
    (B)
This chapter does not require an employer to accommodate the use of a
hemp-derived cannabinoid in a workplace or an employee working while under the
influence of a hemp-derived cannabinoid.
    (C)
This chapter does not exempt a person from prosecution for a criminal offense
related to impairment or intoxication resulting from use of a hemp-derived
cannabinoid or relieve a person from any requirement under law to submit to a
breath, blood, urine, or other test to detect the presence of a controlled
substance.
    Section
39-81-100. (A) Except in the case
of a hemp-derived consumable beverage manufacturer who sells less than one
thousand gallons of product per year, no person, cooperative, or business
holding any one of the three types of hemp-derived consumable product licenses
who is engaged in the production, manufacturing, distribution, or sale of
hemp-derived consumable beverages may hold either of the other two types of
hemp-derived consumable product licenses and may not have a financial interest,
either direct or indirect, in a person, cooperative, or business holding any of
the other two types of hemp-derived consumable product licenses.
    (B)
Except in the case of a hemp-derived consumable beverage manufacturer who sells
less than one thousand gallons of product per year, no hemp-derived consumable
beverage product manufacturer must directly solicit, sell, or otherwise convey
hemp-derived consumable products to retailers. Hemp-derived consumable product
manufacturers are authorized to solicit and sell hemp-derived consumable
products to hemp-derived consumable product distributors. Hemp-derived
consumable product distributors are authorized to solicit and sell hemp-derived
consumable products to hemp-derived consumable product retailers.
    (C)
Hemp-derived consumable beverage distributors must be resident corporations of
this State.
    (D)
All persons located in another state or country who deliver, ship, or cause to
be delivered or shipped hemp-derived consumable products directly to any South
Carolina consumer must hold a valid hemp-derived consumable product distributor
or manufacturer license issued by the department.
    Section
39-81-110.  (A) All retail establishments and food
service establishments offering hemp-derived consumable products must be
licensed by the department in accordance with this chapter.
    (B)
Hemp-derived consumable products or class of products may be sold in retail and
food service establishments if they have been registered in accordance with the
registration requirements of Section 39-81-100. All other hemp-derived
consumables product or class of products are prohibited.
    (C) A
retail establishment or food service establishment offering hemp-derived
consumable products at a temporary event or festival must:
       (1)
register with the department; and
       (2)
include a one hundred dollar temporary event registration fee;
    (D)
Retail establishments offering hemp-derived consumable products may not be
located within one thousand feet of an elementary, middle, or high school.
    (E) A
business that distributes, sells, or serves hemp-derived consumable products may
not employ any person who is under twenty-one years of age, unless the person
employed is at least eighteen years of age and under the direct supervision of
a person twenty-one years of age or older.
    (F) The
sale of any hemp-derived consumable product for on-site consumption may not be
conducted unless the age of the purchaser has been verified to be at least
twenty-one years of age or older.
    (G)
For on-site consumption of hemp-derived consumable products:
       (1)
only prepackaged registered hemp-derived consumable products may be offered as
ready-to-consume or for direct consumption at food service establishments,
except as set forth in this section;
       (2)
hemp-derived consumable products mat not be added to an ingestible food product
at a food service establishment;
       (3)
hemp-derived consumable beverage products may be added to a nonalcoholic
ingestible beverage product at a food service establishment, provided the food
service establishment can provide the consumer with a copy of the hemp-derived
consumable product's registration issued with the department in conjunction
with incorporating the hemp-derived consumable beverage;
       (4)
the food service establishment must obtain a copy of the department's
registration for each hemp-derived consumable product and provide a copy upon
inspection;
       (5)
a food service establishment offering hemp-derived consumable products must
provide to consumers upon request:
  (a)
the common name of the product;
  (b)
the distributor or manufacturer of the product; and
  (c)
a copy of the department's registration for the hemp-derived consumable
product;
       (6)
the food service establishment must notify the department within twenty-four
hours of becoming aware or within twenty-four  hours of when the food service
establishment should have been aware of any serious adverse event to a
hemp-derived consumable product sold by the establishment.
    Section
39-81-120. No hemp-derived consumable product manufacturer or distributor may
pay to a hemp-derived consumable hemp retailer, nor may any hemp-derived
consumable product retailer accept any payment, credit, or any other
consideration to induce the hemp-derived product retailer to advertise or
display a hemp-derived consumable product in a certain manner or the
hemp-derived consumable product retailer's licensed premises
    Section
39-81-130. (A) An excise tax at the
rate of two percent is imposed on the retail sale of a hemp-derived consumable
product. The tax is in addition to any tax imposed under any other provision of
federal, state, or local law. For purposes of this article, the term "hemp-derived
consumable product" is as defined in Section 39-81-10.
    (B)
The tax imposed by this section is intended to be passed on to and borne by the
purchaser of the hemp-derived consumable product. The tax is a debt from the
purchaser to the retailer until paid and is recoverable by law by the retailer
in the same manner as other debts. A retailer is considered to act as a trustee
on behalf of the State when it collects tax from the purchaser on a taxable
transaction. The tax must be stated and charged separately on any documentation
provided to the purchaser by the retailer at the time of the transaction.
    Section
39-81-140. (A) If more than one
franchise for the same brand or brands of hemp-derived consumable beverage
products is granted to different hemp-derived consumable beverage product
distributors in this State, it is a violation for any hemp-derived consumable
beverage product manufacturers to discriminate between the distributors with
respect to any of the terms, provisions, and conditions of these franchises.
    (B) Notwithstanding
the terms, provisions, and conditions of any franchise, no hemp-derived
consumable beverage product manufacturer may unilaterally terminate or refuse
to continue or change substantially the condition of any franchise with the
hemp-derived consumable beverage product distributor unless the manufacturer
has first established good cause for such termination, noncontinuance, or
change.
    (C)
Any hemp-derived consumable beverage product distributor may bring an action in
a court of competent jurisdiction against a consumable product manufacturer for
violation of any of the provisions of this section and may recover damages
sustained by such distributor together with the costs of the action and
reasonable attorney's fees.
    (D)
In any action brought by a hemp-derived consumable product distributor against
a hemp-derived consumable product manufacturer for termination, noncontinuance,
or substantial change in violation of the provisions of this section, it is a
complete defense for the hemp-derived consumable product manufacturer to prove
that the termination, noncontinuance, or change was done in good faith and for
good cause.
    (D)
As used in this section, "good faith" is the duty of each party to any
franchise and all officers, employees, or agents thereof to act in a fair and
equitable manner towards each other, and "good cause" means the following:
       (1)
failure by the hemp-derived consumable product distributors to comply
substantially with the provisions of an agreement or understanding with the
hemp-derived consumable product manufacturer, which provisions are both
essential and reasonable;
       (2)
use of bad faith or failure to observe reasonable commercial standards of fair
dealing in the trade; or
       (3)
revocation or suspension for more than thirty days of the hemp-derived
consumable product distributor's state and local license required for normal
operations of its business.
    Section
39-81-150. (A) This chapter does
not apply to a safe harbor hemp product or a safe harbor manufacturer or
storage facility.
    (B)
For the purposes of this section:
       (1)"Safe
harbor hemp product" means a hemp-derived compound or cannabinoid, whether a
finished product or in the process of being produced, that is permitted to be
manufactured for distribution, produced for distribution, packaged for
distribution, processed for distribution, prepared for distribution, treated
for distribution, transported for distribution, or held for distribution in
this State for export from South Carolina but that is not permitted to be sold
or distributed in this State.
       (2)
"Safe harbor manufacturer or storage facility" means a facility that
manufacturers for distribution, produces for distribution, packages for
distribution, processes for distribution, prepares for distribution, treats for
distribution, transports for distribution, or holds for distribution a safe
harbor hemp product.
    Section
39-81-160. A. (A) Every local school district in
this State must adopt and enforce a written policy prohibiting at all times the
use of any tobacco or hemp-derived consumable product by any person in school
buildings, in school facilities, on school campuses, and in or on any other
school property owned or operated by the local school administrative unit. The
policy also must prohibit the use of any tobacco or hemp-derived consumable
product by persons attending a school-sponsored event at a location not listed
in this subsection when in the presence of students or school personnel or in
an area where smoking or other tobacco or hemp-derived consumable product use
is otherwise prohibited by law.
    (B)
The policy must include at least all of the following elements:
       (1)
adequate notice to students, parents or guardians, the public, and school
personnel of the policy;
       (2)
posting of signs prohibiting at all times the use of tobacco or hemp-derived
consumable products by any person in and on school property; and
       (3)
requirements that school personnel enforce the policy, including appropriate
disciplinary action.
    (C)
Disciplinary actions for violating the policy may include, but not be limited
to:
       (1)
for students: administrator and parent or legal guardian conference, mandatory
enrollment in tobacco prevention education or cessation programs, community
service, in-school suspension, suspension from extracurricular activities, or
out-of-school suspension;
       (2)
for staff: verbal reprimand, written notification in personnel file, mandatory
enrollment in tobacco prevention education, voluntary enrollment in cessation
programs, or suspension;
       (3)
for contract or other workers: verbal reprimand, notification to contract
employer, or removal from district property; and
       (4)
for visitors: verbal request to leave district property or prosecution for
disorderly conduct for repeated offenses.
    (D)
The local school district must collaborate with the department as appropriate,
to implement the policy, including as part of tobacco education and cessation
programs and substance use prevention efforts.
    (E)
The policy may permit tobacco or hemp-derived consumable products to be
included in instructional or research activities in public school buildings if
the activity is conducted or supervised by the faculty member overseeing the
instruction or research and the activity does not include smoking, chewing,
inhaling, or otherwise ingesting the tobacco or hemp-derived consumable
product.
    (F)
Nothing in this section prohibits a local school administrative unit from
adopting and enforcing a more restrictive policy on the use of tobacco or
hemp-derived consumable products in school buildings, in school facilities, on
school campuses, or at school-related or school-sponsored events, and in or on
other school property.
    (G)
For purposes of this section:
       (1)
"Tobacco product" has the same meaning as defined in Section 16-17-501.
       (2)"Hemp-derived
consumable product" has the same meaning as described in Section 39-81-10.
B. This
section takes effect upon approval by the Governor and applies beginning with
the 2026-2027 School Year.
SECTION 3.  This act takes effect upon approval
by the Governor.
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This web page was last updated on February 06, 2025 at 11:11 AM