South Carolina House Bill H3601

South Carolina 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25

Caption

Hemp Derived Canabis

Impact

This legislation has significant implications for state law regarding the hemp product market. The bill requires that all businesses involved in the manufacturing or selling of hemp-derived products must obtain a license from the Department of Agriculture by January 2026. This move is expected to increase official oversight and ensure that products meet safety requirements, which could help protect consumers from substandard products but may also impose additional costs and regulatory burdens on producers.

Summary

House Bill 3601 aims to amend the South Carolina Code by adding Chapter 56 to Title 46, specifically regulating the sale and distribution of products containing hemp-derived cannabinoids. The bill outlines definitions for various terms, such as 'hemp-derived cannabinoid', and establishes the Department of Agriculture as the governing body for implementing these regulations. It aims to create a structured framework for manufacturers, producers, and retailers, ensuring compliance with safety and health standards when handling cannabinoid products.

Contention

There are points of contention surrounding the application of age restrictions and taxation. The bill includes strict regulations that prohibit sales to individuals under the age of 21 and mandates that retailers maintain these products behind counters away from customer access. The introduction of a 5% sales tax on hemp-derived products is also notable, with the revenue allocated specifically towards the Department of Agriculture's enforcement of these regulations. Critics may argue about the additional financial implications for small businesses operating in this sector.