SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
WWW.RFA.SC.GOV • (803)734-3793
This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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H. 3924
Fiscal Impact Summary
This bill creates a new chapter in Title 46 pertaining to hemp-derived consumables. This bill
defines consumable hemp products and specifies which chemically derived hemp cannabinoids
are specifically included in its definition. This bill requires retailers of hemp-derived
consumables to post signs at each permitted location and provides specifications for the signs.
The Department of Agriculture must prescribe the size, lettering, and location of signs through
regulations. This bill creates several new misdemeanor offenses dealing with hemp-derived
consumables, including those addressing people under the age of twenty-one, retailer signage,
and requirements on how hemp-derived consumable merchandise should be stored. In addition,
this bill states that the Department of Agriculture must enforce the provisions of this bill, must
conduct random, unannounced inspections at locations where such products are sold or
distributed to ensure compliance, and submit an annual report to the General Assembly
describing the department’s enforcement efforts. The report must be published and made
available to the public on the department's website. This bill takes effect upon approval by the
Governor.
There are currently no statutes in South Carolina law regarding consumable hemp product
intended for human ingestion made from a naturally occurring cannabinoid, although it is illegal
to possess or use marijuana with a delta-9-tetrahydrocannabinol (THC) content above 0.3
percent. Currently, hemp-derived cannabinoid products are legal in the U.S. pursuant to the
United States Agriculture Improvement Act of 2018, otherwise known as the 2018 Farm Bill.
The Act of 2018 removed hemp, defined as cannabis and derivatives of cannabis with extremely
low concentrations of THC, no more than 0.3 percent THC on a dry weight basis, from the
definition of marijuana in the Controlled Substances Act.
1
In order to meet the enforcement requirements under this bill, the Department of Agriculture
indicates that this bill will increase expenses by approximately $8,700,000 beginning in FY
2025-26, including $6,200,000 of recurring and $2,500,000 of non-recurring expenses. Of the
recurring expenses, the department indicates that it will require $2,700,000 for salary and fringe
to hire 30.0 FTEs, including 26 field employees, 2 compliance employees, and 2 lab chemists.
1
U.S. Food and Drug Administration, Testimony of Amy Abernethy, MD, PhD., Principal Deputy Commissioner –
Office of the Commissioner Before the United States Senate on Hemp Production and the 2018 Farm Bill, Retrieved
January 23, 2025, https://www.fda.gov/news-events/congressional-testimony/hemp-production-and-2018-farm-bill-
07252019
Bill Number: H. 3924 Amended by House Judiciary on April 2, 2025
Subject: Hemp-Derived Consumables
Requestor: House Judiciary
RFA Analyst(s): Daigle
Impact Date: April 8, 2025
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H. 3924
Additionally, the department will require $1,500,000 for recurring expenses on computers,
annual software, and IT, $1,300,000 for recurring expenses on vehicle maintenance, inspector
travel, and fuel, and $700,000 for recurring expense on sampling equipment software and lab
analysis tools. The department indicates that it will also require $2,500,000 for non-recurring lab
equipment expenses. Furthermore, not included in the total above, the department notes that it
currently lacks sufficient lab space to accommodate the required testing footprint. As a result, the
department may need to expand its existing lab space or acquire a new location, which could
lead to an additional $2,000,000 of expenses. The Department of Agriculture will request
General Fund appropriations to fund the expenses due to this bill.
This bill creates several summary court misdemeanors related to the possession and sale of
consumable hemp products. Judicial anticipates that any increase in cases can be initially
managed within existing appropriations. However, there is no data available to estimate the
increase in caseloads. Therefore, Judicial indicates that if this bill results in a significant increase
in summary court cases, Judicial will request an increase in General Fund appropriations.
In addition, since this bill may result in an increase in the number of summary court cases and
potentially the number of incarcerations at the state or local level, this bill may increase the
workload of the Commission of Indigent Defense, the Commission on Prosecution Coordination,
and PPP. The potential increase in expenses for each agency will depend upon the increase in the
number of cases and number of incarcerations. These agencies indicate that if this bill results in a
significant increase in the workload, then an increase in General Fund appropriations may be
requested.
Further, this bill may also increase the workload of the local court system and local jail
population. The potential increase in expenses will depend upon the increase in the number of
cases and number of persons sentenced to jail time. Therefore, the potential increase in local
expenses is undetermined.
This bill may also result in a change in the fines and fees collected in court. Court fines and fees
are distributed to the General Fund, Other Funds, and local funds. Therefore, the Revenue and
Fiscal Affairs Office (RFA) anticipates this bill may result in a change to General Fund, Other
Funds, and local funds revenue due to the change in fines and fees collections in court. The
amount of fines and fees collected in court is dependent on the number of fees imposed.
Explanation of Fiscal Impact
Amended by House Judiciary on April 2, 2025
State Expenditure
This bill creates a new chapter in Title 46 pertaining to hemp-derived consumables. This bill
defines consumable hemp products and specifies which chemically derived hemp cannabinoids
are specifically included in its definition.
This bill makes it illegal to sell or distribute a consumable hemp product without having first
obtained proof of age. This bill also makes it illegal to distribute samples of consumable hemp
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H. 3924
products on a public street, sidewalk, or park. Further, this bill requires that any consumable
beverage product offered for retail sale shall be merchandised in a manner so as to clearly
indicate to consumers that the product contains hemp-derived cannabinoids. This bill also
requires that, with the exception of consumable hemp beverages, it is a violation to fail to
maintain any product containing consumable hemp products in an area inaccessible to customers.
First-time violations of any of these provisions are subject to a fine of $200 to $300 or
imprisonment not more than thirty days, or both. Second-time violations are subject to a fine of
$400 to $500 or imprisonment not more than thirty days, or both.
Furthermore, this bill requires that retailers must post a sign that states the laws in relation to
possession and purchasing consumable hemp product by people under the age of twenty-one. A
retailer that fails to post the required sign is guilty of a misdemeanor that is subject to a fine of
not more than $100 or imprisonment for not more than thirty days. The Department of
Agriculture must prescribe the size, lettering, and location of signs through the use of
regulations.
This bill also creates new offences dealing with consumable hemp product pertaining to a person
who is under the age of twenty-one. This bill makes it illegal to sell or distribute consumable
hemp product to a person under twenty-one years old, or to purchase such consumables on behalf
of a person under twenty-one. This bill also makes it illegal to persuade, entice, send, or assist a
person who is under the age of twenty-one to purchase, acquire, receive, or attempt to purchase a
consumable hemp product, subject to some exceptions. First-time violations of either provision
are subject to a fine of $200 to $300 or imprisonment not more than thirty days, or both. Second-
time violations are subject to a fine of $400 to $500 or imprisonment not more than thirty days,
or both. In addition, this bill states that Section 61-6-4080 (penalties for sale of alcohol and
alcoholic beverages to a person under twenty-one) is applicable to a person who sells or
distributes consumable hemp product to a person under twenty-one years old, or who purchases
such consumables on behalf of a person under twenty-one. Furthermore, this bill also makes it
illegal for a person under twenty-one to knowingly purchase, possess, or accept a consumable
hemp product, or to give false information concerning their age in order to purchase a hemp-
derived consumable illegally. Violations of this provision are subject to a fine of $100 to $200,
or imprisonment for up to thirty days, or both.
This bill directs law enforcement officers to only issue warnings for violations in this bill during
the first 180 days after its effective date.
Furthermore, this bill states that the Department of Agriculture must enforce the provisions of
this bill, and must conduct random, unannounced inspections at locations where such products
are sold or distributed to ensure compliance. The department must also submit an annual report
to the General Assembly describing the department’s enforcement efforts. The report must be
published and made available to the public on the department's website.
Department of Agriculture. This bill creates additional responsibilities for the department in
order to enforce the hemp-derived consumables provisions and to publish an annual report on
their enforcement efforts. Therefore, the department anticipates that this bill will increase
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H. 3924
expenses by approximately $8,700,000 beginning in FY 2025-26, including $6,200,000 of
recurring and $2,500,000 of non-recurring expenses. Since consumable hemp products are sold
at most convenience stores, gas stations, other retail outlets, and various other stores, the
department indicates that it will require a team to perform inspections and enforce the provisions
of this bill. The department will also require vehicles, computers, and testing capabilities in order
to enforce this bill by testing for THC content and other illegal substances, heavy metals,
chemicals, additives, and synthetic additives not specifically included in the definition of a
consumable hemp product. Therefore, of the recurring expenses, the department indicates that it
will require $2,700,000 for salary and fringe to hire 30.0 FTEs, including 26 field employees, 2
compliance employees, and 2 lab chemists. Additionally, the department will require $1,500,000
for recurring expenses on computers, annual software, and IT, $1,300,000 for recurring expenses
on vehicle maintenance, inspector travel, and fuel, and $700,000 for recurring expense on
sampling equipment software and lab analysis tools. The department indicates that it will also
require $2,500,000 for non-recurring lab equipment expenses. Furthermore, not included in the
total above, the department notes that it currently does not have lab space to accommodate the
necessary testing footprint, and therefore, the department may need to expand existing lab space
or purchase a new location, which may result in an additional $2,000,000 of expenses. The
Department of Agriculture will request General Fund appropriations to fund the expenses due to
this bill.
Judicial. This bill creates several summary court misdemeanors related to the possession and
sale of consumable hemp products. Judicial indicates that the possession and sale of hemp-
derived consumables is not currently covered by state law. Judicial reports that this bill would
require summary courts to hear additional misdemeanor cases, which they would do in their
ordinary course of business; however, it is impossible to precisely gauge the impact this bill will
have on summary court caseloads as there is no data available to estimate the increase in
caseloads. Judicial anticipates that the increase in cases and associated resources can be initially
managed within existing appropriations. However, if this bill results in a significant increase in
summary court cases, Judicial will request an increase in General Fund appropriations.
In addition, since this bill may result in an increase in the number of summary court cases and
potentially the number of incarcerations at the state or local level, this bill may also increase the
workload of the Commission of Indigent Defense, the Commission on Prosecution Coordination,
and PPP. The potential increase in expenses for each agency will depend upon the increase in the
number of cases, the number of repeat offenders, and the number of incarcerations. The
Commission of Indigent Defense and the Commission on Prosecution Coordination indicate that
if this bill results in a significant increase in the workload, then an increase in General Fund
appropriations may be requested. Based on this, we anticipate PPP to also request an increase in
General Fund appropriations if this bill results in a significant increase in workload.
State Revenue
This bill may result in a change in the fines and fees collected in court. Court fines and fees are
distributed to the General Fund, Other Funds, and local funds. Therefore, RFA anticipates that
this bill may result in a change to General Fund and Other Funds revenue due to the change in
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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H. 3924
fines and fees collections in court. The amount of fines and fees collected in court is dependent
on the number of fees imposed.
Local Expenditure
This bill may result in an increase in the number of summary court cases and potentially the
number of persons sentenced to jail time, which may increase the workload of the court system
and local jails. The potential increase in expenses will depend upon the increase in the number of
cases and number of sentences. Judicial anticipates that the increase in cases can be initially
managed within existing appropriations; however, they indicate that it is impossible to precisely
gauge the impact this bill will have on summary court caseloads as there is no data available to
estimate the increase in caseloads and thereby the increase in the local jail population. Therefore,
the potential increase in local expenses is undetermined.
Local Revenue
This bill may result in a change in the fines and fees collected in court. Court fines and fees are
distributed to the General Fund, Other Funds, and local funds. Therefore, RFA anticipates that
this bill may result in a change to local revenue due to the change in fines and fees collections in
court.