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Bill

H 4004

Hemp-derived beverages

2025-2026 Regular Session Introduced by Gary Brewer and 4 co-sponsors

Creates a state-regulated framework for selling nonalcoholic hemp beverages with low 0.3% delta-9 THC and up to 10 mg per 12 oz serving, under strict licensing, ageVerification, an

Referred to Committee on Judiciary
0
WeVote Research Nonpartisan
Bill Summary · H 4004

Summary — H 4004: Hemp-derived beverages

Note: The submitted bill text packet includes material from two different measures (a Massachusetts special-act letter validating a Hardwick election and a South Carolina draft adding Chapter 56 to Title 46). This summary focuses on the South Carolina Chapter 56 text titled “The Distribution and Sale of Nonalcoholic Hemp‑Derived Beverages,” which corresponds to the bill title “Hemp‑derived beverages.”

Purpose

Establish a regulatory framework for the manufacture, distribution, sale, marketing, licensing, taxation and enforcement of nonalcoholic hemp‑derived beverages that contain hemp‑derived delta‑9‑tetrahydrocannabinol (THC) at low concentrations.

Key provisions

  • Definition of hemp‑derived beverage:
    • Nonalcoholic beverage with delta‑9 THC ≤ 0.3% on a dry weight basis.
    • Packaged in a closed can of 12 fluid ounces or less.
    • Contains no more than 10 mg of hemp‑derived THC per 12‑oz serving.
    • Hemp‑derived ingredients limited to delta‑9 THC (≤ 0.3% dw) and cannabidiol (CBD).
  • Definitions: batch, manufacturer/producer (including importers), wholesaler, retailer, serving, proof of age (government photo ID confirming age 21+), SLED (SC Law Enforcement Division), Department (SC Dept. of Agriculture), Dept. of Revenue.
  • Licensing and regulation:
    • The Department of Agriculture is the licensing authority with exclusive power to issue licenses under the chapter.
    • SLED enforces the chapter; Dept. of Revenue handles taxation issues.
    • Both agencies authorized to adopt necessary regulations (licensing, manufacture, bottling, distribution, analysis and sampling, equitable distribution, shipping, labeling).
  • Enforcement and oversight:
    • SLED must perform random, unannounced inspections and submit an annual enforcement report to the General Assembly (and publish it).
    • Department and SLED may hire necessary personnel; salaries set by the respective agencies.
  • Wholesale sales/payment rules:
    • Wholesalers must sell to retail licensees for “cash” at or prior to delivery (cash includes bona fide checks, money orders, or electronic transfers initiated by irrevocable payment order).
    • Retailers issuing checks with insufficient funds violate the provision.
  • Penalties:
    • First violation re: purchasing on credit — no action. Second/subsequent violations — retail permit may be suspended/canceled/revoked, or a monetary penalty up to $25 may be assessed.
  • Miscellaneous:
    • Severability clause for invalid provisions.
    • Manufacture defined broadly to include extraction, infusion, packaging, labeling, etc.

Who is affected

  • Producers/manufacturers and importers of hemp‑derived beverages.
  • Wholesalers and retail establishments selling or distributing these products.
  • Consumers (age‑restricted — proof of age required).
  • State agencies (Department of Agriculture, SLED, Department of Revenue) — new licensing, enforcement and tax responsibilities.

Procedural/timeline notes

  • The text shows initial introduction in early 2025 and referral to committee (document includes dates such as 02/13/2025 introduction and referral to Judiciary). A hearing was scheduled (05/06/2025 per packet). Portions of the packet also contain unrelated enacted Massachusetts legislation (Hardwick validation), so procedural history for the hemp bill may be incomplete in the provided document.
  • Several licensing and enforcement sections are truncated in the supplied text; final fee schedules, application requirements, testing standards, labeling rules, and other operational details would be set by the Department and SLED via regulations or in additional statutory sections.

Potential impacts

  • Creates a regulated market for low‑THC hemp beverages with age restrictions and state oversight, likely increasing compliance costs for producers/retailers but providing consumer protections (batching, testing and enforcement).
  • Establishes new administrative duties and potential revenue/taxation pathways administered by the Department of Revenue.
  • Public‑health and law‑enforcement considerations (product testing, limits per serving, enforcement reporting) are built into the framework.

If you want, I can draft a one‑page legislative brief highlighting likely regulatory requirements (licensing steps, likely testing/labeling requirements to expect) or compare this bill to other state hemp beverage regimes.

Compiled from official sources — confirm details with the bill’s official record.

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