As advanced, the bill would significantly restrict the hemp market by permitting only limited product categories. Specifically, it would allow low-dose hemp beverages through traditional alcohol channels and permit 10 mg THC beverages and packages of four 10 mg THC gummies to be sold exclusively through licensed liquor stores. All other full-spectrum hemp products would be prohibited.
Under this framework, existing hemp retailers would be required to obtain liquor licenses, secure appropriate insurance, and comply with zoning requirements in order to remain operational. Even if able to meet these requirements, businesses would be limited to selling only the permitted intoxicating products, effectively eliminating the ability to offer non-intoxicating wellness items such as tinctures, topicals, creams, and similar products. Direct-to-consumer sales would also be prohibited.
The practical effect would be a significant contraction of South Carolina’s hemp market, including the loss of existing retail operations and reduced consumer access to regulated products.
During Senate consideration, multiple lawmakers raised concerns about the bill’s impact on small businesses and its inconsistency with prior commitments to avoid disrupting the existing marketplace.
The bill is now back in the House for final reading, which could occur in the coming days.
South Carolina Residents – Take Action: Contact all House members and urge them to oppose H.3924 as currently written and pursue a more balanced, workable regulatory framework for hemp products.