Reference is to Printer's Date 2/14/19-H.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Title 46 of the 1976 Code is amended by adding:
Section 46-56-10. This chapter must be known and may be cited as the 'South Carolina Hemp Farming Act'.
Section 46-56-20. The
General Assembly finds that hemp is a viable agricultural crop
in South Carolina. This chapter is intended to:
(1) promote the
cultivation and processing of hemp and to open new commercial
markets for farmers and businesses through the sale of hemp
products;
(2) promote the
expansion of this State's hemp industry to the maximum extent
permitted by law, allowing farmers and businesses to cultivate,
handle, and process industrial hemp and sell industrial hemp
products for commercial purposes;
(3) encourage and
empower research into hemp growth and hemp products at state
institutions of higher education and in the private sector;
and
(4) move this state and
its citizens to the forefront of the hemp industry.
Section 46-56-30. As used in this chapter:
(1) 'Cannabidiol' or
'CBD' means the compound by the same name derived from the hemp
variety of the Cannabis sativa L. plant.
(2) 'Commercial sales'
mean the sale of hemp products in the stream of commerce, at
retail, wholesale and online.
(3) 'Commissioner' is
the Commissioner of the South Carolina Department of
Agriculture.
(4) 'Cultivating' means
planting, watering, growing, and harvesting a plant or crop.
(5) 'Department' means
the South Carolina Department of Agriculture.
(6) 'Federally defined
THC level for hemp' means a delta-9 THC concentration of not
more than 0.3 percent on a dry weight basis, or the THC
concentration for hemp defined in 7 U.S.C. sec 5940, whichever
is greater.
(7) 'Handling' means
possessing or storing hemp for any period of time. Handling
includes possessing or storing hemp in a vehicle for any period
of time other than during its actual transport from the premises
of a licensed person to cultivate or process industrial hemp to
the premises of another licensed person. Handling does not mean
possessing or storing finished hemp products.
(8) 'Hemp' means the
plant Cannabis sativa L. and any part of that plant, including
the non-sterilized seeds thereof and all derivatives, extracts,
cannabinoids, isomers, acids, salts, and salts of isomers,
whether growing or not, with the federally defined THC level for
hemp. Hemp is considered an agricultural commodity. The term
also includes all industrial grown hemp and hemp products.
(9) 'Hemp products'
means all products with the federally defined THC level for hemp
derived from, or made by, processing hemp plants or hemp plant
parts, that are prepared in a form available for commercial
sale, including, but not limited to cosmetics, personal care
products, food intended for animal or human consumption, cloth,
cordage, fiber, fuel, paint, paper, particleboard, plastics, and
any product containing one or more hemp-derived cannabinoids,
such as cannabidiol. Unprocessed or raw plant material,
including non-sterilized hemp seeds is not considered a hemp
product.
(10) 'Licensee' means
an individual or business entity possessing a license issued by
the department under the authority of this chapter to grow,
handle, cultivate, or process hemp.
(11) 'Marijuana,' has
the same meaning as in Section 44-53-110 and does not include
hemp or hemp products.
(12) 'Processing' means
converting an agricultural commodity into a marketable form.
(13) 'State plan' means
the plan submitted by the department and approved by the
Secretary of the United States Department of Agriculture under
which the department regulates hemp production.
(14) 'THC' means
tetrahydrocannabinol. The THC found in hemp is not considered to
be THC in qualifying as a controlled substance.
(15) 'University' means
any public institution of higher education offering a four-year
baccalaureate degree or private institution of higher education
accredited by the Southern Association of Colleges and Schools
offering a four-year baccalaureate degree throughout the State.
Section 46-56-40.
(A)(1) There is created the South
Carolina Hemp Program to enable the department, its licensees,
and affiliated universities to promote the cultivation and
processing of hemp and the commercial sales of hemp products.
The department, its licensees, the licensees' agents, and
affiliated universities may cultivate, handle, and process hemp
in this State and may transport hemp within and outside of this
State.
(2)
It is lawful to possess, transport, sell, and purchase
legally produced hemp products in this State. Nothing in this
chapter authorizes a person to violate a federal or state law or
regulation.
(B) A person only may
cultivate, handle, or process hemp in this State with a hemp
license issued by the department under the state plan. A person
seeking to cultivate hemp:
(1)
provide to the department the legal description and global
positioning coordinates sufficient for locating the fields or
greenhouses used to cultivate hemp;
(2)
provide written consent allowing representatives of the
department, South Carolina Law Enforcement Division (SLED), and
local law enforcement, to enter onto all premises where hemp is
cultivated, processed, or stored for the purposes of conducting
physical inspections, obtaining samples of hemp or hemp
products, or otherwise ensuring compliance with the requirements
of applicable laws and regulations;
(3)
subject hemp to the testing procedure set forth in the
state plan using post-decarboxylation or other similarly
reliable methods to test the delta-9 THC concentration levels of
hemp produced in the State; and
(4)
undergo a state criminal records check, supported by
fingerprints, by SLED and a national criminal records check,
supported by fingerprints, by the Federal Bureau of
Investigation. The results of these records checks must be
reported to the department. SLED is authorized to retain the
fingerprints for certification purposes and for notification to
the department regarding criminal charges. A person who has
been convicted of a felony relating to a controlled substance
under state or federal law in the ten years prior to the
submission of the application is not eligible to:
(a)
obtain a license or participate in the program established
under this section or the Agriculture Improvement Act of 2018;
or
(b)
produce hemp under a regulation or guideline issued under
the Agriculture Improvement Act of 2018.
(C)(1) A licensee is
required to conduct a corrective action plan if the commissioner
determines that the licensee has negligently violated applicable
state laws, regulations, or the state plan by:
(a)
failing to provide a legal description and global
positioning coordinates of land on which hemp is cultivated;
(b)
failing to obtain a proper license or other required
authorization from the commissioner; or
(c)
producing Cannabis sativa L. with more than the federally
defined THC level for hemp.
(2)
A corrective action plan should include a:
(a)
reasonable date by which the licensee must correct the
violation; and
(b)
requirement that the licensee periodically report to the
commissioner on the compliance of the hemp producer with the
provisions of this chapter and the state plan for a period of
not less than the next two calendar years.
(3)
A licensee that negligently violates state laws or
regulations may not be subject to criminal or civil liability
other than the enforcement action provided in this section.
(4)
A licensee that negligently violates the state plan three
times within a five-year period is ineligible to produce hemp
for a period of five years beginning on the date of the third
violation.
(5)
If the commissioner determines that a licensee violated a
state law with a culpable mental state greater than negligence,
the commissioner must immediately report the hemp producer to
the United States Attorney General and the South Carolina
Attorney General.
Section 46-56-50. The department may charge
a reasonable application fee, license fee, and renewal of
license fee that must be remitted to administer the South
Carolina Hemp Program. Licensing fees for:
(1)
hemp growers and handlers may not exceed one thousand
dollars each year per registrant; and
(2)
processors may not exceed the cost calculated by the
department to cover the costs incurred under the processor
licensing program.
Section 46-56-60. (A)
Within sixty days of the effective date of
this chapter, the commissioner shall submit a state plan to the
Secretary of the United States Department of Agriculture
regulating hemp production in South Carolina. The plan shall
include a:
(1)
practice to maintain relevant information relating to land
on which hemp is produced including a legal description of the
land for a period of no less than three years;
(2)
procedure for testing delta-9 THC concentration levels on
hemp produced in this State using post-decarboxylation or a
similarly reliable method;
(3)
procedure for the effective disposal of products that are
in violation of this chapter; and
(4)
procedure to comply with the enforcement of this chapter.
(B) If the secretary disapproves the state
plan, the commissioner, in consultation with the Governor and
Attorney General, shall submit an amended state plan.
Section 46-56-70. The South Carolina Hemp Program does not apply to the possession, handling, transport, or sale of hemp products and extracts, including those containing hemp-derived cannabinoids such as CBD.
Section 46-56-80. A person who manufactures, distributes, dispenses, delivers, purchases, aids, abets, attempts, or conspires to manufacture, distribute, dispense, deliver, or purchase, or possesses with the intent to manufacture, distribute, dispense, deliver, or purchase marijuana, in a manner intended to disguise the marijuana due to its proximity to industrial hemp, is guilty of a misdemeanor and, upon conviction, must be imprisoned not more than three years or fined not more than three thousand dollars, or both. The penalty provided for in this section may be imposed in addition to any other penalties provided by law."
SECTION 2. Chapter 55, Title 46 of the 1976 Code is repealed.
SECTION 3. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.