South Carolina Hemp Licensing & Compliance Information

Medical and Recreational Marijuana

Currently, cannabis is illegal in South Carolina. First-time offenders convicted of possession of 1 ounce or less may face up to 30 days of incarceration and a maximum fine of $200. Subsequent possession offenses of 1 ounce or less are punishable by up to 1 year of incarceration and a $2,000 maximum fine. Despite several attempts to legalize medical and recreational marijuana, including significant efforts in 2022, none have succeeded thus far.

In May 2022, the South Carolina Compassionate Care Act (SB150) died in the House after passing through the Senate. House Speaker Tommy Pope ruled the bill unconstitutional, effectively killing it for the year. Advocates remain hopeful and aim to reintroduce the bill in 2023. SB150 would have legalized cannabis for medical use, outlining specific qualifying conditions and establishing a framework for licensing various types of cannabis businesses.

The South Carolina Compassionate Care Act

SB150, also known as the South Carolina Compassionate Care Act, advanced further than any past legalization efforts in the state. This bill proposed to legalize cannabis for medical use for patients with qualifying conditions such as cancer, multiple sclerosis, epilepsy, severe neurological diseases, sickle cell anemia, PTSD, autism, Crohn’s disease, ulcerative colitis, cachexia, severe nausea, terminal illness, chronic muscle spasms, or any debilitating condition for which an opioid could be prescribed.

The bill outlined the following license types and quantities:

  • Cultivation Centers: 15 licenses
  • Manufacturing Facilities: 30 licenses
  • Dispensaries: 1 for every 20 pharmacies in the state
  • Testing Facilities: 5 licenses
  • Transporter Licenses: 4 licenses

 

These licenses would have established a regulated framework for the cultivation, manufacturing, dispensing, testing, and transportation of medical cannabis in South Carolina.

Recent Legislative Developments

On February 14, 2024, the South Carolina Senate passed S. 423, the South Carolina Compassionate Care Act, in a 24-19 vote after four days of debate. This revised bill, introduced by Sen. Tom Davis, addressed procedural issues that had previously halted the bill’s progress. The focus now shifts to the House of Representatives, which in 2022 refused to debate the bill on procedural grounds. Advocates are urging constituents to write to their state representatives to express their support for medical cannabis legislation.

Regulatory Body

Should medical marijuana become legalized, the South Carolina Department of Health and Environmental Control (DHEC) would likely be the regulatory body responsible for overseeing the program. This would include licensing, regulation, and enforcement of the state’s medical marijuana laws.

Hemp

Hemp was legalized in South Carolina with the passage of the South Carolina Industrial Hemp Pilot Program in 2017. This legislation, known as House Bill 3559, was signed into law by Governor Henry McMaster. The bill allowed for the cultivation of industrial hemp for research purposes under a state pilot program. The federal 2018 Farm Bill further expanded the legality of hemp, making it an agricultural commodity and removing it from the list of controlled substances.

The South Carolina Department of Agriculture (SCDA) is the primary regulatory body overseeing the hemp industry in South Carolina. The SCDA is responsible for issuing licenses, monitoring compliance, and ensuring that hemp cultivation and processing adhere to both state and federal regulations.

Types of Licenses

South Carolina offers several types of licenses for hemp businesses, each with specific requirements and associated fees. The primary licenses are:

  • Hemp Grower License
    • Description: Allows for the cultivation of industrial hemp.
    • Cost: $100 non-refundable application fee; $1,000 annual licensing fee.
    • Restrictions: Growers must ensure that their hemp crops contain no more than 0.3% THC on a dry weight basis. Grow sites must be at least 1,000 feet from schools and other sensitive areas.
  • Hemp Processor Permit
    • Description: Allows for the processing of hemp into various products, including fibers, seeds, and extracts.
    • Cost: $100 non-refundable application fee; $3,000 annual licensing fee.
    • Restrictions: Processors must comply with state and federal regulations regarding THC levels and product safety standards.

 

Application Process

The application process for obtaining a hemp business license in South Carolina involves several steps:

  • Pre-Application Preparation
    • Research Requirements: Understand all state and federal regulations applicable to hemp cultivation and processing.
    • Secure Location: Ensure the proposed cultivation or processing site complies with zoning and land use regulations.
    • Develop Business Plan: Prepare necessary documentation, including security plans, operational procedures, and financial plans.
  • Submit Application
    • Complete Forms: Fill out the appropriate application form available on the SCDA website.
    • Pay Fees: Submit the non-refundable application fee along with the completed application.
    • Provide Documentation: Include detailed site plans, proof of legal access to the cultivation or processing site, and any other required documentation.
  • Application Review
    • SCDA Review: The SCDA reviews applications to ensure compliance with state and federal laws.
    • Background Checks: Conducted on all applicants and key personnel.
  • Inspection
    • Site Inspection: The SCDA conducts an on-site inspection to verify compliance with regulatory standards.
  • Licensing
    • Issuance: Upon successful review and inspection, the SCDA issues the license, allowing the business to commence operations.

 

Restrictions and Compliance

Hemp businesses in South Carolina must adhere to various restrictions and compliance requirements:

  • THC Testing: All hemp and hemp products must be tested to ensure THC levels do not exceed 0.3% on a dry weight basis.
  • Record Keeping: Licensees must maintain detailed records of planting, harvesting, and processing activities.
  • Reporting Requirements: Regular reports must be submitted to the SCDA detailing cultivation and production activities.
  • Zoning and Land Use: Cultivation and processing sites must comply with local zoning regulations regarding proximity to schools and other sensitive areas.

 

Costs and Financial Requirements

In addition to the licensing fees, applicants must demonstrate financial capability to sustain operations. This includes funding for testing, security measures, and compliance with regulatory requirements.

Psychedelics

Psychedelics such as psilocybin, LSD, and MDMA are classified as Schedule I controlled substances under both federal law and South Carolina state law. This classification indicates that these substances are considered to have a high potential for abuse, no accepted medical use, and a lack of accepted safety for use under medical supervision. In South Carolina, the possession, sale, or distribution of these substances is illegal and subject to severe penalties. According to the South Carolina Controlled Substances Act (Title 44, Chapter 53 of the South Carolina Code of Laws), these psychedelics are listed under § 44-53-190, which categorizes controlled substances into various schedules, with Schedule I including psilocybin, LSD, and MDMA.

  • Ketamine Laws and Telehealth Laws: Ketamine is classified as a Schedule III controlled substance, meaning it is recognized for its medical use but still has the potential for abuse. In South Carolina, ketamine is legally available for medical use, particularly for anesthesia and treatment-resistant depression. The state’s telehealth laws allow for the prescription of controlled substances, including ketamine, under specific conditions. According to S.C. Code Ann. § 40-47-37, licensed healthcare providers can offer medical services, including the prescription of controlled substances, through telehealth platforms. Providers must establish a valid patient-provider relationship, conduct appropriate assessments, and comply with all applicable regulations to ensure the safety and effectiveness of the treatment.
  • State Right to Try: South Carolina’s Right to Try law allows patients with terminal illnesses to access investigational treatments not yet approved by the FDA, which may theoretically include certain psychedelics if they qualify as investigational treatments. This law, codified in S.C. Code Ann. § 44-137-10 et seq., permits terminally ill patients to use investigational drugs, biological products, and devices. While primarily aimed at providing access to life-saving treatments, the law offers a potential pathway for the use of psychedelics under specific conditions if they are part of an investigational study.
  • State Religious Exemptions: South Carolina does not have specific statutory exemptions for the religious use of psychedelics. However, religious freedom is protected under both the federal Religious Freedom Restoration Act (RFRA) and the South Carolina Religious Freedom Act. The South Carolina Religious Freedom Act, outlined in S.C. Code Ann. § 1-32-10 et seq., provides protections for individuals to practice their religion freely. While the act does not specifically address the use of psychedelics, it offers a framework for potential religious use claims. Such claims would likely face significant legal challenges given the Schedule I status of most psychedelics.

Check Other States Licensing Guide

  • Adult Use
  • Medical
  • Limited Medical
  • Illegal

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