South Carolina

South Carolina is one of the country’s most permissive hemp markets undergoing sharp legislative reform under enforcement pressure. Under the South Carolina Hemp Farming Act at S.C. Code § 46-55-10 et seq., hemp is defined at the federal 0.3% delta-9 dry-weight standard, and finished hemp-derived products have generally been interpreted to fall under that same delta-9-only standard rather than a total-THC test. That interpretation has allowed hemp-derived Delta-9 beverages, gummies, tinctures, and even high-THCA flower to reach general retail without a state milligram cap, statutory 21+ age gate, or comprehensive licensing framework. Cultivation is administered by the South Carolina Department of Agriculture (SCDA) under a USDA-approved plan. Wisconsin market intelligence estimates the 2025 SC hemp beverage segment generated approximately $60 million in state sales alone, and hemp-derived intoxicants have proliferated at gas stations, convenience stores, package stores, and specialty hemp shops statewide. The enforcement climate shifted sharply in December 2025 when ‘Operation Ganjapreneur’ — a multi-agency crackdown led by AG Alan Wilson and SLED Chief Mark Keel — resulted in significant seizures and arrests targeting retailers selling high-THCA flower classified as illegal marijuana. AG Wilson articulated the state posture: ‘if a product gets you high, the state views it as illegal marijuana, regardless of labeling.’ The operation drew on a 2021 SC AG opinion stating legislative intent to align with federal law, which considers Total THC for production compliance. That opinion is interpretive guidance rather than statutory prohibition, but Operation Ganjapreneur signaled that state authorities are no longer tolerating the ‘THCA loophole’ interpretation for THCA flower. Notably, Operation Ganjapreneur focused primarily on THCA flower rather than hemp Delta-9 beverages — the beverage segment remains largely operational as of mid-2026. The 2025-2026 legislative session brought a flurry of competing bills, none yet enacted as of June 2026. H 4759 (Intoxicating Hemp Beverages Act) would limit beverage sales to liquor stores at 5mg THC per 12oz serving cap with expensive licensing fees — opposed by industry as excluding lawful retail channels. H 3924 would establish a comprehensive licensing framework by adding Chapter 56 to Title 46, treating hemp-cannabinoid beverages with no more than 5mg allowable THC in 12oz containers as beer or wine under existing alcohol law, imposing 21+ possession/consumption prohibitions with $200-$500 misdemeanor fines, and requiring merchandising signage. H 3935 provides a parallel framework. H 4004 focuses specifically on hemp-derived beverages. H 4758 would function as a near-total ban prohibiting retail sale or shipment into SC of full-spectrum hemp products. SB 2092 adds ‘hemp beverage’ to the Alcoholic Beverage Control Act. On March 19, 2026, after two weeks of chaotic debate including a past-midnight rejection followed by a do-over vote 17 hours later, the SC Senate passed a compromise hemp beverage regulation bill 35-4 that would limit sales to liquor stores and restrict lawful products to beverages and gummies with no more than 10mg THC per serving. That bill remains pending House action. Senator Michael Johnson (R-York) articulated the urgency: ‘This is too important to leave alone. We have to regulate this or we have to outlaw it. We cannot allow this to stay the way it is.’ The hemp market’s estimated $60M state contribution and $1B+ national market has helped keep the industry engaged in the legislative process. South Carolina has no medical or adult-use cannabis program. Julian’s Law (2014) provides a narrow CBD pathway for intractable epilepsy patients requiring 15% CBD through university research. The Compassionate Care Act has passed the SC Senate multiple times but stalls in the House each session. For the federal cliff on November 12, 2026, South Carolina is one of the most exposed markets: no state-level Section 781 pre-alignment on potency, no state mg cap, active AG enforcement environment via Operation Ganjapreneur, and multiple pending legislative frameworks that could reshape the market rapidly. Section 781’s 0.4mg per-container federal ceiling will directly reshape SC hemp beverage math with no state pre-alignment. Expect one of the pending 2025-2026 bills (or a 2027 successor) to pass in coordination with the federal cliff, likely codifying a 5-10mg per-serving cap, 21+ age gate, and comprehensive licensing framework — likely folding hemp beverages into ABL Division jurisdiction similar to alcohol regulation.