Medical use of marijuana
No, it is not allowed, as marijuana is still considered a prohibited “controlled substance”. See SC Code Ann. Title 44, Chapter 53 “Poisons, drugs and other controlled substances.” In addition, anyone who attempts to disguise marijuana as industrial marijuana is guilty of a misdemeanor under the Hemp Agriculture Act. SC Code Ann. § 46-55-60 et seq.
Industrial Hemp
Regulatory framework: The South Carolina Department of Agriculture (SCDA) administers the South Carolina Hemp Agriculture Program as authorized by the SC Ann Code. § 46-55-10 et seq.
No person should grow, process or handle hemp in South Carolina without first obtaining the appropriate SCDA license. SC Code Ann. § 46-55-20.
Growing statistics
Approximately 256 acres of hemp were grown in 2019 in South Carolina. Hemp is a labor-intensive crop and the estimated input cost for growing hemp is between $ 10,000 and $ 15,000 per acre. This cost includes labor, seeds and “transplants” or “clones”. Cloning is a modern method of growing hemp. A plant is taken from a hemp mother plant (cut from the stem or root) which later develops its own independent root system. Cloning increases the consistency and accelerates the plant’s maturity. Hemp is then used to make a variety of commercial and industrial products, including ropes, clothing, food, paper, textiles, plastics, insulation, supplements, oils, cosmetics and biofuels.
History
On May 10, 2017, Governor Henry McMaster signed Act No. 37 (H.3559) of “industrial hemp cultivation” 2017, making it legal for 20 South Carolina farmers to grow up to 20 acres of industrial hemp in 2018 to research purposes, according to the Farm Bill 2014. For the first time, the South Carolina Department of Agriculture (SCDA) selected 20 farmers, representing 15 counties, to participate in the 2018 Hemp Industrial Pilot Program in SC.
The Hemp Program, administered by SCDA and established by state law, originally allowed only 40 licenses of up to 40 acres each to be issued in 2019.
With the approval of the Agricultural Improvement Act of 2018 (the “Agricultural Act of 2018”), hemp has been removed from the definition of “marijuana” in the Controlled Substances Act of 1970. Since the Agricultural Act of 2018, “hemp” is considered a commodity agricultural product, defined as all parts of the plant with less than 0.3% THC on a dry weight basis.
On March 28, 2019, the governor of South Carolina, Henry D. McMaster, signed a bill that increased the number of farmers who could participate in the state’s Hemp Program and the amount of cultivated area they could cultivate. The law also provided for the requirement of a state license to grow, process and handle hemp.
Under the new state law, previous 2019 candidates who were not originally selected could re-apply in time for the 2019 growing season, as long as they passed a federal and state background check and provided the necessary information accurately, specifically: the candidate’s full name and address; the precise GPS coordinates for the location to be used for growing hemp; and a letter of intent signed with a buyer. The new law also removed the limit on the cultivated area, allowing producers to cultivate an unlimited number of hectares. After applying again, passing state and federal background checks and meeting mandatory guidance, a further 74 applicants received 2019 cultivation licenses, totaling 114 accepted into the 2019 SC Hemp Agriculture Program. In addition, 43 processors from hemp was allowed in 2019. Currently, to be an Authorized Hemp Farmer, you must be a resident of the State of South Carolina.
On October 31, 2019, the United States Department of Agriculture (“USDA”) released its provisional 161-page final rule establishing a national regulatory framework for hemp. The interim final rule governs hemp production under the Farm Bill 2018 and outlines the provisions for the USDA to approve plans submitted by states and indigenous tribes for domestic production of hemp.
In 2020, the SCDA continued to allow hemp farmers, but did so in accordance with the 2018 Farm Bill and the South Carolina State Hemp Agriculture Plan (“State Plan”), as approved by the USDA. In addition to hemp producers, SCDA will also allow hemp processors and, for the first time this year, “hemp handlers”, a category that includes seed transporters, distributors and suppliers, laboratories and others who deal with hemp, such as brokers, researchers, and sales representatives. The category also includes owners of warehouses, warehouses and drying facilities.
The State Plan establishes the procedures and rules to align the State’s Hemp Agriculture Program, of three years, with those of other States and to establish more permanent rules. The State Plan includes new laboratory testing methods to ensure stricter compliance with the 0.3% THC limit that separates hemp from marijuana. The State Plan also establishes new reporting and sampling requirements and requires SCDA staff to sample all hemp fields in the state no later than 15 days before harvest.
We would like to thank Alden Terry, Esq., Legal Advisor to the South Carolina Department of Agriculture, for his experience and assistance in providing the latest updates on the Farm Bill 2018, the South Carolina State Hemp Agriculture Plan and the South Carolina legislation on hemp.