Hemp Legislation Updates in the Carolinas: Navigating the Evolving Landscape

The hemp industry in the Carolinas is experiencing significant legislative activity as both South Carolina and North Carolina seek to regulate hemp-derived products. This blog delves into the latest developments in each state, highlighting key legislative proposals and their potential implications for consumers, businesses, and the broader community.

South Carolina: Strengthening Oversight of Hemp-Derived Products

South Carolina is actively pursuing legislation to regulate the sale and distribution of hemp-derived consumables. Notably, two bills have been introduced in the 2025-2026 legislative session:

Bill 3924: Regulating Hemp-Derived Ingestibles

Introduced on February 6, 2025, Bill 3924 aims to establish comprehensive regulations for hemp-derived consumables intended for human ingestion. Key provisions include:

Definition of Hemp-Derived Consumables: The bill defines these products as finished goods intended for human ingestion, made from naturally occurring cannabinoids extracted from hemp without chemical alteration.
Prohibition of Chemically-Derived Cannabinoids: The legislation explicitly bans consumables containing chemically-derived cannabinoids such as Delta-8-THC, Delta-10-THC, and Hexahydrocannabinol (HHC).
Age Restrictions and Licensing: Sales of hemp-derived consumables would be restricted to individuals aged 21 and over. Retailers must hold a valid off-premises beer and wine permit or a retail liquor store license to sell these products.
Penalties for Non-Compliance: The bill outlines criminal offenses and penalties for violations, including fines and potential imprisonment for selling to underage individuals or failing to display required signage.

This legislation reflects South Carolina's commitment to ensuring the safe consumption of hemp-derived products by implementing strict regulatory measures.

Bill 137: Regulating Hemp-Derived Cannabinoids

Earlier, in December 2024, Bill 137 was introduced to regulate the sale and distribution of products containing hemp-derived cannabinoids. Key aspects of this bill include:

Licensing Requirements: Manufacturers and retailers of hemp-derived cannabinoid products must obtain a license from the South Carolina Department of Agriculture.
Age Verification: Sales to individuals under 18 are prohibited, and retailers are required to verify the age of purchasers.
Product Placement: Products must be kept behind the counter in retail establishments, inaccessible to customers without assistance.
Testing and Labeling: Mandatory testing for cannabinoids, heavy metals, pesticides, and other contaminants is required. Products must be labeled with ingredient lists, allergen information, and appropriate warnings.

This bill underscores the state's proactive approach to regulating hemp-derived products, emphasizing consumer safety and product quality.

North Carolina: Balancing Hemp Regulation and Medical Marijuana Legalization

In North Carolina, the legislative focus encompasses both the regulation of hemp-derived products and the potential legalization of medical marijuana.

House Bill 563: Regulating Hemp-Derived Consumables

Introduced in 2024, House Bill 563 seeks to establish regulations for hemp-derived consumable products. Key provisions include:

Definition and Scope: The bill defines hemp-derived consumable products as finished goods intended for human ingestion or inhalation, containing a delta-9 THC concentration of not more than 0.3% on a dry weight basis.
Age Restrictions: Sales to individuals under 21 are prohibited.
Licensing: Businesses involved in the manufacture, distribution, or sale of these products must obtain a license from the Department of Revenue.
Advertising Restrictions: The bill imposes limitations on advertising to prevent targeting individuals under 21.

This legislation aims to create a structured regulatory environment for hemp-derived consumables, ensuring product safety and restricting access to minors.

Prospects for Medical Marijuana Legalization

Concurrently, there is a growing momentum toward legalizing medical marijuana in North Carolina. Senate President Pro Tempore Phil Berger has indicated that there is "an opportunity" to advance medical marijuana legislation, potentially in conjunction with restrictions on unregulated intoxicating hemp products. This development suggests a comprehensive approach to cannabis regulation in the state.

Implications for the Carolinas

The legislative initiatives in both South Carolina and North Carolina reflect a regional effort to regulate hemp-derived products effectively. These measures aim to ensure consumer safety, prevent underage access, and establish clear guidelines for businesses operating in the hemp industry.

For consumers, it's essential to stay informed about these evolving regulations to ensure compliance and make informed choices about hemp-derived products. Businesses should proactively engage with the regulatory process, obtain necessary licenses, and adhere to testing and labeling requirements to remain compliant and build consumer trust.

As the legal landscape continues to evolve, stakeholders in the Carolinas' hemp industry must remain vigilant and adaptable, ensuring that their practices align with new legislative requirements and contribute to a safe and thriving market.

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