South Carolina Hemp Law Update: The Fight for Our Industry’s Future

NOTE: This update applies to South Carolina operations ONLY. Our Georgia locations and customers are not affected by this legislation.

To our Coastal Green Wellness Family,

For the last eight years, my mission has been simple: to provide the highest quality wellness products while self-regulating with the strict standards I believe should be law—including rigorous third-party testing and firm age gates. For the past three years, we have worked tirelessly through the South Carolina Healthy Alternatives Association to advocate for proper legislation that protects consumers without destroying small businesses.

However, the bill currently moving through the State House is not the "safety" measure we fought for. It is a calculated move that threatens to dismantle the independent hemp industry in our state.

H.3924: What You Need to Know

Just this past week, the South Carolina Senate advanced H.3924. While it is marketed as a way to "regulate the market," it actually places an incredibly tight chokehold on the industry, aimed at restructuring consumer access and running small businesses out of the state.

The "Alcohol" Model The most devastating part of this bill is that it forces intoxicating hemp products into the state’s three-tier alcohol model.

• The Distribution Squeeze: Products would be required to move from a licensed manufacturer to a licensed alcohol distributor, then finally to a licensed alcohol retailer. This effectively wipes out existing independent hemp distribution companies.
  
  
• Eliminating the Independent Retailer: This bill essentially hands our industry over to the alcohol lobby. Under this model:
  

• • Beverages with up to5mg THC would be restricted to outlets with a beer and wine license.
    
  • Beverages and gummies with up to 10mg THC would be restricted exclusively to liquor stores.
  • No On-Premise whatsoever, so your favorite bar or restaurant would not be able to offer any products
    

• The Impact: This eliminates the small, independent wellness retailers you know and trust, moving these products into an environment focused on alcohol consumption rather than education and health.

We fully agree with the requirements for professional packaging, clear labeling, and 21+ age gates. However, pushing this industry solely into the hands of the alcohol industry is prohibition disguised as regulation.

When Does This Go Into Effect?

H.3924 is currently heading for its third reading in the Senate, where it is almost certain to pass. From there, it heads back to the House. If the House does not amend it, it goes directly to the Governor’s desk.

• Immediate Impact: Once signed, the 21+ age requirement and enforcement take effect immediately.
  
  
• The 60-Day Window: The remainder of the bill—including the three-tier alcohol model and the removal of products from independent shelves—would go into effect 60 days after signing.
  
  

How Did We Get Here?

Over the last few weeks, the narrative in the South Carolina Senate changed significantly. We went from a conversation about "safety regulations" to a narrative that pushes the entire hemp market into the three-tier liquor model. While we understand the state’s goal of regulating the market, we firmly believe that handing a wellness-based industry over to the liquor industry is a dangerous and misguided path for South Carolina.

The Fight Isn't Over: What We Can Do

Although this bill has strong support, it is not 100% certain. Because it must return to the House, Coastal Green Wellness and the South Carolina Healthy Alternatives Association will be doing everything in our power to convey the benefits of our industry to House members and show them how detrimental this "liquor store model" is for both small businesses and consumers.

We need your voice. We will be sending out following "Calls to Action" shortly. Please be ready to reach out to your representatives to let them know that you support safety, but you do not support the elimination of your local wellness retailers.

Thank you for your eight years of support. We aren't backing down.

In Wellness,
David Spang

Founder & Operator Coastal Green Wellness