SC Policy: Medical Cannabis vs. Hemp: Explaining the Legislative Tug-of-War in Columbia

South Carolina is at a historic turning point. For many years, the Palmetto State has enforced some of the strictest cannabis laws in the country.

As of January 2026, a fierce political battle in Columbia is changing how the state views cannabis. On one side, the South Carolina Compassionate Care Act aims to create a tightly regulated medical cannabis system. On the other hand, new federal and state crackdowns on the “hemp loophole” threaten a billion-dollar industry that many residents depend on for wellness products.

S.53 and the Compassionate Care Act

State Senator Tom Davis of Beaufort has been pushing for medical cannabis reform for nearly ten years. During the 126th General Assembly in 2025–2026, his key bill, the South Carolina Compassionate Care Act (S.53), gained more support than ever before. 

Unlike the more open recreational markets in other states, S.53 is designed to be extremely conservative. The bill does not allow raw, smokable cannabis flower. Instead, it focuses on regulated products like oils, topicals, and edibles.

Key Provisions of S.53 include:

• Qualifying Conditions: Cancer, multiple sclerosis, epilepsy, PTSD, and terminal illnesses.

• Medical Oversight: Patients must have a real, ongoing relationship with a doctor. That doctor must also complete special training related to medical cannabis.

• Restricted Formats: No smoking or "flower" is permitted. Products are limited to oils, capsules, and patches.

• Pharmacy Model: Cannabis would be provided through specialized therapeutic pharmacies. These locations would be supervised by licensed pharmacists.

Recent Mason-Dixon polling from 2025 shows that 83% of South Carolinians support medical cannabis legalization. This suggests the real conflict is no longer between the public and the law, but between different groups within the State House.

The Hemp Crisis

After the 2018 Federal Farm Bill, South Carolina saw rapid growth in hemp-derived products. CBD, Delta-8, and THCA items flooded the market. These products stayed legal because they contained less than 0.3% Delta-9 THC by dry weight. This created a loophole that allowed intoxicating products to be sold outside traditional cannabis laws.

Why Do Lawmakers Say a “Loophole” Exists?

State and federal lawmakers argue that hemp laws were never meant to allow products that cause a high. Products like delta-8 and THCA can create effects similar to marijuana. Because they are sold in gas stations and vape shops, critics say they avoid age limits, safety testing, and basic consumer protections.

The McConnell Amendment

In late 2025, Congress acted to close this loophole. A federal spending bill included the “McConnell Amendment,” which changes how hemp is defined.

This new rule redefines hemp by limiting total THC, not just Delta-9. Each container can have no more than 0.4 milligrams of THC, covering Delta-8, THCA, and similar compounds. Full enforcement is expected by November 2026.

South Carolina’s Response in Columbia

South Carolina lawmakers are following the federal example. Two bills, H.3924 and H.3935, show the state is taking a tougher approach to hemp regulation. These proposals aim to put hemp products under stricter rules to protect consumers. 

The proposed legislation would:

• Restrict Sales: Ban hemp-derived consumables for anyone under 21

• Mandate Testing: Require third-party lab testing for pesticides and heavy metals

• Limit Intoxicants: Effectively ban products like Delta-8 gummies sold in convenience stores

Supporters argue that these measures will protect consumers and children, while critics warn that they could wipe out much of the hemp industry. For many hemp producers and retailers, these changes could be a serious threat.

Delta-8 and THCA products make up a big part of their sales. Without these products, businesses warn that revenue could fall sharply unless lawmakers provide new legal options.

Law Enforcement and "Operation Ganjapreneur"

The fight over cannabis isn’t just happening in the State House but also playing out on the streets. In December 2025, South Carolina law enforcement launched “Operation Ganjapreneur,” carrying out raids on hemp retailers across the state.

Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) has been a strong critic of both medical cannabis and unregulated hemp. He says officers can’t reliably tell legal hemp from illegal marijuana in the field without costly, time-consuming lab tests. This “technological gap” has become a key argument for those opposing legalization, who call it a “prosecutorial nightmare.”

The Economic Stakes for South Carolina

Potential Gains from a Regulated Medical Market

Supporters of S.53 highlight the economic benefits of legalizing medical cannabis. A fully regulated market could generate millions in tax revenue and create thousands of jobs, from cultivation and processing to laboratory testing and research. 

Advocates argue that South Carolina has the infrastructure and agricultural expertise to become a leading medical cannabis producer in the Southeast.

The Threat to the Hemp Industry

Industry experts warn that the upcoming hemp restrictions could hit the market hard. The national hemp retail market is worth $28 billion, and analysts say the new rules could destroy up to 95% of it.

South Carolina farmers are expected to bear a particularly heavy share of these losses. Products like Delta-8, THCA, and other hemp-derived items make up a big part of current sales, so stricter regulations could wipe out key sources of revenue.

Farmers Caught in a “Lose-Lose” Situation

In recent years, many South Carolina farmers switched from tobacco to hemp, hoping for a more sustainable crop. Now, they face a tough decision:

• Hemp farmers now face the possibility that their crops could become illegal by 2026 under the new federal and state THC limits.

• Medical cannabis licenses are very limited. Only 15 cultivation center licenses are proposed, which means most farmers won’t be able to join the legal medical market.

This double pressure puts farmers in a tough spot, risking their livelihoods while the state decides the future of cannabis and hemp rules.

Economic Uncertainty and Policy Timing

The shrinking hemp market, combined with a limited medical cannabis program, creates uncertainty for investors, farmers, and local economies. Timing will be crucial. Delays or gaps in implementing rules could worsen losses for small and mid-size producers, while states that act quickly with clear regulations could gain a competitive edge.

Conclusion

South Carolina’s cannabis policy stands at a crossroads, trying to balance medical access with economic realities. The Compassionate Care Act offers regulated medical treatments and potential revenue, but stricter hemp rules and federal THC limits threaten farmers’ and retailers’ livelihoods. Consumers also face uncertainty as laws continue to change.

This situation highlights the delicate balance between innovation, safety, and economic opportunity. How lawmakers in Columbia resolve this tug-of-war will shape the state’s cannabis landscape for years, affecting patients, producers, and the overall economy.