I. Executive Summary and Strategic Imperative
1.1 The Mandate for Industry Leadership and Self-Regulation
The South Carolina hemp industry is currently navigating a period of profound legislative scrutiny and public concern, driven by the wide availability of intoxicating, hemp-derived cannabinoid products (such as Delta-8 THC) that have proliferated due to interpretations of the 2018 Farm Bill’s definition of hemp (less than $0.3\%$ Delta-9 THC on a dry weight basis). This scenario has led to sharp criticism from bodies like the National Association of Attorneys General, who cite severe public health and safety risks, especially concerning products packaged to appeal to children, and are urging immediate legislative action to close the perceived loophole. The seriousness of this situation is underscored by ongoing Congressional discussions aimed at banning or severely restricting such derivatives nationwide.
The South Carolina Better Wellness Alternatives (SCBWA) organization must counter this pressure by establishing and rigorously enforcing superior self-regulatory standards. These comprehensive Codes of Conduct (CoCs) serve as the formalized operational framework, demonstrating that the industry is committed to public safety and maturity. By uniformly adopting these higher standards, South Carolina stakeholders demonstrate that self-regulation can create an orderly market that protects its citizens and provides a clear model for federal consistency. This proactive approach, centered on excluding youth-appealing and intoxicating products from general retail, is essential to protect the legitimate CBD and industrial hemp market from broad, restrictive federal or state prohibitions.
1.2 Aligning the Codes with the SCBWA 501(c)(3) Mission
The enforcement of these Codes of Conduct is inextricably linked to SCBWA’s mission as a 501(c)(3) non-profit organization focused on three foundational pillars: Education, Advocacy, and Certification.
The Certification pillar is upheld by making adherence to these CoCs the mandatory prerequisite for achieving the SCBWA Certified Partner seal, which represents the highest mark of commitment to quality control and legal compliance in South Carolina. The Education pillar is advanced by the CoCs’ requirement for mandatory transparency, particularly through verifiable Certificates of Analysis (CoAs). This transparency enables the SCBWA to fulfill its mission of providing clear, jargon-free resources so consumers can make informed decisions and recognize fraudulent product claims. The Advocacy pillar benefits significantly, as the unified commitment to these standards presents a “credible, responsible, and professional voice” to lawmakers, advocating for balanced legislation that prioritizes public health while promoting economic growth for licensed businesses.
Furthermore, the organization’s dedication to Compassion is indirectly supported. The predictable revenue streams generated from paid business memberships (Dispensary Locations, Brands, Ancillary Partners) are vital for the non-profit’s operational viability. Critically, contributions from these business stakeholders and individual donors are directly utilized to fund the Veterans & Special Needs Program. This charitable component provides tailored educational resources, consultation, and financial assistance—including subsidized or free products—to qualifying high-need populations, directly integrating the organization’s compliance efforts with its charitable mandate.
1.3 Overview of SCBWA Stakeholder Groups
The Codes of Conduct apply distinctly to five segmented stakeholder groups based on their role within the ecosystem and their relationship with the SCBWA :
- Licensed Participants: Entities required to possess permits under the South Carolina Hemp Program, including Farmers, Processors, and Handlers (such as brokers, transporters, and laboratories).
- Certified Brands & Retailers: The consumer-facing businesses (manufacturers/brands and dispensary locations) who actively seek the compliance shield and market credibility provided by the SCBWA certification program.
- Ancillary Vetted Partners: Essential business-to-business (B2B) service providers, including legal counsel, financial institutions, specialized insurance agencies, and compliant packaging vendors, who require the “Vetted Partner” designation to access the compliant market.
- Consumers & Individual Advocates: Individuals utilizing hemp or cannabis products who serve as the critical mass for advocacy campaigns and the end-user compliance enforcement layer.
- Strategic Supporters & Government Entities: Non-commercial partners, including research bodies (Clemson Extension), economic development agencies (SC Department of Commerce), and major business alliances (SC Manufacturing and Commerce, SCMC), that provide policy legitimacy, technical expertise, and political influence.
II. SCBWA Foundational Compliance Standards (The Self-Regulatory Mandate)
These standards represent the non-negotiable compliance floor for all businesses seeking or maintaining the SCBWA Certified Partner Seal.
2.1 The Non-Negotiable Standard: Elimination of Intoxicating Products from General Retail
To distinguish the SCBWA-certified market from the unregulated gray market, Certified Partners must proactively remove intoxicating hemp-derived products from general retail settings, specifically convenience stores and gas stations.
The SCBWA standard defines “intoxicating” by effect, not solely by the statutory $0.3\%$ Delta-9 THC dry weight threshold. This standard targets products containing concentrations of derivatives, extracts, or isomers (such as Delta-8 or Delta-10 THC) known to produce psychoactive effects This stringent policy is not only a matter of public safety but a necessary political maneuver. By setting a robust self-policing boundary against the “Frankenstein” products criticized in federal discussions , the SCBWA shields its members from the primary risk factor driving legislative bans and converts a looming industry risk into a competitive compliance advantage.
2.2 Product Integrity and Manufacturing Quality (GMP Mandate)
All Certified Processors and Manufacturers are mandated to adopt and consistently adhere to current Good Manufacturing Practice (GMP) standards or an equivalent comprehensive quality management system. This ensures consistent quality, purity, and predictable formulation for consumer safety.
The GMP commitment guarantees product uniformity, reduces the likelihood of contamination, and limits liability across the supply chain. Furthermore, adherence requires businesses to maintain and immediately present documentation for all necessary state licensing, including the $1,500$ processor permit and specialized licenses like Weighmaster or Dealer certifications, ensuring full legal operability within the state program.
2.3 Transparency and Traceability: Mandatory Digital COAs
To maximize accountability and consumer trust, every certified product package must feature an active, scannable QR code or Digital Link that leads directly to the full, batch-specific Certificate of Analysis (CoA).
The mandated CoA must be “full-panel,” disclosing all relevant compliance data, including potency (Total THC, Delta-9 THC, CBD, etc.), purity testing (heavy metals, pesticides, microbial contaminants), and confirmation of necessary chemical process testing. This requirement is critical for two reasons: First, it provides radical transparency, allowing consumers to use their mobile devices as immediate compliance auditing tools. Second, it directly addresses the SCBWA’s educational mission to empower consumers to “recognize a fraudulent Certificate of Analysis (COA)”. This verifiable, batch-level data ensures that the SCBWA certification seal maintains market credibility by constantly affirming product claims.
III. Code of Conduct: SC Licensed Participants (The Supply Chain)
This Code applies specifically to entities permitted under the South Carolina Hemp Program (Farmers, Processors, Handlers, and Labs).
3.1 Code of Conduct for SC Licensed Farmers
A. Cultivation Integrity and Legal Compliance
Certified Farmers must maintain strict legal compliance with South Carolina Department of Agriculture (SCDA) regulations, including timely reporting to the Farm Service Agency (FSA) and adhering to official THC testing windows. Farmers must have documented, pre-approved procedures for managing “Hot Hemp”—material that tests above legal thresholds—mandating prompt destruction or compliant remediation as directed by the SCDA. Farmers must also adhere to best practices for seed sourcing, following SCBWA guidance when purchasing certified seedlings or clones from permitted out-of-state nurseries if local availability is insufficient.
B. Sustainable and Ethical Practices
Farmers are expected to commit to environmentally responsible cultivation, implementing best practices for soil health and pesticide management. This commitment is supported by SCBWA’s engagement with research partners like Clemson Extension for technical expertise and field trials.
3.2 Code of Conduct for SC Licensed Processors and Manufacturers (Brands)
A. Manufacturing Excellence and Safety
Processors and manufacturers must ensure their facilities maintain all state licenses, including the $1,500$ processor permit, and operate under demonstrable GMP standards. They must guarantee that final products precisely meet label claims for potency and ingredients, avoiding any misleading representation. Furthermore, they must utilize secure, child-resistant packaging (CRP) and comply with all SCBWA labeling standards, including the mandatory digital CoA QR code.
B. Ethical Sourcing and Supply Chain Vetting
Processors must conduct due diligence by prioritizing raw biomass and extracts sourced from SCBWA Licensed Farmers or certified out-of-state suppliers adhering to equivalent compliance standards. Processors must meticulously maintain complete Chain of Custody (CoC) documentation for all materials from harvest through final extraction, guaranteeing traceability and accountability throughout the supply chain.
3.3 Code of Conduct for Analytical Testing Laboratories
A. Independence and Accreditation
Labs used by Certified Partners must maintain recognized accreditation (e.g., ISO or DEA-accreditation, if applicable). A critical ethical requirement is the enforcement of a strict Conflict of Interest Policy, ensuring financial and operational independence from the entities whose products they test. This independence is necessary to guarantee the integrity and reliability of all compliance data.
B. Reporting Standards
Labs commit to issuing full-panel CoAs that are scientifically rigorous yet clear for consumers. The formatting of these reports must support seamless integration into the Digital Link QR code system required on certified products. Labs must also commit to data retention and full cooperation with SCBWA or regulatory audits concerning compliance results.
IV. Code of Conduct: Consumer-Facing and Ancillary Stakeholders
This Code governs marketing ethics, professional integrity, and point-of-sale conduct.
4.1 Code of Conduct for Certified Brands and Retailers (Dispensary Locations)
A. Absolute Prohibition on Youth-Appealing Marketing (The SCBWA Youth Shield)
This compliance benchmark directly addresses the public safety mandate. Certified Brands and Retailers must strictly prohibit packaging, labeling, advertising, or product design that is considered attractive to minors, as this is a primary driver of federal scrutiny. This includes:
- Packaging: Banning imagery that imitates candy, snack foods, or toys, and explicitly prohibiting the use of cartoons, celebrity endorsements, imagery of minors, or language that targets children (e.g., “kandy,” “fire,” “juicy,” “tart”). Edible products must also prohibit pictures of the edible product itself on the packaging.
- Advertising: All broadcast and digital marketing materials must adhere to the requirement of possessing data demonstrating that at least $71\%$ of the audience is reasonably expected to be 21 years of age or older.
By adopting and enforcing these highly stringent, multi-jurisdictional standards for youth appeal, the SCBWA preemptively satisfies major public safety concerns and protects its members by setting a standard designed to minimize legislative and legal risk.
B. Point-of-Sale Integrity
Retailers must enforce mandatory, strict age verification (21+) for all hemp-derived cannabinoid product sales, using valid government-issued proof of age (e.g., driver’s license). They must conspicuously display the SCBWA Certified Partner Seal at the storefront and on all digital platforms to clearly communicate their commitment to compliance and quality to consumers. Furthermore, products must be sold with instructions that encourage responsible and smart consumption.
4.2 Code of Conduct for Ancillary Vetted Partners
A. Professionalism and Regulatory Competence
Ancillary Partners are required to demonstrate specialized expertise and a high standard of professionalism in handling the complex regulatory challenges unique to the SC hemp industry (e.g., hemp-friendly banking solutions, specialized liability insurance, legal counsel for licensing). Legal and financial partners must commit to providing counsel that strictly guides SCBWA members toward full regulatory compliance and effective risk mitigation. They must conduct their businesses in an honest and dignified manner that reflects positively on the industry.
B. Commitment to the SCBWA Network
Partners commit to professional ethics and must offer non-discriminatory service provision, recognizing the inherent difficulty SC hemp businesses face in securing essential B2B services. Achieving the SCBWA Vetted Partner designation is an ethical commitment that grants immediate credibility and direct access to a highly qualified, compliance-focused clientele, justifying the financial investment in the partnership.
4.3 Code of Conduct for Out-of-State Strategic Supporters
A. Mission Alignment
Strategic Supporters (individuals or national businesses) must align themselves with the SCBWA’s core mission of consumer safety, education, and responsible regulation, recognizing their role in supporting the integrity of the local market.
B. Transparency in Sponsorship
Contributions must be tax-deductible contributions to the 501(c)(3) mission. Funds are explicitly directed to critical advocacy, consumer protection efforts, and the charitable Veterans & Special Needs Program.
C. Non-Interference
Supporters must not attempt to use their financial contributions to influence SCBWA’s certification standards, product vetting decisions, or public policy stances.
V. Code of Conduct: The Consumer’s Role in Compliance Enforcement and Market Support
The engagement of the consumer base is vital, transforming individual purchasing choices into collective market enforcement and advocacy power.
5.1 Code of Support for SC Consumers and Advocates
A. Informed Purchasing Mandate
Consumers assume a responsibility to exercise due diligence. They commit to actively seeking out and prioritizing SCBWA Certified Brands and Verified Retailers listed in the official SCBWA directories. By recognizing and relying on the SCBWA Certified Partner seal, consumers direct market revenue to businesses that invest in stringent quality control and safety measures. Furthermore, consumers commit to utilizing SCBWA educational guides and scanning QR codes to verify product COAs and potency before purchase, thereby validating and rewarding compliant businesses that adhere to transparency mandates.
B. Responsible Consumption
Consumers commit to consulting with healthcare professionals before initiating or changing use of hemp-derived products, particularly if managing pre-existing health conditions or taking medications. They agree to adhere to provided instructions for use that encourage responsible and smart consumption.
C. Active Advocacy and Community Engagement
Consumers and individual advocates are the primary agents for legislative support. They commit to signing up for SCBWA legislative alerts and responding quickly to calls to action, thereby providing the unified community voice necessary to influence sensible state legislation that protects the compliant economic landscape. Financial support through memberships or donations directly contributes to funding critical advocacy and the charitable mandate of the Veterans & Special Needs Program.
5.2 Compliance Feedback Loop and Enforcement Mechanism
All stakeholders are obligated to participate in the compliance feedback loop by reporting suspected violations of these Codes of Conduct (e.g., youth-appealing products, mislabeling, non-compliant sales practices) to the SCBWA.
Given that the Board of Directors retains exclusive voting and governance authority , the organization can maintain centralized, strategic control, enabling rapid investigation and decisive action. Verified non-compliance will result in penalties, which may range from probationary status to the immediate and public revocation of the SCBWA Certified Partner or Vetted Partner Seal and public disavowal. This formalized accountability mechanism leverages the consumer base as decentralized auditors, strengthening the credibility and integrity of the SCBWA seal for all compliant market participants.
VI. Conclusion and Path Forward: Securing the SC Hemp Ecosystem
The proposed Codes of Conduct represent a comprehensive framework for self-regulation in the South Carolina hemp industry. They strategically address the highest-risk factors—youth exposure to intoxicating products—by setting measurable standards (GMP, Digital COAs, strict youth packaging prohibitions) that exceed current statutory requirements.
The economic architecture of the SCBWA membership model ensures the Codes are commercially advantageous: certification acts as a competitive shield against regulatory interference and serves as a powerful magnet directing consumer revenue toward compliant businesses.
The path forward requires immediate adoption of these standards by the SCBWA Board, integration into all membership agreements, and a public communication strategy that actively encourages consumers to leverage their purchasing power to support certified partners. By demonstrating unwavering commitment to quality, transparency, and public safety through these formalized Codes of Conduct, the SCBWA and its members can successfully secure a stable, legitimate, and sustainable wellness ecosystem in South Carolina.
