South Carolina's Medical Marijuana Bill Prohibits Smoking, Limiting Economic Growth Of Industry

In a significant step forward, the South Carolina Senate has prioritized the Compassionate Care Act, positioning the state to possibly join 39 others that have already legalized medical marijuana.

The decision came on February 6 when state senators voted 26-13 to fast-track the bill, S. 423, to the Senate floor, achieving the necessary two-thirds supermajority by a narrow margin. This move comes after an earlier attempt failed to garner enough support just days prior.

Bill Features And Restrictions

The proposed Compassionate Care Act outlines a stringent medical cannabis program, excluding smokable forms in favor of topicals, tinctures, vaporizers and edibles.

It sets forth a comprehensive list of qualifying conditions, rigorous requirements for physician-patient relationships, and specific dosing limits to ensure controlled use.

The bill emphasizes a medical approach over recreational, with tight regulations aimed at preventing misuse and ensuring patient safety.

Under the bill, the South Carolina Department of Health and Environmental Control, as well as the Board of Pharmacy would oversee the licensing and regulation of the medical cannabis industry.

A Medical Cannabis Advisory Board is proposed to manage the program's operational aspects. Importantly, local governments retain the authority to regulate or prohibit medical cannabis establishments within their jurisdictions, allowing for community-based decision-making.

Conservative Stance, Patient-Centric Approach

As the bill advances to floor consideration, its supporters underscore its conservative stance and patient-centric approach. The legislation aims to offer relief to individuals with debilitating conditions while maintaining stringent oversight to prevent abuse.

The current momentum for medical cannabis in South Carolina, buoyed by strong public support and overcoming past obstacles, signals a hopeful, compassionate path toward legalization.

Senator Tom Davis (R), the bill's sponsor, has been a long-standing advocate for medical cannabis legalization in South Carolina, facing setbacks including a procedural defeat in the House in 2022 due to concerns over constitutionality.

Economic Ripple Effects Of Restricting Smokable Marijuana

The legislative move in South Carolina to exclude smokable forms from its medical cannabis program could have nuanced economic implications, potentially curtailing the broader market potential and economic benefits for local economies.

BDSA analyst Brendan Michel-Chesebro looks at the cannabis market's significant segments and consumer trends that drive profitability and growth.

For instance, infused pre-rolls and disposable vapes, notably within the premium product category, have seen substantial growth, indicating a strong consumer preference for these forms. In California alone, disposable vape SKUs grew by 58% between 2021 and 2023, reflecting the burgeoning popularity and consumer demand for these products.

Michel-Chesebro points to the importance of budget-friendly products in price-sensitive markets, acknowledging that while categories like Trim and Shake represent a smaller share of total sales, they hold significant potential in newly launched markets facing supply shortages and high prices.

This approach to offering a diverse range of products, including smokables, caters to a broad consumer base, from those seeking premium, high-potency products to budget-conscious consumers.

By excluding smokable cannabis, South Carolina may inadvertently limit the economic growth of its cannabis industry, constraining the market to a narrower segment of medical cannabis products and potentially missing out on the economic benefits seen in other states that embrace a wider range of consumer preferences.

Benzinga Cannabis Conferences are coming to Los Angeles. Join the Benzinga Cannabis Market Spotlight: California, and unlock the future of cannabis at the premier networking event in Culver City on February 22. Connect with top industry leaders, gain insider insights into the investment landscape, and shape the evolving markets in California and beyond. Don’t miss this chance to be at the forefront of the cannabis industry’s growth and innovation! Join now. 

Photo: AI-Generated Image.