The bill amends South Dakota's existing laws on industrial hemp by updating definitions and licensing requirements, specifically introducing the term "licensed hemp producer" to ensure that only authorized individuals can cultivate hemp. It clarifies the definition of "industrial hemp product" and outlines the necessary documentation for transporters and producers, reinforcing compliance with federal regulations. Additionally, the bill repeals several sections that mandated licensing for growers and processors, criminal background checks, and the establishment of a hemp regulatory program fund, aiming to simplify the regulatory framework and make it more accessible for producers.

Moreover, the bill proposes the repeal of various provisions related to inspections and testing, including the authority of the secretary to contract with the Department of Public Safety for inspections, the assessment of inspection fees, and the requirement for the Department of Health to establish testing procedures for industrial hemp products. A significant change is the introduction of a provision stating that the Act will become effective on January 1, 2027, marking a shift towards a more streamlined approach to hemp production and processing in South Dakota by removing many existing compliance and inspection requirements.

Statutes affected:
Introduced, 01/06/2026: 38-35-1, 38-35-17, 38-35-17.1, 38-35-2, 38-35-3, 38-35-3.1, 38-35-4, 38-35-5, 38-35-6, 38-35-7, 38-35-8, 38-35-9, 38-35-10, 38-35-11, 38-35-12, 38-35-14, 38-35-15, 38-35-18, 38-35-20, 38-35-22