South Dakota Governor Larry Rhoden signed a bill repealing the state’s industrial hemp program into law on Tuesday.
The bill redefines industrial hemp products and includes documentation requirements for transporters and producers. Allowing the U.S. Department of Agriculture to reclaim authority over hemp farming policies.
Brian Walsh, Deputy Secretary of Agriculture and Natural Resources of South Dakota, supported the bill, saying the program is not fiscally stable, speaking in favor of it in its early stages.
According to Walsh, charges collected from hemp farmers cover 11 percent of the program’s expenses, with the remaining amount paid through general funds.
He said turning the program over to the USDA will support the industry by eliminating extra oversight, removing a licensing fee, and saving state funds.
Additionally, the bill rescinds multiple sections of the program, such as the establishment of hemp regulatory program funds.
Other bills Governor Rhoden signed into law are establishing guidelines for state agencies regarding programs that may impact tribal members on reservations and changes how revenue is distributed from severance taxation on new permits
