South Dakota's Hemp Industry Facing Setback After Gov. Noem's Veto

A bipartisan measure that would allow hemp products to contain up to 5% THC was vetoed down on Thursday by South Dakota Gov. Kristi Noem, reported Valley News Live.

House Bill 1209, sponsored by Rep. Oren L. Lesmeister and a dozen other lawmakers, sought to increase the amount of THC allowed in industrial hemp. The Department of Agriculture and Natural Resources gathered with hemp industry members and lawmakers last year to negotiate to allow a product in the process to contain up to 1% THC.

"If this bill were to become law, South Dakota would allow hemp products and crops to contain over sixteen times more THC than is currently allowed at the federal level," Noem said.

Under federal law, the use, sales and possession of cannabis that contains more than 0.3% THC is illegal and considered marijuana. To that end, marijuana has been listed as a Schedule I controlled substance under the CSA for over five decades.

"Federally, marijuana is classified as anything that contains over 0.3% THC," Noem added.

The governor also highlighted that the only two states that allow for 5% THC levels for production in the process — Colorado and New York — have enacted marijuana legalization.

Marijuana Legalization Efforts

South Dakota failed to pass a Senate 3 bill to legalize adult-use cannabis in November. If the bill was approved, adults over 21 would have been allowed to buy and possess up to one ounce of recreational cannabis from licensed retailers.

"South Dakota voters spoke clearly this past November: they do not want recreational marijuana," she said. "If I allowed this bill to become law, it would jeopardize the clearly expressed will of the people."

But, even after two efforts to enact policy reform in the Mount Rushmore State being struck down so far, cannabis activists continue to fight for the cause. South Dakotans for Better Marijuana is back on track and intent on pursuing the same cause for the third time.

In late December, marijuana advocates submitted a draft of their initiative to the Legislative Research Council (LRC) as they sought to put the measure on the ballot yet again.

Cannabis Businesses With Operations In SD

Unity Rd., the national cannabis dispensary franchise from Item 9 Labs Corp. INLB, launched cannabis sales in a Hartford store near Sioux Falls. Franchisees B.J. Olson and Adam Jorgensen opened the first non-tribal, state-licensed medical cannabis establishment statewide.

Moreover, private multi-state operator Greenlight with 23 dispensaries open, another 15 under construction and a focus on Midwestern states also pursues opportunities in the state. The company has cultivation capacities in South Dakota and eight dispensary locations under construction or development.

Photo: Courtesy of Mohan Nannapaneni by Pexels and Kindel Media by Pixabay