Gov. Kristi Noem has vetoed a bill increasing the amount of THC allowed in hemp that's being transferred between processors.
House Bill 1209 would have increased the maximum THC in hemp as a "product in process" from one percent to five percent. THC is a chemical that produces the psychological effect associated with marijuana.
The bill defined a "product in process" as hemp being transferred from one licensed processor to another. Any finished hemp product would still need its THC level to be below 0.3%, the federal threshold for defining a product a "marijuana."
Noem's veto letter to the legislature said the bill would allow hemp products and crops to contain sixteen times more THC than allowed at the federal level.
“Only two states allow a product in process to contain up to 5% THC: Colorado and New York, both of which have legalized recreational marijuana,” Noem said. “South Dakota voters spoke clearly this past November: they do not want recreational marijuana. If I allowed this bill to become law, it would jeopardize the clearly expressed will of the people. Increasing the THC level to 5% would hinder our successful hemp program and undermine enforcement of our drug laws.”
Advocates say the veto will make it difficult to grow and process cannabinoid hemp, the type of hemp used to make CBD products like oils and gummies.
South Dakota Industrial Hemp Association Board President Ken Meyer said without this bill, South Dakota hemp producers lose out on a potential revenue source.
Meyer said the veto will not impact production of grain and fiber hemp. This type of hemp is used to make clothing, canvas, and even building materials.
Meyer said both Noem and the legislature have been supportive of the grain and fiber hemp industry.
