Prohibit processing of industrial hemp by extraction.
Summary
HB 1268 would amend South Dakota’s industrial hemp law to narrow what counts as lawful hemp processing and to expressly ban extraction-based processing of raw hemp plants or plant parts. The bill keeps the existing framework for hemp growers, processors, transporters, and product definitions, but revises key definitions to distinguish ordinary processing from extraction and to clarify that certain chemically derived cannabinoids are not included in “industrial hemp product.”
The core operative change is a new section stating that processing raw industrial hemp into any extract of hemp is prohibited. The bill also preserves the ability to process hemp into an initial processed form by methods other than extraction, such as decortication, devitalization, or crushing. In practical terms, the measure would limit hemp processors from converting biomass into extracts or extract-derived products, while still allowing some non-extractive processing of hemp into initial forms.
Impact
If enacted, HB 1268 would amend chapter 38-35 of the South Dakota Codified Laws governing industrial hemp. It would restrict licensed hemp processors from using extraction methods on raw hemp and would likely affect businesses involved in hemp concentrates, oils, and other extract-based products. The bill also updates statutory definitions to exclude several chemically derived cannabinoids, including delta-8 THC, delta-10 THC, THC-O, HHC, and THCP, from the definition of industrial hemp product, which could affect product compliance, licensing, enforcement, and market availability.
Sentiment
The available voting history suggests the bill was not advanced in committee, as it was tabled on a 13-0 vote. That result indicates little to no support for moving the measure forward at that stage, though the absence of recorded committee testimony limits insight into broader debate. Overall, the legislative record provided shows a procedural outcome rather than a contested floor vote, with no evidence here of divided support.
Contention
The main point of contention is the bill’s restriction on extraction, which would directly affect hemp processors and businesses producing hemp extracts or cannabinoid products. Supporters would likely view the bill as a way to tighten regulation and distinguish industrial hemp from intoxicating or chemically altered cannabinoid products, while opponents would likely argue it unnecessarily limits lawful hemp commerce and processing options. The exclusion of delta-8, delta-10, THC-O, HHC, and THCP from the hemp product definition is another likely flashpoint because it would remove a range of popular hemp-derived products from the protected category.