PIERRE, S.D. (KELO) — A federal judge has refused to block a new South Dakota law that would impose new regulations on industrial hemp.
The state Legislature approved HB1125 during the 2024 session and Governor Kristi Noem signed it into law on Monday, July 1. The bill bans the chemical modification or conversion of industrial hemp, as well as its sale or distribution. Penalties for violations are a Class 2 misdemeanor with a maximum fine of $500 and 30 days in county jail.
Hemp Quarters 605, a downtown Pierre business, has filed a lawsuit challenging the law as unconstitutional, alleging it violates the 2018 federal Farm Bill, which allows the sale, shipping, transport and packaging of hemp products.
But U.S. District Judge Eric Schulte on Saturday issued a 19-page opinion and order denying a preliminary injunction sought by Hemp Quarters 605 to delay implementation of the South Dakota law.
“The Legislature's passage of HB 1125 was intended to promote the health and welfare of South Dakotans and falls squarely within the scope of police powers traditionally reserved to the states,” Judge Schulte wrote.
The federal judge also said South Dakota's law does not conflict with the Farm Bill passed by Congress in 2018. He pointed to specific language in the Farm Bill, saying, “Nothing in this section (i) regulates the production of hemp or (ii) supersedes or limits any State or Indian tribal law that is more stringent than this section.”
As for the argument that Hemp Quarters 605 could be prosecuted, Judge Schulte noted that was unlikely.
“This Court has been advised that the Hughes County State's Attorney will not prosecute Plaintiff for any violation of HB 1125 during the pendency of this case, but the South Dakota Attorney General's Office has made no such agreement. Defense counsel has further advised the Court, however, that the South Dakota Attorney General's Office does not typically prosecute misdemeanors such as those contained in HB 1125,” the judge wrote.
The bill received support from the South Dakota Department of Health throughout the legislative process, and the final version was approved by the Senate 31-1 and the House 69-1.
Judge Schulte wrote, “Protecting the health and welfare of South Dakotans is a deeply public interest. Determining how to most effectively advance that interest rests, under our political system, with the Legislature and Governor. This Court must follow their decisions unless they violate the law or the U.S. Constitution, which HB 1125 does not.”
