38-35-3. Application for grower license--Location and size requirements.

After the department receives approval by the United States Secretary of Agriculture for the state plan submitted pursuant to § 38-35-15, any person seeking to purchase, receive, or obtain industrial hemp, other than industrial hemp product and industrial hemp stalk bales, for planting, storing, propagating, or producing shall apply to the secretary for a grower license on an application form prescribed by the department and submit a nonrefundable annual application fee. The secretary shall deposit fees collected under this chapter in the hemp regulatory program fund.

An application for licensure to plant, grow, or produce industrial hemp must be for at least one-half, contiguous outdoor acre with a three hundred plant minimum, or in a greenhouse with a fifty plant minimum, or combination thereof. No industrial hemp grower's license may be issued by the secretary to plant, grow, or produce industrial hemp within the corporate limits of any incorporated municipality without receiving verification from the municipality that it meets all applicable municipal zoning regulations.

Source: SL 2020, ch 176, § 3, eff. Mar. 27, 2020; SL 2021, ch 182, § 1, eff. Mar. 25, 2021; SL 2022, ch 155, § 3, eff. Mar. 18, 2022; SL 2024, ch 168, § 2.



SDLRC - Codified Law 38-35-3 - Application for grower license--Location and size requirements.

38-35-3.1. Application for a research license.

Any person seeking to plant, store, propagate, or produce industrial hemp for the purpose of research shall apply to the secretary for a research license on an application form prescribed by the department and submit a nonrefundable annual application fee. The secretary shall deposit fees collected under this chapter in the hemp regulatory program fund pursuant to § 38-35-6. Research licensees may be exempt from lot size minimums pursuant to § 38-35-3. Applicants for a research license must be affiliated with an accredited university. Applicants for a research license must submit a summary to the department that outlines the applicant's objectives and a timeline of activities.

All industrial hemp produced or processed under a research license must be:

(1)    Grown, used, or processed for research purposes only; and

(2)    Properly disposed of in a manner to render irretrievable and unable to enter the stream of commerce, except for industrial hemp seed.

Source: SL 2022, ch 155, § 4, eff. Mar. 18, 2022.