Federal judge rules against Pierre hemp business

PIERRE, S.D. (KELO) — A federal judge has refused to block a new South Dakota law that places new restrictions on industrial hemp.

The Legislature approved HB1125 during the 2024 session and Governor Kristi Noem signed it into law that took effect on Monday, July 1. It prohibits chemical modification or conversion of industrial hemp and the sale or distribution. The penalty for a violation is a class 2 misdemeanor punishable by a fine up to $500 and 90 days in county jail.

Hemp Quarters 605, a business in downtown Pierre, challenged the law as unconstitutional, in part because it allegedly violates the 2018 Federal Farm Bill that allows the sale, shipping, transporting, and packaging of hemp products

But U.S. District Judge Eric Schulte on Saturday issued a 19-page opinion and order declining to issue the preliminary injunction that Hemp Quarters 605 sought in its attempt to delay the South Dakota law from taking effect.

Judge Schulte stated, “The Legislature’s passage of HB 1125 falls squarely within the police powers traditionally reserved to states, as it is intended to promote the health and welfare of South Dakota’s citizens.”

The federal judge also said the South Dakota legislation doesn’t conflict with the 2018 Farm Bill passed by Congress. He pointed to a specific sentence from the farm bill that says, “Nothing in this subsection preempts or limits any law of a State or Indian tribe that – (i) regulates the production of hemp; and (ii) is more stringent than this subchapter.”

As to Hemp Quarters 605’s contention that it could be prosecuted, Judge Schulte indicated that appeared unlikely.

“This Court has been advised the Hughes County State’s Attorney will not prosecute Plaintiff for any violations of HB1125 during the pendency of this case, but the South Dakota Office of Attorney General has made no such agreement. Counsel for Defendants further advised the Court, however, that the South Dakota Attorney General’s Office does not typically prosecute misdemeanor offenses such as those contained within HB 1125,” the judge stated.

The legislation was supported by the South Dakota Department of Health throughout the lawmaking process. The final version won approval from the Senate 31-1 and the House of Representatives agreed 69-1.

Noted Judge Schulte, “There is a strong public interest in protecting the health and welfare of the citizens of South Dakota. The decision on how best to advance that interest is left, under our system of government, to the elected individuals serving in the Legislature and the Governor. This Court must defer to those decisions unless they violate the law or the United States Constitution, which HB 1125 does not.”