States reviewing hemp laws in wake of changes at federal level that removed production barriers

Enacted at the end of last year, the new law legalizes industrial hemp (it must have a THC concentration level of below 0.3 percent), allowing for market-scale  cultivation and the interstate sale of products. In another important change for producers, the new farm bill allows hemp to be included in federal crop insurance.What is the role for states?Some may choose to serve as the primary regulatory authority of hemp production, by establishing a licensing system that conforms with federal guidelines and that gets approved by the U.S. Department of Agriculture. This is the purpose of legislation introduced in early 2019 in states such as North Dakota (HB 1349), Minnesota (HB 303) and Indiana (HB 1385 and SB 516).To conform with federal guidelines, any state-run licensing programs must include restrictions on locations, THC testing procedures, and plans for crop disposal and farm inspection. In states that don’t request to have their own regulatory and licensing programs, hemp growers will be able to apply directly to the USDA. But to grow hemp legally, growers must also live in a state that permits production. In states such as Iowa, Ohio and South Dakota, statutory language does not differentiate marijuana and hemp. As a result, hemp production is illegal.