On page 2, line 20, after "Act" delete "may" and insert ", or an employee of the licensed applicant, may intentionally".

On page 3, line 2, after "activities," insert "before initial licensure and any subsequent license renewal,".

On page 3, line 3, delete "for initial licensure and each license renewal thereafter" and insert "and each of the applicant's employees who have access to and control over industrial hemp in the ordinary course of their employment" .

On page 3, line 5, after "." insert "The department shall require any of the applicant's employees covered by this section, hired by the applicant subsequent to licensure, to submit to the same criminal history record check at the time the employee is hired.".

On page 4, delete lines 15 and 16, insert:

"documentation indicating compliance with the following, as applicable:

(1) That the seeds planted were of a type and variety certified to have no more than three-tenths of one percent tetrahydrocannabinol;

(2) That the industrial hemp harvested contains a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis at the time of harvest;

(3) That the industrial hemp processed contains a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent at the time of receipt of the raw material to be processed; and

(4) That the product resulting from the processing of industrial hemp contains a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent at the time of shipment or sale by the processor.".

On page 5, delete line 2, and insert "The following state agencies shall promulgate rules, pursuant to chapter 1-26, in the following areas:".

On page 5, line 8, delete "Establish an inspection fee" and insert "The Department of Agriculture shall establish inspection, testing, licensure, and other fees under this Act, not to exceed one thousand dollars, in each instance".

(4) The Department of Agriculture shall establish certification criteria and testing procedures for industrial hemp seed;

(5) The Department of Public Safety shall establish requirements for licensure of transportation of industrial hemp in and through South Dakota, whether by a licensed grower, producer, or processor or by persons contracting for such transportation, provided that all such standards shall be consistent with federal law, including federal laws regarding industrial hemp and interstate commerce of industrial hemp; and

(6) The Department of Health shall establish rules for the revocation of a license to produce or process industrial hemp under the circumstances set forth in section 17 of this Act".

On page 5, line 11, after "Agriculture" insert ", in consultation with the Department of Public Safety and the Department of Health,".

On page 5, after line 24, insert:

" Section 14. That the code be amended by adding a NEW SECTION to read:

The transportation of industrial hemp in South Dakota is prohibited, except for the following:

(1) Persons licensed pursuant to this Act and employees of such licensees under section 5 of this Act;

(2) Persons authorized or licensed for transportation of industrial hemp under this Act, including persons authorized for interstate transportation of industrial hemp by a valid state or federal authority;

(5) State or federal government and law enforcement officials in the ordinary conduct of their office.

Section 15. That the code be amended by adding a NEW SECTION to read:

Except for willful or wanton misconduct, a law enforcement officer described in this Act, or a surety on his or her official bond, may not be liable for any damages claimed to have been incurred by reason of any damages allegedly arising from the regulation of industrial hemp under this Act, including loss of time, shrinkage, or related damages.

Section 16. That the code be amended by adding a NEW SECTION to read:

Notwithstanding any other provision of law, a person licensed to grow industrial hemp under this Act shall grow the plant only in a field open to the air above throughout the year.

Section 17. That the code be amended by adding a NEW SECTION to read:

As used in section 3 of this Act, the term, cannabinoids, includes cannabidiol, which shall be defined for purposes of this section as a processed cannabinoid product derived from industrial hemp with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent. A person licensed under this Act shall be permitted to produce or process cannabidiol, provided:

(1) The licensee complies with all provisions of this Act and regulations adopted pursuant to the Act; and

(2) The United States Food and Drug Administration does not enact any new regulations or issue official decisions, within its established jurisdiction over food and drugs under the federal Food, Drug & Cosmetics Act, directly prohibiting the introduction into interstate commerce of the specific cannabidiol products produced or processed by the licensee.

Section 18. That the code be amended by adding a NEW SECTION to read:

The Department of Health shall revoke the license of any licensee under this Act if the licensee produces or processes one or more specific cannabidiol products under this section that have been directly prohibited for introduction into interstate commerce by new regulations adopted, or official decisions issued, by the Food & Drug Administration. Before revocation of a license under this section, the licensee shall be afforded:

(1) Thirty days in which to cease production or processing of the specific cannabidiol product or products directly prohibited by the Food & Drug Administration; and

In the event the licensee demonstrates that he or she has ceased production or processing of the specific cannabidiol product or products directly prohibited by the Food & Drug Administration within thirty days of written notice from the Department of Health, the licensee shall be authorized to continue the production or processing of any industrial hemp products for which it has been licensed under this Act and which have not been directly prohibited by the Food & Drug Administration.".