Four Guardrails: A Path Forward on Decriminalizing Industrial Hemp 1. Reliable Enforcement a. Growth or possession of hemp is a consent to an inspection and a search. b. Agency authorization to inspect fields and loads, confiscate or seize, and destroy or dispose of unlawful hemp – without liability – and the actual costs of disposal must be paid by the grower or possessor. c. Sale or use of hemp/hemp derivatives for smoking is prohibited. d. Annual statistical report by the Attorney General to the Governor and Legislature as to how this act affects criminal drug prosecutions. 2. Responsible Regulation a. Reasonable regulations regarding licensing, reporting, and inspections that are at least compliant with USDA standards. b. Minimum land area size: contiguous outdoor 5 acres. c. Appropriate fee structure: application, annual license, and inspection. 3. Safe Transportation a. A permit is required for all transportation of hemp. b. Appropriate legal consequences for hemp transported without documentation. 4. Adequate Funding (see details on attached Exhibit A) a. Total Department of Public Safety Projected Costs: i. FTE – 9 for transportation and enforcement; and 9 seasonal inspectors ii. One-time costs: $1,157,517 iii. On-going costs: $1,044,345 b. Total SD Department of Agriculture Projected Costs: i. FTE – 3 for program management ii. One-time costs: $36,586 iii. On-going costs: $349,697 c. Total Department of Health Projected Costs: i. FTE – 2 for lab chemists ii. One-time costs: $705,700 iii. On-going costs: $198,739