A provision in SB39 removes legal protection for delta-8, delta-10, THC-O, HHC, and THCP products—effective in 2027.
Most South Dakota manufacturers producing hemp-derived cannabinoid products don't realize that a provision buried in SB39 could eliminate their legal standing to operate those product lines in less than two years.
Here's what's happening: South Dakota's new industrial hemp law, SB39, narrows the legal definition of what counts as an "industrial hemp product." Specifically, Section 1 (Page 1) excludes five chemically derived cannabinoids from that definition: delta-8-THC, delta-10-THC, THC-O, HHC, and THCP. Starting January 1, 2027, products containing these compounds will no longer qualify for protection under South Dakota's hemp framework.
If your operation manufactures, sells, or distributes products made from any of those five cannabinoids, you currently operate under the assumption that you're compliant with state hemp law. That assumption ends January 1, 2027. On that date, your products lose their legal cover. Without it, you face potential regulatory action or criminal exposure—even if you're currently operating legally.
This isn't a gray area that might get clarified later. The law is explicit: these compounds are excluded from the hemp product definition. That means they fall outside the regulatory framework that currently protects hemp businesses.
If you produce any products containing delta-8-THC, delta-10-THC, THC-O, HHC, or THCP, you have three options:
Reformulate: Switch to cannabinoids that remain legal under the hemp framework (like CBD or traditional delta-9-THC products that comply with federal limits).
Exit the product line: Discontinue those products before the effective date.
Seek alternative legal pathways: Explore whether your products might qualify under different state or federal regulations—though this is complex and requires legal guidance specific to your operation.
The timeline matters. January 1, 2027 gives you roughly two years to make changes. If you're currently investing in inventory, equipment, or marketing for these products, that deadline should factor into your decisions now.
Review your current product portfolio against the five excluded cannabinoids. If any of your products contain delta-8-THC, delta-10-THC, THC-O, HHC, or THCP, document that now. Then talk to your legal counsel or industry association about your options—reformulation timelines, market viability of alternatives, and any compliance steps you should take before 2027.
This isn't a crisis if you act now. But waiting until late 2026 to make changes leaves you scrambling.
Source: South Dakota SB39, Section 1 (Page 1); effective date January 1, 2027 per Section 22.