• The 2018 United States Farm Bill has legalized the cultivation of industrial hemp not exceeding 0.3% tetrahydrocannabinol (THC). Consuming THC in higher doses may cause psychoactive effects(1).
  • In 2019, the State of South Dakota passed Senate Bill 95, classifying cannabidiol as a Schedule IV controlled substance(2). Unauthorized possession of such substances in South Dakota is a felony(3).
  • In March 2020, the state government passed House Bill 1008, legalizing industrial hemp cultivation and the processing of industrial hemp not exceeding 0.3% THC(4). The bill did not mention if the legalization includes CBD oil.
  • In 2019, state lawmakers introduced House Bill 1191 to legalize industrial hemp cultivation in South Dakota. However, the bill was vetoed following review(5).
  • In South Dakota, possessing CBD oil is a felony, while inhabiting a place where controlled substances are illegally stored or used is a misdemeanor(6). Smoking and inhaling hemp products, including vape pens and oils, is also prohibited in the state(7).

While cannabidiol (CBD) oil products are widely available in the United States, the legality of commercial CBD products remains a question. 

It is also unclear if CBD oil may be legally transported across state lines due to varying regulations. But it cannot be recommended at this time.

In South Dakota, CBD laws were stricter compared to other states. However, legislative changes have been made to accommodate the Farm Bill

In December 2018, the United States Farm Bill legalized the cultivation and processing of industrial hemp(8). The federal law mandated that hemp growers follow regulations imposed by the U.S. Department of Agriculture (USDA)(9)

The Farm Bill also removed industrial hemp from the definition of marijuana in the  Controlled Substances Act(10).

Hemp-derived CBD products may be legally produced and sold in the United States, provided that manufacturers maintain the legal limit of THC content.

The legalization of hemp-derivatives does not cover CBD products derived from marijuana plants or CBD products that exceed 0.3% THC.

The Drug Enforcement Administration (DEA) released a ruling after implementing the 2018 Agriculture Improvement Act, which was integrated into the Farm Bill(11)

The term “hemp” means Cannabis sativa (and any part of it) with a THC concentration not exceeding 0.3% on a dry weight basis. Any cannabis products that are not parallel with the definition of “hemp” is considered a Schedule I controlled substance(12).

Unless one has a qualifying medical condition and state government permission, possessing a marijuana-derived CBD oil or CBD oil exceeding 0.3% THC is considered a drug-related offense(13).

The legalization of hemp-derived CBD products is not absolute. The federal government has tasked the United States Food and Drug Administration (FDA) to regulate how the commercial CBD products may be marketed and sold(14).

According to the FDA, CBD products are prohibited from being marketed as dietary supplements or pharmaceutical drugs. CBD companies are also forbidden from using health claims to sell their products(15).

Moreover, food manufacturers are forbidden to use CBD as a food additive.

FDA denotes that not all CBD products are legal. Food or beverages infused with CBD are illegal according to FDA regulations. 

South Dakota CBD Laws

After the Farm Bill was signed in December 2019(16), South Dakota refused to make legislative changes to align with federal law.

In 2019, South Dakota lawmakers moved to legalize industrial hemp cultivation through House Bill 1191. After several sessions reviewing the text, the bill was vetoed by Governor Kristi Noem in March 2019(17).

The veto was followed by an announcement from Attorney General Jason Ravnsborg that industrial hemp and all forms of CBD oil are illegal according to state law(18).

The state’s Attorney General added that the law made an exception for Epidiolex, an anti-epileptic drug. 

Epidiolex is the first FDA-approved drug containing CBD as an active ingredient. The drug, which is not available as an over-the-counter medication, is used to treat children with rare forms of childhood epilepsy(19)

On March 12, 2019, Senate Bill 95 moved cannabidiol (CBD) from Schedule I to Schedule IV in drug classifications(20)

According to the DEA, Schedule I drugs have a high potential for being abused, while Schedule IV drugs have a lower possibility of being abused(21)

According to Chapters 22 to 24 of South Dakota’s codified law, the term “licensed practitioners” includes a doctor of medicine, licensed pharmacist, or a physician’s assistant licensed to practice his or her profession(22)

The South Dakota legislature specified that possessing CBD oil in the State of South Dakota is a felony. Moreover, inhabiting a place where controlled substances are illegally stored or used is a misdemeanor(23)

South Dakota Legalizes Industrial Hemp

On March 13, 2020, the state government enrolled House Bill (HB) 1008, which legalized the growth, production, and transportation of industrial hemp(24).

The bill indicated that industrial hemp not exceeding 0.3% THC may be cultivated by licensed businesses or individuals in South Dakota. 

CBD Licensing Requirements

According to the new South Dakota law, the cultivation of industrial hemp is legal(25)

House Bill 1008 stated that any person wishing to purchase, grow, and process industrial hemp must apply for a USDA license. 

The application form must be submitted within 60 days after it has been issued by the USDA. Applicants with criminal backgrounds are subject to denial.

Moreover, the bill specified that industrial hemp farms must not exceed more than five outdoor acres(26).

Since the industrial hemp legalization, the state government has not imposed licensing requirements for the distribution and sale of hemp-derived CBD products.

Testing Requirements

According to HB 1008, growers must submit a crop sample for laboratory testing accredited by the Drug Enforcement Agency. If the sample has been tested to contain more than 0.3% THC and not more than 0.5%, the licensee may request a retesting(27).

If the crop sample contains more than 0.3% upon retesting, the entire lot from which the sample was retrieved must be destroyed by the licensee. 

Buying CBD Legally

The legality status of hemp-derived CBD oil in South Dakota is unclear. 

HB 1008 did not indicate if the term “hemp processing” covers CBD oil products. 

The state government has not made amendments to previously passed bills, such as Senate Bill 95, which classified CBD as a Schedule IV controlled substance(28).

The state legislature indicates that unauthorized distribution, manufacture, or possession of a Schedule IV controlled substance is a class 4 felony(29)

However, the state law makes an exception for Schedule IV controlled substances when it is directly dispensed or prescribed by a licensed practitioner. 

Thus, buying CBD in South Dakota must be approached with caution. 

HB 1008 specified that smoking or inhaling industrial hemp is prohibited in the state. This prohibition makes CBD vape pens and CBD vape oils illegal. The bill also indicated that violators are subject to a Class I misdemeanor(30)

How to Choose Which CBD Products to Buy

South Dakota has not yet implemented a CBD program. Therefore, caution is advised when buying CBD in the state. 

When looking for high-quality CBD oil in the United States, consumers must look for CBD companies that practice truthful labeling and transparency. 

The certificate of analysis (COA) is a third-party laboratory test result that indicates the cannabinoid concentration in the product. 

The COA also indicates if the product is free from harmful substances, such as pesticides, heavy metals, and other toxic chemicals. 

Consumers may refer to the Better Business Bureau (BBB) to evaluate the CBD company’s status. 

Customers may file product complaints through BBB’s official website. Thus, customer complaints impact CBD companies’ ratings(31).

Where to Buy CBD Products Legally

Despite South Dakota’s strict laws on CBD oil, CBD stores are operating in the state.

According to the BBB, a CBD store called the Hemporium Boutique is currently operating in Rapid City(32)

The store sells CBD tinctures, CBD topical creams, CBD personal care products, and CBD oil tinctures for pets(33).

Your CBD Store, located at 1612 W 41st Street Suite A, is also operating in Sioux Falls, South Dakota(34). However, the store has not yet been rated by the BBB.

Reading Labels and Packaging

Before buying CBD products, consumers must study the information indicated on the CBD product label. 

Many CBD brands claim that their products are of high quality. Still, it is the consumer’s responsibility to check if the concentration on the label is correct.

When shopping for CBD oil, individuals must check what CBD oil type is contained in the product. The label must indicate if the product is full-spectrum, broad-spectrum, or CBD isolate.

CBD concentration is measured by milligrams per millimeter (mg/mL). First-time CBD users must opt for products with lower CBD concentration. 

Once one becomes accustomed to taking CBD, they may opt for a more potent variant.

Some CBD companies have made their COAs accessible by printing QR codes or barcodes on the label. Consumers may quickly check the COA before buying the product. 

Batch codes or ID codes help consumers verify if the COA shared by the brand is updated. Every COA must contain a product name, batch code, and date of testing.

Understanding CBD

What Is CBD Oil?

Cannabidiol (CBD) is a phytocannabinoid predominantly present in Cannabis sativa (hemp and marijuana). 

Cannabis sativa is rich in phytocannabinoids, such as CBD, THC, cannabichromene (CBC), cannabigerol (CBG), and cannabinol (CBN).

Commercial CBD oil products in the United States are derived from industrial hemp plants containing 0.3% THC

The phytocannabinoids are extracted using different methods, including CO2 extraction and solvent extraction.

After extraction, the compounds are developed into different CBD products, such as CBD tinctures, CBD gummies, CBD topical creams, or CBD vape oils.

CBD products may come from different varieties of cannabis plants (hemp or marijuana). Some products may exceed the legal limit of tetrahydrocannabinol (THC), the cannabinoid that causes psychoactive effects when consumed.

Currently, there are three types of hemp-derived CBD products in the market. 

Full-spectrum CBD oil contains all the phytocannabinoids, terpenes, and flavonoids found in hemp plants. Consuming full-spectrum CBD oil provides the “entourage effect.”

The entourage effect insinuates that the benefits received from the cannabinoids are more significant when taken together than individually. 

Consumers who prefer not taking THC may opt for broad-spectrum CBD oil. Broad-spectrum may contain one or more cannabinoids, including CBD.

CBD isolate contains pure CBD. This product often comes in a powder form, which may be added to oil for easy consumption.

What Are the Benefits of CBD Oil?

A study shared by The Permanente Journal has shown that consuming CBD may reduce anxiety stores and improve sleep scores(35).

Meanwhile, a 2019 review posted in Molecules evaluated CBD’s potential to reduce convulsions in treatment-resistant epilepsy(36).

Cannabinoids, such as CBD, have been attributed to providing pain-relieving properties. A study shared by Therapeutics and Clinical Risk Management evaluated CBD’s value in helping relieve various pain conditions(37).

More definitive studies are needed to verify CBD’s clinical value in treating such conditions. It is recommended that individuals consult with a licensed physician before taking CBD oil.

Furthermore, CBD has been reported to cause side effects, such as dry mouth, diarrhea, drowsiness, and appetite and weight changes(38).


Enacted on March 13, 2020, House Bill 1008 allows the cultivation and processing of industrial hemp(39). 

However, South Dakota has yet to launch a hemp-derived CBD program. Moreover, existing laws banning all forms of CBD have not been amended.

Thus, consumers in South Dakota must practice caution when buying CBD products.

Individuals intending to buy CBD oil may check with their local county law enforcement office if CBD oil is permitted. 

Moreover, consumers must always look for an updated certificate of analysis to determine if the product is safe for human or animal consumption.

Disclaimer: The findings shared in this article is based on information retrieved on November 12, 2020. The legal status and regulations of CBD may change without notice. Readers must not treat the contents of this article as legal advice. 

  1. The US Food and Drug Administration. Hemp Production and the 2018 Farm Bill. Retrieved from https://www.fda.gov/news-events/congressional-testimony/hemp-production-and-2018-farm-bill-07252019
  2. South Dakota Legislature. Senate Bill 95. Retrieved from https://sdlegislature.gov/#/Session/Bill/8052/45618
  3. South Dakota Legislature. Codified Laws. Retrieved from https://sdlegislature.gov/#/Statutes/Codified_Laws/2047754
  4. South Dakota Legislature. House Bill 1008. Retrieved from https://sdlegislature.gov/#/Session/Bill/11477/70024
  5. South Dakota Legislature. House Bill 1191. Retrieved from https://sdlegislature.gov/#/Session/Bill/9905
  6. South Dakota Legislature. Codified Laws. Op cit.
  7. South Dakota Legislature. House Bill 1008. Op cit.
  8. The US Food and Drug Administration. Hemp Production and the 2018 Farm Bill. Op cit.
  9. US Department of Agriculture. Agriculture Marketing Services. Retrieved from https://www.ams.usda.gov/rules-regulations/hemp/information-producers
  10. The US Food and Drug Administration. Hemp Production and the 2018 Farm Bill. Op cit.
  11. Drug Enforcement Administration. Implementation of the Agriculture Improvement Act. Retrieved from https://www.deadiversion.usdoj.gov/fed_regs/rules/2020/fr0821.htm
  12. Ibid.
  13. Drug Enforcement Administration. Title 21 United States Code (USC) Controlled Substances Act. Retrieved from https://www.deadiversion.usdoj.gov/21cfr/21usc/844.htm
  14. US Food and Drug Administration. FDA Regulation of Cannabis and Cannabis-Derived Products, Including Cannabidiol (CBD). Retrieved from https://www.fda.gov/news-events/public-health-focus/fda-regulation-cannabis-and-cannabis-derived-products-including-cannabidiol-cbd
  15. Ibid.
  16. The US Food and Drug Administration. Hemp Production and the 2018 Farm Bill. Op cit.
  17. South Dakota Legislature. House Bill 1191. Op cit.
  18. South Dakota Legislature. Attorney General Ravnsborg Clarifies Questions Regarding Industrial Hemp And CBD (Cannabidiol) Oil. Retrieved from https://atg.sd.gov/OurOffice/Media/pressreleasesdetail.aspx?id=2167
  19. FDA Approves First Drug Comprised of an Active Ingredient Derived from Marijuana to Treat Rare, Severe Forms of Epilepsy. Retrieved from https://www.fda.gov/news-events/press-announcements/fda-approves-first-drug-comprised-active-ingredient-derived-marijuana-treat-rare-severe-forms
  20. South Dakota Legislature. Senate Bill 95. Retrieved from  https://sdlegislature.gov/#/Session/Bill/8052/45618
  21. Drug Enforcement Administration. Drug Scheduling. Retrieved from https://www.dea.gov/drug-scheduling
  22. South Dakota Legislature. Codified Laws. Op cit.
  23. Ibid.
  24. South Dakota Legislature. House Bill 1008. Op cit.
  25. Ibid.
  26. Ibid.
  27. Ibid.
  28. South Dakota Legislature. Senate Bill 95. Op cit.
  29. South Dakota Legislature. Codified Laws. Op cit.
  30. South Dakota Legislature. House Bill 1008. Op cit.
  31. Better Business Bureau. Retrieved from https://www.bbb.org/us
  32. Better Business Bureau. Accredited CBD Oil Stores. Retrieved from https://www.bbb.org/us/sd/rapid-city/profile/hemp-products/hemporium-boutique-0714-300176490
  33. Ibid.
  34. Your CBD Store. Retrieved from https://cbdrx4u.com/find-us/south-dakota/sioux-falls
  35. Shannon, S., Lewis, N., Lee, H., & Hughes, S. (2019). Cannabidiol in Anxiety and Sleep: A Large Case Series. The Permanente journal, 23, 18–041. https://doi.org/10.7812/TPP/18-041
  36. Silvestro, S., Mammana, S., Cavalli, E., Bramanti, P., & Mazzon, E. (2019). Use of Cannabidiol in the Treatment of Epilepsy: Efficacy and Security in Clinical Trials. Molecules (Basel, Switzerland), 24(8), 1459. https://doi.org/10.3390/molecules24081459
  37. Russo E. B. (2008). Cannabinoids in the management of difficult to treat pain. Therapeutics and clinical risk management, 4(1), 245–259. https://doi.org/10.2147/tcrm.s1928
  38. Iffland, K., & Grotenhermen, F. (2017). An Update on Safety and Side Effects of Cannabidiol: A Review of Clinical Data and Relevant Animal Studies. Cannabis and cannabinoid research, 2(1), 139–154. https://doi.org/10.1089/can.2016.0034
  39. South Dakota Legislature. House Bill 1008. Op cit.
CBD Clinicals is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Learn more