Hemp Roundtable State Policy Update: Illinois, Kentucky, South Carolina, South Dakota

Hemp Roundtable State Policy Update: Illinois, Kentucky, South Carolina, South Dakota

Introduction

The US Hemp Roundtable’s latest state policy update covers legislative and regulatory activity across a wide swath of the country — with Illinois, Kentucky, Minnesota, New Jersey, Ohio, South Carolina, and South Dakota all showing meaningful hemp policy movement in the spring 2026 legislative sessions.

For B2B hemp ingredient suppliers with customers distributing nationally or regionally, tracking state-level developments is now an operational requirement. Each state that moves adds a new compliance variable to manage. Here’s a digest of the most relevant developments.


Illinois

Illinois has been active in discussing how its hemp regulatory framework aligns with the upcoming federal changes. The state has a significant hemp industry built around both cannabinoid products and industrial applications. Illinois hemp advocates have been engaged in the state legislature seeking to ensure that compliant, non-intoxicating hemp products are distinguished from the intoxicating hemp formats targeted by the federal November 12 deadline.

Illinois does not currently have an enacted statewide ban equivalent to Missouri or Ohio, but legislative activity is ongoing and the situation should be monitored by brands with significant Illinois distribution.


Kentucky

Kentucky is one of the country’s leading hemp-producing states and has historically been among the most hemp-friendly legislative environments in the country. The state’s agricultural economy has significant hemp interests across both fiber and cannabinoid production.

Kentucky’s legislative activity in spring 2026 has focused on protecting hemp farming and the compliant CBD market rather than restricting it — a posture consistent with the state’s hemp industry leadership. Kentucky lawmakers have been working to align state hemp law with the federal framework in ways that protect compliant operators while addressing concerns about intoxicating products.

For B2B hemp ingredient buyers sourcing domestically, Kentucky’s position as a hemp-supportive state makes it an important sourcing region to watch.


Minnesota

As covered in detail in our companion article this week, Minnesota’s hemp THC beverage market faces a November 12 existential challenge. The Hemp Roundtable update notes that Minnesota has been a focal point for both industry advocacy on the delay bills and state legislative activity. A Minnesota court has also blocked the state’s DTC ban on low-THC hemp edibles — a significant development for compliant brands.

Minnesota’s situation is the most complex in the country: a state with a permissive intoxicating hemp market that faces federal preemption, but also a court system that has begun protecting federally compliant, non-intoxicating hemp products.


New Jersey

New Jersey has been advancing hemp restriction legislation that would align state law with the federal November 12 standard. The state’s proximity to major East Coast markets — and its position as a distribution hub — makes its legislative posture important for brands distributing across the Northeast.

New Jersey’s legislation targets intoxicating hemp products, consistent with the national pattern. Compliant, non-intoxicating hemp products should not be affected by the enacted legislation, but brands with New Jersey distribution should verify their specific product compliance against the state’s enacted standards.


South Carolina

South Carolina is among the states advancing hemp restriction legislation in 2026. The state’s legislation targets intoxicating hemp derivatives, with the goal of aligning state enforcement with the upcoming federal standard.

For brands with Southeast distribution, South Carolina joins a growing list of Southern states — alongside Texas and others — where intoxicating hemp products face active or pending state-level restrictions.


South Dakota

South Dakota has historically taken a conservative posture toward cannabis and hemp regulation. The state is reviewing its hemp framework in light of the federal changes, with legislative activity focused on ensuring state law is aligned with the November 12 federal standard.

Brands with Midwest distribution that includes South Dakota should monitor the state’s regulatory developments as the year progresses.


The Pattern Across All States

The Hemp Roundtable update reinforces the consistent national pattern: states are not waiting for federal enforcement. They are acting on their own timelines, with varying scopes and effective dates, to restrict intoxicating hemp products. The states that have not yet enacted restrictions are actively discussing them.

For B2B hemp ingredient buyers, the practical implication is clear: there is no geography in the United States where a long-term strategy built on intoxicating hemp products is viable. The question is how quickly each state’s restrictions arrive, not whether they will.


🌿 LGH Perspective

We track state-level hemp policy developments as part of the support we provide to our B2B customers. When a new state restriction affects our customers’ distribution markets, we want to be the first call they make — because we can tell them exactly how our ingredients stand against the new state standard. If you’re building a national distribution strategy for compliant hemp products, we’d welcome a conversation about how our ingredient documentation supports your multi-state compliance.


Final Thoughts

The US Hemp Roundtable’s state policy update is essential reading for any hemp brand operating beyond a single state. The legislative activity in Illinois, Kentucky, Minnesota, New Jersey, South Carolina, and South Dakota represents the ongoing convergence of state and federal hemp policy around the November 12 standard. Brands that track these developments and adjust proactively will be the ones that maintain distribution when the dust settles.

Navigating multi-state hemp compliance? Contact Low Gravity Hemp — we can help ensure your ingredient documentation holds up in every state you operate in.