MS SB2725

Authorizes cultivation, processing, and transportation of hemp containing no more than 0.3% delta-9-tetrahydrocannabinol (THC) on a dry weight basis under a state regulatory program administered by the Mississippi Department of Agriculture and Commerce.

Requires all hemp growers to obtain licenses and all hemp processors to register with the department; both must maintain records, undergo background investigations, and comply with USDA guidelines and department inspections.

Creates civil and criminal penalties for violations, including fines up to $5,000 for misdemeanor violations and imprisonment up to 5 years for felony violations involving hemp with THC exceeding 1% on a dry weight basis.

Establishes negligent violation procedures allowing growers to correct violations through corrective action plans without criminal prosecution, but imposes a five-year production ban after three negligent violations within five years.

Exempts hemp as defined and regulated under this act from Schedule I controlled substance restrictions and allows CBD products derived from hemp to be used for medical research purposes.