Industrial Hemp Act of 2023 This bill exempts industrial hemp production from certain inspection and testing requirements. Under current law, the hemp production program requires that all hemp production meet the same inspection and testing requirements. The bill amends the hemp production programs for a state, Indian tribe, and the Department of Agriculture to (1) establish a separate definition for industrial hemp, (2) require a procedure for hemp producers to designate the type of hemp production as industrial hemp or hemp for any other purpose, and (3) exclude industrial hemp from testing requirements. Industrial hemp producers are subject to annual visual inspections. If a producer fails a visual inspection, the producer may be (1) required to provide certain documentation on the in-field practices, and (2) subject to chemical testing on harvested material. Currently, a person with a felony conviction related to a controlled substance is prohibited from participating in the hemp production program for ten years. This bill includes an exception to allow participation by a person producing industrial hemp. However, a person who knowingly produces a crop that is inconsistent with the industrial hemp designation is prohibited from participating in the hemp production program for five years. The bill also preempts state and tribal law for the regulation of industrial hemp.