I’ve had this happen a few times over 40 years of fishing usually with live bait) and have simply cut the line as close as possible to the turtle.
The hook will rot away over time.
Don’t use live bait much anymore anyway.
Yes, some states require a small game or trapping license for turtles.
I caught soft shelled turtles when I grew up in Florida. They were delicious. Caught snapping turtles and small alligators too. Got bitten once by each. But I always got them unhooked and released. Even the ones that bit me. That happened back when I was younger than 10 years old.