South Dakota
CANNABIS DISPENSARY REGULATIONS FOR SOUTH DAKOTA
South Dakota’s medical cannabis program has seen significant growth and development since its inception. As of September 2024, the state reports 9,952 active patient cards, indicating a substantial increase in program participation. The program allows for various cannabis products, including oils, capsules, tinctures, topical preparations, and dried leaves or flowers, though smoking remains prohibited.
The South Dakota Department of Health and Human Services oversees the program, with Emily Kerr serving as the Medical Cannabis Program Administrator. Patients can purchase up to 2.5 ounces of marijuana flower and no more than 4 grams of total THC in other cannabis products within a 30-day period. Special provisions allow cancer patients to purchase up to 6 ounces of cannabis flower.
The state has made efforts to improve accessibility, reducing the cost of obtaining or renewing a medical marijuana identification card to $25 from the previous $50 fee, effective October 1, 2022. This change aims to reduce financial barriers for patients seeking medical cannabis treatment.
For cannabis businesses, the landscape is evolving. As of June 2024, South Dakota had 78 dispensaries, 21 manufacturing sites, 40 cultivation sites, and three testing facilities. The state has recently adjusted its fee structure for medical cannabis businesses. Starting later in 2024, the annual registration certificate fee for these businesses will increase to $9,000 from the current $5,310. This change aims to ensure the program meets its financial requirements as mandated by state law.
The medical cannabis industry in South Dakota continues to adapt to regulatory changes and market demands. Businesses operating in this sector must stay informed about these evolving regulations to ensure compliance and success in the growing market.
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CANNABIS LEGALIZATION HISTORY IN SOUTH DAKOTA
South Dakota has a relatively complex and controversial history with cannabis legalization. In 2020, voters approved two separate ballot initiatives related to cannabis: one to legalize medical cannabis and another to legalize recreational cannabis. However, shortly after the election, South Dakota Governor Kristi Noem and the state’s Attorney General launched a legal challenge to the constitutional amendment that legalized recreational cannabis, arguing that it violated the state’s single-subject rule for ballot initiatives. In February 2021, a judge ruled in favor of the governor and struck down the amendment, effectively blocking the legalization of recreational cannabis in the state.
Despite this setback, the implementation of medical cannabis legalization in South Dakota has continued. In April 2021, Governor Noem signed a bill into law to establish a regulatory framework for medical cannabis, which is set to go into effect on July 1, 2021.
South Dakota’s cannabis policy has been shaped by its conservative political climate and rural character. The state has traditionally had strict drug laws, and possession of even small amounts of cannabis can lead to criminal charges and potential jail time. However, the passage of the medical cannabis initiative suggests a growing openness among South Dakota voters to cannabis legalization.
Overall, South Dakota remains a complex and somewhat uncertain landscape for cannabis legalization. While medical cannabis will soon be legal in the state, the legal challenge to the recreational cannabis amendment highlights the challenges and controversies surrounding broader cannabis legalization efforts in South Dakota.