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South Dakota

CANNABIS DISPENSARY REGULATIONS FOR SOUTH DAKOTA

South Dakota operates a regulated medical cannabis market. The South Dakota Department of Health oversees patient registration, business licensing, compliance, and enforcement through its Medical Cannabis Program.

Recreational cannabis remains illegal. Only registered patients, caregivers, and qualifying nonresident cardholders may purchase cannabis from licensed dispensaries.

Licensing and Dispensary Operations

South Dakota issues medical cannabis establishment registration certificates for:

  • Dispensaries
  • Cultivation facilities
  • Manufacturing facilities
  • Testing facilities

The state maintains an online list of licensed medical cannabis establishments. As of August 2026, the list included more than 60 dispensary locations across the state.

Dispensaries may sell cannabis only to registered patients, caregivers, and qualifying nonresident cardholders. Before completing a sale, the dispensary must verify the customer’s registration and government-issued photo identification. It must also confirm the customer’s remaining purchase allowance through the state tracking system.

Local approval is also important. Every establishment applicant must obtain confirmation that its proposed location and operations comply with applicable municipal or county zoning rules.

Products and Consumption Rules

South Dakota permits medical cannabis flower and several manufactured product categories. These include:

  • Concentrates and extracts
  • Edible products
  • Beverages
  • Oils and tinctures
  • Topical products and ointments

The original draft incorrectly stated that smoking cannabis is prohibited. South Dakota law allows registered adults to smoke or vape medical cannabis in private settings where the property owner permits it.

However, smoking or vaping cannabis is prohibited:

  • On public transportation
  • In public places
  • In places open to the public
  • By anyone younger than 21

Cannabis use is also prohibited in correctional facilities. Driving or performing safety-sensitive work while impaired remains illegal. These restrictions appear in South Dakota Codified Law Chapter 34-20G.

Patient Registration and Purchase Limits

Patients must receive a written certification from an authorized healthcare practitioner before applying for a registry identification card. South Dakota permits physicians, physician assistants, and advanced practice registered nurses with prescribing authority to provide certifications.

The standard patient card costs $75. Qualifying low-income applicants may receive a card for $20. Renewal fees are also required.

South Dakota uses a rolling purchase limit. A patient or caregiver may purchase up to three ounces of cannabis flower during a 14-day period. Each purchase becomes available again 14 days after the transaction date.

The Department of Health explains this system on its medical cannabis purchase limits page.

The 2.5-ounce flower limit, four-gram THC limit, and higher cancer-patient allowance in the original draft do not apply to South Dakota.

Medical Home Cultivation

Registered patients may apply for permission to cultivate cannabis at home. An approved cardholder may grow:

  • Up to two flowering cannabis plants
  • Up to two nonflowering cannabis plants

The home-cultivation designation costs an additional $20. Plants must be grown at the approved location and handled according to state security requirements.

Therefore, South Dakota does not impose a complete home-cultivation ban. However, cultivation without the required authorization remains illegal.

Business Fees and Compliance

The annual state registration fee for each medical cannabis establishment is $9,000. Businesses may also face local licensing, zoning, inspection, and operating costs.

Application materials are available through the Department of Health’s medical cannabis establishment portal.

Licensed businesses must comply with rules covering:

  • Seed-to-sale inventory tracking
  • Product testing
  • Packaging and labeling
  • Security and surveillance
  • Transportation
  • Recordkeeping
  • Inspections
  • Product recalls

Manufacturers producing cannabis edibles must also obtain the appropriate food-service license. Cannabis cannot be transported across state lines for retail sale.

Federal cannabis prohibition continues to create banking and payment challenges for South Dakota operators. Therefore, dispensaries may need payment services built specifically for regulated cannabis businesses.

Our guide to payment stability and approval speed explains why underwriting, transparency, and redundancy matter when choosing a payment provider.

Learn more about PayRio’s cannabis payment solutions or contact PayRio to discuss your dispensary’s payment needs.

CANNABIS LEGALIZATION HISTORY IN SOUTH DAKOTA

South Dakota voters approved two cannabis measures in November 2020.

Initiated Measure 26 legalized medical cannabis. The measure became South Dakota Codified Law Chapter 34-20G and took effect on July 1, 2021. The state then created its patient registry and commercial licensing system.

Voters also approved Constitutional Amendment A, which sought to legalize adult-use cannabis. However, state officials challenged the measure. In November 2021, the South Dakota Supreme Court ruled that Amendment A violated the state constitution’s single-subject requirement and was invalid. The decision is available through the South Dakota Unified Judicial System.

Adult-use advocates later returned to the ballot. In November 2024, voters rejected Initiated Measure 29. The measure received 189,824 yes votes and 237,129 no votes, according to the South Dakota Secretary of State’s election results.

As a result, South Dakota continues to permit medical cannabis while prohibiting recreational sales and possession.

CANNABIS LEGALIZATION STATUS IN SOUTH DAKOTA

Current Status: Legal for medical use only

South Dakota law currently allows:

  • Registered patients to purchase cannabis from licensed dispensaries
  • Qualified nonresident cardholders to purchase medical cannabis
  • Possession within the state’s medical cannabis limits
  • Authorized home cultivation of two flowering and two nonflowering plants
  • Licensed cultivation, manufacturing, testing, and retail distribution

Recreational cannabis remains illegal. Adults without medical authorization cannot legally purchase or possess marijuana under state law.

South Dakota’s medical cannabis program continues to expand. In August 2026, the program reported 19,821 registered patients, 620 caregivers, and 211 participating practitioners.

LAST UPDATED 9/8/2026 – Laws can be revised and updated frequently, so please keep this in mind.