South Dakota Cannabis Program Updates

As more and more states transition to allow legal recreational cannabis, South Dakota remains one of the states with fewer allowances for cannabis. Medical cannabis in South Dakota became legal in 2020. South Dakota’s drug laws remain strict, as the state is the only one in the country where ingesting an illegal substance can be a felony offense. Testing positive for cannabis can also lead to a misdemeanor.

South Dakota cannabis laws and background

The Mount Rushmore state had a brief stint with decriminalization for cannabis in 1977. The law was repealed shortly after passing.

Medical cannabis advocates tried to push South Dakota cannabis laws forward in 2006 and 2010 through ballot initiatives, though both failed. Another attempt to get medical cannabis on the ballot for the 2016 election failed due to financial constraints. Again in 2017, activists attempted to push medical cannabis forward, submitting just under the required numbers of signatures to put the question on the ballot.

Finally in 2020, South Dakota voters approved medical cannabis, which went into effect the following year. On that same ballot was a measure to pass recreational cannabis, which voters also approved. But due to violations of the state’s single-subject rule for ballot measure, the approved recreational cannabis measure was dropped. Had it passed, it would have been a historic moment, as South Dakota would have been the first state to simultaneously legalize medical and recreational cannabis.

When recreational cannabis was on a ballot once again in 2022, South Dakota voters rejected the measure.

South Dakota cannabis market vs unregulated hemp

The state has seen a drop in patient cardholders in 2024, which many operators blame on the growing availability of unregulated THC-A products on the market. As of July 2024, the state has just over 13,000 registered medical card holders.

Next steps for South Dakota cannabis

Recreational cannabis will be on the ballot once again for South Dakota voters this November. This will mark the third attempt in five years to legalize recreational cannabis in the Mount Rushmore state.

This year’s proposed measure would legalize the possession and purchase of up to two ounces of cannabis. It would also allow for the cultivation of up to six plants per adult, with a cap of 12 per home.

If approved, the lawmakers will need to draft regulations for an adult-use marketplace rollout.

Are you interested in obtaining a cannabis business license in South Dakota? Call us to speak with an industry expert at 602-290-9424.

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