South Dakota Initiated Measure 26 and Constitutional Amendment Passed – Now What?

South Dakota Initiated Measure 26 and Constitutional Amendment Passed – Now What?

On November 3rd, 2020, South Dakota voters had the opportunity to vote on Initiated Measure 26 to legalize and establish a medical marijuana program in South Dakota; and Constitutional Amendment A to legalize and establish a recreational marijuana program in South Dakota.

Initiated Measure 26 to legalize medical marijuana passed with a 69% for and 31% against; and Constitutional Amendment A to legalize recreational marijuana passed with a 53% for and 47% against.

What does this mean for South Dakota and the Marijuana Program?

Initiated Measure 26 establishes a medical marijuana program for qualifying patients with debilitating medical conditions. Patients are allowed to possess a maximum of three ounces of marijuana, plus additional marijuana products, and have the option to grow at least three plants at home. The program’s rules are established and enforced by the South Dakota Department of Health.

Highlights of the medical marijuana program include:

• Qualifying conditions for medical marijuana patients include “cachexia or wasting syndrome; severe, debilitating pain; severe nausea; seizures; or severe and persistent muscle spasms, including those characteristics of multiple sclerosis.” The Department of Health may add to this list.
• Patient reciprocity: Non-residents may use out-of-state registration cards to purchase and possess medical marijuana in South Dakota.
• Creates a licensing structure for medical marijuana businesses that are regulated by both the department and local government.

Under Initiated Measure 26, local governments (cities, townships, counties, etc.) are allowed to regulate the number and types of licenses allowed to operate within their jurisdiction. Types of licenses allowed include Cultivation, Cannabis Product Manufacturing, and Medical Cannabis Dispensary.

Constitutional Amendment A (CA-A) legalizes recreational use, possession, and distribution (up to one ounce) of marijuana for individuals 21 years old and older. The amendment requires all revenue, not including implementation costs, to be split between the state’s general fund and the public education system.

The Department of Revenue (department) shall regulate and license businesses for the cultivation, manufacture, testing, transport, delivery, and sale of marijuana in the state. The department shall accept applications for and issue the following types of licenses: Cultivator/Manufacturer; Testing; Distributors/Transport; and Retail. The department shall take the following into consideration when determining the appropriate number of licenses to issue:

• Issue enough licenses to substantially reduce the illicit production and sale of marijuana throughout the state; and
• Limit the number of licenses issued, if necessary, to prevent an undue concentration of licenses in any one municipality.
• Local government may enact ordinances or regulations governing the time, place, manner, and number of licenses operating within its jurisdiction – this includes banning the marijuana operations altogether.

If you are interested in applying for a marijuana business license in South Dakota, we encourage you to start preparing now, email us to discuss how we may be able to assist you.