What to Know About South Dakota’s Upcoming Cannabis Ballot Measure

Recreational cannabis is on the ballot in South Dakota this November for the third consecutive election. As the vote approaches, aspiring entrepreneurs should prepare now with a business plan to streamline efforts and maximize the chances of obtaining a cannabis license in South Dakota. Here’s what you need to know if  Measure 29 passes.

South Dakota cannabis on the ballot

The push to legalize cannabis in South Dakota is not new to the state. In fact, voters approved recreational marijuana in 2020, but it was later struck down by the courts because the measure violated the state’s single-subject rule. Two years later, voters rejected a similar measure.

Now, we’re looking at the possibility of adult-use cannabis in South Dakota for the third consecutive election cycle in a row. Measure 29 will legalize the recreational use, possession, and distribution of cannabis to adults 21 years and older. The proposed measure would not affect current hemp laws or the state’s existing medical marijuana program.

Will South Dakota voters approve recreational cannabis?

As the Cannabis Business Advisors told Business of Cannabis, we predict that voters will approve Measure 29. Voters have approved and rejected recreational cannabis in South Dakota over the past two election cycles. The measure failed by an approximate 5% margin in 2022, and efforts to educate voters about this new measure have been prominent.

However, recent polling tells a different story. With just two weeks to go, the most recent polling from Emerson College/KELOLAND/The Hill, indicated that about 50% of voters are opposed to the measure, whereas about 45% are in favor. About 5% of South Dakota voters are undecided.

Advocates for and against cannabis in South Dakota have spent more than $1 million dollars collectively to garner support for their agendas.

South Dakota cannabis licensing

Should voters approve Measure 29, the rules for licensing will follow. Since the state already has a medical cannabis licensing structure in place, we can use the current model as a guide for what to expect with recreational cannabis adoption.

How to start a cannabis business in South Dakota

Following the current structure for opening a medical cannabis business in South Dakota, here’s what we expect will be necessary for those looking to start an adult-use marijuana business if Measure 29 passes:

Application Requirements:

• Management Plan
• Site Plan
• Operating Days and Hours
• Cultivation Procedures (for cultivation operations)
• Workplace Safety Plan
• Security Plan
• Additional Precautions/Prevention of Diversion
• Waste Management Plan
• Wastewater Plan
• Pre-Employment Screening Procedures
• Control of Access to Site
• Conflict of Interest and Confidentiality Policies (for testing facilities)
• Plan for Testing to Be Performed (for testing facilities)
• Sample Collection Procedures (for testing facilities)
• Accreditation and Quality Assurance (for testing facilities)
• Manufacturing Procedures (for product manufacturers)
• Marketing Plan (for dispensaries)

Final thoughts

We will know if South Dakotans are ready for recreational cannabis shortly. The Cannabis Business Advisors will keep a close eye on the race and promptly provide resources for opening a South Dakota cannabis business as soon as lawmakers establish the next steps.

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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