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SOUTH DAKOTA

South Dakota Program Overview (April 28, 2022)

Programs

An Initiated Measure (26) to Legalize Marijuana for Medical Use (2020)
Constitutional Amendment A: An Amendment to the South Dakota Constitution to legalize, regulate, and tax marijuana; and to require the Legislature to pass laws regarding hemp as well as laws ensuring access to marijuana for medical use (2020)

Dispensaries

A list of certified establishments is included here. A list of medical license types is included below:

Cannabis product manufacturing facility
Cannabis testing facility
Cultivation facility
Medical cannabis dispensary

South Dakota’s adult use program that was approved in 2020 via Constitutional Amendment A, was delayed in court proceedings by the South Dakota Supreme Court on the basis that the amendment was unconstitutional because it covered more than one (1) subject. On February 8, 2021, Circuit Judge Christina Klinger ruled that Amendment A violated the state’s single-subject rule. On November 24, 2021, the South Dakota Supreme Court ruled in favor of this decision thus making adult-use legalization null.

As of July 1, 2021, persons may legally posses up to one (1) ounce of marijuana with no more than eight (8) grams of that being concentrate.

Geography

Regulatory Agencies

South Dakota Department of Health

South Dakota Banking Stats & Guidance (April 28, 2022)

Banks: 58

Credit Unions: 35

South Dakota Division of Banking Memorandum RE: Medical Cannabis (November 18, 2021)

Prior to offering financial services to MRB’s, your institution must have appropriate risk management practices in place, including:
A strong understanding of applicable state and federal laws and regulations
A risk assessment that considers potential impacts to all areas of your institution
An effective audit program
Policies and procedures to effectively guide staff
A training program for staff and management
Management Information Systems to monitor trends and activities, and
A robust BSA/AML program that ensures:
- Appropriate methods exist for identifying and monitoring MRB’s
- Appropriate and timely monitoring for, and filing of, Suspicious Activity Reports and Currency Transaction Reports
- Customers have obtained proper state and local licensure
- Customers possess and maintain necessary records

“Even if your institution doesn’t plan to offer financial services to Medical Cannabis growers or dispensaries, it is possible you will have other customers indirectly involved with Medical Cannabis, such as contractors, commercial landlords, and transportation companies. Your institution could be providing indirect services to a MRB in these situations, and you should have policies and procedures in place to guide staff and identify, monitor, and report on these customers, as appropriate.”

https://dlr.sd.gov/banking/legal/documents/07-016-medical_cannibas_memo.pdf

Medical Program Details (April 28, 2022)

Cardholders and non-resident cardholders may possess up to:

Three (3) ounces of marijuana flower; or its equivalent below
- 1 ounce of concentrated cannabis in smokable form = 8 grams
- 1 ounce contained in vaporizer pens or cartridges = 8 grams
- 1 fluid ounce in oils in oral dosage syringe or capsule form = 5 grams
- 1 ounce in edibles (excluding oils) = 800 milligrams of THC
- 1 ounce of topical (ointment, cream or lotion) = 12 fluid ounces
- 1 ounce of tropical (dried plant material or powder) = 1 ounce
- 1 ounce of transdermal patched = 800 milligrams of THC
Patients are authorized to cultivate 3 plants with a practitioners recommendation. More than 3 plants is allowed with approval from practitioner.

Caregivers must be at least 21 and are authorized to assist no more than five (5) qualifying patients with the medical use of cannabis, unless the designated caregiver’s qualifying patients each reside in or are admitted to a health care facility or residential care facility where the designated caregiver is employed.

Persons designated as a caregiver must submit to the Division of Criminal Investigation once every two years:
- A photocopy of an unexpired form of identification acceptable for voter identification pursuant to SDCL 12-18-6.1.
- A Division of Criminal Investigation fingerprint card processed by a local law enforcement agency.
- An authorization and release form releasing the results of a state-only background check to the department, and payment of any fee charged by the Division of Criminal Investigation.

Medical marijuana license and patient/caregiver applications can be viewed here.