South Dakota Marijuana Business Licenses
Status: In South Dakota, individuals 21+ may possess and use marijuana, and registered patients may possess and use medical marijuana. State licensed businesses may grow, process, transport, and dispense marijuana.
| CBD Program | Medical Program | Recreational Program | Are Applications Open? |
| Legal | Not legal | Not legal | closed |
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Number of South Dakota Marijuana Business Licenses Licenses Available
| Dispensaries | Cultivation | Manufacturing/Processing | Transportation |
| 0 | 0 | 0 | 0 |
You can read the full text of the South Dakota Marijuana Business Licenses law at: sdlegislature.gov
South Dakota CBD Program License Guidelines
Current South Dakota law makes industrial hemp illegal and all forms of CBD oil illegal. The only exception is the prescription drug Epidiolex, which was recognized by the 2019 legislature as a controlled substance under Senate Bill 22. Governor Kristi Noem signed that bill into law on February 19, 2019, which included an emergency clause to have the law go into effect immediately. This action leaves any other use or possession of CBD oil as a violation of state law.
South Dakota is currently not accepting applications to license marijuana businesses. To get ahead of the game and prepare for your marijuana business in the event the state legalizes marijuana businesses, review the resources below.
RECOMMENDED SOUTH DAKOTA MARIJUANA BUSINESS PLANS FOR MARIJUANA BUSINESS LICENSE:
- South Dakota Application Guide & Checklist
- South Dakota Marijuana Business Plan Package
- Business & Operations Plan Template
- Cultivation Plan Template
- Manufacturing/Processing Plan Template
- Environmental Plan Template
- Financial Plan Template
- Fire Safety Plan Template
- Inventory Control Plan Template
- Patient Education Plan Template
- Patient Recordkeeping Plan Template
- Product Safety Plan Template
- Security Plan Template
- Staffing Plan Template
- Suitability of Proposed Plan Template
- Transportation Plan Template
South Dakota Proposed Medical Marijuana License Guidelines
Business license types that would be established under Initiated Measure 26:
“Cannabis Testing Facility” or “Testing Facility” – an independent entity registered with the department pursuant to this Act to analyze the safety and potency of cannabis.
- The application and license fees will be determined for all license types if the initiative is passed into law. Application fees may not exceed $5,000.
“Cultivation Facility” – an entity registered with the department pursuant to this act that acquires, possesses, cultivates, delivers, transfers, transports, supplies or sells cannabis and related supplies to a medical cannabis establishment.
- The application and license fees will be determined for all license types if the initiative is passed into law. Application fees may not exceed $5,000.
“Medical Cannabis Dispensary” or “Dispensary” – an entity registered with the department pursuant to this Act that acquires, possesses, stores, delivers, transfers, transports, sells, supplies, or dispenses cannabis, cannabis products, paraphernalia, or related supplies and educational materials to cardholders.
- The application and license fees will be determined for all license types if the initiative is passed into law. Application fees may not exceed $5,000.
“Cannabis Product Manufacturing Facility” – an entity registered with the department pursuant to the act that acquires, possesses, manufactures, delivers, transfers, transports, supplies, or sells cannabis products to a medical cannabis dispensary.
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- The application and license fees will be determined for all license types if the initiative is passed into law. Application fees may not exceed $5,000.
South Dakota is currently not accepting applications to license marijuana businesses. To get ahead of the game and prepare for your marijuana business in the event the state legalizes marijuana businesses, review the resources below.
RECOMMENDED SOUTH DAKOTA MARIJUANA BUSINESS PLANS FOR MARIJUANA BUSINESS LICENSE:
- South Dakota Application Guide & Checklist
- South Dakota Marijuana Business Plan Package
- Business & Operations Plan Template
- Cultivation Plan Template
- Manufacturing/Processing Plan Template
- Environmental Plan Template
- Financial Plan Template
- Fire Safety Plan Template
- Inventory Control Plan Template
- Patient Education Plan Template
- Patient Recordkeeping Plan Template
- Product Safety Plan Template
- Security Plan Template
- Staffing Plan Template
- Suitability of Proposed Plan Template
- Transportation Plan Template
South Dakota Proposed Recreational Marijuana License Guidelines
Business license types that would be established under Constitutional Amendment A:
- Licenses permitting commercial cultivators and manufacturers of marijuana to cultivate, process, manufacture, transport, and sell marijuana to marijuana wholesalers;
- Licenses permitting independent marijuana testing facilities to analyze and certify the safety and potency of marijuana;
- Licenses permitting marijuana wholesalers to package, process, and prepare marijuana for transport and sale to retail sales outlets; and
- Licenses permitting retail sales outlets to sell and deliver marijuana to consumers.
The Constitutional Amendment A establishes that the Department of Revenue would have the exclusive power to license and regulate the cultivation, manufacture, testing, transport, delivery and sale of marijuana in the state and to administer and enforce this article. The department shall accept applications for and issue, in addition to any other types of licenses the department deems necessary.
South Dakota is currently not accepting applications to license marijuana businesses. To get ahead of the game and prepare for your marijuana business in the event the state legalizes marijuana businesses, review the resources below.
RECOMMENDED SOUTH DAKOTA MARIJUANA BUSINESS PLANS FOR MARIJUANA BUSINESS LICENSE:
- South Dakota Application Guide & Checklist
- South Dakota Marijuana Business Plan Package
- Business & Operations Plan Template
- Cultivation Plan Template
- Manufacturing/Processing Plan Template
- Environmental Plan Template
- Financial Plan Template
- Fire Safety Plan Template
- Inventory Control Plan Template
- Patient Education Plan Template
- Patient Recordkeeping Plan Template
- Product Safety Plan Template
- Security Plan Template
- Staffing Plan Template
- Suitability of Proposed Plan Template
- Transportation Plan Template
The History of South Dakota Marijuana Business Licenses Marijuana
On the 2006 ballot, the first bill to allow medical marijuana, called The South Dakota Medical Marijuana Initiative (Initiative 4) was defeated by a narrow margin of 52-47. In 2010, it was revived under the same name, now known as Initiative 13, where it was defeated again by a larger margin of 63-36. An attempt to bring the same initiative to the 2016 ballot again failed.
Current South Dakota law makes industrial hemp illegal and all forms of CBD oil illegal. The only exception is the prescription drug Epidiolex, which was recognized by the 2019 legislature as a controlled substance under Senate Bill 22. Governor Kristi Noem signed that bill into law on February 19, 2019, which included an emergency clause to have the law go into effect immediately. This action leaves any other use or possession of CBD oil as a violation of state law.
On December 19, 2019, New Approach South Dakota successfully placed a medical marijuana initiative on the November 2020 ballot.
Initiated Measure 26 was passed by voters during the general election on November 3, 2020, and legalizes medical marijuana for use by patients with chronic and debilitating medical conditions.
Additionally, another campaign group known as South Dakotans for Better Marijuana Laws successfully placed a recreational marijuana initiative on the 2020 ballot.
The initiative, a proposed constitutional amendment known as Constitutional Amendment A was also passed by voters during the general election on November 3, 2020, and legalizes and regulates marijuana for adults 21 and older and direct the legislature to enact laws regulating the cultivation and sale of hemp.
Tentative Program Timeline:
November 7, 2006 – The first bill to allow medical marijuana, The South Dakota Medical Marijuana Initiative, was defeated by a narrow margin of 52-47.
November 2, 2010 – The same bill was revived under the same name, now known as Initiative 13, where it was defeated again by a larger margin of 63-36.
November 8, 2016 – An attempt to bring the same initiative to the ballot again failed.
February 19, 2019 – Governor Kristi Noem signed a bill into law with an emergency clause that made the prescription drug Epidiolex, a CBD oil, legal for qualified patients.
December 19, 2019 – A measure to legalize medical marijuana was approved and will now be placed on the 2020 ballot.
January 6, 2020 – A measure to legalize marijuana for adult use has qualified for the November 2020 ballot.
November 2020 – Voters passed medical marijuana (Initiated Measure 26) and recreational marijuana (Constitutional Amendment A) during the general election