South Dakota Cannabis

South Dakota Cannabis License: Key Insights on Medical and Recreational Legalization Vote 2020

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The upcoming vote on November 3, 2020, may open the door for a South Dakota Cannabis License. This historic event marks the first time a state will simultaneously vote on both medical and adult-use cannabis legalization. By doing so, South Dakota is positioning itself as a progressive leader in marijuana reform.

What’s on the Ballot?

South Dakota voters will decide on two measures: Amendment A and Measure 26. Each requires a majority vote to pass.

  • Amendment A: This amendment to the South Dakota Constitution would legalize, regulate, and tax marijuana for adult use. It allows adults aged 21 and older to possess up to one ounce of marijuana and, under specific conditions, grow marijuana plants at home. Additionally, it grants the State Department of Revenue authority to issue licenses for cannabis businesses, including cultivators, manufacturers, and retailers. Local governments may regulate or ban such establishments within their jurisdictions.

  • Measure 26: This initiative establishes a medical marijuana program for qualifying patients, including minors. The measure takes a less restrictive approach, defining qualifying conditions broadly to ensure patients in need have access to medical cannabis. Patients could possess up to three ounces of marijuana or the amount prescribed by a physician. Non-resident medical patients with valid registration cards could also purchase cannabis in South Dakota.

Key Features of Amendment A

If passed, Amendment A would bring several changes to South Dakota:

  • Legalization of possession, use, transport, and distribution of marijuana for adults 21 and older.

  • Home cultivation of marijuana plants under certain conditions.

  • State-regulated licensing for cannabis businesses.

  • Revenue generation through application fees, licensing fees, and a 15% excise tax.

Revenue collected would fund the program’s implementation. Any surplus would be split between public schools and the state general fund. By 2023, projected tax revenues could reach nearly $20 million annually.

What Does Measure 26 Offer?

Measure 26 focuses on medical cannabis accessibility. Key provisions include:

  • Broad definitions of debilitating medical conditions to cover a wide range of patient needs.

  • Allowing home cultivation of cannabis plants for registered patients.

  • Enabling non-resident medical marijuana patients to access South Dakota dispensaries.

This inclusive approach ensures that all patients who could benefit from medical cannabis have safe and legal access.

A Unique Opportunity for Cannabis Entrepreneurs

Most states have introduced medical cannabis programs before expanding to adult-use legalization. South Dakota’s simultaneous approach could create immediate opportunities for cannabis business entrepreneurs. If Amendment A passes, the state will issue licenses to qualified applicants, paving the way for a thriving cannabis industry. This new sector will bring essential jobs and exciting career opportunities to the state.

The Economic Impact

The financial benefits of legalization are significant. Initial projections suggest the state could generate over $355,000 in net revenue in 2021. By 2023, this figure is expected to approach $20 million. These funds will support schools and the state’s general fund, providing a much-needed economic boost.

Take the Next Step

The passage of Amendment A or Measure 26 will lay the foundation for a booming industry in South Dakota. If you’re interested in applying for a South Dakota Cannabis License, contact us today to learn more.

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