South Dakota Cannabis License

Estimated reading time: 4 minutes

What’s on the Ballot?
Key Features of Amendment A
What Does Measure 26 Offer?
A Unique Opportunity for Cannabis Entrepreneurs
The Economic Impact
Take the Next Step
Additional Resources
Consulting Services For Cannabis, Hemp, Psilocybin, and Natural Medicine
Testimonials and Public Relations
Latest Articles
Explore Our Articles
Free Ebook – Start Your Own Legal Cannabis Business

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.

Additional Resources

Consulting Services For Cannabis, Hemp, Psilocybin, and Natural Medicine

Testimonials and Public Relations

Latest Articles

The Recipe for a Top-Tier Cannabis Dispensary
Operating a highly reviewed, top-performing cannabis dispensary takes more than simply stocking product and unlocking the doors. It requires operational discipline, regulatory expertise, top-tier customer service, dynamic merchandising, and a culture of accountability and community. With the cannabis industry continuing to expand—and regulations constantly evolving—success is defined by how seamlessly a dispensary integrates compliance, product curation, staff training, and marketing into day-to-day operations.
Minnesota Lottery Results: June 5 Cannabis License Drawings and What’s Next
The Minnesota Lottery for cannabis business licenses reached a pivotal milestone on June 5, as the Office of Cannabis Management (OCM) conducted randomized drawings for select license types. These lotteries were open to both social equity applicants and general applicants vying for limited licenses to operate as cultivators, manufacturers, and mezzobusinesses. Additionally, a separate lottery was held exclusively for social equity applicants seeking a retail cannabis license.
Cannabis Compliance Isn’t Just a Department—It’s a System
Compliance in the cannabis industry is too often approached as a box-checking exercise or relegated to a single department or, in some cases, a single person. In reality, cannabis compliance must be woven into every aspect of operations – from seed to sale – to truly protect and propel a business forward.
Cannabis Cultivation Turnaround: A Strategic Guide for Stakeholders
Creating a profitable cannabis cultivation business is far more complex than simply growing plants—it’s about managing a company within one of the world’s most dynamic and tightly regulated industries. Operators often find themselves battling shrinking margins, ever-changing compliance requirements, and increasing competition, all while trying to extract maximum value from every corner of their operation.
Open a Cannabis Consumption Lounge in New Jersey: Getting Started Guide
New Jersey’s adult-use law allows “cannabis consumption areas,” but only as an endorsement to existing licenses. The Cannabis Regulatory Commission (CRC) decided not to create a new license class; instead, licensed Class 5 retailers (or permitted medical dispensaries) can apply for a Consumption Area Endorsement to their facility. This means only approved dispensaries (currently still coming online in NJ) can add a 21+ onsite use room. Applications for consumption area endorsements opened in January 2025.
Open a Cannabis Lounge in New Mexico: Licensing & Compliance Guide
New Mexico’s Cannabis Regulation Act (2021) explicitly authorizes On-Site Consumption Area licenses (often called “consumption lounge” permits) under the NM Cannabis Control Division (CCD). The CCD issues two types of permits: Type I (non-smoking, edibles/vapor) and Type II (smoking allowed). A consumption area license lets a venue legally serve non-infused snacks/beverages and allow consumption of cannabis products by patrons age 21+. These can be standalone lounges or add-ons to other licensees (e.g. a dispensary or restaurant that obtains a consumption license).

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

Table of contents