Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.
South Dakota allows cannabis sales for registered qualifying patients only. The Medical Cannabis program in South Dakota is managed by the South Dakota Department of Health.
South Dakota uses Metrc as its primary seed-to-sale tracking system. Metrc is also used to track patient allotments, however the primary point of truth for patient information in South Dakota is the state’s patient registry database.
Medical patients may purchase up to 3 oz (or an equivalent value of non-flower products) every 14 days.
Minor patients are not permitted to purchase inhalable cannabis in South Dakota.
South Dakota has defined the following product amounts are equal to one ounce of usable cannabis (flower)::
8 grams of concentrated cannabis in smokable form (net weight)
8 grams of vaporizer pens or cartridges (net weight)
5 grams of oils in oral dosage syringe, or capsule form (net weight)
800mg of THC in edible form (excluding oils)
12 fluid ounces of topical products (ointments, creams, or lotions)
1 ounce of topical products (Dry plant material, or powder)
800mg of THC in transdermal form (Patches)
Cannabis specific taxes are not outlined in the state cannabis rules.
Delivery rules have not currently been promulgated in South Dakota
South Dakota has strict provisions around patient information and data. Dispensary records and reporting may only refer to a patient’s state registry ID number, but may not capture any additional personal identifying information, unless the patient has provided consent to retain that information.
In South Dakota, online sales are limited to previous customers. A patient must make a previous purchase at the dispensary before purchasing cannabis online from that dispensary.
In July, 2023, the State Attorney General proposed a ballot initiative to repeal the medical cannabis program in South Dakota
All applications (except for ROD and ROND licensees) must be accompanied by a non-refundable application fee of $1,000. Additional license fees are imposed prior to the issuance of a final license. If the applicant qualifies as a social and economic equity applicant, then a 50% reduction, waiver, or deferred fee will apply. Other reductions, waivers, or fee deferrals may be approved by the Board for those demonstrating sufficient need.
Application review for the AUCC, AUCP, and CAURD applications takes approximately 4 to 8 weeks, per the Office. After the Office reviews and processes your application, if it meets the requirements, it will then be presented to the Board for final approval. Applicants may only begin adult-use cannabis activities upon final license approval from the Board.
For the non-conditional adult-use application round opening on October 4, OCM has indicated that it would begin reviewing those retail and microbusiness applications with site control as early as November 3, with no set timeline for ultimate license issuance.
The short answer is that there are no caps on total number of licenses in the Cannabis Law. We’ve seen hundreds of AUCP and AUCC licenses issued to date. For CAURD licenses, whereas the Board initially only planned to issue 150 total licenses, they then agreed to double that number to 300, and then exceeded that number thereafter.
That being said, the Board and the Office may limit the total number of applications in a few different material ways. For instance, they may limit licenses by location or authorized regions (as they have done in the CAURD application round), size of operation or output, or other operating conditions, dependent on issues related to sustainability, public health and safety, and social and economic factors.
For the application round opening on OCtober 3, OCM has indicated that it intends on issuing more than 1,000 total licenses, estimated to be broken down as follows:
Given that New York has now held three (3) distinct adult-use application rounds (AUCC, AUCP, and CAURD), it should be noted that those three (3) applications were notably consistent. The applications are hosted on the New York Business Express website, which is largely user friendly, though subject to crashes on high volume days (such as the final date for submission of the CAURD applications).
The proposed adult-use regulations identify similar areas of information for the forthcoming license opportunities, including:
For the application period opening on October 3, the Office will initially review:
As it relates to final licensure, the Office will assess, among other things: