CHAPTER 95: CANNABIS ESTABLISHMENTS
Section
   95.01   Definitions
   95.02   License required
   95.03   License application
   95.04   Issuance of license
   95.05   City neutrality as to applicants
   95.06   Number of cannabis dispensaries
   95.07   Expiration of license and renewal
   95.08   Suspension
   95.09   Revocation
   95.10   Suspension and revocation process
   95.11   Appeal
   95.12   Licenses not transferable
   95.13   Hours of operation for dispensaries
   95.14   Liability for violations
   95.15   General use
   95.16   Business use
 
   95.99   Penalty
§ 95.01 DEFINITIONS.
   Unless an alternative definition is explicitly stated in this section, this chapter utilizes the definitions for cannabis-related terms which are defined by SDCL § 34-20G-1.
   CANNABIS CULTIVATION FACILITY. In addition to the definition in SDCL § 34-20G-1, this term is further defined as a legally licensed entity that acquires, possesses, cultivates, delivers, transfers, transports, supplies, or sells cannabis and related supplies to a cannabis establishment.
   CANNABIS DISPENSARY. In addition to the definition in SDCL § 34-20G-1, this term is further defined as a legally licensed entity that acquires, possesses, stores, delivers, transfers, transports, sells, supplies, or dispenses cannabis, cannabis products, paraphernalia, or related supplies and educational materials.
   CANNABIS ESTABLISHMENT. Cannabis cultivation facility, a cannabis testing facility, a cannabis product manufacturing facility, or a cannabis dispensary.
   CANNABIS PRODUCT MANUFACTURING FACILITY. In addition to the definition in SDCL § 34-20G-1, this term is further defined as a legally licensed entity that acquires, possesses, manufactures, delivers, transfers, transports, supplies, or sells cannabis products to a cannabis dispensary.
   CANNABIS PRODUCTS. Any concentrated cannabis, cannabis extracts, and products that are infused with cannabis or an extract thereof, and are intended for use or consumption by humans. The term includes edible cannabis products, beverages, topical products, ointments, oils, and tinctures.
   CANNABIS TESTING FACILITY. In addition to the definition in SDCL § 34-20G-1, this term is further defined as a legally licensed entity legally authorized to analyze the safety and potency of cannabis.
   DEPARTMENT. The South Dakota Department of Health.
   INGEST. Any person who intentionally ingests, inhales, or otherwise takes into the body any substance.
   MARIJUANA. All parts of any plant of the genus cannabis, whether growing or not, in its natural and unaltered state, except for drying or curing and crushing or crumbling. The term includes an altered state of marijuana absorbed into the human body. The term does not include fiber produced from the mature stalks of such plant, or oil or cake made from the seeds of such plant. The term does not include the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent on a dry weight basis.
   PUBLIC PLACE. Any place whether within or without a building, commonly and customarily open to or used by the general public and any street, highway, alley or sidewalk.
(Ord. passed 9-16-2021)
§ 95.02 LICENSE REQUIRED.
   (A)   No cannabis establishment may be located or operate in the town without the appropriate valid and current cannabis establishment license issued by the town pursuant to this chapter. A violation of this provision is subject to the general penalty provision in § 95.99(A). Each day of the violation constitutes a separate offense.
   (B)   No cannabis establishment may be located or operate in the town without the appropriate valid and current cannabis establishment registration certificate issued by the Department pursuant to rules promulgated under SDCL Chapter 34-20G. A violation of this provision is subject to the general penalty provision in § 95.99(A). Each day of the violation constitutes a separate offense.
(Ord. passed 9-16-2021)
§ 95.03 LICENSE APPLICATION.
   (A)   An application for a cannabis establishment license must be made on a form provided by the town. No other application form will be considered.
   (B)   The applicant must submit the following:
      (1)   Application fee of $5,000. The town will reimburse $2,500 for applicants who fail to obtain a registration certificate from the South Dakota Department of Health.
      (2)   An application that will include, but is not limited to, the following:
         (a)   The legal name of the prospective cannabis establishment;
         (b)   The physical address of the prospective cannabis establishment that meets distance requirements from 1,000 feet from existing schools, 500 feet from existing churches, 500 feet from existing daycares, and 500 feet from existing libraries as well as any location requirements pursuant SDCL Chapter 34-20G and the administrative rules promulgated thereunder.
         (c)   The name, address, and birth date of each principal officer, owner, and board member of the proposed cannabis establishment.
         (d)   A sworn statement that no principal officer, owner, or board member has been convicted of a violent felony offense in the previous ten years in any jurisdiction.
         (e)   Any additional information requested by the town.
(Ord. passed 9-16-2021)
§ 95.04 ISSUANCE OF LICENSE.
   (A)   The town will issue a license unless:
      (1)   The applicant has made a false statement on the application or submits false records or documentation;
      (2)   Any owners, principal officer, or board member of the applicant is under the age of 21 years;
      (3)   Any owner, principal officer, or board member of the applicant has been convicted of a violent felony offense in the previous ten years in any jurisdiction;
      (4)   The proposed location does not meet the applicable distance requirements from schools, churches, daycares, and libraries;
      (5)   The proposed location does not meet all location requirements under SDCL Chapter 34-20G and the administrative rules promulgated thereunder;
      (6)   The license is to be used for a business prohibited by state or local law, statute, rule, ordinance, or regulation;
      (7)   Any owner, principal officer, or board member of the applicant has had a cannabis establishment license revoked by the town or a registration certificate revoked by the state;
      (8)   An applicant, or an owner, principal officer, or board member thereof, is overdue in payment to the town of taxes, fees, fines, or penalties assessed against or imposed upon the applicant in relation to any cannabis establishment; or
      (9)   The applicant will not be operating the business for which the license would be issued.
   (B)   In the case of an application for a cannabis dispensary license, the town will reject the application if the limit on the number of cannabis dispensaries has been reached.
   (C)   The license must be posted in a conspicuous place at or near the entrance to the cannabis establishment so that it may be easily read at any time.
(Ord. passed 9-16-2021)
§ 95.05 CITY NEUTRALITY AS TO APPLICANTS.
   Upon request from the Department as to the town's preference of applicants, the town will neither support nor oppose any registration certificate application under consideration by the Department. Likewise, if inquiry is made by the Department, the town will abstain from endorsing any application as beneficial to the community.
(Ord. passed 9-16-2021)
§ 95.06 NUMBER OF CANNABIS DISPENSARIES.
   No more than two cannabis dispensaries shall be allowed to operate in the town at any time.
(Ord. passed 9-16-2021)
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