CHAPTER 113: CANNABIS ESTABLISHMENTS
Section
   113.001   Purpose and intent
   113.002   Definitions
   113.003   Cannabis establishment license required
   113.004   Number of licenses
   113.005   Application process
   113.006   Transfer or modification of license
   113.007   License to remain active
   113.008   Fees established
   113.009   General obligations of licensee
   113.010   Fire and building regulations
   113.011   Financial responsibility
   113.012   Unauthorized conduct relating to cannabis
   113.013   Signage and advertising
   113.014   Suspension and revocation
   113.015   Liability and indemnification
   113.016   Compliance with other applicable laws
 
   113.999   Penalty
§ 113.001 PURPOSE AND INTENT.
   The City Commission of the City of Lead hereby enacts the following licensing sections in order to ensure that cannabis establishments within the municipal boundaries of the city operate in a manner which complies with state laws and regulations, protects the health, safety, and welfare of the general public, prevents potential conflicts and issues arising from ownership and employees, recognizes certain safety and security considerations, and minimizes risk of unauthorized use or access of cannabis by the general public.
(Ord. 1080-21, passed 10-18-2021)
§ 113.002 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.
   APPLICANT. A person or entity seeking or renewing a cannabis establishment license.
   CANNABIS (or 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.
   CANNABIS CULTIVATION FACILITY. A licensed entity that acquires, possesses, cultivates, delivers, transfers, transports, supplies, or sells cannabis and related supplies to a cannabis establishment.
   CANNABIS DISPENSARY. A licensed entity that acquires, possesses, stores, delivers, transfers, transports, sells, supplies, or dispenses cannabis, cannabis products, paraphernalia, or related supplies and education materials.
   CANNABIS ESTABLISHMENT. A cannabis cultivation facility, a cannabis testing facility, a cannabis product manufacturing facility, or a cannabis dispensary.
   CANNABIS ESTABLISHMENT LICENSE or LICENSE. A license issued pursuant to this chapter for the purpose of operating a type of cannabis establishment.
   CANNABIS PRODUCT MANUFACTURING FACILITY. A licensed entity that acquires, possesses, manufactures, delivers, transfers, transports, supplies, or sells cannabis products to a cannabis dispensary.
   CANNABIS TESTING FACILITY. A licensed entity authorized to analyze the safety and potency of cannabis.
   CITY. The City of Lead, South Dakota.
   CITY ADMINISTRATOR. The City Administrator of the City of Lead, South Dakota.
   CITY COMMISSION. The City Commission of the City of Lead, South Dakota.
   LICENSEE. A person, people, or entity in possession of a cannabis establishment license issued pursuant to this chapter.
   MAYOR. The Mayor of the City of Lead, South Dakota.
   RETAIL AREA. The area of a cannabis establishment where a customer can view and/or purchase cannabis or cannabis products.
   SECURED AREA. All parts of a cannabis dispensary except an unsecured waiting room where people may gather before entering the verification lobby or after leaving the secured exit.
   SECURED EXIT. The controlled location of a cannabis dispensary located between the retail area of a cannabis dispensary and the non-secured area or exterior, with a secured door at both its entrance and exit which allows eligible persons to exit the retail area.
   STATE. The state of South Dakota.
   VERIFICATION LOBBY. The controlled location of a cannabis dispensary located between the non-secured area or exterior of a cannabis dispensary and the retail floor, with a secured door at both its entrance and exit which allows eligible persons to enter the retail area.
(Ord. 1080-21, passed 10-18-2021)
§ 113.003 CANNABIS ESTABLISHMENT LICENSE REQUIRED.
   (A)   Classes of license. Each cannabis establishment shall have its own class of license. The four license classes are cannabis cultivation license, cannabis dispensary license, cannabis product manufacturing license, and cannabis testing license.
   (B)   License required. It shall be unlawful for any person or entity to create or operate a cannabis establishment in the city without first having obtained a license from the city and a registration certificate from the state for each cannabis establishment to be operated in connection with such business. Such license and certification shall be always kept current, and the failure to maintain a current license and certification shall constitute a violation of this section.
   (C)   Multiple licenses. A person or entity who intends to conduct activities which would meet the definition of multiple cannabis establishments must, prior to operating such cannabis establishments, obtain a license for each class of cannabis establishment. A person or entity may hold more than one class of license except when otherwise prohibited by this chapter.
   (D)   License location. Each license shall authorize a single cannabis establishment to operate at a single location. Licenses of different classes may overlap except when otherwise prohibited by this chapter.
   (E)   License duration. Each license issued is effective from January 1 through December 31, regardless of the time of year such license is approved. Each license expires at 11:59:59 p.m. on December 31 unless, prior to the expiration, the City Commission has approved, or conditionally approved, the renewal of such license for the following calendar year.
(Ord. 1080-21, passed 10-18-2021)
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