(A) Required permits. In order to operate as a medical cannabis establishment in the county, the prospective entity must obtain both a permit from the county and a state registration issued by the State Department of Health. A county license allows for the operations of one of each of the following: cannabis product manufacturing facility, cannabis testing facility, cultivation facility, and cannabis dispensary; so long as all the facilities reside at the same location.
(B) Permit application procedures.
(1) All permit requests must be submitted, with the application fee, to the Auditor's Office. A permit decision will be made within 60 days of application.
(2) The license shall be in effect for a two-year period.
(3) A renewal fee shall be paid up to 90 days prior to the expiration of the license.
(C) Permit application requirements. A permit application to operate as a medical cannabis establishment requires:
(1) The legal name of the prospective medical cannabis establishment;
(2) The location of the prospective medical cannabis establishment;
(3) A certification that the location of the prospective medical establishment is not within 1,000 feet of a public or private school, including daycare facilities with more than 21 children;
(4) The name and date of birth of each principle officer and board member of the prospective medical cannabis establishment;
(5) A certification that none of the employees of the prospective medical cannabis establishment has been convicted of a disqualifying felony offense;
(6) A certification that the employees of the prospective medical cannabis establishment are over the age of 21 years;
(7) A current background check for each officer, board member, agent, volunteer, or employee associated with or working in the prospective medical cannabis establishment;
(8) A description of the type of medical cannabis establishment; for example: whether the establishment will operate as a cultivation facility, a cannabis testing facility, a cannabis product manufacturing facility, or a cannabis dispensary;
(9) A copy of the operating documents for the prospective medical cannabis establishment that detail oversight of the establishment and procedures to ensure accurate record-keeping;
(10) A description of appropriate security measures designed to deter and prevent theft of cannabis and unauthorized entry into any area containing cannabis; and
(11) An application fee of $50,000 may be paid in two payments, with half of the fee paid at the time the application, and the remainder paid in the end of the first year.
(D) License application contents. Any application for a license as provided in this chapter shall be made on forms prescribed by the county. The application shall contain information required by the county and necessary to determine the eligibility of the applicant.
(E) Application approval or disapproval; fee.
(1) Any applicant for a new cannabis establishment or facility shall submit an application to the county. The applicant shall submit the required fee along with the application. The county may approve the application if the applicant is determined to be suitable to hold the license and the proposed location is suitable. If an application is rejected, the application fee will be refunded minus county costs.
(2) The governing body may reject an application for a new medical cannabis establishment or facility if:
(a) The approval of the application permits a person, corporation, or business entity to possess more than one license in the jurisdiction;
(b) The governing body determines the applicant has failed to comply with SDCL Chapter 34-20G or has a history of violating the state’s rules governing medical cannabis establishments, county ordinances or zoning regulations regarding medical cannabis establishments; or
(c) The applicant fails to pass a background check.
(3) Any application for the re-issuance of a cannabis establishment or facility may be approved by the county without a hearing unless, in the past year, the licensee, or one or more of the licensee’s employees, have been subjected to a criminal penalty for violation of the medical cannabis establishments control law, or if the license has been suspended.
(F) Access to premises and records. Each application for a license under this chapter shall include an agreement by the applicant that the applicant’s premises, for the purposes of search and seizure laws of the county ordinances where the license is issued, are considered public premises. In addition, the agreement shall state:
(1) The premises and all buildings open to the public shall be open for inspection to law enforcement and county officers;
(2) All of the applicant’s records and books dealing with the sale and ownership of cannabis establishments or facilities are open to the county officers’ specified inspection of medical cannabis establishments or facilities; and
(3) The application and license issued on the application is a contract between the applicant and the county having jurisdiction, entitling the county, for the purpose of enforcing any ordinances, to inspect the applicant’s premises and books at any time.
(G) Hearing required before issuance of license. No license for a medical cannabis establishment license may be issued to an applicant until a public hearing has been held.
(H) Character requirements for licensees. Any licensee shall be a person of good moral character, never convicted of a felony, and, if a corporation, the managing officers of the corporation shall meet the same qualifications.
(I) Ownership of business. Any medical cannabis establishment licensee under this chapter shall be the owner or actual lessee of the premises where the business is conducted, and the sole owner of the business operated under the license.
(J) License non-transferable.
(1) Any medical cannabis establishment license issued in the county is not transferable to a new owner, business, or other entity.
(2) An owner or business which possesses a medical cannabis establishment license may designate a successor which will be given priority in his, her, or their application for a new license.
(K) Violation as ground for revocation or suspension.
(1) The county, in compliance with SDCL Chapter 1-26, may revoke, suspend, or add conditions to any license issued under this chapter upon proof of violation by the licensee, by the licensee’s agents or employees, or by the manager or contractual operators of medical cannabis establishment and their agents or employees operating under a county license, of any of the following:
(a) Any provision of SDCL Chapter 34-20G;
(b) Any rule promulgated pursuant to chapter; or
(c) Any ordinance or regulation relevant to cannabis establishment or facility control adopted by the political subdivision issuing the license.
(2) For any licensee with multiple licenses within the county, upon revocation, suspension or additional conditions of any license pursuant to this chapter, the licensee maybe required to cease operation or comply with added conditions under all medical cannabis establishment licenses held by the licensee for the same premises for the same period as the suspension or revocation.
(L) Application renewal; fee.
(1) Any renewal application for a medical cannabis establishment or facility may be approved if the county considers the applicant suitable to hold the license and the proposed location is suitable.
(2) The fee shall be $20,000.
(Ord. 2107-59, passed 7-29-2021; Ord. 2210-34, passed 10-25-2022) Penalty, see §
111.99