CHAPTER 119: REGULATION AND LICENSING OF MEDICAL CANNABIS
Section
   119.01   General provisions
   119.02   Definitions
   119.03   Application and license approval
   119.04   Operating requirements and restrictions
   119.05   Number and costs of licenses
   119.06   Enforcement and penalties
§ 119.01 GENERAL PROVISIONS.
   (A)   Authority. This chapter is enacted under the authority of SDCL 34-20G-58.
   (B)   Purpose. It is the purpose of this chapter to promote the general welfare of the citizens of City of Summerset in enacting the provisions of SDCL § 34-20G and to carry into effect the powers granted to the Commissioners by virtue thereof and provide for the enforcement of the provisions set forth herein.
   (C)   Jurisdiction. These provisions shall, to the extent not in contradiction of any state law or regulation, govern the operations of medical cannabis establishments in the City of Summerset, South Dakota, outside the incorporated areas of any municipality.
(Ord. 2021-03, passed 9-2-2021)
§ 119.02 DEFINITIONS.
   (A)   Application and interpretation.
      (1)   The definitions listed hereafter shall apply to this chapter. The definitions are to be understood in their ordinary sense.
      (2)   The definitions correspond to the definitions of SDCL § 34-20G-1. Any interpretation of terms under that statute shall apply to the same term in this chapter.
   (B)   Definitions.
      ALLOWABLE AMOUNT OF CANNABIS.
         (a)   Three ounces of cannabis or less;
         (b)   A quantity of cannabis products with an equivalent cannabis weight as established by rules promulgated by the department under SDCL § 34-20G-72;
         (c)   If the cardholder has a registry identification card allowing cultivation, three cannabis plants minimum or as prescribed by physician; and
         (d)   If the cardholder has a registry identification card allowing cultivation, the amount of cannabis and cannabis products that were produced from the cardholder's allowable plants, if the cannabis and cannabis products are possessed at the same property where the plants were cultivated.
      CANNABIS PRODUCT MANUFACTURING FACILITY. An entity registered with the department pursuant to this chapter that acquires, possesses, manufactures, delivers, transfers, transports, supplies, or sells cannabis products to a medical 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 OR TESTING FACILITY. An independent entity registered with the department pursuant to this chapter to analyze the safety and potency of cannabis.
      CARDHOLDER. A qualifying patient or a designated caregiver who has been issued and possesses a valid registry identification card.
      CHILD WELFARE AGENCY. Any agency or institution maintained by a municipality or county, or any agency or institution maintained by a person, firm, limited liability company, corporation, association, or organization to receive children for care and maintenance or for placement in a family home, or that provides care for mothers and their children, excepting family day care facilities as defined in SDCL § 26-6-14.1.
      COMMISSIONERS. The City of Summerset Board of Commissioners.
      CULTIVATION FACILITY. An entity registered with the Department pursuant to this chapter that acquires, possesses, cultivates, delivers, transfers, transports, supplies, or sells cannabis and related supplies to a medical cannabis establishment.
      DEPARTMENT. The Department of Health.
      DISQUALIFYING FELONY OFFENSE. A violent crime that was classified as a felony in the jurisdiction where the person was convicted; Statute defines a violent crime.
      EDIBLE CANNABIS PRODUCTS. Any product that:
         (a)   Contains or is infused with cannabis or an extract thereof;
         (b)   Is intended for human consumption by oral ingestion; and
         (c)   Is presented in the form of foodstuffs, beverages, extracts, oils, tinctures, or other similar products.
      MEDICAL CANNABIS or CANNABIS. Marijuana as defined in SDCL § 22-42-1.
      MEDICAL CANNABIS DISPENSARY OR DISPENSARY. An entity registered with the Department pursuant to this chapter that acquires, possesses, stores, delivers, transfers, transports, sells, supplies, or dispenses cannabis, cannabis products, paraphernalia, or related supplies and educational materials to cardholders.
      MEDICAL CANNABIS ESTABLISHMENT. A cultivation facility, a cannabis testing facility, a cannabis product manufacturing facility, or a dispensary.
      MEDICAL CANNABIS ESTABLISHMENT AGENT. An owner, officer, board member, employee, or volunteer at a medical cannabis establishment.
      PLACE OF WORSHIP. A structure where persons regularly assemble for worship, ceremonies, rituals, and education relating to a particular form of religious belief and which a reasonable person would conclude is a place of worship by reason of design, signs, or architectural or other features.
      PLANNING AND ZONING BOARD. The City Planning Commission created by Summerset City Code § 31.050.
(Ord. 2021-03, passed 9-2-2021)
§ 119.03 APPLICATION AND LICENSE APPROVAL.
   (A)   Application.
      (1)   It shall be unlawful for any person, business, or other organization to engage in the business of operating a medical cannabis establishment within the municipal boundaries of the city without having a local license issued by the city.
      (2)   It shall be necessary for any person, business, or other organization to obtain a local license under this chapter prior to submitting an application to the South Dakota Department of Health for a state registration certificate. (SDCL § 34-20G-55)
      (3)   The application shall be on forms provided by the city. All information requested on the form shall be provided before the completed application is submitted.
      (4)   The application shall require verification, under punishment of perjury, that:
         (a)   None of the principal officers or board members has served as a principal officer or board member for a medical cannabis establishment that has had its registration certificate revoked, whether in this state or elsewhere;
         (b)   That none of the principal officers or board members are under 21 years of age;
         (c)   That at least one principal officer is a resident of the city;
         (d)   That the applicant is the owner or actual lessee of the premises where the business is conducted and the sole owner of the business operated under the license.
      (5)   If the applicant is other than an individual, the verification shall be by a principal officer of the entity applying for the license.
      (6)   The non-refundable application fee as set forth herein shall be paid at the time the application is submitted.
      (7)   The license fee as set forth herein shall be paid at the time the application is submitted. Should the application be denied, the license fee shall be returned to the applicant.
   (B)   License approval process.
      (1)   Upon receipt of a completed application, application fee and license fee, the City Administrator shall present the application to the Planning and Zoning Board at the next regularly scheduled meeting of the Board which shall set the time and place for hearing on all applications. The hearing shall be conducted within 30 days of presentation of the application.
      (2)   The city shall publish notice once in the official newspapers of the county, at least one week before the scheduled hearing. The notice shall be headed “Notice of Hearing Upon Applications for Medical Cannabis Establishment,” shall state the time and place when and where such applications will be considered by the Planning and Zoning Board, and shall state that any person interested in the approval or rejection of any such application may appear and be heard.
      (3)   At the time and place so set, the Planning and Zoning Board shall consider each application and any objection to the application before making its final decision on the application. The Planning and Zoning Board may recommend approval or disapproval of the application depending on whether the application complies with the Zoning Ordinance of the city and the Board deems the applicant a suitable person to hold the license and whether the proposed location is suitable.
      (4)   A person or entity may obtain more than a single class of license and/or more than a single license within any class of license, unless otherwise prohibited by law. The fact that multiple licenses are held may be considered in the application process as a factor in determining whether the applicant is a suitable person to hold the license.
      (5)   If the Planning and Zoning Board does not recommend approval of the application, the Board shall endorse on the application the reasons for the denial and return the application and the recommendation shall be forwarded to the City Board of Commissioners who shall schedule the matter to be heard at a special or regular meeting of the Commission.
      (6)   If the Planning and Zoning Board recommends approval of the application, the recommendation shall be forwarded to the Commissioners who shall hear the matter a special or regular meeting, and if approved by the Commission then the city shall endorse the approval on the application and shall issue a city license to the medical cannabis establishment.
      (7)   Any license issued shall be effective and valid through December 31 of the year issued. However, any license approved in 2021 shall be effective and valid through December 31, 2022.
   (C)   Renewal.
      (1)   A license issued pursuant to this chapter may be renewed on an annual basis. An applicant for renewal is not automatically entitled to renewal. The issuance of a local license does not create a property right in that license.
      (2)   An application for renewal shall be on the same forms and with the same requirements as the initial application set forth in divisions (A) and (B) above.
      (3)   The applicant need not pay an application fee, but must pay the renewal fee as set forth herein. Such renewal fee shall be paid at the time the renewal application is filed with the city.
      (4)   A completed application for renewal shall be presented to the City Administrator no later than November 1.
      (5)   No application for renewal of a dispensary shall be approved if the licensed premise was not open to the public during regular business hours for the sale of medical marijuana for at least 120 days in the previous year.
      (6)   The approval process for a renewal shall be the same as for an initial application. However, the license of a medical cannabis establishment applying for renewal may be approved for renewal by the Commissioners without a hearing unless in the past year the licensee, one of its principal officers or board members, or an employee of the dispensary have been subjected to a criminal penalty for violation of the medical cannabis laws or this chapter, or the license has been suspended.
   (D)   Suspension or revocation.
      (1)   A local license issued hereunder may be suspended or revoked by the Commissioners for violation of this chapter.
      (2)   Notification of the intent of the Commissioners to consider suspension or revocation of a local license shall be made at the address given on the license. Such notification shall be at least 30 days in advance of the date set for public hearing on the suspension or revocation action.
      (3)   Notice of public hearing shall be published in the official newspapers of the city at least one week prior to such hearing and in such form as deemed appropriate by the Commissioners.
      (4)   At the public hearing, the Commissioners shall hear evidence or testimony from the licensee and any interested person. The Commissioners may revoke the license if they determine, following the public hearing, that a violation of this chapter occurred.
      (5)   If the Commissioners are satisfied that the nature and the circumstances of the violation were such that a suspension of the license would be adequate, the Commissioners may, instead of revoking the license, suspend it for a period not exceeding 60 days.
      (6)   If the Commissioners suspend or revoke a local license, they shall notify the Secretary of the Department of Health of that fact.
   (E)   Transfer of license. The procedure for a transfer of a license is the same as the application for a new license. The fee for a transfer is $100,000. An affidavit of bulk sale and the existing license card must be submitted with the application for transfer. The application to transfer the license shall only be permitted if all municipal and state sales and use taxes incurred by the licensee as a result of the operation have been paid, and all property taxes, which are the liability of the licensee are paid or are not delinquent.
(Ord. 2021-03, passed 9-2-2021)
§ 119.04 OPERATING REQUIREMENTS AND RESTRICTIONS.
   (A)   Authority. The South Dakota legislature has expressly granted authority to the city, through its Commissioners to govern the time, place, and manner of operation of medical cannabis establishments. (SDCL § 34-20G-58). The Commissioners may not prohibit a dispensary, either expressly or through the enactment or application of an ordinance that makes the operation of a dispensary impractical. In the development and execution of these regulations, it is recognized that there are some uses which because of their very nature, are recognized as having serious objectionable operational characteristics, particularly when several of them are concentrated under certain circumstances thereby having a potential deleterious effect upon the adjacent areas. Special regulation of these uses is necessary to ensure that these adverse effects will not contribute to the blighting or downgrading of the surrounding neighborhood. The primary control or regulation is for the purpose of preventing a concentration of these uses in any one area.
   (B)   General prohibition. No medical cannabis establishment may operate in the city without possessing both a current license from city and a current registration certificate issued by the South Dakota Department of Health.
   (C)   Time restrictions.
      (1)   No medical cannabis establishment may operate on any Sunday or any federal or state holiday. However, a cultivation facility or cannabis product manufacturing facility may operate as may be required to prevent the destruction or degradation ofmarijuana plants under their control.
      (2)   A medical cannabis dispensary may not operate between the hours of 7:00 p.m. and 9:00 a.m.
   (D)   Location restrictions.
      (1)   Medical cannabis establishments are only allowed in those areas of the city that have been zoned as a C-l General Commercial District and medical cannabis establishments shall be considered a permitted use as listed in § 115.116 of the Summerset City Code.
      (2)   No medical cannabis establishment may share office space with a medical, psychiatric, counseling, chiropractic, or physical therapy practice.
      (3)   No medical cannabis establishment may be established, operated, or maintained within 1,000 feet of a public or private school or designated bus stop
      (4)   No medical cannabis dispensary may be established, operated, or maintained within 400 feet of a child welfare agency, a place of worship, an in-patient alcohol or drug treatment facility or a public playground.
      (5)   No medical cannabis dispensary may be established, operated, or maintained within 400 feet of the zoning boundaries of a district zoned as residential (RI, R2, R3) or General Industrial (Gl), or Agricultural (AG).
      (6)   No medical cannabis dispensary may be established, operated, or maintained within 400 feet of another medical cannabis dispensary, a bar, liquor store, or casino.
      (7)   No medical cannabis facility shall be located on-premises for which a license to sell alcoholic liquor, beer or wine has been issued.
   (E)   Manner restrictions.
      (1)   No person under 21 years of age shall be allowed on the licensed premises of a medical cannabis establishment.
      (2)   At all times during the hours of operation of a medical cannabis establishment, there shall be present a manager or other employee of the licensee who shall be not less than 21 years of age.
      (3)   No cannabis or related paraphernalia shall be displayed or kept in a business so as to be visible from outside the cannabis establishment.
      (4)   No licensee of a medical cannabis dispensary may dispense any medical marijuana to any person who is obviously under the influence of cannabis to such a degree as to cause impairment.
      (5)   Before cannabis may be dispensed by a medical cannabis dispensary, a medical cannabis establishment agent:
         (a)   Shall make a diligent effort to verify that the registry identification is valid; and
         (b)   Shall make a diligent effort to verify that the person presenting the documentation is the person identified on the document presented to the dispensary agent.
      (6)   All retail sales of cannabis shall be in person, directly to the purchaser, and within the retail area of a cannabis dispensary. No drive-up windows or similar delivery process shall be allowed.
      (7)   A medical cannabis establishment agent shall not dispense an amount of cannabis to a person that would cause the person to possess more than the allowable amount of cannabis.
      (8)   A medical cannabis establishment may not employ any person who has been convicted of a disqualifying felony offense.
      (9)   No alcohol or cannabis may be consumed on the premises of a medical cannabis dispensary.
   (F)   Signage and advertising.
      (1)   All exterior signage associated with a medical cannabis establishment shall comply with Summerset City Code §§ 115.270 through 115.280.
      (2)   In addition, no exterior signage may use the word “marijuana,” “cannabis,” or any other word, phrase or symbol commonly understood to refer to cannabis. Such words, phrases or symbols may be used ifspecifically approved by the Commissioners.
      (3)   No cannabis establishment may distribute or allow the distribution of any cannabis or cannabis product without charge within a cannabis establishment or elsewhere for purposes of promotion, advertising, or any other purpose.
(Ord. 2021-03, passed 9-2-2021)
Loading...