(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)