(A) Authority. The South Dakota legislature has expressly granted authority to the city to determine the number of medical cannabis establishment licenses to issue. (SDCL § 34-20G-58). The city may charge a reasonable fee for the local license. (SDCL § 34-20G-60)
(B) Number of licenses.
(1) There shall be available as local licenses for medical cannabis establishments a total of one license.
(2) The total local licenses established shall be allocated as follows, with a maximum number of local licenses limited within type of medical cannabis establishment as follows:
Cultivation facility | 0 license(s) |
Cannabis testing facility | 0 license(s) |
Cannabis product manufacturing facility | 0 license(s) |
Dispensary | 1 license(s) |
(3) The city shall consider all qualified applications in the order they were received, subject to any resolution establishing a different procedure. The City Commission is authorized to adopt a resolution setting forth the manner in which licenses are to be awarded in the event there are more qualified applicants than available licenses. No local licenses may be issued after the available new local licenses have been awarded by the city.
(4) Should any additional local licenses become available through revocation or otherwise, such license shall be made available to the first qualified applicant, subject to any resolution establishing a different procedure.
(5) In the event the number of available licenses is reduced by future amendment of this chapter, no then existing licensee shall be prevented from continuing operation during the license term, from applying for renewal ofsuch license for subsequent consecutive years, or from transferring such license, solely on the basis ofsuch reduction. However, this exception shall not prevent a license from being suspended or revoked, nor shall it prevent a denial of an application for renewal or transfer, based upon grounds other than a change in the number of available licenses.
(C) License fees.
(1) There shall be a non-refundable application fee in the amount of $ 20,000.
(2) There shall be a fee for newly issued licenses under this chapter for each type of medical cannabis establishment as follows:
Cultivation facility | - |
Cannabis testing facility | - |
Cannabis product manufacturing facility | - |
Dispensary | $100,000 |
(C) There shall be a renewal fee for any license issued under this chapter in the amount of $100,000. The City Commission is authorized to adjust these license fees by resolution.
(Ord. 2021-03, passed 9-2-2021)