CHAPTER 44:90:03
REGISTRATION CERTIFICATES
Section
44:90:03:01 Initial application for registration certificate.
44:90:03:02 Certificate renewal -- Application.
44:90:03:03 Certificate location transfer -- Application.
44:90:03:04 Transfer of ownership.
44:90:03:05 Operating procedures -- Required contents -- All medical cannabis establishments.
44:90:03:06 Cannabis cultivation facility operating procedures -- Additional requirements.
44:90:03:07 Cannabis testing facility operating procedures -- Additional requirements.
44:90:03:08 Cannabis product manufacturing facility operating procedures -- Additional requirements.
44:90:03:09 Cannabis dispensary operating procedures -- Additional requirements.
44:90:03:10 Compliance with local zoning requirements -- Form of certification.
44:90:03:11 Local registration, license, or permit -- Department verification.
44:90:03:12 Deadline to submit initial applications for establishments.
44:90:03:13 No registration certificate revocation -- Department verification.
44:90:03:14 No disqualifying felonies -- Form of certification.
44:90:03:15 Department review of competitive applications -- Scoring criteria.
44:90:03:16 Department awarding of registration certificate -- Tiebreaking procedures -- Notice to unsuccessful applicants.
44:90:03:17 Fees for registration certificate -- Application and renewal.
44:90:03:01. Initial application for registration certificate. An initial application for a registration certificate for any type of medical cannabis establishment must include:
(1) A completed application form;
(2) Operating procedures consistent with this article;
(3) Proof of the property owner’s consent to use the property for cultivation, manufacturing, dispensing, or testing cannabis, as applicable;
(4) Certification of compliance from the local municipality or county, as applicable, ensuring applicant’s proposed plans and location meet all local zoning and ordinance requirements;
(5) Copies of all required registrations, licenses, or permits;
(6) Photocopies of a valid form of identification issued in South Dakota, or its equivalent issued in another United States jurisdiction, for all principal officers and board members;
(7) Photocopies of organizing documents, operating agreements, management agreements, bylaws, and other legal documents relating to the applicant’s business structure;
(8) Certification that background checks have been completed for all medical cannabis establishment agents; and
(9) The applicable fee pursuant to § 44:90:03:17.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-55(1), 34-20G-57, 34-20G-61.
44:90:03:02. Certificate renewal -- Application. A renewal application for a registration certificate:
(1) Is required every 12 months from date of issuance; and
(2) Must include all components of an initial application, except that a detailed description of any changes to operating procedures, or a certification that no such changes exist, may be substituted for a complete set of operating procedures.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-55(1), 34-20G-57, 34-20G-61.
44:90:03:03. Certificate location transfer -- Application. An application for the transfer of a registration certificate to a different physical location must include:
(1) A completed change of location form;
(2) Documentation that establishment is operating in substantial compliance with its department-approved operating procedures or that circumstances beyond its control prevented such operation;
(3) Diagrams of all locations in which cannabis will be cultivated, harvested, dried, stored, manufactured, or destroyed;
(4) A detailed description of any changes to operating procedures, or a certification that no such changes exist;
(5) Certification of compliance with all applicable local zoning requirements; and
(6) Copies of all required registration, licenses, or permits reflecting the establishment’s new address.
Nothing in this section shall be interpreted to require a city or county to issue a registration, license or permit to operate at the new address.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-55(1), 34-20G-57, 34-20G-61.
44:90:03:04. Transfer of ownership. The transfer of any ownership interest in a medical cannabis establishment of 50 percent or more to a party not already approved by the department as an owner of the establishment requires the submission of an initial application pursuant to § 44:90:03:01.
The department may permit the transfer of an ownership interest in a medical cannabis establishment of less than 50 percent to a party not already approved by the department as an owner of the establishment if:
(1) The establishment is operating in substantial compliance with its department-approved operating procedures or can demonstrate that circumstances beyond its control prevented such operation;
(2) The establishment provides advance written notification to the department;
(3) The new owners meet all requirements of this article; and
(4) The city or county issues any required registration, license, or permit to the establishment’s new owners.
Nothing in this section shall be interpreted to require a city or county to approve a transfer of ownership.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-55(1), 34-20G-57, 34-20G-61.
44:90:03:05. Operating procedures -- Required contents -- All medical cannabis establishments. The operating procedures of any medical cannabis establishment must include:
(1) A management plan identifying the individuals who will be in charge of day-to-day operations of the establishment and their specific management roles;
(2) A site plan that must:
(a) Identify any areas in which cannabis will be cultivated, harvested, dried, stored, manufactured, tested, or destroyed;
(b) Indicate the types of activities that will take place in those areas;
(c) Identify a means of legal ingress onto property from the closest maintained public right of way;
(d) Demonstrate compliance with § 44:90:04:05;
(3) Operating days and hours;
(4) A workplace safety plan consistent with 29 C.F.R. § 1910.23 (November 18, 2016), 29 C.F.R. § 1910.123 (November 18, 2016) and 29 C.F.R. § 1200 (February 8, 2013), covering personal protective equipment, hazard assessment, safe equipment operation, proper application of agricultural chemicals, ladder use, and hazard communication;
(5) Plans for compliance with all applicable safety standards contained in local ordinance, SDCL chapter 11-10, article 61:15, and chapter 20:44:22;
(6) A security plan indicating all doors, windows, gates, exterior lights, alarm sensors, and cameras and describing how alarms and cameras will be monitored;
(7) Any additional steps to ensure the safety of patrons and the community;
(8) Plans for preventing the diversion of cannabis to noncardholders;
(9) A waste management plan for disposal of cannabis waste, including:
(a) A description of how the cannabis waste will be rendered unrecognizable and unfit for use by grinding and mixing the waste with at least 50 percent other waste, including soil, sawdust, grease, food waste, yard waste, or shredded paper;
(b) A description of how the waste will be composted, if applicable; and
(c) A description of how the waste will be hauled from the premises;
(10) A wastewater plan, including:
(a) For establishments connecting to a public wastewater system, a pretreatment industrial use permit or a determination by the Department of Agriculture and Natural Resources that no such permit is necessary; or
(b) For establishments using an onsite wastewater system, the applicant’s certification of compliance with chapter 74:53:01;
(11) Pre-employment screening procedures, including criminal background check; and
(12) Processes for limiting access by unauthorized persons, including verification of identity for all vendors and contractors, issuance of a visitor badge, and closely monitoring all visitors.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2)(5).
Law Implemented: SDCL 34-20G-55(1), 34-20G-72(5).
44:90:03:06. Cannabis cultivation facility operating procedures -- Additional requirements. The operating procedures for a cultivation facility must provide the department with sufficient detail to determine the establishment’s compliance with this article and SDCL chapter 34-20G, including:
(1) The number of mature cannabis plants, or size of plant canopy, to be cultivated;
(2) The number of seedlings to be cultivated;
(3) The lights, irrigation, greenhouses and other equipment to be used and the approval listing issued by a nationally recognized testing laboratory;
(4) Plans for providing electricity, water and other utilities necessary for the normal operation of the cultivation facility;
(5) Plans for ventilation and filtration systems that reduce the potential for mold;
(6) Detailed plans for remediating cannabis, specifying the steps to be taken by type of test failed; and
(7) A list of all pesticides, fungicides, insecticides, and fertilizers that will be present or used.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2)(5).
Law Implemented: SDCL 34-20G-55(1), 34-20G-72(5).
44:90:03:07. Cannabis testing facility operating procedures -- Additional requirements. The written operating procedures for a testing facility must provide the department with sufficient detail to determine the establishment’s compliance with this article and SDCL chapter 34-20G, including:
(1) A policy signed by each owner that ensures management and personnel are free from any undue internal and external commercial, financial, or other influences that may adversely affect the quality of their work or diminish confidence in its competence, impartiality, judgment, or operational integrity;
(2) A signed disclosure by each owner stating that there is no financial conflict with, interest in, investment in, landlord-tenant relationship with, or loan to a cannabis cultivation facility, cannabis product manufacturing facility, or cannabis dispensary;
(3) A list of analytical tests, specifying the analyte and technology for each, the applicant intends to offer and:
(a) Certification that the applicant will, within six months of licensing, begin working with an accreditation body to ensure compliance with applicable rules and ensure progress towards achieving ISO/IEC 17025 accreditation including all proposed analytical tests within its scope of accreditation; or
(b) If an initial application or a renewal application for a cannabis testing facility that has been licensed for less than 18 months, an agreement to:
(i) Submit quarterly reports to the department on its progress toward ISO/IEC accreditation; and
(ii) Comply with any department requests for confirmation testing at the cannabis testing facility’s expense;
(4) Standard operating procedures for all preanalytical, analytical, and post-analytical processes performed by the laboratory;
(5) Protocols for performing validation studies of all analytical tests to be performed;
(6) Protocols for proficiency testing at an interval determined by the accrediting body and documenting successful completion or corrective action, as defined by the accrediting body;
(7) A program to assess and document, at least annually, the competency of all technical and scientific staff that perform preanalytical, analytical, and postanalytical processes;
(8) Policies and procedures that ensure the protection of its clients’ confidential information and proprietary rights, including procedures for protecting the electronic storage and transmission of results;
(9) Policies and procedures for collection and receipt of samples for mandatory or other testing, including:
(a) Step-by-step procedures for collecting representative samples from each matrix type that are representative of the batch to be tested;
(b) Method for collection, preparation, packaging, labeling, documentation, and transport of samples from each matrix type;
(c) Size of sample to be collected for each analytical test to be performed;
(d) Safeguards against contamination, including protective garb, sanitizing of instruments, and care of sample collection containers;
(e) Labeling of sample containers; and
(f) Transport and storage conditions, including exposure to light, temperature, and humidity;
(10) Chain of custody protocols and a sample chain of custody form;
(11) Training procedures and records of training for all cannabis testing facility designees to be maintained on the premises; and
(12) Equipment to be used and its listing by a nationally recognized testing laboratory.
Source: 48 SDR 40, effective October 5, 2021; 49 SDR 9, effective August 8, 2022.
General Authority: SDCL 34-20G-72(2)(5).
Law Implemented: SDCL 34-20G-55(1), 34-20G-72(5).
Reference: International Organization for Standardization & International Electrotechnical Commission. (2018). ISO/IEC 17025:2017: General Requirements for the Competence of Testing and Calibration Laboratories. https://www.iso.org/standard/66912.html. Cost: $138.
44:90:03:08. Cannabis product manufacturing facility operating procedures -- Additional requirements. The operating procedures for a cannabis product manufacturing facility must provide the department with sufficient detail to determine the establishment’s compliance with this article and SDCL chapter 34-20G, including:
(1) A description of the classes of products that will be manufactured by the establishment;
(2) A detailed description of the manufacturing processes that will occur on the premises, including:
(a) Mechanical extraction using potable water, ice, dry screening or sieving, cryonic extraction, pressure, or temperature;
(b) Infusion into propylene glycol, glycerin, or food-grade fats;
(c) Extraction using food-grade ethanol; and
(d) Extraction using an inherently hazardous substance;
(3) Detailed plans for remediating cannabis on behalf of a cannabis cultivation facility, specifying the steps to be taken by type of test failed;
(4) Detailed plans for remediating cannabis products, specifying the steps to be taken by product type and by type of test failed;
(5) A diagram illustrating in which areas of the premises each manufacturing activity will occur;
(6) A diagram illustrating the areas of the premises where any solvent, chemical, or potentially hazardous substance will be stored, excluding water;
(7) Plans for ventilation and filtration systems that reduce the risk of fire or respiratory harm within the facility;
(8) Documentation from an engineer licensed pursuant to SDCL chapter 36-18A or a state or local official authorized to certify compliance that the equipment used for cannabis extraction and the location of the equipment comply with all applicable safety standards contained in local ordinance, SDCL chapter 11-10, article 61:15, and chapter 20:44:22; and
(9) Documentation from the manufacturer of the cannabis extraction system or an engineer licensed pursuant to SCDL chapter 36-18A showing that a professional grade, closed-loop extraction system that recovers the solvents used to produce cannabis extract is used by the establishment.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2)(5).
Law Implemented: SDCL 34-20G-55(1), 34-20G-72(5).
44:90:03:09. Cannabis dispensary operating procedures -- Additional requirements. The operating procedures for a dispensary must provide the department with sufficient detail to determine the establishment’s compliance with this article and SDCL chapter 34-20G, including:
(1) Plans to obtain an adequate supply of cannabis and cannabis products;
(2) Types of products offered;
(3) Verification of identification card and purchase limits;
(4) Advertising plan, including onsite signs;
(5) Training plan;
(6) Point-of-sale software to be used, including documentation of its interoperability with the inventory tracking system;
(7) Parking;
(8) Accessibility to individuals with disabilities; and
(9) Suitability of location for maximizing access by cardholders.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2)(5).
Law Implemented: SDCL 34-20G-55(1), 34-20G-72(5).
44:90:03:10. Compliance with local zoning requirements -- Form of certification. Each initial or renewal application must include a certification, on a form supplied by the department, of compliance with all applicable city and county zoning requirements.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-55(1)(d).
44:90:03:11. Local registration, license, or permit -- Department verification. Each initial or renewal application must include either:
(1) A certification, on a form supplied by the department, that the applicant is not required to obtain any city or county registration, license, or permit; or
(2) Copies of all required registrations, licenses, or permits.
The department may contact the city or county to verify the absence of registration, licensing, or permitting requirements or to verify the form and content of such documents.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-55(1).
44:90:03:12. Deadline to submit initial applications for establishments. The department shall accept applications on a rolling basis, except that applications to locate an establishment in a city or county that has limited the number of medical cannabis establishments must be submitted:
(1) By November 1, 2021, if the limit was enacted prior to October 1, 2021; or
(2) Within 90 days of the effective date of a limit enacted on or after October 1, 2021.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-55(1).
44:90:03:13. No registration certificate revocation -- Department verification. Each initial or renewal application must include a certification, on a form supplied by the department, that none of the principal officers or board members have served as a principal officer or board member for a medical cannabis establishment that has had its registration certificate revoked.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-55(2).
44:90:03:14. No disqualifying felonies -- Form of certification. With each initial or renewal application:
(1) Each principal officer or board member shall affirm that the individual has not been convicted of any disqualifying felony offense, whether in South Dakota or another jurisdiction.
(2) The signatory who has authority to bind the applicant to the representations in the application shall affirm that the applicant has conducted background checks on all principal officers and board members within 90 days of the initial application or within two years of a renewal application.
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(2), (3)(c).
Law Implemented: SDCL 34-20G-61, 34-20G-62, 34-20G-72(3).
44:90:03:15. Department review of competitive applications -- Scoring criteria. In a case in which more medical cannabis establishments apply than are allowed by a local government, the department shall numerically score competitive applications according to the following criteria:
(1) The local government, in response to the department’s inquiry, has endorsed the application as beneficial to the community (1 point);
(2) The local government has not informed the department that the location specified in the application is unsuitable for the proposed use due to zoning regulations or inaccessibility to the public (1 point);
(3) All principal officers and board members have certified that they have not, in the previous ten years, in any United States jurisdiction:
(a) Been convicted of a criminal offense involving fraud or false statements to a unit of government (1 point); or
(b) Served as a principal officer or board member of any business that has had a license or permit suspended or revoked for violations of laws or regulations relating to cannabis, alcohol, tobacco, or gaming (1 point);
(4) The applicant has submitted a floorplan with sufficient detail to enable the department to determine where all activities listed in the operating procedures will take place (1 point); and
(5) The applicant has submitted a business plan outlining the details contained in SDCL 34-20G-72(3)(d) (1 point).
Source: 48 SDR 40, effective October 5, 2021.
General Authority: SDCL 34-20G-72(3).
Law Implemented: SDCL 34-20G-56, 34-20G-72(3).
44:90:03:16. Department awarding of registration certificate -- Tiebreaking procedures -- Notice to unsuccessful applicants. The department shall award a registration certificate as follows:
(1) If more establishments apply than are allowed by a local government, the department must award the establishment with the highest score pursuant to § 44:90:03:15 a registration certificate;
(2) If the local government has enacted an overall limit on the number of establishments, the department must award registration certificates, in order of final score beginning with the highest score attained pursuant to § 44:90:03:15, until the limit is reached;
(3) If the local government has enacted a limit on establishments by establishment type, the department must award registration certificates, in order of final score beginning with the highest score attained pursuant to § 44:90:03:15, until the limit is reached for each establishment type;
(4) If applicants are tied for one or more openings in a locality, the affected applicants and interested members of the public must have the opportunity to view, in person or via videoconference, a random lottery to determine the successful applicants. The department shall rank each applicant via the lottery system to establish the order and a waiting list.
Any establishment issued a registration certificate pursuant to this section must become operational within one year, defined as three hundred sixty-five days, or, if a leap year, three hundred sixty-six days, of the date of issue or the certificate is deemed void and must be awarded to the next applicant on the waiting list. If the establishment granted a certificate pursuant to this section cannot become operational within one year, the establishment may submit to the department, at least two weeks prior to the expiration of the certificate, written documentation of the efforts made by the establishment to meet the deadline. The written documentation must include the action taken by the establishment to secure equipment and services necessary to become operational, and the reason why the establishment is unable to meet the deadline. Upon a finding by the department that, despite the establishment's documented timely efforts to secure all equipment and services necessary to become operational, the establishment is unable to become operational by the certificate expiration date, the department may grant the establishment an extension of time by which the establishment must become operational. The department may only grant an extension for up to an additional year from the date of expiration of the certificate based upon the amount of time reasonably necessary for the establishment to become operational. No further extensions may be granted. Establishments must comply with the requirements for renewal in § 44:90:03:02 regardless of the extension.
The notification of any unsuccessful applicants must identify the department’s decision as a final department action subject to the contested case procedures pursuant to SDCL chapter 1-26.
Source: 48 SDR 40, effective October 5, 2021; 49 SDR 47, effective November 22, 2022; 50 SDR 62, effective November 27, 2023.
General Authority: SDCL 34-20G-72(2).
Law Implemented: SDCL 34-20G-56, 34-20G-72(2), 34-20G-72(4)(a).
44:90:03:17. Fees for registration certificates -- Application and renewal. The department shall collect a non-refundable fee for an initial or renewal application for an establishment registration certificate of nine thousand dollars.
Source: 48 SDR 40, effective October 5, 2021; 50 SDR 62, effective November 27, 2023; 51 SDR 24, effective September 9, 2024.
General Authority: SDCL 34-20G-72(10).
Law Implemented: SDCL 34-20G-55(1)(a), 34-20G-72(10), SL 2024, ch 138 § 2.
