44:90:04:01. Change in management -- Duty to report. An establishment shall remain under the direction of the individuals identified in its management plan pursuant to § 44:90:03:05(1). An establishment shall provide the department an updated management plan within seven days after any change in management personnel occurs.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(a).

Law Implemented: SDCL 34-20G-63, 34-20G-72(5).

44:90:04:02. Corrective and preventive action -- Written procedures. An establishment shall maintain and follow written procedures for implementing corrective action and preventive action, including:

(1) Analysis of processes, work operations, reports, records, service records, complaints, returned product, and other sources of data to identify existing and potential root causes of nonconformance or other quality problems;

(2) Identifying any actions needed to correct and prevent recurrence of nonconformance and other quality problems;

(3) Verifying the corrective action or preventive action to ensure that such action is effective and does not adversely affect finished products or processes;

(4) Implementing and recording changes in methods and procedures needed to correct and prevent identified quality problems;

(5) Ensuring the information related to quality problems or nonconformance is disseminated to those directly responsible for assuring the quality of products or the prevention of such problems;

(6) Submitting relevant information on identified quality problems and corrective action and preventive action documentation and confirming the result of the evaluation for management review; and

(7) Ensuring that cannabis or cannabis products that are nonusable or otherwise do not meet safety standards established by this article are quickly identified and destroyed or remediated to prevent harm to patients.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(a).

Law Implemented: SDCL 34-20G-63, 34-20G-71, 34-20G-72(5).

44:90:04:03. Duty to report criminal activity to department and law enforcement. In addition to notice required by SDCL 34-20G-50, an establishment shall provide notice to the department and local law enforcement agency within one business day upon its discovery of any unauthorized entry or theft of cannabis, cannabis plants, or cannabis product or any plan or other action of any person to:

(1) Steal cannabis plants, cannabis, cannabis products, cannabis paraphernalia, equipment, or money that is the property of the establishment;

(2) Sell or otherwise provide cannabis plants, cannabis, cannabis products, or cannabis paraphernalia that is the property of the establishment to unauthorized persons;

(3) Purchase or otherwise obtain cannabis plants, cannabis, cannabis products, or cannabis paraphernalia from unauthorized persons;

(4) Falsify inventory records or transport manifests; or

(5) Commit any other crime relating to the operation of the establishment.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(a).

Law Implemented: SDCL 34-20G-50, 34-20G-63, 34-20G-64, 34-20G-72(5).

44:90:04:04. Co-location of medical cannabis establishments. A medical cannabis establishment shall have separate means of ingress and egress from any other medical cannabis establishment, except that multiple medical cannabis establishments with common ownership may be co-located if:

(1) The establishments have lockable, alarmed doors separating activities performed under different licenses;

(2) The door separating a dispensary from cultivation or product manufacturing activities remains locked when cardholders are present, and signs clearly state that entry is limited to employees and other authorized persons;

(3) The unit of local government allows the types of medical cannabis establishments requesting co-locations; and

(4) None of the following occurs:

(a) A testing facility located in the same structure as any other cannabis establishment;

(b) Extraction using ethanol, inherently hazardous substances, or compressed gas in the same structure in which a cannabis dispensary is located; or

This section shall not be interpreted to prohibit shared access from a parking lot, walkway, concourse, or other area generally open to the public as part of a shopping center or business park, if allowed by the unit of local government.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(c)(d)(h).

Law Implemented: SDCL 34-20G-72(5).

44:90:04:05. Lighting. Any gate or perimeter entry point of a medical cannabis establishment must have lighting sufficient for observers to see and cameras to record, any activity within ten feet of the gate or entry. A motion detection lighting system may be employed to light required areas in low-light conditions.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(c).

Law Implemented: SDCL 34-20G-64 , 34-20G-72(5).

44:90:04:06. Doors and windows. Commercial grade locks intended for facilities requiring high levels of physical security, are required on all perimeter entry doors. All windows must be in good condition and lockable.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(c).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:07. Placement of security cameras. All medical cannabis establishments shall permanently fix security cameras:

(1) At each exterior door and gate to allow identification of persons entering or exiting the premises;

(2) At each door separating non-public areas of a dispensary from areas in which sales to patients and designated caregivers are made, to allow identification of persons entering or exiting non-public areas; and

(3) In sufficient number to allow the viewing, in its entirety, of any area where cannabis, cannabis plants, cannabis products, or cannabis waste are cultivated, manufactured, stored, destroyed, or prepared for transfer, sale, or testing.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(c).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:08. Recording by security cameras -- Access by department. The video surveillance system must meet the following minimum requirements:

(1) Minimum resolution of 720 pixels;

(2) Internet protocol (IP) compatibility supporting live viewing by the department over a secure internet connection;

(3) Minimum of 15 frames per second;

(4) Clear and accurate display of time and date;

(5) Cameras set to record 24 hours a day at all establishments, except cameras placed at exterior doors used by patients to enter or exit the dispensary that must be set to record only outside of the dispensary’s operating hours to ensure patient privacy; and

(6) A backup power source allowing for recording and transmitting video for a minimum of two hours during a power failure.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(c).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:09. Storage of camera footage. An establishment shall maintain surveillance recordings for a minimum of 90 days, either:

(1) On a surveillance system storage device secured on the premises in a lockbox, cabinet, or closet and alarmed with motion and seismic sensors to protect from employee tampering or criminal theft; or

(2) Stored on a secure third-party server.

All video recordings are subject to inspection by any department employee or law enforcement officer and must be copied and provided to the department or law enforcement officer upon request.

An establishment shall maintain a list of all persons with access to video surveillance recordings and maintain written procedures for controlling access to recordings.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(c).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:10. Alarm system. A medical cannabis establishment shall maintain an alarm system:

(1) With monitored sensors on all exterior doors, windows, and gates;

(2) Monitored by a security company capable of contacting the establishment and, if necessary, law enforcement;

(3) That has an audible alarm capable of being disabled remotely by the security company; and

(4) That alerts the security company during a power failure and operates for a minimum of four hours on backup power.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(c).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:11. Agent identification badges to be provided by establishments. A medical cannabis establishment shall provide an agent identification badge to each agent. The establishment shall include on the badge:

(1) The agent’s photograph that meets the requirements of subdivision 44:90:02:04(3), except that the photograph may be as small as seven-eighths inch by one-and-five-thirty-seconds inches; and

(2) In a plain black font not less than sixteen point:

(a) The first and last name of the agent; and

(b) The name of the establishment.

Each agent shall display this badge whenever on the premises of the establishment or transporting cannabis, or cannabis products.

Source: 48 SDR 40, effective October 5, 2021; 49 SDR 47, effective November 22, 2022.

General Authority: SDCL 34-20G-72(5)(g).

Law Implemented: SDCL 34-20G-72(5).

44:90:04:12. Agent identification badges to be displayed. A medical cannabis establishment shall provide an agent identification badge to each agent, who shall display this badge whenever on the premises of the establishment or transporting cannabis or cannabis products.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5).

Law Implemented: SDCL 34-20G-72(5).

44:90:04:13. Controlled access -- Verification of identity. No medical cannabis establishment may share premises with or permit access directly from any residence or business unless permitted by § 44:90:04:04. This section may not be interpreted to prohibit access from a shared parking lot, walkway, concourse, or other area generally open to the public as part of a shopping center or business park.

A medical cannabis establishment shall verify the age and identity of any person entering the premises by requiring the person to present a valid photographic identification document issued by this state, another state, tribe, or the federal government. Unless permitted by SDCL 34-20G-65 or § 44:90:08:01, no person may enter the premises other than agents of the establishment, contractors 18 years of age or older hired by the establishment, employees or agents of the department, law enforcement officers, or employees or agents of other local or state agencies with regulatory authority, including fire marshals, electrical inspectors, pesticide control staff, and environmental inspectors, for the purpose of exercising such regulatory authority.

Source: 48 SDR 40, effective October 5, 2021; 49 SDR 9, effective August 8, 2022.

General Authority: SDCL 34-20G-72(5)(c).

Law Implemented: SDCL 34-20G-65, 34-20G-69, 34-20G-72(5).

44:90:04:14. Visitor badges to be worn by contractors performing work at a medical cannabis establishment. A medical cannabis establishment shall issue a visitor badge to any temporary contractor of the establishment whose scope of work will not involve the handling of cannabis, cannabis plants or cannabis products, including a carpenter, electrician, plumber, engineer, or alarm technician. Such contractors shall work under the direct supervision of a medical cannabis establishment agent whenever working in an area in which cannabis, cannabis plants or cannabis products are present.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(g).

Law Implemented: SDCL 34-20G-65, 34-20G-72(5).

44:90:04:15. Operation of agricultural, industrial, or other heavy equipment – Training requirements. Establishment agents shall:

(1) Receive thorough training in the safe operation of any heavy agricultural equipment, industrial equipment such as extraction and packaging equipment, and other heavy equipment such as forklifts, before operating that equipment; and

(2) Complete OSHA-approved certification courses prior to using any equipment.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(g).

Law Implemented: SDCL 34-20G-72(5).

44:90:04:16. Record-keeping -- Use of inventory tracking system -- Training requirements. Prior to performing duties onsite or transporting cannabis, a medical cannabis establishment agent shall receive at minimum two hours of training in record-keeping. The agent’s training must be documented in the establishment’s records.

Any establishment agent who will enter data into the inventory tracking system required by the department shall additionally receive at minimum two hours of hands-on training. At least one establishment agent for each establishment shall receive at minimum four hours of training to act as an administrator of the inventory tracking system.

Source: 48 SDR 40, effective October 5, 2021; 49 SDR 9, effective August 8, 2022.

General Authority: SDCL 34-20G-72(5)(g)(j).

Law Implemented: SDCL 34-20G-63, 34-20G-72(5).

44:90:04:17. Security protocols -- Training requirements. Each establishment agent shall receive training in all aspects of the establishment’s security protocol. The training must focus on the agent’s role in deterring and preventing theft and preventing unauthorized access to the premises.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(g).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:18. Vehicle requirements -- Establishments. Establishments shall provide the following information to the department for each vehicle that will be used to transport cannabis or cannabis products, including samples for testing:

(1) Make, model, and license plate number;

(2) Proof of a valid automobile insurance policy;

(3) A description or photos of a secure, opaque, locking compartment to be used to secure cannabis and cannabis products;

(4) Verification that the vehicle has a functioning alarm system; and

(5) Verification, with photographs as necessary, that the vehicle cannot be identified as transporting cannabis or cannabis products.

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72(5)(f).

Law Implemented: SDCL 34-20G-72(5).

44:90:04:19. Transport manifests -- Form and content. A transport manifest is required for all authorized transfers of any amount of cannabis or cannabis products, except retail sales at a dispensary. The transport manifest must contain:

(1) The name, address, phone number, and license number of the medical cannabis establishment transporting the cannabis or cannabis products;

(2) The name, address, phone number, and license number of the establishment receiving the items;

(3) The phone number and web address of the department’s secure verification system;

(4) Description and quantities, either by weight or unit, of all items, including samples, contained in each transport;

(5) Date of transport and approximate time of departure and arrival;

(6) Vehicle make, model and license plate number;

(7) The name and signature of driver and any other agent accompanying the transport; and

(8) The name and signature of the person accepting the transport, upon delivery.

Source: 48 SDR 40, effective October 5, 2021; 49 SDR 9, effective August 8, 2022.

General Authority: SDCL 34-20G-72(5)(f)(j).

Law Implemented: SDCL 34-20G-63.

44:90:04:20. Separate transport manifest required. A separate transport manifest shall be prepared for each medical cannabis establishment that will receive cannabis or cannabis products. The vehicle must carry three copies of each transport manifest:

(1) One for the recipient;

(2) One to be returned to the originating establishment for the purposes of record keeping; and

(3) One to be provided at the request of law enforcement or an agent of the department, if the vehicle is involved in a traffic stop or collision.

Any cannabis or cannabis products, including samples, that are refused by the intended recipient must be noted on the transport manifest and noted in the originating establishment’s inventory records after the items are returned.

A transport manifest may not be altered from the originating establishment except as provided for in this section.

The transport manifest does not take the place of a chain-of-custody form that may be required of the establishment.

Source: 48 SDR 40, effective October 5, 2021; 49 SDR 9, effective August 8, 2022.

General Authority: SDCL 34-20G-72(5)(f)(j).

Law Implemented: SDCL 34-20G-72(5).

44:90:04:21. Storage during transport. All cannabis or cannabis products being transported must be contained within an enclosed, locked area in the transport vehicle and out of public view. Samples of cannabis and cannabis products for testing must be transported in appropriately labeled sample collection containers with tamper-evident seals affixed that provide clear, lasting evidence that the package has previously been opened. All cannabis or cannabis products being transported to another medical cannabis establishment, other than samples for testing, must be transported within sealed containers identifying the recipient.

A cannabis product manufacturing facility or dispensary transporting any edible product requiring refrigeration to another establishment shall provide refrigerated transport. An establishment shall use temperature-controlled transport vehicles when necessary to prevent spoilage of the transported cannabis or cannabis products.

Source: 48 SDR 40, effective October 5, 2021; 49 DR 9, effective August 8, 2022.

General Authority: SDCL 34-20G-72(5)(f)(j).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:22. Conduct during transport. Only agents of the medical cannabis establishment who are listed on each transport manifest may be in the vehicle. Each agent shall wear an agent identification badge while in the vehicle. Any vehicle transporting cannabis or cannabis products shall travel directly to the destinations listed on transport manifest, making stops only:

(1) For meals, when the transport lasts more than three hours round trip;

(2) For rest periods required by law;

(3) To refuel; or

(4) Under exigent circumstances, including collisions, traffic stops, mechanical breakdowns, weather emergencies, or medical emergencies.

An agent may not remove the cannabis or cannabis products from the vehicle until arrival at the destination listed on the transport manifest, except under exigent circumstances in consultation with the department pursuant to §44:90:04:23.

An establishment agent shall make a vehicle used for the transport of cannabis or cannabis products immediately available for inspection upon request of the department.

Upon law enforcement contact, agents shall provide their agent identification badges and all transport manifests.

Source: 48 SDR 40, effective October 5, 2021; 49 SDR 9, effective August 8, 2022.

General Authority: SDCL 34-20G-72(5)(f)(j).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:23. Transport incident notification. Any traffic stop, breakdown, collision, or unscheduled stop lasting more than two hours involving a vehicle being used by a medical cannabis establishment to transport cannabis or cannabis products, must be reported to the department within one business day. Any theft or break-in involving a vehicle being used by an establishment to transport cannabis or cannabis products must be reported to local law enforcement and to the department within one business day.

If exigent circumstances require removal of cannabis or cannabis products from the vehicle prior to arrival at the destination listed on the transport manifest, the establishment agents shall make a good faith effort to contact the department for direction. If unable to contact the department, the establishment agents shall make a good faith effort to protect the shipment from diversion.

Source: 48 SDR 40, effective October 5, 2021; 49 SDR 9, effective August 8, 2022.

General Authority: SDCL 34-20G-72(5)(f)(j).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:24. Health and safety standards for storage. A medical cannabis establishment shall store cannabis and cannabis products, unless on display for sale:

(1) In secure, sealed containers that protect against damage from light, water, insects, or rodents; and

(2) Under environmental conditions, including refrigeration of any perishable edible product, that will protect against physical, chemical, or microbial contamination and damage from temperature or humidity.

Source: 48 SDR 40, effective October 5, 2021; 49 SDR 9, effective August 8, 2022.

General Authority: SDCL 34-20G-72(5)(f)(j).

Law Implemented: SDCL 34-20G-64, 34-20G-72(5).

44:90:04:25. Scales. A scale used at any point during the process of cultivating, manufacturing, testing, or dispensing of cannabis or cannabis products must be certified in accordance with SDCL chapter 37-21.

Source: 50 SDR 62, effective November 27, 2023.

General Authority: SDCL 34-20G-72(4)(j)(k).

Law Implemented: SDCL 34-20G-70(3), 34-20G-71.

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