Posted: August 27, 2021
Rapid City
Agenda Item Summary

Agenda Item Ref. #: WS090121 18

Agenda Item Title:

Second Reading and Recommendation of Ordinance No. 6505 An Ordinance to Adopt Rules Governing Medical Cannabis Establishments by Amending Chapter 5.74 of the Rapid City Municipal Code

Origination Group:
City Council Working Session
Origination Meeting Date:
09/01/2021
City Council First Reading Date:
09/07/2021
City Council Second Reading Date:
09/20/2021
Staff Contact:
Carla Cushman, Assistant City Attorney, Joel Landeen, City Attorney and Pauline Sumption, Finance Director
Agenda Item Summary:
This ordinance would adopt a City licensing scheme for all medical cannabis establishments – cultivation facilities, manufacturing facilities, testing facilities, and dispensaries. These establishments must also be licensed by the SD Department of Health. The ordinance adopts an application procedure for establishments; set limits for number of dispensary licenses available (1 for every 5000 in population); sets terms for license suspension and revocation and appeal of such decisions to Council; requires active use of the licenses; prohibits transfer of the licenses to a different holder or location; and sets operational procedures for some establishments. Licensees will pay an annual fee of $5000; for the first year, that fee will be broken up into a $1500 application fee and a $3500 license fee. More information is available on the attached memo. **After the 9/1/21 working session, the ordinance was amended to include a provision that the Finance Director, for good cause shown by the licensee, could extend the 120 day timeframe for dispensaries to commence operations by an additional 180 days, for licenses issued in 2021 and 2022 only. This language allows for an increased start-up time for dispensaries to procure medical cannabis for sale at the start of South Dakota’s medical cannabis efforts.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

Login Form