Medical Cannabis Dispensary and Testing Facility Licensing Information

The application period begins at 2:00 p.m. on Friday, October 29, 2021 and closes at 5:00 p.m. on Monday, November 15, 2021. Applications will be accepted during normal business hours.

Applications for the initial issuance of dispensary licenses will not be accepted after 5 p.m. on Monday, November 15, 2021.

Applications will be accepted beginning at 2:00 p.m. on Friday, October 29, 2021.

No.

Sioux Falls City Ordinance 121.002(b)(2) states that there is a cap of five (5) medical cannabis dispensaries authorized to operate in the City of Sioux Falls. There is no such cap for medical cannabis testing facilities.

The City of Sioux Falls adopted a lottery process in order to select the potential medical cannabis dispensary licensees. See Sioux Falls City Ordinance 121.003(a)(3).

Yes, the City will conduct its lottery in Sioux Falls and thus eliminate the need for any City of Sioux Falls selectees to participate in the State lottery selection process.

Applications for medical cannabis dispensaries and medical cannabis testing facilities must be submitted to the City Licensing Office, located on the first floor of City Hall, 224 W. 9th St., Sioux Falls, SD 57104. (Please note the change in submission location from Carnegie Hall to City Hall as reflected in the application currently available on the City’s website at https://siouxfalls.org/cannabis.)

No, it must be submitted in person.

For a complete listing, see the application checklist which is on the first page of the application.

The City of Sioux Falls is taking measures to ensure an equal opportunity for all applicants to obtain a dispensary license.

The Lottery will be held at 10:00 a.m. on November 17th, 2021.

In the Commission Room, 1st Floor, City Hall, 224 West 9th Street, Sioux Falls, SD 57104.

Yes.

Yes, the lottery itself, and thus the applicants and order of selectees, will be public.

1. On the outside of the sealed envelope, you must write your legal business name, the business’s primary contact name, email address and phone number.
2. A copy of the Certification for Property Use as Medical Cannabis Establishment. Original signed form must be included inside the sealed envelope.
3. Two checks written payable to the City of Sioux Falls with the legal business name written in the memo line. A separate check must be provided for the Application Fee and the Licensing Fee. The City will NOT accept one check for both fees.

Sioux Falls City Ordinance 121.003(a)(2)E.2 states that only one application per location (legal description) is allowed.  Legal descriptions will be noted and no subsequent applications for that legal description will be accepted. If, however, someone submits an application for a location for which they have no legal interest in the property and a subsequent applicant can prove that they have a legal interest in the property, then the City will take the application of the person/entity who has the legal right to occupy the space.

Sioux Falls City Ordinance 121.003(a)(2)E.2 states that the location is defined by using the property’s legal description.

You can contact the Register of Deeds office for your appropriate county.

No, Sioux Falls City Ordinance 121.003(a)(2)E.2 states that only one application per location (legal description) is allowed.

The Business’s Primary Contact is defined as the person who can address questions or issues related to your license application or business license. This contact will receive application status updates, license notifications, and copies of the business license at the email provided.

Yes. Per State law, both non-profit and for-profit businesses must be registered with the Secretary of State's office. Out-of-state businesses must also be registered before doing business in this State.

You can contact the South Dakota Secretary of State at 605-773-3537 or sdsos.gov to inquire about forming a corporation or LLC. If not forming a corporation or LLC, you can contact the Secretary of State’s office or your county Register of Deeds office to file a Fictitious Name Statement.

On-site Manager must have the authority to make decisions regarding the licensed premises and must have access to and control over the licensed premise and may receive official correspondence, including enforcement correspondence, from the City.

No, City Ordinance 121.003(a)(2)E.1 states that the application requires a legal business name, which requires registration of either a fictitious business name or separate business entity formation.

Yes. For more information, please contact the South Dakota Department of Revenue, 300 South Sycamore Ave, #102, Sioux Falls or by calling 367-5800.

You can contact the South Dakota Office of the Attorney General or visit their website at: https://atg.sd.gov/LawEnforcement/Identification/default.aspx.

State Background Checks as defined by the South Dakota Attorney General.

For the dispensary locations, the Application Fee is $25,000 and the Licensing Fee is $50,000. For testing facilities, the Application Fee is $1,500 and the Licensing Fee is $5,000.

Medical cannabis dispensary applicants must provide two separate checks with the application, payable to the City of Sioux Falls, one check for $25,000 for the Application Fee and one check for $50,000 for the Licensing Fee. The checks should state the legal business name in the memo line and should be attached to the outside of the sealed envelope.

Medical cannabis testing facility applicants must provide two separate checks, payable to the City of Sioux Falls, one check for $1,500 for the Application Fee, and one check for $5,000 for the Licensing Fee. The checks should state the legal business name in the memo line and should be attached to the outside of the sealed envelope.

No, regular checks are preferred.

Upon receipt of applications, a copy of both the checks will be taken and maintained with the application. The City Finance department will take custody of the actual checks. Checks for Application Fees (not Licensing Fees) will be deposited in the City’s bank account within one to two business days of receipt. Processing of applications will not be considered complete until the Application Fees “Clear the Bank.”

“Clear the Bank” is defined as seven (7) business days after the date a check shows as deposited in the City’s bank account.

The City will not immediately deposit the Licensing Fees into the City’s Bank Account, but will hold the checks for the Licensing Fees in a secure location. Upon receipt of registration from the State of South Dakota, the Licensing Fee held by the City will be deposited into the City’s bank account ($50,000 Licensing Fee for Medical Cannabis Dispensary and $5,000 for Medical Cannabis Testing Facility). No license may be issued by the City to the applicant prior to confirming the check for the License Fee “Clears the Bank”.

Licensing Fees for applicants that do not receive licenses or whose applications are rejected or withdrawn will not be deposited in the City’s account.

Since all Application Fees are deposited by the City upon receipt of applications, applicants who do not receive a license due to a cap in the number of licenses (Medical Cannabis Dispensary), or whose applications are rejected or withdrawn, will have their Application Fees refunded to the applicant.

Upon issuance of all available Medical Cannabis Dispensary licenses by the City, applicants not receiving a license will be notified and given 10 business days to pick up any uncashed check for the License Fee from the City’s Finance Office. After that 10-day period, all checks for License Fees not deposited will be destroyed.

Yes, applicants who are denied a license from the City of Sioux Falls or the State of South Dakota will be refunded their Application Fee.

The first deadline following the lottery for applying for a CUP is December 6, 2021. For additional information, contact the City Planning and Development Services office at (605) 367-8888.

No. Licenses are allocated based on the location (legal description) of the proposed medical cannabis establishment.

Yes. See City Ordinance 121.003(a)(2)F.

No. You must complete the licensing process in order qualify for a transfer of the license.

No, you must abide by the State’s timeline requirements for seeking a registration certification from the State Department of Health independent of whether your City of Sioux Falls application process is complete. Consult with your attorney with any legal questions as to the entire medical cannabis establishment process.

No. Please contact the South Dakota Department of Health for more information.

You can contact the City’s Licensing Specialist at 605-367-8082.