South Dakota Cannabis News Recap 4/12/22
April 5 – Flandreau Santee Sioux Tribe’s cannabis program covered by national news outlet, Politico
Cannabis Policy Reporter at Politico Natalie Fertig writes about some of the ways in which Native American tribes are being left behind in the cannabis industry largely due to laws enacted on the federal level. Fertig discusses the current state of cannabis on tribal lands in South Dakota. Although the Flandreau Santee Sioux Tribe legalized recreational and medicinal marijuana in 2014, the tribe’s market would not have been large enough to sustain a dispensary without state-wide legalization.
However, as soon as South Dakota legalized medicinal marijuana, the Native Nations dispensary opened its doors to anyone in the state who has a medical card. Since tribes are sovereign land, the Santee Sioux Tribe was not interested in negotiating an agreement with the state especially if it meant the possibility of handing over the tribes rights to tax and regulate their products. The fact that the dispensary is on sovereign land has many benefits to medical card patients including the fact that “Native Nations produces and sells all of its own products, regulated by the tribe, and sets its own prices, taxes, and fees. Its prices are lower not only than most states within driving distance, but even the illegal recreational market in South Dakota.” The Santee Sioux Tribe is now working with other tribes who also aren’t interested in making agreements with the state when it comes to their cannabis markets. Native Nations hopes to bring their products and their brand to other tribal lands around the United States.
Although the Flandreau Santee Sioux Tribe has had great success with remaining sovereign in the cannabis industry up to this point, they are concerned that the Federal Government could get involved. “At one point before the repeal of the Wilkinson Memo, representatives from the tribe heard rumors that there was a pending raid on their medical marijuana facility. They flew out to Washington, D.C. and showed the BIA their tribal cannabis regulatory ordinance.” Pearman states: “It seemed like the state of South Dakota was pressuring the federal government to take enforcement action, because they couldn’t do it themselves,”
April 5 – Yankton County considers the market for recreational cannabis
During their meeting on April 5th, the Yankton County Commission discussed the county’s plans if recreational cannabis legalization passes this November. Chairman Joseph Healy supports the discussion of future plans and the Cannabis Industry Association of South Dakota’s Director believes planning for the inevitable is a good idea, stating: “‘I believe they need about 17,000 (signatures); they’ve collected about 20,000 and I think their target is beyond that just to make sure they’ve got a high validity rate…There’s no guarantees in life, but I’d bet the farm on that being on the ballot.’”
While a lot of people are hopeful that cannabis legalization will be on the ballot this November and believe it wise to start preparing for the recreational market, Commissioner Dan Klimisch argues the discussion is premature. Klimisch states: “It’s great to talk about it, but there’s so many hurdles and it’s not even on the ballot yet. When it is, maybe it passes and maybe it doesn’t. And even if it does pass, the state is going to change things with it like they always do. It might even go to another lawsuit. It’s great to be aware of that, but there’s so many unknowns that I hesitate to get too far down in the weeds. We have a really good framework with our medical (statutes) and we’ll probably treat rec similar with the zoning where we’d want it in Lakeside Commercial, Commercial and Ag. I think we’ve done a great job of having a good framework, and we’re going to have to wait until the state gives us a little guidance before we get into it too deep.”
Whether Yankton County continues to have discussions on the subject or not, the CIASD Director is pleased that some counties are at least beginning talks, stating: “I’ve been to a lot of county meetings, but this is a prime example of what good local government looks like. I tend to agree (that) the zoning ordinance you’ve put together with medical looks really good. It’s the path of least resistance when recreational does come.”
Healy listed some of the factors that need to be considered when/if recreational legalization passes, “I see it as us allowing or disallowing home-grow, identifying the zones that it’s going to be legal in, and the other thing is going to be, are we going to limit the number of licenses?”
Yankton Daily: “County Begins Recreational Marijuana Discussion”
April 7 – Jamie Smith, candidate for Governor, supports recreational cannabis legalization
The South Dakota Standard spoke with current Representative and Governor candidate Jamie Smith on his plans for potentially becoming South Dakota's next Governor this November. Smith states that he is focused on working with the people of South Dakota for the betterment of the state. Along with affordable housing, high-quality education and healthcare, and opposing a state income tax, he states that he “...will allow recreational marijuana become law and will not seek to overturn ballot measures approved by voters.” Smith is hoping to gain as much support as he can over the next few months and is aware that he needs support from Republicans and Independents in order to win, “‘It’s a big task, and one I can’t do alone,’ he said. ‘This campaign is ours, together.’” South Dakotans will have three options for Governor this year, Representative Jamie Smith, Representative Steve Haugaard, and current Governor Kristi Noem. The election will take place on November 8th, 2022.
The South Dakota Standard: “Democrat Jamie Smith aware he needs to buck the trend of Republican success to be elected governor”
April 7 – Native Nations seeing substantial business
Since opening on July 1st of last year, Native Nations Dispensary has been consistently busy. The Cannabis Chief Operations Officer says that they get around 300 to 500 customers everyday. With 10,000 registered patients in the Flandreau Santee Sioux Tribes medical cannabis program, Seth Pearman the Tribal Attorney General states that a lot of their patients come from outside of South Dakota. “We’ve limited the amount we’re selling right now because we don’t have enough product for everyone to buy as much as they want, especially in flower which is the big seller,” Pearman said. Native Nations hopes to open a second grow facility to increase their amount of product. Their current facility produces 50-80 pounds of cannabis a week while the new one will produce 130-150 pounds.
Keloland: “Native Nation Cannabis selling faster than it can grow”
Flandreau Santee Sioux Tribe’s Attorney General Seth Pearman discusses Native Nation’s growth on Keloland