Council backs medical marijuana regulations to allow the industry in Mitchell

During Wednesday’s special session, the council unanimously approved and passed the second reading of two ordinances setting the city’s rules for medical marijuana facilities in Mitchell. While medical marijuana will officially become legal in the state on July 1, city attorney Justin Johnson insisted that the state’s regulations that the city plans to follow will likely not be passed until October or November. Hence, Johnson said the city would not issue licenses until the state adopts its own.

“This is by no means intended to be a complete and final document, we may have to optimize it further as soon as we receive additional information about the state regulations,” said City Councilor Stephanie Ellwein.

The city’s medical marijuana rollout comes after voters approved a measure to legalize medical marijuana in South Dakota during the November election. Cities across the state now have the power to implement their own regulations in their respective cities. However, these regulations can change as the state enacts its regulations. Johnson said Mitchell’s ordinances would be no different.

Earlier, Johnson stressed the importance of the city getting its own regulatory measures in place before July 1, adding that if the city didn’t legislate, “it’s essentially the Wild West.”

Under the city’s ordinance, which sets zoning regulations for medical marijuana facilities, licensed medical marijuana companies that sell, manufacture, and grow medical marijuana are allowed in the Highway (HB) -oriented districts, transportation, storage, and trade districts (TWC) as well operate in industrial districts and central business (CB) districts.

“This applies to cannabis cultivation facilities, cannabis production facilities, test facilities and pharmacies. In the case of pharmacies, there is the additional regulation of buffer zones around certain species from other countries, ”Johnson said during the meeting on 25.

The planning and building commission approved the recommendation of the building regulations in a 5: 1 vote at the end of May.

Although medical cannabis will be legal in South Dakota in about a month, it is still being criminalized at the federal level, adding legal gray areas to the states and cities that legalized it. To legally purchase medical marijuana from licensed establishments, one must have a medical card issued by an authorized doctor.

The zoning ordinance also specifies which areas of the city are prohibited from operating licensed medical marijuana facilities. According to the regulation, no cannabis pharmacy is allowed to operate within 100 meters of an educational institution, a religious institution, a day care center (except in family dormitories), a preschool, a kindergarten, a detention center and a psychiatric institution. While Mitchell’s ordinance provides for a 300-foot buffer zone for schools, Johnson noted that state law mandates a 1,000-foot buffer zone. Therefore, according to Johnson, facilities must adhere to the 1,000-foot buffer zone of schools.

“Our ordinance wouldn’t require the 1,000-foot buffer around schools, but as state law is written, they still might not be in that area,” Johnson said. “We chose 300 feet because it represents the distance of a city block.”

Pharmacies in the city are not allowed to operate within 300 meters of another cannabis dispensary. In addition, all cannabis facilities in residential areas as well as in neighborhood shopping areas, public land, institutional areas, conservation districts, and urban development and planned unit development districts are prohibited. All unlicensed cannabis operations are prohibited in all zoning.

Johnson said there was a legal requirement that pharmacies “should not be prohibited from operating” and noted that this was taken into account in the decision to establish the 300-foot buffer zone.

In response to recent concerns from local residents suggesting expanding the 300-foot buffer zone to 150 feet or beyond, Mitchell Mayor Bob Everson stated that extending the buffer zone beyond 300 feet would “make no sense” as this would restrict marijuana dispensaries to shops in the respective approved zones, especially in the downtown area.

The distances between the buffer zones are measured “from the next point on the property line, but without public rights of way”. These buffer distance requirements can, however, be dispensed with within the framework of the deviation procedure, which would require approval from the respective city administrations.

License conditions, consumption rules

On the licensing side, the city has four types of medical marijuana facility licenses including cannabis cultivation, cannabis pharmacy, cannabis product manufacturing, and cannabis testing licenses.

The city ordinance stipulates a maximum of five licenses for pharmacies. However, the remaining available licenses have no limit. Johnson said all related cannabis operations must continue to adhere to zone regulations and buffer zones.

The city has set an application fee of $ 5,000 for all licenses, which must be renewed annually at a cost of $ 5,000. All employees in the marijuana facilities must be at least 21 years of age. Licensed establishments must also follow strict guidelines in order to operate in accordance with city ordinance.

Jason Bates, a Mitchell mayoral candidate who is running a June 8 election, addressed several questions and concerns he has about the city’s licensing process. His questions included whether a person could buy all five pharmacy licenses and whether a license holder could sell a license at a price higher than the city’s $ 5,000 fee.

“If I own a license and want to sell it, I have to sell it for the same price I paid for it, or can I upgrade it and sell it like a liquor license,” Bates asked.

While the city’s ordinance doesn’t prohibit license holders from selling or transferring their license, Johnson said it would need council approval. Therefore, if licensees wish to sell their licenses above the city-set fee of $ 5,000, the council has the power to refuse to sell.

“We don’t specifically prohibit a company from selling a license, but if they want to sell or transfer ownership it needs council approval,” said Johnson.

Although city ordinance doesn’t prohibit a person from buying all five pharmacy licenses, Johnson said the lottery system would make it “very unlikely” for such a scenario to occur. Applications that are considered in the lottery system must meet a long list of requirements, such as: B. ensuring safety procedures, compliance with building codes, proof of financial responsibility and a sales tax license. A criminal background check is also performed on applicants, along with evidence of overdue tax payments.

One of the most notable guidelines for running pharmacies is the implementation of a verification lobby separate from the part of the store where marijuana is displayed and sold at the facility. This allows each facility to verify that a visitor who wants to enter has a medical marijuana card. Selling must also be done within the company to eliminate the internet or distance selling of medical marijuana.

“Only holders of a cannabis card can enter the retail area in pharmacies. The average kid on the street can’t go to the retail area, ”Johnson said.

The Licensing Ordinance regulates the use of licensed medical marijuana in the city. No one, including those with a health insurance card, is allowed to smoke cannabis in public places, correctional facilities, public transportation, and cannabis facilities. In addition, it is prohibited to operate a vehicle, boat, or airplane while it is under the influence of marijuana.

Marijuana facilities must also adhere to signage rules, which city ordinances prohibit the display of the words “cannabis” or “marijuana” and other words commonly used to identify marijuana.