On February 23, in a close vote of 18-17 in favor, the South Dakota Senate approved a recreational cannabis bill. This bill, SB 3, would legalize recreational cannabis for adults 21 and over. They can purchase and carry up to one ounce from licensed retailers. SB 3 comes from Senator Michael Rohl, R. He, along with other lawmakers, wanted to create a bill similar to Amendment A that voters approved of in 2020. The major difference between SB 3 and Amendment A is home cultivation is banned under SB 3. It had previously been legal under Amendment A. 

Under SB 3, the Department of Revenue will be responsible for the regulation of the adult-use cannabis program. They will also be responsible for creating and maintaining rules surrounding the cannabis industry, including registration and transportation. Local municipalities can opt out of allowing recreational cannabis retailers and producers from opening in their areas. However, they can’t restrict those consuming cannabis in the privacy of their own homes. 

A 15 percent excise tax would apply to each recreational cannabis purchase. The revenue would go towards a cannabis fund subject to appropriations “through normal budget process,” according to the bill. Finally, no one with any felony conviction can hold a business license of any sort. 

Governor Noem’s Response to Recreational Cannabis

While activists cheer the advancement of recreational cannabis, something they legalized over a year ago, the South Dakota governor isn’t as excited. Governor Kristi Noem, R, has continuously pushed against any cannabis legalization, including medical cannabis, which activists also legalized in November 2020. 

Last year, Governor Noem attempted to push back the implementation of medical cannabis by introducing a bill to stall the start date from July 2021, to October 2022. Activists were unsure what the governor would have wanted to do in the time in between, but they suspected Governor Noem would try to rewrite some of the rules they approved by 70 percent. 

Additionally, Governor Noem sued the activists behind Amendment A, claiming the amendment broke the single clause law. The case went all the way to the South Dakota Supreme Court, where the justices agreed and overturned Amendment A

Now, Governor Noem has said she could potentially veto SB 3, should it become approved by the House and make it to her desk. At a press conference, Governor Noem didn’t give a clear answer regarding a veto, but did say, “I still believe I haven’t seen anybody get smarter from smoking dope.”

Future of South Dakota Recreational Cannabis

Before SB 3 can even be considered by Governor Noem, it must make it through the House of Representatives. First, the House must introduce the bill and then assign it to a committee or committees. Once there, SB 3 will be debated and if approved, will go to the House floor for a full Chamber vote. The House will vote on SB 3 and any other amendments representatives bring forward. If these amendments are approved, then the amended version of SB 3 will be debated by the Senate once more. Should it pass there, then it will go to Governor Noem’s desk.

If Governor Noem does decide to veto SB 3 at that point, then the Senate and the House can vote to overturn the governor’s veto. Each chamber will have to approve of SB 3 with a ⅔ majority vote. 

There are a lot of questions surrounding the path SB 3 will take. Activists are currently collecting signatures for another Amendment for the 2022 ballot. This is a reworded Amendment A that does not violate the single clause rule. However, they have been struggling to collect signatures, because of weather restrictions and the continuance of the Covid-19 pandemic. More and more voters are beginning to disapprove of Governor Noem when it comes to how she handled cannabis over the past few years. The governor is up for reelection later this year. As more information becomes available, we will update you with the latest.

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