Section · Administrative Rules of South Dakota · View on sdlegislature.gov ↗
The department may, in addition to, or in lieu of, suspension, revocation, or any other penalty allowed pursuant to SDCL chapter 34-20G, assess fines against an establishment based on the following violations of SDCL chapter 34-20G or this article: (1) Category 1 violation: Violation Statute or Rule Violated (a) Sale of cannabis or cannabis product to non-cardholder SDCL 34-20G-74, § 44:90:08:03 (b) Diversion of cannabis or cannabis product outside the regulated distribution system SDCL subdivision 34-20G-72(4), § 44:90:03:05 (c) Possessing cannabis or cannabis products obtained from outside the regulated distribution system or from an unauthorized source Subdivision 44:90:04:03(3) (d) Knowingly submitting false records or documents with certificate applications and certificate renewals SDCL 34-20G-77 (e) Failure to cooperate with department investigators during the course of an inspection or investigation SDCL 34-20G-69, subdivision 44:90:12:01(2) (f) Packaging or labeling cannabis or cannabis product that directly impact patient safety Chapter 44:90:10 (g) Failing to comply with mandatory testing and sampling Chapter 44:90:09 (h) Knowingly adulterating or altering or attempting to adulterate or alter any form of medical cannabis after sampling has occurred Section 44:90:09:07.01 (i) Manufacturing a cannabis product with an additive or solvent above allowable level Sections 44:90:07:03, 44:90:09:02 (j) Cultivating cannabis with a pesticide that contains an active ingredient not approved by the department for use Sections 44:90:05:09, 44:90:05:10 (k) Sale or unauthorized transfer of cannabis that does not meet the testing requirements Sections 44:90:05:10, 44:90:07:03 (2) Category 2 violation: Violation Statute or Rule Violated (a) Medical cannabis sales in excess of the current patient purchase limitations SDCL subdivision 34-20G-1(1), § 44:90:03:09 (b) Manufacturing a product using cannabis waste distribution system Subdivision 44:90:09:12(2) (c) Manufacturing edible cannabis products without a food service license Section 44:90:07:09 (d) Performing extraction methods without prior department approval Sections 44:90:03:08, 44:90:07:05 (e) Making misstatements or omissions in the inventory tracking system Section 44:90:11:01 (f) Failure to report a transfer Section 44:90:11:04 (g) Sharing office space with a practitioner SDCL 34-20G-67 (h) Advertising directly targeting minors or non-cardholders Section 44:90:10:15 (i) Failure to immediately report theft Section 44:90:04:03 (j) Failure to maintain onsite records as required Chapter 44:90:11 (k) Utilizing advertising material containing prohibited content Section 44:90:10:17 (l) Failure to maintain security and camera requirements Sections 44:90:04:05, 44:90:04:06, 44:90:04:07, 44:90:04:08, 44:90:04:09, 44:90:04:10 (m) Improper handling, storage, or disposal of cannabis, cannabis products, or cannabis waste Sections 44:90:04:21, 44:90:04:24, 44:90:03:05, 44:90:09:12, 44:90:11:03 (n) Sale of inhalable cannabis product to a patient under twenty-one years of age Section 44:90:02:16.01 (o) Sharing premises with a residence or business Section 44:90:04:13 (p) Sharing premises with another medical cannabis establishment without common ownership Section 44:90:04:04 (q) Pesticide application by an agent who does not hold a valid applicator certification Section 44:90:05:07 (3) Category 3 violation: Violation Statute or Rule Violated (a) Failure to comply with transfer requirements Sections 44:90:04:19, 44:90:04:20, 44:90:04:21, 44:90:04:22, 44:90:04:23, 44:90:04:24 (b) Failure to follow advertising guidelines Section 44:90:10:14.01 (c) Failure to notify the department of any change in operating hours or failure to have an agent on site for purpose of inspections during operating hours Subdivisions 44:90:03:05(3), 44:90:12:01(2) (4) Category 4 violation: Violation Statute or Rule Violated (a) Failure to follow and maintain standard operating procedures Section 44:90:03:05 (b) Establishment website or social media account does not utilize measures to properly verify a visitor's age each time Section 44:90:10:16 (c) Transferring of establishment ownership without prior department approval Section 44:90:03:04 (5) Category 5 violation: Violation Statute or Rule Violated (a) Failure to notify department within seven days of a change in management Section 44:90:04:01 (b) Failure to provide agent identification badges Section 44:90:04:11 (c) Failure to display required agent badges Section 44:90:04:12 (d) Failure to enforce visitor rules Sections 44:90:04:13, 44:90:04:14 (e) Failure to complete required training in the inventory tracking system Section 44:90:04:16 (f) Failure to comply with scale requirements Section 44:90:04:25 The department may assess fines for multiple violations, however, the total fines assessed per inspection may not exceed ten thousand dollars.
Source: 52 SDR 10, effective August 4, 2025.