South Dakota Legislative Panel Recommends Tighter Regulations On Medical Marijuana And Hemp Products

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“This committee, in my opinion, has only made it harder for patients to access medical cannabis.”

The rift between a South Dakota oversight committee and the state’s medical marijuana industry widened Tuesday in Pierre when the committee approved 11 motions, some of which called for tighter regulations.

The motions were not made public before the meeting, and the committee did not take public comment on individual motions. The committee acted on the motions while lacking attendance from four of the group’s 11 members.

The intentions of the Medical Marijuana Oversight Committee in proposing and approving some of the motions were unclear. The motions were not presented as formal rule change proposals or as bills for the legislative session that starts in January.

The topics of the motions varied widely and included recommendations for tighter regulations on the medical marijuana industry, tighter regulation of intoxicating products sold outside of the industry in convenience stores and smoke shops and statements of support or recommendations on an array of other issues.

“My understanding is these are just motions, correct?” said Sen. Lauren Nelson, R-Yankton, a committee member. “So, some of these motions that were approved today will never be heard of again, maybe. Some of these motions might become bills carried by one of us, somebody else that’s in the Legislature, and then we can have our discussion.”

Medical marijuana industry lobbyist Jeremiah Murphy asked that the minutes reflect that no advance public notice was given regarding the motions and that no public comment was taken on any of the individual motions.

“If you want to just call these ‘motions,’ that’s fine,” Murphy said, “But the key is that they not be considered anything like legislation because they were not posted in advance. A bill or resolution must be posted in advance of the hearing.”

The votes capped a combative meeting that was similar in tone to the committee’s prior meeting two weeks ago. That earlier meeting resulted in industry complaints about a day-long slate of invited speakers who presented mostly negative views about marijuana.

The committee’s membership consists of four legislators and seven non-legislators, including members from the medical, counseling, law enforcement and patient communities. The absent committee members Tuesday were all non-legislators: Francine Arneson, Kristi Palmer, Andrew Schock and Sioux Falls Police Chief Jon Thum.

At the end of Tuesday’s meeting, the committee took public comment from individuals, capped at two minutes each.

Kittrick Jeffries, with Puffy’s Dispensary in Rapid City, said the panel was “hashing out issues that the voters decided five years ago.” South Dakota voters legalized medical marijuana in 2020, and the state implemented the program in 2022. There are 17,137 patient cardholders in the state.

“This committee, in my opinion, has only made it harder for patients to access medical cannabis,” Jeffries said.

Emmett Reistroffer, with Genesis Farms Cannabis Company, called the panel a “show committee” and questioned the motivation of the chairwoman, Rep. Josephine Garcia, R-Watertown, noting she co-sponsored unsuccessful legislation earlier this year to repeal the state’s medical marijuana program.

“I don’t think you have any business chairing an oversight committee on a program that you publicly opposed in the last legislative session,” Reistroffer said. “Of course, you don’t like what I have to say, but I have two minutes. I am a citizen of the state of South Dakota.”

For that, Garcia muted Reistroffer, but then unmuted him.

“You can’t mute a member of the public,” Reistroffer said upon being unmuted. He said the action “further cements the fact that this is a show committee.”

Garcia again muted him.

“The reason that gentleman was gaveled out was for many reasons,” Garcia said. She said he “had things going up online, defaming or whatever he was doing to me.”

She added, “I believe I’ve been fair, more than fair, and it’s just a disgrace.”

In further public comments, Rep. Travis Ismay, R-Newell, who is not a member of the committee, alleged he saw a state health inspector hug an industry representative outside the room. Ismay was the prime sponsor of the bill to repeal the medical marijuana program that Garcia cosponsored, and he also previously attempted to put an initiative on the ballot to repeal the program.

“I don’t believe that they’re that trustworthy,” Ismay said of the industry at large.

Department of Health Secretary Melissa Magstadt responded that no Department of Health inspectors were present at the meeting. Ismay returned to the microphone, saying he “might have misspoken or something,” saying he may have misidentified the people he saw.

Genesis Farms lobbyist Mitch Richter pointed back to the prior committee meeting during which Garcia—a physician—said one of her former patients used artificial intelligence to fake documents, obtain medical marijuana, buy 3 ounces, and sell it for $10,000 a week.

Richter said the allegations don’t “hold water.”

“If you’re making $10,000 on 3 ounces of marijuana, I want to talk to you,” said Richter, who also said the committee should be repealed.

Reistroffer later told South Dakota Searchlight that 3 ounces of medical marijuana typically sell for around $600.

Garcia repeatedly defended the committee and herself, saying the panel stayed within its oversight mandate and the actions taken were “just motions.”

“For those that were disrespectful, shame on you,” she said.

Photo courtesy of Chris Wallis // Side Pocket Images.

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