SIOUX FALLS, SD (KELO.com) – As South Dakota prepares to implement new laws and regulations for medical cannabis, one industry expert is sounding an alarm about the license lottery set up in Sioux Falls.
The Sioux Falls City Council voted to limit licenses for cannabis dispensaries to 5. Those interested in obtaining a license can submit an application. When applying, the applicant must pay an application fee of $25,000 and a licensing fee of $75,000. The city will then hold a lottery among the submitted licenses to determine who gets the license. Those who don’t have their application selected will have their fees refunded.
Emmett Reistroffer, a consultant for medical cannabis businesses, believes the current interpretation of the new application process by the city attorney’s office could lead to out-of-state interests exploiting a loophole that could have a business entity or individual submit multiple applications and then squeeze out local business people.
Reistroffer told the City Council during public comment that to ensure a level playing field, they should limit the applications to one per location.
The Council didn’t indicate if they would consider his suggestion.
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