Medical cannabis dispensary operators in South Dakota, already facing higher licensing fees, recently vented concerns about competition from the illicit market in the state.
Alan Welsh, a managing partner of four-store MMJ chain Dakota Herb, was among the dispensary executives who told South Dakota’s Medical Marijuana Oversight Committee on Monday that they don’t believe the state is doing enough to halt the sale of illicit cannabis products.
According to South Dakota Public Broadcasting, Welsh said it is unfair he is required to pay testing and compliance fees to sell regulated MMJ products while some operators are selling THCA and other synthetic cannabis products.
THCA is the biosynthetic precursor to THC that becomes intoxicating THC when heated.
“When the state talks about tracking from seed to sale, we spend $600 a week just on Metrc tags to have to be tag every plant to track it,” Welsh told the Oversight Committee, according to South Dakota Public Broadcasting.
“We pay $1,000 to test every batch and make sure it passes testing. Our facilities have to be compliant; we have a security system in our dispensary that the state has access to.”
In addition to those costs, the state Legislature’s Rules Review Committee voted 4-1 on Tuesday to “finalize a nearly 70% hike” to MMJ business licensing fees, the South Dakota Searchlight reported.
MMJ business licenses now will cost $9,000 annually, up from the previous fee of $5,310.
While acknowledging that unregulated marijuana sales were a problem, Brian Mueller, a commission member and the Pennington County sheriff, said his agency needed more information before it could act.
“It comes down to an issue of testing compacity in the state for us right now before we go seize a bunch of products and send it in some place to get tested,” Mueller said, according to South Dakota Public Broadcasting.
“So, before we send a letter out, we waited for this meeting.”
The Medical Marijuana Oversight Committee is expected to meet again in October, the Vermillion-based broadcaster reported.
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