January 16, 2020

The start of each session of the legislature is comparable to visiting your doctor for a full physical examination.  It’s a good thing that usually turns out well, at which point one feels terrific but there are always those items that loom over the future with dread . . . like being reminded you’re overdue for a colonoscopy.

In spite of some odd moments of angst and those disappointments with some of the decisions, the South Dakota Chamber of Commerce appreciates the legislators, Governor’s staff and Cabinet officers, along with all of the professional public servants who work hard to make sure public services address the most urgent needs of the state’s citizens.  It is a privilege for the Chamber to participate in this process and to represent the needs and concerns of its members.

New Faces

As reported before session there have been four people who resigned from their legislative seats since the 2019 session.

v  Justin Cronin (R-Gettysburg)

v  Alan Solano (R-Rapid City)

v  Stace Nelson (R-Fulton)

v  Lynne DiSantos (R-Rapid City).

Here are the new legislators appointed to these positions:

v  Senator Justin Cronin (R-Gettysburg) – Replaced by House member John Lake (R-Gettysburg).

o   James Wangness (R-Miller) - appointed to John Lake’s House seat

v  Senator Alan Solano (R-Rapid City) - replaced by Helene Duhamel – a former KOTA news anchor

v  Senator Stace Nelson (R-Fulton) – Replaced by House member Kyle Schoenfish (R-Scotland)

o   Marty Overweg (R-New Holland) appointed to Schoenfish’s House seat

v  Senator Lynne DiSantos (R-Rapid City) -- Replaced by Jessica Castleberry (R-Rapid City)

I would be a liar
If I was to say to you
Girl, we couldn't get much higher

The Doors “Light My Fire”

Speaking of “getting much higher”, South Dakota to Vote on Legalizing Marijuana – Twice

Initiated Measure 26 (IM 26) – Will Legalize Marijuana for Medical Use

From the Secretary of State’s Office:  An initiated measure currently requires 16,961 valid signatures in order to qualify for the ballot. “Per South Dakota Codified Law § 2-1-16, our office conducted a random sample of the petition signatures and found 74.65 percent to be valid,” stated Secretary Barnett. Based on the results of the random sample, 25,524 signatures were deemed valid.

If it passes in November, IM 26 will change a statute allowing marijuana to be used for medical purposes.  It will take effect July 1^st 2021 and could be altered by the Legislature during the 2021 session.  Here is the official Attorney General’s Explanation that will appear on the ballot:

Title: An initiated measure to legalize marijuana for medical use.

Explanation:

This measure legalizes medical use of marijuana by qualifying patients, including minors. "Medical use" includes the use, delivery, manufacture-and for State residents, cultivation-of marijuana and marijuana-based products to treat or alleviate debilitating medical conditions certified by the patients' practitioners.

South Dakota patients must obtain a registration card from the State Department of Health. Non-residents may use out-of-state registration cards. Patients may designate caregivers to assist their use of marijuana; the caregivers must register with the Department'

Cardholders may possess 3 ounces of marijuana and additional amounts of marijuana products. Additionally, if a resident cardholder is allowed to grow marijuana plants the cardholder may possess a minimum of 3 plants, as well as marijuana and products made from those plants.

The measure legalizes marijuana testing, manufacturing, and cultivation facilities, as well as marijuana dispensaries. These establishments must register with the Department. The measure legalizes some substances that are considered felony controlled substances under current State law. Marijuana remains illegal under Federal law.

The measure limits State and local law enforcement's ability to assist Federal law enforcement authorities.

The 9S-section measure contains numerous other provisions not described here. It will likely require judicial or legislative clarification.

There’s More

Constitutional Amendment A (CA-A) - would legalize, regulate, and tax marijuana and require the Legislature to pass laws regarding hemp, including laws to ensure access to marijuana for medical use.

From the Secretary of State’s office:  A constitutional amendment currently requires 33,921 valid signatures in order to qualify for the ballot. “As outlined in South Dakota Codified Law § 2-1-16, our office conducted a random sample of the petition signatures and found 68.74 percent to be valid,” stated Secretary Barnett. Based on the results of the random sample, 36,707 signatures were deemed valid.

If passed, the ballot measure will amend the Constitution of South Dakota effective July 1^st 2021 and cannot be altered by the legislature.  The only way to change this amendment is to have another statewide public election.

Here is the official Attorney General’s Explanation that will appear on the ballot:

Title:  An amendment to the South Dakota Constitution to Iegalize, regulate, and tax marijuana; and to require the Legislature to pass laws regarding hemp as well as laws ensuring access to marijuana for medical use.

Explanation:

This constitutional amendment legalizes the possession, use, transport, and distribution of marijuana and marijuana paraphernalia by people age 2I and older. Individuals may possess or distribute one ounce or less of marijuana. Marijuana plants and marijuana produced from those plants may also be possessed under certain conditions.

The amendment authorizes the State Department of Revenue ("Department") to issue marijuana-related licenses for commercial cultivators and manufacturers, testing facilities, wholesalers, and retailers. Local governments may regulate or ban the establishment of licensees within their jurisdictions.

The Department must enact rules to implement and enforce this amendment. The amendment requires the Legislature to pass laws regarding medical use of marijuana. The amendment does not legalize hemp; it requires the Legislature to pass laws regulating the cultivation, processing, and sale of hemp.

The amendment imposes a I5o/o tax on marijuana sales. The tax revenue will be used for the Department's costs incurred in implementing this amendment, with remaining revenue equally divided between the support of public schools and the State general fund.

Judicial clarification of the amendment may be necessary. The amendment legalizes some substances that are considered felony controlled substances under current State law. Marijuana remains illegal under Federal law.

What Do You Think? 

The Board of Directors of the South Dakota Chamber of Commerce and Industry is worried about the impact that legal marijuana will have on an already scarce workforce.  The Board met with the proponents at the December board meeting and had a vigorous and extensive discussion.  The Board has directed the staff to do additional research on the experiences of other states and the potential political viability of these proposals.

Please use click here to send a note to express your concerns or opinions about these ballot measures.

Legalizing Marijuana may get roped into another issue

Hemp – Tuesday, the Governor delivered her State of the State address which offered a good review of the past year and some highlights for 2020.  Of significant note is the evolving position on legalizing hemp as a crop and accommodating the transportation of this crop through the state.  The Governor made it clear that she continues to be concerned about the consequences of making hemp legal which could bring about severe headaches . . . without the potential pain relief from THC.

·       Reliable Enforcement – licensing the growing, inspection fields

·       Responsible Regulations – appropriate fees, minimum land area

·       Safe Transportation – permits and consequences

·       Adequate Funding = $3 million+ - including onetime costs for three departments and 15 FTE staff

The South Dakota Chamber of Commerce and Industry has not taken a position on the legalization of hemp.

Governor Noem and the Week of Work - April 20-24. 

The South Dakota Chamber of Commerce and Industry is helping the Governor promote the Week of Work with is designed to engage high school sophomores in showing them possible careers so they can align their high school classroom learning with their future jobs interests. 

All Chamber members are encouraged to visit the web site below and sign up for the Week of Work.  Here is a statement from her website:

With the goal of introducing 10th grade students to career opportunities in their communities through job shadows, industry tours, and other business-classroom connections, The week will provide employers opportunities to engage with youth and develop connections with the state’s future workforce.  More information at sdweekofwork.com.

Join us for Business Day at the Legislature, Thursday, February 20, 2020.

Business Day is made possible by the following generous sponsors:

• First PREMIER Bank/PREMIER Bankcard
• Microsoft
• Black Hills Energy
• Fredrickson & Byron, P.A.
• Midco
• NorthWestern Energy
• Pfizer
• Williamson Management Group

Thank you for your support of the South Dakota Chamber of Commerce & Industry!