South Dakota is moving toward a digital system for medical cannabis cards, a change that state health officials say will make access easier for patients and caregivers.
The update was shared during a meeting of the South Dakota House Health and Human Services Committee at the State Capitol in Pierre. Representative Josephine Garcia had originally planned to introduce House Bill 1211 to require the state Health Department to issue electronic cannabis cards. However, she told committee members she no longer needed to push the proposal forward.
Garcia, who leads the state’s Medical Cannabis Oversight Committee, stated that the department has agreed to move ahead with digital cards without the need for new legislation. The committee voted unanimously, 13 to 0, to table the measure.
Reading from a letter sent by Health Secretary Melissa Magstadt, Garcia said that the department has begun searching for a vendor to develop the new system. A contractor is expected to be selected this summer, with development scheduled for the fall. Once the system is in place, patients who do not specifically request a physical card will receive an electronic version instead. Officials did not provide a timeline for when the program will launch.
South Dakota approved the state’s medical marijuana program in 2020, with nearly 292,000 ballots cast in favor and about 125,000 opposed. While medical use is legal under state law, recreational cannabis remains prohibited.
As of February 1, the Health Department reported 18,168 active patient registrations and 219 authorized medical providers participating in the program. Patients must obtain a physician’s certification and pay both an initial fee and an annual renewal fee to receive a wallet-sized identification card, similar to a driver’s license. The card allows them to purchase cannabis products from licensed dispensaries operating across the state.
The new digital cards will be accessible on patients’ smartphones.
While the digital transition moves ahead, lawmakers have recently rejected efforts to scale back the state’s medical marijuana framework. The Senate Health and Human Services Committee recently considered two proposals introduced by Senator John Carley. One measure would have repealed the medical cannabis program if marijuana is reclassified under federal law. The second sought to impose strict limits on THC potency in products available to patients.
The committee voted 7-0 against the repeal proposal and 6-1 to defeat the potency cap bill, leaving the existing program in place.
As the digital MMJ cards are rolled out, patient access is likely to be eased. This could attract additional investment into the industry, including investment that brings firms operating under a similar model to that used by Innovative Industrial Properties Inc. (NYSE: IIPR) in other markets where marijuana is legal.
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