The state Department of Health is appealing a case against medicinal marijuana company to the state Supreme Court.
Arguing in Vermillion, the case questions the entire basis of having an initial court date in cases involving medical cannabis licenses.
Puffy’s LLC V. State of South Dakota rose after the Rapid City medical cannabis market saw more applicants than available licenses.
In the state system, that then leads to a scoring system to determine who receives those licenses. If scores are deemed equal, then it comes down to a lottery.
Rapid City, the second largest city and metropolitan area in the state, would be a profitable market for any prospecting medical cannabis business.
While a corporation named Greenlight Dispensary won a draw, that company never began operating in the community. In turn, Puffy’s LLC suggests that as the first-out business, they should be named the recipient of that now-vacant license.
Attorney and former lawmaker Ryan Cwach argued there are major flaws in the rulemaking process as written.
“Ruling on that issue and considering it, while it does give Greenlight Dispensary a license back, it also addresses the five other licenses that are currently pending," Cwach said. "If either side should feel they were unsuccessful at any stage of that ruling on those five licenses this very issue would be back before the court.”
Tamara Lee is representing the Department of Health in this case. She said it’s a matter of ensuring the best, safest results, even if it means a time-consuming process.
“We want to ensure that immediately prior to issuing a certificate to an establishment that it meets all the conditions," Lee said. "This is a Schedule I controlled substance that we’re dealing with. We’re concerned with health and safety of patients. We want to ensure everything is squared away before an establishment gets a certificate.”
A decision is expected to be returned in coming weeks.