Succeeding in business should be based on skill, not the luck of the draw as might be the case for future marijuana dispensaries in Watertown.
As local governments scramble to draft laws governing who can dispense medical marijuana, Watertown is proposing a restrictive ordinance whereby government picks the winners.
On the other extreme is Lincoln County on the south side of the Sioux Falls metropolitan area.
Whereas Watertown is considering limiting marijuana dispensing licenses to just three, Lincoln County plans to let free enterprise sort it out. Any person who meets the criteria outlined in that ordinance is allowed to apply for one or more licenses.
Essentially, Watertown’s proposed ordinances may make three people or corporations potentially very rich while shutting out others.
Watertown’s draft law also comes with a variety of restrictions on where dispensaries, cultivation, testing and manufacturing facilities can be located. Dispensaries are allowed in only commercial zones, but not all commercial zones. Cultivating and manufacturing facilities are allowed only in industrial zones, but not all industrial zones.
The result is a complicated and confusing map of where these could be located. The patchwork quilt likely will create winners and losers in the real estate market as well.
Lincoln County’s ordinance is simple. It reads that “no medical cannabis establishment may operate within one thousand feet (1,000 feet) of a public or private school, including daycare of more than twenty-one (21) children in the establishments.”
That’s it.
The law outlines the process to apply for a license and the actions necessary to be successful. The state then must issue another license once that is done.
It’s simple, easy to understand and administer.
Communities throughout the state are under pressure to get ordinances drafted quickly as all administrative rules for medical marijuana dispensing must be done by Oct. 31.
To that end, a task force was created in Watertown, and its recommended ordinance now must go through several public hearings at the city and county level.
The draft ordinance was first unveiled at the Aug. 5 Watertown planning commission. The task force recommended three licenses, one for each approximately 10,000 people, or fraction thereof, in Watertown.
The task force did consider allowing the market to determine how many dispensaries will exist but decided against it. Planning Commission Member Todd Kays said other states have allowed unlimited licensing. Because there is limited business, he said, there is a risk of people doing things illegally to survive.
But that is why the city of Watertown and the state have enforcement mechanisms. If you break the law, you are out of business.
Lincoln County took the approach it did because county commissioners there believe market forces should determine who succeeds in the business, not government.
That is consistent with the message South Dakota sends across the country regularly. We believe in individual rights, free enterprise and limited government regulation.
In fact, Gov. Kristi Noem on the state’s economic development page said, “No destructive rules and regulations. In South Dakota, you won’t find the restrictions that hold companies back in other places. Because we value personal freedom, and we make business a priority. Does your state do the same?”
City Attorney Matt Roby, in his presentation to the planning commission, said there are opportunities to change the latest draft.
So, it is important that people make their voices heard.
While this ordinance deals specifically with medical marijuana, there is little doubt that recreational marijuana soon will be added. Amendment A, which voters passed easily and allows for recreational use, is before the South Dakota Supreme Court. A decision is expected soon.
If the court nullifies the amendment, either the South Dakota Legislature or a new voter initiative likely will result in regulation.
At that point, demand for dispensaries, growing, testing and cultivation facilities will increase. Watertown’s select three would have the inside tract to that business and not because of business skill.
All they would need is to draw the right cards at city hall.
Brad Johnson is a Watertown businessman and journalist who is active in state and local affairs.