The department may, in addition to, or in lieu of, suspension, revocation, or any other penalty allowed pursuant to SDCL chapter 34-20G, assess fines against an establishment based on the following violations of SDCL chapter 34-20G or this article:

1. (1) Category 1 violation:

   1. (a) Sale of cannabis or cannabis product to non-cardholder

      SDCL 34-20G-74, § 44:90:08:03

   2. (b) Diversion of cannabis or cannabis product outside the regulated distribution system

      SDCL subdivision 34-20G-72(4), § 44:90:03:05

   3. (c) Possessing cannabis or cannabis products obtained from outside the regulated distribution system or from an unauthorized source

      Subdivision 44:90:04:03(3)

   4. (d) Knowingly submitting false records or documents with certificate applications and certificate renewals

      SDCL 34-20G-77

   5. (e) Failure to cooperate with department investigators during the course of an inspection or investigation

      SDCL 34-20G-69, subdivision 44:90:12:01(2)

   6. (f) Packaging or labeling cannabis or cannabis product that directly impact patient safety

      Chapter 44:90:10

   7. (g) Failing to comply with mandatory testing and sampling

      Chapter 44:90:09

   8. (h) Knowingly adulterating or altering or attempting to adulterate or alter any form of medical cannabis after sampling has occurred

      Section 44:90:09:07.01

   9. (i) Manufacturing a cannabis product with an additive or solvent above allowable level

      Sections 44:90:07:03, 44:90:09:02

   10. (j) Cultivating cannabis with a pesticide that contains an active ingredient not approved by the department for use

       Sections 44:90:05:09, 44:90:05:10

   11. (k) Sale or unauthorized transfer of cannabis that does not meet the testing requirements

       Sections 44:90:05:10, 44:90:07:03

   Violation

   Statute or Rule Violated

2. (2) Category 2 violation:

   1. (a) Medical cannabis sales in excess of the current patient purchase limitations

      SDCL subdivision 34-20G-1(1), § 44:90:03:09

   2. (b) Manufacturing a product using cannabis waste distribution system

      Subdivision 44:90:09:12(2)

   3. (c) Manufacturing edible cannabis products without a food service license

      Section 44:90:07:09

   4. (d) Performing extraction methods without prior department approval

      Sections 44:90:03:08, 44:90:07:05

   5. (e) Making misstatements or omissions in the inventory tracking system

      Section 44:90:11:01

   6. (f) Failure to report a transfer

      Section 44:90:11:04

   7. (g) Sharing office space with a practitioner

      SDCL 34-20G-67

   8. (h) Advertising directly targeting minors or non-cardholders

      Section 44:90:10:15

   9. (i) Failure to immediately report theft

      Section 44:90:04:03

   10. (j) Failure to maintain onsite records as required

       Chapter 44:90:11

   11. (k) Utilizing advertising material containing prohibited content

       Section 44:90:10:17

   12. (l) Failure to maintain security and camera requirements

       Sections 44:90:04:05, 44:90:04:06, 44:90:04:07, 44:90:04:08, 44:90:04:09, 44:90:04:10

   13. (m) Improper handling, storage, or disposal of cannabis, cannabis products, or cannabis waste

       Sections 44:90:04:21, 44:90:04:24, 44:90:03:05, 44:90:09:12, 44:90:11:03

   14. (n) Sale of inhalable cannabis product to a patient under twenty-one years of age

       Section 44:90:02:16.01

   15. (o) Sharing premises with a residence or business

       Section 44:90:04:13

   16. (p) Sharing premises with another medical cannabis establishment without common ownership

       Section 44:90:04:04

   17. (q) Pesticide application by an agent who does not hold a valid applicator certification

       Section 44:90:05:07

   Violation

   Statute or Rule Violated

3. (3) Category 3 violation:

   1. (a) Failure to comply with transfer requirements

      Sections 44:90:04:19, 44:90:04:20, 44:90:04:21, 44:90:04:22, 44:90:04:23, 44:90:04:24

   2. (b) Failure to follow advertising guidelines

      Section 44:90:10:14.01

   3. (c) Failure to notify the department of any change in operating hours or failure to have an agent on site for purpose of inspections during operating hours

      Subdivisions 44:90:03:05(3), 44:90:12:01(2)

   Violation

   Statute or Rule Violated

4. (4) Category 4 violation:

   1. (a) Failure to follow and maintain standard operating procedures

      Section 44:90:03:05

   2. (b) Establishment website or social media account does not utilize measures to properly verify a visitor's age each time

      Section 44:90:10:16

   3. (c) Transferring of establishment ownership without prior department approval

      Section 44:90:03:04

   Violation

   Statute or Rule Violated

5. (5) Category 5 violation:

   1. (a) Failure to notify department within seven days of a change in management

      Section 44:90:04:01

   2. (b) Failure to provide agent identification badges

      Section 44:90:04:11

   3. (c) Failure to display required agent badges

      Section 44:90:04:12

   4. (d) Failure to enforce visitor rules

      Sections 44:90:04:13, 44:90:04:14

   5. (e) Failure to complete required training in the inventory tracking system

      Section 44:90:04:16

   6. (f) Failure to comply with scale requirements

      Section 44:90:04:25

      The department may assess fines for multiple violations, however, the total fines assessed per inspection may not exceed ten thousand dollars.

   Violation

   Statute or Rule Violated

Source: 52 SDR 10, effective August 4, 2025 .

General Authority: SDCL 34-20G-72 (6).

Law Implemented: SDCL 34-20G-72 (6)(a), 34-20G-80 .