South Dakota to Roll Out Digital IDs for Medical Cannabis Patients Next Summer

State health officials told lawmakers the digital-card system is coming as patient enrollment tops 19,375 and home-grow licenses surge more than 1,000%.

FILE — statehouse · B.D. Gilfry / CC BY-SA 2.0

South Dakota's Department of Health plans to begin issuing digital identification cards to medical cannabis patients next summer, state medical cannabis program administrator Whitney Brunner told the Legislature's Medical Marijuana Oversight Committee on Monday, according to KELOLAND.com.

A Growing Program

Brunner reported that 19,375 people had registered for medical cannabis cards as of June 30, 2026, KELOLAND and the Mitchell Republic both reported. That figure represents a 30.5% increase from 14,843 cardholders the prior fiscal year, according to the Mitchell Republic. Brunner said enrollment spiked early in fiscal 2026 before leveling off by fall and remaining fairly stable for most of the year, the outlet reported. Department data cited by the Mitchell Republic show most cardholders are in their 30s and 40s, and more than 70% cite severe debilitating pain as their reason for use.

Digital Cards and System Upgrades

The digital ID feature is part of a broader software overhaul the department is negotiating with an outside technology vendor to streamline licensing, registration and inspection processes, Brunner said, per KELOLAND. Committee chair Rep. Josephine Garcia, R-Watertown, had introduced legislation earlier this year calling for a digital registry ID card but set it aside once the department issued its own request for proposals, KELOLAND reported. Committee member Rep. Bobbi Andera, R-Sioux Falls, welcomed the update: "I'm so excited for this digital card thing to come out. You have no idea," Andera said, according to KELOLAND. "This is something that this committee was fully in favor of."

Brunner also told the panel her office has revised inspection procedures to work more cooperatively with licensed businesses and is considering administrative rule changes sought by industry, alongside a newly developed department website, KELOLAND reported. KELOLAND noted the meeting's tone was notably more businesslike than the panel's final 2025 session, when tension had flared between lawmakers, department leader Melissa Magstadt and cannabis industry representatives. KELOLAND's account did not address whether Magstadt remains in that role.

Inspection Concerns Persist

Despite the improved tone, Dakota News Now reported that committee members raised concerns that inspection violations and fines are too harsh for minor errors. Garcia said she suggested mock inspections so dispensaries and cultivators know expectations beforehand, calling the current approach a "'gotcha.'" Robert Krogstad, owner of Bad River Cannabis in Fort Pierre, told Dakota News Now his business had to rearrange staffing to cover a $3,000 fine, pulling workers off a cleanup project to redirect funds toward payment.

Home Cultivation Licenses Surge

Separately, Brunner told the committee that home cultivation licenses grew from 61 in fiscal 2022 to 715 in fiscal 2026 — a 1,072% increase — according to the Mitchell Republic. Home growers may cultivate up to two flowering and two non-flowering plants after paying a $20 add-on to their medical card and submitting a photo of the grow room, a photo of the door lock and a diagram of the grow location; Brunner said those diagrams are often hand-drawn and lack detail. "The lack of regulation in this area is a bit concerning for us," Brunner said, per the Mitchell Republic, though she added the department does not want to presume abuse is occurring and said further regulation could raise "legal and safety considerations." Sen. John Carley, R-Rapid City, told South Dakota Searchlight — as relayed by the Mitchell Republic — that lawmakers plan to revisit the issue at the panel's next meeting.

Federal Reclassification Looms

The committee was also briefed on the federal reclassification of marijuana from Schedule 1 to Schedule 3, but Dakota News Now reported that the lack of federal guidance on tax policy and interstate commerce is complicating lawmakers' efforts to draft related legislation. The committee's next meeting is scheduled for October, when members hope to hear from the state attorney general on the issue, per Dakota News Now.

Market Context

State licensing records show South Dakota currently lists 53 open retail licenses, 31 cultivation licenses, 14 manufacturing licenses and one testing lab under its medical-only program. Recent roster updates show continued turnover in the market, including new retail licenses issued to Genesis Farms and Terp City and a new cultivation license for Pitbull Acres, alongside several closures in early August, including Dakota Dispensaries, Northern Hills Alternative Health, Dakota Health and Wellness, Redwater Cannabis Care and Superior Buds, according to state license roster data. State sales-revenue figures for the year to date were not available in the records reviewed, leaving the financial scale of the program's recent enrollment growth unclear.