Marijuana Business Daily

South Dakota medical cannabis operators face illicit products, higher fees

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Medical cannabis dispensary operators in South Dakota, already facing higher licensing fees, recently vented concerns about competition from the illicit market in the state.

Alan Welsh, a managing partner of four-store MMJ chain Dakota Herb, was among the dispensary executives who told South Dakota’s Medical Marijuana Oversight Committee on Monday that they don’t believe the state is doing enough to halt the sale of illicit cannabis products.

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According to South Dakota Public Broadcasting, Welsh said it is unfair he is required to pay testing and compliance fees to sell regulated MMJ products while some operators are selling THCA and other synthetic cannabis products.

THCA is the biosynthetic precursor to THC that becomes intoxicating THC when heated.

“When the state talks about tracking from

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