South Dakota picks seed-to-sale tracker to monitor growth, sales of legal cannabis

Correction: An earlier version of this story incorrectly identified Metrc as a New York business.

A Florida-based software company will help South Dakota's cannabis industry and its regulators monitor the flow of marijuana in the state's legal market.

The Department of Health this month finalized a contract with Metrc, which will provide exclusive seed-to-sale tracking for the state as a medical marijuana program is implemented.

Using what's called "radio-frequency identification (RFID)," Metrc will monitor and record the life stages of all cannabis plants and the products they eventually end up in, a process called for as a public safety precaution within the voter-approved initiated measure that legalized medical marijuana.

More: Medical marijuana law changing after Gov. Kristi Noem signs cannabis bills into law

"As South Dakota continues to ramp up their recently implemented medical cannabis market, we are thrilled to have the opportunity to spearhead the state's first-ever track-and-trace program," Metrc CEO Jeff Wells said.

All licensed cannabis businesses in South Dakota, from dispensaries to cultivators, are required to participate in DOH's tracking program, though they are allowed to use other monitoring systems. But they must interface with Metrc.

So far, the Department of Health has certified 32 dispensary licenses, one manufacturer license and 10 cultivator licenses.

"Our team at Metrc is looking forward to working closely with the Departments of Health and Revenue, state regulators, and licensed operators to implement a strong regulatory framework that will effectively guide South Dakota's newly emerging medical market down the path to success," Wells said.

More: Owner of Minnehaha County's first medical marijuana dispensary wants to be a 'good role model'

Metrc's contract with the state runs through 2027. The company will be paid $320,000 for its services to the Departments of Health and Revenue during that time.

South Dakota becomes the 20th governmental entity in the United States to partner with Metrc on seed-to-sale tracking, including California, Alaska and Washington, D.C.

It uses a software platform to collect data from growers, testers and distributors that is then used by state regulators within the Departments of Health and Revenue to ensure program rules are being adhered to.

The Department of Health did not provide a response to request for comment.

This article originally appeared on Sioux Falls Argus Leader: South Dakota picks Metrc to monitor growth, sales of legal cannabis