Montana Lawmakers Send Mixed Bag Of Marijuana Bills To Governor's Desk

During the session, the Legislature also defeated a few bills that could have had a major impact on the industry.

Max Savage Levenson of Montana Free Press

The 2023 Legislature is winding down. In the final days, legislators passed a few bills that would become law if the Governor signed them. Greg Gianforte’s (R) influence on the cannabis industry for adult use will be significant.

New policies, such as an extended moratorium prohibiting new businesses until 2025 and new leniency in THC testing of edibles, could help boost the industry. Some policies, such as a massive increase in license renewal fees could make it more difficult for business to navigate the industry.

The Legislature has also put a stop to a few bills that could have had a major impact on the industry. Most notably, Kalispell Republican Senator. Keith Regier’s Senate Bill 546 would have completely eliminated adult-use marijuana dispensaries in Montana.

Here’s a list of marijuana bills that passed and those that failed.

Homegrown Business: Two More Years

The Economic Affairs Interim Committee, between the 2021-2023 legislative sessions, drafted a list with proposed updates to House Bill 700, which was the framework bill for the cannabis industry passed by the 2020 Legislature.

The House Bill 128, sponsored this session by Rep. Josh Kassmier, a Republican, is the vehicle that many of these updates are delivered through.

It extends the existing moratorium of 18 months on new cannabis licenses by 2 years. New businesses, even those from out-of state, won’t be allowed to set up shop in Montana until after June 30th 2025. According to HB 701, only Montana’s current medical marijuana providers are currently allowed to sell recreational marijuana.

House Bill 128 clarifies HB 701 complications regarding automatic combined-use licenses for retail and cultivation by tribes in Montana. According to HB 128, tribal members can now open up facilities that they can grow over time. The bill is currently awaiting approval from the Governor.

New Fees, Restrictions and Moratorium Dates

House Bill 903, sponsored Rep. Mike Hopkins (R) clarifies the date it began.

While initiative 190 was the ballot measure passed by Montanans to legalize adult use cannabis in 2020, it stated that the state initially would only allow existing medical marijuana providers to get a license to be able to sell on the adult market. However, there was no explicit deadline to ensure businesses could obtain a medical marijuana licence and become eligible for a adult-use license.

The deadline for HB 701 was November 4, 2020, the date of the elections. The bill was passed after 45 businesses had applied for licenses in the wake of the election.

HB 903 extends to April 27, 2020 the date that the moratorium began. This allows 16 businesses, those who applied for a licence before April 27, 2020, but have been in limbo since then, to begin selling cannabis for adult use. The 29 other businesses, which applied for licenses following April 27, 2021, can only sell medical marijuana at this time.

Kristan Barbour is the administrator of the Cannabis Control Division of the Department of Revenue. She says that the 16 businesses can sell recreational cannabis once Gianforte has signed HB 903 or if the bill becomes law without his signature.

Barbour, speaking to Montana Free Press, said: “Once this bill becomes law we will manually change [the departmental software] to allow these 16 businesses to sell adult use.”

Kaari Fulton told MTFP that the completion of this project will be a total success.

The new bill contains other provisions that are more expensive for the industry.

It changes the formula used by the state to calculate license renewal fees. The current license renewal fee for marijuana stores is $5,000. HB 903 will charge $5,000 cumulatively per additional store. It will cost an extra $10,000 for a business to renew their license for a new store. An additional $15,000 for a license renewal for a third location, etc.

Bloom, the largest state-owned provider, is estimated to generate $1 million of the $4 million that the Department of Revenue expects the new policy to generate for the state in this year.

The state board of medical examiners can also review the licenses of physicians who write more than 39 certifications of medical marijuana in a given year.

Hopkins has not responded to numerous requests for comment on this article.

Bill Bans Synthetic Marijuana in Montana

This session, Rep. Steven Galloway, R ),, sponsored House Bill 948, which prohibits the manufacturing and distribution of synthetic marijuana in Montana including Delta-8-THC and HHC. Federally legal products are usually derived from hemp plants that contain legal CBD. The products have similar effects to marijuana , though some consumers refer to Delta-8 THC as “marijuana light.”

The current law does not require that synthetic marijuana gummies and vape cartridges be tested or regulated in the same way as cannabis. The products are not subject to any licensing requirements, but marijuana businesses cannot sell them.

The bill becomes effective immediately after the Governor signss it.

New Leeway with Edible Potency

House Bill 229., sponsored by Hopkins as well, allows a deviation of 10 percent in the permissible THC amount in edibles. The governor has yet to approve it.

Andre Umansky told MTFP that it is both expensive and inefficient to deny variances in a product. According to current law, any edible product that is even slightly above the permitted amount of THC (100 milligrams in a package or 10 milligrams for each serving) will fail its safety test.

“Variance depends on safety. One milligram of difference [in a portion] is not enough to break or make you. Umansky explained that it’s similar to a glass wine with 10% alcohol and one with 11% alcohol.

There is still uncertainty about new funding

The Senate passed Senate Bill 442 late in the session with 48-1 votes. This bill would divide the revenue from the recreational marijuana tax between the General Fund and county road maintenance and construction, conservation and recreation, addiction treatment, and veteran services. Gianforte then vetoed this bill. Sponsor Sen. Mike Lang (R), is currently considering a bid to override this veto.

The Lawmakers table the repeal of the advertising ban, medical marijuana tax, and smell test

This session, lawmakers also rejected a number of bills which would have had a drastic impact on the industry.

The Senate Business and Committee also declined to pass House Bill 351 sponsored by Rep. Kerri Seekins Crowe (R). The bill would have prohibited most forms of cannabis marketing in Montana including radio ads, online ads, print advertisements, oral communications, and more.

The House Taxation Committee has killed another Hopkins bill, House 420 which would have eliminated existing state taxes on medical marijuana.

After multiple attempts to revive the House Bill 304 sponsored by Rep. Jeddiah Hinkle (R) , to die in process. Cannabis growers would have been required to limit the amount of odor that they allowed to spread in surrounding areas.

This story was originally published by Montana Free Press at montanafreepress.org.