Why Montana's $300M Weed Market May Be Closed To Out-Of-Staters And More Regs Pending Gov's Approval

Montana became the 14th state to legalize recreational cannabis when 58% of voters said in 2020. 

From a bill that would put an end to the recreational cannabis market statewide to a measure seeking changes in permissible THC amounts in edibles, lawmakers at the 68th legislative session weighed in on a number of policy changes.

While some drastic measures like Senate Bill 546 from state Sen. Keith Regier (R), which sought to amend the state's marijuana retail market by "eliminating adult-use dispensaries" and banning recreational marijuana sales were tabled while others that could potentially bolster the industry are pending Gov. Greg Gianforte's approval, reported Montana Free Press.

Bills That Made The Cut

• House Bill 128, from Rep. Josh Kassmier (R) proposes changes to House Bill 701, the cannabis industry framework bill passed in 2021, by extending the existing 18-month moratorium on new cannabis business licenses to June 30, 2025. Under HB 701, only state-based medical marijuana businesses are approved to sell recreational cannabis, while tribes can launch their facilities.
• House Bill 903, sponsored by Rep. Mike Hopkins (R) also addresses the moratorium on new licenses or more precisely, the date when it began. The measure amends HB 701's moratorium start date - Nov 4, 2020 to April 27, 2021 - allowing 16 businesses that applied before the set date to start selling recreational marijuana. The measure also imposes a cumulative $5,000 fee per additional location annually to renew the licenses for stores run by licensed cannabis operators.
• House Bill 948, sponsored by Rep. Steven Galloway (R) would make it illegal to produce and distribute synthetic marijuana products, including Delta-8 THC and HHC. Delta-8 THC is a chemical component typically derived from legal CBD found in hemp plants. Although delta-8 occurs naturally in very small concentrations, it can produce a mild psychoactive effect in some people similar to delta-9 THC.
• Another bill from Rep. Hopkins  - House Bill 229 - allows for a 10% variation in the THC amount in edibles. Currently, any cannabis product test that is even slightly above the permitted amount is considered as failed on a safety test.
• Senate Bill 442 from Sen. Mike Lang (R), which passed the Senate, sought to regulate how $50 million of recreational cannabis taxes would have been distributed statewide. However, Gov. Gianforte dismissed it just a day after it passed the Legislature. Now, Lang is seeking to override the governor's veto.

Who Will Jump On The Opportunity?

Montana launched recreational sales on January 2022, garnering over $290 million in revenue by April 2023, according to the Montana Department of Revenue. Medical and recreational sales combined amounted to nearly $406 million for the same period.

As such, cannabis multi-state operators and other businesses looking to venture into the burgeoning market will have to wait at least two years to jump on the opportunity, that is if a bill from Rep. Kassmier gets the green light from Gov. Gianforte.

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