State lawmakers eye future marijuana dispensary regulations

Jonathan Ambarian

HELENA (KPAX) — Since Montana’s adult-use recreational marijuana system launched in 2022, the state has placed restrictions on who can enter the market. Now, state lawmakers are considering expanding those restrictions, but in a very different form.

Earlier this month, the Montana Legislature’s Interim Economic Affairs Committee held an initial discussion on several marijuana-related bills that could be proposed for the 2025 session. One would be to freeze the number of marijuana dispensaries and other establishments for two years.

Since the beginning of legal sales in Montana, there has been a moratorium that allows only providers licensed in the state’s medical marijuana system to enter the recreational market. The moratorium was originally set to expire on June 30, 2023, but last year, the legislature voted to extend it for two years.

Although the number of licensees was limited, these providers were allowed to open additional “licensed premises”, including pharmacies. The proposed regulations – still in very early form and subject to change – would prevent any business from adding a new licensed premises between July 1, 2025 and June 30, 2027.

“This time we are talking about a freeze on all marijuana business location licenses, so there will be no new growers, kitchens, warehouses or dispensaries — those are the things the public will really notice,” said Pepper Petersen, president and CEO of Montana Cannabis Guild.

The committee referred to the proposal as an extension of the moratorium, but marijuana industry representatives said it was essentially an entirely new policy because it would eliminate the requirement that licensees be former medical providers. That would allow licensees to sell or transfer their businesses to new owners who were not previously in the system.

Petersen said people in the industry understand that many Montanans feel there are enough – or too many – dispensaries in the state. He believes that local authorities should take more active steps to limit the growth of the number of pharmacies through zoning or other regulations.

“For over two years, we have been suggesting to local governments that they introduce a number of restrictions on when, where and how medical facilities can open,” he said.

Local governments like Cascade County have been looking for ways to regulate marijuana businesses. Next month, the city of Missoula is scheduled to hold a public hearing on a request to halt business licenses for new retail outlets.

“When Missoula, Montana, one of the most liberal cities in the state — one of the most marijuana-friendly cities in the country — said we had too many dispensaries, it resonated in the state legislature,” Petersen said.

During the committee meeting, lawmakers also discussed preparing a bill to clarify what authority local governments have to enact regulations on marijuana businesses.

In addition, they looked at a “clean-up” bill that would make some technical changes to marijuana laws, as well as a proposed resolution supporting the federal SAFER Banking Act, which would allow legal marijuana businesses to access banking services.

The committee is due to look more closely at all the proposals, including potential amendments, at its August meeting.