MontanaSB 2769th Legislature, Regular Session (2025)SenateWALLET

Generally revise marijuana licensing laws

Sponsored By: Kenneth Bogner (Republican)

Became Law

Alcohol and Drugs

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 1 benefits, 0 costs, 8 mixed.

Inspections, violations, and training rules

Beginning July 1, 2025, every licensed site is inspected at least once a year. Unannounced inspections are capped at two per year unless there was a citation in the last two years or there is just cause. Inspectors may take samples for lab testing. The department may revoke, refuse to renew, or suspend a license for up to one year, and can act immediately without notice if there is an urgent health or safety threat. The department must train inspectors for uniform enforcement, avoid hiring inspectors with recent industry ties, and report inspection results to lawmakers every two years.

New rules for marijuana growers

Beginning July 1, 2025, growers are licensed by indoor canopy tiers, from micro (up to 250 sq. ft.) to tier 12 (up to 50,000 sq. ft. across up to nine indoor sites). New businesses start no higher than tier 2. You may move up one tier at renewal if you use your full canopy and sell at least 80% over the last two quarters; combined‑use licensees can grow to tier 5 without that test. Fees are set by tier ($1,000 for micro up to $37,000 for tier 12) and are not charged per facility. Former medical growers who farmed outdoors before November 3, 2020 may keep outdoor cultivation. No hemp production is allowed at marijuana sites, and pesticide laws apply.

Priority and protections for former medical licensees

From July 1, 2025 to June 30, 2027, only former medical licensees may apply for new licenses tied to their existing sites. To qualify, you had a DPHHS license or application on April 27, 2021 and were in good standing on January 1, 2022. The department must set rules to shift you to the right license with minimal disruption. If you sell only to registered cardholders, you do not need an adult‑use dispensary license. You may share a site with a medical dispensary if you follow all rules. If you do not seek an adult‑use dispensary license, you are temporarily exempt from local rules adopted after July 1, 2021 until your first renewal after January 1, 2022 or any local grace period ends.

Lower taxes for cardholders, adult-use for others

Starting January 1, 2022, former medical marijuana licensees can keep selling during the transition. Registered medical cardholders pay the lower medical tax rate. Other customers pay the adult-use tax rate. This mixed-tax rule lasts until the seller’s next license renewal, unless the department grants an extension.

Faster licensing, appeals, and fees

Beginning July 1, 2025, the department must decide completed applications in 60 days for former medical or existing licensees and 120 days for new ones, then issue the license within 5 days. If the department misses the deadline, your fee drops 5% for each full week late, and you may keep operating until a final decision. You can appeal a final decision to district court within 30 days. Testing labs can get a 180‑day probationary license (one renewal) after filing an ISO assessment application with no pending corrective actions. Dispensary fees are $5,000 per location each year. The department may stagger renewal dates, set first terms up to 23 months, and prorate first‑term fees.

Local votes decide where shops open

Beginning July 1, 2025, in counties that voted against Initiative 190, a marijuana business may not operate until locals approve that license category and the state issues the license. Local governments can regulate by ordinance, require petitions, and hold elections to approve or later prohibit categories; a prohibition takes effect 90 days after the vote. Local governments may not ban licensed transport on public roads.

Store limits and customer privacy rules

Beginning July 1, 2025, stores must follow product and sale caps. Flower is limited to one ounce with THC not over 35%. Edibles are capped at 100 mg THC per package and 10 mg per serving (10% wiggle room). Many other items are capped at 800 mg per package, with unit limits like 100 mg per capsule; topicals are limited to 6% THC up to 800 mg. Stores cannot make a sale that puts a buyer over state possession limits. Shops may only scan an ID to check age, cannot sell the scan data, and must delete it in 180 days. Businesses and labs must keep complete sale and testing records for inspection.

Selling or changing control of businesses

Beginning July 1, 2025, licenses do not transfer, but you may sell your marijuana business and assets to a buyer licensed under this chapter. The department may issue a temporary license to help the buyer take over. If a deal would give someone new control, the business must notify the department and the person must be approved as a qualified controlling owner before the change.

State license list and display rules

Beginning July 1, 2025, the department issues licenses for cultivators, manufacturers, dispensaries, labs, transporters, and combined‑use, and may add types by rule. It must keep a public list of licensees and publish licensee names, phone numbers, controlling owner names, and the city, town, or county of each site. The street address is not public, but it may be shared with other agencies and the state fire marshal. Licensees must display their license as the rules require.

Sponsors & Cosponsors

Sponsor

  • Kenneth Bogner

    Republican • Senate

Cosponsors

  • Kerri Seekins-Crowe

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 293 • No: 52

Senate vote 4/11/2025

Do Concur

Yes: 82 • No: 16

Senate vote 3/26/2025

Do Concur

Yes: 77 • No: 22

Senate vote 2/18/2025

Do Pass

Yes: 47 • No: 3

Senate vote 2/15/2025

Do Pass

Yes: 45 • No: 3

Senate vote 2/4/2025

Do Pass

Yes: 42 • No: 8

Actions Timeline

  1. Chapter Number Assigned

    5/8/2025Senate
  2. Signed by Governor

    5/5/2025Senate
  3. Transmitted to Governor

    4/25/2025Senate
  4. Signed by Speaker

    4/25/2025House
  5. Signed by President

    4/21/2025Senate
  6. Returned from Enrolling

    4/12/2025Senate
  7. Sent to Enrolling

    4/11/2025Senate
  8. Committee Report--Bill Concurred

    4/10/2025House
  9. Committee Executive Action--Bill Concurred

    4/9/2025House
  10. Taken from Table in Committee

    4/9/2025House
  11. Taken from Table in Committee

    4/8/2025House
  12. Tabled in Committee

    4/8/2025House
  13. Hearing

    3/26/2025House
  14. Rereferred to Committee

    3/26/2025House
  15. 2nd Reading Concurred

    3/26/2025House
  16. Committee Report--Bill Concurred

    3/21/2025House
  17. Committee Executive Action--Bill Concurred

    3/21/2025House
  18. Hearing

    3/13/2025House
  19. First Reading

    2/19/2025House
  20. Referred to Committee

    2/19/2025House
  21. Transmitted to House

    2/18/2025Senate
  22. 3rd Reading Passed

    2/18/2025Senate
  23. 2nd Reading Passed

    2/15/2025Senate
  24. Committee Report--Bill Passed as Amended

    2/12/2025Senate
  25. Committee Executive Action--Bill Passed as Amended

    2/12/2025Senate

Bill Text

  • Enrolled

    4/15/2025

  • As Amended (Version 2)

    2/12/2025

  • Introduced

    12/10/2024

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