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MontanaSB 2769th Legislature, Regular Session (2025)Senate

Generally revise marijuana licensing laws

Sponsored By: Kenneth Bogner (Republican)

Signed by Governor

Alcohol

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 4 benefits, 1 costs, 8 mixed.

License fees and faster processing timelines

Cultivator license fees by tier range from $1,000 (micro) to $37,000 (tier 12). Dispensaries pay $5,000 for the first location plus $5,000 for each extra location at application and renewal. Licenses renew each year. The department may set an initial term up to 23 months to stagger renewals and prorate that fee. The department must decide in 60 days for existing or former medical licensees and 120 days for new applicants, and issue within 5 days after approval. If it misses the deadline, your fee drops 5% for each week it stays pending, and you may keep operating until a final decision.

Faster safety enforcement for marijuana industry

The department can suspend or change a license immediately when there is an urgent threat to health or safety and can set rules to secure or dispose of inventory. The department must train staff and inspectors so rules are enforced the same way statewide. Inspectors cannot be hired if they worked for a Montana licensee within the last four years.

Local votes control marijuana businesses

In counties that voted against Initiative 190, a marijuana business cannot open until voters or local leaders approve that license type and the state issues the license. Local voters can petition for an election, and the vote must follow state election rules; large towns in a county are counted separately. If a category is approved, the county must record it and notify the state. Voters can later pass a ban; a ban takes effect on the 90th day after that election. Local governments may also set health and safety rules and inspect licensed premises.

Tighter product limits for buyers and shops

The law caps THC and package sizes for sales, by product type. Flower is limited to 1 ounce per package and 35% THC; edibles to 100 mg THC per product and 10 mg per serving (10% leeway). Capsules, tinctures, suppositories, patches, and other products are capped at 800 mg THC per package; topicals at 6% THC and 800 mg per package. Dispensaries cannot sell you more than the legal possession limit, and medical shops sell only to registered cardholders (who can buy higher‑potency products). The department can inspect dispensaries, check owners’ financial interests, and set THC rules.

Indoor grow tiers and rules for cultivators

Cultivation must be indoors. Former medical growers who farmed outdoors before Nov 3, 2020 may keep growing outdoors. Licenses use canopy tiers, from micro (up to 250 sq ft) to tier 12 (up to 50,000 sq ft at up to nine indoor sites). The department can create new tiers. New businesses licensed after July 1, 2025 must start at tier 2 or lower. To move up a tier at renewal, you must use your full canopy and sell at least 80% over the last two quarters, or show demand; most can move up one tier at a time, while combined‑use licensees may jump up to tier 5. The department checks each proposed indoor site for compliance and inspects premises within 30 days before approval. Growers must follow Montana pesticide law, and hemp activities are banned at licensed marijuana sites.

Inspections, records, and enforcement rules

The department inspects each licensed site at least once a year and limits surprise visits to two per year unless there was a citation or other good cause. Inspectors may take product samples for lab testing. Licensees and labs must keep complete sales and testing records for inspection. The department cannot finish a licensing action until a satisfactory inspection. It may suspend (up to one year), revoke, or refuse renewal for serious violations. You can request a contested case hearing and appeal to district court within 30 days of the final decision.

Local approval and elections for marijuana businesses

In counties that voted against Initiative 190, cultivators, manufacturers, dispensaries, testing labs, combined‑use, and transporter facilities must get local approval. Counties that voted for Initiative 190 do not need this extra step. Former medical licensees in good standing may keep operating at their current site while they apply for new licenses. Local governments cannot ban licensed marijuana transport on public roads.

When new licenses and locations open

From July 1, 2025 to June 30, 2027, the state does not approve new licensed premises. Applications must relate to an existing site, and moves of an existing site are allowed. Beginning July 1, 2027, the state accepts applications from new applicants and for premises not previously licensed.

Dispensary sales and shared-location rules

Adult‑use dispensaries may sell marijuana, products, and live plants to the public and to registered cardholders. If the same person owns both, adult‑use and medical dispensaries may share one location. The department may not forbid co‑location when you follow the law. Each new or renewal dispensary application is reviewed for compliance with required statutes.

Probationary licenses for testing labs

Testing labs can get a probationary license if they finished the ISO application and have no pending corrective actions. The probationary license lasts 180 days and can be renewed once. If you close voluntarily after receiving a probationary license, you cannot get another probationary license for two years.

What marijuana license types are offered

The state issues licenses for cultivators, manufacturers, adult‑use or medical dispensaries, testing labs, transporters, and combined‑use operations. The department may add license types, subtypes, endorsements, and limits.

Stronger privacy and license transparency

You only need to show a government ID. If a store scans your license, it may use the scan only to check age, cannot sell or share the data, and must delete it within 180 days unless another law allows keeping it. The state posts licensee names, phone numbers, the city/town/county, and controlling owners online, but it does not post street addresses (it may share them with other agencies and the fire marshal).

Selling businesses and ownership change rules

You may sell your marijuana business, including live plants and inventory, to a buyer who already holds a license. The department may issue a temporary license to the buyer to help the transfer. Any deal that makes someone a controlling owner requires written notice to the department and a finding that the person qualifies for ownership.

Sponsors & Cosponsors

Sponsor

  • Kenneth Bogner

    Republican • Senate

Cosponsors

  • Kerri Seekins-Crowe

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 295 • No: 53

House vote • 4/11/2025

Do Concur

Yes: 82 • No: 16

House vote • 3/26/2025

Do Concur

Yes: 77 • No: 23

Senate vote • 2/18/2025

Do Pass

Yes: 47 • No: 3

Senate vote • 2/15/2025

Do Pass

Yes: 47 • 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

    4/10/2025House

  9. Committee Executive Action

    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

    3/26/2025House

  16. Committee Report

    3/21/2025House

  17. Committee Executive Action

    3/21/2025House

  18. Hearing

    3/13/2025House

  19. 1st Reading

    2/19/2025House

  20. Referred to Committee

    2/19/2025House

  21. Transmitted to House

    2/18/2025Senate

  22. 3rd Reading

    2/18/2025Senate

  23. 2nd Reading

    2/15/2025Senate

  24. Committee Report

    2/12/2025Senate

  25. Committee Executive Action

    2/12/2025Senate

Bill Text

  • Enrolled

    4/15/2025

    PDF

  • As Amended (Version 2)

    2/12/2025

    PDF

  • Introduced

    12/10/2024

    PDF

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