MontanaSB 7469th Legislature, Regular Session (2025)SenateWALLET

Generally revise marijuana laws

Sponsored By: Josh Kassmier (Republican)

Became Law

Alcohol and DrugsAlcohol and DrugsRevenue, State

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Bill Overview

Analyzed Economic Effects

16 provisions identified: 3 benefits, 3 costs, 10 mixed.

Higher license fees for shops and makers

Beginning October 1, 2025, manufacturers pay per facility by monthly concentrate made: up to 10 lb: $5,000; over 10 and under 15 lb: $10,000; 15 lb or more: $20,000. Total equals fee times the number of facilities. Dispensaries pay $5,000 for the first location and another $5,000 for each extra location at application and renewal.

Faster licensing for marijuana businesses

Beginning October 1, 2025, the Department must decide complete applications in set times: 60 days for existing or former medical licensees and 120 days for new applicants. After approval, it must issue the license within 5 days. The Department cannot take final action until a satisfactory inspection is completed. If it misses the deadline, your fee is cut 5% for each week late, and you may keep operating until final action. All licenses must be renewed each year. Testing labs can get a 180‑day probationary license (renewable once) if they completed the ISO application and have no pending corrective actions; no second probationary license for two years if the process is closed voluntarily. You can get a contested case hearing and appeal a final decision to district court within 30 days.

Rules for sites, workers, and sourcing

Beginning October 1, 2025, you may grow or manufacture only on property you own or have written owner permission filed with the Department; no sharing production space with other licensees, and no on‑premises consumption. You may use contractors, but you must disclose them before work starts, every worker must hold a worker permit, and you stay liable for compliance. All marijuana must be cultivated and manufactured in Montana unless federal law allows interstate trade. Hemp growing or hemp manufacturing is banned at licensed marijuana sites. Cultivators may also run adult‑use dispensaries and do manufacturing, but outdoor growing is mostly banned except where the law allows it.

Stricter ownership checks and transfers

Beginning October 1, 2025, applicants must submit identity and address details, show a Montana resident runs day‑to‑day operations, list the site address and funding sources, and state no diversion or pending citations. Owners with 5% or more must provide names, birth dates, and fingerprints. Companies must share their org chart, bankruptcies, lawsuits, other marijuana interests, and (if publicly traded controls) managers and 5%+ owners. You must vet passive owners and investors and swear you used reasonable care; the Department can deny, fine, suspend, or revoke if you did not. A new controlling owner needs written notice and Department approval. The Department denies licenses for listed reasons like certain felonies in the last 5 years, being under 21, unpaid taxes or child support, recent revocation, or less than one year Montana residency. A licensee may sell its marijuana business, plants, and inventory to another licensed person, and the Department may issue a temporary license to keep operations running during the transfer.

Stronger privacy on ID scans

Beginning Oct 1, 2025, you only need to show a government ID to prove age. If a store scans your ID, it may use it only to check age. The store cannot sell the scan data. It must delete the scan data within 180 days unless another provision applies.

Shared locations for medical and adult-use

Beginning October 1, 2025, a cultivator, manufacturer, or adult‑use dispensary may operate at a shared location with a medical dispensary when they meet chapter rules. If you own both a medical and an adult‑use dispensary, you may run them at the same address.

Clear license types and flexibility

Beginning October 1, 2025, the Department issues licenses for cultivators, manufacturers, adult‑use and medical dispensaries, testing labs, transporters, and combined‑use operators. The Department can also create new license types, subtypes, endorsements, and limits as needed.

Safety testing, tracking, and pesticide rules

Beginning October 1, 2025, growers, manufacturers, and dispensaries must send product samples to a testing lab before sale and join the state seed‑to‑sale tracking system. The Department may collect samples during inspections. Growers and manufacturers must follow the Montana Pesticides Act when using pesticides. Manufacturers must make products only at licensed sites, use dedicated equipment, and meet local retail‑food health standards. The Department may write rules to inspect facilities, check concentrate output, verify owners and financial interests, and set or limit THC levels sold at dispensaries.

Local approval required in some counties

Beginning October 1, 2025, if your manufacturing site or dispensary would be in a county that voted against Initiative 190 on November 3, 2020, you must show local government approval before the state issues the license.

What adults can buy and THC limits

Beginning October 1, 2025, adult‑use dispensaries may sell marijuana, products, and live plants to adults 21+ and to registered cardholders. The law sets potency and package limits: flower up to 1 ounce and 35% THC; capsules 100 mg each and 800 mg per package; tinctures 800 mg per package; edibles 100 mg per package and 10 mg per serving; topicals 6% THC and 800 mg per package; patches and suppositories 100 mg each and 800 mg per package; other products 800 mg per package. A 10% deviation is allowed. Dispensaries may sell higher‑potency products to registered cardholders. Sales must not push a buyer over legal personal possession amounts. “Retail price” now means the price before any discounts.

Medical sales only for cardholders

Starting Oct 1, 2025, medical dispensaries sell marijuana, products, and live plants only to registered medical cardholders. If you do not have a medical card, you cannot buy from medical dispensaries.

Public list of licensees and owners

Beginning October 1, 2025, the Department keeps a public registry of licensed marijuana businesses. It posts licensee names, phone numbers, controlling owners’ names, and the city, town, or county of the site. It does not post street addresses, but it may share them with other government agencies and the state fire marshal.

Updated marijuana terms and product status

Beginning Oct 1, 2025, the law updates who counts as consumers (21+), cultivators, manufacturers, transporters, dispensaries, and other roles. It also says marijuana products are not treated as food or drugs under Title 50, chapter 31. These changes affect which rules and labeling standards apply to marijuana businesses.

When these new rules start

Most changes take effect Oct 1, 2025. Sections 1 and 9 and the effective-dates section take effect on passage and approval. Section 1 applies to tax quarters that start after June 30, 2025.

Hotline to report violations, with privacy

Beginning October 1, 2025, the Department runs a hotline to report suspected abuse of marijuana laws. It may investigate or refer cases to local law enforcement. To file a complaint, you must be a state resident and give your name, street address, phone number, and the grounds. Complaints are confidential and not public unless a court finds disclosure is in the public interest or the information is confidential criminal justice information.

Public can see some complaints

Beginning Oct 1, 2025, the Department posts complaints about violations of 16-12-117(3). It shows the types of businesses or products reported and any discipline taken.

Sponsors & Cosponsors

Sponsor

Josh Kassmier
Republican • Senate

Cosponsors

Jonathan Karlen
Democrat • House

Roll Call Votes

All Roll Calls

Yes: 228 • No: 67

Senate vote • 4/17/2025

Do Concur

Yes: 70 • No: 28

Senate vote • 4/15/2025

Do Concur

Yes: 73 • No: 24

Senate vote • 3/27/2025

Do Pass

Yes: 38 • No: 12

Senate vote • 3/21/2025