MontanaSB 7469th Legislature, Regular Session (2025)Senate

Generally revise marijuana laws

Sponsored By: Josh Kassmier (Republican)

Signed by Governor

AlcoholAlcoholRevenue, State

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 2 benefits, 2 costs, 7 mixed.

Stricter owner and funding checks

Beginning October 1, 2025, the law tightens who can own and fund marijuana businesses. Anyone at 5% ownership counts as a controlling beneficial owner (more than 15% for qualifying institutional investors). Applicants must list all owners and give fingerprints and dates of birth for any owner with at least 5%. Corporate applicants must provide an organizational chart and disclose bankruptcies, lawsuits, and owners with 5% or more. Funding must come from a suitable source; private loans and convertible securities can be a reportable financial interest, but bank loans and liens are excluded. You must affirm under penalty of perjury that passive owners and investors are allowed under the rules. The department can deny a license for disqualifiers like a recent felony, being under 21, unpaid taxes, child support, or student loans, a recent license revocation, or less than 1 year of Montana residency. A person cannot become a new controlling owner without written notice to the department and approval.

Annual license fees and deadlines

Beginning October 1, 2025, manufacturer license fees depend on monthly concentrate output: under 10 lb is $5,000 a year; 10 to under 15 lb is $10,000; 15 lb or more is $20,000. Dispensary licenses cost $5,000 per location each year. The Department must decide applications within 60 days for former medical or existing licensees and 120 days for new applicants. If it misses the deadline, your fee drops 5% for each week it stays pending, and you may keep operating until final action. Approved licenses must be issued within 5 days.

Tighter rules for growing and making

Beginning October 1, 2025, marijuana must be grown and made in Montana. Outdoor growing is banned except for a narrow exception in law. Manufacturers must make products only at licensed sites using dedicated equipment and must meet local retail food‑establishment health standards where they apply. Before sale, products must be tested, and all licensees must use the state seed‑to‑sale tracking; the department may take samples. Probationary testing lab licenses end; labs must fully qualify before operating. You may grow or make products only on property you own or on rentals with owner permission on file, and you may not share or sublease production space with another licensee. In counties that voted against Initiative 190, manufacturer applicants must show local approval. The law also covers synthetic cannabinoids made chemically or with biological methods. Marijuana products are not treated as food or drugs under Title 50, chapter 31.

THC caps and who can buy

Beginning October 1, 2025, dispensaries must follow set THC and package limits. Flower is capped at 1 ounce per package and 35% THC. Edibles are capped at 100 mg THC per package and 10 mg per serving. Capsules are up to 100 mg each and 800 mg per package; tinctures up to 800 mg per package. Topicals are up to 6% THC and 800 mg per package; patches and suppositories are up to 100 mg each and 800 mg per package. Other products are capped at 800 mg per package. A 10% wiggle room applies to several of these item types. Medical cardholders may buy higher‑potency items. Medical dispensaries may sell only to registered cardholders. Adult‑use dispensaries may sell to any consumer and to cardholders.

Store sharing, grower retail, no on‑site use

The department cannot forbid a compliant cultivator, manufacturer, or adult‑use dispensary from sharing a site with a medical dispensary. Adult‑use and medical dispensaries may share a store only if the same person owns both. Beginning October 1, 2025, using marijuana on licensed premises is banned. You may sell your marijuana business and assets only to a licensed buyer; the department may issue a temporary license to help the transfer. Starting October 1, 2025, cultivators may also run adult‑use dispensaries and make products if they get the required licenses.

Using contractors comes with new duties

Beginning October 1, 2025, licensees may hire third parties for any business work, but they must tell the department before work starts. Workers doing marijuana business tasks must get a worker permit. The licensee stays liable for third‑party violations. The law also removes the rule that kept many contractors out of the employee definition, so more contractors may be treated as employees for compliance.

Stronger dispensary checkout and ID privacy

Beginning October 1, 2025, dispensary staff must stop any sale that would put a buyer over the legal possession limit. Stores can only use your government ID to verify age. If they scan your license, they cannot sell or share the data and must delete it within 180 days unless another law or rule allows keeping it.

New license to transport marijuana

The law creates a transporter license. Transporters may move marijuana and products between marijuana businesses and to or from testing labs and may briefly store transported product at licensed premises. Transporters cannot sell to consumers.

New tax rules for dispensary sales

The law treats the retail price for marijuana taxes as the price after any discounts. Dispensaries must use this price when reporting taxable sales. Section 1 applies to tax quarters that start on or after July 1, 2025. This changes how and when you calculate taxable sales, not the tax rate.

When these changes take effect

Most of the act takes effect on October 1, 2025. Sections 1 and 9 and the effective‑date section take effect on passage and approval.

More transparency and complaint rules

The Department posts licensee names, phone numbers, and city or county locations, and lists controlling owners; street addresses stay private except for certain state agencies. Beginning October 1, 2025, anyone may file a complaint, including anonymously. Complaints are confidential unless a court allows disclosure or criminal‑justice rules apply. The department may choose whether to give a copy to the person named in a complaint. Starting October 1, 2025, the department must publicly share complaints about certain violations and any discipline. On request, it must also give the Economic Affairs Interim Committee a list of all controlling owners.

Sponsors & Cosponsors

Sponsor

Josh Kassmier
Republican • Senate

Cosponsors

Jonathan Karlen
Democrat • House

Roll Call Votes

All Roll Calls

Yes: 231 • No: 67

House vote • 4/17/2025

Do Concur

Yes: 70 • No: 28

House vote • 4/15/2025

Do Concur

Yes: 76 • No: 24

Senate vote • 3/27/2025

Do Pass

Yes: 38 • No: 12

Senate vote • 3/21/2025