Legal recreational cannabis sales will begin on January 1, 2022 in Montana. However, laws and regulations have yet to pass the Economic Affairs Interim Committee, which has been working with the Department of Revenue to create these rules. On December 9, all rules received a roadblock from the interim committee, effectively killing them. But the committee met again on December 13, and after some revisions, all rules became adopted. This created a framework for sales for the beginning of the new year. 

Senator Jason Ellsworth, R, along with Senator Shane Morigeau, D, worked with the Department of Revenue to clarify language and proposed amendments to make the rules as clear as possible.

“I would say that trying to pass a comprehensive rules package that is on a key piece of legislation that affects everyone in Montana is a very difficult task,” explained Senator Ellsworth. “We have to be precise, in our wording, phrasing and it’s very important to get that accurate. We only get one opportunity at this, and we need to make sure that we get it right.”

The sort of flip-flop situation is similar to HB 701, the bill that legalized recreational cannabis in Montana. A few House committees rejected original drafts, but after hearing other committees had also rejected original drafts, votes changed. All three proposals, which had initially failed, passed the House and moved to the Senate for further debate. 

Concerns About HB 701

Three concerns became raised surrounding the language of HB 701 and how the Department of Revenue would move forward with their regulation. First, language wouldn’t allow for Native tribes to scale up their production like commercial dispensaries. Additionally, tribes had only received one cultivator license under state law. Both Ellsworth and Morigeau clarified language to allow for tribes to scale up their production like commercial dispensaries can. 

Second, there was talk of issuing a moratorium for licensing new testing facilities. This would give existing testing labs, established for medical cannabis testing, to have an advantage during the early market days of recreational cannabis. The moratorium was removed later to push the rules forward. 

Finally, the senators expressed concern for outdoor cultivators. Under HB 701, outdoor growth operations are no longer allowed. Previously, they had been under medical cannabis rules. The senators created language to allow outdoor growers to continue operating outside with the exception that they can’t upscale their operation. Any new growers will operate out of indoor facilities and can upscale as needed. 

Future

With these cannabis rules finally in place, the Department of Revenue can begin issuing licenses for cultivators, distributors, and dispensaries. Recreational cannabis sales will begin on January 1, 2022. This is just over one year after voters approved recreational cannabis legalization during the 2020 general election. Some expect sales to begin slowly. But they should gain momentum as the year goes on. 

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