Business
June 12, 2024

Understanding Montana’s Cannabis Laws & Regulations

Montana’s cannabis laws have went through some major changes recently, which makes navigating them a little difficult attimes. Understanding these laws is very valuable for both consumers and operators of dispensaries, as proper knowledge of Montana’s legal system will allow you to stay safe and in accordance with the law.  

How The Cannabis Industry Took Off in Montana

Throughout history, Montana has had some of the strictest laws regarding cannabis consumption and distribution. However, this all began to change with the passing of Initiative 190, which was one ofthe most groundbreaking pieces of legislation in Montana regarding this topic.

According to the Initiative Petition, individuals can now possess and use limited amounts of marijuana in accordance with the law. This law also required the Department of Revenue to “license and regulate the cultivation, transportation,and sale” of cannabis and cannabis-related products.

This piece of legislation also advanced inspections of marijuana production facilities and distribution centers forsafety and legal compliance. However, this law still ended up limiting advertising, as advertising cannabis of any kind is still illegal in Montana.

Something to be mindful of is that in order to purchase any cannabis products, you need to be 21 years of age. People under 21 are not allowed to own, consume, or distribute any cannabis products.  

How These Regulations Are Affecting the Industry

These regulations have changed the industry because while legalizing it and allowing the industry to thrive to some extent, they have also made things complicated for distributors. The I-190 legislation puts a 20% tax on non-medical marijuana, which is pretty hefty. It’s important to be mindful of your markups as a distributor, as 20% of your profit is essentially being eaten away right off the bat.

However, on the bright side, it looks as if 10.5% of the tax revenue goes to the state’s “general fund”, whereas the remainder goes to substance abuse programs and treatment. It looks like overall, the legalization of marijuana in Montana has benefited the industry via it's growing popularity, and made a dent in improving the substance abuse situation in the state.

Another really important aspect of I-190 is that it allows anyone currently serving a conviction to either seek are sentencing or an expungement from their current conviction. This is truly one of the most valuable parts of this law. 

Consumers’ Rights Under the Law

For consumers, they are protected under a 180-day rule regarding identification. A business is allowed to scan one’s ID for verification, but they can only keep those records for 80 days. They are also not permitted to give that information to the state, or to disclose itto any third party.

Consumers are permitted to keep marijuana on their person at all times except for when in possession of a weapon, according to the Gun Control Act of 1968. They also are not able to keep any open cannabis in the car. When driving, it must be limited to “unopened, original packaging” and stored outside of what is referred to as a “passenger area”. It’s important that you read up on the intricacies and nuances of this aspect of the law, as it might be easy to get the term “passenger area” confused.

You should also be extremely mindful about the weight of marijuana you have on you, as you cannot possess more than a gram.

How Does this Affect Cannabis Dispensaries?

Dispensaries need to be mindful of a few different things, including avoiding going over 35% THC, as well as ensuring that the product is actually produced in the state of Montana. This shouldn’t be a big problem, however, as most plants are in the 15%-25% range. 

Edibles are also regulated, and they can’t have more than 100mg of THC in a package. There is an important exception madefor medicinal use.

Dispensaries are also allowed to sell CBD products, but cannot actually sell hemp plant material.  

Wrapping Things Up

Ultimately, despite a few stipulations and complications, Montana has made some big strides regarding cannabis production, ownership, and consumption. From being a state that historically had virtually zero tolerance for marijuana, they have opened up a giant new market.

You should make sure to pay attention to some of the few nuances in the law, especially regarding how much you’re allowed tohave on you at one time, as well as where you’re allowed to consume it.

You are absolutely not allowed by law to smoke in public, or on public premises.

Remember to be mindful, safe, and keep your purchases to under a gram.

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