In January 2022, Montana initiated the sales of recreational cannabis. One year later, various bills proposed by Republican lawmakers have been passed to enhance the regulation of this rapidly growing industry. These bills impose restrictions on advertising for marijuana businesses, stipulate the inclusion of warning labels for pregnant women, and mandate cultivators to control the odor of cannabis near their growing facilities.
Three noteworthy bills were tabled by committees. The first bill aimed to eliminate taxes on medical marijuana, while the second bill proposed an increase in the required distance between new cannabis businesses and schools and places of worship. Lastly, a third bill aimed to prohibit the state from retaining public information on individuals with expunged cannabis-related charges.
This is the current status of those bills as of the transmittal break.
BANNING BUSINESSES FROM ADVERTISING
Rep. Kerri Seekins-Crowe, R-Billings, introduced House Bill 351 in late January. In its initial form, the bill called for a blanket ban on marijuana businesses’ ability to advertise. The ban included outdoor signage, radio, TV or any print media. The bill did permit businesses to advertise via their own website or various national listing services.
The bill introduced by Seekins-Crowe aimed to reinforce the purpose of the previous session’s House Bill 701, which established the framework for cannabis legalization approved by the 2021 Legislature.
However, according to the current regulations set by the state Department of Revenue, businesses are allowed to promote their brands but are prohibited from advertising specific products.
The bill resulted in a heated hearing. Two dozen representatives of the cannabis industry and media organizations opposed it, while only two individuals — both associated with the anti-recreational cannabis group Safe Montana — spoke in its favor.
The bill allowing outdoor signage was passed by the House on March 3 with a vote of 63-35.
ODOR CONTROL FOR CANNABIS GROWERS
Rep. Jedediah Hinkle, R-Belgrade, sponsored House Bill 304, which passed out of the House on a vote of 80-19. The bill requires cannabis growers to install a “properly operating air filtration system” or other “odor neutralization system.” If passed, the bill would go into effect on Jan. 1, 2024. It provides businesses with a three-month grace period to implement the necessary systems.
Through an amendment, the bill no longer includes the provision that mandated grow facilities to be ventilated in a way that prevents the detection of marijuana odor by individuals with a normal sense of smell outside of the facility.
The House Business and Labor Committee opted instead for a policy employed in Colorado that sets a threshold of one volume of odorous air per seven volumes of odor-free air. Officials can measure odorous air with equipment such as the Nasal Ranger.
Opponents of the bill argued in a hearing that the onus of regulation should fall on local governments and that agriculture is inherently smelly. Business owners also pointed out that they had already sought and received approval for their operations.
WARNING LANGUAGE FOR PREGNANT WOMEN
Rep. Jane Gillette, R-Bozeman, sponsored House Bill 611, which requires cannabis packaging to include warnings directed specifically at pregnant women. If enacted, the bill would go into effect on July 1, 2024.
During a House Business and Labor Committee hearing held Feb. 27, Gillette argued that pregnant women who consume cannabis pass “genetic abnormalities” such as Down Syndrome and “inheritable” cancers to their children. She cited two scientific studies during the hearing, both authored by collaborative teams at two Australian universities.
HB 611 did not receive any support from its proponents. However, numerous representatives from the cannabis industry spoke out against the bill, criticizing Gillette for relying on unsupported scientific claims in her testimony advocating for it.
The bill was approved by the House with a voting result of 73-25.
CRIMINALIZING THE SALE OF HEMP-DERIVED CANNABINOIDS TO MINORS
Sen. Jeremy Trebas, R-Great Falls, sponsored Senate Bill 471, which would criminalize the sale of various hemp-derived cannabinoids and kratom to minors.
Cannabinoids derived from hemp have comparable effects to Delta-9 THC, which is the main active component in cannabis. These cannabinoids, such as Delta-8 THC, HHC, and Delta-10 THC, can be produced from CBD extracted from hemp that is legally allowed by federal regulations. Retailers have the option to offer these products in different forms like gummies, vape cartridges, and beverages.
The bill similarly bans the sale of kratom to minors. Kratom is a substance derived from a tree of the same name that can reportedly simulate the effects of an opioid or stimulant.
The bill progressed through the Senate with a vote of 46-4.
DRUG SCREENING FOR DRIVERS
Sen. Keith Regier, R-Kalispell, sponsored Senate Bill 13, a clean-up bill that clarifies that law enforcement may use blood or oral fluid tests on drivers who are suspected of driving under the influence of marijuana and other drugs.
Kate Cholewa of the Montana Cannabis Industry Association opposed the bill during a hearing, and argued that the tests in question are not reliable. Another opponent, Merilee Watne, noted that THC, the active compound in marijuana, can remain in the human body for several weeks after consumption. The bill passed the Senate on a vote of 49-0.
TABLED: REMOVING MEDICAL TAX AND EXPUNGEMENT BILL
During the initial half of the 2023 session, several bills pertaining to cannabis were introduced and discussed in committee.
- House Bill 420 would have eliminated both the state tax on medical marijuana and any local-option taxes on medical marijuana. Rep. Mike Hopkins, R-Missoula, introduced the bill.
- House Bill 673, also sponsored by Hopkins, would have removed personal and legal information related to cases where individuals had a marijuana-related charge expunged from any “publicly available internet website.”
- House Bill 265, sponsored by Rep. Tanner Smith, R-Lakeside, would have increased the required distance between a new cannabis business and public spaces like churches or schools from 500 feet to 1,000 feet.
LOOKING AHEAD
Lawmakers will further discuss the distribution of marijuana revenue during the second half of the legislative session, in addition to the bills mentioned previously.
House Bill 462 is being carried by Rep. Marta Bertoglio, R-Montana City, but comes from the governor’s office. That bill would redistribute tax revenue generated by Montana’s cannabis industry: it eliminates an estimated annual $8-$9 million for the Habitat Montana conservation program and puts more funds toward various law enforcement initiatives. The House Appropriations Committee heard the bill in February, but has not yet taken executive action on it. Cannabis sales have generated $50 million in tax revenue since January 2022.
Lawmakers will also consider House Bill 128, a clean-up bill crafted by the Economic Affairs Interim Committee. The bill clarifies tribes’ access to licenses — a point of contention during the legislative interim — and puts testing laboratories under the purview of the state Department of Revenue. The labs are currently overseen by the Department of Public Health and Human Services.
This story was updated March 13, 2023, to clarify the specifics of testimony offered by Rep. Jane Gillette regarding House Bill 611.
