Montana has seen a surge in marijuana tax revenue since the state legalized recreational cannabis use in 2021. In its first major revision proposed to Montana's marijuana laws since legalization, a House panel heard a bill that would restrict the ability of dispensaries to advertise. The panel also heard a bill that would prevent new licenses from being issued in voting precincts where the majority voted against legalization.
The proposed bills come as Montana recorded $48.5 million in adult-use tax revenue on $230 million worth of sales since the legal market launched in January 2022. While the bills were presented, the Senate Labor and Commerce Committee gutted the major provisions of a psilocybin services legalization bill, which Montana Gov. Gianforte had previously supported.
The first bill, known as HB 265, would block the state from approving any new adult-use or medical marijuana dispensary licenses in voting precincts where the majority voted against legalization. This would prevent businesses from taking advantage of the tax revenue the state has seen since legalization.
The second bill, known as HB 351, would restrict Montana's approximately 400 dispensaries' ability to promote themselves, and prevent media organizations from advertising for them. If passed, the bill would also restrict the ability of dispensaries to promote their products on social media, potentially cutting into the profits of existing businesses.
The proposed bills have been met with strong opposition from medical marijuana advocates, who argue that the restrictions are excessive and will prevent patients from accessing their medicine. Medical advocates say the minimum age for purchasing cannabis should be 25, but it will likely be 21 if cannabis is legalized in Minnesota this session.
Equally galling for Wild West Wellness' competitors is that because they are not licensed by Montana's Cannabis Control Division, they do not have to follow the state's regulations. This has allowed them to offer more competitive prices and has resulted in some of the state's dispensaries losing business.
The proposed bills also come at a time when Montana's marijuana revenue is projected to bring in $172 million over the next two years, with the money going to fund public health and education initiatives. The state's Fish, Wildlife, and Parks Commission has established a legal and wildlife-friendly marijuana program, which is intended to help fund the state's conservation efforts.
