HELENA — Montana’s adult-use recreational marijuana system, launched in 2022, has imposed limits on market entry. State lawmakers are now considering extending these limits in a different way.
Recently, the Montana Legislature’s Economic Affairs Interim Committee discussed potential marijuana-related bills for the 2025 session. One proposal suggests freezing the number of marijuana dispensaries and facilities for two years.
Since the commencement of legal sales, Montana has had a moratorium, allowing only licensed providers from the state’s medical marijuana system to participate in the recreational market. Last year, the Legislature extended this moratorium for two more years.
While the number of licensees was restricted, providers could open additional “licensed premises,” including dispensaries. The new proposal aims to prevent any new licensed premises from being added between July 1, 2025, and June 30, 2027.
Pepper Petersen, president and CEO of the Montana Cannabis Guild, stated, “This time, we’re talking about a freeze on all cannabis-related business location licensing…no new growers, kitchens, storage facilities, or dispensaries – the part the public will notice.”
Industry representatives view the proposal as a new policy, as it eliminates the requirement for licensees to be former medical providers, enabling the sale or transfer of businesses to new owners. Petersen emphasized the need for local governments to play a more active role in controlling dispensary growth through zoning or regulations.
Local governments like Cascade County and the city of Missoula have considered regulating marijuana businesses. Missoula is scheduled to hold a public hearing next month regarding a proposal to pause issuing business licenses for new dispensaries.
Lawmakers also discussed drafting a bill to clarify local governments’ authority to regulate marijuana businesses and a “cleanup” bill to make technical changes to marijuana laws. Additionally, a proposed resolution to support the federal SAFER Banking Act, allowing legal marijuana businesses to access banking services, was reviewed. The committee will further examine these proposals and potential amendments at an upcoming meeting in August.
