Montana lawmakers approve new fees for marijuana cultivation and dispensary licenses

Montana's Senate Bill 27, introduced on February 12, 2025, aims to reshape the state's marijuana licensing framework, addressing both cultivators and dispensaries. This legislation comes in response to the evolving landscape of cannabis regulation in Montana, particularly following the passage of Initiative Measure No. 190 in 2020, which legalized adult-use marijuana.

The bill proposes a tiered fee structure for cultivators, with fees ranging from $27,000 for a tier 10 canopy license to $37,000 for a tier 12 license. This approach simplifies the licensing process by imposing fees based solely on the tier of licensure, rather than on each individual cultivation facility. Additionally, it allows former medical marijuana licensees who previously engaged in outdoor cultivation to continue their practices, providing a pathway for those affected by regulatory changes.

For dispensaries, SB 27 stipulates that applicants must demonstrate local government approval, particularly in counties where voters opposed the 2020 initiative. This provision aims to ensure that local sentiments are respected in the licensing process. The bill also allows adult-use dispensaries to operate alongside medical marijuana dispensaries if they are owned by the same entity, promoting operational flexibility.

The proposed licensing fees for dispensaries start at $5,000 for the first location, increasing by $5,000 for each additional site under the same license. This structure is designed to generate revenue while encouraging responsible business practices within the cannabis industry.

Debate surrounding SB 27 has highlighted concerns about the potential economic impact on small cultivators and dispensaries, with some advocates arguing that the high fees could stifle competition and limit access to the market. Opponents of the bill express fears that the stringent local approval requirements may hinder the growth of the cannabis industry in areas where it could thrive.

As Montana continues to navigate the complexities of cannabis regulation, SB 27 represents a significant step in establishing a more structured and equitable framework for both cultivators and dispensaries. The bill's implications could resonate throughout the state's economy, influencing job creation, tax revenue, and community attitudes toward cannabis use. As discussions progress, stakeholders will be closely monitoring the bill's trajectory and its potential effects on Montana's burgeoning cannabis market.