Montana Legislature amends dispensary licensing rules for adult-use and medical marijuana

House Bill 636, introduced in the Montana Legislature on April 16, 2025, seeks to amend existing regulations surrounding the licensing and operation of marijuana dispensaries in the state. The bill primarily aims to clarify the licensing process for both adult-use and medical marijuana dispensaries, particularly in areas where local voters previously opposed marijuana legalization.

One of the key provisions of HB 636 is the requirement for dispensary applicants to demonstrate compliance with local government approval if their proposed location is in a county where the majority of voters rejected Initiative Measure No. 190 during the November 2020 election. This provision is designed to ensure that dispensaries are established in accordance with local sentiment regarding marijuana use.

The bill also outlines the licensing fees for dispensaries, setting an initial fee of $5,000 for the first location, with an additional $5,000 fee for each subsequent location under the same license. This tiered fee structure aims to regulate the growth of dispensaries while generating revenue for the state.

Notably, HB 636 allows adult-use dispensaries to operate in shared locations with medical marijuana dispensaries, provided they are owned by the same individual. This provision could streamline operations and reduce costs for dispensary owners, potentially increasing access to marijuana products for consumers.

The bill has sparked discussions among lawmakers and stakeholders, particularly regarding its implications for local governance and the marijuana market in Montana. Supporters argue that the bill balances state regulations with local control, while opponents express concerns that it may undermine local voter decisions.

As the legislative session progresses, the bill's future remains uncertain, with potential amendments and debates expected as lawmakers consider its broader economic and social implications. If passed, HB 636 could significantly impact the landscape of marijuana dispensaries in Montana, shaping how they operate and are regulated in the coming years.