Montana Senate approves moratorium on new marijuana sites, backs outfitter endorsement; education endowment fails

The Montana State Senate on Feb. 4 approved a two-year freeze on new recreational marijuana retail locations, voted to restore outfitter endorsement for commercial guides, approved a $5-per-rental snowmobile trail-enhancement fee and left an education endowment proposal short of passage.

Senators passed Senate Bill 27, a measure that bars the Department of Regulation from issuing new dispensary location licenses through 2027 and restricts license applicants to relationships with existing licensed premises. The bill advanced out of the committee of the whole on a 42-8 vote after floor debate that split along concerns about competition and public-health impacts.

Senate Bill 27’s sponsor, Pro Tem Bogner, told the committee the bill "would allow for the orderly growth of the recreational marijuana industry" and said the executive budget projects several hundred new businesses over the biennium. Opponents argued the measure effectively protects incumbents and could raise the value of existing licenses. “If you’re gonna freeze the footprint…you’re gonna increase the value of those current existing facilities,” said Senator Trevis.

Why it matters: supporters said the freeze gives regulators time to assess public-health and enforcement impacts tied to the proliferation of high-THC products; opponents said it limits market entry and advantages incumbents.

The Senate also voted to undo part of prior licensing changes for guides. Senate Bill 183 would require an outfitter endorsement or affiliation for guide licensure, reversing a prior red-tape reduction that removed the endorsement requirement. Senator Hertz, the bill sponsor, said the earlier change had led to people operating as guides outside the supervision of outfitters and had produced safety and quality concerns; he urged the Senate to "unwind what the red tape relief did and get back to where we are to allow and make sure that we have very high quality guides out there who are under supervision of an outfitter." The measure passed second reading 39-11.

On another debated item, Senate Bill 159, which would have transferred $100 million from the general fund into the coal trust to establish an education endowment, failed to pass on second reading; the vote recorded 22 in favor and 28 opposed. Senator Emmerich described the bill as creating an endowment modeled on other states that would dedicate proceeds partly to education programs and partly to the general fund, but the motion did not carry.

Senators advanced several other bills with comparatively brief debate. Senate Bill 165 creates a $5 trail enhancement fee to be charged per snowmobile rental; those funds are to be remitted monthly to Montana Fish, Wildlife & Parks and distributed principally to local grooming clubs for trail maintenance, with up to 2% available for program administration. The bill passed second reading 45-5.

Senate Bill 182, which adjusts the administration and coordination of the Montana Indian Language Preservation Program and removes a previous mandate that tribes partner with school districts (leaving partnership as an option), passed 38-12. Sponsor Senator Windy Boy said shifting administration to the Office of Public Instruction had revealed items that needed clarification, such as curriculum templates and licensure pathways for native-language teachers.

Votes at a glance (selected items from the day's proceedings): - SB 27 (marijuana licensing freeze): committee recommendation do pass; second-reading tally recorded 42 ayes, 8 nays (passed second reading). - SB 80 (digital livestock permits): second-reading recorded 50 ayes (passed second reading). - SB 159 (education endowment transfer $100M): failed on second reading, 22 ayes, 28 nays. - SB 182 (Montana Indian Language Preservation Program adjustments): passed second reading, 38 ayes, 12 nays. - SB 46 (underground storage tank fees): passed second reading, 46 ayes, 4 nays. - SB 183 (outfitter endorsement for guides): passed second reading, 39 ayes, 11 nays. - SB 165 (snowmobile trail enhancement fee, $5 per rental): passed second reading, 45 ayes, 5 nays. - SJ 3 (congressional action on CDL rules for school bus drivers): passed the Senate on third reading, 46 ayes, 4 nays.

What officials said and next steps: for bills that passed second reading, sponsors requested final consideration on third reading in future floor sessions; several measures were re-referred to Senate Finance and Claims for further fiscal review. Bills that passed third reading move to the House or (for Senate joint resolution) to the Senate’s next procedural steps per legislative rules.

Context and fiscal notes: supporters of SB 27 cited growth forecasts for licensed cannabis sites and workload concerns for the Cannabis Control Division; opponents characterized the measure as protectionist. Fiscal notes cited in committee for bills such as SB 165 described special-account administration and said the snowmobile fee would not affect the general fund. The education endowment bill included a proposed $100 million transfer from the general fund into the coal trust to create an endowment; the Senate vote halted that proposal for now.

The Senate concluded the day by adopting the committee report and adjourning until the next scheduled legislative day.