Montana revenue officials brief lawmakers on cannabis regulation, hemp loophole and synthetic products

The Montana Department of Revenue’s Cannabis Control Division told the Senate Business, Labor and Economic Affairs Committee that it licenses and enforces Montana’s legal marijuana market while fielding emerging problems from synthetic and intoxicating hemp products.

Director Bridal Beatty introduced Kristen Barber, administrator of the Cannabis Control Division, who outlined the division’s responsibilities and the industry’s size. Barber said the division issues and oversees roughly 900 business licenses, more than 5,000 worker permits and about 14,000 registered medical cardholders, and inspects licensees across five regions with 12 inspectors.

The agency highlighted the program’s fiscal and regulatory scale: the adult-use tax rate set under state law is 20 percent (medical 4 percent) with a local option of up to 3 percent, estimated cannabis sales for January–November 2024 at about $920,000,000 and estimated related tax collections at $152,000,000. Barber told the committee the division’s FY budget supports 35 full-time positions and totals about $10,900,000 (personal services about $6,200,000;…