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Sponsor seeks 5,000-population threshold for municipal marijuana votes; industry and small towns urge caution

House State Administration Committee · January 30, 2025
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Summary

House Bill 298 would require a minimum municipal population (the sponsor used 5,000 as a starting point) for a town to hold its own vote to allow recreational marijuana businesses. Proponents from small Granite County communities and prevention advocates supported the measure; cities, the Montana League of Cities and Towns, and the cannabis industry raised concerns about local control, economic impact and legal questions.

Representative Jedediah Hinkle told the committee House Bill 298 is intended to prevent a very small municipality from holding a local vote that would allow recreational marijuana businesses to operate in a county that previously voted against retail sales. Hinkle used Granite County and the town of Phillipsburg (population cited in testimony as 841) as an example where a small municipal vote could alter countywide access.

Hinkle said he placed 5,000 in the amended language as a starting point because other statute sections use 5,000 as a delineation; he said the number could be adjusted and is open to amendment. He told members the aim is predictability for businesses and to ensure adequate law enforcement and emergency services exist in the municipality.

Proponents included Granite County attorney Blaine Bradshaw, local residents (David Kessler), prevention specialists and representatives of Safe Montana, who argued the county lacks sufficient law enforcement and emergency resources and that multiple local referenda in Granite County have rejected recreational sales. Several testified that allowing a small municipality to effectively change county access undermines fairness for the broader county electorate.

Opponents included Thomas Jodoin of the Montana League of Cities and Towns, cannabis industry representatives, and municipal officials from towns that said the measure would improperly preempt local self-governance. Industry witnesses warned of investment risk, possible takings claims if businesses are closed, and economic harm in counties and towns where businesses operate. Municipal officials from West Yellowstone and other small towns urged preserving the ability of local voters to decide policies that reflect community preferences.

Committee questioning focused on whether the bill would grandfather prior municipal votes (sponsor said those would be preserved and the bill applies to elections held on or after the effective date), how to set an appropriate threshold (population vs. law-enforcement capacity vs. percent of county population), and takings risk for existing businesses. The sponsor indicated willingness to work on amendments, including grandfathering language and different threshold options.