More than two years after voters approved a measure legalizing recreational cannabis, and more than a year after the launch of the state’s regulated marijuana market, a Montana lawmaker wants to undo all of that. 

Last week, Republican state Sen. Keith Regier introduced a bill that includes a slate of reforms to Montana’s cannabis policy, most notably “eliminating adult-use dispensaries.” 

According to Montana Free Press, the bill “additionally raises the state tax on medical marijuana from 4% to 20% and puts significant limits on medical marijuana potency and allowable amounts for possession,” and although it would once again prohibit recreational cannabis, it would not “re-criminalize marijuana possession for adults.”

Regier’s bill states plainly its objective: “reduce the demand for marijuana sales.”

Montana Free Press has more background on the proposal:

“If passed into law, the bill would drastically reduce the potential consumer base for existing marijuana businesses and eliminate a significant source of revenue for state coffers. Since adult-use sales began in January 2022, Montana has generated $54 million in tax revenue from the industry. Less than one-tenth of that revenue came from medical marijuana taxes. Currently, recreational customers pay a 20% tax to the state; some counties add an additional 3% local tax.

The outlet reported that the bill will be the subject of a hearing on Wednesday in the Senate Business, Labor and Economic Affairs Committee.

Nearly 57% of Montana voters approved Initiative 190 in 2020, which legalized marijuana for adults aged 21 and older, and also laid the groundwork for cannabis sales to be taxed. 

Recreational cannabis sales launched last year, bringing in more than $200 million to the state in 2022.

According to the state, recreational marijuana sales amounted to $202,947,328 in 2022, while medical cannabis sales totaled $93,616,551. (Voters in Montana legalized medical marijuana treatment in 2004.)

The two combined to generate a grand total of $303,563,879 in marijuana sales last year. 

Montana generated $41,989,466 in tax revenue off recreational pot sales, according to the Department of Revenue, and $3,744,662 in taxes from medical cannabis sales. Combined, the state pulled in $45,734,128 in tax revenue from marijuana sales in 2022.

Marijuana reform has been a hot topic in Montana’s legislative session this year. 

Earlier this month, the Business and Labor Committee “heard testimony on two marijuana-related bills,” according to local news station KTVH –– one of which “would prohibit marijuana businesses in Montana from promoting their business or brand in print, over TV and radio or using a billboard,” while the other “would revise the required warning labels that marijuana businesses must put on their products, to say that marijuana use during pregnancy could result in ‘congenital anomalies, and inherited cancers developed by a child later in life.’”

The station reported that the proposed ban on advertising “drew opposition from marijuana businesses and from the Montana Newspaper Association,” with opponents saying that “most people in the industry have gone to great lengths to make sure their advertising follows the current rules, and most of the issues people are concerned about have come from a few bad actors.”

There have been debates over other cannabis bills, too, including one that “would require marijuana growers and manufacturers of marijuana products to install air filtration systems to address concerns about odor,” according to KTVH, as well as several proposed bills to change how the state distributes the marijuana tax revenue.

“In particular, they propose removing a section in state law that directs a percentage of taxes from marijuana sales toward Habitat Montana – a program that uses state funds for wildlife habitat conservation projects. Gov. Greg Gianforte has said the program has more than enough funding and no longer needs the marijuana revenue,” the station reported.

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Montana raked in more than $200 million in its first year of recreational cannabis sales, the state reported this week.

The Montana Department of Revenue released figures detailing how much money was generated in both medical and recreational marijuana sales in 2022.

Last year marked the launch of the state’s recreational marijuana market. Voters there legalized medical cannabis in 2004. 

The Department of Revenue said that adult-use marijuana sales totaled $202,947,328 in 2022, while medical cannabis sales amounted to $93,616,551.

The two combined to generate a grand total of $303,563,879 in marijuana sales last year. 

Montana generated $41,989,466 in tax revenue off recreational pot sales, according to the Department of Revenue, and $3,744,662 in taxes from medical cannabis sales. Combined, the state pulled in $45,734,128 in tax revenue from marijuana sales in 2022. 

The state levies a 20% take on recreational pot sales, and a 4% tax on medical marijuana.

The Department of Revenue said all figures were estimates. 

Voters in Montana approved a ballot measure in 2020 to legalize recreational cannabis, one of four states that year where voters passed legalization proposals. The law took effect in 2021.

 “Since January, we’ve been focused on implementing the will of Montana voters in a safe, responsible, and appropriately regulated manner. House Bill 701 accomplishes this,” Gov. Greg Gianforte said in May of 2021, as quoted by local news station KTVH. “From the start, I’ve been clear that we need to bring more resources … to combat the drug epidemic that’s devastating our communities.”

Chief among Gianforte’s concerns with the new law was the creation of the HEART Fund, which subsidizes substance abuse treatment in Montana with revenue from recreational marijuana sales. 

“Funding a full continuum of substance abuse prevention and treatment programs for communities, the HEART Fund will offer new support to Montanans who want to get clean, sober, and healthy,” Gianforte said after signing the bill into law in 2021, as quoted by KTVH.

As in other states that have ended the prohibition on pot use for adults, Montana’s new law contains a component to redress harms that have resulted from the War on Drugs. 

The law “authorizes courts to either resentence or expunge marijuana offenses now considered legal or lesser offenses, but does not enact an automatic expungement process,” according to Montana Free Press, but the “the expungement policy has faced criticism as cumbersome and unclear.”

In March of last year, the state Supreme Court issued temporary rules intended to help clarify the expungement application procedure.

The law says that “anyone convicted of an offense that would now be legal in the state can petition to have their conviction removed from their record, get a lesser sentence for it or reclassify it to a lesser offense,” according to the Missoula Current.

The biggest clarification issued by the Montana Supreme Court, the Missoula Current noted, was to inform individuals that “they could submit their expungement request to the court where they were originally sentenced.”

After President Joe Biden issued pardons to everyone with a federal conviction for marijuana possession in October of last year, he encouraged all states to follow his lead. 

A spokesperson for Gianforte told the Montana Free Press at the time that the “governor will continue to evaluate clemencies submitted through the Board of Pardons and Parole on a case-by-case basis, in accordance with [state] statute.”

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Telemedicine is a modern-day solution to healthcare problems for those in rural parts of the world, and now cannabis telemedicine also exists. Folks in Montana now have access to a platform called NuggMD that connects state licensed medical marijuana doctors to patients virtually. 

NuggMD, an already-established medical cannabis telemedicine platform, is launching its service in Montana. People who wish to be patients simply have to cough up the barrier of entry of $129 to be able to use the service. The platform is already being used by doctors and patients in California, Connecticut, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Texas, and Virginia.

Despite its rural population, Montana is doing well when it comes to legal cannabis. They made record sales in June of over $17.2 million spent on recreational pot and over $7 million spent on medical cannabis, totaling almost $25 million in cannabis sales just for the month. The total for the year so far is $148 million. The highest cannabis sales are in Yellowstone County, which hit $4.1 million in June, 32% of those being recreational. On opening weekend of legal cannabis sales in the state, the total was already at $1.5 million.

“Yellowstone’s success makes it obvious that cannabis has been a huge boon for the tourist industry in Montana,” says Alex Milligan, CMO and co-founder of NuggMD. “But the medical market is still running strong in the state because the program provides powerful advantages for Montana patients.”

In Montana, medical patients can purchase the same amount of cannabis as recreational users, but there are still some perks. They can purchase more potent cannabis and save 16% on their sales taxes. They can also grow twice as many plants and, like in many other legal and medical states, go to special, medical-only dispensaries, which is a major bonus for those who don’t live close to a bigger town or city with lots of recreational spots.

“It’s easy to see why so many Montanans still carry medical marijuana cards, despite recreational legalization,” says Collin Mann, CEO and NuggMD co-founder. “We’re excited to join the cannabis community in Montana and provide them with the best service in the state.”

Those who want to utilize the NuggMD platform can log in seven days a week from 8 a.m. to 10 p.m. local time. No appointment is necessary, and those who don’t end up qualifying for a medical cannabis card are not charged for their meeting with doctors. 

In addition to taking medical patients seriously, the state is also working on overturning past convictions in order to heal the harms done by the War on Drugs. As such, the state has been doing the work to clear those charges and provide resources to those who are struggling. An expungement ruling passed by the state’s Supreme Court claims “anyone convicted of an offense that would now be legal in the state can petition to have their conviction removed from their record, get a lesser sentence for it or reclassify it to a lesser offense.”

“From the start, I’ve been clear that we need to bring more resources to bear to combat the drug epidemic that’s devastating our communities,” Republican Gov. Greg Gianforte says regarding bringing legal cannabis to the state. “Funding a full continuum of substance abuse prevention and treatment programs for communities, the HEART Fund will offer new support to Montanans who want to get clean, sober and healthy.”

As more cannabis resources continue to make their way to Montana, the already booming legal and recreational cannabis industries will keep surviving and thriving, paving the way for even more revenue and patient access. 

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