16-12-301. Local government authority to regulate — opt-in requirement in certain counties — exemption for existing licensees. (1) (a) Except as provided in subsection (1)(b), a marijuana business may not operate in a county in which the majority of voters voted against approval of Initiative Measure No. 190 in the November 3, 2020, general election until:

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Terms Used In Montana Code 16-12-301

  • Adult-use dispensary: means a licensed premises from which a person licensed by the department may:

    (a)obtain marijuana or marijuana products from a licensed cultivator, manufacturer, dispensary, or other licensee approved under this chapter; and

    (b)sell marijuana or marijuana products to registered cardholders, adults that are 21 years of age or older, or both. See Montana Code 16-12-102

  • Cultivator: means a person licensed by the department to:

    (a)plant, cultivate, grow, harvest, and dry marijuana; and

    (b)package and relabel marijuana produced at the location in a natural or naturally dried form that has not been converted, concentrated, or compounded for sale through a licensed dispensary. See Montana Code 16-12-102

  • Department: means the department of revenue provided for in 2-15-1301. See Montana Code 16-12-102
  • Former medical marijuana licensee: means a person that was licensed by or had an application for licensure pending with the department of public health and human services to provide marijuana to individuals with debilitating medical conditions on April 27, 2021. See Montana Code 16-12-102
  • Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. Source: Federal Reserve
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Licensed premises: means all locations related to, or associated with, a specific license that is authorized under this chapter and includes all enclosed public and private areas at the location that are used in the business operated pursuant to a license, including offices, kitchens, restrooms, and storerooms. See Montana Code 16-12-102
  • Licensee: means a person holding a state license issued pursuant to this chapter. See Montana Code 16-12-102
  • Local government: means a county, a consolidated government, or an incorporated city or town. See Montana Code 16-12-102
  • Manufacturer: means a person licensed by the department to convert or compound marijuana into marijuana products, marijuana concentrates, or marijuana extracts and package, repackage, label, or relabel marijuana products as allowed under this chapter. See Montana Code 16-12-102
  • Marijuana: means all plant material from the genus Cannabis containing tetrahydrocannabinol (THC) or seeds of the genus capable of germination. See Montana Code 16-12-102
  • Marijuana business: means a cultivator, manufacturer, adult-use dispensary, medical marijuana dispensary, combined-use marijuana licensee, testing laboratory, marijuana transporter, or any other business or function that is licensed by the department under this chapter. See Montana Code 16-12-102
  • Medical marijuana: means marijuana or marijuana products that are for sale solely to a cardholder who is registered under Title 16, chapter 12, part 5. See Montana Code 16-12-102
  • Person: means an individual, partnership, association, company, corporation, limited liability company, or organization. See Montana Code 16-12-102
  • Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
  • Testing laboratory: means a qualified person, licensed under this chapter that:

    (a)provides testing of representative samples of marijuana and marijuana products; and

    (b)provides information regarding the chemical composition and potency of a sample, as well as the presence of molds, pesticides, or other contaminants in a sample. See Montana Code 16-12-102

(i)the category or categories of license that the marijuana business seeks has or have been approved by the local jurisdiction where the marijuana business intends to operate as provided in subsection (3) or (4); and

(ii)the business is licensed by the department pursuant to this chapter.

(b)A former medical marijuana licensee that does not apply for licensure as an adult-use dispensary may operate in its existing premises in compliance with rules adopted by the department pursuant to 16-12-201(2) notwithstanding a local jurisdiction’s failure to take action pursuant to subsections (3) through (6).

(c)A former medical marijuana licensee that intends to apply for licensure as a cultivator, manufacturer, adult-use dispensary, or testing laboratory may operate in compliance with rules adopted by the department pursuant to 16-12-201(2) notwithstanding a local jurisdiction’s failure to take action pursuant to subsections (3) through (6), provided that the former marijuana licensee has remained in good standing with the department.

(d)For the purpose of this section, the marijuana business categories that must be approved by a local jurisdiction under subsections (3) through (6) in a county in which the majority of voters voted against approval of Initiative Measure No. 190 in the November 3, 2020, general election before a business may operate are:

(i)cultivator;

(ii)manufacturer;

(iii)medical marijuana dispensary, except as provided in subsection (1)(b);

(iv)adult-use dispensary;

(v)combined-use marijuana licensee;

(vi)testing laboratory; and

(vii)marijuana transporter facility.

(e)Marijuana businesses located in counties in which the majority of voters voted to approve Initiative Measure No. 190 in the November 3, 2020, general election are not subject to the local government approval process under subsections (3) through (6).

(2)(a) To protect the public health, safety, or welfare, a local government may by ordinance or otherwise regulate a marijuana business that operates within the local government’s jurisdictional area. The regulations may include but are not limited to inspections of licensed premises, including but not limited to indoor cultivation facilities, dispensaries, manufacturing facilities, and testing laboratories in order to ensure compliance with any public health, safety, and welfare requirements established by the department or the local government.

(b)A former medical marijuana licensee that does not apply for licensure as an adult-use dispensary is exempt from complying with any local governmental regulations that are adopted under this subsection after July 1, 2021, until its first license renewal date occurring after January 1, 2022, or the expiration of any grace period granted by the locality, whichever is later.

(3)An election regarding whether to approve any or all of the marijuana business categories listed in subsection (1)(d) to be located within a local jurisdiction may be requested by filing a petition in accordance with 7-5-131 through 7-5-135 and 7-5-137 by:

(a)the qualified electors of a county; or

(b)the qualified electors of a municipality.

(4)(a) An election held pursuant to this section must be called, conducted, counted, and canvassed in accordance with Title 13, chapter 1, part 4.

(b)An election pursuant to this section may be held in conjunction with a regular election of the governing body, general election, or a regular local or special election.

(5)If the qualified electors of a county vote to approve a type of marijuana business to be located in the jurisdiction, the governing body shall enter the approval into the records of the local government and notify the department of the election results.

(6)(a) If an election is held pursuant to this section in a county that contains within its limits a municipality of more than 5,000 persons according to the most recent federal decennial census:

(i)it is not necessary for the registered qualified electors in the municipality to file a separate petition asking for a separate or different vote on the question of whether to prohibit a category of marijuana business from being located in the municipality; and

(ii)the county shall conduct the election in a manner that separates the votes in the municipality from those in the remaining parts of the county.

(b)If a majority of the qualified electors in the county, including the qualified electors in the municipality, vote to approve a category of marijuana business to be located in the county, the county may allow that category of marijuana business to operate in the county.

(c)(i) If a majority of the qualified electors in the municipality vote to approve a category of marijuana business to be located in the municipality, the municipality may allow that type of marijuana business to operate in the municipality.

(ii)If a majority of the qualified electors in the municipality vote to prohibit a category of marijuana business from being located in the municipality, the municipality may not allow that type of marijuana business to operate in the municipality.

(d)Nothing contained in this subsection (6) prevents any municipality from having a separate election under the terms of this section.

(7)(a) A county or municipality that has voted to approve a category of marijuana business to be located in the jurisdiction or a county in which the majority of voters voted to approve Initiative Measure No. 190 in the November 3, 2020, general election may vote to prohibit the previously approved or allowed operations within the jurisdiction.

(b)A vote overturning the approval of a category of marijuana business or prohibiting the previously permitted operation of marijuana businesses is effective on the 90th day after the local election is held.

(8)A local government may not prohibit the transportation of marijuana within or through its jurisdiction on public roads by any person licensed to do so by the department or as otherwise allowed by this chapter.