States beginning to reverse marijuana legalization?

In a move that could severely cripple Montana’s burgeoning cannabis industry, Republican Senator Keith Regier has introduced legislation that would effectively scrap the state’s recreational sales program a little over a year after it started.

The proposed law, Senate Bill 546, aims to curb adult-use dispensaries by enforcing strict restrictions that would not only restrict medical marijuana licenses but also prevent the sale of recreational products, like the Montana Free Press reported.

Senate Act 546

Proposed Senate Bill 546 could bring significant change to Montana’s marijuana market, with its primary focus on dismantling dispensaries for adult use. That’s not all, though — the bill also aims to increase the state tax on medical marijuana by a whopping 400%, while enforcing strict limits on potency and possession levels for medical purposes.

While the sale of non-medical marijuana is prohibited under the law, it does not make adult possession illegal. In addition, the bill would cut the number of mature plants that adults can grow at home by half, from two to just one.

Despite several requests for comment, as of the writing of this article, Regier, the sponsor of SB 546, was unresponsive. However, should the law go into effect, it could have a significant impact on Montana’s cannabis businesses, resulting in a significant reduction in potential consumers and state revenues. The industry has generated over $54 million in tax revenue for the state coffers since adult sales began in January 2022, with less than a tenth of that amount coming from medical marijuana taxes. Currently, recreational customers pay a 20% state tax and some counties have an additional 3% local tax.

Sales data shows that under SB 546, the cannabis industry would have contributed just over $20 million in tax revenue, less than half of what it has generated to date. However, the possible consequences of the draft law go far beyond monetary losses. According to Montana Canna owner Zach Block, a dispensary in Kalispell, the proposed legislation would render the entire cannabis program meaningless to operators, patients and consumers alike and deliver an inferior product to a small group of people while ignoring the needs of the Majority. Block shared these concerns with MTFP.

SB 546 also contains several provisions that limit the effectiveness of marijuana products within the medical program. While the current law prohibits the sale of flowers with more than 35% THC, the draft law would lower that limit to just 10%. In addition, the bill will halve the amount of THC permitted in edibles from 10 milligrams to just 5 milligrams. Concentrated marijuana extracts would also need to contain no more than 10% THC.

SB 546 not only restricts the potency of medical marijuana products, but also the amount of marijuana a medical patient can purchase. While current law allows patients to purchase up to five ounces per month or equivalent in other forms such as edibles and tinctures, the proposed bill would reduce that limit to just one ounce.

Legalization of recreational cannabis in Montana

Montana joined Arizona and New Jersey to approve a ballot measure to legalize recreational cannabis during the November 2020 election cycle. Montana is now among 14 states to have legalized recreational marijuana use, with Republicans controlling the governor’s office and both houses of the legislature. This political configuration places the fate of cannabis legislation in the hands of the GOP.

While the state has made significant strides in building a thriving cannabis industry, currently with more than 130 dispensaries across Montana, the recent introduction of SB 546 has cast a shadow of uncertainty about the industry’s future.

In January 2020, marijuana activists associated with New Approach Montana took a significant step toward legalizing cannabis in Montana by filing Montana I-190. This ballot initiative aimed to legalize the use of recreational marijuana in the state. The initiative gained momentum, and on August 13 the secretary of state confirmed that it had qualified for November’s election, paving the way for voters to speak out on the issue.

On November 3, 2020, Montana residents went to the polls and voted on I-190, eventually passing the ballot measure to legalize recreational cannabis in the state. The passage of I-190 marked a significant victory for Montana’s marijuana advocates, who had pushed for cannabis reform for many years. With the legalization of recreational cannabis, the state opened up new opportunities for cannabis companies and entrepreneurs, and provided adults who choose to have greater access to cannabis products.

Beginning January 1, 2021, persons age 21 and older may possess and use up to 28 grams or one ounce of marijuana. However, use or holding of the substance remains prohibited in public areas and certain designated locations, including states and waters governed by federal law. This applies to both recreational and medicinal use of marijuana.

Montana’s medical marijuana program allows authorized vendors to offer marijuana products to registered cardholders under the program. While cardholders can legally possess up to one ounce, or 28 grams, of marijuana, they can also purchase up to five ounces, or 140 grams, within 30 days. However, it is important to note that distributing the substance to non-cardholders remains illegal.

Diploma

Montana’s road to legalizing recreational marijuana has been a long and winding road. From the filing of the Montana I-190 ballot initiative to the passage of the bill in November 2020, the state has come a long way when it comes to cannabis reform.

The passage of I-190 signaled a major shift in public opinion about marijuana use in Montana. It marked a significant milestone in the ongoing fight for cannabis reform in the United States. While the introduction of SB 546 threatens to stifle the growth of the state’s cannabis industry, the progress made to date cannot be denied. It remains to be seen what the future holds for Montana’s cannabis industry, but one thing is for sure — the state’s residents have spoken.

The momentum toward legalizing recreational marijuana shows no signs of slowing down. As the cannabis reform debate continues to rage across the country, Montana’s journey serves as a shining example of how change can be achieved through the power of the ballot box.

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