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Montana recreational cannabis sales top $43 million in first quarter of 2022

by Travis C | Apr 11, 2022 | Blog, Business, Cannabis Business, Cannabis News, Culture, Industry News, Legalization

Montana recreational cannabis dispensary sales

In its first three months of operation, Montana recreational cannabis sales have surpassed $43 million, resulting in nearly $9 million in tax revenue for the state.

According to the state’s Department of Revenue, Montana recreational cannabis produced $43,537,110 in sales, compared to medical cannabis which generated $29,373,731 in sales during the same period.

Voters approved a ballot initiative to legalize Montana recreational cannabis in 2020, the same year three other states — Arizona, South Dakota and New Jersey — passed similar measures. However state officials wouldn’t approve regulations for a legal cannabis marketplace until October 2021.

This late action created a short deadline for the state’s Department of Revenue Cannabis Control Division to build out the framework for legal sales in Montana.

“The deadlines are aggressive,” Kristan Barbour, administrator of the Department of Revenue’s Cannabis Control Division, said at the time. “Really, the rules are our biggest challenge.”

“Our focus was really to be business-friendly and to try to work with the industry in a fashion that makes the rules adaptable to their current business structure and that they’ll be able to evolve into without a whole lot of pain,” Barbour added.

However despite the delays and tight deadlines, the Montana recreational cannabis market opened right on time, New Years Day 2022. On January 1 an estimated 380 dispensaries opened their doors in 29 counties across the state.

The state brought in an estimated $1.5 millions in adult-use sales in the opening weekend, a number that would snowball over the next couple months. While money isn’t the only reason a state like Montana would legalize cannabis, it is at the top of the list.

According to the Marijuana Policy Project, states have generated over $11 billion in tax revenue through legal cannabis. On average, a state with adult-use cannabis sales generated more than $3.7 billion in total revenue in 2021.

However another growing reason for multiple states legalizing cannabis is the failing War on Drugs. In 2018, 40% (yes, 40%) of all drug arrests in the US were for cannabis, typically possession. Think about the resources and dollars that go into arresting, processing, and housing all of these mostly non-violent offenders.

In March the Montana Supreme Court issued temporary rules for procedures that would allow those with past cannabis-related convictions to have them expunged. The state’s new cannabis law says “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 local television station KPAX.

Just for comparison, Oklahoma, an equally red state with just a medical cannabis program that launched in 2019 brought in nearly $500 million in its first year of sales. Then the state nearly doubled that number in 2020.

Comparatively Montana recreational cannabis sales seem pretty miniscule. However it has only been three months. Should the trend continue, the state could easily see over $200 million in sales its first year.

Montana Marijuana Legalization Bill Passes in Senate

by The Real Dirt | Apr 26, 2021 | 420 Culture & Travel, 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Politics

Montana marijuana legalization implementation passes through the senate

Tax revenue from marijuana sales is estimated to be more than $48 million annually by 2025

HELENA – The Montana Senate on Friday passed a bill to implement a recreational marijuana program in the state, which would reserve tax revenue from sales for addiction treatment and statewide conservation efforts.

Voters approved a ballot measure last year to legalize recreational marijuana sales. The ballot measure also sought to divert a significant portion of tax revenue toward conservation efforts.

The bill passed out of the House earlier this month along party lines, with House Democrats united in their opposition to the measure, which did not follow the voter-approved revenue plan. But a Senate committee amended the bill to track more closely to what is included in the ballot measure, earning the support of most Senate Democrats.

The bill passed the Senate with a 34-16 vote. It next heads back to the House, which will vote on the Senate amendments.

As outlined in the bill, recreational marijuana sales would be taxed at a rate of 20%. Of the state revenue generated by sales, $6 million annually would go towards a drug addiction treatment program backed by Gov. Greg Gianforte; 20% would go toward conservation efforts; 4% or up to $650,000 each would go to state parks, trails and recreational facilities, and wildlife protection; up to $200,000 would go to veterans services and improving veterans’ cemeteries; $300,000 would go toward a one-time purchase of drug detection canines; $150,000 would fund a one-time police training; and the remaining money would enter the state’s general fund.

Tax revenue from marijuana sales is estimated to be more than $48 million annually by 2025.

The original ballot measure directed 10.5% of revenue towards the state general fund, with the rest for conservation programs, substance abuse treatment, veterans’ services, health care costs and localities where marijuana is sold.

Under the plan, in counties that voted in favor of the ballot measure, recreational marijuana sales would be automatically legalized. But in counties where the ballot measure did not pass, voters would have to separately approve recreational marijuana sales to opt-in to the program.

The plan also includes a provision under which those serving sentences for illegal marijuana possession in the state could apply for their convictions to be expunged.

The state’s eight federally-recognized Native American tribes would receive sales licenses, which could be used within 150 miles (241 kilometers) of a reservation. Because recreational marijuana remains illegal at the federal level, sales remain prohibited on reservations, which are governed by federal law. Native American lawmakers advocated for the provision in the bill, saying it would allow them to benefit financially from legalization.

“It’s going to allow them to get into the game finally,” said Sen. Jason Small, a Republican and a member of the Northern Cheyenne Nation who carried the bill on the Senate floor.

The measure includes a clause that would nullify the law if the ballot measure is found to be illegal. Several Republican lawmakers have said they object to legalization and have floated the possibility of challenging the ballot measure in court.

“Whether or not deep down inside you want to see this marijuana industry happen in Montana, the fact of the matter is it’s been voted on, it’s going to happen,” Small said.

Original Story from Flat Head Beacon

Montana Recreational Cannabis Officially Legal

by The Real Dirt | Jan 5, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance

Montana legal cannabis became official on New Years day 2021

Once the clock struck midnight and 2021 began, marijuana became legal for recreational use in the state of Montana – but this new law does not come without some caveats.

“I imagine people… we’ll probably have some amount of people coming to all the stores ready to buy. But you know, we can’t do that,” said Joshua Gosney, the owner of Infinity Wellness.

While marijuana is now legal for recreational use, only two things have immediately taken effect. “Any individual will be allowed to grow a certain number of plants in their house and have a certain amount of product on them at all times,” Gosney said.

So you can grow it and possess it — but a lot goes into growing the cannabis plant.

“In Montana, you’re going to be primarily in an indoor situation, especially in the wintertime, so you’re going to need things like supplemental high-intensity lighting or LEDs, some type of watering apparatus. It’s some work,” explained Ryan Saghatelian, one of the owners of Greener Pastures.

It could be a while, though, before you can legally buy marijuana in Montana.

“Probably not going to be until 2022 when the licensing goes into play, so we’re kind of in a weird area right now where it’s legal to possess, but it’s not legal to purchase, so there’s a lot of uncertainty,” Saghatelian said.

And with new laws comes new responsibilities: “There will be limitations to what people can do. It’ll be up to the Legislature to make sure that they effectively regulate that in order to maximize tax revenue and public safety and public benefit without risking the public’s health,” Gosney said.

Smoking marijuana in public is not allowed, and Montana statute says no one can drive under the influence of any substance, according to Lt. Brandon Wooley with the Billings Police Department. He also noted: “We still will be involved in, let’s say, if you got four or five pounds on you and you’ve got evidence of trafficking and distribution. We’re still going to seize everything and we’re still going to forward through for the County Attorney’s office for prosecution.”

Supporters say legalizing recreational marijuana will generate much-needed tax revenue. A study by the University of Montana’s Bureau of Business & Economic Research estimated recreational marijuana could generate more than $43 million a year for the state.

However, some law enforcement, medical, and professional groups oppose the measures. They argue legalized marijuana will add to the state’s growing drug addiction problems, create safety concerns in the workplace, the risk of unintentional exposure to children, and increased marijuana use in adolescents.

Read Full Story from 3KRTV

The States Voting on Legal Cannabis in 2020

by Travis C | Oct 16, 2020 | 420, 420 News, Blog, Cannabis Law, Culture

Updated on 11/5/20 to include results.

states voting on legal cannabis on November third

Every year there’s more states voting on legal cannabis. 2020 is no exception.

It’s become a regular trend. Each year, several states add an initiative to their ballot to vote for the legalization of cannabis. 33 states have legalized medical cannabis, and 11 of those states have legalized marijuana for recreational use.

It doesn’t mean that all of the initiatives are what we would ideally like, and there’s a couple states who have suffered from bad legislation.

For example, even though Vermont and Main legalized cannabis in 2018, neither had an actual regulated marketplace for legal cannabis until 2020. In other words even though cannabis was legal, there was nowhere to buy it, and selling it was still illegal.

But states voting on legal cannabis with some issues in the legislation is better than states not voting on legal cannabis at all. With that said, here’s the states voting on legal cannabis on November 3rd.

Mississippi

There are two measures on the ballot in Mississippi that aim to legalize cannabis for medical purposes.

Initiative 65 would make medical marijuana available for people with very specific qualifying conditions, according to WJTV. Patients could possess up to 2.5 ounces of medical marijuana at one time. The initiative also sets a state tax rate. This initiative basically fully legalizes medical and recreational cannabis in the state.

Initiative 65A does not specify qualifying conditions or possession limits. Regulations would need to be set by state lawmakers. This initiative is the more restrictive option, only specifying the use of medical marijuana for chronic illnesses and terminally ill patients.

RESULT: PASSED

Arizona

Proposition 207 would legalize the possession and use of marijuana for adults who are 21 or older. People would be permitted to grow six marijuana plants at their home as long as the plants aren’t in public view. The Arizona Department of Health Services would be responsible for regulating marijuana facilities and stores.

Four years ago, voters narrowly rejected a measure to legalize recreational marijuana. It is looking like this year’s vote will have more support and is likely to pass.

RESULT: PASSED

Montana

Montana definitely isn’t a state that comes to mind when people think of states voting on legal cannabis, but Montana actually has two different initiatives on the ballot.

CI-118 or “Allow for a Legal Age for Marijuana Amendment” would make 21 the legal age to purchase cannabis for recreational use. In other words it would amend the Montana Constitution to authorize the state to set 21 years of age as the minimum legal age for marijuana consumption.

I-190 would be the actual regulated industry proposal that CI-118 would allow for. According to Ballotpedia, the measure would legalize the possession and use of one ounce or less or 8 grams or less of marijuana concentrate by people at least 21.

It also puts a 20% tax on legalized marijuana that would flow into the state’s general fund. But that’s not all. In fact, I-90 is actually quite comprehensive. In addition to the above, I-90 would also:

Direct the Montana Department of Revenue to license and regulate the cultivation, transportation, and sale of marijuana and marijuana-infused products and to inspect premises where marijuana is cultivated and sold.
Require licensed laboratories to test marijuana and marijuana-infused products for potency and contaminants.
Allocate 10.5% of the tax revenue to the state’s general fund, with the remainder dedicated to accounts for conservation programs, substance abuse treatment, veterans’ services, healthcare programs, and local governments where marijuana is sold.
Allow an individual currently serving a sentence for a prior low-level marijuana offense to apply for resentencing or an expungement of the conviction.
Prohibit advertising of marijuana and related products.
Strictly regulate the packaging and labeling of marijuana products to prevent accidental ingestion and access by children.
Require that marijuana provider licenses only be issued to Montana residents.
Permit localities to regulate, ban, or restrict marijuana businesses within their jurisdiction.

RESULT: PASSED

New Jersey

Question No. 1 on the ballot would make pot legal for adults 21 and older. Medical marijuana is already legal in New Jersey, and the group that oversees the regulation of medicinal cannabis would also regulate recreational pot.

The constitutional amendment would take effect on January 1 and would make New Jersey the first state in the Mid-Atlantic to legalize marijuana.

Because of the economic impact expected to be brought in by residents of neighboring states, it’s believed passage in New Jersey could put pressure on other states in the region to pass similar measures. Unfortunately, Question No. 1 is very short and vague, which likely implies while cannabis could be legal on January 1, 2021, it might be some time before a regulated industry is operating in the state.

RESULT: PASSED

South Dakota

The state will be voting on both medicinal and recreational marijuana during the general election.

Amendment A would legalize recreational cannabis for anyone 21 or older. The measure would also require state lawmakers to pass laws that create a medical marijuana program by early 2022.

Measure 26 would only allow for the sale of medical marijuana to people with “debilitating medical conditions.” Patients cleared for the program could possess up to 3 ounces of marijuana and grow plants in their homes.

While strict, South Dakota is one of the most conservative states when it comes to cannabis, being one of the only in the nation to still not have passed any legislation regarding cannabis. For these same reasons many are unhopeful that Measure 26 or Amendment A will pass.

RESULT: PASSED