Recreational cannabis will soon be available after Republican Governor Greg Gianforte signed a legalization implementation bill into law.
House Bill 701 will implement an adult-use cannabis program after Montana residents overwhelmingly voted to legalize cannabis during the 2020 election. H.B. 701 makes several changes to Initiative 90, which was the initial bill voted on in 2020. Some of the changes include pushing back the start date of recreational cannabis sales, capping tetrahydrocannabinol (THC) limits in products and lowering the number of cannabis plants that adults can grow for personal use from four to two. Montana previously faced lawsuits from opponents of legal cannabis to overturn the voters’ decision.
Under H.B. 701, recreational cannabis sales are set to begin in January 2022 for adults ages 21 or over, but only existing cannabis providers will be able to opt into the recreational market for the first 18 months. THC content in cannabis flower will be capped at 35 percent; edibles will be restricted to 100mg per package and all concentrated products at 800mg. Cannabis businesses will be able to operate in the counties where a majority of voters supported the November ballot initiative, but the counties and cities will also be able to opt out through a vote.
Recreational cannabis will be taxed at 20 percent, while medical cannabis will still be taxed at a five percent rate. Local communities will also have the option of imposing an additional three percent as well. The new law also uses tax revenue to help finance the Healing and Ending Addiction through Recovery and Treatment (HEART) Fund, a drug treatment program that diverts state money to local programs and nonprofits that provide substance abuse support and services.
“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,” Gianforte said. “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.”
