Cannabis Business in Montana

Montana’s cannabis industry has seen significant growth, driven by both medical and adult-use sales. In 2023, the state generated over $319 million in cannabis sales, with $258 million coming from adult-use and $61 million from medical marijuana. The Cannabis Control Division (CCD) oversees this expanding market, ensuring compliance and regulating the businesses involved in cultivation, manufacturing, and sales.

As of January 1, 2022, Montana permitted medical marijuana license holders in "green" counties to transition to serving adult-use consumers. These "green" counties, where the majority of voters supported Initiative 190 in November 2020, allow adult-use sales. In contrast, "red" counties, where voters opposed the initiative, prohibit adult-use marijuana sales. The state’s hybrid system allows counties to adopt regulations tailored to their local communities.

Cannabis Business Licenses in MT

Montana’s cannabis market offers a range of plant-touching licenses for businesses that handle cannabis production and sales. The CCD issues these licenses, along with worker permits required for employees in the industry. The licenses available include:

• Cultivator Licenses – Permitting the growth of cannabis for both medical and adult-use markets, with 13 different canopy licenses available based on facility size.
• Manufacturer Licenses – Allowing the production of cannabis products, including concentrates, edibles, and oils.
• Dispensary Licenses – Enabling businesses to sell cannabis directly to consumers.
• Transporter Licenses – Authorizing the transportation of cannabis products between facilities.
• Testing Lab Licenses – Required for labs that ensure the safety and potency of cannabis products through rigorous testing.
• Combined-Use Licenses – Allowing businesses to engage in multiple activities within the cannabis supply chain, such as cultivation and sales.

Industrial Hemp in MT

Those interested in entering the cannabis business in Montana need to be aware of a few things. While industrial hemp is legal to cultivate across the country, states have their own regulations regarding its cultivation and sales. The Montana Department of Agriculture oversees and enforces the state's hemp program. Those who wish to cultivate industrial hemp must register with the program to be in compliance with the Agriculture Improvement Act of 2018, also known as the Farm Bill Act of 2018.

CBD in Montana

CBD is a compound found in both hemp and marijuana. While the chemical formula is the same for CBD and THC, the arrangement of their atoms causes different chemical properties. This difference is why CBD is non-intoxicating, unlike THC.

The sale of hemp-derived CBD became legal in Montana with the passage of the 2018 Farm Bill. Despite its legality, CBD is prohibited in food, dietary supplements, and beverages in Montana. The Montana Department of Public Health and Human Services has stated that CBD extracts are not allowed in these products because they are already federally regulated as a prescription drug and controlled substance. If CBD extracts were to be legalized in Montana as edible products, it is thought that they would best be administered under the state’s existing medical marijuana program.

Industrial hemp seeds and oil may be used in food and dietary supplements, but only if the product is marketed without any health or health-related claims. The products must also be used in specific food categories, including:

• Baked goods
• Beverages, such as dairy alternative products, juices, protein drinks, and smoothies
• Cereals
• Desserts
• Dips
• Dressings
• Meat alternative products
• Nutrition bars
• Sauces
• Snacks
• Spreads
• Soups

If health claims are made for hemp seed or hemp seed oil, the product will be regulated as an unapproved drug, rather than food.

The following hemp-related ingredients are not allowed in food in Montana:

• Any and all CBD products derived from cannabis plants
• Any and all CBD products, including CBD oil, derived from industrial hemp
• Hemp oil that is not derived from industrial hemp seeds
• Industrial hemp seed oil with added CBD or other cannabinoids