Montana Considers Two-Year Freeze on New Cannabis Licenses

28 June 2024

Montana lawmakers are evaluating a proposal to introduce a two-year moratorium on new cannabis-related business licenses, a move designed to address concerns over market saturation in the cannabis industry and strengthen local government control. If approved, the freeze would be in effect from July 2025 through June 2027, applying to dispensaries, growers, kitchens, and storage facilities. This policy shift would replace the current regulation that limits licenses to former medical marijuana providers.

The proposed measure, discussed during a recent meeting of the state’s Economic Affairs Interim Committee, seeks to balance industry growth with community concerns while giving local governments more authority over zoning and licensing regulations. Additionally, the moratorium would allow the transfer or sale of existing licenses to new owners outside the legacy system, potentially reshaping Montana’s cannabis business landscape.

Cities and counties are already considering their own restrictions, with public hearings scheduled in some areas to discuss temporary pauses on new dispensary licenses. These local actions highlight a broader trend of municipal-level cannabis regulation that could influence statewide policies. Proponents of the moratorium argue it would prevent over-saturation of the market and create stability for existing cannabis businesses, enabling them to optimize operations and improve compliance with state laws.

Lawmakers are also reviewing related initiatives, including technical amendments to current cannabis laws and a resolution supporting the federal SAFER Banking Act, which aims to provide cannabis businesses with secure and legitimate banking options. By incorporating banking solutions, the industry could reduce reliance on cash transactions and improve financial transparency, a goal supported by both regulators and business owners.

While the proposed freeze has generated support for its potential to stabilize the market, critics caution it could stifle innovation, limit economic opportunities in the cannabis sector, and deter new entrepreneurs from entering the industry.