Two major proposals for Montana’s marijuana regulations debuted at the state Legislature on Thursday, drawing sharp criticism from the industry and outdoor recreation advocates.
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The bills introduced in the Senate Business, Labor and Economic Affairs Committee represent philosophical shifts from the regulatory framework lawmakers put in place in 2021. That legislation, following Montana’s 57% vote to approve legalization in 2020, set much of the tax revenues on course for conservation, wildlife and state lands.
Senate Bill 307, sponsored by Senate Majority Leader Tom McGillvray, R-Billings, puts that money toward law enforcement, substance abuse prevention and mental health treatment.
McGillvray told the committee it is “smart tax policy” to tie the tax revenues back to what he believes is a need caused by the proliferation of the state’s marijuana market.
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“The gas tax is a perfect example,” he said. “The revenue from that tax goes to infrastructure and highways. There’s a connection to the tax and the use of the tax.”
If those marijuana tax revenues are going toward state trails and other conservation projects, “Who pays for the harms?” McGillvray asked.
It’s a debate that, in many ways, defined the conclusion of the 2023 Legislature. Lawmakers considered several proposals, such as expanding conservation funding, shifting it toward law enforcement services or simply dumping the entire revenue stream into the general fund, where those dollars would be allocated each session depending on the state’s needs at the time.
Ultimately, all three proposals failed to take hold, and the formula from 2021 remains in place.
State fiscal analysts forecast the industry will haul in about $63 million in the next fiscal year. Recreational marijuana sales are taxed at 20%, while medical products are sold with a 4% tax. Cities and counties, meanwhile, have the option of imposing additional taxes locally.
Tom Jacobson, a former Democratic lawmaker now lobbying for the Montana Wildlife Federation, urged the committee to reject the bill.
“It pits public safety, policing, prevention against habitat and public access,” he said.
Outdoor maintenance and public access take up 32% of the marijuana tax revenues; Jacobson said the bill should consider taking a bite out of the other 68%.
But supporters of SB 307’s concepts were vigorous Thursday in asserting that the Legislature has not taken the health concerns around marijuana use seriously enough.
The committee also heard Senate Bill 443, from Republican Sen. Greg Hertz of Polson, which would cap the potency of tetrahydrocannabinol (THC) in any marijuana-derived product at 15%. Marijuana flower is currently limited at 35% THC, while concentrates do not have a percentage cap. THC is the intoxicating chemical in marijuana and marijuana products.
Hertz told the committee on Thursday that marijuana these days “isn’t your grandma’s pot.”
“To me, that’s going to be our next big problem here in the United States that we’re going to have to face,” he said. “I compare it to ‘Big Tobacco’ years ago, when they said — ‘It’s not going to cause cancer; everything’s fine.'”
Steve Zabawa, a dealer of automobiles and Montana’s apex anti-weed advocate through Safe Montana, said lowering the THC rate would prevent hospitalizations and DUIs. People also trying marijuana for the first time would be less likely to become addicted, he said.
“We have the right to be healthy and happy in the state of Montana,” he told the committee. “I’d love for you guys to protect our humans here in the state of Montana. Lower this thing down to 15% so if they do decide to try it, God bless them, it’s legal, but they’re starting at 15%, not 90%.”
Industry groups argued the bill would “fortify the black market” by sending people away from dispensaries when only low-grade marijuana is on the shelf. Dropping the THC level to 15% would eliminate 90% of the product providers sell, said one dispensary employee.
J.D. “Pepper” Petersen, CEO of the Montana Cannabis Guild and owner of the Cannabis Corner in Helena, said Hertz’s argument was no different than the fears that animated the 1936 film “Reefer Madness.”
“The trope that marijuana will drive you crazy and make you insane is one that has been used since the beginning by prohibitionists,” Petersen said. “It’s an argument that’s been used by every generation when marijuana has been spoken of.”
Petersen said marijuana users would simply drive to Washington, another state with legalized marijuana, as people did before it was legalized here.
“This bill could have been written by the Spokane Chamber of Commerce,” he said.
The committee did not take a vote on either bill on Thursday.
Seaborn Larson has worked for the Montana State News Bureau since 2020. His past work includes local crime and courts reporting at the Missoulian and Great Falls Tribune, and daily news reporting at the Daily Inter Lake in Kalispell.
“}]] The bills introduced in the Senate Business, Labor and Economic Affairs Committee on Thursday represent philosophical shifts from the regulatory framework lawmakers put in place in 2021. Read More
