Bill Summary – FastDemocracy

67th Legislature                                                                                                   HB 249.1
                                                    HOUSE BILL NO. 249
    INTRODUCED BY M. REGIER, D. FERN, W. GALT, S. GIST, S. GUNDERSON, D. HARVEY, J. KEANE, B.
    LER, D. LOGE, M. NOLAND, V. RICCI, K. SEEKINS-CROWE, K. SULLIVAN, D. ANKNEY, M. BLASDEL, B.
               BROWN, J. ELLSWORTH, S. FITZPATRICK, T. GAUTHIER, D. KARY, W. SALES, J. SMALL
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   A BILL FOR AN ACT ENTITLED: “AN ACT ALLOWING FOR LIMITED ELECTRONIC ADVERTISING OF
   MARIJUANA AND MEDICAL MARIJUANA; PROVIDING RESTRICTIONS ON THE CONTENT OF
   ADVERTISING; PROVIDING RULEMAKING AUTHORITY; AND AMENDING SECTIONS 16-12-112, 16-12-
   211, 50-46-341, AND 50-46-344, MCA.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 16-12-112, MCA, is amended to read:
              "16-12-112. (Effective October 1, 2021) Rulemaking authority -- fees. (1) The department may
   adopt rules to implement and administer this chapter, including:
              (a)   the manner in which the department will consider applications for licenses and endorsements and
   renewal of licenses and endorsements;
              (b)   the acceptable forms of proof of Montana residency;
              (c)   the procedures for obtaining fingerprints for the fingerprint-based and name-based background
   checks required under 16-12-203;
              (d)   the security and operating requirements for adult-use dispensaries;
              (e)   the security and operating requirements for manufacturing, including but not limited to
   requirements for:
              (i)   safety equipment;
              (ii) extraction methods, including solvent-based and solvent-free extraction; and
              (iii) post-processing procedures;
              (f)   notice and contested case hearing procedures for fines or license and endorsement revocations,
   suspensions, or modifications;
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67th Legislature                                                                                                     HB 249.1
              (g)   implementation of a system to allow the tracking of marijuana and marijuana-infused products as
   required by 16-12-105;
              (h)   labeling standards that protect public health by requiring the listing of pharmacologically active
   ingredients, including, but not limited to, tetrahydrocannabinol (THC), cannabidiol (CBD) and other cannabinoid
   content, the THC and other cannabinoid amount in milligrams per serving, the number of servings per package,
   and quantity limits per sale to comply with the allowable possession amount;
              (i)   requirements that packaging and labels may not be made to be attractive to children, that they
   have required warning labels, and that marijuana and marijuana-infused products be sold in resealable, child-
   resistant packaging to protect public health as provided in 16-12-208;
              (j)   requirements and standards for the testing and retesting of marijuana and marijuana-infused
   products, including testing of samples collected during the department's inspections of registered premises;
              (k)   the amount of variance allowable in the results of raw testing data that would warrant a
   departmental investigation of inconsistent results as provided in 16-12-202;
              (l)   requirements and standards to prohibit or limit marijuana, marijuana-infused products, and
   marijuana accessories that are unsafe or contaminated;
              (m)    the activities that constitute advertising in violation of 16-12-211 and requirements and standards
   for electronic advertising as permitted under 16-12-211;
              (n)   requirements and incentives to promote renewable energy, reduce water usage, and reduce
   packaging waste to maintain a clean and healthy environment in Montana; and
              (o)   the fees for endorsements for manufacturing, testing laboratories, additional canopy licensure tiers
   created in accordance with 16-12-105, and the fingerprint-based and name-based background checks required
   under 16-12-203. The fees and other revenue collected through the taxes paid under 16-12-401, civil penalties
   imposed pursuant to this chapter, and the licensing fees established by rule and in 16-12-201 must be sufficient
   to offset the expenses of administering this chapter but may not exceed the amount necessary to cover the
   costs to the department of implementing and enforcing this chapter.
              (2)   The department may not adopt any rule or regulation that is unduly burdensome or undermines
   the purposes of this chapter.
              (3)   The department may consult or contract with other public agencies in carrying out its duties under
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67th Legislature                                                                                                       HB 249.1
   this chapter."
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              Section 2. Section 16-12-211, MCA, is amended to read:
              "16-12-211. (Effective October 1, 2021) Advertising prohibited Limitations on advertising --
   rulemaking. (1) Persons Except as provided in subsection (3), persons with licenses may not advertise
   marijuana or marijuana-related products in any medium, including electronic media.
              (2)   A listing in a directory of businesses authorized under this chapter is not advertising for the
   purposes of this section.
              (3)   A licensee may have a website but may not:
              (a)   include prices on the website; or
              (b)   actively solicit consumers or out-of-state consumers through the website
              (3)   A licensee may engage in electronic advertising such as maintaining a website and advertising on
   web applications, provided that no electronic advertisement produced by the licensee contains a statement or
   illustration that:
              (a)   is false or misleading;
              (b)   promotes overconsumption of marijuana or marijuana-related products;
              (c)   depicts the actual consumption of marijuana or marijuana-related products;
              (d)   depicts a person under 21 years of age consuming marijuana;
              (e)   makes any health, therapeutic, or medicinal claims about marijuana or marijuana-related products;
   or
              (f)   is designed in a way that is likely to appeal to minors and includes cartoons, animals, children, or
   any other likeness to images, characters, or phrases that are designed in any manner to be appealing or to
   encourage consumption of marijuana by persons under 21 years of age.
              (4)   The department shall adopt rules to clearly identify the activities that constitute advertising that are
   prohibited under this section."
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              Section 3. Section 50-46-341, MCA, is amended to read:
              "50-46-341. Advertising prohibitedLimitations on advertising -- rulemaking. (1) Persons Except
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67th Legislature                                                                                                      HB 249.1
   as provided in subsection (3), persons with licenses and individuals with valid registry identification cards may
   not advertise marijuana or marijuana-related products in any medium, including electronic media.
              (2)   A listing in a directory of businesses authorized under this part is not advertising for the purposes
   of this section.
              (3)   A licensee may have a website but may not:
              (a)   include prices on the website; or
              (b)   actively solicit customers or out-of-state consumers through the website
              (3)   A licensee may engage in electronic advertising such as maintaining a website and advertising on
   web applications, provided that no electronic advertisement produced by the licensee contains a statement or
   illustration that:
              (a)   is false or misleading;
              (b)   promotes overconsumption of marijuana or marijuana-related products;
              (c)   depicts the actual consumption of marijuana or marijuana-related products;
              (d)   depicts a person under 21 years of age consuming marijuana;
              (e)   makes any health, therapeutic, or medicinal claims about marijuana or marijuana-related products;
   or
              (f)   is designed in a way that is likely to appeal to minors and includes cartoons, animals, children, or
   any other likeness to images, characters, or phrases that are designed in any manner to be appealing or to
   encourage consumption of marijuana by persons under 21 years of age.
              (4)   The department shall adopt rules to clearly identify the activities that constitute advertising and are
   prohibited under this section."
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              Section 4. Section 50-46-344, MCA, is amended to read:
              "50-46-344. Rulemaking authority -- fees. (1) The department may adopt rules only as authorized in
   this section to specify:
              (a)   the manner in which the department will consider applications for licenses and endorsements and
   applications for registry identification cards for individuals with debilitating medical conditions and renewal of
   licenses, endorsements, and registry identification cards;
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67th Legislature                                                                                                    HB 249.1
              (b)   the acceptable forms of proof of Montana residency;
              (c)   the procedures for obtaining fingerprints for the fingerprint and background check required under
   50-46-307 and 50-46-308;
              (d)   the security and operating requirements for dispensaries;
              (e)   the security and operating requirements for chemical manufacturing, including but not limited to
   requirements for:
              (i)   safety equipment;
              (ii) extraction methods, including solvent-based and solvent-free extraction; and
              (iii) postprocessing procedures;
              (f)   notice and contested case hearing procedures for fines or license and endorsement revocations,
   suspensions, or modifications;
              (g)   the amount of usable marijuana that a registered cardholder who has elected not to use the
   system of licensed providers and marijuana-infused products providers may possess;
              (h)   implementation of a system to allow the tracking of marijuana and marijuana-infused products as
   required by 50-46-304;
              (i)   requirements and standards for the testing and retesting of marijuana and marijuana-infused
   products, including testing of samples collected during the department's inspections of registered premises;
              (j)   the amount of variance allowable in the results of raw testing data that would warrant a
   departmental investigation of inconsistent results as provided in 50-46-304(7);
              (k)   the activities that constitute advertising in violation of 50-46-341 and requirements and standards
   for electronic advertising as permitted under 50-46-341; and
              (l)   the fees for cardholders, endorsements for chemical manufacturing, testing laboratories, additional
   canopy licensure tiers created in accordance with 50-46-305, and the fingerprint and background checks
   required under 50-46-308 and 50-46-311. The fees and other revenues collected through the taxes paid under
   15-64-102, civil penalties imposed pursuant to this part, and the licensing fees established by rule and in 50-46-
   347 must be sufficient to offset the expenses of administering this part. The annual cardholder license fee may
   not be less than $20.
              (2)   In establishing the canopy for a provider or marijuana-infused products provider, the department
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67th Legislature                                                                                                     HB 249.1
   shall take into consideration:
              (a)   safety and security issues;
              (b)   the need to avoid overproduction of marijuana and marijuana-infused products;
              (c)   the provision of adequate access to usable marijuana to accommodate the needs of registered
   cardholders; and
              (d)   economies of scale and their effect on the ability of licensees to comply with regulatory
   requirements and undercut illegal market prices.
              (3)   The administrative rules promulgated under this part for testing laboratories must be developed
   and proposed by the state laboratory."
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Statutes affected: 
HB0249_1.pdf: 16-12-112, 16-12-211, 50-46-341, 50-46-344
HB0249_2.pdf: 16-12-112, 16-12-211, 50-46-341, 50-46-344
HB0249_X.pdf: 16-12-112, 16-12-211, 50-46-341, 50-46-344
Amended: 16-12-112, 16-12-211, 50-46-341, 50-46-344
Introduced: 16-12-112, 16-12-211, 50-46-341, 50-46-344