Montana’s Adult-Use Cannabis Law Prohibits Licensees from Growing and Selling Hemp

Montana’s adult-use cannabis law prohibits licensees from growing and selling hemp, which means licensed cannabis businesses are also prohibited from producing and selling CBD products, according to the Montana Free Press.

House Bill 701, which implements the state’s voter-approved adult-use cannabis program, also bars licensees from selling other brands’ CBD products, meaning that consumers will likely purchase CBD from gas stations and other non-specialty retailers, the Montana Free Press reported.

RELATED: Montana House Advances Three Republican Bills to Implement Adult-Use Cannabis

The Montana Department of Revenue and some cannabis industry stakeholders were caught off guard by the rule, according to the news outlet.

“Frankly, I feel like we stumbled upon it,” Kristan Barbour, administrator of the Department of Revenue’s Cannabis Control Division, told the Montana Free Press. “It wasn’t on our radar at all.”

The new take effect when adult-use cannabis sales launch on Jan. 1, 2022, the news outlet reported. Montana’s medical cannabis retailers must liquidate their CBD inventory by that date.

“I’ll be candid,” Barbour told the Montana Free Press. “I’ve spoken to folks in the hemp industry. They’re frustrated as well. Montana hemp farmers are growing quality hemp and having it … sold in a medicinal environment. This was a hit and a surprise to them.”

Barbour noted in her statement to the news outlet that cannabis industry stakeholders will have the opportunity to advocate for changes to the during the next legislative session.


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