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42.39.101   PURPOSE

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-301, 50-46-303, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from 37.107.102, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1147, Eff. 9/11/21.

42.39.102   DEFINITIONS

The following definitions apply to this chapter:

(1) "Act" means the Marijuana Regulation and Taxation Act, codified at 16-12-101, MCA, et. seq.

(2) "Authorized employee" means:

(a) an employee of the department who has received written authorization from the department director or the director's designee to obtain individual names and other identifying information from the marijuana registry;

(b) an employee of a state or local law enforcement agency who is authorized to obtain marijuana registry information through the Montana Criminal Justice Information Network (CJIN)/marijuana registry interface; or

(c) an employee of a state or local government agency, including a state or local law enforcement agency, who has received authorization to obtain marijuana registry information.

(3) "Batch" means:

(a) a quantity of usable marijuana from a harvest lot; or

(b) a quantity of cannabinoid concentrate or extract or cannabinoid product from a process lot.

(4) "CBD" means cannabidiol.

(5) "CBDA" means cannabidiolic acid.

(6) "Certificate of analysis" means the report prepared by a marijuana testing laboratory about the analytical testing performed and the results obtained by the laboratory.

(7) "Chemical manufacturing" means the use of chemical compounds such as, but not limited to, hydrocarbon solvents or food grade nonhydrocarbon solvents to separate cannabinoids or marijuana analytes of interest from marijuana.

(8) "Child resistant" means packaging designed or constructed to be significantly difficult for children under five years of age to open and not difficult for adults to use properly. The standard for child-resistant packaging is set by the federal consumer product safety commission (CPSC) and the testing procedures found in 16 CFR 1700.20 (2012).

(9) "Compliance audit" means a department review of aspects of a licensee's business without conducting a physical on-site inspection, including but not limited to website compliance checks, review of seed-to-sale tracking system records, permit compliance checks, and local ordinance compliance checks.

(10) "Cultivate" means to grow, propagate, clone, or harvest marijuana for use by registered cardholders or consumers.

(11) "Customer" means, collectively, adult use consumers and registered cardholders.

(12) "Edible marijuana-infused product" or "edible" means an ingestible marijuana-infused product that is intended to be taken by mouth, swallowed, and primarily absorbed through the gastrointestinal tract. Edible marijuana-infused products may be psychoactive when used as intended. Without limitation, edible marijuana-infused products may be in the form of a food, beverage, capsule, or tablet.

(13) "Employee" as defined in 16-12-102, MCA, includes an independent contractor that performs work for any aspect of a marijuana business.

(14) "Existing outdoor cultivation space" means outdoor space used to grow live marijuana plants in an area exposed to natural sunlight and environmental conditions including variable temperature, precipitation, and wind, licensed on or before November 3, 2020.

(15) "Exit package" means a sealed container or package provided at the retail point of sale, in which any marijuana item already within a container is placed.

(16) "Fee" means the mandatory fees required by the department.

(17) "Fingerprint card" means an FD-258 fingerprint card utilized to facilitate a Federal Bureau of Investigation (FBI) fingerprint and background check.

(18) "Food-Grade" means the processing and packaging has been done with clean equipment and can be safely eaten.

(19) "Green county" means a county where the majority of voters voted to approve Initiative Measure No. 190 in the November 3, 2020 general election or where the local government approval provisions of 16-12-301, MCA, have been satisfied. This definition does not include a municipality that has approved or disapproved a category or categories of marijuana businesses, as authorized in 16-12-301, MCA.

(20) "Ingestible marijuana-infused product" or "ingestible" means a product that contains marijuana and at least one other ingredient, is intended for consumption or use other than by smoking or vaporizing, is intended to be taken into the body, and is either categorized as an edible marijuana-infused product or a transmucosal marijuana-infused product.

(21) "Ingredient" means any substance that is added to marijuana items that changes its final form including but not limited to flavorings, aromatic oils, colorants, food items, spices, sweeteners, and preservatives.

(22) "Label" or "labeling" means the written, printed, or graphic matter displayed on the packaging in which marijuana or a marijuana product is dispensed or displayed to a customer.

(23) "Licensee" means any person licensed by the department.

(24) "Limited access area" means a building, room, or other contiguous area upon the licensed premises where marijuana is grown, cultivated, stored, weighed, packaged, sold, or processed for sale, under the control of the licensee.

(25) "Major food allergen" or "allergen" means milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, and soybeans and any ingredient containing a protein derived from these foods.

(26) "Manufacture" means the act of preparing and processing usable marijuana into a marijuana-infused product. A marijuana-infused product must be labeled as to indicate that it contains marijuana.

(27) "Marijuana" means the same as the definition in 16-12-102, MCA, and includes the biomass of the marijuana plant which contains greater than 0.3% THC concentration and appreciable concentrations of other cannabinoids of interest including flower, bud, shake, trim, and manicure.

(28) "Marijuana concentrate and extract" or "concentrate and extract" means the same as the definition in 16-12-102, MCA, and includes a substance obtained by separating and/or concentrating naturally occurring chemical constituents of marijuana, such as, but not limited to, cannabinoids, from marijuana plant material by mechanical, physical, chemical, or other processes that may:

(a) contain solvents in allowable amounts and ingredients used to promote a desired physical state, texture, or flavor in the marijuana concentrate, but no other ingredients; or

(b) be intended for use in the production of marijuana-infused products; or

(c) be a finished product intended for consumption or use.

(29) "Marijuana-infused product" means the same as the definition in 16-12-102, MCA, and includes the infusion of cannabinoids of interest using marijuana or marijuana concentrate or extract into existing products, substances, or consumer goods, and as an ingredient in the production of consumer goods that would not naturally or ordinarily contain cannabinoids of interest.

(30) "Marijuana items" means:

(a) marijuana;

(b) usable marijuana;

(c) dried leaves and flowers of the marijuana plant;

(d) marijuana derivatives, concentrates, extracts, resins, infused products, edible products, ointments, tinctures, suppositories, topicals; and

(e) other marijuana-related products.

(31) "Marijuana laws" for the purposes of these rules, means any combination of regulatory authority pursuant to the Montana Marijuana Regulation and Taxation Act (Title 16, chapter 12, MCA), rules of the department, rules of the Department of Public Health and Human Services regarding marijuana testing laboratories, or local ordinances applicable to marijuana businesses.

(32) "Marijuana product category" means a defined group of marijuana products that are in the same form. Marijuana product categories are:

(a) marijuana flower;

(b) marijuana concentrates; and

(c) marijuana-infused products, including the following subcategories:

(i) ingestible marijuana-infused products, including the following subcategories:

(A) edible; and

(B) transmucosal;

(ii) non-ingestible marijuana-infused products, including the following subcategories:

(A) topical; and

(B) transdermal.

(33) "Mechanical manufacturing" means the use of mechanical methods to produce or refine marijuana concentrates and extracts, such as but not limited to a press, centrifuge, or evaporation.

(34) "Monthly" means, for purposes of determining a registered cardholder's maximum monthly amount of usable marijuana, a period of 30 consecutive days.

(35) "Motor vehicle," for purposes of these rules, means a vehicle propelled by its own power and designed or used to transport persons or property on the highways of the state with an interior passenger compartment.

(36) "Non-ingestible marijuana-infused product" or "non-ingestible" means a product that contains marijuana and at least one other ingredient, is intended for consumption or use other than by smoking or vaporizing, is intended for external use only, and is either a topical marijuana-infused product or a transdermal marijuana-infused product.

(37) "Opaque" means packaging that does not allow the contents to be seen when unopened. Packaging may be opaque by virtue of the specific properties of the material of which it is composed, including any coating applied to it, or by means of a secondary opaque covering, such as a sticker. 

(38) "Package" or "packaging" means the immediate container in which a finished marijuana product is placed for retail sale to consumers and any outer container or wrapping used in the retail display of the marijuana or marijuana product to customers.

(39) "Performing work on behalf of any aspect of a marijuana business" means and includes:

(a) possessing, handling, producing, propagating, processing, securing, or selling marijuana or marijuana products at the licensed premises;

(b) recording of the possession, handling, production, propagation, processing, securing, or selling of marijuana or marijuana products at the licensed premises; and

(c) the direct supervision of a person described in (a) or (b).

(40) "Physician statement" means a written statement by a Montana licensed physician on department forms certifying the registered cardholder applicant's debilitating condition. Physician statement forms include:

(a) Physician Statement for Debilitating Condition; or

(b) Physician Statement for Minors.

(41) "Property owner permission form" means a completed, signed, and notarized form which gives an applicant or licensee who is renting or leasing the property where marijuana will be cultivated and manufactured permission to do so by the property owner. The form must be provided by the department.

(42) "Psychoactive" means capable of affecting mental processes or cognition when used as intended. A marijuana product is considered per se psychoactive if it is not a topical marijuana-infused product and the labeled potency is greater than .3% THC.

(43) "Red county" means a county where the majority of voters voted against approval of Initiative Measure No. 190 in the November 3, 2020 general election or where the local government has voted to prohibit all marijuana businesses pursuant to 16-12-301, MCA. This definition does not include a municipality that has approved or disapproved a category or categories of marijuana businesses, as authorized in 16-12-301, MCA.

(44) "Registered premises" has the same meaning as "licensed premises."  

(45) "Registry" means the department's confidential record identifying registered cardholders.

(46) "Resident" means a person determined to be a resident of Montana for tax purposes, pursuant to ARM 42.15.109.

(47) "Seed-to-sale tracking system" means the system provided in 16-12-105, MCA, for tracking inventory of marijuana, marijuana concentrate, and marijuana-infused products from either the seed or the seedling stage until the marijuana or marijuana product is sold to a consumer.

(48) "Test Batch" means a portion of a harvest or process lot that has been submitted for quality assurance testing.

(49) "THC" means tetrahydrocannabinol.

(50) "THCA" means tetrahydrocannabinolic acid.

(51) "Topical marijuana-infused product" or "topical" means a non-ingestible marijuana-infused product that is not psychoactive when used as intended. Topicals include but are not limited to creams, salves, bath soaks, and lotions.

(52) "Total potential psychoactive THC" means the highest theoretical concentration of psychoactive THC available in a marijuana item achievable only through the complete conversion of THCa to THC with the application of heat during administration/consumption. Total potential psychoactive THC is the sum of THC and THCa calculated using the following equation: Total potential psychoactive THC = (THCa x 0.877) + THC.

(53) "Transdermal marijuana-infused product" or "transdermal" means a non-ingestible marijuana-infused product that contains at least one skin-permeation-enhancing ingredient to facilitate absorption through the skin into the bloodstream, and may be psychoactive when used as intended. Transdermal products include but are not limited to adhesive patches applied to the skin.

(54) "Transmucosal marijuana-infused product" means an ingestible marijuana-infused product that is intended to be placed in a body cavity and absorbed through the mucosal lining of the cavity, and may be psychoactive when used as intended. Transmucosal marijuana-infused products include, but are not limited to, marijuana-infused tinctures, anal suppositories, lozenges, and nasal sprays.


History: 16-12-112, MCA; IMP, 16-12-101, 16-12-102, 16-12-104, 16-12-105, 16-12-112, 16-12-201, 16-12-207, 16-12-208, 16-12-210, 16-12-301, 16-12-501, 16-12-503, 16-12-508, 16-12-515, 16-12-533, MCA; NEW, 2011 MAR p. 2047, Eff. 9/23/11; AMD, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from 37.107.110, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1147, Eff. 9/11/21; AMD, 2021 MAR p. 1937, Eff. 1/1/22; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.103   PROOF OF MONTANA RESIDENCY

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-311, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; AMD, 2020 MAR p. 914, Eff. 5/16/20; TRANS, from ARM 37.107.105, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.104   LICENSE, APPLICATION, AND RENEWAL FEES

(1) Initial licensure and renewal fees for the following license types and endorsements are: 

(a) Two-year marijuana transporter license: $10,000.

(b) Combined-use marijuana license: $7,500.

(c) Marijuana testing laboratory license: $5,000 per licensed premises.

(d) Marijuana dispensary license:  $5,000 per licensed premises.

(e) Cultivator license:

(i) $1,000 for a cultivator with a micro tier canopy license;

(ii) $2,500 for a cultivator with a tier 1 canopy license;

(iii) $5,000 for a cultivator with a tier 2 canopy license;

(iv) $7,500 for a cultivator with a tier 3 canopy license;

(v) $10,000 for a cultivator with a tier 4 canopy license;

(vi) $13,000 for a cultivator with a tier 5 canopy license;

(vii) $15,000 for a cultivator with a tier 6 canopy license;

(viii) $17,500 for a cultivator with a tier 7 canopy license;

(ix) $20,000 for a cultivator with a tier 8 canopy license;

(x) $23,000 for a cultivator with a tier 9 canopy license;

(xi) $27,000 for a cultivator with a tier 10 canopy license;

(xii) $32,000 for a cultivator with a tier 11 canopy license; and

(xiii) $37,000 for a cultivator with a tier 12 canopy license.

(f) Manufacturer license:

(i) $5,000 for each manufacturing facility that produces, on a monthly basis, less than ten pounds of concentrate;

(ii) $10,000 for each manufacturing facility that produces, on a monthly basis, between ten pounds of concentrate and 15 pounds of concentrate;

(iii) $20,000 for each manufacturing facility that produces, on a monthly basis, 15 pounds of concentrate; and

(iv) any manufacturing licensee that produces, on a monthly basis, more than 15 pounds of concentrate, shall pay an additional $1,000 per pound.

(g) Storage facility endorsement: $1,000 per licensed storage facility.

(2) At the time of the initial application and at renewal, an applicant shall pay the department a nonrefundable processing fee equal to 20 percent of the license fee identified in (1). The department will not begin processing an application until it receives all processing fees. A licensee shall pay the department the remaining 80 percent of the license fee upon department notification of approval of its application or renewal.

(3) The fee for an initial worker permit and a renewal permit is $50. A replacement permit is $10.

(4) The fee for an initial registry identification card and a renewal card is $20. A replacement card is $10.

(5) Background checks: the department shall assess the applicant a fee of $30 per background check. This fee is separate from and in addition to the nonrefundable processing fee assessed in (2).

(6) Location changes: the fee for changing the location of any licensed premises is $2,500.

 

History: 16-12-112, 16-12-202, 16-12-204, 16-12-222, 16-12-226, 16-12-508, 16-12-533, MCA; IMP, 16-12-112, 16-12-204, 16-12-222, 16-12-226, 16-12-508, 16-12-533, MCA; NEW, 2022 MAR p. 81, Eff. 1/1/22.

42.39.105   GENERAL LICENSEE REQUIREMENTS

(1) A licensee must ensure that all employees wear a department-issued worker permit in a clearly visible manner on the outermost layer of clothing while working on behalf of the licensee. A licensee is responsible for the security of all marijuana and marijuana products on a licensed premises, during transit, and under the supervision of the licensee or its employee until the marijuana or marijuana product is sold.  

(2) A licensee is responsible for ensuring the department has a current and working email address and a current and valid mailing address on file to receive department correspondence.

(3) A licensee is responsible for providing the department with its hours of operation for each licensed premises. A licensee or its employee must be on-site during hours of operation and must make the licensed premises available to department inspectors during those hours.

(4) A licensee must use a weighing device pursuant to 30-12-203, MCA, and ARM 24.351.101 whenever marijuana is:

(a) packaged for sale by weight;

(b) bought and sold by weight; and

(c) weighed for entry into the seed-to-sale tracking system.

(5) A licensee must establish and maintain and make available for department inspection at all licensed premises written emergency procedures to be followed in case of a fire, chemical spill, or other emergency.

(6) A licensee must maintain and make available for department inspection at all licensed premises the following documentation or information in a single binder, file, or other organized and readily accessible format:

(a) proof that any signage at the licensed premises complies with local jurisdiction sign ordinances and regulations;

(b) proof that licensees and employees of licensees are current on the required trainings;

(c) the emergency procedures required by (5);

(d) the written security plan required by ARM 42.39.121(1);

(e) for marijuana manufacturer licensees, the written standard operating procedures required by ARM 42.39.401(16);

(f) for marijuana cultivator licensees, the written standard operating procedures required by ARM 42.39.405(8); and

(g) for marijuana dispensary licensees, a written standard operating procedure for the destruction of returned marijuana or marijuana products. 

 

History: 16-12-112, MCA; IMP, 16-12-112, MCA; NEW, 2022 MAR p. 82, Eff. 1/1/22.

42.39.106   REGISTERED CARDHOLDER APPLICATION PROCESS

(1) An applicant must be a resident of the State of Montana. 

(2) All applications must be completed on forms provided by the department.

(3) A complete application must include the required fee, statements, and forms required in the application packet to be accepted and processed by the department. Any documents submitted electronically must be uploaded in a format that the department is able to access and view.

(4) The registry identification card expires one year from the date of issuance unless the physician statement provides a written certification for a shorter period of time.

(5) A physician statement must be dated within 60 days of the application date. The department shall deny an application submitted with a physician statement dated more than 60 days from the application date.

(6) Any denial under this part is subject to a contested case hearing before the department's Office of Dispute Resolution, as provided for under ARM 42.2.621.

(7) A registered cardholder who submits a renewal application less than 30 days prior to the registry identification card's expiration date assumes the risk and possibility of the card expiring until the department processes and approves the renewal application.

(8) A custodial parent or legal guardian may submit an application for a minor under 16-12-508, MCA.

 

History: 16-12-112, MCA; IMP, 16-12-112, 16-12-503, 16-12-508, 16-12-509, MCA; NEW, 2011 MAR p. 2047, Eff. 9/23/11; AMD, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.111, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1147, Eff. 9/11/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.107   LICENSE AND ENDORSEMENT APPLICATION PROCESS

(1) An applicant must be a resident of the State of Montana.

(2) All applications must be completed on forms provided by the department. 

(3) Licenses expire one year from the date of issuance, except for marijuana transporter licenses which expire two years from the date of issuance. 

(4) Renewal applications must be submitted at least 60 days prior to the expiration date of the license.

(5) The department will approve or deny a new application within 120 days of receiving a complete application and will approve or deny a renewal application within 60 days of receiving a complete application. An application is considered complete when the applicant or licensee, as applicable, has provided all statements, forms, diagrams, operation plans, and other applicable documents required in the application and has paid the nonrefundable processing fee pursuant to ARM 42.39.104(2) and has paid the remaining balance of the license fee upon notification by the department of its pending approval.

(6) If a renewal application is received less than 60 days prior to license expiration, the department will process the application, but the licensee assumes the risk and possibility of having to suspend operations until the department processes and approves the renewal application.

(7) Prior to approving an application, the department may contact any applicant or individual listed on the application and request additional supporting documentation or information.

(8)  Prior to issuing a license or endorsement, the department will inspect the proposed premises to determine if the applicant complies with the marijuana laws.

(9) If a licensee fails to submit a renewal application prior to the license or endorsement expiration date, the licensee may not continue to operate.

(10) The department will not consider a renewal application received after the license or endorsement expiration date, in which case the license will lapse.

(11) The department will not amend or extend a license's expiration date unless the licensee can demonstrate that its failure to timely submit a renewal application was due to circumstances beyond its control.

(12) A licensee may not operate until on or after the effective date of the license.

(13) Any denial under these rules is subject to a contested case hearing before the department's Office of Dispute Resolution, as provided for under ARM 42.2.621.

 

History: 16-12-112, MCA; IMP, 16-12-112, 16-12-201, 16-12-203, 16-12-503, MCA; NEW, 2011 MAR p. 2047, Eff. 9/23/11; AMD, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.115, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.108   FEES

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-344, MCA; NEW, 2011 MAR p. 2047, Eff. 9/23/11; AMD, 2012 MAR p. 1061, Eff. 5/25/12; AMD, 2016 MAR p. 1166, Eff. 7/9/16; AMD, 2018 MAR p. 321, Eff. 4/10/18; AMD, 2020 MAR p. 914, Eff. 5/16/20; TRANS, from ARM 37.107.117, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1147, Eff. 9/11/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.109   PROVIDER AND MARIJUANA-INFUSED PRODUCTS PROVIDER TIER 10 THROUGH TIER 12 CANOPY LICENSE AND REGISTERED PREMISES REQUIREMENTS

This rule has been repealed.

History: 50-46-305, MCA; IMP, 50-46-305, MCA; NEW, 2021 MAR p. 1333, Eff. 10/9/21; REP, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.110   PROVIDER AND MARIJUANA-INFUSED PRODUCTS PROVIDER TIER 10 THROUGH TIER 12 CANOPY LICENSE ANNUAL FEE REQUIREMENTS

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-305, MCA; NEW, 2021 MAR p. 1333, Eff. 10/9/21; REP, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.111   MARIJUANA AND MARIJUANA-INFUSED PRODUCTS PROVIDER LICENSEE REQUIREMENTS

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-312, 50-46-319, 50-46-326, 50-46-328, 50-46-329, 50-46-330, MCA; NEW, 2018 MAR p. 592, Eff. 4/10/18; AMD, 2018 MAR p. 1968, Eff. 10/6/18; AMD, 2020 MAR p. 914, Eff. 5/16/20; TRANS, from ARM 37.107.118, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.112   FINGERPRINT AND BACKGROUND CHECK REQUIREMENTS

(1) A fingerprint background check by the Montana Department of Justice and Federal Bureau of Investigation is required for the following:

(a) all individuals listed on the application; and

(b) a parent or guardian of a minor serving as the minor's provider.

(2) Two fingerprint cards must be completed by a trained individual within a certified fingerprinting agency and submitted to the department.

(3) Results of background checks must be received prior to approval of any application.

 

History: 16-12-112, MCA; IMP, 16-12-112, 16-12-129, MCA; NEW, 2011 MAR p. 2047, Eff. 9/23/11; AMD, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.119, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.113   MARIJUANA EMPLOYEE PERMIT

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-311, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; AMD, 2020 MAR p. 914, Eff. 5/16/20; TRANS, from ARM 37.107.120, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.114   TRANSPORTATION AND DELIVERY OF MARIJUANA ITEMS

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-311, 50-46-319, 50-46-326, 50-46-329, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.124, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.115   WORKER PERMITS

(1) A marijuana worker permit is required for any individual age 18 and over who performs work for or on behalf of any aspect of a marijuana business.  

(2) Individuals with current, valid agent badges in good standing with the department may continue to work with their existing agent badge. 

(3) All individuals required to have a worker permit shall undergo a criminal background before March 31, 2022, on a form provided by the department.

(4) If an individual fails to submit to a background check before March 31, 2022, their worker permit will be subject to suspension or revocation. 

(5) Individuals may apply for worker permits under 16-12-226, MCA, at their next renewal date.

(6) Applicants must pay the fee provided in ARM 42.39.104 within ten days of submitting an application. Failure to pay the fee within the 10-day period will result in denial of the application.

(7)  When an application is denied for any reason, an applicant must reapply and resubmit the fee provided in ARM 42.39.104.

 

History: 16-12-112, MCA; IMP, 16-12-112, 16-12-226, MCA; NEW, 2021 MAR p. 1937, Eff. 1/1/22; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.117   DENIAL OF REGISTRY IDENTIFICATION CARD APPLICATION OR REVOCATION OF REGISTRY IDENTIFICATION CARD

(1) The department, after written notice to the applicant or registered cardholder, may deny or revoke an application or registry identification card if: 

(a) the applicant did not provide the information required in the application;

(b) the department determines the information provided in the application was inaccurate, misleading, or falsified;

(c) the applicant did not submit the required fee with the application;

(d) the applicant or registered cardholder does not have or no longer has a debilitating medical condition as defined in 16-12-102, MCA;

(e) the applicant is not a resident of the State of Montana;

(f) the applicant is in the custody of or under supervision of the Department of Corrections or youth court

(g) the applicant or registered cardholder is found to be in violation of 16-12-523, MCA;

(h) the applicant or registered cardholder did not report changes to the department in accordance with ARM 42.39.311;

(i) the registry identification card has been found to be altered or manipulated in any way;

(j) the cardholder violates the daily or monthly purchase limitations contained in 16-12-515, MCA; or

(k) the registered cardholder is found to be in violation of any provision under Title 16, chapter 12, part 5, MCA.

(2) Any denial or revocation under this part is subject to a contested case hearing before the department's Office of Dispute Resolution, as provided under ARM 42.2.621.

 

History: 16-12-112, MCA; IMP, 16-12-108, 16-12-112, 16-12-203, 16-12-503, 16-12-515, 45-9-203, 61-11-101, MCA; NEW, 2011 MAR p. 2047, Eff. 9/23/11; AMD, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.127, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1147, Eff. 9/11/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.118   ALLOWABLE AMOUNTS

(1) A registered cardholder may submit a petition for an increase in the monthly purchase limits defined in 16-12-515, MCA, on a form approved by the department and submitted through the licensing system. 

(a) The department may take prior sales history and other factors deemed relevant into account when evaluating a petition for an increase in sales limits.

(b) The department may approve increases to the monthly purchase limits up to a maximum of 8 ounces of usable marijuana or the equivalent in marijuana products as described in (2).

(2) Usable marijuana may be in the form of flower or marijuana products. The following conversion shall be used to determine the allowable amounts of non-flower marijuana:

(a) 1 ounce of marijuana flower is equal to:

(i) 800 mg of THC in marijuana products including edibles; or

(ii) 8 grams or 8 mL of marijuana concentrate.

(b) A customer may purchase or possess any combination of marijuana flower or marijuana products if the total calculated conversion is equal to or less than the legal purchase or possession amount.

 

History: 16-12-112, MCA; IMP, 16-12-106, 16-12-112, 16-12-207, 16-12-210, 16-12-301, 16-12-503, 16-12-515, MCA; NEW, 2017 MAR p. 1911, Eff. 10/28/17; AMD, 2018 MAR p. 321, Eff. 4/10/18; AMD, 2020 MAR p. 914, Eff. 5/16/20; TRANS, from ARM 37.107.128, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.119   DENIAL OR REVOCATION OF APPLICATION, LICENSE, OR ENDORSEMENT

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-312, 50-46-329, 50-46-330, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.130, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1147, Eff. 9/11/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.120   HEALTH CARE FACILITY PROCEDURES

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-320, 50-46-344, MCA; NEW, 2011 MAR p. 2047, Eff. 9/23/11; TRANS, from ARM 37.107.131, 2021 MAR p. 765, Eff. 7/2/21; REP, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.121   LICENSED PREMISES – SECURITY REQUIREMENTS

(1) All licensees must have a written, proactive security plan maintained on the licensed premises that safeguards against theft, diversion, or tampering of marijuana or marijuana products both on the licensed premises and during transit, if applicable. The security plan must, at a minimum, contain the following policies or procedures of how a licensee: 

(a) restricts access to the areas of the licensed premises containing marijuana or marijuana products to authorized persons only;

(b) provides for identification of authorized persons to be in the areas of the marijuana business that contain marijuana or marijuana products; and

(c) provides electronic monitoring of the licensed premises.

(2) A licensed premises must have only one single secure entrance to the building or licensed premises for public ingress and egress. 

(3) A licensed premises must have a security alarm system on all perimeter entry points and perimeter windows, as applicable.

(4) A licensed premises must have a video monitoring system with cameras that:

(a) have a minimum digital resolution of 640 x 470 pixels or pixel equivalent for analog;

(b) record continuously twenty-four hours per day, or on a motion-sensor system, at a minimum of ten frames per second;

(c) are placed to allow for optimal identification of any person and activities in limited access areas; and

(d) are placed to record all entrances and exits to an indoor facility from both indoor and outdoor vantage points.

(5) The video monitoring system described in (4) must also:

(a) keep all recordings for a minimum of 60 days; and

(b) record images with clear and accurate date and time display.

(6) All monitoring system videos are subject to inspection by the department and must be copied and provided to the department upon request.

(7)  Sections (3) through (6) will not be required until April 1, 2022.

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-112, 16-12-202, 16-12-207, 16-12-222, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22.

42.39.122   LICENSED PREMISES – MANDATORY SIGNAGE

(1) A marijuana business licensee must conspicuously display and make available its site identification certificate at each licensed premises.  

(2) All marijuana business licensees, except for marijuana dispensaries, must conspicuously post a notice at each entry to a licensed premises that contains all of the following: "Persons under twenty-one years of age not permitted on these premises without a valid worker permit."

(3) All marijuana dispensaries must conspicuously post a notice or notices at each entry to the licensed premises that contains all of the following language:

(a) "Persons under twenty-one years of age not permitted on these premises without a valid registry identification card or valid worker permit. Registered cardholders under the age of 18 must be accompanied by a legal guardian."

(b) "No on-site consumption of marijuana or marijuana products." and

(c) "No on-site opening of marijuana or marijuana products."

(4) A marijuana business licensee that is not permitted to sell marijuana or marijuana products to adult use consumers, or a marijuana business licensee that elects not to sell marijuana or marijuana products to adult use consumers, must conspicuously post a notice at the entry to the licensed premises visible from outside that contains all of the following language: "This dispensary is licensed for medical marijuana sales only. No sales will be permitted without a valid registry identification card."

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-112, 16-12-203, 16-12-207, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22.

42.39.123   ADVERTISING

 

(1) A licensee may promote its business and market its brand but may not advertise marijuana or marijuana products except in electronic advertising.

(2) "Advertise or advertising" means the publication, dissemination, solicitation, or circulation of visual, oral, or written communication to directly induce any person to purchase or consume marijuana or marijuana products. Advertising does not include branding, marketing, or packaging and labeling of marijuana and marijuana products.

(3) "Billboard" means a sign that directs attention to a business, commodity, service, entertainment, or attraction sold, offered, or existing elsewhere than upon the same premises where such sign is displayed.

(4) A licensee may use the phrase "marijuana" or "cannabis" in its signage or in its electronic advertising.

(5) A licensee's outdoor signage may not use colloquial terms for marijuana or marijuana products (e.g., pot, reefer, ganja, weed) and may not use an image or visual representation of useable marijuana, marijuana-infused products, marijuana concentrates, marijuana paraphernalia, or an image that indicates the presence of a product such as smoke, edibles, etc.

(6) A licensee's outdoor signage must comply with any applicable local jurisdiction sign ordinances and regulations.

(7) A marijuana business that maintains a webpage must utilize appropriate measures to verify that individuals visiting the webpage are 21 years of age or older.

(8) Marijuana business social media accounts that advertise marijuana or marijuana products must be private and must contain a clearly visible notice on the main page stating that only persons 21 years of age or older may follow the account.

(9) A marijuana business may not:

(a) engage in advertising via marketing directed towards location-based devices, including, but not limited to cellular phones, unless users affirmatively opt in to receiving push notifications related to marijuana or marijuana-related products;

(b) utilize unsolicited pop-up or push-to advertising on the internet;

(c) advertise on television, radio, or in print such as newspapers, magazines, flyers, and mailers;

(d) engage in advertising or utilize signage that asserts its products are safe;

(e) utilize a billboard;

(f) use objects such as toys or inflatables, movie or cartoon characters, or any other depiction or image likely to be appealing to youth, where the objects, images, or depictions indicate an intent to cause youth to become interested in the purchase or consumption of marijuana products; or

(g) use or employ a commercial mascot outside of, and in proximity to, a licensed marijuana business. A "commercial mascot" means a live human being, animal, or mechanical device used for attracting the attention of motorists and passersby so as to make them aware of marijuana products or the presence of a marijuana business. Commercial mascots include, but are not limited to, inflatable tube displays, persons in costume, or wearing, holding, or spinning a sign with a marijuana-related commercial message or image, where the intent is to draw attention to a marijuana business or its products.

(10) The prohibition in (9)(c) does not prohibit the use of informational pamphlets for dissemination at marijuana trade conferences or the use or distribution of business cards. 

(11) The prohibition in (9)(d) does not prohibit a marijuana business from asserting that its products have been tested by a licensed marijuana testing laboratory.

 

History: 16-12-112, 16-12-211, MCA; IMP, 16-12-112, 16-12-211, MCA; NEW, 2020 MAR p. 914, Eff. 5/16/20; TRANS, from ARM 37.107.134, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1333, Eff. 10/9/21; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.124   DETERMINATION OF PROXIMITY TO PLACE OF WORSHIP OR SCHOOL

(1) In order to apply the provisions of 16-12-207(3), MCA, to a cultivator licensee, manufacturer licensee, adult-use dispensary licensee, or medical marijuana dispensary licensee, the department must find: 

(a)  the entrance doors of the premises proposed for licensing and the entrance doors of the place of worship or school are situated on the same street; and

(b)  the physical address of the premises proposed for licensing is designated as the same street as the physical address of the place of worship or school; and

(c)  the distance, measured in a straight line from the entrance doors of the business proposed for licensing, and the entrance doors of the place of worship or school is 500 feet or less.

(2)  If the three-part test in (1) is not met in its entirety, the provisions of 16-12-207, MCA, do not apply.

(3)  The distance between entrance doors is measured by a geometric straight line, regardless of intervening property and buildings.  An entrance is considered to be a means of ingress to the premises generally used by the public.  This does not include egress-only doors, delivery, or service entrances.

(4)  In the event that a county or city government should enact an ordinance or resolution supplanting the provisions of 16-12-207, MCA, the restriction shall not apply.

(5)  A conformed copy of such supplanting ordinance or resolution must be submitted to the department by an applicant or a licensee, in the case where a local government adopts an ordinance or resolution regarding the premises location after the department approves the premises.

 

History: 16-12-112, MCA; IMP, 16-12-207, MCA; NEW, 2022 MAR p. 838, Eff. 5/28/22.

42.39.201   PRODUCING MARIJUANA-INFUSED PRODUCTS, CONCENTRATES, AND EXTRACTS

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-312, 50-46-328, 50-46-329, 50-46-330, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.204, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.202   SEED-TO-SALE TRACKING SYSTEM USER REQUIREMENTS

(1) A licensee must have a department seed-to-sale tracking system account activated and functional prior to operating or exercising any privileges of the license and must maintain an active account while licensed.

(2) Additional licensees or licensee employees may be authorized to obtain seed-to-sale tracking system user accounts.

(3) To obtain and maintain a seed-to-sale tracking system user account, a licensee or licensee employee must successfully complete all required department seed-to-sale tracking system training.

(4) An individual entering data into the seed-to-sale tracking system may only use that individual's seed-to-sale tracking system account.

(5) A licensee must ensure:

(a) all seed-to-sale tracking system users are up to date on seed-to-sale tracking system user training requirements; and

(b) any data that is entered into the seed-to-sale tracking system in error is corrected.

(6) A licensee and any designated seed-to-sale tracking system user must enter data into the seed-to-sale tracking system that accounts for all seed-to-sale tracking activities.

(7) A licensee is accountable for all actions seed-to-sale tracking system users take while logged into the seed-to-sale tracking system.

(8) A licensee is responsible for the accuracy of all information entered into the seed-to-sale tracking system.

(9) Nothing in this rule prohibits a licensee from using secondary separate software applications to collect information to be used by the business, including secondary inventory tracking or point-of-sale systems. 

(10) If a licensee uses a separate software application that links to the seed-to-sale tracking system it must get approval from the seed-to-sale tracking system vendor contracting with the department and the software application must:

(a) accurately transfer all relevant inventory tracking system data to and from the seed-to-sale tracking system; and

(b) preserve original seed-to-sale tracking system data when transferred to and from a secondary application.

(11) If a licensee loses access to the seed-to-sale tracking system due to a power outage or other connectivity issue, the licensee must keep and maintain comprehensive records detailing all seed-to-sale inventory activities that were conducted during the loss of access.

(12) Once access is restored, all seed-to-sale tracking activities that occurred during the loss of access must be entered into the seed-to-sale tracking system.

(13) A licensee must document when access to the seed-to-sale tracking system was lost and when it was restored.

(14) All compliance notifications from the seed-to-sale tracking system must be resolved in a timely fashion. 

 

History: 16-12-112, MCA; IMP, 16-12-105, 16-12-112, 16-12-203, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.205, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.203   SEED-TO-SALE TRACKING AND RECONCILIATION

(1) A licensee must use the department's seed-to-sale tracking system as the primary inventory and record keeping system.  

(2) Each individual marijuana plant that reaches a height of twelve inches must be issued a unique identification number in the seed-to-sale tracking system, which follows the plant through all phases of production and final sale to a customer.

(3) All marijuana items, test batches, harvest lots, and process lots must be issued a unique identification number in the seed-to-sale tracking system.

(4) Unique identification numbers cannot be reused.

(5) Each marijuana plant, marijuana item, test batch, harvest lot, and process lot that has been issued a unique identification number must have a physical tag placed on it with the unique identification number.

(6) The tag must be legible and placed in a position that can be clearly read and must be kept free from dirt and debris.

(7) Licensees must use unique identification tags purchased from the seed-to-sale tracking system vendor.

(8) All on-premises and in-transit marijuana item inventories must be reconciled in the seed-to-sale tracking system at the close of business each day.

(9) For each marijuana sale or transfer to a registered cardholder, the licensee or its employee must verify the registered cardholder's eligibility and daily and monthly purchase limits and record in the seed-to-sale tracking system at the time of sale or transfer:

(a) the quantity of each item sold or transferred to a registered cardholder;

(b) the price before tax; and

(c)  the date of the sale or transfer to a customer.

(10) Licensees must record in the seed-to-sale tracking system:

(a) wet weight of all harvested marijuana plants immediately after harvest;

(b) information for marijuana items by unit count;

(c) weight per unit of a product;

(d) weight and disposal of post-harvest waste materials, per the requirements described in ARM 42.39.310;

(e) theft or loss of marijuana items; and

(f) other information as may be required by the department.

(11) These requirements do not apply to marijuana items held by a laboratory licensee that are undergoing analytical testing, so long as the marijuana items do not leave the laboratory's licensed premises and are reconciled on the same day that the quality assurance testing concludes.

(12) All samples taken for quality assurance testing must be recorded in the seed-to-sale tracking system.

(13) Licensed testing laboratories must record all testing results in the seed-to-sale tracking system.

 

History: 16-12-112, MCA; IMP, 16-12-105, 16-12-108, 16-12-112, 16-12-203, 16-12-209, 16-12-210, 16-12-515, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; AMD, 2020 MAR p. 914, Eff. 5/16/20; TRANS, from ARM 37.107.206, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.301   LABELING OF MARIJUANA ITEMS

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-326, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.401, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.302   PACKAGING FOR SALE TO CONSUMER

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-326, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.402, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.305   QUALITY ASSURANCE TESTING SAMPLE REQUIREMENTS

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-311, 50-46-326, 50-46-329, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.405, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.306   QUALITY ASSURANCE TESTING REQUIREMENTS

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-311, 50-46-326, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.407, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.307   FAILED TEST SAMPLES

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-311, 50-46-326, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.410, 2021 MAR p. 765, Eff. 7/2/21; REP, 2022 MAR p. 403, Eff. 3/26/22.

42.39.310   WASTE MANAGEMENT

(1) A licensee must store, manage, and dispose of solid and liquid waste generated during marijuana production and processing in accordance with applicable state and local laws and regulations. 

(2) A licensee must store marijuana waste in a secured waste receptacle in the possession of and under the control of the licensee.

(3) Waste that must be rendered unusable prior to disposal includes:

(a) marijuana plant waste, including roots, stalks, leaves, and stems that have not been processed with solvent;

(b) waste solvents used in the marijuana process;

(c) spent solvents, laboratory waste, and excess marijuana from any quality assurance testing; and

(d) marijuana items that ultimately fail to meet testing requirements.

(4) The allowable method to render a marijuana item unusable is by grinding (for solids) and incorporating or absorbing (for liquids) the marijuana item with other ground materials so the resulting mixture is undesirable, unrecognizable, unfit for human use, and incapable of growth or germination. For whole marijuana plants, the resulting mixture must be at least 50 percent nonmarijuana waste by volume.

(5) For purposes of this rule, "use" includes, but is not limited to, ingestion, inhalation, topical application, processing, or remediation.

(6) Nonhazardous marijuana waste shall be disposed of as follows:

 

Marijuana Item

Destruction Method

Disposal Method

Marijuana plants

Mix with yard debris, wood chips, sawdust, soil, manure, vegetable-based grease or oils, other wastes

Compost or anaerobic digester, if available, off site

Usable marijuana

Mix with yard debris, wood chips, sawdust, soil, manure, vegetable-based grease or oils, other wastes

Landfill, transfer station, or incinerator, if composing not available or feasible

Liquid concentrate, extracts, or infused products

Absorb in cat litter, slack lime, soil, or similar substance

Landfill, transfer station, or incinerator

Solid concentrate, extracts, or infused products

Mix with soil, slack lime, garbage, or similar substance

Landfill, transfer station, or incinerator

 

(7) Marijuana testing laboratories, marijuana manufacturers, and other licensees that generate hazardous waste shall follow all applicable rules and regulations for the disposal of hazardous waste, including ARM 17.53.105 and 17.53.113. Licensees need to contact the Department of Environmental Quality Hazardous Waste Program for assistance.

(8) A licensee must maintain accurate and comprehensive records regarding waste material in the seed-to-sale tracking system that accounts for, reconciles, and evidences all waste activity related to the disposal of marijuana to include:

(a) what was disposed;

(b) quantity by weight or volume;

(c) date disposed;

(d) video evidence of disposal to be retained for 30 days; and

(e) reason for the disposal.

(9) A licensee must provide a minimum of 72 hours' notice in the seed-to-sale tracking system prior to rendering the marijuana item unusable and disposing of it.

(10)  After the expiration of the 72-hour period in (9), a licensee may dispose of marijuana waste other than usable marijuana as defined in 16-12-102, MCA, without rendering it unusable pursuant to (3) by releasing it to a third-party contractor to render it unusable. A licensee must provide the department with a copy of the waste removal agreement with the third-party contractor before commencing services and must maintain the contract in the binder of documents required by ARM 42.39.105(6). The third-party contractor may process marijuana stalks and stems into non-marijuana products or otherwise render the marijuana stalks and stems unusable.

 

History: 16-12-112, MCA; IMP, 16-12-103, 16-12-105, 16-12-112, 16-12-203, 16-12-210, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.413, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1147, Eff. 9/11/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22; AMD, 2022 MAR p. 2027, Eff. 9/24/22.

42.39.311   REPORTING REQUIREMENTS

(1) A registered cardholder must notify the department within ten days of any changes in the following: 

(a) cardholder's name or address;

(b) referral physician; or

(c) change in the status of the cardholder's debilitating medical condition.

(2) A registered cardholder must report to the department within ten calendar days any lost or stolen registry identification card.

(3) A licensee must notify the department within ten days of any changes in the following:

(a) anyone identified as an applicant or controlling beneficial owner or anyone with a financial interest in the license;

(b) its standard operating hours;

(c) temporary closure of longer than 30 days; and

(d) permanent closure of the business.

(4) A licensee who wishes to change the location of a licensed premises must submit a completed application for the new premises including all required forms, documents, and fees.

(5) A licensee who intends to make any material or substantial changes to the licensed premises must submit the changes to the department for approval prior to making any such changes. Material or substantial changes include:

(a) any increase or decrease in the total physical size or capacity of the licensed premises;

(b) alterations to public ingress or egress of limited access areas;

(c) any changes to the security plan.

(6) A licensee must notify the department as soon as reasonably practical but in no case more than 24 hours following the theft of marijuana items or money from the licensed premises.

 

History: 16-12-112, 16-12-533, MCA; IMP, 16-12-112, 16-12-202, 16-12-203, 16-12-503, 16-12-508, 16-12-533, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.415, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.312   MARIJUANA ITEM RECALLS

(1) For purposes of this rule, the following definitions apply: 

(a) "affected licensee" means a licensee whose marijuana or marijuana products are subject to a recall. More than one licensee may be an affected licensee in a recall;

(b) "affected product" means marijuana or a marijuana product subject to a recall.

(2) A recall is required when marijuana or marijuana products pose a risk to public health and safety. A recall shall be based on evidence that marijuana or a marijuana product is contaminated or otherwise unfit for human use, consumption, or application.

(3) A licensee must develop a recall plan that establishes the procedures the licensee will follow in the event of a recall of its product or products. A recall plan must, at a minimum:

(a) designate a member of the licensee's staff who serves as the licensee's recall coordinator;

(b) establish procedures for identifying and isolating product to prevent or minimize its distribution to customers;

(c) establish procedures to retrieve and destroy product; and

(d) establish a communications plan to notify those affected by the recall, including:

(i) how the affected licensee will notify registered cardholders and other licensees in possession of affected product; and

(ii) the use of a press release and other appropriate notifications to ensure customers are notified of the recall and affected product information.

(4) If the department or the Department of Public Health and Human Services determines that a recall is required, an affected licensee shall:

(a) immediately notify registered cardholders and other licensees that received the affected product;

(b) immediately issue a press release or other appropriate public notification to inform customers of the recall and identifying information about the affected product recalled;

(c) provide the department with a copy of the press release or other appropriate public notification in (4)(b);

(d) post on its website, if applicable, information about the recall and the affected product; and

(e) perform a causation analysis to determine the issue or issues leading to the recall and provide to the department a corrective action report and preventative action report, as both are defined by the Department of Public Health and Human Services, which details how the affected licensee plans to correct and prevent future recalls.

(5) An affected licensee must coordinate with the department for destruction of the affected product and allow the department to oversee the destruction.

(6) An affected licensee must track the total amount of affected product and the amount of affected product returned to the affected licensee as part of the recall effort. The affected licensee must periodically report to the department on the progress of the recall efforts.

(7) If an affected licensee determines that a recall is required, it must immediately notify the department. The affected licensee must then follow the procedures established in (4) through (6).

(8) If the department determines that a recall is successful, and the risk to public health and safety is no longer present, the department shall notify the affected licensee and close the recall.  

(9) The department shall maintain a marijuana recall page on its website of all current recalls.

 

History: 16-12-112, MCA; IMP, 16-12-105, 16-12-112, 16-12-209, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.420, 2021 MAR p. 765, Eff. 7/2/21; AMD, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.313   INSPECTIONS

This rule has been repealed.

History: 50-46-344, MCA; IMP, 50-46-303, 50-46-308, 50-46-311, 50-46-312, 50-46-319, 50-46-328, 50-46-329, MCA; NEW, 2018 MAR p. 321, Eff. 4/10/18; TRANS, from ARM 37.107.425, 2021 MAR p. 765, Eff. 7/2/21; REP, 2021 MAR p. 1971, Eff. 1/1/22.

42.39.314   GENERAL LABELING REQUIREMENTS

(1) Labeling requirements apply to marijuana and marijuana products sold from a dispensary to customers. A licensee that sells marijuana or marijuana products to other licensees is not required to comply with labeling requirements.  

(2) All information required on the label of marijuana or a marijuana product shall be:

(a) unobstructed and conspicuous. A licensee may affix multiple labels to a package, or use a booklet, accordion, or other type of label, provided that no required information is completely and permanently obstructed;

(b) displayed in a legible font, such as Times New Roman, Arial, or Helvetica. The lowercase letter "o" must be at least one-sixteenth of an inch in height;

(c) displayed in a color that contrasts conspicuously with the background; and

(d) displayed in English, although a licensee may choose to display required information in additional languages.

(3) All marijuana or marijuana products shall be labeled with the following information:

(a) strain name;

(b) the common or usual name of the marijuana product (e.g., flower, inhaled extract, edible, cookie, or drinkable, topical, transdermal patch);

(c) the name of the marijuana dispensary that sold the product and the license number or numbers of the cultivator and manufacturer, as applicable; 

(d) the unique identification number generated from the seed-to-sale tracking system;

(e) date of harvest for marijuana flower or date of manufacture for marijuana products;

(f) the net quantity of contents of the marijuana product. The statement of quantity shall be:

(i) stated in U.S. Customary Units and Metric (SI) Units, with the latter enclosed in parentheses;

(ii) if the product is a liquid:

(A) expressed in terms of fluid measure; and

(B) preceded by the phrase "Net Contents" or "Net"; or

(iii) if the product is a solid, semi-solid, or viscous:

(A) expressed in terms of weight; and

(B) preceded by the phrase "Net Weight," the abbreviation "Nt. Wt.," or "Net."

(iv) In addition to weight or fluid measure, a licensee shall include the number of servings in the net quantity of contents statement if the product is a multi-serving marijuana product (e.g., Net Weight: 2 oz. (56.7 g) (10 cookies)); 

(g) the following statement: "This product has been tested and meets the requirements of the state of Montana."

(h) a QR code that links to the product's certificate of analysis with a statement informing customers they can scan the code to see additional product information;

(i) the universal symbol, available from the department's website. The universal symbol:

(i) shall be at least .33 inches wide and .33 inches high;

(ii) may be downloaded from the department's website; and

(iii) shall be in the following form:

 

A yellow triangle with a black background

Description automatically generated with low confidence

 

(4) All marijuana and marijuana products shall be labeled with the following warnings:

(a) "Keep out of reach of children and pets";

(b) "This product may be addictive"; and

(c) "This product may have intoxicating effects. Do not drive while under the influence of marijuana."

(5) Marijuana or marijuana product labeling shall not contain any statement or information that is false or misleading.

(6) The label of manufactured marijuana products must identify the method of manufacturing (e.g., mechanical, chemical) and for chemical manufacturing must identify the solvent used in the manufacturing process.

(7) Marijuana or marijuana products that, because of their size, do not have sufficient space for all of the information required for compliance with the Act and department rules may, if approved by the department pursuant to 16-12-208, MCA, display the information required in (3) in a legible font that does not meet the minimum size requirement established in (2)(b).

(8) Marijuana or marijuana products in excess of the THC limits in 16-12-224, MCA, may only be sold to registered cardholders and must contain the following additional information:

(a) "For medical use only"; and

(b) "This product is not approved by the U.S. Food and Drug Administration to treat, cure, or prevent any disease."

(9) Marijuana or marijuana products that do not require heat to administer or consume shall not have a total THC or total potential psychoactive THC value listed on the marijuana facts panel.

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-112, 16-12-208, 16-12-224, MCA; NEW, 2022 MAR p. 81, Eff. 1/1/22.

42.39.315   LABELING REQUIREMENTS FOR MARIJUANA FLOWER

(1) In addition to the general labeling requirements set forth in ARM 42.39.314, each package of marijuana flower sold to a customer shall be labeled with a marijuana facts panel.  

(2) A marijuana facts panel shall include the percentage of concentration of:

(a) total potential psychoactive THC;

(b) THC;

(c) THCa;

(d) CBD; and

(e) CBDa.

(3) A marijuana facts panel may include the percentage concentration of each additional marketed cannabinoid or terpene, if applicable.

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-112, 16-12-208, MCA; NEW, 2022 MAR p. 81, Eff. 1/1/22.

42.39.316   LABELING OF INGESTIBLE MARIJUANA-INFUSED PRODUCTS

(1) In addition to the general labeling requirements set forth in ARM 42.39.314, each package of ingestible marijuana-infused product sold to a customer shall be labeled with the following information: 

(a) an ingredients list that shall include all ingredients in the ingestible marijuana-infused product listed by common or usual name in descending order of predominance by weight and the word "marijuana" followed by the part of the plant (e.g., flower, trim) or form of concentrate (e.g., oil, infused butter) used as an ingredient in the manufacturing process. Any substance that is present in an ingestible marijuana-infused product in an insignificant amount and that does not have any technical or functional effect in the finished product may be excluded from the ingredients list;

(b) an allergen statement that shall declare the presence of major food allergens in plain language;

(c) a marijuana facts panel containing the following information:

(i) the milligrams per serving size or dose of:

(A) THC;

(B) THCa;

(C) CBD; and

(D) CBDa;

(ii) the number of servings or doses per package; and

(iii) for multi-serving packages, the total milligrams per package of:

(A) THC;

(B) THCa;

(C) CBD;

(D) and CBDa;

(d) in addition to the required warnings in ARM 42.39.314, each package of ingestible marijuana-infused product sold to a customer shall be labeled with the following information: "The intoxicating effects of this product may be delayed by two or more hours."

(2) A marijuana facts panel for ingestible marijuana-infused products may not contain information on the total potential psychoactive THC, total THC, or otherwise mislead customers into believing the product has higher THC levels than it does. 

(3) A marijuana facts panel may include the milligrams of each additional marketed cannabinoid and terpene per serving size, dose, or package.

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-112, 16-12-208, MCA; NEW, 2022 MAR p. 81, Eff. 1/1/22.

42.39.317   LABELING OF NON-INGESTIBLE MARIJUANA-INFUSED PRODUCTS

(1) In addition to the general labeling requirements set forth in ARM 42.39.314, each packaging of non-ingestible marijuana-infused products shall be labeled with the following information: 

(a) an ingredients list that shall include all ingredients in the non-ingestible marijuana-infused product listed by common or usual name in descending order of predominance by weight and the word "marijuana" followed by the part of the plant (e.g., flower, trim) or form of concentrate (e.g., oil, infused butter) used as an ingredient in the manufacturing process. Any substance that is present in a non-ingestible marijuana-infused product in an insignificant amount and that does not have any technical or functional effect in the finished product may be excluded from the ingredients list;

(b) a marijuana facts panel containing the following information:

(i) the milligrams per application size or dose of:

(A) THC;

(B) THCa;

(C) CBD; and

(D) CBDa;

(ii) the number of applications or doses per package; and

(iii) for multi-dose packages, the total milligrams per package of:

(A) THC;

(B) THCa;

(C) CBD; and

(D) CBDa.

(2) A marijuana facts panel for non-ingestible marijuana-infused products may not contain information on the total potential psychoactive THC, total THC, or otherwise mislead customers into believing the product has higher THC levels than it does.

(3) A marijuana facts panel may include information about each additional marketed cannabinoid and terpene expressed in terms of milligrams per serving size, dose, or package. 

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-112, 16-12-208, MCA; NEW, 2022 MAR p. 81, Eff. 1/1/22.

42.39.318   LABELING REQUIREMENTS FOR MARIJUANA CONCENTRATES AND EXTRACTS

(1) In addition to the general labeling requirements set forth in ARM 42.39.314, each package of marijuana concentrate sold to a customer shall be labeled with the following information: 

(a) an ingredients list that shall include all ingredients in the marijuana concentrate listed by common or usual name in descending order of predominance by weight and the word "marijuana" followed by the part of the plant (e.g., flower, trim) from which the marijuana concentrate is derived. Any substance that is present in a marijuana concentrate in an insignificant amount and that does not have any technical or functional effect in the finished product may be excluded from the ingredients list;

(b) an allergen statement that shall declare the presence of major food allergens in plain language unless the marijuana concentrate is not intended to be cooked with, eaten, or otherwise swallowed and digested; 

(c) a marijuana facts panel containing the following information:

(i) for marijuana concentrates that require the application of heat before they are administered or consumed:

(A) the percentage concentration of:

(I) total potential psychoactive THC;

(II) THC;

(III) THCa;

(IV) CBD; and

(V) CBDa;

(B)  the number of servings or doses per package;

(ii) for marijuana concentrates that do not require the application of heat before they are administered or consumed:

(A) the percentage concentration of: 

(I) THC;

(II) THCa;

(III) CBD; and

(IV) CBDa;

(B) the number of servings or doses per package;

(d) in addition to the required warnings in ARM 42.39.314, each package of activated concentrate that is intended to be cooked with, eaten, or otherwise swallowed and digested shall be labeled with the following: "The intoxicating effects of this product may be delayed by two or more hours."

(2) A marijuana facts panel for marijuana concentrates that do not require the application of heat to be administered or consumed may not contain information on the total potential psychoactive THC, total THC, or otherwise mislead customers into believing the product has higher THC levels than it does.

(3) A marijuana facts panel may include information about each additional marketed cannabinoid and terpene, expressed in percentage of concentration by weight or by volume or in milligrams.

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-112, 16-12-208, MCA; NEW, 2022 MAR p. 81, Eff. 1/1/22.

42.39.319   PACKAGING REQUIREMENTS

(1) All packaging of marijuana and marijuana products shall: 

(a) protect the product from contamination and shall not impart any toxic or deleterious substance to the marijuana or marijuana product;

(b) be capable of being resealed if the package contains more than one serving size;

(c) not primarily appeal to children. Packaging that primarily appeals to children includes but is not limited to packaging that:

(i) depicts a child;

(ii) portrays objects, images, celebrities, or cartoon figures that primarily appeal to children or are commonly used to market products to children; or

(iii) otherwise has special attractiveness for children beyond the general attractiveness for adults;

(d) not bear any reasonable resemblance to the trademarked or characteristic packaging of any commercially available product including but not limited to candy, snacks, baked goods, or beverages.

(2) All marijuana and marijuana products provided to customers at the point of sale shall be in exit packaging that:

(a) is child resistant as defined in ARM 42.39.102;

(b) is opaque; and

(c) contains the warnings required by 16-12-215, MCA, in the format required by 16-12-208, MCA. 

(3) Drinkable marijuana products that contain more than one serving per package must include a device or mechanism for measuring a single serving of the product.

(4) Exit packaging of marijuana and marijuana products provided to customers at the point of sale may not contain any other information or design elements than what is allowed under 16-12-208(6)(b)(ii), MCA. 

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-112, 16-12-208, MCA; NEW, 2022 MAR p. 81, Eff. 1/1/22.

42.39.320   PACKAGING AND LABELING APPLICATIONS, FEES AND DEPARTMENT APPROVAL PROCESSES; EXIT PACKAGE APPROVAL; INITIAL REQUIREMENTS APPLICABLE TO ALL LICENSEES

(1) For purposes of this rule, "marijuana product categories" mean any of the marijuana and marijuana products described in ARM 42.39.315 through 42.39.318 that are subject to the packaging and labeling requirements of 16-12-208, MCA.  

(2) For purposes of this rule, a "unique marijuana product package" means a custom package that contains variations in graphic or design elements including logos. For example, boxes used for pre-rolls with a graphic for "Grape Ape" and a different graphic for "Cherry Pie" are unique marijuana product packages.

(3) A unique marijuana product package does not mean a package with variations in language, such as product information or instructions, or a package that depicts flavor variation without an accompanying change in graphic or design, or a different size, shape, or color. For example, mylar bags used for marijuana flower with different colors for indica, sativa, or hybrid used in various sizes are not unique marijuana product packages.

(4) For purposes of this rule "generic package" or "generic packaging" means packaging without any graphic or design elements, including logo, whether preprinted on the package or affixed later with an adhesive, sticker, or by other means.

(5) All applicants, whether as an initial license applicant or existing licensee, must submit an application to the department for approval of the labeling of each marijuana product category intended for sale to customers.

(6) An applicant must submit a separate application for each label - up to a maximum of eight total label applications - based on the applicant's sale of some or all of the following marijuana or marijuana product categories:

(a) adult-use flower;

(b) medical flower;

(c) adult-use ingestible marijuana-infused products;

(d) medical ingestible marijuana-infused products;

(e) adult-use non-ingestible marijuana-infused products;

(f)  medical non-ingestible marijuana-infused products;

(g) adult-use marijuana concentrates and extracts; and

(h) medical marijuana concentrates and extracts.

(7) An applicant will be given the following labeling options for the product categories listed in (6):

(a) selecting and affirming its use of a pre-approved template label available for download from the department, at no cost to the applicant, as provided in (15); or

(b) use of a custom label design and pay the custom label application fee, as provided in (15). 

(8) An applicant that elects to use its custom (i.e., non-department template) label design must submit only one template label for each marijuana product category. 

(9) Except as provided in (10), a new label application is not required when the marijuana facts panel information changes for disclosures such as levels of total potential psychoactive THC, THC, THCa, CBD, or CBDa, date of harvest, strain name, or ingredients.

(10) An applicant that sells marijuana products to registered cardholders with THC levels in excess of the limits set in 16-12-224, MCA, must submit a separate application and label template for each of the marijuana product categories sold. 

(11) All applicants, whether as an initial license applicant or existing licensee, must submit an application to the department for approval for the packaging of each marijuana product category intended for sale to customers. 

(12) An applicant will be given the following packaging options for the product categories listed in (6):

(a) selecting and affirming its use of generic packaging. The applicant shall identify on the application which marijuana or marijuana products will be placed in generic packaging; or

(b) use of custom packaging with graphic or design elements, including logo, whether preprinted on the package or affixed with an adhesive, a sticker, or by other means. In this case, the applicant must provide a picture or accurate, detailed rendering of the packaging. Further, the applicant shall identify on the application which marijuana or marijuana products will be placed in each unique marijuana product package.

(13) All applicants, whether as an initial license applicant or existing licensee, must submit an application to the department for approval for each exit package type it will use. If the applicant intends to use the same exit package type in multiple sizes, it may submit each size under one application.

(a) Exit packaging must comply with ARM 42.39.319(2).

(b) Exit packaging must comply with federal child-resistant packaging standards pursuant to 16-12-208(6), MCA.

(14) All applications and required attachments, such as photographs and renderings shall be submitted electronically to the department via its online portal. 

(15) An applicant must submit the following fees to the department:

(a) no charge ($0.00) for label applications described in (7)(a) or packaging applications in (12)(a);

(b) $25 per label application described in (7)(b) for custom label design;

(c) $10 per package application described in (12)(b); and

(d) $10 per exit package application.

(16) The department shall review each application and shall notify an applicant, in writing, whether the packaging, label, or exit package has been approved or rejected.

(17) Whenever the department returns any application for correction, it shall notify an applicant, in writing, of the deficiencies or issues with the application or submitted materials.

(18) An applicant will receive an invoice for all application fees upon the department's approval of the application(s). The applicant shall pay all invoiced application fees to the department within ten days of receipt. An applicant's failure to pay all invoiced application fees may result in the reversal of application approval and denial of the application.

(19) An applicant whose application is denied under (5) or (11) must reapply.

(20) In order to fully implement the packaging and labeling requirements of the Act, all licensees must submit their packaging and label applications to the department by August 1, 2022. Licensees may continue to use packaging and labeling that is compliant with the former Montana Medical Marijuana Act (Title 50, chapter 46, MCA) during the pendency of the department's approval(s), provided the licensee's applications were submitted by August 1, 2022. 

(21) A licensee that fails to submit applications for approval of packaging and labeling by August 1, 2022 shall be subject to disciplinary proceedings.

(22) A licensee shall be subject to disciplinary proceedings when:

(a) it affirms to the department that it is using a pre-approved department template label but then uses any other label without submitting an application, applicable fees, and receiving department approval; or

(b) it affirms to the department that it is using generic packaging, but then uses any other product packaging, with graphic or design elements, including logo, whether preprinted on the package or affixed later with an adhesive, sticker, or by other means, without submitting an application, applicable fees, and receiving department approval.

(23) All marijuana and marijuana products must be in approved packaging and affixed with approved labeling no later than January 1, 2023. Licensees shall repackage and/or relabel all marijuana and marijuana products on or before January 1, 2023, as necessary, to comply with this provision. 

(24) A licensee must maintain approval letters for all product packaging, labels, and exit packages at the licensed premises and shall make those letters available to department inspectors upon request.

 



History: 16-12-112, MCA; IMP, 16-12-112, 16-12-208, 16-12-215, 16-12-224, MCA; NEW, 2022 MAR p. 924, Eff. 6/11/22.

42.39.401   MARIJUANA MANUFACTURER LICENSES

(1) A marijuana manufacturer license allows a marijuana manufacturer to convert or to compound marijuana into marijuana products. A marijuana manufacturer licensee may buy marijuana and marijuana products from licensed marijuana cultivators and licensed marijuana manufacturers and may sell marijuana products to licensed marijuana dispensaries. 

(2) The department shall begin accepting applications for marijuana manufacturers that are not former medical marijuana licensees, as defined in 16-12-102(14), MCA, on July 1, 2023.

(3) A licensee may continue to operate under their existing marijuana-infused products provider license and may apply for a marijuana manufacturer license at their next renewal date. 

(4) Licensees will elect their tier level at their next renewal date and pay the fee provided in ARM 42.39.102

(5) A marijuana manufacturer licensee that manufactures above its licensure level may be subject to administrative proceedings. In determining whether a marijuana manufacturer licensee has manufactured above its licensure level, the department will determine the average amount of concentrate produced each month over the previous 12 months.

(6) The licensed premises of a former medical marijuana licensee that is located in a red county is not eligible to apply to increase its licensure level until the local government approval process in 16-12-301, MCA, allows for marijuana manufacturing.

(7) A marijuana manufacturer licensee must take all reasonable measures and precautions to ensure the following:

(a) that the placement of equipment and storage of materials allow for the maintenance of sanitary operations for the manufacture of marijuana products;

(b) that all surfaces, including utensils and equipment used for the preparation of marijuana products, shall be cleaned and sanitized as frequently as is necessary to protect against contamination; 

(c) that the water supply is safe and potable; and

(d) that the storage and transport of finished marijuana products shall be under conditions that will protect products against physical, chemical, and microbial contamination.

(8) A marijuana manufacturer licensee must:

(a) use equipment, counters, and surfaces for manufacturing that are food grade, do not react adversely with any solvent being used, reduce the potential for development of microbials, molds, and fungi, and can be easily cleaned;

(b) maintain detailed instructions for making each infused product, concentrate, or extract, which shall be kept confidential by the department; and

(c) conduct necessary safety checks prior to commencing processing.

(9) A marijuana manufacturer licensee that engages in chemical manufacturing must:

(a) use only hydrocarbon-based solvents that are at least 99 percent pure, except when using solvents outlined in (10)(b);

(b) only use nonhydrocarbon-based solvents that are food grade;

(c) use only potable water and ice made from potable water;

(d) use a professional grade closed-loop extraction system designed to recover the solvents;

(e) have equipment used in processing approved for use by the fire official having jurisdiction over the licensed premises;

(f) have an emergency eye-wash station in any room in which chemical manufacturing is occurring; and

(g) have all applicable safety data sheets readily available.

(10) A marijuana manufacturer licensee that engages in chemical manufacturing may use:

(a) a mechanical and/or physical extraction process;

(b) a chemical extraction process using a nonhydrocarbon-based or other solvent, such as water, vegetable glycerin, vegetable oils, animal fats, isopropyl alcohol, or ethanol; or

(c) a chemical extraction process using the solvent carbon dioxide, provided that the process:

(i) does not involve the use of heat over 180 degrees Fahrenheit; and

(ii) uses a professional grade closed-loop carbon dioxide gas extraction system where every vessel is rated to a minimum of six hundred pounds per square inch. 

(11) A marijuana manufacturer licensee that engages in chemical manufacturing may not use:

(a) class 1 solvents according to the Q3 Tables and List Guidance for Industry published by the U.S. Department of Health and Human Services, Food and Drug Administration, Center for Drug Evaluation and Research, Center for Biologics Evaluation and Research;

(b) pressurized, canned fuel intended for use in camp stoves, handheld torch devices, refillable cigarette lighters, and similar products; or

(c) denatured alcohol.

(12) A marijuana manufacturer licensee shall not utilize a branded, commercially manufactured food product (e.g., Chex Mix, Nerds Ropes) as an edible marijuana product except when commercially manufactured food products are used as ingredients in an edible marijuana product in a way that renders them unrecognizable as the commercial food product in the final edible marijuana product; and the licensee does not state or advertise to the consumer that the final edible marijuana product contains the commercially manufactured food product.

(13) A marijuana manufacturer licensee may not infuse any food with marijuana that requires heated, time-temperature control or a hot holding unit to keep it safe for human consumption and may not serve hot or heated foods that promote onsite consumption. 

(14) Any foods that require refrigeration or freezing to keep them safe for human consumption must be stored in a refrigerator or freezer until the time of sale and must be affixed with a label that indicates the product must be kept refrigerated or frozen, as appropriate. 

(15) A marijuana manufacturer licensee may not treat or otherwise alter a marijuana product with any synthetic cannabinoid additive, including Delta-8 tetrahydrocannabinol, that would increase potency, toxicity, or addictive potential. 

(16) A marijuana manufacturer licensee must have current, written standard operating procedures at the licensed premises and available for inspection for the following:

(a) each category and type of marijuana product that it produces;

(b) cleaning all equipment, counters, and surfaces thoroughly;

(c) proper handling and storage of any solvent, gas, or other chemical used in processing or on the licensed premises;

(d) proper disposal of any waste produced during processing; and

(e) training employees on how to use the closed-loop system and handle and store the solvents and gasses safely.

(17) A marijuana manufacturer licensee and an employee of a marijuana manufacturer licensee may transport their marijuana and marijuana products in accordance with 16-12-222(4), MCA, and ARM 42.39.413(4) through (15) but may not transport the marijuana or marijuana products of other licensees without a marijuana transporter license.

 

History: 16-12-112, MCA; IMP, 16-12-204, 16-12-222, MCA; NEW, 2021 MAR p. 1937, Eff. 1/1/22.

42.39.405   MARIJUANA CULTIVATOR LICENSES

(1) A marijuana cultivator license allows a marijuana cultivator to plant, cultivate, grow, dry, package, and label marijuana and sell marijuana to licensed marijuana manufacturers, licensed dispensaries, and to other licensed marijuana cultivators, and to sell marijuana products to licensed dispensaries. Marijuana cultivator licensees may not sell marijuana flower to other marijuana cultivator licensees.

(2) The department shall begin accepting applications for marijuana cultivators that are not former medical marijuana licensees, as defined in 16-12-102(14), MCA, on July 1, 2023.

(3) A licensee may continue to operate under its existing license and may apply for a marijuana cultivator license at its next renewal date.

(4) The licensed premises of a former medical marijuana licensee that is located in a red county is not eligible to apply to increase its licensure level until the local government approval process in 16-12-301, MCA, allows for marijuana cultivation.

(5) A former medical marijuana licensee who engaged in outdoor cultivation before November 3, 2020, may continue to engage in outdoor cultivation but may not expand their existing outdoor cultivation space.

(6) For purposes of determining the appropriate canopy license tier:

(a) an existing outdoor cultivation space counts as a cultivation facility as used in (5) and its square footage counts toward the total allowable square footage under each tier;

(b) a canopy is measured horizontally starting from the outermost point of a plant on the perimeter of a dedicated growing space and continuing around the outside of all plants located within the dedicated growing space;

(c) a marijuana cultivator licensee may designate multiple canopy areas at a cultivation facility, but each canopy area must be separated by a physical boundary such as an interior wall or by at least eight feet of open space.

(7)  A marijuana cultivator licensee that cultivates above its licensure level may be subject to administrative proceedings. 

(8) A marijuana cultivator licensee must create and maintain a manual of written standard operating procedures to produce marijuana. The marijuana cultivator licensee must keep the manual at the licensed premises and make it available for department inspection at all times. The manual must include, at a minimum:

(a) when and how all pesticides or other chemicals are to be applied during the production process;

(b) water usage and wastewater disposal protocols; and

(c) a waste disposal plan.

(9) If a marijuana cultivator licensee makes a material change to the standard operating procedures, it must document the change and revise the written standard operating procedures manual accordingly.

(10) A marijuana cultivator licensee must maintain on the licensed premises:

(a) the material safety data sheet for all pesticides, fertilizers, or other agricultural chemicals used in the production of marijuana at the licensed premises; and

(b) the original label, or a copy, for all pesticides, fertilizers, or other agricultural chemicals used in the production of marijuana at the licensed premises.

(11) A marijuana cultivator licensee must maintain a log of all pesticides, fertilizers, or other agricultural chemicals used in the production of marijuana in the seed-to-sale tracking system.

(12) A marijuana cultivator licensee may not cultivate hemp at a licensed premises.

(13) A marijuana cultivator licensee and an employee of a marijuana cultivator licensee may transport their own marijuana and marijuana products in accordance with 16-12-222(4), MCA, and ARM 42.39.413(4) through (15) but may not transport the marijuana or marijuana products of other licensees without a marijuana transporter license.

 

History: 16-12-112, MCA; IMP, 16-12-112, 16-12-203, 16-12-204, 16-12-210, 16-12-222, 16-12-223, MCA; NEW, 2021 MAR p. 1937, Eff. 1/1/22.

42.39.409   MARIJUANA DISPENSARY LICENSES

(1) A marijuana dispensary license allows a marijuana dispensary to sell marijuana and marijuana products to registered cardholders and to consumers 21 years of age and older and to purchase marijuana and marijuana products from licensed cultivators, licensed manufacturers, and other licensed dispensaries.

(2) The department shall begin accepting applications for marijuana dispensaries from applicants that are not former medical marijuana licensees as defined in 16-12-102, MCA, on July 1, 2023.

(3) A former medical marijuana licensee with a dispensary located in a green county may continue to sell to registered cardholders and may begin selling to adult use consumers on January 1, 2022, under its existing license and may apply for a marijuana dispensary license at its next renewal date.

(4) A former medical marijuana licensee with a dispensary located in a red county may only sell to registered cardholders under its existing license until the local government approval process in 16-12-301, MCA, allows for adult use dispensaries.

(5) The fee for a marijuana dispensary license is per licensed premises and is the same regardless of whether a marijuana dispensary licensee sells only to registered cardholders or to registered cardholders and consumers. 

(6) A marijuana dispensary licensee and its employees must not sell marijuana or marijuana products to any person obviously or apparently under the influence of drugs or alcohol.

(7) A marijuana dispensary licensee and its employees may sell marijuana paraphernalia to registered cardholders 18 years of age and older and to consumers 21 years of age and older.

(8) Marijuana dispensary customers must not handle marijuana or marijuana products outside of its packaging prior to purchase. Customers may return marijuana or marijuana products but the dispensary must destroy those products and the destruction must be entered into the seed-to-sale tracking system. Nothing in this rule prevents a marijuana dispensary licensee from refusing product returns. 

(9) A marijuana dispensary licensee and its employees are prohibited from engaging in the unlicensed practice of medicine. A marijuana dispensary licensee and its employees must not:

(a) offer or undertake to diagnose or cure any human or animal disease, ailment, injury, infirmity, deformity, pain, or other condition, physical or mental, by use of marijuana or marijuana products or any other means or instrumentality; or

(b) recommend or suggest modification or elimination of any course of treatment that does not involve the medical use of marijuana or marijuana products. 

(10) All sales of marijuana and marijuana products must be recorded in real time in the seed-to-sale tracking system.

(11) A marijuana dispensary licensee and its employees must refuse to sell marijuana or marijuana products at the medical marijuana tax rate to registered cardholders who do not possess and present a valid registry identification card or temporary registry identification card at the time of sale. 

(12) A marijuana dispensary licensee and its employees must refuse to sell marijuana or marijuana products to any consumer unless the consumer possesses and presents one of the following forms of valid and unexpired photo identification showing that the consumer is 21 years of age or older:

(a) a driver's license or temporary driver's permit issued by Montana or any other state or territory of the United States;

(b) an identification card issued by Montana or any other state or territory of the United States for the purpose of proof of age of the holder of the card;

(c) United States military identification card;

(d) a Merchant Mariner Credential or other similar document issued by the United States Coast Guard;

(e) a passport issued by, or recognized by, the United States Government or a permanent resident card issued by the United States Citizenship and Immigration Services of the Department of Homeland Security; or

(f) a tribal identification card issued by a tribal government which requires proof of the age of the holder of the card for issuance.

(13) The prohibition in 16-12-208, MCA, on marijuana dispensaries selling hemp is limited to hemp flower and hemp plants.

(14) A marijuana dispensary licensee and its employees cannot sell marijuana or marijuana products in excess of the THC levels provided for in 16-12-224, MCA, except to registered cardholders. 

(15) A marijuana dispensary licensee and an employee of a marijuana dispensary licensee may transport marijuana and marijuana products in accordance with 16-12-222(4), MCA, and ARM 42.39.413(4) through (15) but may not transport marijuana or marijuana products of other licensees without a marijuana transporter license.

(16) A marijuana dispensary licensee, its employees, or a commercial third party must not deliver marijuana or marijuana products to consumers.

(17) A marijuana dispensary licensee may continue to sell marijuana and marijuana products that have been tested under the medical marijuana program statutes and administrative rules.  

 

History: 16-12-112, 16-12-222, MCA; IMP, 16-12-112, 16-12-201, 16-12-222, 16-12-224, MCA; NEW, 2021 MAR p. 1937, Eff. 1/1/22.

42.39.413   TRANSPORTATION OF MARIJUANA AND MARIJUANA PRODUCTS; MARIJUANA TRANSPORTER LICENSES

(1) A marijuana transporter license allows a marijuana transporter to physically distribute and deliver marijuana and marijuana products to a licensed premises and to registered cardholders within the state of Montana that present a valid registry identification card. 

(2) The department shall begin accepting applications for marijuana transporter licenses on January 1, 2022. 

(3) Applicants for a marijuana transporter license must submit to the department proof of a valid Montana driver's license.

(4) All distribution and delivery of marijuana and marijuana products must:

(a) occur in a motor vehicle as defined by ARM 42.39.102;

(b) depart from a licensed premises and be delivered to a licensed premises or to a registered cardholder's address, in which case the registered cardholder must provide a valid registry identification card to the transporter;

(c) be accompanied by a transport manifest derived from the seed-to-sale tracking system that contains the following information:

(i) the physical address and license number of the departure location;

(ii) the physical address and license number or registered cardholder number of the arrival location;

(iii) date and time of departure;

(iv) date and time of arrival;

(v) transporter's driver's license number, vehicle make, model, and license plate number;

(vi) name and signature of each licensee or its employee accompanying the transport; and

(vii) a complete description of the marijuana or marijuana product being transported. The description must include:

(A) the name and type of product being transported;

(B) amount of product being transported; and

(C) RFID tracking tag numbers of the product being transported;

(d) be accomplished within 48 hours from the date and time of departure.

(5) The transport manifest may not be voided or changed after leaving the departure location.

(6) A copy of the transport manifest must be given to each licensed premises receiving the inventory described in the transport manifest.

(7) A receiving licensed premises is prohibited from receiving any marijuana or marijuana products without a valid transport manifest.

(8) A receiving licensed premises is responsible for ensuring that the marijuana or marijuana products match the description in the transport manifest. A receiving licensed premises must immediately record receipt of the transported inventory.

(9) The receiving licensed premises must document any differences between the items described for transport in the transport manifest versus what was actually received and immediately report discrepancies to the department.

(10) While in transport, all marijuana and marijuana products must be shielded from public view and secured in a locked storage compartment inside the body of the transport vehicle.

(11) All vehicles used to transport marijuana or marijuana products: 

(a) shall be considered a licensed premises for purposes of inspection by the department. Transport vehicles may be stopped and inspected by the department at any licensed premises or during transport; 

(b)  shall be lockable and equipped with a security alarm system;

(c) shall not leave the state of Montana while any amount of marijuana or marijuana product is in the motor vehicle; and

(d) shall not have any external markings, words, or symbols that indicate the vehicle is used for the transport of marijuana or marijuana products or that it is owned or leased by a marijuana business.

(12) A marijuana transporter licensee or employee of a marijuana transporter licensee must not sell marijuana or marijuana products; or transport marijuana or marijuana products directly to consumers.

(13) A marijuana transport licensee must contact the department within 24 hours if a vehicle transporting marijuana items is involved in an accident that involves product loss.

(14) Copies of the transport manifest and delivery receipts must be presented to law enforcement officers or authorized department employees, if requested.

(15) If a marijuana transporter licensee maintains a licensed premises to temporarily store marijuana or marijuana products, the licensee must have a marijuana storage facility endorsement for each storage facility as provided in ARM 42.39.420

 

History: 16-12-112, 16-12-222, MCA; IMP, 16-12-112, 16-12-222, MCA; NEW, 2021 MAR p. 1937, Eff. 1/1/22; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.415   COMBINED USE LICENSES

(1) A combined use license allows a federally recognized tribe located in the state or a business entity that is majority-owned by a federally recognized tribe located in the state to maintain a marijuana cultivation facility and marijuana dispensary on the same licensed premises.  

(2) The department shall begin accepting applications for combined use licenses on January 1, 2022.

(3) A combined use licensee is subject to the marijuana laws, including 16-12-223, MCA.

 

History: 16-12-112, 16-12-225, MCA; IMP, 16-12-225, MCA; NEW, 2021 MAR p. 1937, Eff. 1/1/22.

42.39.417   MARIJUANA TESTING LABORATORY LICENSES

(1) A marijuana testing laboratory license allows a marijuana testing laboratory to provide testing of representative samples of marijuana and marijuana products and to provide information about the chemical composition and potency of a sample, as well as the presence of molds, pesticides, or other contaminants. 

(2) A current marijuana testing laboratory licensee may continue to operate under its existing license and shall pay the annual license renewal fee provided for in ARM 42.39.104 at its next renewal date.

(3) The department shall begin accepting applications for new marijuana testing laboratories on January 1, 2022.

(4) Applicants for marijuana testing laboratories must receive an endorsement from the Department of Public Health and Human Services' state testing laboratory before applying for licensure with the department. The department will accept the state laboratory's standard form of approval or endorsement for the applicant of a marijuana testing laboratory license to meet this requirement.

(5) Marijuana testing laboratories may transport samples of marijuana and marijuana products for testing in accordance with 16-12-222(4), MCA, and ARM 42.39.413(4) through (15).

(6) A marijuana testing laboratory licensee must provide and maintain, at its own expense, analytical testing laboratory professional liability insurance with an aggregate limit of one million dollars prior to the issuance of a license.

(7) A marijuana testing laboratory licensee must obtain and maintain a $25,000 surety bond which names the department as loss payee in the event the laboratory licensee fails to adhere to the security plan approved by the department, or it otherwise operates the facility in a manner that allows for, or results in theft, loss, or diversion of marijuana items. A copy of the bond must be submitted to the department as a part of the license application process.

 

History: 16-12-112, 16-12-202, MCA; IMP, 16-12-112, 16-12-202, 16-12-222, MCA; NEW, 2021 MAR p. 1937, Eff. 1/1/22.

42.39.420   MARIJUANA STORAGE FACILITY ENDORSEMENT

(1) A marijuana transporter or a marijuana testing laboratory shall obtain a marijuana storage facility endorsement for any overnight storage of marijuana or marijuana products. A marijuana storage facility endorsement allows a marijuana transporter or marijuana testing laboratory to maintain a separate, off-site storage facility. 

(2) A marijuana storage facility may only be used for the temporary storage of marijuana or marijuana products, not to exceed 48 hours. A storage facility may not be used to grow, process, test, manufacture, consume, or sell marijuana or marijuana products.

(3) A marijuana transporter licensee or marijuana testing laboratory with a marijuana storage facility endorsement may not share its storage facility with any other marijuana business.

(4) A marijuana storage facility may only be located in a jurisdiction that allows for the operation of a marijuana business pursuant to 16-12-301, MCA. 

 

History: 16-12-112, 16-12-222, MCA; IMP, 16-12-202, 16-12-222, MCA; NEW, 2021 MAR p. 1937, Eff. 1/1/22.

42.39.501   INSPECTIONS

(1) Subject to the authority and restrictions under 16-12-210, MCA, the department may conduct inspections to determine compliance with the marijuana laws. 

(2) The department may conduct the following types of inspections:

(a) initial application;

(b) renewal application;

(c) licensure level increase;

(d) complaint;

(e) deficiency follow-up; and

(f) suspension expiration.

(3) A licensee and its employees must cooperate with the department during an inspection.  A licensee must allow inspectors full access to the licensed premises, provide requested copies of documents or videos, and allow inspectors to complete an inspection. Failure on the part of a licensee to cooperate could result in denial, reprimand, suspension, or revocation of a license. 

(4) If a department inspection reveals that an applicant or licensee is not in compliance with the marijuana laws, the department shall:

(a) issue a deficiency report pursuant to ARM 42.39.502 to notify the applicant or licensee of the specific deficiencies or errors; or

(b) issue a notice of proposed department action.

 

History: 16-12-112, 16-12-224, MCA; IMP, 16-12-101, 16-12-202, 16-12-203, 16-12-204, 16-12-208, 16-12-210, 16-12-223, 16-12-224, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22.

42.39.502   DEFICIENCY REPORTS

(1) The department may issue a deficiency report to a licensee whenever a department inspection or compliance audit reveals a licensee is in violation of the marijuana laws. The purpose of the deficiency report is to afford licensees with an opportunity to cure deficiencies and avoid administrative proceedings before the department's Office of Dispute Resolution. 

(2) A deficiency report shall, at a minimum:

(a) identify the date of the inspection;

(b) identify the name of the inspector;

(c) identify the deficiencies discovered during the inspection; and

(d) cite the specific statute, rule, or local ordinance that the deficiency violates.

(3) A licensee shall have ten days from the date of the deficiency report to cure any deficiencies.

(a)  If a licensee can show proof of having cured the deficiencies through photographs, document submissions, or through other correspondence, the licensee shall submit the proof to the department. 

(b) If an inspection is required to determine whether a licensee has cured deficiencies, the licensee shall contact the department to schedule a follow-up inspection within ten days from the date of the deficiency report. 

(4) If a licensee cures the identified deficiencies, the department will send the licensee a deficiency resolution letter which informs the licensee that the department will close out the deficiency and take no further action on the deficiency report. 

(5) If a licensee fails to respond to a deficiency report within ten days, the department may issue a notice of proposed department action. Failing to respond to a deficiency report within ten days may be cited as a separate violation subject to the imposition of a civil penalty.

(6) Nothing in this rule prevents the department from proceeding immediately to administrative proceedings without issuing a deficiency report. 

 

History: 16-12-112, MCA; IMP, 16-12-101, 16-12-210, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.503   VIOLATIONS, PROCEDURES, AGGRAVATING AND MITIGATING CIRCUMSTANCES

(1) Evidence of violation by a licensee, a licensee's agent, or an employee of a licensee of any of the provisions of the marijuana laws is sufficient grounds for a warning, reprimand, suspension, revocation, and/or the assessment of a civil penalty in accordance with 16-12-109, MCA. 

(2) Whenever the department seeks to impose a reprimand, suspension, revocation, and/or the assessment of a civil penalty in accordance with 16-12-109, MCA, the department shall serve a licensee with a notice of proposed department action. The notice of proposed department action shall, at a minimum:

(a) state the allegations;

(b) identify dates or approximate dates of the alleged incident;

(c)  cite the specific statute, rule, or local ordinance that the alleged incident violates;

(d) list each alleged violation as a separate count;

(e) identify the penalty that the department seeks to impose; and

(f) provide the licensee with appeal rights, including the right to request an administrative hearing before the department's Office of Dispute Resolution. 

(3) Notwithstanding the provisions of (2)(f), whenever the department proposes revocation of a marijuana testing laboratory license, that proposed department action is subject to judicial review in accordance with 16-12-202(10), MCA.

(4) Aggravating circumstances may result in the imposition of maximum monetary penalties, maximum suspension time, or revocation. In addition to those identified in 16-12-109, MCA, aggravating circumstances include, but are not limited to:

(a) no effort on the part of a licensee to prevent a violation from occurring;

(b) a licensee's failure to report a violation at the time of renewal;

(c) involvement of a licensee in the violation;

(d) repeated violations for sales to underage or intoxicated persons;

(e) providing marijuana or marijuana products to a person under 18 years of age that is not a registered cardholder;

(f) lack of cooperation by a licensee in an investigation;

(g) a violation's significant negative effect on the health and welfare of the community in which a licensee operates; and

(h) prior violations of the marijuana laws.

(5) Mitigating circumstances may result in the adjustment of monetary penalties, amount of suspension time, or in a determination not to revoke. In addition to those identified in 16-12-109, MCA, mitigating circumstances include, but are not limited to:

(a) the admissions of a licensee regarding violations of the marijuana laws prior to the department commencing investigation of the licensee;

(b) the existence of written policies that govern the conduct of a licensee's employees; or

(c) three or more years without a violation of the marijuana laws.

(6) Ignorance of the law is not considered a mitigating circumstance. 

(7) In the event a reprimand is issued:

(a) the incident shall be considered a prior violation; and

(b) the department shall assess a civil penalty, described in ARM 42.39.507

 

History: 16-12-112, MCA; IMP, 16-12-109, 16-12-112, 16-12-210, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22.

42.39.504   SUSPENSION AND REVOCATION OF A LICENSE

(1) The department may suspend a license for any period of time not to exceed one year. 

(2) The department shall revoke the license or licenses of a licensee that commits the offenses stated in 16-12-109(5), MCA, and for a marijuana testing laboratory, the offenses stated in 16-12-202(9), MCA. The department may revoke the license or licenses of a licensee that commits other violations of the marijuana laws.

(3) When determining the length of suspension or whether to revoke a license or licenses, the department shall consider aggravating and mitigating circumstances and the severity of the violation or violations as set forth in ARM 42.39.503.

(4) A license suspension shall be effective at each licensed premises that is the subject of the violation or violations resulting in the suspension. 

(5) During a suspension, a licensee and its employees may not operate the licensed premises that is subject to the suspension. The suspended licensee may not sell, deliver, service, remove, transport, or receive marijuana or marijuana products or otherwise engage in business from the licensed premises. The department may negotiate terms with a licensee to prevent the potential loss of marijuana or marijuana products during a suspension. 

(6) During a suspension, a licensee and its employees must obey the marijuana laws, including compliance with the tax and reporting laws provided in 15-64-102 through 15-64-106, MCA.

(7) A suspended licensed premises remains subject to inspection under 16-12-210, MCA.

(8) If a license is due for renewal during a suspension, a licensee must submit a renewal application including payment of applicable fees to avoid lapse of the license. The department shall not approve a renewal application with respect to the suspended licensed premises until the suspension has expired. 

(9) If the department receives an application for renewal during a suspension, the time allowances in 16-12-104, MCA, will not begin with respect to the suspended licensed premises until the suspension expires. 

(10) A suspension does not alter a license's renewal date. 

(11) The department shall inspect all suspended licensed premises before a licensee can resume operations. 

(12) When a license has been revoked, the department shall not accept an application from the person or persons qualified for licensure pursuant to 16-12-109(6), MCA, for three years from the date of revocation. After the three-year moratorium, an application will only be accepted if the applicant demonstrates to the department that sufficient steps have been taken to prevent future violations of the marijuana laws. 

 

History: 16-12-112, 16-12-210, MCA; IMP, 16-12-210, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22.

42.39.505   SERVICE OF NOTICES

(1) A notice of proposed adverse action issued by the department pursuant to the marijuana laws shall be served upon the licensee by sending a copy of the notice to the licensee by electronic means to the email address on file with the department. 

(2) Service shall be considered complete upon transmission but is not effective if the department learns that the notice did not reach the licensee, in which case the department will proceed with service of notice provided in (3).

(3) If a licensee has previously opted out of receiving department communications by electronic means, the notice shall be served by sending a copy of the notice to the licensee by certified mail to the mailing address on file with the department. Whenever the department serves a notice via certified mail:

(a) service shall be considered complete three days after mailing the notice;

(b) service shall not be considered incomplete because of refusal to accept delivery of the notice.

(4) A licensee must respond to the department in writing within 20 days of service of the notice of proposed adverse action. Failure to respond will result in enforcement of the administration action proposed in the notice.

 

History: 16-12-112, MCA; IMP, 2-4-601, 16-12-104, 16-12-105, 16-12-106, 16-12-107, 16-12-108, 16-12-109, 16-12-112, 16-12-202, 16-12-203, 16-12-206, 16-12-210, 16-12-221, 16-12-223, 16-12-503, 16-12-515, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22; AMD, 2022 MAR p. 1712, Eff. 8/27/22.

42.39.506   SUSPENSION OR REVOCATION OF WORKER PERMITS

(1) Whenever the department seeks to suspend or revoke the permit of any marijuana worker, the department shall serve the marijuana worker with a notice of proposed department action, as provided in ARM 42.39.503. The notice of proposed department action shall, at a minimum: 

(a) identify dates or approximate dates of the alleged incident;

(b) cite the specific statute, rule, or local ordinance that the alleged incident violates;

(c) list each alleged violation as a separate count;

(d) identify which penalty that the department seeks to impose; and

(e) provide the marijuana worker with appeal rights, including the right to request an administrative hearing before the department's Office of Dispute Resolution. 

(2) The department shall revoke a marijuana worker permit if the worker knowingly sells, delivers, transfers, or makes available marijuana or a marijuana product to a person under 21 years of age. This section does not apply to sales, deliveries, or transfers to registered cardholders. 

 

History: 16-12-112, MCA; IMP, 16-12-109, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22.

42.39.507   CIVIL PENALTIES

(1) When determining the amount of civil penalty imposed pursuant to 16-12-109, MCA, and rules of the department, the department shall consider aggravating and mitigating circumstances and the severity of the violation or violations as set forth in ARM 42.39.503 

(2) Upon reprimand or suspension of a license, the department shall also impose a civil penalty of not less than $100 and not more than $3,000 per violation.

(3) If a civil penalty is imposed in conjunction with a suspension, the licensee may not resume operations until it has paid the penalty in full.

(4) Failure to pay a civil penalty shall be considered a violation of department rule and could subject the licensee to further administrative proceedings. 

 

History: 16-12-112, MCA; IMP, 16-12-109, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22.

42.39.508   NOTICE POSTING PROCEDURE UPON REVOCATION OR SUSPENSION OF LICENSE

(1) When any marijuana business license is suspended or revoked by the department, the department shall provide a written notice to the licensee and require the licensee to post the notice on the inside of the licensed premises so that it can be seen from the outside.  The notice shall state, for the benefit of the public, that the license has been suspended or revoked. The notice must identify the name of the licensee, the reason for the suspension or revocation, and the period of suspension. The suspension or revocation notice must be dated and signed. In the case of a license suspension, the notice must be posted at all times during the suspension. In the case of a revocation, the notice must be posted on the licensed premises for ten days.  

(2) If a notice is removed or caused to be removed by a licensee or its employee or agent during a suspension, the license shall be subject to revocation. A licensee or its employees may not place or permit the placement of any statement on the licensed premises indicating that the premises have been closed for any reason other than what is stated on the notice. 

(3) The license or licenses suspended will be held by the department during the period of suspension.

 

History: 16-12-112, MCA; IMP, 16-12-109, MCA; NEW, 2021 MAR p. 1964, Eff. 1/1/22.