Cannabis Companies in Montana Cannot Sell Hemp-Based Products

Under a provision in Montana’s adult-use cannabis rules, licensed cannabis companies are not allowed to grow, process, or sell hemp products, which effectively relegates the retail sales of hemp-derived CBD products to gas stations, corner markets, and grocery stores.

Full story after the jump.

Regulators and industry insiders in Montana were surprised to find under the state’s new adult-use cannabis framework that adult-use licensees are prohibited from growing or processing hemp, or selling any hemp-derived products, including CBD, the Montana Free Press reports. As a result, any products containing hemp-derived CBD will now only be available in gas stations or other non-adult use retail cannabis locations, according to the report.

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

Although CBD derived from hemp is prohibited, CBD itself is not banned as long as it is extracted from cannabis plants with THC concentrations greater than 0.3%. Cannabis plants with less than 0.3% THC are considered hemp under the Federal 2018 Farm Bill. Dispensaries have until January 1, 2022, to sell their CBD stash before the ban goes into effect, the report says.

“It’s idiotic. It’s denying consumers access to safe consumption.” Tessa Rose, an herbalist, via the Free Press

Montana legalized adult cannabis use last year and the Montana Legislature would pass the bill to set up a regulatory framework for the new industry earlier this year. The state has made progress setting up the system despite a lawsuit, later withdrawn, by an anti-cannabis activist to overturn the adult-use cannabis initiative.

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