Commissioners open up recreational marijuana discussion

County commissioners indicated last week they will honor voters’ wishes for legalized recreational marijuana sales locally, but seek to keep the industry on a short leash.

“It’s been passed by the citizens of Montana and we are obligated to deal with that,” said County Commissioner Jerry Bennett (D-2).

Voters in Lincoln County joined 25 other counties in approving I-90, a ballot initiative legalizing recreational marijuana in Montana in 2020. Those counties that saw voters reject the measure remain dry — as opposed to “green” — for the time being, but can put the question back before voters in the future.

While recreational cannabis sales went into effect Jan. 1, retail opportunities were limited to existing medical marijuana dispensaries. Newcomers must wait 18 months before joining the industry.

Even so, officials in Libby and Troy, eyeing potential tax revenue and job growth, are moving quickly ahead with municipal rules for the market. In the county seat, for example, city councilors hope to have a letter off to commissioners by early February asking them to put an additional 3 percent tax on sales before voters.

Bennett, who emphasized that he was speaking for himself, preferred to see a licensing structure for cannabis retailers akin to county all beverage licenses, which comes with a quota system. He pointed to Missoula, which he said had 62 marijuana distributors operating in the city, as an outcome to avoid in Lincoln County. A KPAX report in November put the number of cannabis related businesses in the city at 70.

“We don’t want to get overrun,” he said. “If you really do your research, it can create a huge problem.”

His proposed system would require a “nominal fee” of prospective retailers, but likely would omit inspections. The licenses mostly would allow for local officials to keep track of who was operating in the county, he said.

Bennett also expressed concerns about recreational marijuana sales leading to the creation of a black market of sorts, which could spawn other criminal enterprise, like money laundering.

“The state has put some really heavy regulations and costs to this industry, which is going to control some of that, but I still think as a county we’re looking at things locally we need to keep our eyes on it and manage it to the best of our abilities,” he said.

County Commissioner Brent Teske pointed out that the board could borrow from other jurisdictions’ plans for regulating the industry.

“It’s not like we have to reinvent the wheel here,” he said. “There are other counties dealing with it. … We should be able to put together something satisfactory for the county without having to go down that road of drafting, reinventing and legally testing everything.”

Barbie Turner, CEO of Alternative ReLeaf, which has a location just outside of Libby city limits, told commissioners that she supported licensing. Those already in the industry were well versed on regulatory oversight, she said.

“It’s Lincoln County so you will hear a lot of naysayers about that, but those of us on the forefront [are] used to scrutiny and welcome it,” Turner said.

County Commissioner Josh Letcher (D-3) saw immediate benefits to cataloging the county’s cannabis-related businesses. He reported fielding calls from constituents wanting to report potential illegal marijuana-related activity.

“If we had something local, even the neighbors can look it up and see if it’s legitimate or not legitimate,” he said.

Bennett noted that the legislation setting up rules for recreational marijuana limited sales to existing dispensaries for the first 18 months. That should give the board of commissioners time to carefully consider the implications of legalization, he said.

Turner, though, pointed out that the law allowed dispensaries outside of Lincoln County but within Montana to set up shop in the area.

“Current existing licensees from anywhere in the state can move about the state as they wish,” she said.

In response, Bennett reiterated that he was considering drafting a resolution aimed at preventing the proliferation of dispensaries in the short term. He said he looked forward to working with the county’s homegrown dispensaries to craft local rules.

Turner told Bennett she welcomed the collaboration as well. She has repeatedly championed the industry as potentially bringing jobs to the region and did so again before the commissioners.

“I think it’s really important to draft legislation that takes care of local businesses,” she said. “Currently, we have 18 employees. We have made sure we have kept cultivation and manufacturing right here in Libby. That was all strategic on our part to make sure those jobs are created here and we can create our own industry that can do wholesale outside of Lincoln County.”