Montana Governor Greg Gianforte has vetoed House Bill 952, which would have allowed tribal nations to negotiate their own cannabis regulations. The veto, issued on June 19, 2023, was based on the governor’s view that the bill was “unnecessary and duplicative.”
House Bill 952 aimed to remove restrictions imposed by a previous law, HB 701, enacted in 2021. Under HB 701, tribal cannabis operations are limited to one location of no more than 1,000 square feet and must be at least 150 miles from reservation boundaries. The new proposal would have enabled tribes to establish tailored regulatory terms in collaboration with the state, similar to cannabis compacts in Washington state.
In his veto letter dated June 20, Gianforte cited existing authority under the State-Tribal Cooperative Agreements Act as a reason for his decision. He expressed concerns that the new bill could undermine tribal sovereignty and the relationship between the state and tribal nations. He argued that creating a new statutory process for negotiations could limit flexibility and introduce bureaucratic challenges.
The bill was sponsored by Representative Frank Smith (D), a veteran member of the Montana American Indian Caucus. Smith, who is retiring after this legislative session, emphasized the need for clarity in negotiations between tribes and the state. He noted that several tribes were eager to move forward with cannabis manufacturing, processing, testing, and distribution. According to Patrick Yawakie, co-founder of Red Medicine LLC and a supporter of HB 952, the bill would have helped tribes comply with state regulations while also allowing them to control access to cannabis.
Governor Gianforte has issued a total of 42 vetoes this session, with 10 pending an override vote. The legislature, having adjourned, is conducting the veto-override vote by mail. A two-thirds majority is required for an override, and among the pending vetoes is a bill regarding the allocation of cannabis tax revenue.
Montana’s adult-use cannabis market began in 2022, but it is characterized by a division between “green” counties, which voted in favor of legalization, and “red” counties, which opposed it. In red counties, cannabis sales remain banned unless the county opts in.
Gianforte’s vetoes have largely focused on budget-related issues, aimed at reducing unnecessary spending. He stated that the budget presented by the legislature was not fiscally responsible and emphasized the need to prioritize essential expenditures.
English 
Spanish 
German 
Czech