1. (1)

   1. (a) Subject to subsections (1)(b) and (3), the department shall issue a license to or renew a license for the person who is named as a provider or marijuana-infused products provider in a registered cardholder's approved application if the person submits to the department:

      1. (i) the person's name, date of birth, and street address on a form prescribed by the department;
      2. (ii) proof that the person is a Montana resident;
      3. (iii) fingerprints to facilitate a fingerprint and background check by the department of justice and the federal bureau of investigation upon initial licensure and every 3 years after that;
      4. (iv) a written agreement signed by the registered cardholder that indicates whether the person will act as the cardholder's provider or marijuana-infused products provider;
      5. (v) a statement, on a form prescribed by the department, that the person will not divert to any other person the marijuana that the person cultivates or the marijuana-infused products that the person manufactures for a registered cardholder;
      6. (vi) the street address of the location at which marijuana, marijuana concentrates, or marijuana-infused products will be cultivated or manufactured; and
      7. (vii) a fee as determined by the department to cover the costs of required background checks and associated administrative costs of processing the license.
   2. (b) If the person to be licensed consists of more than one individual, the names of all individuals must be submitted along with the fingerprints and date of birth of each.
2. (2) The department shall conduct a name-based background check for license renewal in the years that an applicant is not required to submit fingerprints for a fingerprint and background check.

3. (3) The department may not license a person under this section if the person or an individual with a financial interest in the person:

   1. (a) has a felony conviction or a conviction for a drug offense;
   2. (b) is in the custody of or under the supervision of the department of corrections or a youth court;
   3. (c) has been convicted of a violation under 50-46-331;

   4. (d) has failed to:

      1. (i) pay any taxes, interest, penalties, or judgments due to a government agency;
      2. (ii) stay out of default on a government-issued student loan;
      3. (iii) pay child support; or
      4. (iv) remedy an outstanding delinquency for child support or for taxes or judgments owed to a government agency;
   5. (e) is a registered cardholder who has designated a provider or marijuana-infused products provider in the individual's application for a card issued under 50-46-307;

   6. (f)

      1. (i) before July 1, 2021, has resided in Montana for fewer than 3 years except if the provider or marijuana-infused products provider was named by a registered cardholder by June 30, 2017; and
      2. (ii) on or after July 1, 2021, has resided in Montana for less than 1 year; or
   7. (g) is under 18 years of age.
4. (4) Marijuana for use pursuant to this part must be cultivated and manufactured in Montana.
5. (5) A provider or marijuana-infused products provider may not use marijuana unless the person is also a registered cardholder.

6. (6) Except as provided in 50-46-326(1)(b), a provider or marijuana-infused products provider shall:

   1. (a) prior to selling marijuana or marijuana-infused products, submit samples to testing laboratories pursuant to 50-46-311, 50-46-326, and related administrative rules;
   2. (b) allow the department to collect samples of marijuana or marijuana-infused products during inspections of registered premises for testing as provided by the department by rule;
   3. (c) participate as required by the department by rule in a seed-to-sale tracking system established by the department pursuant to 50-46-304; and
   4. (d) obtain the license provided for in 80-7-106 from the department of agriculture if the provider or marijuana-infused products provider sells live plants as part of a sale of the provider's business. A provider or marijuana-infused products provider required to obtain a nursery license is subject to the inspection requirements of 80-7-108. The department of agriculture and its employees are subject to the confidentiality requirements of 50-46-332.

7. (7)

   1. (a) A person licensed under this section may cultivate marijuana and manufacture marijuana-infused products for use by a registered cardholder only at one of the following locations:

      1. (i) a property that is owned by the provider or marijuana-infused products provider;
      2. (ii) with written permission of the property owner, a property that is rented or leased by the provider or marijuana-infused products provider; or
      3. (iii) a property owned, leased, or rented by the registered cardholder pursuant to the provisions of 50-45-307.

   2. (b)

      1. (i) No portion of the property used for cultivation of marijuana or manufacture of marijuana-infused products or marijuana concentrate may be shared with or rented or leased to another provider, marijuana-infused products provider, testing laboratory, or registered cardholder.
      2. (ii) No portion of a registered premises used to manufacture a marijuana-infused product or marijuana concentrate may be shared with, rented, or leased to another provider, marijuana-infused products provider, testing laboratory, or registered cardholder.

8. (8) A licensed provider or marijuana-infused products provider may:

   1. (a) in accordance with rules adopted by the department:

      1. (i) operate dispensaries; and
      2. (ii) engage in chemical manufacturing;
   2. (b) employ employees to cultivate marijuana, manufacture marijuana concentrates and marijuana-infused products, and dispense and transport marijuana and marijuana-infused products;
   3. (c) provide a small amount of marijuana, marijuana concentrate, or marijuana-infused products cultivated or manufactured on the registered premises to a licensed testing laboratory or the department of agriculture; and
   4. (d) sell the provider's business, including live plants.

9. (9) A provider or marijuana-infused products provider:

   1. (a) may sell only marijuana the provider has cultivated or marijuana products derived from marijuana the provider has cultivated;
   2. (b) may not sell marijuana or marijuana-infused products to another provider for subsequent resale to another provider or cardholder;
   3. (c) may not contract or otherwise arrange for another party to process the provider's or marijuana-infused products provider's marijuana into marijuana-infused products or marijuana concentrates; and
   4. (d) may not open a dispensary before obtaining the required license and paying the fee required in 50-46-347(5) or before the department has completed the inspection required under this part.

History: En. Sec. 5, Ch. 419, L. 2011; amd. Sec. 7, I.M. No. 182, approved Nov. 8, 2016; amd. Sec. 5, Ch. 408, L. 2017; amd. Secs. 10, 11, Ch. 292, L. 2019.