Montana would restrict intoxicating product sales without state authorization

People would need state authorization and regulatory oversight to prepare, distribute, sell, or offer covered products for sale. Covered products are substances intended for human consumption that affect the mind, resemble controlled substances in structure or effect, or contain certain compounds designed to affect the mind. Exceptions cover FDA-approved drugs, prescription medicines dispensed by licensed pharmacies, and dietary supplements that comply with federal law. Other exceptions cover alcohol regulated under Title 16, marijuana products regulated under Title 16, chapter 12, tobacco and nicotine products, pure caffeine products, and substances listed under Montana controlled-substance law. The prohibition would take effect July 1, 2027, if enacted.

The Department of Revenue would enforce the restrictions through orders to stop violations and escalating penalties. The enforcement section prohibits knowingly preparing, distributing, selling, or offering covered products without state authorization or oversight. A first violation would require an order by certified letter to stop the violation. A second violation would require a civil fine of up to $1,000. For a third or later violation, the department would notify the appropriate government entity to suspend business licenses for six months, impose a civil fine of up to $5,000, or both. These enforcement provisions would take effect July 1, 2027, if enacted.

The Department of Revenue would set product rules and testing standards and report on enforcement. The department would work with state health officials, the Board of Pharmacy, and the Department of Justice. Rules would identify covered products, set levels that count as intoxicating, and identify compounds designed to avoid regulation. The department would report every two years to two legislative committees and publish a report to lawmakers about substances reviewed, enforcement, and market trends. The rulemaking and reporting duties would take effect on passage and approval.