50-46-344. Rulemaking authority -- fees. (1) The department shall adopt rules necessary for the implementation and administration of this part. The rules must include but are not limited to:

(a) the manner in which the department will consider applications for licenses and endorsements and applications for registry identification cards for individuals with debilitating medical conditions and renewal of licenses, endorsements, and registry identification cards;

(b) the acceptable forms of proof of Montana residency;

(c) the procedures for obtaining fingerprints for the fingerprint and background check required under 50-46-307 and 50-46-308;

(d) the security and operating requirements for dispensaries;

(e) the security and operating requirements for chemical manufacturing, including but not limited to requirements for:

(i) safety equipment;

(ii) extraction methods, including solvent-based and solvent-free extraction; and

(iii) postprocessing procedures;

(f) the amount of usable marijuana that a registered cardholder who has not named a provider or marijuana-infused products provider may possess;

(g) the canopy for which a provider or marijuana-infused products provider is licensed;

(h) implementation of a system to allow the tracking of marijuana and marijuana-infused products as required by 50-46-303;

(i) requirements and standards for the testing and retesting of marijuana and marijuana-infused products, including testing of samples collected during the department's inspections of registered premises; and

(j) other rules necessary to implement the purposes of this part.

(2) In establishing the canopy for a provider or marijuana-infused products provider, the department shall take into consideration:

(a) safety and security issues;

(b) the provision of adequate access to usable marijuana to accommodate the needs of registered cardholders; and

(c) economies of scale and their effect on the ability of licensees to comply with regulatory requirements and undercut illegal market prices.

(3) (a) Except as provided in subsection (3)(b), license fees for providers and marijuana-infused products providers are $1,000 for 10 or fewer registered cardholders and $5,000 for more than 10 registered cardholders.

(b) The department may revise the fee provided for in subsection (3)(a) as needed to adequately fund the administration of the Montana Medical Marijuana Act and the seed-to-sale tracking system, including operating reserve funds of $250,000. The department shall establish revised fees by rule.

(c) A provider of both marijuana and marijuana-infused products is required to have only one license.

(4) The department shall establish by rule the fees for dispensaries, endorsements for chemical manufacturing, and testing laboratories.

(5) All fees and civil penalties collected under this part must be deposited in the medical marijuana state special revenue account established in 50-46-345.

(6) The department's rules must establish application and renewal fees that generate revenue sufficient to offset all expenses of implementing and administering this part.