Government and Legal Process

MRTA (Cannabis Law), Article 6, Sections 131–139

Article 6 governs how cannabis law interacts with local governments, courts, and state agencies.

These sections determine where cannabis businesses may operate, how municipalities participate, how legal challenges work, and what happens when part of the law is invalidated. Operators encounter these rules during site selection, municipal disputes, enforcement actions, and appeals.

What This Covers

  • Municipal opt-out authority and limits
  • State preemption of local cannabis regulation
  • When OCM must be included in legal actions
  • How courts review cannabis licensing decisions
  • What severability means for ongoing compliance

Local Government Authority and Limits

Local Opt-Out and Municipal Control (Section 131)

Municipalities may opt out of allowing:

  • Retail dispensaries
  • On-site consumption licenses

If a municipality opts out, those license types cannot operate there.

Municipalities may not opt out of:

  • Cultivation
  • Processing
  • Distribution

These activities are controlled exclusively by the State.

Even where retail is allowed, municipalities retain authority over:

  • Zoning
  • Building permits
  • Fire code approvals
  • Signage
  • Limited control over hours of operation

Before committing to a location, operators must confirm:

  • The municipality did not opt out
  • Zoning permits cannabis use
  • The site complies with all local siting rules

Failure to verify this has caused operators to lose leases, deposits, and buildout costs.

Legal Proceedings and Appeals

Office as a Necessary Party (Section 131-A)

If a legal action involves cannabis licensing, enforcement, or regulation, the Office of Cannabis Management must be named as a party.

If OCM is not included:

  • The case cannot proceed
  • Courts dismiss the action
  • Appeals must be refiled

For operators, this means:

  • Any challenge to a denial, revocation, or enforcement order must include OCM
  • Excluding the regulator is not permitted

This is a legal requirement, not a litigation strategy.

Review by Courts (Section 135)

Applicants and licensees may seek judicial review of OCM or Cannabis Control Board decisions.

Courts do not:

  • Re-evaluate applications
  • Replace agency judgment
  • Fix incomplete submissions

Courts review only:

  • Whether proper procedures were followed
  • Whether the decision was reasonable
  • Whether the administrative record supports the outcome

The record includes:

  • The application
  • Deficiency responses
  • Communications with OCM

Weak or incomplete records cannot be repaired on appeal.

Severability (Section 139)

If a court invalidates one provision of Article 6, the remaining sections remain enforceable.

For operators, this means:

  • A ruling affects only the specific section challenged
  • Licensing and compliance obligations continue
  • Court decisions do not suspend the cannabis program

Only legislative or regulatory changes alter ongoing requirements.

Related MRTA Article 6 Section Pages

Source Material