The MTCIA, which Cholewa represents, led the charge on November's ballot initiative and has been a behind-the-scenes shepherd for the regulatory bill. The group backed the initial self-funding proposal for the program: a tax system. It began as a 2 percent tax on the gross sales of medical marijuana providers, though there have been multiple changes since.

This week, the House Taxation Committee amended the bill to create a fee-based system, which would be paid by providers to acquire licenses. One proposal was a tiered system that set a maximum $2,000 fee for providers with 10 or fewer cardholders. The ceiling was $10,000 for larger providers.

The current proposal changed that fee to $25 per quarter for each registered cardholder. The provider would still pay that fee to keep his or her license.

Many medical marijuana backers criticized the initial tax proposal, saying that it amounted to a taxation on the medication of sick patients. Those groups applauded the move to a fee system, saying that it helps the smallest providers stay in business.

"I think the one thing most people don't understand, as far as what it takes to be a small provider, the cost and fees are phenomenal," said Josh Saksa, a Helena provider and spokesman for the Montana Hemp and Cannabis Coalition.