BILLINGS, Mont. (AP) — The state health department says it won't issue new medical marijuana dispensary licenses in Billings after the city passed an ordinance that says licensed businesses must obey federal law.

The use, sale and possession of marijuana are illegal under federal law.

The Billings Gazette reports officials with the Department of Public Health and Human Services met with Billings city leaders Wednesday to discuss marijuana regulation.

State marijuana inspector Jamin Grantham says businesses must be located outside the Billings city limits in order to be eligible for new or renewed licenses.

The owners of two Billings dispensaries sued the city over the ordinance, arguing they should be grandfathered in at their Billings locations. The lawsuit is still pending.

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