{"id":55218,"date":"2022-06-14T05:22:22","date_gmt":"2022-06-14T13:22:22","guid":{"rendered":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2022\/06\/14\/montana-officials-restrict-tribal-marijuana-cultivation-to-smallest-license-tier\/"},"modified":"2022-06-14T05:45:18","modified_gmt":"2022-06-14T13:45:18","slug":"montana-officials-restrict-tribal-marijuana-cultivation-to-smallest-license-tier","status":"publish","type":"post","link":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2022\/06\/14\/montana-officials-restrict-tribal-marijuana-cultivation-to-smallest-license-tier\/","title":{"rendered":"Montana Officials Restrict Tribal Marijuana Cultivation To Smallest License Tier"},"content":{"rendered":"<\/p>\n

In a letter sent to lawmakers, a top regulator insists that the law requires his department to cap combined grow licenses for tribes at Tier 1, the smallest possible size.<\/em><\/p>\n

By Max Savage Levenson, Montana Free Press<\/strong><\/p>\n

During the 2021 legislative session, lawmakers included a provision in\u00a0House Bill 701<\/a>\u2014the state\u2019s framework marijuana legalization bill\u2014that allocates a single automatic license to each of Montana\u2019s tribal nations to both grow and sell marijuana. The facilities cannot be located on reservation land, and grow and sell operations must be located at the same place.<\/p>\n

After the session, the Economic Affairs Interim Committee confirmed with the Department of Revenue that even though the bill defines these combined-use licenses as tier 1, the smallest grow size (a maximum of 1,000 square feet of grow space), they could scale up over time, just like any conventional cultivation license.<\/p>\n

But on June 2, Brendan Beatty, director of the Department of Revenue, sent a letter to the Economic Affairs Interim Committee insisting that tribal cultivation operations cannot expand beyond tier 1 licenses.<\/p>\n

Some lawmakers argue that the limitation reduces tribes\u2019 ability to succeed in the industry, and disincentivizes them from participating in it.<\/p>\n

\u201cDuring the last legislative session, a lot of the tribes and the legislators saw this as an opportunity, finally, for the tribes to get in on equal footing on the ground floor of the marijuana industry, and start bringing in additional revenue for themselves,\u201d said state Sen. Jason Small, R-Busby, a member of the Northern Cheyenne tribe. Small pushed for the automatic combined-use licenses during the legislative session, and has additionally provided input to other Northern Cheyenne tribal members who have considered acquiring a license.<\/p>\n

\u201cUnfortunately, it seems the Department of Revenue has been trying to hamstring our efforts,\u201d he said.<\/p>\n

No tribe has yet applied for a license. Small argues that ongoing concerns over tier 1 restrictions have played a role.<\/p>\n

\u201cI\u2019ve had conversations with a couple of different tribes that say, \u2018Why even bother if they\u2019re handicapping us here?\u2019\u201d<\/p>\n

WHAT HB 701 SAYS<\/strong><\/h4>\n

The dispute arises\u00a0from language in House Bill 701<\/a>\u00a0that says \u201ca combined-use marijuana license consists of one tier 1 canopy license and one dispensary license allowing for the operation of a dispensary.\u201d<\/p>\n

Beatty\u2019s letter cites that language to justify restricting the tribes\u2019 combined-use licenses to tier 1.<\/p>\n

\u201cRegardless of this committee\u2019s stated desire to allow combined use licensees to increase beyond a tier one, the statute is clear and unambiguous and limits a combined use licensee to a single tier one canopy license,\u201d he writes. But lawmakers including state Sen. Shane Morigeau, D-Missoula, argue that was never the intention of the bill.<\/p>\n

\u201cObviously tier 1 is the entry point, not the ceiling,\u201d said Morigeau, who pushed for the licenses, and as a member of the Economic Affairs Interim Committee worked with the Department of Revenue to clarify HB 701 after the session ended. \u201cAmong Democrats and Republicans alike on the committee, we\u2019ve agreed that\u2019s not what the bill language says and [the restriction to tier 1] is not what we wanted.\u201d<\/p>\n

Morigeau\u00a0cites an administrative rule<\/a>, written after HB 701\u2019s passage, that he believes clarifies lawmakers\u2019 intent regarding tribal combined-use licenses. The rule says such licenses \u201care subject to the marijuana laws\u201d that dictate all other licenses in the state.<\/p>\n

\u201cThe rule anticipated what the Legislature wanted. The Economic Affairs Interim Committee has been very clear about it,\u201d Morigeau told Montana Free Press.<\/p>\n

During an economic affairs committee meeting in April<\/a>, Kristan Barbour, administrator of the department\u2019s Cannabis Control Division, acknowledged the committee\u2019s request to ensure that tribal licenses can scale up over time.<\/p>\n

\u201cWe\u2019ve been given direction by this body that you would like to treat this license like other licenses,\u201d she said at the time.<\/p>\n

Beatty\u2019s letter counters Barbour\u2019s position. \u201cMs. Barbour\u2019s testimony attempted to navigate what she understands this committee would like to see happen with combined use licensees, versus what is codified in statute,\u201d he writes. \u201cDuring her testimony, Ms. Barbour may have mistakenly led this [committee] to believe that combined use licensees\u201d operate like any other license.<\/p>\n

The Department of Revenue has forwarded MTFP\u2019s request for comment to Beatty, who has not responded by press time Monday morning.<\/p>\n

The restrictions put forward by Beatty have a limited impact. Once the state\u2019s moratorium on new licenses ends on July 1, 2023, Native Montanans will be able to apply for licenses just like anyone else. Those new licenses will not be bound to any such restrictions.<\/p>\n

The Economic Affairs Interim Committee will meet again this week, on June 14 and 15. Multiple committee members told MTFP they will likely discuss the issue there.<\/p>\n

This story was first published by Montana Free Press.<\/a><\/em><\/p>\n

\n

Maine\u2019s Legal Marijuana Stores Are Effectively Displacing Illicit Market, State Report Finds<\/a><\/p>\n<\/blockquote>\n

\n

Photo courtesy of Chris Wallis \/\/ Side Pocket Images.<\/em><\/p>\n

The post Montana Officials Restrict Tribal Marijuana Cultivation To Smallest License Tier<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n


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\nRead More: Montana Officials Restrict Tribal Marijuana Cultivation To Smallest License Tier<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In a letter sent to lawmakers, a top regulator insists that the law requires his department to cap combined grow licenses for tribes at Tier 1, the smallest possible size. By Max Savage Levenson, Montana Free Press During the 2021 legislative session, lawmakers included a provision in\u00a0House Bill 701\u2014the state\u2019sContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":457,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[81],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/55218"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/457"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=55218"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/55218\/revisions"}],"predecessor-version":[{"id":55219,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/55218\/revisions\/55219"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=55218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=55218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=55218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}