{"id":25849,"date":"2022-06-30T12:49:57","date_gmt":"2022-06-30T16:49:57","guid":{"rendered":"https:\/\/www.indianz.com\/News\/?p=25849"},"modified":"2022-06-30T12:49:58","modified_gmt":"2022-06-30T16:49:58","slug":"montana-free-press-tribes-hit-with-marijuana-grow-limits","status":"publish","type":"post","link":"https:\/\/indianz.com\/News\/2022\/06\/30\/montana-free-press-tribes-hit-with-marijuana-grow-limits\/","title":{"rendered":"Montana Free Press: Tribes hit with marijuana grow limits"},"content":{"rendered":" \"Montana<\/a>
A view inside the Montana State Capitol in Helena. Photo: Harshil Shah<\/a><\/figcaption>\r\n
Dept. of Revenue puts limits on tribal marijuana cultivation licenses<\/div>\r\n
In a letter sent to the Economic Affairs Interim Committee, DOR Director Brendan Beatty insists that language in House Bill 701 requires his department to cap combined grow licenses for tribes at Tier 1, the smallest possible size.<\/strong><\/div>\r\n
Thursday, June 30, 2022<\/div>\r\n
By Max Savage Levenson<\/div>\r\n
Montana Free Press<\/DIV>\r\n
montanafreepress.org<\/A><\/DIV>\r\n

<\/p>\r\nDuring the 2021 legislative session, lawmakers included a provision in House Bill 701<\/a> \u2014 the state\u2019s framework marijuana legalization bill \u2014 that 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>\r\n\r\nAfter 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>\r\n\r\nBut on June 2, Brendan Beatty, director of the Department of Revenue, sent a letter to the Economic Affairs Interim Committee<\/a> insisting that tribal cultivation operations cannot expand beyond tier 1 licenses.

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

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

<\/P>\r\n\r\nNo tribe has yet applied for a license. Small argues that ongoing concerns over tier 1 restrictions have played a role.

<\/P>\r\n\r\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>\r\n

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Cannabis License Letter <\/div>\r\nDirector_Beatty_letter_to_Committee_060222<\/a>\r\n<\/div><\/div>\r\n

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WHAT HB 701 SAYS<\/div>\r\n\r\nThe dispute arises from language in House Bill 701<\/a> that 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>\r\n\r\nBeatty\u2019s letter cites that language to justify restricting the tribes\u2019 combined-use licenses to tier 1.

<\/P>\r\n\r\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>\r\n\r\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>\r\n\r\nMorigeau cites 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>\r\n\r\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>\r\n

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