Montana Allows Tribes to Obtain High-Capacity Cannabis Grow Licenses

Montana lawmakers on Monday approved cannabis rules proposed by the state Department of Revenue, including allowing tribes to obtain higher capacity industry licenses, and eliminating a proposal to allow companies to label their products as “cannabis,” the Helena Independent Record reports. The changes come just weeks before adult-use sales are set to commence in the Treasure State.

Under previous rules, tribes would have only been allowed to obtain tier 1 licenses — the smallest capacity which only allowed 1,000 square feet of indoor cultivation. Under the new rules, tribes can obtain all of the available licenses, including tier 12, which allows 50,000 square feet of cultivation, the report says.

Under the bill approved on Monday, cannabis products sold in the state may not be labeled “cannabis” because the term — despite being scientifically correct — may not be recognized by children. The Montana Revenue Department had considered allowing companies to use the term because to some the word “marijuana” is derogatory or disparaging.

The rules also require current outdoor grows to remain the same size and do not allow for any new outdoor cultivation facilities; however, outdoor grows that were operational prior to the 2020 election are grandfathered in.

In September, the Department of Revenue loosened cannabis industry advertising rules, allowing online advertising without warnings but requiring an “Are you 21 and older?” question. Cannabis dispensaries must still follow local sign ordinances under the approved advertising rules.