Montana law sets tiered licensing and fee structure for marijuana cultivators

Montana's Senate Bill 27, introduced on February 12, 2025, aims to reshape the state's marijuana licensing framework, a move that could significantly impact the burgeoning cannabis industry. The bill proposes a tiered licensing system for cultivators, allowing businesses to scale their operations more flexibly while ensuring regulatory oversight.

At the heart of SB 27 is the provision that cultivators can increase their licensure level by more than one tier at a time, a notable shift from previous regulations that restricted such advancements. This change is particularly relevant for cultivators holding a combined-use license, who can now expedite their growth without meeting certain prior requirements. The bill mandates that the Department of Revenue conduct inspections of cultivation facilities within 30 days of receiving applications, ensuring compliance and safety standards are met before any licenses are granted.

One of the bill's key stipulations is that any marijuana business not licensed by July 1, 2025, will start at a tier 2 canopy license or lower, which could limit entry for new players in the market. Additionally, the bill allows the department to create new tiers as necessary, indicating a willingness to adapt to the evolving landscape of the cannabis industry.

The proposed licensing fees range from $1,000 for a micro tier canopy license to $23,000 for a tier 9 canopy license, reflecting the scale of operations and potential revenue generation. This tiered fee structure is designed to ensure that the licensing process is equitable and reflective of the cultivators' capabilities.

Debate surrounding SB 27 has centered on its potential to either stimulate growth in Montana's cannabis sector or create barriers for smaller cultivators. Proponents argue that the flexibility in licensing will encourage investment and innovation, while critics warn that the high fees and tiered system could favor larger operations, sidelining smaller businesses.

As the bill progresses through the legislative process, its implications for Montana's economy and the cannabis market remain to be seen. If passed, SB 27 could pave the way for a more dynamic and competitive industry, but it will also require careful monitoring to ensure that it fosters an inclusive environment for all cultivators.