How to Get a Cannabis Business License in Montana

How to Get a Cannabis Business License in Montana

How to Get a Cannabis Business License in MontanaHOW TO GET A CANNABIS BUSINESS LICENSE IN MONTANA

Get ready to start preparing your cannabis busness license application in Montana! Montana is one of the five states, alongside Arizona, Mississippi, New Jersey and South Dakota, to have passed bills legalizing cannabis this past election 2020.

Montana passed Initiative 190 with a 57 to 43% margin of victory. The people in Montana will be able to apply for a cannabis business license and start operating in the state very soon.

Montana’s cannabis initiative I-90 is expected to generate around $48 million annually in tax revenue and licensing fees by 2025.

RELATED POST: MONTANA CANNABIS LEGALIZATION

RELATED POST: HOW TO GET YOUR MARIJUANA LICENSE IN SOUTH DAKOTA

When are Cannabis Licenses Applications Open in Montana

Montana Cannabis Initiatives takes effect on January 1, 2021. No later than October 1, 2021, the department has to promulgate rules and regulations for licenses applications. The rules may not be unduly burdensome.

It is estimated that the department will begin accepting applications for providers and dispensaries on January 1, 2022. For the first 12 months after the department begins to receive applications, they will only issue licenses to providers, marijuana- infused products providers, and dispensaries already licensed.

Types of Cannabis Business Licenses to Apply in Montana: 

  • Dispensaries: Registered premises from which a licensed adult-use provider or adult-use marijuana-infused products provider is approved to dispense marijuana or marijuana-infused products to consumers
  • Testing laboratories: to perform the testing required by the Department
  • License providers: Person licensed by the department to cultivate and process marijuana for consumers
  • Marijuana-infused products providers: Person licensed by the department to manufacture and provide marijuana-infused products for consumers

These last two type of licenses will be issue according to tiered canopy system:

    • A micro tier canopy license allows for a canopy of up to 250 square feet at one registered premises.
    • A tier 1 canopy license allows for a canopy of up to 1,000 square feet at one registered premises. A minimum of 500 square feet must be equipped for cultivation.
    • A tier 2 canopy license allows for a canopy of up to 2,500 square feet at up to two registered premises. A minimum of 1,100 square feet must be equipped for cultivation.
    • A tier 3 canopy license allows for a canopy of up to 5,000 square feet at up to three registered premises. A minimum of 2,600 square feet must be equipped for cultivation.
    • A tier 4 canopy license allows for a canopy of up to 7,500 square feet at up to four registered premises. A minimum of 5,100 square feet must be equipped for cultivation.
    • A tier 5 canopy license allows for a canopy of up to 10,000 square feet at up to five registered premises. A minimum of 7,750 square feet must be equipped for cultivation.
    • A tier 6 canopy license allows for a canopy of up to 13,000 square feet at up to five registered premises. A minimum of 10,250 square feet must be equipped for cultivation.
    • A tier 7 canopy license allows for a canopy of up to 15,000 square feet at up to five registered premises. A minimum of 13,250 square feet must be equipped for cultivation.
    • A tier 8 canopy license allows for a canopy of up to 17,500 square feet at up to five registered premises. A minimum of 15,250 square feet must be equipped for cultivation.
    • A tier 9 canopy license allows for a canopy of up to 20,000 square feet at up to six registered premises. A minimum of 17,775 square feet must be equipped for cultivation.
    • A tier 10 canopy license allows for a canopy of up to 30,000 square feet at up to seven registered premises. A minimum of 24,000 square feet must be equipped for cultivation.

Requirements To Apply For Cannabis Business License in Montana

  • The person’s name, date of birth, and street address on a form prescribed by the department;
  • proof that the person is a Montana resident;
  • fingerprints
  • the street address of the location at which marijuana, marijuana concentrates, or marijuana-infused products will be cultivated or manufactured;
  • A fee that doesn’t exceed the costs of required background checks and associated administrative costs of processing the license.
  • If the person to be licensed consists of more than one individual, the names of all owners must be submitted along with the fingerprints and date of birth of each.

The department may not license a person if the person or an owner:

  • Has a felony conviction involving fraud, deceit, or embezzlement or for distribution of drugs to a minor within the past 5 years and,
  • Has resided in Montana for less than 1 year;
  • Is under 18 years of age.

Marijuana must be cultivated and manufactured in Montana until federal law allows for the interstate distribution of marijuana

Social Equity Program in MontanaHow to Get a Cannabis Business License in Montana

Social Equity Provisions to be implemented in Montana are not mentioned in the complete text of initiative No. 190.  However, the initiative does demand that a portion of Taxes is allocated to Impacted Communities and allows for expungement of previous cannabis-related convictions to be petitioned

A portion of taxes will go to “funding for substance abuse treatment and prevention, funding of veterans’ programs to offset prior uses of unregulated marijuana in ways that harmed veterans, funding to localities where marijuana is sold to offset the costs associated with marijuana regulation, and funding for the general fund to account for any costs to the state from marijuana use and regulation”

Cannabis Business License in Montana for Out-of-State Investors?

Requires that marijuana provider licenses only be issued to in-state residents.

An individual is not considered a resident if the individual:

  • Claims residence in another state or country for any purpose; or
  • Is an absentee property owner paying property tax on property in Montana.

Here is Montana Initiative 190:

How-to-Get-a-Cannabis-Business-License-in-Montana

Taxes in Montana for Cannabis

According to the initiative a 20% tax on non- medical marijuana will be established. 10.5% of the tax revenue will go to the state general fund. The rest is dedicated to conservation programs, substance abuse treatment, veterans’ services, healthcare costs, and localities where marijuana is sold.

The remaining would be distributed among community college districts, fire and police departments and other grants or programs that support public health.

Can Municipalities Ban Cannabis Business Licenses in Montana

You may not be able to get licensed anywhere in Montana. This Montana cannabis initiative allows the option for individual counties to prohibit dispensaries through a public vote.

Make sure you are well assisted when working on your business plan, so you are sure the locality of your choosing aligns with the counties’ regulations

How Can i Start Preparing My Cannabis Business License Application

First of all, you need the right cannabis business plan. As part of the program, you will clarify what kind of dispensary you want to open, how long you plan to operate in Montana , and what the main points of your business are.

If you are starting your cannabis business and want more focus, we recommend our pitch deck course, it would be a great opportunity for you to start envisioning your cannabis dispensary.

When applying for a cannabis license in Montana or any state, the most important part of the process is going with the regulations when it comes to the application form. It is always smart to consult an attorney about the regulations in a specific state.

Not all the laws are the same across the US states, but most of them fall under the same category. Application requirements, data required, and specific information about your business should always be in hand when you apply for a dispensary license.

Alson, pay attention to municipal regulations, some cities will have rules that can be more beneficial or very restrictive for your business. Be sure you are assisted when choosing your location

If you are not sure how to make your application complete, you can contact the right attorney who will help you create the right plan for your application process when you want to open a cannabis dispensary in Montana.

Key Points on Montana’s INITIATIVE 190

Montana passed Initiative 190 with a 57 to 43% margin of victory. Montana Initiatives take effect on January 1, 2021.

Home grow in Montana?

YES, up to 4 plants per adult, max 8 plants per household

Social Equity in Montana?

Bare Minimum Criteria Towards Restorative Justice:

Expungement? YES

Social Equity Provisions? NO

Portion of Taxes Allocated to Impacted Communities? YES

A portion of taxes will go to “substance abuse treatment and education, veterans programs”

Possession Rules

Up to 1 oz of flower or 8 grams of concentrate

Cannabis Business License Windows in Montana

Montana will begin accepting applications for providers and dispensaries on January 1, 2022.

Cannabis Business Licenses Available in Montana:

  • Dispensaries
  • Testing laboratories
  • License providers and marijuana-infused products providers

Here are some updates on Montana Cannabis Legalization 

Don’t miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them.

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