HB 701, the main bill that established the current legal framework for adult-use, established a tiered canopy system. Adult-use growers with a Tier 1 license can have up to 1,000 square feet of canopy, Tier 2 licenses allow up to 2,500 square feet, Tier 3 allows up to 5,000 square feet and so on.
HB 701 says an adult-use grower can only increase their license one tier at a time, and only if they show they are using the full amount of canopy they already have and are selling the marijuana they’re already producing.
HB 2095 was signed in early 2023 which extended the ban on new medical cannabis businesses to August 2026. Prior to the new legislation, the moratorium on new businesses was set to expire on August 1, 2024.
HB 128 was signed in May 2023 which extended restrictions on who regulators can accept new license applications from to July 1, 2025. The law states that regulators may only "accept applications from and issue licenses to former medical marijuana licensees that were licensed by or had an application pending with the department of public health and human services on November 3, 2020 and are in good standing with the department".
March 2022 | Bloom Montana announced an investment from Altmore Capital for $11MM
The broad license structure creates an environment that benefits consumers and challenges operators. The highest value is likely to be created by dispensaries with strategic locations and control of their own supply chain.
Given the moratorium on new applications, its hard for new operators to enter the market any time soon. Retailers who are able to reach adventure seekers flocking to Big Sky and Yellowstone stand the best chance of success in this small market.
*Tier 1 canopy license allows for a canopy of up to 1K sq.ft. at one registered premises. Tier 2 canopy license allows for a canopy of up to 2,500 sq.ft. at up to two registered premises. Tier 3 canopy license allows for a canopy of up to 5,000 sq.ft. at up to three registered premises. Tier 4 canopy license allows for a canopy of up to 7,500 sq.ft. at up to four registered premises. Tier 5 canopy license allows for a canopy of up to 10,000 sq.ft. at up to five registered premises. Tier 6 canopy license allows for a canopy of up to 13,000 sq.ft. at up to five registered premises. Tier 7 canopy license allows for a canopy of up to 15,000 sq.ft. at up to five registered premises. Tier 8 canopy license allows for a canopy of up to 17,500 sq.ft. at up to five registered premises. Tier 9 canopy license allows for a canopy of up to 20,000 sq.ft. at up to six registered premises. Tier 10 canopy license allows for a canopy of up to 30,000 sq.ft. at up to seven registered premises. Tier 11 canopy license allows for a canopy of up to 40,000 sq.ft. at up to eight registered premises. Tier 12 canopy license allows for a canopy of up to 50,000 sq.ft. at up to nine registered premises.
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