Source: JD Supra – Vicente

When the Eastern Band of Cherokee launched sales of adult-use cannabis in September 2024 through a dispensary in western North Carolina, it presented a seismic shift. Unlike most other Tribal Nations that sell cannabis, the Eastern Band of Cherokee started its program without waiting for underlying state legalization.

Opportunities in States That Have Not Legalized Cannabis

Relying upon principles of Tribal sovereignty, the Eastern Band of Cherokee and many other Tribal Nations throughout the United States grow, manufacture and sell cannabis on Tribal lands. In North Carolina, adult-use cannabis is legal but there is no legal medical or adult-use cannabis program. Significantly, however, possession of up to 0.5 ounces is decriminalized in North Carolina. The Eastern Band of Cherokee are the only Tribe known to sell adult-use cannabis in a state where such sales are illegal. Among its neighboring states, only Virginia allows sales of adult-use cannabis. You don’t need to be Warren Buffett to see the revenue opportunity.

Tribal Nations Could Have a First-to-Market Advantage in Minnesota

In Minnesota, where cannabis possession was legalized in mid-2023, there are no licensed adult-use cannabis dispensaries anywhere but on Tribal lands. Recently, Minnesota’s adult-use licensing program became embroiled in litigation that threatens to delay the introduction of state-licensed cannabis businesses for months. Minnesota’s Tribal Nations, many of which are in negotiations to open adult-use cannabis dispensaries off Tribal lands, could fill that void.

Pursuant to agreements with the State of Minnesota that were expressly contemplated by Minnesota’s legalization statute, Minnesota Tribes could soon open dispensaries anywhere throughout Minnesota. One Tribe, the White Earth Band of Ojibwe, has already announced plans to open dispensaries in St. Cloud, a college town in the center of the state, and Moorhead, a college town near North Dakota.

Several of Minnesota’s Tribal Nations currently operate dispensaries on Tribal lands, including the White Earth Band of Ojibwe, the Red Lake Band of Chippewa, the Prairie Island Indian Community, the Leech Lake Band of Ojibwe and the Lower Sioux Indian Community. Additionally, the Lower Sioux have launched a program to build homes out of hempcrete.

Wisconsin Cannabis Programs May Begin with Tribal Nations

Across the Mississippi River, Wisconsin Tribes are discussing cannabis sales in a state that—like North Carolina—has no legal cannabis programs. It will be interesting to see if a Tribe within Wisconsin’s borders follows the lead of the North Carolina Cherokee by launching a cannabis program in a prohibition state.

Leaders Gather at the National Indigenous Cannabis Policy Summit

Many of these Tribes, including those from Wisconsin and Minnesota, recently participated in the National Indigenous Cannabis Policy Summit in Washington, DC. Organized by the National Indigenous Cannabis Industry Association and its leaders, Mary Jane Oatman and Rob Pero, Tribal Nations and ancillary businesses joined in the nation’s capital to discuss the future of Tribal cannabis. Over the course of three days, Tribal leaders gathered with other industry experts to discuss trends, pitfalls and opportunities in Indigenous cannabis markets throughout the country.

Interstate Commerce of Cannabis Could Begin with Tribal Nations

While some observers believe that interstate commerce of adult-use cannabis might begin among bordering states, it might first occur among Tribal Nations of different states. Like the “Cole Memo,” the “Wilkinson Memo” indicates that the federal government would not interfere in Tribal cannabis programs so long as such programs are coupled with regulatory and enforcement schemes that protect children and aim to prevent criminality, diversion and impaired driving. While interstate commerce would challenge a tenet of the Cole Memo and the Wilkinson Memo, it may not be long before Tribal Nations—relying upon principles of Tribal sovereignty—might seek to press the envelope.

https://www.jdsupra.com/legalnews/cannabis-presents-economic-opportunity-7367061/