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Indian Tribes see opportunity in hemp THC products, even in states that continue to criminalize marijuana

We will stand firm with tribal sovereignty in this matter.

Mary Annette Pember ICT

Little Pines Cannabis Dispensary, located in Lac du Flambeau Wisconsin near Munchies To Go says its proximity to the restaurant was a mere happy accident.

Little Pines was opened by the Lac du Flambeau Band of Lake Superior Indians’ business development corporation in early summer, nestled in between Munchies and a small strip-mall on tribal land located in northern Wisconsin. Munchies offers sandwiches, hotdogs and other snacks.

THC is known to stimulate appetite. Munchies seems to have a unique position. THC is the compound that causes the psychoactive effects of the Cannabis sativa.

Little Pines’ opening in Wisconsin is not a mere coincidence. Both medical marijuana and recreational marijuana remain illegal. Little Pines represents a unique legal loophole that exists in the federal laws regarding marijuana and hemp. It allows manufacturers to sell THC-infused products as long as they are derived from hemp.

Cannabis is the generic name for both hemp and marijuana. The main difference between hemp and marijuana in terms of legality is the THC level. The 2018 Farm Bill was passed during the Trump Administration and authorized hemp production.

It opened the doors to hemp-based products that have THC infused in them. The new Indigenous brands have sparked interest in Europe.

If a tribal or state submits an application to the [U.S. Department of Agriculture] If they want to sell or grow hemp, then it is up to them to decide how to do so,” explained Candace Thompson. Thompson is a member of the Lac du Flambeau band of Lake Superior Indians. She also serves as director of Little Pines’ retail and cultivation.

She said, “The tribe is responsible for tribal licensing and regulation. The state has not done this.”

Cash crop

Hemp and marijuana stores and dispensaries are nothing new on tribal lands or in mainstream America—there are nearly 15,000 cannabis dispensaries in the U.S., although the number of outlets selling CBD (non-intoxicating) products is difficult to determine. Grandview Research put the CBD market’s value at $6.7billion by 2023.

The Indigenous Cannabis Industry Association published information that 52 Native communities have hemp-growing programs approved by federal law. Approximately 26 percent of 574 tribes federally recognized in the United States are also involved with cannabis or hemp programs. ICIA serves as an Indigenous cannabis resource.

Thompson, ICT, told ICT that the 2018 Farm Bill stipulates hemp has a THC concentration less than 0.3% on a weight-dry basis. Marijuana contains higher levels of THC, and it is classified as a Schedule I drug by federal law.

The Harrison Act of 1914 and the Marijuana Tax of 1938 prohibited the cultivation of cannabis of any kind in the U.S.

The 2018 Farm Bill authorizes the USDA to accept plans from tribes and state governments for domestic industrial hemp production. This can include fiber, fabric, a construction material known as hempcrete, as well as foods containing cannabinoids like CBD and THC.

According to Harvard Medical School, cannabinoids belong to a group of chemicals that influence the endocannabinoid systems of our bodies. This complex network of transmitters controls many critical functions of the human body, including learning, memory and emotional processing. It also affects temperature, pain and inflammation. Cannabis contains more than 100 cannabinoids, including THC (the psychoactive component) and CBD (the non-intoxicating ingredient), which is valued for its therapeutic properties for anxiety and pain relief.

Thompson stated that manufacturers could increase the amount of THC in hemp after it is harvested.

The woman said: “That is a loophole in the law.”

Rob Pero is president and founder at ICIA. According to him, Little Pines was the first tribal enterprise of this kind in Wisconsin. Pero is from the Bad River Band Lake Superior Chippewa and Oneida Nation in Wisconsin.

Unanswered questions

In Wisconsin, today the sale and distribution of THC-derived from hemp is virtually unregulated. The Cap Times reported that lawmakers in Wisconsin are attempting to regulate these substances. However, there is currently no age restriction for purchasing. Wisconsin experts in substance abuse, public health, and the field of addiction published a study that recommended a minimum age requirement for 21-year-olds and above. The market in Wisconsin for THC-infused beverages and products is booming.

Thompson claims that Little Pines product sales to people under the age of 21 are prohibited by tribal law.

About two years ago, the tribe started working on the project and thought about decriminalizing cannabis on the reservation. Thompson explained that since Wisconsin follows Public Law 280 and is governed there, the tribal leaders decided not to rush to make a decision on the legality or otherwise of marijuana. Public Law 280, a federal statute that allows state criminal jurisdiction to be exercised on reservations’ lands.

Thompson says that Thompson’s tribe plans to cultivate its own hemp and extract THC, as well as create their own products.

What about arrests for possession of THC purchased from Little Pines products?

We asked this question too because the dogs cannot tell the difference between THC and CBD. Thompson stated that the smell was similar. The receipts from Little Pines will prove that it is not illegal if the police are stopping customers.

She said, “Then let’s go on from there.”

Thompson said that police appear to ignore the purchase of THC-derived hemp products in Wisconsin.

Tribes that sell THC-derived products of marijuana in states under Public Law 280, which criminalize the possession of cannabis, may be faced with a less certain legal environment. On July 15, the Omaha Tribe of Nebraska declared that the state’s medical and adult cannabis systems were now fully legalized and regulated.

Nebraska, which approved medical marijuana sales in its last presidential election has taken a long time to establish permanent rules governing their sale. Because recreational marijuana is illegal, customers could be arrested if they leave the reservation.

John Cartier, Omaha Tribe Attorney General of Nebraska told ICT that if the government tries to seize products or crack down on consumers they will face a series of lawsuits.

The Omaha Tribe is planning to establish a way to provide its clients with their own card for the use of medical marijuana.

Cartier reports that tribal leaders are hoping to sell marijuana within the reservation in the first quarter, 2026.

Cartier declared, “We’re going to be strong in our own tribal sovereignty on this issue.”

Regulations and controls

ICT discovered a new drink called Happy Dazed on the shelves of the Little Pines shop. Black and Blue Lemonade in a 10-ounce can featured an animated cartoon with wild eyes and seemed to be one beverage serving.

The can was marked in smaller fonts near the bottom, indicating that the THC content was 50mg. The ingredient label at the back of the can indicates that it contains 10 servings.

In states that allow marijuana to be used for medical or recreational purposes, edibles usually have between 5-10mg of THC in each serving. ICT fell into a deep, long sleep after drinking two ounces (about half a cup) of Happy Dazed.

Mary Jane Oatman is the chief executive of ICIA and told ICT that information on dosing, labeling, etc., are issues for all markets.

Oatman said, “That is one of the discussions we have often with our health advisor round tables.” Oatman was born in Delaware Tribe but is also a member of Nez Perce Tribe.

The retailer noted that, in Washington State, for example, beverages high in THC are sold with a shrink-wrapped single dosing container.

Idaho is going further to regulate hemp products. Oatman says that in 2021, Idaho’s state legislature passed the Industrial Hemp Research and Development Act. This act prohibits hemp products with any THC from being sold or cultivated.

Cannabis future for Tribes

There are many regulatory, license and financial obstacles for tribes to enter the cannabis business. However, the future is lucrative.

Thompson says that by the seventh year of running its cannabis business in Lac du Flambeau, they expect to make around $3,000,000.

Oatman pointed out that many European countries including Germany have expressed interest in selling Indigenous brands of cannabis.

Oatman said, “They are looking for indigenous brands to be on their shelves.” It is because no-one knows the healing properties of plant medicines better than Indigenous peoples who raise quality.

She says that she believes the indigenous brands of Europe will arrive in Europe this year or by 2026.

ICT was the first to publish this article.

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