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Montana Governor rejects bill that would have allowed tribes to negotiate with the state about marijuana laws

The tribes of the state want to proceed with production, processing, testing and distribution.

Filter By Alexander Lekhtman

Montana’s proposal, which would have let tribal nations negotiate their own cannabis regulations individually, will not become law this session. Gov. Greg Gianforte’s (R) bill was vetoed on June 19 by calling it unnecessary and redundant.

House Bill 952 The state of Montana enacted the HB 701 in 2021 to remove barriers for tribes operating within the cannabis industry. This bill restricts each tribe’s cannabis operation to one location with a maximum of 1,000 square feet, and a minimum distance outside the reservation boundary of 150 miles.

The HB 952, however, would have lifted these restrictions by allowing each tribe to negotiate their own terms of regulation with the State that were tailored to meet their needs. According to The Montana Free Press, it was modelled after the cannabis compacts that federally recognized Native American Tribes use in Washington State.

Although I respect the intention of the bill’s sponsor, [regulatory] Gianforte said in his letter of June 20 explaining why he vetoed the bill that authority was already present under the State Tribal Cooperative Agreements Act. “I also have serious concerns about the bill’s potential impact on tribal sovereignty and self-determination, as well as the government-to-government relationship between the State of Montana and tribal nations. House Bill 952, by channeling the negotiations through a statutory process may limit scope and flexibility, create unnecessary bureaucratic obstacles and impose state priorities to tribal nations.

Frank Smith, a long-time member of Montana’s American Indian Caucus (D), sponsored the bill. Smith was retiring after this final session of the legislature. Smith first assumed office in 1998.

Montana started selling adult-use marijuana in 2022. However, the cannabis industry is split into “green counties” that supported legalization and “red counties” which opposed it. The sale of marijuana in counties that are red is automatically prohibited, unless the counties decide to allow it.

Patrick Yawakie (cofounder of Red Medicine LLC) told Montana Free Press in a recent interview that tribes are interested in moving forward in manufacturing, processing, testing and distribution. He was drafting HB 952 at the time. It would have made sure “that tribes in the state can maintain their compliance with state regulation whenever they meet with the State to discuss the bill.”

Yawakie said during that interview that the bill would also help tribes restrict access to cannabis, among those that wish to do so.

Gianforte vetoed 42 bills this session. 10 are currently awaiting override. A bill to allocate cannabis tax revenues is one of the 10 possible vetoes which could be overturned. The legislature has already begun the process to conduct the mail-in veto override voting as of June 19, since the session is now adjourned.

Gianforte’s vetoes are largely related to budget, and he has made drastic cuts in an email dated June 20, which he said were necessary for him to protect his constituents against unnecessary expenditure.

He wrote that the budget he received from the Legislature was not as financially responsible as what he had proposed. It is our duty to manage taxpayers resources responsibly, whether or not we’re in a more prosperous fiscal period. To protect taxpayers, we must make difficult decisions and prioritize what’s necessary.

This article was originally published by Filter, an online magazine covering drug use, drug policy and human rights through a harm reduction lens. Follow Filter on Bluesky, X or Facebook, and sign up for its newsletter.

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