It is a pro-business bill, pro revenue, pro collaboration, and pro law enforcement.
By Kaiden Forman-Webster, Montana Free Press
Though House Bill 952 is only two pages long, it has the potential to have major impacts on Montana tribes, according to those who advocated for its passage.
Sponsored by Rep. Frank Smith, D-Poplar, Sioux, the bill was requested by the State-Tribal Relations Interim Committee to help tribes navigate barriers in entering and engaging in the cannabis industry. The bill was passed by the Legislature in early April, with support from both the majority of Democrats and Republicans.
Smith is retiring after this year. Smith was elected to the legislature in 1999, making him one of its longest serving members. Smith’s retirement was celebrated and his bill, which members considered to be so impactful, was acknowledged at a Montana American Indian Caucus recent meeting.
Most of the problems tribes have in selling and growing marijuana are a result of past legislation. House Bill 701, which was a 153 page bill and became law in the year 2021, set up laws for the newly legalized recreational marijuana. This bill places major restrictions on tribal governments in terms of cannabis regulation.
HB 701 created three major hurdles for tribes when it was enacted.
It only allows one licence for combined use of marijuana per tribe. This means that each tribe can only grow, package, distribute and sell cannabis at one place.
It also restricted the number of tribes that could hold a canopy license. A tribe’s dispensary or growing operation can only be contained in one 1,000-square foot building.
The third requirement was that the tribes must build their dispensaries outside of reservation borders and within a “green county” that permits cannabis sales. In essence, this would restrict tribes’ ability to compete in markets with high saturation.
Yawakie says that HB 952, which will be introduced this year, is a bill that addresses many of the barriers. He helped draft the bill and said its language was mainly pulled from the Washington state-tribal cannabis compact, which allows Washington tribes and the state enter into agreements to regulate and define cannabis operations within their reservations. Twenty-two out of the 29 federally recognized tribes in Washington have compacts with the state and more are in the process.
Montana tribes will have the ability to negotiate and create compacts with the Governor to control cannabis within their reservations. Each compact will be customized to meet the unique needs of each tribe. The agreements allow tribes to negotiate with the Governor’s Office on issues such as tax revenue deals, whether or not a dispensary is allowed to operate in a tribe, and how much marijuana tribes are permitted grow and sell.
The bill does not require any of the numerous regulatory guidelines. Yawakie stated that both the legislation and its guidelines offer a guide for tribal governments to navigate the cannabis industry.
Yawakie, a House Energy, Technology and Federal Relations Committee member and a bill proponent, said, “House Bill 952 is a proactive approach to addressing tribal operations and related topics through partnership and intergovernmental relationships.” The language and organisation of these compacts is similar to that used in tribal gaming agreements, Yawakie explained. According to him, the compacts are a system that is well structured and unique for each tribe.
The bill’s supporters have echoed the sentiment of Yawakie, stating that some tribes might decide to leave the cannabis industry altogether and form a compact in order to reduce the use of marijuana on reservations. Some tribes might use it to encourage economic development and independence.
The heated Senate Floor debate
Gayle Lammers (R-Hardin), who introduced the bill in the Senate, called it “cleanup legislation,” noting that the tribes had been excluded from the legislative process for four years.
Some tribes may not have legalized marijuana, but many are concerned about the proliferation of dispensaries that do not belong to their tribal members. These stores can be found near or within their boundaries. Lammers, who spoke to the Senate in April 2017, said that this has resulted in products being sold into youth’s hands and promoting black markets. This is legislation that’s pro-business and pro-revenue. It also promotes collaboration with law enforcement.
Multiple senators stood to speak in opposition of the bill, notably Sen. Barry Usher, R-Laurel, and Senate Majority Leader Tom McGillvray, R-Billings.
Usher challenged Lammers’ description of the bill.
Usher stated that “this is far from a clean-up bill. A cleanup bill would not be this comprehensive.” He added that cannabis dispensaries owned by non Natives already exist on reservations and there’s “plenty” of marijuana on the reservations. The senator should not change the law if it is only about tax revenue agreements.
Jonathan Windy Boy is a D-Box Elder Chippewa Cree Senator who disagrees with Usher. He stated that while non-Indian pharmacies are located on the Fort Peck Indian Reservation the tribes lack the ability to regulate these businesses.
Windy boy said that there was no agreement. “There have been some glitches in terms of the tribe’s ability to hold dispensaries accountable,” he added. “And [non-Indian dispensaries] say, ‘Get out of here, mind your own business.'”
McGillvray said that the social costs associated with marijuana are greater than any revenue generated by cannabis sales.
McGillvray raised objections to reservations that legalized cannabis and said marijuana would lead Native youths into illegal drug usage.
The Flathead Reservation is home to Sen. Greg Hertz of Polson. He addressed the issues brought up by his party.
If you are living on a reserve, the state can’t legally tax your property. [on tribal members],” Hertz said. “That’s why we entered into agreements between the state, the tribes and ourselves to prevent unfair competition.”
Hertz went on to say that, in his opinion, compacts made between the tribes and states would ensure compliance with state and federal law.
Yawakie stated in an interview with Montana Free Press & ICT that “compacts are not just needed to prevent access to cannabis on reservations who want to put some limitations.” Yawakie said that tribes within the state want to advance with processing or testing or distribution so they can have clarity when they meet with the state.
This story was originally published by Montana Free Press at montanafreepress.org.
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Side Pocket Images. Image courtesy Chris Wallis.