Minnesota’s legalization has been a great start for Native American Tribes, creating a model approach that some tribe members refer to, even though it isn’t without its challenges.
Rob Pero is the founder of Canndigenous, and of the Indigenous Cannabis Industry Association.. The tribes are entitled to progress faster than the State because of their civil regulatory authority.
Minnesota has yet to implement its legalization of adult-use cannabis, but several tribes are establishing their retail businesses on or off reservations. White Earth Red Lake Prairie Island and other tribes are making big moves, according to tribal representatives.
Pero added that the tribes were implementing “longer-term business plans, 5 to 10 years in duration” instead of immediately disbursing cannabis profits to their members.
This rapid deployment has sparked internal debates within the tribal communities on how profits from cannabis should be distributed and who should profit from these new businesses.
Pero stated that community members are expecting wealth in many cases to be returned quickly. The disconnect between community members’ expectations and the revenue intended to be used for the long-term sustainable growth of the communities can cause tension.
Todd Thompson is a White Earth Band member from Northern Minnesota. A recent incident involving Thompson has brought to light these divisions. Thompson was arrested by Mahnomen law enforcement for operating his cannabis business. Mary Jane Oatman, ICIA’s Executive Director, alleged “tribal law enforcers looked the other direction while this raid was taking place.”
Thompson spoke to Thompson during the raid The GuardianAuthorities “took [my] sacred items, My sage dish, and tipped it over on my bed. They took my feather, and placed it on the ground,” demonstrating the insensitivity to culture that is often associated with raids of dispensaries.
Oatman explained that Thompson is in a difficult situation. “His business has to compete with the tribal businesses, their resources and laws. This creates frustration for everyone involved.” She urges tribes “to embrace opportunities so that their tribal citizens can also get a licence and participate”.
Oatman brings her personal experience into her activism. When she was in primary school, Oatman’s grandparents spent time in federal prison because they grew marijuana on the Nez Perce Reservation, Idaho. She is the founder of both Tribal Hemp and Cannabis Magazine and Indigenous Cannabis Coalition.
I built a database to track who was doing what and how. Oatman added that the entire database, including codes, contact information, and ordinances was built because “it needed to be done, nobody else had been doing it.”
Oatman warned that the threat of outsiders looking to exploit tribal communities for business opportunities of all stripes – including cannabis – is very real, and something tribes must ward against.
“In my different communities that I work within, it’s not just cannabis, it’s solar, it’s geothermal – whatever is the fast get rich quick scheme or new emerging technology or industry, there is always going to be a shark coming into a tribal community to take advantage of them, 100% of the time,” she said.
Many tribes hire outside cannabis experts for their own businesses.
Pero said that he was bringing in former general managers or CEOs from MSOs and operations located in other states. They are able to make a real difference by entering new tribal markets.
Pero explained that tribes have different views on cannabis. Pero said that some tribes run businesses through their tribal governments, while other tribes “on the East Coast” give out business licenses to citizens and empower them to create businesses.
Pero is of the opinion that tribal governments must keep their distance from cannabis businesses.
The ideal scenario is for tribes to compartmentalize. “They create a board and create an organization, then they hire, and separate the tribes so the businesses are reported to a Cannabis Commission Board, who reports back to the tribal governments,” said he.
ICIA is planning to hold a public one-day event in Minnesota after the legislative session of that state concludes in May. Oatman says that this “post-legislative tribal cannabis briefing” includes tribal CEOs, and will allow difficult questions to addressed in an open manner.
In the end, marijuana is much more than an opportunity to make money for Native American Communities. Pero said that tribes can control their own businesses by growing and selling marijuana, as opposed to many other projects for economic development.
Pero stated that “tribes which have established cannabis or alternative revenue generating businesses that are not dependent on federal funding, gaming, and other sources of income are confident. That makes them feel good.” He noted the importance of such independence, especially in view fluctuating federal policy.
For now, with Minnesota state license lotteries not expected until May or June, tribal operations are filling a market void, meaning they’re likely to turn a solid profit, at least in the short term before the market fills up.