The Eastern Band of Cherokee in the territorial boundaries of North Carolina recently opened a dispensary, despite marijuana being illegal in the state. Likewise, the White Earth Band of Ojibwe opened a cultivation facility and dispensary on its tribal lands as the State of Minnesota legalized marijuana possession. The White Earth Nation, along with the other ten federally recognized tribes within the territorial boundaries of Minnesota, are in the process of compacting with the state for cannabis activity outside the exterior boundaries of their tribal lands.
These tribes exemplify a growing number of Native American communities across America that are exercising tribal sovereignty to enter the cannabis market. Initially, obstacles and challenges seemed to create insurmountable barriers to Native American participation in the industry. Challenges included friction with state laws and state governments, gray areas in federal enforcement of the Controlled Substances Act, and lack of financing. Make no mistake—these obstacles can still obstruct a tribe’s path to participation in green markets. However, now more than ever, there seems to be a brighter future for Native American cannabis operations, and there are many reasons why tribes may want to consider stepping off the sidelines and onto the playing field.
Federally recognized tribes are situated in a unique space within the American legal system. They have inherent sovereignty as established by the United States Constitution, and this sovereignty has been confirmed by U.S. Supreme Court rulings and treaties with the federal government. Tribes are deemed to be domestic-dependent nations with rights to self-governance, management of tribal lands, and operation of tribal business entities. Because the Constitution granted power over Indian affairs to the U.S. Congress, states have no authority over tribal governments or affairs on tribal lands unless expressly authorized by Congress. Since tribes and states are both sovereign, neither is subordinate to the other.
So, taking tribal sovereignty into account, why should a tribe explore entering the industry?
Within the legal framework of tribal sovereignty, marijuana has emerged as a viable economic commodity, presenting significant economic development opportunities for Native American tribes. As many tribes face persistent economic challenges, participating in the cannabis market can lead to the enhancement of potential revenue streams, job creation, investment in infrastructure, promotion of entrepreneurial initiatives, and improvement of health and wellness programs.
One of the most compelling benefits of cannabis for Native American tribes is the potential for substantial revenue generation. Many tribes operate in areas with limited economic resources, often relying heavily on federal funding and grants. By entering the cannabis market, tribes can create new revenue streams that can significantly bolster their economies. In turn, revenue derived from operations can be redirected toward essential community services such as education, healthcare, and infrastructure development. The economic impact of the industry thus can extend beyond immediate financial gains, allowing tribes to invest in long-term community welfare.
The industry can create jobs for tribal members. Growing, manufacturing, and selling products is labor-intensive, requiring a diverse range of skills from cultivation and harvesting to distribution and retail management. As tribes establish operations, they can create numerous job opportunities for tribal members. Job creation is particularly vital in communities where unemployment rates can be disproportionately high. Employment in the cannabis sector also can lead to skill development and training for tribal members. By offering vocational training and education in agriculture, business management, and compliance with regulatory requirements, tribes can empower their communities with new skills that can be applied in other industries.
The cannabis industry also opens doors for entrepreneurial initiatives among tribal members. Beyond large-scale cultivation, various ancillary businesses can flourish in the ecosystem. These include processing, distribution, retail, and marketing services. By supporting local entrepreneurs, tribes can cultivate a robust local economy.
With the influx of revenue from sales, tribes can invest in critical infrastructure projects. Improved infrastructure can include roads, housing, and community facilities, all of which contribute to a higher quality of life for tribal members. Additionally, enhanced infrastructure can attract further business opportunities and investments from outside entities.
Investment in technology and modern agricultural practices is another critical aspect of infrastructure development. By adopting innovative farming techniques and equipment, tribes can increase productivity and ensure sustainability in their operations. This modernization can serve as a model for other agricultural ventures within the community.
Economic development through cannabis can lead to greater investment in community health and wellness programs. Many tribal members desire access to the plant as an alternative to pharmaceuticals (many of which come with inherently severe side effects). Revenue from cannabis can be allocated to health initiatives that directly address disparities in healthcare and health issues that arise in tribal communities, fostering a healthier, more resilient community.
Make no mistake: Despite the rosy future and the potential benefits for economic development, challenges remain. Stigma can lead to resistance within tribal communities. As a result, education and outreach programs are needed to dispel myths and promote accurate information about cannabis and its benefits. Tribes must navigate the legal and regulatory landscape as each state has its own laws, and tribal sovereignty adds another layer of complexity. In states where cannabis is legal, tribes must work to establish their own regulations that align with state laws while asserting their rights to govern cultivation and sales.
Collaboration with state governments, whether through negotiating compacts or mutual understandings, can help facilitate a smoother integration of cannabis into tribal economies. Additionally, proactive engagement with local law enforcement can foster a cooperative environment, ensuring compliance and community safety.
Andrea Kingbird, general counsel for the White Earth Band of Ojibwe, contributed to this article.
