Rising Above

[dropcap class=”kp-dropcap”]A[/dropcap]fter a long stint of prohibition, many states are embracing legal cannabis, both recreationally and medicinally. The amount of revenue generated by this burgeoning industry is lucrative and exciting for many regions, particularly in rural areas. Cannabis crops and stores are helping to rejuvenate many economically depressed agricultural regions all over the United States. So why wouldn’t Native American tribes, whose reservations are largely located in rural areas without many other economic opportunities, want to try their hand in the cannabis industry?

Federal Interference

Native American reservations are subject to different legal regulations than other jurisdictions in the U.S. Reservations are what are known as “sovereign nations,” meaning that they’re allowed to govern themselves, to an extent. Tribes have their own police forces and courts. How does cannabis—which is already complicated legally—fit into the narrative for these tribal sovereign nations?

Turns out cannabis laws and tribal laws are . . . complicated. Just as cannabis laws vary state-to-state, they also vary tribe-to-tribe. Tribal laws are dependent on their states and further complicating matters, some reservations spread over more than one state. Many tribes have chosen to ban cannabis altogether, even in legal states.

For tribes interested in venturing into the cannabis industry, there are federal laws and guidelines that help regulate the possibility of legal participation in the cannabis industry. In October of 2014, the Department of Justice issued eight new federal recommendations through the Wilkinson Memo. Unfortunately, these guidelines don’t fully clarify the legalities of cannabis on reservations and essentially leave federal prosecution at the discretion of law enforcement.

Like the Cole Memo, the Wilkinson Memo essentially provides a list of rules that, if followed, will most likely exempt tribal members from prosecution. But this, of course, depends on cannabis’ legality in the state in which the reservation lies. This is especially true for reservations where Public Law 280 applies, which allows states to “assume jurisdiction over reservation Indians,” in specific states and tribes.

Of course, the situation is further complicated, as Attorney General Jeff Sessions’ memo released in January 2018 technically rescinded the Cole and Wilkinson Memos. Hemp and its derivatives, however, are another matter altogether, and a few states where cannabis remains prohibited do allow tribes to cultivate hemp.

Native American Cannabis Industry in Action

Given all of the legal limbo regarding tribes and cannabis, it’s perhaps unsurprising that the list of tribal-owned cannabis businesses is fairly short. While Washington State is home to seven tribal-owned cannabis businesses, there are many fine examples of Native American tribes throughout other states that have opted into the cannabis industry as well.

Auburn, Washington-based Joint Rivers is one fine example of a cannabis business that is operated by the Muckleshoot Tribe. The general manager of Joint Rivers, Audria Jaggers, told CULTURE about some of the pros and cons of starting a cannabis business in Washington. “In order for a tribe to get a cannabis business setup, they have to fill out a compact with the state, and that’s where all the details of the business are delineated, which is a unique challenge for tribes,” Jaggers explained. “One benefit to tribal sovereignty and cannabis is that it allows tribes to operate within their own structure. However, that doesn’t mean we get to forego the [Washington State Liquor and Cannabis Board] or any regulations.”

Despite the legal headache, tribes in Washington still find it worthwhile to work within the cannabis industry. When asked what inspired the Muckleshoot Tribe to get into the cannabis business, Jaggers answered, “to empower their own community with knowledge, education and jobs.”

Warm Springs Cannabis is owned by the Confederated Tribes of Warm Springs in Oregon. According to its website, Warm Springs Cannabis is a 100 percent tribal-owned, operated and regulated cannabis grower and extraction company. Warm Springs Cannabis’ mission is “to produce Tribal jobs and revenues for the Warm Springs Tribe and diversify the Tribal economy.”

In New Mexico, the Tribal Council of the Acoma Pueblo and the Bright Green Group of Companies, Inc. entered into a 25-year business agreement and land lease. Bright Green Group is currently constructing a huge, cutting-edge greenhouse facility and research center for medical cannabis plants. “This is a great opportunity for the Acoma Pueblo, which will bring job opportunities and resources to the Pueblo,” Chief Executive Officer of Acoma Business Enterprises Shaun Cunningham stated. “Collaborating with Bright Green makes sense for the Pueblo in many ways. It is a great use of tribal land, provides financial benefits to the community and will be an economic driver for the local area and the State of New Mexico.”

Another Southwest tribal cannabis business is NuWu Cannabis Marketplace, a huge cannabis retailer located on a Native American reservation just north of Las Vegas.

Not all legal states have been welcoming to Native American-owned cannabis businesses. There are over 100 tribes in California, and none of them have been able to benefit from the state’s progressive cannabis laws. While a few tribes have tried to participate in legal cannabis, plants have been seized by the state government, and legal conflicts between state and tribal governments have deterred many tribes from participating in California’s cannabis market.Another state where cannabis is legal but tribes are not participating is Colorado. The only tribe in Colorado that has expressed interest in legal cannabis is the Mountain Ute tribe. “We’ve been approached by several companies wanting us. They’re telling us that we could possibly create $3 million a year for our tribe alone,” said Mountain Ute tribe Councilwoman Priscilla Blackhawk Rentz. Mountain Ute tribe trust lands go into New Mexico and Utah, which complicates matters for the tribe.

Since federally recognized tribes receive federal funding, it’s no surprise they may be hesitant to enter into the legal cannabis industry. Even though there’s some leniency in legal states, it makes sense that many tribes may choose to forego entering into these operations until there’s more clarity at the federal level.