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The state of Minnesota and White Earth have finalized a 

. The almost 90-page document lays out the terms and conditions under which the tribe may regulate and operate cannabis businesses outside tribal lands.  

The news came in a short announcement from Gov.Tim Walz’s office on Tuesday. 

Interim director of the state’s Office of Cannabis Management Eric Taubel said Minnesota is the first in the nation to sign a compact that recognizes a tribal nation’s authority to regulate its cannabis businesses outside tribal lands. 

“I think it’s a great statement about Minnesota and Minnesota values, and the respect we have for our neighbors, whether it’s a literal next-door neighbor or the nations that we share territory with,” said Taubel. “It’s an opportunity for tribes to succeed in a sort of marketplace that can drive substantial benefits to their members.”

Taubel said Minnesota is the first in the nation to sign a compact that recognizes a tribal nation’s authority to regulate its cannabis businesses outside tribal lands. White Earth Nation is the first tribe in the state to sign a cannabis compact with the state. 

“What the compact really tries to do is delineate in a sense who’s doing what and where are they doing it, and then importantly, on top of that, which of the two governments is in charge of regulating those actions when they occur, either on or off tribally regulated lands,” said Taubel. 

Waabigwan Mashkiki, the tribe’s cannabis enterprise, expects to open a dispensary off tribal lands in Moorhead in the coming week, according to CEO Zach Wilson. Wilson says the cannabis enterprise plans to open a St. Cloud location by the end of June, with the goal of opening a maximum number of eight dispensaries around the state off tribal lands. 

“Very excited to see it come to fruition. It’s just such a historical moment for not only White Earth and the tribes in the state of Minnesota, but really this is going to help set a precedent nationwide of what type of compacts can be drafted, can be negotiated and worked on throughout the country,” said Wilson. “So very proud of the team, for Waabigwan, the White Earth Reservation RBC and tribal council. It's just a very, very humbling, exciting moment.”  

Since Minnesota legalized cannabis two years ago,

more than half of the tribal nations located

in the state have entered the cannabis industry on reservation lands. 

In addition to White Earth Nation, several tribes operate dispensaries on their respective lands, including Red Lake Nation, Leech Lake Band of Ojibwe, Prairie Island Indian Community,

Since the state legalized cannabis, Red Lake, White Earth, Prairie Island and Mille Lacs Band of Ojibwe have constructed grow facilities on their lands.

Lawmakers in 2023 envisioned a role for tribally regulated cannabis markets. The resulting state law authorized the governor to negotiate compact agreements.  

“We also set forth one of the key elements that the state sought in these compact negotiations, which is a uniformity of standards and uniformity of experience for customers and consumers in the marketplace,” said Taubel. 

Under the terms of the new compact, White Earth Nation must set regulations for sales outside tribal lands that

“meet or exceed” the state’s cannabis regulations.

 governing cannabis business practices —from how cannabis is cultivated and packaged, to how it is sold at tribal dispensaries. Those regulations largely mirror the regulations put in place by the state for adult-use recreational cannabis. White Earth’s law will now regulate the sale of cannabis at tribally owned dispensaries around the state. 

White Earth’s three-person cannabis commission will now also oversee cannabis business activity outside the reservation. For the past year and a half, White Earth Nation’s tribal regulatory agency has overseen the tribe’s cannabis dispensary and grow facility. 

The state’s Office of Cannabis Management will work with the tribe’s regulatory agency to perform audits of the tribe's off-reservation operations.

White Earth Nation’s cannabis enterprise will also be required to track its products from “seed-to-sale.” The company uses the same system used by the state for tagging and tracking marijuana plants at its grow facility and dispensary, according to CEO Zach Wilson. 

The Minnesota Department of Revenue is working on a separate tax agreement with White Earth Nation, according to Ryan Brown, a spokesperson for the Minnesota Department of Revenue.  

“We will be able to share those agreements and speak to them once they have been finalized,” Brown said. 

 by a national law firm specializing in cannabis law and policy found that the state’s cannabis industry could generate as much as $1.5 billion in sales by the end of the decade. 

Melissa Olson

Author

The state of Minnesota and White Earth Nation have finalized a cannabis compact, laying out an agreement for tribally run dispensaries outside tribal lands.

A cannabis seedling with the sky in the background

Tribal cannabis dispensaries to open across Minnesota with White Earth Nation tribal-state compact

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