Ongoing negotiations between Gov. Tim Walz and a group of Minnesota tribal nations could make the tribes major players in the state's recreational cannabis industry, both on and off reservation land including in urban areas.
Walz was directed by last year's House File 100 to negotiate "in good faith" with any tribes interested in entering the cannabis business, both medical and recreational. While the law acknowledges that sovereign tribes can act on their own land without agreement with the state — and three tribes have either opened or announced plans to open cannabis dispensaries on reservation — the law stated that a compact could "proactively address jurisdictional issues related to the regulation of the cannabis industry."
Walz administration officials say talks are progressing and include discussions of off-reservation cannabis businesses owned by tribes, as well as business interactions between tribal entities and state-licensed businesses. The negotiations involve 10 tribes, though not all are expected to get into cannabis cultivation and sales, said the officials who agreed to speak to MinnPost on condition that their names not be used because negotiations are ongoing. The one tribe not taking part is the Upper Sioux Community.
The state is represented by staff from the Office of the Attorney General, the Office of Cannabis Management, the governor's office and outside legal counsel Mark Levitan, hired to help with the negotiations. The state has not engaged in negotiations for new compacts with tribes for decades and wanted outside legal expertise on cannabis law and tribal relations, which Levitan has, the officials said.
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