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Gov. Tim Walz Signs First Tribal-State Cannabis Compact
The agreement outlines how the state and the White Earth Nation will address jurisdictional issues in the cannabis industry.
On May 20, Gov. Tim Walz signed the first tribal-state compact authorized under Minnesota’s 2023 cannabis law. The agreement with the White Earth Nation marks the first such compact with any of the 11 tribal nations sharing territory with Minnesota. While each tribal-state compact will be unique, they are expected to share similarities with this initial agreement.
View the cannabis compact between the White Earth Nation and the State of Minnesota (pdf).
Compact details
The agreement outlines how the state and the White Earth Nation will address jurisdictional issues related to the cannabis industry. It also establishes a legal framework, recognizing White Earth’s tribal regulatory agency, which will license tribal enterprises and oversee enforcement of the the tribal nation’s civil cannabis regulations. The standards must meet or exceed those set by the state’s Office of Cannabis Management (OCM).
The compact authorizes the tribal nation to open eight off-reservation cannabis retail locations. These are limited to one retail location per city and three per county. Tribal retail sites must comply with all applicable local ordinances not specific to cannabis, including zoning rules, statutory setbacks, and local hours of operation.
The compact also governs testing and tracking of cannabis products, along with packaging and labeling requirements. Additionally, the compact requires the tribal nation to enter into a tax agreement with the Minnesota Department of Revenue for sharing taxes collected from tribally owned off-reservation cannabis businesses.
Read more information on the compacting process and its implications for cities on OCM’s website.