With states legalizing weed one by one, no two markets are quite the same. The Minnesota cannabis market definitely stands out, as it set a new standard for the alcohol and marijuana industries to work together in perfect harmony. THC drinks are everywhere, from bars to liquor shops and grocery stores—and the rest of the country has taken notice.
RELATED: Latest Trump decision could have serious impact on weed
Despite the success of the so-called “low dose” market, recreational pot sales in the Land of 10,000 Lakes are stalled. Nearly two years after the state legalized cannabis, regulated dispensaries have yet to open. However, a deal to get things up and running may expedite the process—and continue to make Minnesota one of the most unique markets in the country.
Tribal nations may get head start
A compact between the State of Minnesota and 10 of the state’s 11 tribal nations would permit the tribes to begin selling cannabis off-reservation. The tribes are currently allowed to operate dispensaries on reservations, but moving to more densely populated areas of the state would likely see business boom.
Right now, the majority of Minnesotans must drive several hours to get to a reservation with a dispensary. But with the compact almost finalized, stores could open in bigger cities like Moorhead and Saint Cloud within weeks.
The deal would give the tribes a major advantage as the state’s cannabis market continues its slow rollout. Based on the Office of Cannabis Management (OCM)’s current timeline, it will still be months before social equity and regular business licenses are awarded.
RELATED: ‘Controversial’ brand sells most weed in America
Under the draft proposal, the tribes would be able to set their own rules and regulations and potentially do business with other tribes and future OCM-licensed businesses. Dispensaries and production facilities would need at least 51 percent tribal ownership. Each tribe could run up to five dispensaries off-reservation and have 30,000 square feet of cultivation canopy.
According to MinnPost, acting OCM director Eric Taubel told a recent committee hearing, “I think Minnesota will look different than a lot of states in terms of the role tribal nations will play in our market.”
The compact has been in the works for months. While some have criticized the OCM for the delays in licensing, Representative Zack Stephenson said at the hearing that giving tribes a leg-up has always been part of the Minnesota model.
“We wanted to prioritize small over large; we wanted to prioritize Minnesota entities over people from other states. If you end up with a model that gives a big advantage to tribal nations and microbusinesses, that pretty much fits right into what we were trying to do in the beginning.”
RELATED: Alcohol and cannabis will be ‘one community,’ expert predicts
Details on the finalization of the compact are hazy, but clues indicate it could be coming soon. The White Earth Band of Chippewa announced last week it was set to open its first off-reservation dispensary in March.
Other states, like Washington, have created similar compacts with tribal nations. Minnesota tribes will have a big head start in the market, leaving them in a unique position. This is especially true if they can supply non-tribal operators with cannabis once they come online. It’s potentially a big win for tribal communities seeking new paths toward economic prosperity.
