Minnesota Gov. Tim Walz (DFL) has signed a landmark agreement with the White Earth Nation that will allow the tribe to operate up to eight retail marijuana stores across the state. Already the tribe is preparing to open storefronts in Moorhead and St. Cloud.
Walz signed the new compact on Tuesday, making White Earth Nation—also known as the White Earth Band of the Minnesota Chippewa Tribe—the first tribal entity in the state to reach an agreement with the state on selling legal cannabis outside of tribal land.
Notably, Minnesota’s 2023 cannabis legalization law allows tribes within the state to open marijuana businesses before state licensing of businesses begins. Following the law’s enactment, a number of tribal governments, including White Earth Nation, the Red Lake Band of Chippewa Indians and the Leech Lake Band of Ojibwe, made early moves to enter the market.
Minnesota officials said the next compact with another tribe could be signed within a few weeks.
The new agreement with White Earth will allow the storefronts to be located off tribal land but still be regulated by tribal authorities. It also requires at least some distance between the storefronts, with the tribe limited to no more than one retail location per city and three per county.
Under the compact, White Earth will also be able to open marijuana cultivation and manufacturing facilities off of tribal land and engage in wholesale transactions, transportation and delivery of cannabis.
The interim director of the Minnesota’s Office of Cannabis Management (OCM), Eric Taubel, described the state’s new deal with White Earth Nation to local reporters as a “nation-leading approach to cannabis compacting.”
“We’ll be the first state where not only are tribes operating cannabis businesses off tribal land, but they’re also doing so under tribal regulatory authority,” he told The Minnesota Star-Tribune, adding that Minnesota cannabis regulators will still be permitted to conduct an annual facility inspection and can take further steps if they believe stores are selling risky products.
Taubel also said that while the White Earth compact allows up to eight dispensary locations, he doubts that any of the 11 recognized tribal nations in Minnesota will actually open that many.
“Candidly, I don’t suspect any tribe will get past about three to four stores for the next two years just because of the actual cost in setting up these stores,” Taubel said.
Zach Wilson, CEO of Waabigwan Mashkiki—White Earth Nation’s cannabis business—told the Star-Tribune that the first off-reservation store could open as soon as this weekend.