Eastern Band of Cherokee Indians passed a referendum on Thursday to legalize marijuana. They are the first state or jurisdiction in North Carolina, and its neighboring states, to commit themselves to this policy change. It will take some time before customers are able to purchase marijuana.
According to the unofficial results published by the EBCI Board of Elections the measure was approved by a margin of 70% to 30%. The referendum doesn’t automatically legalize cannabis, but tribal leaders say they will follow the voters’ lead when it comes to the final decision.
The tribe’s enrolled member were asked: “Do you support the legalization of the possession and consumption of cannabis by persons over twenty-one (21)? And do you want the EBCI Tribal Council develop legislation to regulate this market?”
All adults aged 21 and older, regardless of tribe membership, are eligible to purchase.
The passage of measures is both an affirmation of the tribe’s autonomy and calculated risk. U.S. Rep. Chuck Edwards, R-NC, was among the Republicans who warned the tribe about legalization. Edwards wrote an op/ed for Cherokee One Feather in advance of the election in which he stated that legalization on tribal land would be ” irresponsible and I intend stop it.”
EBCI Principal chief Richard G. Sneed described the move as “a big mistake.” He told Marijuana Moment he thought that pushback from Edwards and others might have encouraged tribal members to support this measure .
Sneed stated in an interview that “the worst thing a non-Indian official can do is to tell a federally recognized Indian tribe how to conduct their business.”
Edwards followed up last week on his threat with by introducing the Stop Pot Act in Congress. This would reduce federal funding for transportation from 10 percent to all tribal governments and U.S. States that have legalized recreational marijuana.
But EBCI doesn’t flinch. Sneed told reporters that a bill of that nature would not pass in D.C. at this time.
The tribe is expecting to make millions of dollars from the legalization of marijuana on EBCI’s 57,000-acre Qualla Boundary. Forrest Parker of Qualla Enterprises LLC – the tribe’s cannabis firm – said in July, “If adult use were legalized, revenues could reach conservatively $385 million in year one and exceed $800 by year five,” according a Cherokee One Feather report .
The Qualla Boundary has been the only place where medical marijuana has been legalized in North Carolina. The Tribal Council approved regulations for the System by 2021 and opened registration to North Carolina residents in June. Parker stated that the projected revenue for this program is $206 million in year one and will reach $578 million within five years.
Qualla Enterprises, despite having grown nearly $30 million in product, has not made a single sale. The tribe instead has faced numerous delays due to obstacles like marijuana transportation, laboratory testing, and banking.
Swain County officials say that a part of EBCI’s production process involves transporting the medical marijuana on a short stretch state-owned road. The tribe-approved lab that tests marijuana products is also months behind schedule, despite the fact that the product must be tested for safety and quality.
Sneed attributed the problems to the “lack” of foresight on the part of the non-native tribe’s vendor. He said that the program was “probably six months behind schedule” and added that the tribe’s governing body over Qualla Enterprises would “take the appropriate actions to rectify these situations.”
tribal officials told The Charlotte Observer that the actual sales of medical cannabis are not expected to begin until later in the year.
The program is clearly attracting a lot of interest. On the night before the vote on Thursday, hundreds of people gathered outside Great Smoky Cannabis Company’s tribal medical dispensary for a 3-hour open house. Jared Panther, a plant technician at the tribe’s medical dispensary, said that “a lot of people want to know what we are doing and many people come out to support what we are doing.”
Qualla Enterprises has been working to gain support for expanding adult use. The sign that is posted on the building of the dispensary facing the freeway reads “Vote yes! “Vote Yes!”
This week, the company published an opinion article in Cherokee One Feather, which argued for the benefits of adult use sales. It compared the opportunity with when “thirty-years-ago, the Cherokee People built a casino.”
It says: “This was highly controversy at the time in part because no one in the region around allowed gaming.” We were not afraid of being different. Harrah’s Cherokee Casino is a great asset to this Tribe. It has helped them in ways we never imagined.
The company stated that expanding marijuana sales to adults in the future would create “400 well-paying new jobs here in Cherokee”, with the majority being filled by tribal members. The company says that 84 percent are tribal members. This is the highest percentage of any business owned or operated by the tribe.
Third-party analyses projected that legalization could generate thousands of dollars of payouts for tribal members who would share in the profits of tribe-owned business. After five years, payouts may reach as much as $12,000 for the first year.
Qualla Enterprises stated that “this amount is 50% larger than what payments could be under a medical-only cannabis system.” Our employees will be able to offer unmatched experience when North Carolina and South Carolina will follow the Cherokees’ lead and legalize Adult-Use Cannabis.
The op/ed also cited a poll conducted statewide that showed 73 per cent of North Carolina residents supported legal medical marijuana. It also cited estimates that the illicit cannabis industry in North Carolina would reach $3.2 billion by 2022.
A medical marijuana bill passed by the North Carolina Senate this session was stalled at the House due to an informal rule requiring that bills have the support of the majority of Republicans in the chamber in order to be brought to the floor. The legislation may still be considered next year.
John Bell, the House Majority leader (R), said that there was passion on both sides. “We have some members in our caucus who are 100 percent for it, and others that are 100% against it,” said House Majority Leader John Bell (R) in July.
Sneed noted in an interview with Marijuana Moment that many state legislators have shown interest in EBCI’s marijuana operation, and even toured the location, including North Carolina House majority leaders and Senate representatives, as well as House members of both political parties. He noted that North Carolina had toyed with the idea for a medical marijuana bill during the past two sessions. “We thought it would pass.”
Sneed emphasized, despite the public controversy between EBCI’s critics and the outside world regarding the referendum, that cannabis was only one part of the relationship the tribe has with local and state officials. From his vantage point, cannabis represents “very little” in the overall picture.
It’s a minor issue on the radar, despite the fact that it appears to be an important topic in the media. He said: “This doesn’t really come up in our discussions.” Then he added, “Maybe this is the elephant in the living room. I don’t even know.”
As more states legalize marijuana, tribal governments have stepped in to the market. Notably, in Minnesota, where state lawmakers passed an adult-use marijuana program earlier this year, tribes are leading the way.
White Earth Nation, which also began sales in August, recently announced plans to launch a mobile marijuana retailer. And the Red Lake Nation, which also began sales in August, recently announced plans to launch a mobile marijuana retailer–effectively a cannabis “food truck” that can travel and do business on tribal land throughout the state. The Leech Lake Band of Ojibwe is another tribe in the state that’s also moving towards legalization.
Minnesota’s marijuana law allows the governor to enter into agreements with tribal governments that allow them to operate in non-tribal areas of the state. This option has been seen as a means to sell legal cannabis before the state license, which is expected in 2025. Last month, cannabis regulators reported that so far “several tribes” have expressed interest.
In 2020, it’s thought that the Oglala Sioux Tribe in South Dakota will be the 1st tribe in the U.S. to vote for the legalization of marijuana in a state where it was still illegal.
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Photo by Philip Steffan.
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