Michigan’s Governor has signed a bipartisan bill that allows state-licensed cannabis businesses to conduct business with tribal cannabis entities.
The Senate passed SB 180 and SB179 in June, and the House of Representatives approved them earlier this month. On Thursday, Gov. Gretchen Whitmer, (D), signed them into law.
SB 180 is the main piece of legislation, and it was sponsored by Senator Roger Hauck (R). SB 179 by Sen. Jeff Irwin, sponsored on the Democratic side, contains adjustments to tax revenue allocation. Both bills are tied together, which means that neither would have been able to take effect until both were passed.
According to an analysis by House staff, Michigan’s legal marijuana industry and tribal cannabis businesses on Indian land “are currently separated silos,” meaning that products cannot be sold between the two businesses. The bills aim to maintain a level playing ground by requiring that tribal businesses pay the same rate of tax as other businesses, while allowing the sale of products between the two types.
SB180 allows the state’s Cannabis Regulatory Authority to enter agreements with tribal governments regarding marijuana-related regulations and clarify that it isn’t illegal for a company licensed by the state to transport cannabis to a tribal marijuana enterprise. The bill will exempt tribal cannabis businesses that operate on tribal lands, from the 10 percent state marijuana excise taxes, under certain conditions. However, tribes who enter into agreements with CRA must impose a tax of at least 10%, which they will retain.
SB179 will, on the other hand, funnel a portion back to tribes of state cannabis taxes based on sales attributed to retailers or small businesses located on their lands. Prior to the new law, municipalities were entitled to a share of the Marihuana Regulation Fund. This fund is made up of revenue from the marijuana excise taxes and industry fees. A similar portion will be returned to the tribal governments under the new law.
The House Fiscal Agency reported that the law will require that, “to the extent marihuana retailers and microbusinesses located on tribal land, the share in revenue that would otherwise be distributed to counties or local governments, [will] instead, be allocated to each Indian tribe.”
The new laws will come into effect immediately.
CRA, Michigan Cannabis Industry Association, and cannabis company Common Citizen are among the supporters of the bill. The Grand Traverse Band of Ottawa & Chippewa Indians, and the Saginaw Chippewa Indian Tribe were among the tribal governments that supported the passage of the legislation.
A change made in Michigan by the Michigan Civil Service Commission in July ended pre-employment marijuana tests for most government workers. This change also allows those who have already been penalized for positive THC test to get the sanction revoked retroactively.
Michigan voters approved the legalization of adult-use marijuana in 2018. Sales will begin next year.
Michigan has sold more than $277 million worth of cannabis products between adult-use marijuana and medial marijuana in July. This is a new record.
These sales are consistently breaking records in the state, even though the cost of marijuana is at record lows. The price of an adult-use ounce of cannabis hovers around $98. By comparison, in December 2021 the price of an ounce would have been about $180.
A bill recently introduced to the legislature will legalize the use of psychedelic plants as long as the activities such cultivation and distribution are not done for money or any other valuable consideration.
Last month, state legislators called on the U.S. Congress and Department of Veterans Affairs to invest in research and non-technology treatments such as psychedelics for treating psychological trauma caused by military service.
As more states legalize marijuana, tribal governments have entered the business. Notably, in Minnesota, where state lawmakers passed an adult-use marijuana program earlier this year, tribes are leading the way.
White Earth Nation authorized marijuana sales in July and opened a cannabis shop for adult use. And the Red Lake Nation, which also began sales in August, 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 not expected until 2025. In August, cannabis regulators reported that so far “several tribes” have expressed interest.
Last month, 66 New York state legislators urged Gov. Kathy Hochul (D), to Sign a Bill that would Allow licensed marijuana producers to Sell Products to Tribal Retailers.
The Eastern Band of Cherokee Indians in North Carolina, which has marijuana illegal for recreational and medical purposes, voted 70-30 to legalize adult use cannabis on September 1, despite threats by some North Carolina legislators. The tribe has passed 2021 regulations for a medical cannabis system. Registration for this system was opened to all North Carolina residents in June.
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 the plant was still illegal.
The ‘uniqueness’ of New Hampshire’s proposed state-run marijuana stores could create federal liability, AG’s office says
Photo by Brian Shamblen.
The first time Marijuana Moment was published, the post Michigan Gov. Signs Bills to Allow Marijuana Trade With Tribal Businesses.
