“Is this just a scare tactic? It’s kind of hard to say at the moment.”
Jeff Doctor, executive director of the National Indian Cannabis Coalition, spoke with ICMN recently about announcements by the Trump administration of a pending crackdown on recreational marijuana sales. Last week, White House Press Secretary Sean Spicer announced there would be “greater enforcement” of federal laws against the use of marijuana. Then on Tuesday, newly-appointed Attorney General Jeff Sessions told state attorneys general he felt the legalization of marijuana should be resisted.
Doctor, a member of the Seneca Nation, and his organization NICC, provide information and assistance to tribes who wish to enter the Native cannabis industry. He points out that strictly enforcing federal marijuana laws would put lots of people out of work.
“So what are we really talking about here? Are you really going to try and take away jobs? Are you really going to try and take away income?”
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Background on Native Cannabis Rights
In 2013, the Department of Justice issued a memo outlining what they would and would not prosecute in regard to regulated marijuana sold in states where it was legal. Known as the “Cole Memo,” it “prioritized” the department’s efforts into eight areas, such as preventing marijuana sales to minors, keeping the money out of the hands of drug cartels, and keeping marijuana from crossing state lines. In other words, in states where it was legal, the DOJ wouldn’t bust state-regulated marijuana sales, except when they violated the eight points.
In 2014, the DOJ issued the “Wilkinson Memo” written by Director Monty Wilkinson. It pointed out federally recognized tribes had the right as sovereign nations to legalize marijuana on their reservations if they wished. If a tribe did, the DOJ would treat them the same as it would a state that had legalized marijuana.
In 2015, the Suquamish and Squaxin Island Tribes entered into a compact with the State of Washington to work together in a government-to-government arrangement whereby the tribes would abide by the state’s cannabis regulatory apparatus. The 37 percent excise tax normally paid to the state would instead be paid to the tribe for marijuana sold on tribal land, potentially providing millions in revenue. Both the Suquamish and the Squaxin Island tribes now have retail stores on their reservations selling recreational marijuana from state-regulated growers.
Many other tribes have since begun exploring the possibilities of Native cannabis businesses. Notably, the Puyallup became the third tribe to enter into a compact with the State of Washington, this time for a state-regulated cannabis testing facility where marijuana from state growers will be tested for potency and traces of pesticides.
Federally, marijuana is still considered a schedule I controlled substance, the same as Angel Dust and LSD, but as of November eight states and the District of Columbia have legalized recreational use and 28 states have legalized medicinal use. California became the largest state to legalize recreational use.
Money, Jobs and Sovereignty
Because of their status as sovereign nations, federally recognized tribes are in a unique position to benefit from the current movement of cannabis from sales on the black market to legal sales within a state-regulated industry.
Additionally, Doctor mentioned two recent articles that give some idea just how vast the market is. One, in Bloomberg, reports experts believe the marijuana market will reach $50 billon per year within ten years. The other, in Forbes, predicts by 2020 the cannabis industry will create more jobs than the manufacturing industry in the U.S.
“You’re talking economic development, collecting multiple taxes, which is helping different programs. Not to mention the jobs that are created,” Doctor said.
In a statement to ICMN, the Suquamish Tribal Council described how their retail marijuana store, Agate Dreams, has benefitted the tribe:
“Our regulation of marijuana, from seed to sale, is integrated with Washington State and has resulted in much-needed tax revenue for the tribe, created jobs and allowed us to set aside funds for the restoration of our tribal homelands.”
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Will Tribes Be Scared Off?
In light of all the revenue and jobs available to tribes in the cannabis industry, Doctor wonders why the Trump administration is taking such a strong stance. He feels this “get tough” attitude will scare off tribal leaders from exploring the possibilities of entering the cannabis industry.
“When you hear these kind of statements made by the Trump administration, why would you as a tribal leader want to engage in the industry? Why would you want to potentially affect federal funding? Why would you want to affect the programs within your community?”
The sad part, according to Doctor, is recreational cannabis is only one part of the industry, yet tribes may also avoid the other parts, such as medicinal marijuana and the growing industrial hemp market, due to the now increased fear of a federal crackdown.
Don’t Be Scared
The truth is, any federal opposition to recreational marijuana will most likely take years and play itself out in the federal court system. The states are well-organized and funded and will no doubt fight hard to retain the millions in tax revenue they receive from marijuana sales. The compacts the Suquamish, Squaxin Island and Puyallup tribes have with Washington State specify if the federal government attempts to stop sales, the states will stand alongside the tribes and assist them in defending the tribe’s rights.
Because of this, Doctor thinks it might actually be a good time for tribes to enter the cannabis industry:
“You don’t need huge amounts of money to invest. You can use what you have. Whether it’s small scale or not, at least get your toe in the water, Create a few jobs. See where it goes. And depending on where it goes with the administration and the Attorney General, you could be set-up for potential success in the industry by being able to be scalable at the end of the day.”
So tribes shouldn’t be scared of starting cannabis businesses, according to Doctor. Beyond the White House’s flimsy scare tactic lies the potential for greater economic development and stronger sovereignty.