The Montana Legislature has passed House Bill 952, allowing tribes to establish cannabis compacts with the governor’s office. This legislation is designed to assist tribes in the cannabis industry by enabling them to negotiate terms related to marijuana operations and sales.
Sponsored by Rep. Frank Smith, a Democratic representative from Poplar, the bill received bipartisan support, primarily from Democratic legislators and some majority Republicans. Advocates believe this two-page bill could lead to significant changes for Montana tribes as they face challenges in the cannabis market.
House Bill 952 was introduced to help tribes overcome obstacles created by previous legislation, particularly House Bill 701, enacted in 2021. The earlier bill imposed strict limitations on tribes, including a restriction to one combined-use marijuana license per tribe. This meant each tribe could only operate a single facility for growing, packaging, distributing, and selling cannabis, severely limiting potential growth in the industry.
Additionally, House Bill 701 restricted tribes to a single-tier canopy license, confining their operations to a maximum of 1,000 square feet. Furthermore, it mandated that dispensaries be located at least 150 miles outside of reservation boundaries in regions where cannabis sales are permitted, pushing tribes into already saturated markets.
Advocates like Patrick Yawakie, co-founder of Red Medicine, LLC, helped draft House Bill 952, drawing inspiration from a similar compact in Washington state. This compact framework allows tribes to negotiate their unique requirements directly with the state. Currently, 22 out of 29 federally recognized tribes in Washington have entered into such compacts.
The new bill enables Montana tribes to develop tailored agreements with the governor’s office, addressing various aspects of cannabis regulation on their reservations. These compacts can cover tax revenue sharing, operational guidelines for dispensaries, and limits on the cultivation and sale of cannabis.
Yawakie emphasized that the bill does not impose mandatory guidelines but rather serves as a framework for tribes to exercise their sovereignty within the cannabis sector. He described HB 952 as a proactive measure to foster intergovernmental relations, similar in nature to tribal gaming compacts.
Proponents argue that while some tribes may opt out of the cannabis industry, others view this as an opportunity for economic development and self-sufficiency. The bill is seen as a means to create a structured system that empowers tribes to manage cannabis operations according to their specific needs.
During Senate debates, Sen. Gayle Lammers, who supported the bill, highlighted that tribes were excluded from the legislative discussions four years ago when cannabis was legalized. She pointed out that many tribes are concerned about non-tribal dispensaries operating near their borders, which can lead to increased access to cannabis among youth and contribute to black market activity.
However, the bill faced opposition from several senators, including Sen. Barry Usher, who argued against the characterization of HB 952 as a cleanup measure. He noted that existing non-tribal dispensaries already operate on reservations, raising doubts about the necessity of the bill.
Sen. Jonathan Windy Boy responded to these criticisms by highlighting the challenges tribes face in regulating non-tribal dispensaries. He stated that tribes lack the authority to hold these dispensaries accountable, which complicates efforts to manage cannabis sales and their impacts on reservations.
Despite the opposition, supporters believe the implementation of compacts will help ensure compliance with state regulations while providing tribes with the tools necessary to navigate the cannabis landscape effectively. Yawakie stated, ‘Compacts are needed not just to limit cannabis access on reservations but also to allow tribes interested in processing and distribution to operate clearly within state guidelines.’
The passage of House Bill 952 marks a pivotal moment for Montana tribes seeking to participate in the cannabis industry, offering them the flexibility to create agreements that align with their economic goals and community values.
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