Many Tribes Second Guess Marijuana Operations


Ryan Allway

November 19th, 2015

Policy, Top News


The Department of Justice (“DOJ”) issued a memo to U.S. attorneys last year directing them not to prioritize prosecuting federal marijuana laws in cases where Native American tribes have legalized the drug for medical or recreational use, so long as the tribes took measures to ensure that pot was kept out of the hands of children, didn’t finance criminal activities, and didn’t cross federal or state jurisdictions where the drug remains illegal.

While the Drug Enforcement Administration (“DEA”) has largely kept its hands off of states falling under the same guidance, a series of raids conducted on Native American tribes suggests that they are being treated very differently. Tribal operations in California and Wisconsin were raided by federal agents, which prompted a South Dakota tribe to burn its crop amid fears that it would be next in a federal raid – raids that seem to contradict the DOJ’s memo.

The DEA insisted that the California tribes that it raided planned to distribute marijuana off of its tribal lands, while the large-scale operations may have been financed from non-tribal third party sources. In Wisconsin, federal agents alleged that a tribe approved to grow hemp was in fact growing marijuana that contained THC – the psychoactive component of marijuana, while out-of-state personnel may have had some involvement.

The Flandreau Santee Sioux tribe in South Dakota was the first to approve recreational marijuana under tribal law with a vote in June. With plans to open the first marijuana resort on its Sioux Falls reservation, the tribe was also one of the most aggressive about entering the burgeoning cannabis industry. But after speaking with authorities that signaled a raid was possible, the tribe burned all of its marijuana plants and temporary abandoned its plans.

Tribes operating in states where marijuana has been legalized have faced fewer hurdles and have continued in some cases. In Washington, the Squaxin Island Tribe just opened a store last week for the retail sale of marijuana. The tribe also worked out an agreement with the state governing taxation and how the operations should proceed.

In the end, many tribes are now waiting on the sidelines until the federal government comes out with more cohesive legislation governing marijuana.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


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