The White Earth Nation is set to make history as the first tribal government in Minnesota to open recreational marijuana dispensaries off tribal land, following the signing of a compact agreement by Governor Tim Walz on Tuesday.
Under the agreement, the White Earth Band of Chippewa is authorized to open up to eight dispensaries across the state. Waabigwan Mashkiki, the tribe’s cannabis enterprise, plans to launch its first off-reservation store as early as this weekend in Moorhead, with another in St. Cloud expected to open by mid-June.
Eric Taubel, interim director of the state’s Office of Cannabis Management, praised the compact as a national model. “We’ll be the first state where not only are tribes operating cannabis businesses off tribal land, but they’re doing so under tribal regulatory authority,” he said. While the tribe will self-regulate its stores, the state will retain secondary oversight, including annual inspections and product embargos when necessary.
The agreement allows the White Earth Nation to not only sell marijuana products but also operate cultivation, manufacturing, wholesale, transportation, and delivery services off-reservation. However, limits are in place, including a cap of one dispensary per city and no more than three per county.
Although tribal cannabis businesses will be exempt from local marijuana ordinances, they must comply with other local regulations. All products sold must be tested and labeled under state standards. Off-reservation sales will be subject to state and local taxes, including Minnesota’s 10% cannabis gross receipts tax.
Waabigwan Mashkiki CEO Zach Wilson said he’s had 25 to 30 staff members working at the tribe’s dispensary in Mahnomen in anticipation of the Moorhead opening. Now that the compact is signed, the business can legally transport cannabis from its grow site in Mahnomen to Moorhead.
“We’re proud to be a part of something so historic and monumental,” said Wilson. “This sets a precedent not just in Minnesota but for tribal nations across the country.”
Taubel noted that five of Minnesota’s 11 tribes are actively negotiating similar agreements, with the next one expected in the coming weeks. While the state could theoretically see over 80 tribally licensed dispensaries open off-reservation, Taubel said cost will likely limit most tribes to three or four locations within the next two years.
