Tribes can grow, sell marijuana on lands, DOJ says

GRANTS PASS, Ore. – Indian tribes can grow and sell marijuana on their lands as long as they follow the same federal conditions laid out for states that have legalized the drug, the U.S. Justice Department said Thursday.

Some advocates said the announcement could open new markets across the country and give rise to a rich new business on reservations, not unlike the advent of casino gambling. Others said it was too early to tell; many tribes oppose legalization, and only a handful of tribes have expressed any interest in the marijuana business.

Oregon U.S. Attorney Amanda Marshall said the Justice Department policy addresses questions raised by tribes about how legalization of pot in states like Oregon, Washington and Colorado would apply to Indian lands.

“That’s been the primary message tribes are getting to us as U.S. attorneys,” Marshall said from Portland. “What will the U.S. as federal partners do to assist tribes in protecting our children and families, our tribal businesses, our tribal housing? How will you help us combat marijuana abuse in Indian Country when states are no longer there to partner with us?”

Whether tribal pot could become a major bonanza rivaling tribal casinos is a big question. Marshall said only three tribes – one each in California, Washington and the Midwest – have voiced any interest. She did not identify them.

Seattle attorney Anthony Broadman, whose firm represents tribal governments throughout the West, said the economic potential is vast. “If tribes can balance all the potential social issues, it could be a really huge opportunity,” Broadman said.

But many in Indian Country are wary of compounding existing drug and alcohol problems by growing and selling pot.

The Yakama Nation in Washington recently banned marijuana on the reservation and is trying to halt state-regulated pot sales and growth on lands off the reservation where it still holds hunting and fishing rights.

The Hoopa Valley Tribe in Northern California has battled illegal pot plantations on its reservation that have damaged the environment.

In Oregon, former Klamath Tribes Chairman Jeff Mitchell said communities everywhere deal with drug and alcohol issues, and tribes are likely to proceed carefully.

“I have confidence in tribal government that they will deal with it appropriately and they’ll take into consideration social and legal aspects, as well as other implications that go along with bringing something like that into a community,” Mitchell said.

Marshall warned that marijuana is still illegal under federal law. Problems could arise for tribes with lands in states that outlaw marijuana because of the likelihood that pot would be transported or sold outside tribal boundaries, she said.

Tribes selling marijuana may not be subject to state and local taxes, allowing them to undercut off-reservation sales. In Washington, heavy taxes on recreational pot have pushed the price to about twice the price at medical marijuana dispensaries.

Marshall said with 566 tribes around the country recognized by the federal government, there will be a lot of consulting going on between tribal leaders and federal prosecutors. As sovereign nations, some tribes have their own police, some rely on federal law enforcement, and some call in state and local police.