Native American Tribal Communities and the Cannabis Industry

CannaBlog by Cory Parnell, COO of Bridge West, CPAs and Advisors to the Cannabis Industry

All across the United States, the “green wave” of cannabis legalization is changing the way we view healthcare, justice system reform, civil liberties, and other important issues. Currently there is an increased amount of attention surrounding how the legal cannabis industry operates on Native American tribal lands and how Native people can gain greater representation in the larger industry.

Several recent examples with developments all across the country indicate a larger role for tribe-grown cannabis, including a high-profile tribe cannabis venture in Long Island, NY, and the success of a native-led venture in South Dakota. The growing footprint of a Native American cannabis advocacy group promises a bigger presence for this important—and historically underrepresented—segment of the American cannabis industry.

With that said, let’s take a closer look at a few of the most exciting developments in the world of Native American cannabis.

Tribe Cannabis: A Growing Market Presence for Native American Ventures

Once upon a time, the entire United States was native land. Today, the picture couldn’t be more different, with tribal reservations comprising roughly 2.3% of the total area of the United States. However, while Native Americans remain underrepresented in the political and cultural spheres, a handful of cannabis ventures are trying to rewrite the story.

Last year, the Saint Regis Mohawk Tribe launched its own regulated cannabis industry. This move made it one of the first in the United States to license its tribal members and tribal member-owned businesses. In Nevada, five Native American tribes came together to form the Inter-Tribal Marijuana Commission. This collaborative effort has led to a self-regulated cannabis industry now providing widespread positive impacts on its communities.

Still, these success stories may not accurately depict the state of tribal involvement in the cannabis industry. As a recent article in Politico suggests, for many tribes, navigating a business environment that’s historically been unfriendly to native peoples remains a challenge. While these issues are garnering newfound attention in Congress, it remains to be seen what recognitions and protections Native tribes will be granted.

While tribes operate with sovereignty within their borders, they are often required to operate under state guidelines when creating a cannabis industry on their lands. In addition, in states like California for example, Native communities wishing to operate a cannabis industry must completely give up their sovereignty in order to participate in the regulated cannabis market. In states where cannabis is not legal, Native tribes often fear federal enforcement and raids.

That’s one reason many Native cannabis advocates hail the creation of associations like the Native American Cannabis Alliance (NACA), The National Indian Cannabis Coalition (NICC) and the Native American Hemp Association (NAHA). Groups such as these are forming in direct response to the unique challenges Native American tribes are facing. They share the goal of ensuring that tribes have a direct, equitable and sustainable pathway to the legal cannabis industry.

In leveraging tribes’ unique historical experience cultivating cannabis, these groups hope to empower native people and tribes to benefit from the legal cannabis boom. They also hope to leverage their potential to circumvent certain Federal restrictions due to their unique legal status.

Bridge West CPAs: Expert Guidance and Forecasting in the Cannabis Sector

The legal cannabis industry is nothing if not fast-moving. That’s why Bridge West CPAs keep a close eye on news and trends. With a wealth of experience in the cannabis and hemp industries, our CPAs and advisors have guided hundreds of U.S. and international cannabis businesses. We are proud to serve Native American Tribal Communities seeking to navigate the regulatory and business challenges of the cannabis industry.

For more information, download our brochure outlining the services we offer to support Native American Tribal Communities seeking to enter the cannabis industry.

If you are in need of skillful and clear-eyed guidance, we invite you to contact us. Now into our second decade of helping entrepreneurs navigate cannabis regulations, conduct business valuations, and comply with state and IRS audits, Bridge West CPAs & Advisors stand ready to help get you on the road to success.

Do you have any questions about how cannabis regulations affect Native American tribal ventures? Don’t hesitate to reach out; we’re here to help.