Governor Tim Walz’s negotiations with 10 of Minnesota’s 11 tribal nations regarding the cannabis industry are close to being finalized, according to a report by MinnPost. These agreements would allow tribal nations and businesses they license to have a share of the new cannabis industry, both on and off reservation land. The negotiations have been ongoing since last spring, and a draft of the language was obtained by MinnPost.
The agreements would permit tribes to operate up to five retail stores off reservation, with a cap of 50 stores and 300,000 square feet of plant canopy. This early entry into the market could provide tribes with a strong foothold, as non-tribal businesses continue to face delays in obtaining licenses and starting operations.
While there are concerns about potential monopolies for tribes and the lack of taxation on reservation land, the agreements leave room for further negotiations on revenue sharing with the State of Minnesota. It is important to note that the state cannot collect taxes on reservation land, but discussions with the Department of Revenue are ongoing.
The negotiations also have implications for other areas where tribes and the state interact, such as sports betting. Republican representative Nolan West has expressed hesitation in working on the sports betting issue due to his concerns about the cannabis agreements. Overall, the ongoing negotiations between Governor Walz and tribal nations are a significant development in the cannabis industry in Minnesota.
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