Tribal Participation in the California Cannabis Market
Tribal Participation in the Legal Cannabis Industry California Bureau of Cannabis Control-Cannabis Advisory Committee Los Angeles, California June 28, 2019 CALIFORNIA NATIVE AMERICAN CANNABIS ASSOCIATION-CNACA HTTPS://CNACA.US
CNACA Member Tribal Nations Big Valley Band of Pomo Indians Tolowa Dee-Ni Nation Timbisha Shoshone Tribe Santa Rosa Band of Cahuilla Indians Pomo/Wailaki Bridgeport Indian Colony Habematolel Pomo of Upper Lake Tule River Tribe Sycuan Band of the Kumeyaay Nation Guidiville Band of Pomo Indians Iipay Nation of Santa Ysabel Mooretown Rancheria of Maidu Indians Redding Rancheria Los Coyotes Band of Cahuilla & Cupeno Indians Hopland Band of Pomo Indians Utu Utu Gwaitu Paiute (Benton-Paiute) Manzanita Band of the Kumeyaay Nation Campo Kumeyaay Nation Fort Independence Indian Community of Paiute Indians Tribal Sovereignty and the Responsibilities of Tribal Governments
Tribal Sovereignty The inherent authority of tribal nations within the U.S. to govern themselves The ability of tribes to manage and control their own destinies and to operate without incursion into their legal and business affairs by the state Federal government interpretation – domestic dependent nations Tribal Sovereignty and the Responsibilities of Tribal Governments
Responsibilities of Tribal Governments Enact laws and statutes to regulate behavior on tribal lands Exercise regulatory authority over businesses located on tribal lands Provide essential government services to the tribal general membership Ensure economic self-sufficiency of the tribal nation Tribal Nations and Cannabis
Tribal experience in industry regulation (gaming) Most tribes are located in remote locations which are unsuitable for gaming, but which are advantages in cannabis cultivation, manufacturing, and processing Most reservations looking to cannabis for potential economic development fit the definition of underserved communities targeted for social equity initiatives High unemployment Victims of an oppressive criminal justice system Targets of illegal drug cultivators and manufacturers CNACA’s Efforts at Engaging the State
Elements of Last Year’s Proposed Legislation (AB 924) Establish a framework for cooperation and exchange of information between state cannabis regulatory agencies and tribal cannabis commissions/regulatory agencies Require adoption and implementation of tribal licensing criteria, cannabis activity regulations, laboratory testing and quality assurance, environmental protection, cannabis packaging and labeling, cannabis waste disposal protocols, and accountability systems no less stringent than regulations adopted by the State of California Provide for the adoption and implementation of tribal standards and protocols no less stringent than those adopted by the state pertaining to the cultivation, manufacturing, transportation, advertising and marketing, and retail sales of cannabis in the California cannabis market Emphasizes the commitment by tribal nations to ensuring the health and safety of California consumers as it pertains to cannabis products cultivated, manufactured, and sold on tribal lands Commercial Cannabis Activity of Tribal Lands
Advantages of Commercial Cannabis Activity on Tribal Lands Rural tribal locations keep commercial cannabis activity away from congested urban and suburban neighborhoods Tribal cannabis regulatory commissions and agencies absorb the cost of regulatory, security, and surveillance personnel dedicated to ensuring regulatory compliance and accountability, relieving state cannabis regulators from these tasks on tribal lands Tribal nations have a long history of successfully regulating commercial enterprises located on tribal lands in California, including the well-respected tribal gaming industry Taxes collected by cities, counties, and the state from the sale of tribal-generated cannabis products through state-licensed retailers remain with those governments Example of Regulated Cannabis on Tribal Lands
Iipay Nation of Santa Ysabel – Santa Ysabel Botanical Facility Tribal Statute Adopted in August 2014, Amended June 2018 Regulated by the Santa Ysabel Tribal Cannabis Regulatory Agency (TCRA)
Santa Ysabel TCRA
Suitability Backgrounds and Licensing of Business Entities and Individual Employees Enforcement of nearly 200-pages of Regulations Fines to Drug Prevention Initiatives Manage Seed-to-Sale Tracking, Dispensary POS and Accountability Systems Live Surveillance Monitoring BSIS-Certified Security Officers Cannabis Regulator and Retail Staff Training Santa Ysabel TCRA Cannabis Waste Disposal Transportation Audits Processing & Packaging Quality Control Cannabis Enterprise Polices & Procedures Emergency Response Procedures Emphasis by Tribal Cannabis Enterprises
Safety and security of cannabis operations Consumer safety and quality assurance Accountability of cannabis products Incorporation of Industry Best Practices Protect the General Welfare of the Tribal Community
Absence of Tribal/State Coordination
Tribal Nations located in California restricted to conducting all aspects of cannabis commerce within the Tribe’s exterior boundaries are free to: Sell cannabis products well below prevailing California market prices Sell cannabis products that do not meet California laboratory testing, packaging, and product tracking standards Set cannabis product taxes at any level desired by the tribe, and retain all taxes collected from cannabis product sales Recommendations for the Advisory Committee
Encourage state government to work with tribes on a mutually respectful government-to-government basis to establish a mechanism by which sovereign governments can work collaboratively for the benefit of California’s citizens and underserved tribal communities Encourage state cannabis regulatory agencies to interact with tribal cannabis regulatory agencies and commissions in the State to share regulatory experience, industry best practices, and trends with the goal of maximizing consumer protection, safety and security, and accountability of cannabis- containing products