Pubdate: Sun, 13 Dec 2015 Source: Milwaukee Journal Sentinel (WI) Copyright: 2015 Journal Sentinel Inc. Contact: http://www.jsonline.com/general/30627794.html Website: http://www.jsonline.com/ Details: http://www.mapinc.org/media/265 Author: Cary Spivak FEDERAL RAIDS COOL TRIBES' ZEAL FOR POT But Ho-Chunk, Menominee, Others Weigh Getting in Business Nothing kills a buzz like the sight of federal agents seizing tens of thousands of marijuana plants from a tribe's reservation. One year ago, a wave of euphoria swept Indian country when the U.S. Department of Justice released a memo that many read as the feds giving the nation's more than 560 tribes an unrestricted green light to grow and sell marijuana on their reservations - even in states such as Wisconsin where weed remains illegal. "There was a lot of excitement last year," said Robert Williams, an University of Arizona law professor and an expert on Indian law. "Tribal leaders went to conferences, boutique law firms popped up and consultants were telling (tribal leaders) in a couple of months you'll be making millions of dollars." Today, the memo is being read more conservatively by tribes and their lawyers. "Some of the tribes that jumped out in front are taking it down a notch," Lance Boldrey, a Michigan lawyer who has represented state and tribal governments. Now the memo is seen more as a yellow light - go slow and remember federal law still considers marijuana illegal. The memo said U.S. attorneys need not prosecute tribes that legalize marijuana provided they follow eight guidelines, including one that demands that weed not be distributed where it is illegal. So, even if it's legal on the reservation, it may not be if a customer takes it off the reservation. "It's been a big bummer," said Collin Price, a member of and spokesman for the HoChunk tribe. "Reality has set in." Regardless, Price said his tribe is still considering getting into the business. So are the Menominee and the St. Croix, Sokaogon (Mole Lake) and Red Cliff Chippewa tribes, officials have said. The reality Price referred to is that officials in states where marijuana remains illegal, as it is in Wisconsin, are making it clear that they will not welcome weed as a tribal economic development tool. "I'm not supportive of (tribes) growing marijuana," said Wisconsin Attorney General Brad Schimel, noting that state and local law enforcement have jurisdiction to enforce criminal laws on land controlled by 10 of the state's 11 tribes. That means even if one of those tribes legalizes weed, local or state officials can still bust people for using or selling it on or off the reservation. Timothy Purdon, former chairman of the U.S. attorney general's subcommittee on Native American Issues, agreed the hysteria has cooled down since the memo's release. "In the early part of 2015 there was chaos," said Purdon, who was U.S. attorney for North Dakota at the time. "People in the cannabis industry were putting the fullcourt press on tribes." Much of the high was felt at the Menominee tribe, which is seen as having the best shot at entering the marijuana business. The Menominee is the only Wisconsin tribe where criminal violations are enforced by federal - not local - police agencies and courts. This is because the Menominee lost their tribal status for several years, regaining it in the 1970s. "We had a lot of individuals and companies coming forward to be our consultants," said Gary Besaw, the tribe's chairman. "Some were legit and others were taking a shot in the dark trying to jump in on a potential gold mine." As the year progressed, however, much of the enthusiasm was snuffed out by federal raids on three tribes. More than 30,000 marijuana plants were seized from the Menominee by the Drug Enforcement Administration in October. In July, federal authorities seized 12,000 marijuana plants and 100 pounds of processed weed from two large tribal marijuana cultivation operations in northern California. Those raids were enough for the Flandreau Santee Sioux, a tribe that made national headlines when it announced plans to open a marijuana resort on its South Dakota reservation. The Sioux tribe responded to the Menominee raid by burning its own marijuana crop last month and canceling plans to open a pot smoking lounge. "The tribe wants to get further clarification from the (U.S.) Department of Justice before it proceeds," said Eric Hagen, chief executive officer at Monarch America Inc., the Colorado marijuana consulting firm working with the Sioux tribe. So, for now, tribes in Wisconsin and most of the rest of the country could only watch with envy as two tribes in the state of Washington just opened the first on-reservation retail marijuana stores in the country. The shops sell marijuana and related products, such as Pomegranate Power Tonic. The tonic, available at the Squaxin Island tribe's Elevation marijuana shop is described on the store's website as an "infusion of fresh juices and cannabis extract" that "is an awesome companion for soaking in natural beauty, whether you hike Mt. Rainier or hang out in your own backyard." Washington state legalized marijuana last year. "The tribe never would have legalized marijuana but for the fact the state legalized it," said Rion Ramirez, general counsel for the Suquamish Tribe's Port Madison Enterprises, the agency that oversees tribal businesses. Both Washington tribes signed compact agreements with the state agreeing to follow the same regulations as state-licensed stores and to tax sales at the same rate as the state does. The tax revenue, however, goes to the tribal governments. Though tribal leaders in states where weed is illegal no longer think they could grow and sell the product immediately, they have not given up on the idea of entering the marijuana business. "It's a regrouping time," said Hagen, the Colorado consultant. Hagen noted his company is negotiating with 14 tribes in 10 states, including Wisconsin, that are considering launching marijuana operations. The reason for the interest is simple: Marijuana can be a very profitable cash crop. People are spending an average of $2.3 million a day to buy marijuana products in Washington, according the state's Liquor and Cannabis Board. That kind of money could make it worth the fight - even though legal experts note everything can change in 2017 when a new president takes office. The Justice Department memo is a policy, not law, and can be changed by the stroke of a new U.S. attorney general's pen. Regardless, the Menominee feel the profit potential makes it worthwhile to sue to get the right to replant its crop. Besides, the tribe sees profit potential in industrial hemp. In a federal suit filed against the DEA last month, the tribe contends it was growing marijuana to make hemp - a product that contains nominal amounts of tetrahydrocannabinol (THC), the psychoactive agent in marijuana that makes one high. The Menominee are asking the court to rule that they are allowed to make hemp for educational or research purposes. Though making hemp is illegal in the U.S., the 2014 Federal Farm Act opened the door to produce hemp under certain conditions. Purdon, who represents the Menominee, noted the tribe told authorities it was growing marijuana for hemp and would destroy any plants that had exceeded the THC level permitted for hemp. "The Menominee has tried to be open and transparent to stop the perception that we are trying to be sneaky," Besaw, the tribe's chairman, said. Federal authorities appear not to be buying the tribe's claim that it is only interested in hemp. After the raid, Gregory Haanstad, the acting U.S. attorney in Milwaukee, called the tribe's operation "a large, unlawful marijuana grow operation." Court documents indicate the tribe's consultant overseeing the 6-acre growing area took steps to increase the THC levels in the plants. The Menominee suit is being closely watched by tribes and governments across the nation. John Vaudreuil, the U.S. attorney in Madison, has met with several Wisconsin tribes that are looking for a legal way to sell marijuana or its byproducts. "These are potential income sources and if it's legal they don't want to miss out on those opportunities," Vaudreuil said. And tribal leaders know the route to marijuana riches may be through the courthouse. One tribal official told Vaudreuil that Indian governments often are forced to go to court to win economic rights - whether it be hunting and fishing rights or the ability to run casinos. "You know, he was right," Vaudreuil said, agreeing the marijuana issue may be decided by judges. "I just prefer that it not be done in a criminal context." - --- MAP posted-by: Jay Bergstrom