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."
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MAP posted-by: Jay Bergstrom