Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Monday, November 9, 2015

South Dakota tribe planning first marijuana resort (mysteriously?) changes plans and destroys (valuable?) crops

As regular readers should recall from lots of prior posts, a Native American tribe seemed well on its way to opening the nation's first "marijuana resort" on tribal lands in South Dakota at the end of the year.  But, as reported in this local article, headlined "Flandreau tribe temporarily suspending marijuana operations," there appears to have been a significant and sudden change in pot plans. Here is the local report, which prompts a lot more questions than answers:

The Flandreau Santee Sioux Tribe is temporarily suspending its marijuana cultivation and distributing facilities and is destroying its existing crop as leaders seek clarification on regulations from the federal government, according to the tribe's lawyer.

Seth Pearman said the suspension is pivotal to the continued success of the marijuana venture and that tribal leadership is confident that after getting clarification from the U.S. Department of Justice, "it will be better suited to succeed."

"The tribe will continue to consult with the federal and state government and hopes to be granted parity with states that have legalized marijuana," Pearman said in the news release. Pearman said despite suspending the current plan, the tribe intends to be a participant in the marijuana industry.

South Dakota attorney general Marty Jackley called the about-face a "positive" choice. "The decision by the Flandreau Tribe to not move forward at this time with marijuana growth in South Dakota is positive and is in the best interest of both tribal and non-tribal members," Jackley said.  "I understand that this has been a divisive matter and that this decision by tribal authorities has not been easy."

Jackley said that he and tribal government officials have had opportunities to sit down and discuss the marijuana operation throughout the process. "We haven't always agreed, but we've had good, positive discussions," he said.  "I will do whatever I can as South Dakota's Attorney General to assist Flandreau in the decision and as I have done throughout this process, make myself available to tribal leadership for further discussions." Jackley told the Associated Press that he was informed of the tribe's decision Saturday. He plans to meet with tribal officials Monday or Tuesday.

Jonathan Hunt, vice present of Monarch America, a Denver-based marijuana consulting firm hired by the tribe, told the Associated Press that a reported fire Saturday was caused by wood and not marijuana. He declined further comment.

Rep. Matthew Wollmann, R-Flandreau, had the opportunity to tour the tribe's marijuana facilities in October.  Wollmann said he was surprised by the decision to forego the venture for now. "They've invested a lot of money into the facilities," he said. Wollmann added that despite the delay, the fact that marijuana is still illegal across South Dakota could continue to create tension between the tribe and the rest of the state.

"Quite frankly, nine out of 10 people that I've spoken to about the issue were not in favor of it," he said.  "I think they had a lot more pushback than they expected. ... Maybe they're waiting for a better environment."...

The Flandreau Santee Sioux Tribe became the first South Dakota tribe to move forward with making marijuana legal.  The tribe's executive committee voted June 11 to make the sale and use of marijuana legal on its reservation in Moody County about 45 miles north of Sioux Falls. The facility had been slated to open at the end of the year.

I would not have been too surprised if, for administrative reasons, the planned opening for the Flandreau Santee Sioux Tribe's marijuana resort was being delayed. But the (unclear?) indication that the Tribe has now decided against opening up a pot shop on its lands and has destroyed its crop leads me to wonder if the Tribe was subject to considerable pressure from local, state and federal authorities to not be the first tribe actively promoting recreational marijuana sales and tourism.

I hope there will be a lot more (and clearer) reporting on this front in the days ahead, as I am quite curious what prompted the change of plans and also whether the change will greatly influence whether and how other tribes consider moving forward in this challenging space.

Prior related posts:

http://lawprofessors.typepad.com/marijuana_law/2015/11/south-dakota-tribe-planning-first-marijuana-resort-mysteriously-changes-plans-and-destroys-valuable-.html

Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Recreational Marijuana Commentary and Debate, Who decides | Permalink

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