ENACTING THE CANNABIS CODE
By Hanna Valento, Revisor of Statutes
On February 18, 2024, the Mille Lacs Band Chief Executive signed the Cannabis Code into law. The code was enacted as Chapter 5 in Title 15 of Mille Lacs Band Statutes, which can be found on the Tribal Register.
Legal counsel for Mille Lacs Corporate Ventures (“MLCV”) produced the original draft of the Cannabis Code, and the draft was sent to the Band Assembly in early June of 2023. The Band Assembly immediately began hosting workshops to refine the legislation.
During this time, Band Assembly worked closely with the Commissioner of Corporate Affairs, MLCV legal counsel, the Solicitor General, the Director of Housing, and external legal counsel (Ziontz Chestnut). One significant question confronted by the District Representatives was where to house the Department of Cannabis Regulation within Band government. Should the Department of Cannabis Regulation be placed under the Department of Natural Resources, Administration, or MLCV? Or should the Department of Cannabis Regulation become an independent agency?
The Band Assembly first released the draft legislation for public comment in late June and early July of 2023. This draft envisioned the Department of Cannabis Regulation being housed within MLCV. Each District Representative presented this version of the Cannabis Code at their monthly community meetings held during that time. The Band Assembly answered questions, took notes, and gathered more than 50 comments from members of the public.
The vast majority of public comments received were in support of the Cannabis Code. Still, one concern that rose to the surface was that of the Department of Cannabis Regulation being housed within MLCV. Certain commenters likened this configuration to that of “the fox watching the hen house.”
During subsequent workshops, the Band Assembly converted the Department of Cannabis Regulation into an independent agency of the Band, to be overseen by a five-member board of directors. The Band Assembly also equipped the Department with necessary staff to carry out duties to effectuate the purpose of the Code.
The Band has four other independent agencies: the Gaming Regulatory Authority, Department of Athletic Regulation, Band Member Legal Services, and the Tribal Employment Rights Office. An independent agency is an agency that exists outside the Executive Branch’s reach of authority. Each of these independent agencies are governed by tribal laws codified within Title 15 of Mille Lacs Band Statutes.
Given the various revisions that were made to the Cannabis Code (including the addition of more processes and expansion of personal use), the Band Assembly released the draft bill for a second round of public comments. This public comment period occurred in late October 2023. After receiving two new comments, the Band Assembly hosted additional workshops to discuss the comments and finalize the bill.
The District Representatives placed the Cannabis Code on the Band Assembly agenda as Bill 03-24 on January 9, 2024, which was the first day of legislative session. Although the District Representatives unanimously approved the bill, it was later vetoed by the Chief Executive.
When an Act is vetoed, the Band Assembly and Chief Executive must hold a compromise hearing within five calendar days of the return of the veto. They also only have 20 calendar days to reach a compromise; otherwise, the bill stalls and may not be acted upon for 180 calendar days.
The first compromise hearing was held on January 22, 2024. The Band Assembly and the Chief Executive briefly discussed the bill, and the Chief Executive provided a hard-copy document describing eight major concerns she had about the Cannabis Code. These concerns were as follows:
1) The Department of Cannabis Regulation should be established within the Executive Branch, and should not exist as an independent agency;
2) The Cannabis Code must not encroach upon existing Executive Branch authorities;
3) The proposed board of directors should be appointed pursuant to the appointment process under Titles 3 and 4 of Mille Lacs Band Statutes;
4) Band members should benefit by receiving distributions on a per capita basis of net revenue from MLCV cannabis operations;
5) The Band Assembly must restore the Administration Policy Board’s authority to approve the Band’s Personnel Policies and Procedures (without requiring additional approval by the Band Assembly) as the process was before changes were made in 2009;
6) The Band Assembly must restore the Executive Branch’s authority to approve housing policies;
7) The Cannabis Code must expressly prohibit retail of cannabis inside the Band’s casinos; and
8) The Cannabis Code must expressly prohibit cannabis consumption lounges within the Band’s casinos.
The elected officials held a second compromise hearing in February of 2024 to discuss the Chief Executive’s list of concerns. Despite the meeting lasting approximately two hours, it ended without any compromise being reached.
The Band Assembly immediately followed up with a letter sent to the Chief Executive, articulating which of her concerns they would agree to compromise on. Out of the eight major concerns, the Band Assembly was willing to compromise on three of her concerns. The District Representatives were willing to (1) prohibit retail of cannabis inside the Band’s casinos, (2) prohibit cannabis consumption lounges within the Band’s casinos, and (3) modify language that may encroach on authority possessed by the Department of Natural Resources. Although the letter requested that the Chief Executive respond, the Band Assembly did not receive a formal response.
The third and final compromise hearing was held on February 9, 2024. The meeting began with a discussion of the letter that the Band Assembly sent to the Chief Executive. The District I Representative, Virgil Wind, asked the Chief Executive if she was willing to compromise after reviewing the letter. At this time, the Chief Executive agreed to the compromise as outlined in the Band Assembly’s letter. By the end of the meeting, all Elected Officials agreed that a compromise had been reached.
The Band Assembly followed the compromise up with a letter to the Chief Executive, summarizing its understanding of what had been agreed upon. This led to the Band Assembly approving the final bill on February 15, 2024, and the Chief Executive signing it into law on February 18, 2024, as Act 13-24.
Harry Davis, District III Representative, added, “We are confident this is a good prospect for a successful business for both our Tribe and Band members. We still need to be smart and careful how we conduct ourselves in our lives to keep this a positive path for all.”
