Compacts
A compact is an intergovernmental agreement between sovereign entities. Under Minnesota state law (Minnesota Statutes, section 3.9228), the state of Minnesota, represented by the governor or their designee, may enter into compacts with Tribal governments to address jurisdictional issues related to the medical cannabis and adult-use cannabis industries. The Tribal-state cannabis compacts will create a legal agreement between the state and Tribal Nation establishing the terms and conditions to regulate the operation of Tribal cannabis businesses off Tribally regulated lands.
Additionally, the law intends for compacts to facilitate and promote a cooperative and mutually beneficial relationship between the state and the Tribes regarding the legalization of cannabis. Such cooperative agreements will enhance public health and safety, ensure a lawful and well-regulated cannabis market, encourage economic development, and provide fiscal benefits to both Tribes and the state.
Compacting negotiations between the State of Minnesota and Tribal Nations are non-public data while they are ongoing. Under Minnesota Statutes, section 3.9228, subdivision 5, once executed, compacts will be publicly accessible on the OCM website below.
A model for multi-jurisdictional cannabis markets
Each compact constitutes a separate agreement between the state and each individual Tribe. Though the terms vary in accordance with the needs of the individual Tribe, the compacts have some fundamental similarities.
Testing and tracking
The compacts mandate testing to verify compliance with the standards set by OCM, ensuring uniformity across the state market. This includes cannabis undergoing agreed upon testing for potency, stability, homogeneity, and contaminants at state licensed testing labs before it enters the state market. Like state-licensees, the Tribes and their licensees will utilize seed-to-sale tracking to ensure that regulators can see the full lifecycle of cannabis plant or product. All products will be required to be entered into the state's seed-to-sale system when they move off of Tribal lands.
Packaging and labeling
Products sold into the state market from Tribal cultivators, manufacturers or retails are required to meet all packaging and labeling requirements outlined in state law and Office of Cannabis Management rules including the use of the universal cannabis symbol, and the required warning sticker.
Local control
Tribally regulated retail locations off of Tribal land are required to follow all non-cannabis specific local ordinances, including zoning and land use ordinances. These retail locations must also follow the statutory setback limitations and local hours of operation restrictions.
Each Tribe is limited to eight retail locations, with a limit of one per city and three per county. Additionally, as proposed in
OCM’s draft rules, local units of government may include in its count of active retail registrations any retail locations operating under a Tribal compact or a Tribally issued license or registration.
Please visit
OCM’s Local Governments webpage for more information about the role of local governments in the regulation of cannabis in Minnesota, including zoning compliance certification and local retail registration of state licensed businesses, as outlined in Chapter 342.
View the existing compacts
