IGA MY Seminar Cannabis Training Book

TRIBAL CANNABIS INDUSTRY AN OVERVIEW

November 14 - 16 , 202 2 Fort McDowell, Arizona

The Tribal Cannabis Industry: An Overview November 14-16, 2022 Indian Gaming Association Mid-Year Conference WeKoPa Resort Casino, Fort McDowell, Arizona AGENDA (Subject to Change)

Monday, November 14, 2022

8:00 am – 9:00 am

Breakfast

Foundations of the Tribal Cannabis Industry Lael Echo-Hawk, Principal at MThirtySix, PLLC

9:00 am – 10:30 am

10:30 am – 10:45 am

BREAK

Political, Legal, and Sovereignty Issues – Tribal Marijuana Related Businesses Lael Echo-Hawk, Principal, MThirtySix, PLLC

10:45 am – 12:15 pm

12:15 pm – 1:15 pm

BREAK

Tribal Marijuana Business Development – Pt. 1 Tina Braithwaite, Sovereign Nations Cannabis Consulting Travis Nabahe, Founder and Owner, Nabahe Global Group, LLC

1:15 pm – 2:45 pm

2:45 pm – 3:00 pm

BREAK

Tribal Marijuana Business Development – Pt. 1 Tina Braithwaite, Sovereign Nations Cannabis Consulting Travis Nabahe, Founder and Owner, Nabahe Global Group, LLC

3:00 pm- 4:30 pm

Tuesday, November 15, 2022

8:00 am – 9:00 am

Breakfast

Operating a Tribal Marijuana Business Tina Braithwaite, Sovereign Nations Cannabis Consulting Travis Nabahe, Founder and Owner, Nabahe Global Group, LLC

9:00 am – 10:30 am

10:30 am – 10:45 am

BREAK

Regulating Tribal Cannabis Businesses – Pt. 1 TBD

10:45 am – 12:15 pm

12:15 pm – 1:15 pm

BREAK

Regulating Tribal Cannabis Businesses – Pt. 2 TBD

1:15 pm – 2:45 pm

2:45 pm – 3:00 pm

BREAK

Accounting and Auditing Concerns for Tribally Owned Marijuana Businesses Ryan Burns, Bluebird CPA’s

3:00 pm – 4:30 pm

Wednesday, November 15, 2022

8:00am – 9:00am

Breakfast

Best Practices on Legalization of Cannabis on Tribal Lands Eric Barela, Sovereign Nations Cannabis Consulting

9:00am – 10:30am

10:30am – 10:45am

BREAK

Writing Ordinances and Regulations for Tribal Governments Eric Barela, Sovereign Nations Cannabis Consulting

10:45 am – 12:00 pm

“Tribal Cannabis Industry: An Overview”

Lael Echo-Hawk, Principal MThirtySix, PLLC lael@mthirtysixpllc.com P. 206.271.0106 Facebook | mthirtysixpllc

Foundations of the Tribal Cannabis Industry

• Terminology –

• Cannabis – includes both marijuana and hemp • Marijuana – refers to cannabis with a THC content of more than .3% • Hemp – refers to cannabis plant with less than .3% THC content

Industrial Hemp

• Industrial Hemp is a distinct variety of the cannabis sativa species • <.3% THC  NOT psychoactive • Tall, slender, fibrous • Uses: • Paper, textiles, plastics, construction, health food, animal feed, fuel, etc.

Cannabinoids: CBD and THC • Cannabis plants produce chemicals called cannabinoids

CBD-type cannabinoid

• There are 85 different cannabinoids

• Two cannabinoids produced in greatest abundance are cannabidiol (CBD) and Δ9 -tetrahydrocannabinol (THC)

• Only THC is psychoactive

cdc.gov/marijuana/index.htm

----------------------------------------

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https://www.cdc.gov/marijuana/featured-topics/CBD.html

Federal Law

• The possession, distribution, and manufacturing of marijuana, and aiding and abetting such offense, is a violation of the federal Controlled Substances Act. 21 U.S.C. § 841(a) • It is unlawful to knowingly lease any place for the purpose of distributing a controlled substance. 21 U.S.C. § 856 • Property involved in the sale and distribution of marijuana may be subject to seizure by, and forfeiture to, the federal government. 21 U.S.C. § 881(a)

The Controlled Substances Act (1970s) 21 U.S.C.13 § 801 et seq.

• “War On Drugs” – Just Say NO! • Marijuana is a “Schedule I” Controlled Substance • High potential for abuse. • No currently accepted medical use in treatment. • Lack of accepted safety for use of the drug under medical supervision.

Possession Any amount (first offense) Any amount (second offense)

misdemeanor misdemeanor

1 year

$ 1,000 $ 2,500

15 days*

Any amount (subsequent offense)

misdemeanor or felony

90 days* - 3 years $ 5,000

* Mandatory minimum sentence Sale Less than 50 kg

5 years 20 years

felony felony felony felony

$ 250,000 $ 1,000,000 $ 500,000 $ 1,000,000

50 - 99 kg

5 - 40 years 10 years - life

100 - 999 kg

1000 kg or more

To a minor or within 1000 ft of a school, or other specified areas carries a double penalty. Gift of small amount -- see Possession Cultivation Less than 50 plants felony 5 years

$ 250,000 $ 1,000,000 $ 500,000 $ 1,000,000

20 years

50 - 99 plants 100 - 999 plants

felony felony felony

5 - 40 years 10 years - life

1000 plants or more Paraphernalia Sale of paraphernalia

felony

3 years

$ 0

NORML, available athttp://norml.org/laws/item/federal-penalties-2#mandatory (Sept. 2, 2014)

That Was Then….

• December 11, 2014 the DOJ released its internal Policy Statement on Marijuana Issues in Indian Country – the “Wilkinson Memo”. • Allows U.S. District Attorneys discretion when prosecuting marijuana offenses in Indian Country. • Tribes begin to explore cannabis industry.

Why the Hubbub?

Across the Country… 2014

• 23 states, plus WA D.C., recognized and permitted the medical use of cannabis  1996: California  1998: Alaska, Oregon, Washington  1999: Maine  2000: Colorado, Hawaii, Nevada  2004: Montana

 2008: Michigan  2010: Arizona, New Jersey  2011: Delaware, Washington, D.C.  2012: Connecticut, Massachusetts  2013: New Hampshire, Illinois  2014: Maryland, Minnesota, New York

 2006: Rhode Island  2007: New Mexico, Vermont

Across the Country…

• 4 states legalized the recreational, adult use of marijuana • 2012: • Washington • Colorado • 2014: • Oregon • Alaska • Washington D.C.*

Medical Marijuana v. Adult Use or Recreational Marijuana

• SIMPLE -- • How it is used.

• If used to treat an approved medical condition, then is medical marijuana.

What can a doctor do? It depends….

9 th Circuit case – Conant v. Walters (2002) affirms the right of doctors to recommend medical marijuana. • Arose in California where medical marijuana was legal. • SCOTUS declined to review the case (2003). • States vary: NY requires doctor to be in good standing, be qualified to treat patients with certain serious conditions, and take an education course on medical marijuana. CA much broader.

Nevada Health Conditions for the Medical Use of Marijuana

• Acquired immune deficiency syndrome; • An anxiety disorder; • An autism spectrum disorder; • An autoimmune disease; • Anorexia nervosa; • Cancer; • Dependence upon or addiction to opioids;

• Muscle spasms, including, without limitation, spasms caused by multiple sclerosis; • Seizures,including,without limitation, seizures caused by epilepsy; • Nausea; or • Severe or chronic pain; • A medical condition related to the human immunodeficiency virus; • A neuropathic condition, whether or not such condition causes seizures

• Glaucoma; • Cachexia;

Across the Country… 2014 13 states authorized commercial hemp programs:

• California • Colorado • Indiana • Kentucky • Maine • Montana • North Dakota

• Oregon • South Carolina • Tennessee • Vermont • Virginia • West Virginia

Across the planet…

 BMW Electric Car i3 – door panels of hemp

Economic forecast - Hemp • Hemp –2018 Farm Bill legalized the regulated production of hemp. (USDA, EPA, FDA) • FDA has regulatory over hemp products such as foods, dietary supplements, human and veterinary drugs, and cosmetics, but CBD? • The global hemp fiber market size is expected to grow from $5.66 billion in 2021 to $7.91 billion in 2022 at a compound annual growth rate (CAGR) of 39.7%. The global hemp fiber industry growth is expected to reach $26.41 billion in 2026 at a CAGR of 35.2%.

2014 - DOJ Policy Statement Regarding Marijuana Issues in Indian Country • Directs each U.S. District Attorney to: • Assess all threats within the District, including those in Indian Country. • Consult with the Tribes in their District on a government-to-government basis. • Focus enforcement efforts based on that district- specific assessment. • Invitation to consult – not blanket authorization to legalize • “Guidance” only

Cole Memo (8/29/2013)

• DOJ identified 8 federal enforcement priorities 1. preventing the distribution to minors; 2. preventing revenue from going to criminal enterprises, gangs, and cartels; 3. preventing the diversion to other states; 4. preventing state-authorized activity from being used as a cover for the trafficking of other drugs or illegal activity;

Cole Memo (8/29/2013)

• DOJ identified 8 federal enforcement priorities 5. preventing violence and the use of firearms; 6. preventing drugged driving and the exacerbation of other adverse public health consequences; 7. preventing the growing of marijuana on public lands; and 8. preventing possession or use on federal property.

Cole Memo (8/29/2013)

• DOJ’s guidance relies upon expectation that state governments “implement strong and effective regulatory and enforcement systems,” with “robust controls and procedures on paper,” and “effective in practice.” “If state enforcement efforts are not sufficiently robust to protect against [8 enforcement priorities] the federal government may seek to challenge the regulatory structure.” ** Guidance only, individual prosecutors have discretion to deviate from federal enforcement priorities.

Tribes begin to jump in

• 2015 - Alturas Rancheria, Pit River Rancheria marijuana raided by federal and state law enforcement • 2015 - Pinoleville Rancheria marijuana raids by State law enforcement • 2015 - Flandreau Santee Sioux burned its plants following discussions with DOJ • 2015-16 Menominee raid & litigation

• Issues identified in Warrant – • Appeared to be a non-tribal

entity and employees operating facility • Non-Wisconsin citizens operating grow • Public Health and Safety issues • Plants tested positive for Marijuana, Hashish, THC and Hash Oil • Cannabis farm located in State without any legalized marijuana • Menominee filed Complaint for Declaratory Judgment • May 23, 2016 – Court found against Menominee

Menominee Hemp Farm

• Menominee argued they should qualify under definition of “state” in Farm Bill. • Court held it does not. • Menominee argued that because PL 280 was retroceded from reservation the State laws prohibiting cannabis did not apply on reservation. • Court held that a tribe can only grow hemp in a state that allows it – regardless of whether state law applies on reservation.

Tribes begin to jump in • Suquamish Tribe, Squaxin Island, Puyallup sign Marijuana Compacts under HB 2000. • California has compact bill introduced • Warm Springs & Las Vegas Paiutes breaks ground on grow facility • Other tribes exploring legalization. • Omaha • St. Croix Chippewa – WI • Passamaquoddy

Washington-Tribal Marijuana Compacts

• HB 2000 – All marijuana “compacts” to address any marijuana-related issue that involves both state and tribal interests or otherwise has an impact on tribal-state relations. • Compact provisions – • Allows tribe to buy and sell to State licensees • KEY PROVISION - State agrees to co- defend any challenges to agreement • Tribal tax must be at least 100% of the State tax (WA = 37% plus sales tax up to 9.5%) • Medical marijuana is exempt from tax

This Photo by Unknown Author is licensed under CC BY-NC-ND

General Cannabis Compact Provisions • Allows tribe to buy and sell to State licensees • Tribal tax must be equivalent of the State tax • Tribal tax revenues must be used for “essential government services” • Medical marijuana is not taxed • Tribes agree to cooperate with State law enforcement • Co-defense provision • “If federal marijuana enforcement policy changes, the Parties agree to meet and discuss the need to modify this Compact”.

State-Tribal Marijuana Activity • California Bureau of Cannabis Control Regulations - “§ 5009. Limited Waiver of Sovereign Immunity

(a) Any applicant or licensee that may fall within the scope of sovereign immunity that may be asserted by a federally recognized tribe or other sovereign entity must waive any sovereign immunity defense that the applicant or licensee may have, may be asserted on its behalf, or may otherwise be asserted in any state administrative or judicial enforcement actions against the applicant or licensee, regardless of the form of relief sought, whether monetary or otherwise, under the state laws and regulations governing commercial cannabis activity (excerpt).”

Nevada-Tribal Marijuana • SB 375 (2017) 1g o. vTe rhnemGeonv tesr ni no tr hoi rs hS ti sa toer t ho eerf fdi ceisei ng nt l ey ec mo oaryd ei nnat teer ti hn et oc or onses o- j ru rmi sodriec tai go rneael ma de mn tisnwi s it trha ttiroi nb aol f t h e laagwr eseomf et hnits mS taayt ei nacnl uddteh,ewl ai twh so uotf ltirmi bi at al tgi oo vne, rpnr mo vei snitosnrse rl aetliant gi ntgo ttoh: e u s e o f m a r i j u a n a . S u c h a n ((ab)) CRreigmuilnaatol raynidsscuiveisl lraewlateinnfgotrocetmheenpto;ssession, delivery, production, processing or use of marijuana, edible marijuana p( cr)o Md uecdtisc, aml aa nr idj upahnaar-mi naf uc es eu dt i cparlordeus cetasr ac hn di nmv oalrvi ij nu ga nma a pr irj ou da nu ca t; s ; ((de)) ATnhye iamdmmiunnisittyr,aptiroenemofpltaiwons orerlcaotinnfglictot otaf xlaawtiorne;lating to the possession, delivery, production, processing, t a r n a d nsportation or use of marijuana, edible marijuana products, marijuana-infused products and marijuana products; (thf)eTuhseeroefsmoleudtiioantioonf aonryodthisepruntoensjbuedtiwcieaelnpraotcreibssaelsg.overnment and this State, which may include, without limitation,

Nevada-Tribal Marijuana • SB 375 (2017) 2p .uAr snuaagnrteteomt he ni st seencttei or endmi nutsot : (aan)dPsraofveitdye; for the preservation of public health (ebs t) aEbnl issuhrme et hn et ssaenc ud rmi t ya roi jfuma ne ad iecsatlamb lai sr hi j mu aennat s a an n d d the corresponding facilities on tribal land; (i nc v) oEl svti anbgl ims ha rpi rj uo av ni sai ownhs i rc ehgpual as tsiensg bbeut swi ne ee ns s tribal land and non-tribal land in this State.

IHS –Tribal Inquiry and HHS Response • June 30, 2015 - the Secretary’s Tribal Advisory Committee sent a series questions to the HHS regarding the risks associated with Tribal health programs dispensing and/or prescribing Medical Marijuana • STAC asked whether there is a risk that Tribes could forfeit their HHS and IHS funding if they were involved in dispensing or cultivation of marijuana • HHS stated no federal funds could be used, but assuming federal funds were not used, “it is unlikely federal funds would be jeopardized,” but tribes would still be at risk of enforcement from DOJ. • HHS deferred to DOJ on tribal consultation on enforcement of the CSA

Tribal Legal Options

1. Prohibit 2. Decriminalize 3. Authorize recreational only 4. Authorize medical only

5. Authorize recreational & medical 6. Participate in state licensed industry

Each option requires development of robust tribal regulatory system to implement, license and provide enforcement

This Photo by Unknown Author is licensed under CC BY-SA-NC

Decision Time • Tribal considerations when deciding whether to legalize, decriminalize or prohibit marijuana in Indian Country? • Community Issues – • Historical substance abuse on reservations. • Community concerns for or against • Employment, including federal program employees • Employment opportunity • Tribal member entrepreneurship opportunity

Decision Time • Tribal considerations when deciding whether to legalize, decriminalize or prohibit marijuana in Indian Country? • Government Issues – • Impact on other Federal Programs: 638, HUD, IHS, USDA, ICWA, Bureau of Reclamation • Status of legality in your state – external politics • Potential revenue source • Cost of implementation • Sales, Taxation, Licensing, Testing, Regulating & Enforcement • Other affected tribal laws – ICWA, employment, Tribal Housing Authority eligibility,

Key Considerations for Tribal Health Programs

 DOJ Policy Statement priority number eight, “preventing marijuana possession or use on federal property ” needs to be addressed  Marijuana will need to be reclassified from a Schedule I substance under the Controlled Substances Act  If marijuana can be reclassified and be approved by the FDA, than the IHS position on Medical Use of Marijuana could be retracted  If IHS position does not change, Tribes cannot dispense or prescribe medical marijuana at tribal health facilities operated under the ISDEAA.  Tribes might be able to dispense outside the IHS system, but would lose important benefits of that system, including Federal Tort Claims Act coverage.

Decision Time

• Key Question – If the tribe decides to legalize, how will it participate? • Governmental role –

• License, regulate, enforce, tax • Example - St. Regis Mohawk Cannabis Control Board

• Industry participant – • Dispensary • Cultivation • Processor

• Example – Las Vegas Paiutes

Other Considerations

• $$$: Additional resources required if the Tribe decides to legalize, prohibit or decriminalize marijuana. • Jurisdictional issues: Public Law 280 state civil & criminal jurisdiction over Tribal members

• Other statutes giving state jurisdiction over tribal lands

2022

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Make a Decision & Adopt As Tribal Law • Gather information before making a decision • Consider your State’s authorization or lack thereof • Jurisdiction & resources to implement • Political effects – Ex. South Dakota • Memorialize the decision (prohibitive or permissive) in Tribal law • Some tribes may have to obtain federal approval of their ordinance by BIA. • Review all other tribal ordinances to ensure consistency

Basic Framework for Tribal Cannabis Industry

 Tribal Ordinance meeting all DOJ requirements  Licensing of individuals  Types of business (retail/dispensary, processing, grow, testing)  Regulatory Board/Commission with enforcement authority  Law Enforcement  Clear understanding with local jurisdictions -  Compact  State regulation providing safe harbor for tribal licensees  MOU

Development of Robust Regulatory & Enforcement Framework Required • Rules which protect against the 8 federal enforcement priorities (Cole Memo): • Distribution to minors; • Funding criminal enterprises, gangs, and cartels; • Interstate distribution; • Trafficking other illegal drugs or illegal activity; • Violence and use of firearms; • Drugged driving and other public health consequences; • Growing on public lands; and • Possession or use on federal property.

Development of Robust Regulatory Framework Required

• What those rules will likely need to include • Some method for tracing product from seedling through sale • Security requirements • Distance buffer from facilities with children • Criminal background checks on managers and investors • Advertising and packaging restrictions to protect minors • Quantity limits on consumer sales • Public safety regulations on acceptable extraction methods • Required testing of product for potency and mold, etc. • Independent, policing, enforcement division

Alcatraz 1969-1971

Why Indian Country? • Sovereignty as a tool -

• Less bureaucracy in licensing • Lower tax rates • Access to land for grow operations – streamlined zoning and permitting processes • Blank slate for growing and processing standards. • Reasonable regulation • Tribes know how to regulate and how to work with feds • Offer possible Banking solution?

Sovereignty Is the Key

• U.S. Constitution Art. 1. • Section 2. Cl. 2 (Treaty Clause) gives the President and Congress the authority to enter into treaties on behalf of the U.S., including treaties with Indian tribes. • Section 8. Cl. 3 (Commerce Clause) gives Congress the power “to regulate commerce with foreign nations, and among the several states, and with Indian Tribes

Era of Self-Determination - Legislation

• 1968 – Indian Civil Rights Act • 1968 – PL 280 limited • 1971 – Alaska Native Claims Settlement Act • 1975 – Indian Self Determination and Educational Assistance Act of 1975 – • Requires federal agencies to allow tribes to administer various federal programs on the reservation like: • Health clinics • Law enforcement • Education • Social Services • 1976 – Indian Health Care Improvement Act • 1978 – Indian Child Welfare Act

• 1988 – Indian Gaming Regulatory Act • 1994 – Government-to-Government consultation Executive Order 13175 • Tribal Law and Order Act of 2010 - expanded punitive abilities of tribal courts. • Increased jail sentences. • Enhanced information sharing • Requires US Attorneys to account for declinations in Indian Country. • Violence Against Women Act of 2013 • Cobell settlement – 2009 • $3.4B total • $1.4B to plaintiffs • $2B to repurchase land distributed under Dawes Act

1983 – President Reagan “This administration intends to restore tribal governments to their rightful place among governments of this nation and to enable trial governments, along with State and local governments, to resume control over their own affairs.”

Era of Self-Determination – Case Law

Morton v. Mancari, (1974) • Constitutional challenge to BIA hiring preference. • US Supreme Court held that the hiring preferences given by Congress in IRA do not violate Due Process Clause of Constitution. The Court compared it to the requirement of a Senator being from the state that she represents, or a city council member being required to reside in the area he represents. The Court said, "The preference, as applied, is granted to Indians not as a discrete racial group, but rather, as members of quasi-sovereign tribal entities whose lives and activities are governed by the BIA in a unique fashion."

Era of Self-Determination – Case Law

C alifornia v. Cabazon Band of Mission Indian s (1987) held that unless an activity is “criminally prohibited” by the state and is only “civilly regulated”, then a Tribe can engage in the regulated activity without interference from the State. Castro-Huerta (2022) – holds that the State has concurrent jurisdiction to prosecute crimes committed by non-Indians against Indians in Indian Country.

• Executive Order 13175 Consultation and Coordination with Indian Tribes • Requires all federal agencies to conduct their business with tribes on a “government-to-government” basis respectful of tribal sovereignty. • Nov. 5, 2009 President Obama issued a memorandum requiring Agency compliance with EO 13175. • President Obama holds government to government meetings each year with tribal leaders. • Created White House Council on Native American Affairs June 26, 2013 • 2021 - President Biden issued a Memorandum requiring agencies to submit a plan to implement EO 13175 Era of Self-Determination – Administration

Tribes today... • Exercise tribal sovereignty • Adopt laws • Exercise jurisdiction over land and members • Enter into agreements with other jurisdictions • Provide services to tribal members • Employment • Business enterprises • Membership • Court • ICWA • Leasing • Domestic Relations – Same sex marriage (2008)

Snapshot of Tribal Legalization Efforts

New York

Michigan

Nevada • Las Vegas Paiutes • Yerington Paiute •Pyramid Lake • Lovelock Paiute • Ely Shoshone

South Dakota • Flandreau Santee Sioux • 2015 – burned plants •Opened dispensary • Cultivation

Oregon

Washington • 18 Cannabis Compacts (3/2021)

• St. Regis Mohawk

• Bay Mills • Fully

•Warm

Springs Tribes

integrated system •Grow •Process •Retail

• Regulator only • License individuals

• Seneca •Cayuga • Shinnecock

•Grand

Traverse Band

Sessions Withdraws Cole and Wilkinson memos – January 4, 2018 • “In deciding which marijuana activities to prosecute under the [Controlled Substances Act] … prosecutors should follow the well-established principles that govern all federal prosecutions… originally set forth in 1980, and as they have been refined over time. • “Given the Department’s well-established general principles, previous nationwide guidance specific to marijuana enforcement is unnecessary and is rescinded, effective immediately.”

https://www.ncsl.org/research/health/state-medical-marijuana-laws.aspx

State Marijuana Legislative Activities - 2021

• 2021 – 18 States & almost half of United States population have regulated adult use marijuana use and retail sales • 2022 – Maryland & Missouri votes to approve legalizing adult use. • State action expunging or sealing previous marijuana convictions • 2021 – approx. 2.2 million • 5 State legislatures (CT, NM, NJ, NY, VA) enacted laws legalizing adult use and retail • Shift from voter led initiatives

https://www.ncsl.org/research/health/state-medical-marijuana-laws.aspx

Tribal Land in State

Marijuana Taxes  Colorado–

 Taxes & Fee Revenue-  2014 - $67.5M  2016 - $193.6M  2020 – $387.4M  $2B Sales (2020)  Washington –  $1.2B sales (2016)

 $1B Tax Revenue 2021-2023

HHS Patent – “Cannabinoids as antioxidents & neuroprotectants” • Awarded October 2003, filed by National Institute of Health • “This new found property makes cannabinoids useful in the treatment and prophylaxis of … ischemic, age- related, inflammatory and autoimmune diseases. The cannabinoids are found to have particular application as neuroprotectants, for example in limiting neurological damage … such as stroke and trauma, or in the treatment of neurodegenerative diseases, such as Alzheimer’s disease, Parkinson’s disease and HIV dementia .”

NIH grants license to KannaLife to study CBD & CTE • 2010 - NIH granted KannaLife exclusivity

to develop a treatment for Hepatic Encephalopathy, a disease of the liver and brain that stems from cirrhosis. • 2014 - NIH granted the company an additional license on their previous patent to study CTE. • KannaLife is the only company with licenses on the US-government held patent on cannabinoids.

Congressional Activity

• Creation of Congressional Cannabis Caucus (2017) • Founders - Rep. Rohrabacher (R-CA); Rep. Young (R-AK); Rep. Blumenauer (D-OR); Rep. Polis (D-CO) • Co-Chairs (2022) Congressman Joyce (R- OH) and Congressman Mast (R-FL)

Congressional Response

• Jan. 25, 2018 – Bipartisan response to Session rescission of Cole and Wilkinson Memos. • 52 members of Congress • “Rescinding the Cole Memo upends the careful balance struck between the federal and state governments on marijuana enforcement.” • Urge President Trump to urge the Attorney General to reinstate the Cole Memo.

Ongoing Challenges

• Marijuana remains illegal federally • Banking access remains limited • Interstate Commerce restricted • Medical research limited • Nov 10, 2022 – FDA denies 2011 Petition for Federal Exemption for Marijuana

Congressional Activity – No Congress yet

• Congress composition still not clear. Democrats keep the Senate, House is undecided (11/14/2022) • House Oversight Subcommittee on Civil Rights and Civil Liberties – Nov 15, 2022 • “Developments in State Cannabis Laws and Bipartisan Cannabis Reforms at the Federal Level” • Lawmakers on both sides of the aisle have shown interest in advancing more incremental reform such as marijuana banking legislation. The Secure and Fair Enforcement (SAFE) Banking Act has passed the House in some form seven times now, with sizable bipartisan support. • Senate has not passed the SAFE Banking Act

President Biden Memorandum Oct 6, 2022

Senator Cory Booker reacts: • BOOKER: It is stunning. As a person who went to Stanford and Yale and grew up in high school in an affluent area, lots of people used marijuana. You saw it very prevalent. We've had former presidents, senators, congresspeople admit to doing it, but very low risk, low consequence. The people who often are getting these charges for simple possession and getting criminal records are disproportionately low-income, disproportionately Black and brown, and it's a lifetime sentence. In other words, they're - they may not serve any jail time, but they, for the rest of their lives, will have a hard time getting a job, getting a business license, getting loans, getting certain housing opportunities. • The American Bar Association says there are 40,000 collateral consequences for people with a criminal conviction. And it's just so profoundly unjust because of the way we enforce the war on drugs or the - in this case, the war on marijuana - because even African Americans are almost four times more likely to be convicted of that than whites are, even though their usage rates are about the same. • BOOKER: Well, again, we have to be a country that, No. 1, doesn't treat this plant like a Schedule I drug.

• FDA will lead the scientific and medical evaluation of cannabis, it is the the Drug Enforcement Administration (DEA) that “has the final word” on any potential scheduling decision.

Questions?

Lael Echo-Hawk e. lael@mthirtysixpllc.com

p. 206.271.0106 Twitter: @laeleh

Cannabis Business Development Framework

Prep ared by Travis Nabahe (Nabahe Global Group LLC) for NIGA Mid-Year Cannabis Certification Program

November 14, 2022

CONFIDENTIAL (NIGA Cannabis Certification Program Participants Only)

Table of Contents

u Introductory Overview ………………………………………………. 3 u Three (3) Key Groups …………………………………………....... 4 u Common Elements of Tribal Cannabis Compacts .. 5 u Tribal Government ……………………………………………………… 6 u Tribal Business Entity……….………………………………. . 7 u Business Partners …………………………………………………………. 8

CONFIDENTIAL (NIGA Cannabis Certification Participants)

Introductory Overview u Conduct Due Diligence u Seek Support and Approval from Tribal Membership u Legalize Cannabis within Tribal Lands to Legally ”Possess” and “Transact” Cannabis u Do Not Co-mingle Cannabis Cash Flow with the Tribe’s General Fund 1. Ensure the Ability to Own and Operate Gaming Operations 2. Maintain Eligibility for Grant Funding 3. Avoid Federal Government and/or States Audit on the Tribe’s General Fund u Cannabis Compact Provides More Assurances u Three (3) Key Groups

CONFIDENTIAL (NIGA Cannabis Certification Program Participants)

Common Elements of Tribal Cannabis Compacts u 10-Year Term u Ability to Grow, Process and Retail u Outdoor Grow u Cannabis Regulatory Body u Equal Tax Rate u Tribal Membership Discount (an option to include)

CONFIDENTIAL (NIGA Cannabis Certification Program Participants)

Three (3) Key Groups

Tribal Council

Tribal Business Entity

Business Partners

CONFIDENTIAL (NIGA Cannabis Certification Program Participants)

Tribal Government

Key Role: Legal, Regulatory and Compliance Standards

u Tribal Council

Resolution & Cannabis Ordinance

Obtain Agreement with State

Seek Approval

CONFIDENTIA L. (NIGA Cannabis Certification Program)

Tribal Business Entity

Key Role:

Business Planning and Execution

u Board and Management

Determine Corporate Structure & Source of Capital

Implement Business Model, Policies & Procedures, etc.

Perform Analyses & Business Planning

CONFIDENTIAL (NIGA Cannabis Certification Program Participants)

Business Partners

Key Role: Identifying Business Partners to Add Value

u Management, Board & Tribal Council

Find Master Grower & Processing Advisors

Align with Other Key Service Providers

Identify Legal Counsel

CONFIDENTIAL (NIGA Cannabis Certification Program Participants)

Questions and Answers

u CONTACT INFO:

TRAVIS NABAHE Founder and Owner

Nabahe Global Group, LLC travis.nabahe@gmail.com Cell # (505) 218-2624

CONFIDENTIAL (NIGA Cannabis Certification Program Participants)

3/12/23

• Even though hemp and marijuana are both the same species of plant, there are important ways in which they differ. Understanding these can help you navigate the cannabis market. I like to refer to these two cannabis plants as Cousin plants. • In the United States, marijuana is defined as any cannabis sativa plant that has a greater than 0.3 percent THC. THC , short for tetrahydrocannabinol, is the primary psychoactive compound in cannabis. The more THC you consume, the more changes you will notice in your cognition and how you feel. In essence, THC gets you “high”

INTRODUCTION TO HEMP/CANNABIS cont.

• Hemp plants are defined as any cannabis plant that has 0.3 percent or less THC. Even a plant with 0.4 percent THC would be classified as a marijuana plant, in spite of the fact that 0.4 percent isn’t going to have a noticeable psychoactive effect. • There are two types of hemp plants- hemp for oils (cbd, cbg, cbn, etc) and hemp for fiber and grain. • There are various uses for the hemp plant: fiber, paper, textiles, plastics, building supplies (hemp wood and hempcrete), edibles, topicals, spa products, tinctures, vape cartridges, biofuels, animal food and bedding, etc

Intro cont. Hemp

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CANNABIS

As cannabis legalization continues to gain more momentum, we are seeing more and more people bring this incredible plant into their lives. The negative stigmas’ surrounding cannabis are beginning to fade and we are heading in a brave new direction. Cannabis education is more important than ever because people need to be informed about cannabis, the industry that surrounds it, and how it interacts with their bodies. Cannabis has true healing power and boosting knowledge of the plant, its compounds, and the product lines created from it will greatly help you to help our customers decide how to incorporate cannabis into their lives.

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CANNABIS & YOUR HEALTH

CANNABINOIDS

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Cannabis is a complex plant. It produces many different compounds (cannabinoids) that all have different effects on the human body. Learning and understanding these different cannabinoids and how they interact with your endocannabinoid system is very important when you are assisting and educating our customers to incorporate cannabis into their lives. THC and CBD are the two most well- known cannabinoids, but we now know that there are approximately 140 other cannabinoid compounds that the cannabis plant can produce. Being educated on the cannabinoids, products available and the many different option for methods of consumption will help you easily navigate and educate our people.

There are large variety of cannabis products: Marijuana flower, concentrates, tinctures, drinks, and edibles, topicals and spa products. Flower: can be smoked and can be used to make a variety of different cannabis products. Concentrates: is derived from cannabis flower. Cannabis concentrates, oils and extracts offer many unique benefits that you won’t find smoking flower. Here a few examples: cannabis oil, shatter, hash, moonrocks, crumble, diamonds and terp sauce. Edibles: Are food items made with cannabis flower or concentrates. There is a wide selection of cannabis edibles. Tinctures: A tincture can vary in effect depending on if it is used sublingually, orally or used to infuse just about any dish you want. Sublingual is usually the fastest acting, but all tinctures are faster acting than your typical edible Topicals: Topicals are cannabis infused lotions, balms and oils that are absorbed through the skin for localized relief of pain, soreness, and inflammation. Topicals are not intoxicating for customers who want the benefits of marijuana without the cerebral euphoria associated with other deliver methods. Spa Products: Cannabis infused spa products can be very good for pain and other skin conditions. Examples: Bath bombs, body butter, lotions, and sugar scrubs, etc.

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Cannabis affects every individual differently. Even the same person may have a different experience on separate occasions or over the course of their life. Some of the factors that influence these different appear to be: 1. Size, weight and health 2. The person’s tolerance level 3. Amount taken 4. The strength of the cannabis 5. Expectations of consuming cannabis 6. The individual’s personality The effects of cannabis vary between people and may even be different for the same person at different times. Some people report feelings of relaxation and euphoria while other people report experiences of anxiety and paranoia.

The Effects of cannabis may be felt immediately if smoked, or within an hour or two if eaten and effects may include: 1. Feelings of relaxation and euphoria 2. Spontaneous laughter and excitement

3. Increased sociability 4. Increased appetite 5. Dry mouth

If large amount, strong batch, or concentrated form is consumed, you may be more likely to also experience: 1. Memory impairment

2. Slower reflexes 3. Bloodshot eyes 4. Increased heart rate 5. Mild anxiety and paranoia

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ENDOCANNABINOID SYSTEM

Cannabis Varieties: Sativa, Indica, Hybrid and Cannabis Ruderalis aka Hemp. Sativa is good for daytime use if you suffer from depression, mood disorders ADD or fatigue. Indica is good for anxiety, muscle spasms or pain. Indica enables you to be more restful. Hybrids is a cross-breeds of Indica and Sativa strains that carry some characteristics of each parent. Hemp is considered a cousin plant to marijuana. There are many uses to the hemp plant. The most popular is CBD. CBD has many healing properties.

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CANNABIS VS HEMP VS MARIJUANA

SATIVA vs INDICA

This Photo by Unknown Author is licensed under CC BY-ND

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Method of Consuming Cannabis:

Smoking: Smoking marijuana is the most widely and simplest used method of consuming cannabis. Peak effect: 15-30 minutes Duration: 2 – 3 hours Vaping: THC oil using a vape cartridge and battery. THC oil is highly concentrated Topical: Topical forms are typically used as creams or lotions, delivering active ingredients to the bloodstream through the skin. Peak effect: 1 hour Duration: 3 – 4 hours

Methods of Administration cont. Oral: Oral administration is one of the strongest delivery methods out there. Unlike inhaled Cannabis, ingested Cannabis is metabolized by the liver. This means that more THC is converted into usable forms by the body.

Peak effect: 2-6 hours Duration: 4-12 hours

Sublingual: Sublingual forms are administered under the tongue and may be faster acting as the medicine is absorbed into the blood through the mucosal membrane in the mouth.

Peak effect: 15 minutes Duration: 6-8 hours

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Terpenes: Are the organic compounds that provide aroma and flavor in cannabis and a variety of other plants. Terpenes are responsible for the aroma and flavors of cannabis and influence its effects by interacting with cannabinoids. Terpenes are formed inside cannabis trichomes, and their relative presence is directly affected by both the spectrum and intensity of light exposure. Terpenes do more than determine the scent fingerprint, they also provide therapeutic benefits like their cannabinoid partners. THC and CBD. Formed from the same shiny resinous trichomes as cannabinoids, cannabis terpenes also bind to the same endocannabinoid receptors located throughout the brain and body. For example, depending upon which receptors they react with, different terpenes may help to induce sleep and relax muscles while others reduce stress and elevate mood, or reduce inflammation and increase energy.

TERPENES

This Photo by Unknown Author is licensed under CC BY-SA-NC

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HEMP

HEMP FOR HEALING Hemp derived CBD is sourced from industrial hemp plants. Hemp is also differentiated from marijuana by its levels of THC, the cannabinoid that possesses intoxicating properties. There are many uses for the hemp plant a few examples, plastics, paper, textiles, and building products. The most popular use for Hemp is CBD. Due to the federal law legal hemp can only have .3 tenths of 1 percent of THC. This amount will not cause you to get the psychoactive effects like marijuana. There are many healing properties to hemp, everything made with cannabis, can made with hemp like: concentrates, smokable flower, tincture, edibles and even CBD for pets.

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HEMP & CANNABIS CANNABINOIDS

This Photo by Unknown Author is licensed under CC BY-SA-NC

CBD BENEFITS

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CBD BENEFITS

CBD OIL

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CBD FOR PETS

HEMP FOR THE EARTH

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HEMP CAN ELIMINATE TOXINS

HEMP PLASTICS

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HEMPCRETE & HEMP BOARDS • Hemp Board is a medium density fiberboard made from the inner, woody fibers of the hemp plant. There are no trees used to make hempboard. Subsituting hemp for wood products saves trees and prevents deforestation. Hemp Board is environmentally friendly. Hemp Board can be used as building materials, flooring and any other wood applications.

The number one priority is the health and safety of the consumer and to offer your customers a safe and tested product. All while giving them good customer service and great quality medicine. The Tribes can create their own programs by mirroring the States program. Tribes have proven success with gaming and Tribes can dominate the hemp/cannabis space as well by creating a regulatory authority to regulate on reservation.

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TRIBAL CANNABIS BUSINESS DEVELOPMENT

Tina Braithwaite sovereignnationscannabis@gmail.com (775) 223-3830

Agenda

´ Establish a Tribal Cannabis Ordinance ´ Establish a Tribal Cannabis Tax Ordinance ´ Establish a Tribal Cannabis LLC ´ Set up a Cannabis Commission to have full Regulatory oversight on all Tribal Lands

´ Choose a location away from our Children ´ Select a Name and Logo for your Business

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Tribal Cannabis Ordinance

´ Enact a Tribal Cannabis Ordinance to legalize Cannabis on Tribal Lands ´ Include language for a Cannabis Commission ´ Include language for the Regulating of cannabis on Tribal Lands ´ Include language to cover all aspects of the Cannabis Industry…Transportation, vendors, cultivation, distribution, retail, extraction, processing, consumption, 420 events.

Tribal Cannabis Tax Ordinance

´ Establish a Tribal Cannabis Tax ´ The options when enacting this into your business is you can either add the tax into the products and not tax at the register or you can tax at the register. ´ These tax dollars can be deposited into the Tribal Governments banks because they are no longer cannabis dollars they are a tax collected by the Tribal Government. ´ These tax dollars could be used to help fund the Tribes Essential programs.

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Establishing a Tribal Cannabis LLC

´ By Establishing a Tribal Cannabis LLC you can separate all Cannabis Activities away from all of your other businesses. ´ This prevents co-mingling of funds into the Tribal funds where grant funds are held. ´ Tribal chartered LLC gives you a layer of protection on reservation.

Establish a Cannabis Commission

´ Much like in gaming a Cannabis Commission will have full regulatory oversight on all Cannabis Activities on Tribal lands. ´ They will issue licensing, do background checks and arrange for applicants to get fingerprinted. ´ Cannabis Commission will handle all investigations ´ Cannabis Commission will answer to the Tribal Council ´ Cannabis Commission will vet all potential investors, partners and Operators looking to do business with the Tribe. ´ Select a good Seed to Sale Tracking System ´ Depending on the Tribal Cannabis Program a good closed loop system is recommended unless you want the State to access to Tribal information.

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Choosing a Location for your Business

´ You want to choose a good location for your business ´ Keep all Cannabis activities away from our Children. Examples: schools, churches, daycares, community centers, gyms, etc. ´ If you have a Casino, until it becomes federally legalized, Cannabis cannot be inside or touching the Casino but, it can be next door, across the street or even in the parking lot.

Select a Name and Logo for your Cannabis Business ´ It’s always best to have the support of your Tribal Community. ´ Stay away from Sacred Symbols unless you have the blessing of your People. ´ Be Creative because everything you do going forward will be a representation of your Tribe and business.

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THANK YOU!!! QUESTIONS?

3/12/23

TRIBAL CANNABIS BUSINESS TINA BRAITHWAITE SOVEREIGN NATIONS CANNABIS CONSULTING (775) 223-3830

AGENDA 1. Where to start 2. Opportunities in the Cannabis Space 3. State Market vs Tribal Market 4. Marijuana vs Hemp 5. What’s needed 6. Products and Accessories 7. Staff

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Where to start. • Tribal Cannabis Ordinance is needed to legalize Cannabis on Tribal lands. • Create Tribal Cannabis Tax Ordinance, this revenue could fund the Tribes essential programs. • Create a Cannabis Commission to Protect the Tribe and its assets. (Much like a Gaming Commission) • Educate your Membership, especially your Elders on Cannabis. • Speak with your local law enforcement, not to ask for permission but out of respect to simply inform them of your intentions.

Opportunities in the Cannabis Space • Retail Dispensary with a drive-up window (drive up could be open late hours or 24 hours depending on Ordinance) • Extraction-concentrates

• Processing-edibles, topicals, tinctures • Distribution-Nation to Nation sales

• Cultivation • 420 events • Consumption Lounges • Delivery Service • Testing Labs

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State Market vs Tribal Market

STATE MARKET

TRIBAL MARKET

• Tribe may be asked to wave sovereign immunity • Tribe will be regulated by the State • Tribe may be forced to pay the State Taxes

• Tribe protects its sovereign immunity. • Tribe has full regulatory oversight over its Cannabis Program. • Tribe collects all Taxes

Marijuana vs Hemp

MARIJUANA • Very regulated and still federally illegal. • Very limited on banking access. • Locations are very important. Do not place dispensaries to schools, daycares, churches, parks, or gyms. • Marijuana is a billion-dollar industry. • Is psychoactive when ignited with heat and will get you high.

HEMP • Has been legalized at the federal level • Hemp products can be sold out of all of the Tribe’s outlets. • Hemp will be the plant of the future with over 20,000 uses. • Hemp will be a trillion-dollar industry. • Will not get you high.

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What’s needed to start a successful Cannabis Business? • Business Plan • Start-up Capitol • Licensing • Educate yourself on your States Cannabis Laws and Regulations • Create a good Cannabis Commission to have full Regulatory Oversight of all Cannabis Activities on Tribal Lands. • Track and Trace • POS System • Make sure the Track & Trace, POS System and any online platform you decide to use integrate with each other.

what’s needed cont.

• A good location • Good quality and wide variety of products • Good Friendly and knowledgeable Staff • Be competitive in the market. • Security and surveillance • When planning and designing your business always think of the safety of your staff and customers.

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OFFER A GOOD VARIETY OF PRODUCTS AND ACCESSORIES • Flower –Sativa, Indica, and Hybrid • Vape Cartridges • Concentrates • Edibles • Tinctures • Topicals • Hemp Products • Wide variety of Accessories-bongs, pipes, dab rigs, papers, wraps, cartridges for vaping. • Cannabis and Hemp for Pets

Good friendly and knowledgeable Staff • Educate your Staff on the cannabinoids of the body and the different effects the variety of product could have on the customers. • Educate your Staff on the Cousin plants-Marijuana and Hemp • Have a good training program for Staff. • Be consistent with the importance of Compliance of the Ordinance and the Regulations. • Give your staff the proper tools to do a good job for the Tribe. • I recommend that your staff get a food handling card so that they learn the importance of rotating stock to prevent spoiled cannabis.

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