Second Minnesota Tribal-State Cannabis Compact Clears Path for Retail and Supply Partnerships

10 September 2025

Minnesota expanded its coordinated approach to cannabis regulation with a new tribal-state compact between Governor Tim Walz and the Mille Lacs Band of Ojibwe. The agreement, announced by the Office of Cannabis Management, makes Mille Lacs the second Tribal Nation after the White Earth Band of Chippewa to secure a compact that enables off-reservation adult-use retail and supply partnerships with state-licensed cannabis businesses.

The 78-page agreement outlines how the state and the Band will regulate cannabis together. It allows Mille Lacs to license up to eight off-reservation adult-use dispensaries statewide, with a limit of one location per city and three per county. Beyond its existing Lake Leaf dispensaries in Onamia and Hinckley, the Band operates a 50,000-square-foot cultivation facility that OCM says positions it to supply products to state-licensed retailers.

OCM Executive Director Eric Taubel said the compacts address jurisdictional issues and promote health and safety. Products sold by tribally owned businesses outside tribal lands must be tested and labeled to state standards. The Band will self-regulate day-to-day operations, while the state may conduct an annual inspection of each site. If regulators identify potential safety risks, they can perform additional inspections and embargo products.

Taubel noted that roughly 20 state-licensed retail businesses have struggled to source adult-use inventory during the market’s early rollout. The compact opens the door to partnerships that could bring additional flower and concentrates to shelves under aligned testing and labeling requirements. OCM said the Minnesota Legislature directed the Governor to negotiate compacts to coordinate regulation with Tribal Nations.

• For consumers, the agreement could expand access to regulated products as more stores come online.
• For patients, routine access remains through the medical program, with potential benefits if overall supply reliability improves.
• For operators, the compact provides a clear framework for wholesale agreements and compliance oversight, including testing, labeling, and inspection protocols.

According to OCM, the Mille Lacs compact is similar in substance to White Earth’s agreement with minor process differences, reflecting the same underlying regulatory approach.

As Minnesota’s adult-use market develops, the addition of tribally produced supply and off-reservation retail options is expected to influence store openings, product availability, and logistics across multiple regions of the state.