Spilyay Tymoo, Warm Springs, Oregon
November 12, 2015
Page 8
Frequently asked questions: Cannabis referendum
What is the Cannabis
commercialization
project?
Answer: The project would
be highly limited in scope.
It would initially involve a
tribally owned enterprise to
own and operate cannabis
and marijuana production,
processing, wholesale and re-
tail sales of these products.
These activities would also
be highly regulated through
licensing requirements that
would track all of the seeds,
plants and products to ensure
they are sold only at approved
outlets for off-reservation
use.
The referendum is also au-
thorizing the production, sale,
wholesale and retail sale of
industrial hemp for future de-
velopment.
Would this legalize
marijuana on the reserva-
tion?
The referendum would
not approve legalization of
cannabinoid-containing prod-
ucts or marijuana for use on
the reservation.
It would only legalize these
products for the purpose of
production, processing,
wholesale and retail sale for
off-reservation use only.
Why are we not being
asked to legalize mari-
juana for recreational or
medical use on the reser-
vation?
That question involves
complex health and commu-
nity concerns that are outside
the scope of this effort to
bolster economic opportunity
on the reservation.
This discussion should
continue within the member-
ship but should not be con-
fused with the question on the
referendum.
Why is industrial hemp
included in the referen-
dum?
Industrial hemp does not
contain the constituents in
marijuana or cannabinoid
products that product a
“high.”
It is generally believed to
be a useful product for com-
mercial and industrial pur-
poses, for example fiber for
ropes or garments.
The Confederated Tribes
has no immediate plans to de-
velop industrial hemp regula-
tions or to permit these fa-
cilities. However, tribal mem-
bers have expressed an inter-
est in pursuing this market.
Accordingly, industrial
hemp is included to allow
tribal members the ability to
develop potential business
opportunities that the tribe
would consider allowing after
it promulgates appropriate
regulations.
How will tribal mem-
bers benefit?
The project will produce
both commercial revenues
and tax revenues that will go
to the tribe to fund govern-
mental services and infra-
structure as well as fund fur-
ther economic development
opportunities.
In addition, a portion of
all tax revenue would be dedi-
cated to public health, safety
and welfare which will be di-
rected to combat chronic
problems on the reservation
such as substance abuse and
associated violence.
All of this benefits tribal
members through improved
public safety, services and job
creation opportunities.
In addition, tribal mem-
bers may also seek to create
businesses and employ tribal
members associated with busi-
ness opportunities related to
industrial hemp.
Won’t this really just
provide more opportunity
for tribal members to ac-
quire marijuana for per-
sonal use and therefore
harm tribal members and
the community?
Answer: The State of Or-
egon has already legalized
marijuana for personal recre-
ational and medical use.
Bringing production and
sale facilities on the reserva-
tion for the purpose of tribal
revenue generation and job
creation will not increase ac-
cess to pot because access to
pot is already pervasive due
to the state law and ongoing
criminal production. Our
public safety officials lack suf-
ficient resources to effec-
tively enforce our laws.
What the project will do is
capture resources that would
otherwise bypass the tribe
that will improve our ability
to enforce our laws that pro-
hibit on-reservation use and
illegal production.
Why should we approve
a tax on tribal businesses?
There are two reasons.
The most important reason
is that the Confederated
Tribes need more revenue to
better fund public health and
safety programs, including
substance abuse treatment
and prevention.
The second reason is that
the project hinges on being
able to sell marijuana for off-
reservation use in the state
of Oregon, where it is legal
under state law.
In order for the tribe’s
marijuana to be deemed “le-
gal” by the state for off-res-
ervation sale and use, we
have to impose regulations
that are at least as strict as
the state laws, including im-
posing a tax related to the sale
of marijuana and imposing li-
censing fees.
In other words, in order
to be able to sell the mari-
juana and generate business
revenues, we must also tax
the business making the mari-
juana sales. Because the tribe
is considering allowing only a
tribally owned enterprise to
engage in the market, this
must be made to apply to
tribal business.
Will this mean that
tribal members will be
taxed?
No. The proposed tax
would be limited to any busi-
ness on the reservation en-
gaged in the marijuana or in-
dustrial hemp businesses. The
tax would not be directly on
tribal members.
How do we know the
taxes will be reasonable?
The marijuana production
and sale market will be very
competitive. It is therefore
in the tribe’s best interest to
have competitive pricing of
products to increase sales and
commercial revenues.
Taxes merely increase the
end cost of the marijuana
products, so it is in the best
interest of the tribe to mini-
mize these taxes and fees to
the extent possible.
For example, the state of
Oregon imposes a 17-20 per-
cent tax on the retail sale of
marijuana. While the Tribe
likely has to at least “meet”
the state’s tax rate in order to
be deemed “legal” pot, the
tribe will not impose a tax that
exceeds this amount.
Why are we being
asked to approve a new
enterprise?
The tribe is in the early
stages of any actual business
relationship, so we are still
evaluating the best commer-
cial structure for the project.
Obtaining this approval
will allow for more choices on
the best way for the tribe to
structure its business to best
protect tribal assets and the
membership.
Will this change federal
law?
No. The proposed tribal
code changes are intended to
allow limited production and
sale of marijuana in a man-
ner consistent with the “Cole
Memorandum.” This memo-
Warm Springs
Seekseequa
4202
Holliday St.
Courtesy photo.
Example of commercial cannabis growing operation.
randum is a federal enforce-
ment policy that allows for
state and tribal regulation of
marijuana if certain standards
are met without the interfer-
ence of federal criminal pros-
ecution.
Marijuana and industrial
hemp will still be considered
a Schedule I controlled sub-
stance under the federal Con-
trolled Substances Act, and
the personal possession and
use of these substances will
still be considered both a
tribal and federal crime.
What is the Cole Memo-
randum?
In 2013, Deputy Attorney
General James M. Cole re-
leased a memorandum to all
U.S. Attorneys, regarding
marijuana enforcement. And
later, in 2014, the federal gov-
ernment specifically ad-
dressed that the Cole Memo-
randum would apply in Indian
Country.
The Cole Memorandum
listed eight priorities where
federal authorities will focus
its legislative investigative and
prosecutorial resources:
1. Preventing the distribu-
tion of marijuana to minors;
2. Preventing revenue
from the sale of marijuana
from going to criminal enter-
prises, gangs, and cartels;
3. Preventing the diver-
sion of marijuana from
states where it is legal under
state law in some form to
other states;
4. Preventing state-autho-
rized marijuana activity from
being used as cover or pre-
text for the trafficking of
other illegal drugs or illegal
activity;
5. Preventing violence and
the use of firearms in the
cultivation and distribution of
Simnasho
Schoolie Flat
Call 541-
615-0555
marijuana;
6. Preventing dr ug ged
driving and the exacerbation
of other adverse public health
consequences associated with
marijuana use;
7. Preventing the growing
of marijuana on public lands
and the attendant public
safety and environmental dan-
gers posed by marijuana pro-
duction on public lands; and
8. Preventing marijuana
possession or use on federal
property
It is important to empha-
size that the Cole and
Wilkinson memoranda are
simply enforcement policy
memorandums.
These do not change the
current status of the law,
which currently criminalizes
marijuana cultivation, posses-
sion, sale and use. It merely
provides a statement as to the
current policy on enforce-
ment of that federal law.
Why should we approve
something that violates
federal law? What are the
consequences?
Legalization of marijuana
and industrial hemp is occur-
ring at the grass roots level.
Twenty-three states and
the District of Columbia cur-
2321
Ollallie
Lane
Warm
Springs
Call 541-
553-1182
rent have laws legalizing mari-
juana in some form.
Four states—Oregon,
Washington, Colorado and
Alaska—have legalized mari-
juana for recreational use.
The federal executive has
decided to allow this grass
roots effort to move forward
without federal prosecution
if certain standards are in
place.
This has created a new
market for a product that can
be grown on the reservation
for legal sale.
Currently, marijuana is
grown illegally around the
state of Oregon, including on
the reservation. This would
provide the opportunity to
regulate and tax it to benefit
the tribal membership.
Federal criminal and civil
remedies would remain un-
changed on the books, and if
the federal policy changes, en-
forcement may resume. While
there are no guarantees, it
seems unlikely that criminal
enforcement would be pur-
sued for activities that are
implemented while the Cole
Memorandum is in place, but
it could very well mean los-
ing the tribe’s investment in
the project.
Accordingly, there is no
doubt a risk. This referen-
dum is coming before the
membership because, on bal-
ance, there appears to be
more opportunity than risk
for the membership because:
· Significant revenue gen-
eration potential to fund
tribal needs including im-
proved enforcement of ex-
isting laws banning the use
and illegal production of
marijuana on the reservation.
· Significant job creation
potential.
· Potential to “capture”
revenues that would go to
other markets and bypass the
tribe.