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Montana lawmakers passed a bill to allow tribal nations and the governor's office to establish compacts to legalize and regulate cannabis on reservations. This bill addresses issues for tribal cannabis operations by allowing negotiation on tax issues, production caps, and more. Proponents say the compacts will give reservations the freedom to mitigate cannabis use or promote economic growth, while opponents argue the change is unnecessary.

Montana Passes Bill to Allow Tribal Cannabis Agreements

Apr 28, 2025

Graham Abbott

Ganjapreneur



Montana lawmakers have passed a bill to allow the state’s tribal nations
and the governor’s office to establish compacts to legalize and regulate
cannabis on individual reservations, the Montana Free Press reports.

Montana’s cannabis legalization law created issues for tribal cannabis
operations, including limited licensing opportunities, limited license
types, and heavy restrictions on where and how the tribes could establish
dispensaries. The tribal compacts bill, sponsored by state Rep. Frank Smith
(D), would address these issues by allowing tribal and state government
officials to negotiate on tax issues, production caps, and more.

Patrick Yawakie, co-founder of Red Medicine, LLC, said in the report that
the cannabis compacts would be similar to the tribal gaming compacts
already in place.

“House Bill 952 is a proactive way to address tribal operations and other
topics in partnership through intergovernmental relations.” — Yawakie, via
the Free Press

The proposal, House Bill 952, was passed earlier this month with support
from most Democratic lawmakers and enough of the Republicans, who hold the
majority in the Legislature.

Proponents of the compacts say they will give reservations the freedom to
either attempt to mitigate the use of cannabis or use it as an opportunity
to promote economic growth, while opponents argue the change is unnecessary.

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