3.9224 MEDICAL CANNABIS; COMPACTS TO BE NEGOTIATED.

Subdivision 1.

Definitions.

(a) As used in this section, the following terms have the
meanings given.

(b) "Medical cannabis law" or "medical cannabis program" means the regulatory
framework for cultivation, production, distribution, and sale of cannabis to qualifying
patients for therapeutic use in the treatment of a qualifying condition.

(c) "deleted text begin Medicaldeleted text end Cannabis flower" means cannabis flower approved for sale under the
medical cannabis law of a Minnesota Tribal government or under a compact entered into
under this section.

(d) "Medical cannabis product" means a cannabis product approved for sale under the
medical cannabis law of a Minnesota Tribal government or under a compact entered into
under this section.

(e) "Medical cannabis business" means a deleted text begin medicaldeleted text end cannabis deleted text begin cultivator, processor, or
retailerdeleted text end new text begin business with a medical cannabis retail endorsementnew text end .

(f) "Medical cannabis industry" means every item, product, person, process, action,
business, or other thing or activity related to deleted text begin medicaldeleted text end cannabis flower or medical cannabis
products and subject to regulation under the law of a Minnesota Tribal government or under
a compact entered into under this section.

(g) "Cannabis product" means any of the following:

(1) cannabis concentrate;

(2) a product infused with cannabinoids, whether artificially derived, or extracted or
derived from cannabis plants or cannabis flower, including but not limited to
tetrahydrocannabinol; or

(3) any other product that contains cannabis concentrate.

(h) "Minnesota Tribal governments" means the following federally recognized Indian
Tribes located in Minnesota:

(1) Bois Forte Band;

(2) Fond Du Lac Band;

(3) Grand Portage Band;

(4) Leech Lake Band;

(5) Mille Lacs Band;

(6) White Earth Band;

(7) Red Lake Nation;

(8) Lower Sioux Indian Community;

(9) Prairie Island Indian Community;

(10) Shakopee Mdewakanton Sioux Community; and

(11) Upper Sioux Indian Community.

(i) "Tribal medical cannabis business" means a medical cannabis business licensed by
a Minnesota Tribal government, including the business categories identified in paragraph
(e), as well as any others that may be provided under the law of a Minnesota Tribal
government.

(j) "Tribally regulated land" means:

(1) all land held in trust by the United States for the benefit of a Minnesota Tribal
government ("trust land");

(2) all land held by a Minnesota Tribal government in restricted fee status; and

(3) all land within the exterior boundaries of the reservation of a Minnesota Tribal
government that is subject to the civil regulatory jurisdiction of the Tribal government. For
the purposes of this section, land that is subject to the civil regulatory jurisdiction of the
Tribal government includes:

(i) trust land, or fee land held, including leased land, by the Tribe, entities organized
under Tribal law, or individual Indians; and

(ii) land held, including leased land, by non-Indian entities or individuals who consent
to the civil regulation of the Tribal government or are otherwise subject to such regulation
under federal law.

Subd. 2.

Acknowledgment and purpose; negotiations authorized.

(a) The state of
Minnesota acknowledges the sovereign right of Minnesota Tribal governments to regulate
the medical cannabis industry and address other matters of cannabis regulation related to
the internal affairs of Minnesota Tribal governments or otherwise within their jurisdiction,
without regard to whether such Tribal government has entered a compact authorized by this
section. The purpose of this section is to provide for the negotiation of compacts to
proactively address jurisdictional issues related to the regulation of the medical cannabis
industry. The legislature finds that these agreements will 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 medical cannabis market, encourage economic
development, and provide fiscal benefits to both Indian Tribes and the state.

(b) The governor or the governor's designee shall negotiate in good faith, and has the
authority to execute and bind the state to, a compact with any Minnesota Tribal government
wishing to enter into such a compact regulating deleted text begin medicaldeleted text end cannabis flower and medical
cannabis products.

Subd. 3.

Terms of compact; rights of parties.

(a) A compact agreed to under this
section may address any issues related to the medical cannabis industry, including deleted text begin medicaldeleted text end
cannabis flower, medical cannabis products, extracts, concentrates, and artificially derived
cannabinoids that affect the interest of both the state and Minnesota Tribal government or
otherwise have an impact on Tribal-state relations. Indian Tribes are not required to enter
into compacts pursuant to this section in order to regulate the medical cannabis industry,
or engage in medical cannabis businesses or activities on Tribally regulated land or participate
as a licensee in the state's legal medical cannabis market.

(b) The state shall not, as a condition for entering into a compact under this section:

(1) require any Minnesota Tribal government to waive any right, privilege, or immunity
based on their status as independent sovereigns;

(2) require that any revenue generated by a medical cannabis business licensed by a
Minnesota Tribal government be subject to any state cannabis gross receipt taxes or state
and local sales or use taxes on sales of cannabis;

(3) require any taxes collected by Minnesota Tribal governments to be shared in any
manner with the state or any subdivisions thereof;

(4) require a Minnesota Tribal government to consent to state licensing of a medical
cannabis business on the Tribally regulated land of the Minnesota Tribal government;

(5) require any Minnesota Tribal government or any medical cannabis business licensed
by a Minnesota Tribal government pursuant to a compact agreed to under this section to
comply with specific state law or regulations on Tribally regulated land; or

(6) impose, or attempt to impose, and shall not require or attempt to require any Indian
Tribe to impose, any taxes, fees, assessments, and other charges related to the production,
processing, sale, purchase, distribution, or possession of deleted text begin medicaldeleted text end cannabis flower and medical
cannabis products on Minnesota Tribal governments, or their members, on a reservation or
Tribally regulated land.

(c) Compacts agreed to under this section may allow an exemption from any otherwise
applicable tax for: (i) sales to a Minnesota Tribal government, a Tribal medical cannabis
business, or Tribal members, of deleted text begin medicaldelete