>> CATHY: MINNESOTA'S FIRST TRIBAL OFF-RESERVATION MARIJUANA DISPENSARY OPENED ONE MONTH AGO.

THE RETAIL STORE IN MOORHEAD IS POSSIBLE THROUGH A COMPACT BETWEEN THE STATE AND THE WHITE EARTH BAND OF OJIBWE.

REPORTER KAOMI LEE WENT TO CLAY COUNTY TO SEE THIS HISTORY-MAKING FACILITY.

>> Kaomi: IT'S ANOTHER BUSY DAY AT THE CANNABIS DISPENSARY IN MOORHEAD.

COLORFUL ND BRIGHT AND AN OJIBWE FLOWER PATTERN ON THE WALLS AND AN EXPLANATION OF OJIBWE VALUES GREET CUSTOMERS.

A MEMBER OF THE SISSETON WAHPETON OYÁTE WAS THERE BEFORE IT OPENED.

>> I ONLY GOT A PREROLL TODAY.

SO JUST GOING TO BE LIKE A LITTLE DOOBIE.

>> Kaomi: TODAY SHE AND FRIEND, ANTON WADE, PURCHASED A CANNABIS IS HE THEY'VE APRODUCT CALLED LEMON OC HAZE.

IT PERTAINS 20% THC.

IT BOASTS 50 DIFFERENT FLAVORS FOR ITS PRODUCTS.

>> I LIKE IT.

IT'S A REALLY GOOD BRAND.

YOU CAN REALLY TASTE THE LEMON IN HERE.

>> Kaomi: THE CEO WAS BROUGHT IN BY HITE EARTH TO BUILD AND OVERSEE THE TRIBE'S ORIGINAL 15 MILLION CANNABIS ENTERPRISE.

TWO YEARS AGO, WHITE EARTH OPENED THE STATE'S SECOND CANNABIS DISPENSARY.

HE SAID THEY'RE NOW AT 130 EMPLOYEES.

AND THE NEW DISPENSARY IN MOORHEAD IS ALREADY SEEING TRIPLE THE TRAFFIC.

>> BEING IN A BIGGER METROPOLIS, A BIGGER CITY, A LOT MORE ACCESSIBILITY FOR FOLKS.

>> Kaomi: THEY'RE NOW ABLE TO TAP INTO THE FARGO-MOORHEAD METROPOLITAN AREA, ESTIMATED AT 261,000 PEOPLE.

A STATE COMPACT BETWEEN WHITE EARTH AND THE STATE MADE IT POSSIBLE.

>> IT'S TWO GOVERNMENTS, YOU KNOW, CO-EQUAL, COMING TOGETHER.

>> Kaomi: ERIC TAUBEL IS THE INTERIM HEAD OF THE OFFICE OF CANNABIS MANAGEMENT.

HE SAID THE COMPACT OUTLINES JURISDICTIONS REGARDING CANNABIS OPERATIONS OFF THE RESERVATION AND IS NATION LEADING.

>> MOST OF THE STATES HAVE RESERVED THE ACTIVITY FOR TRIBAL NATIONS TO ON RESERVATION, BUT LET THEM BECOME SORT OF STATE LICENSEES AND MOVE THROUGH THE STATE SYSTEM.

IN MINNESOTA, WE'VE TAKEN A DIFFERENT APPROACH.

>> Kaomi: WHITE EARTH WILL ASSUME REGULATORY AUTHORITY OVER TS OFF-RESERVATION DISPENSARIES.

WHITE EARTH SAYS ITS TESTING HAS HIGHER RIGOR THAN THE STATE STANDARD.

IT USES A SEED TO SALE TRACKING SYSTEM TO PREVENT PRODUCT ENDING UP ON THE BLACK MARKET.

OFF-RESERVATION PRODUCTS WILL ALSO HAVE A LOWER THC CONTENT, DIFFERENT PACKAGING, AND DISPENSARIES WILL MAINTAIN DISTANCES FROM SCHOOLS AND PARKS.

TAUBEL SAID IT WAS IMPORTANT AND STATUTORILY MANDATED THAT TRIBAL SOVEREIGNTY BE RESPECTED.

>> I THINK THE OVERALL SERIES OF CHOICES THAT WERE MADE AND THE LEGALIZATION MOVEMENT REALLY FOCUSED ON BROADLY GRANTING OPPORTUNITY TO GROUPS OR, IN THIS CASE, TRIBAL NATIONS, THAT HAD BEEN HARMED IN SOME WAY BY PROHIBITION.

>> Kaomi: HE SAYS THE STATE'S 11 NATIVE TRIBES OFTEN SCORE HIGH ON SOCIAL AND ECONOMIC VULNERABILITIES, LIKE THE NUMBER OF PEOPLE RECEIVING S.N.A.P.

AND W.I.C.

BENEFITS AND THOSE IN POVERTY.

THEY'RE ALSO OFTEN IN RURAL AREAS WHERE THERE'S FEWER JOBS.

>> WHEN WE THINK ABOUT HARM REPAIR, HELPING FELLOW MINNESOTANS SUCCEED, ECONOMIC DEVELOPMENT THAT CAN BE GENERATED THROUGH CANNABIS ACTIVITY FOR TRIBAL NATIONS IS ONE WAY TO REALLY DRIVE ECONOMIC BENEFIT.

>> Kaomi: WHILE WHITE EARTH MAY BE THE FIRST TO OPEN AN OFF-RESERVATION CANNABIS DISPENSARY, THE STATE IS AR INTO TALKS WITH FOUR TO SIX OTHER TRIBES.

ZACH WILSON ACKNOWLEDGES THEY HAVE AN ADVANTAGE OVER THE OPEN MARKET.

FOR NOW.

>> THERE'S ALSO A LOT OF DOWNSIDE TO THAT.

BEING THAT NOW THE CRITICS ARE EVEN MORE SO OUT AND WE HAVE TO MAKE SURE THAT, AGAIN, OUR PRODUCTS ARE SAFE AND OF HIGH-QUALITY STANDARDS BECAUSE ALL EYES ARE ON US.

>> Kaomi: A CANNABIS TAX OF 15% TAKES EFFECT JULY 1st.

THE PAYMENTS ARE SHARED BY THE TRIBE AND THE STATE.

THOUGH EXACT BREAKDOWN IS STILL BEING NEGOTIATED.

REGULAR STATE SALES AND LOCAL TAXES STILL APPLY.

>> THE BUSINESS THAT OPENED UP, WE ARE TREATING AS A BUSINESS, WITH SOME SPECIAL RULES AND REGULATIONS.

>> Kaomi: MOORHEAD MAYOR SHELLY CARLSON SAID WHITE EARTH MET THE LOCAL ZONING WILL ALSO PAY PROPERTY TAXES.

CARLSON SAYS THE DISPENSARY COULD DRIVE DOLLARS ACROSS THE STATE LINE.

>> OST OF THE TIME, IF YOU'RE NOT FROM THIS AREA, AND YOU'RE IN OUR COMMUNITY, YOU'RE NOT NECESSARILY GOING TO KNOW IF YOU'RE IN FARGO OR MOORHEAD.

>> Kaomi: BORDER CITIES AND DIFFERENT STATE LAWS POSE CHALLENGES.

REC CESSIONAL -- RECREATIONAL USE CANNABIS IS ILLEGAL IN NORTH DAKOTA, POSSESSING MORE THAN A HALF OUNCE IS IS A -- IS A MISDEMEANOR.

MINNESOTA LEGALIZED RECREATIONAL CANNABIS IN 2023.

HERE ANYONE 91 AND OLDER CAN POSSESS UP TO TWO OUNCES IN PUBLIC.

THE DISPENSARY SELLS TO ANYONE OF AGE, REGARDLESS OF ADDRESS.

FARGO POLICE CHIEF SAYS BASED ON NATIONAL DATA, I ANTICIPATE THE OPENING OF A CANNABIS DISPENSARY IN MOORHEAD WILL LEAD TO AN INCREASE IN IMPAIRED DRIVING.

NEVERTHELESS, THE FARGO POLICE DEPARTMENT WILL CONTINUE TO BE COMMITTED TO KEEPING OUR COMMUNITY SAFE.

THE DISPENSARY IS NOT STOPPING HERE.

IT'S SET TO OPEN A St.

CLOUD LOCATION NEXT MONTH.

HOWEVER, ITS EXACT ADDRESS HAD NOT YET REACHED THE MAYOR.

>> I THINK I READ ABOUT IT, BUT IT WAS MORE DIRECTLY WHEN I HEARD IT FROM YOU.

>> Kaomi: HE SAYS THE CITY HAS A LIMIT OF SIX DISPENSARIES.

IT WILL REALLY MAKE US EVALUATE WHAT WE'RE DOING LOCALLY SO THAT WE'RE NOT CREATING AN UNFAIR COMPETITIVE ADVANTAGE FOR EITHER SIDE.

>> Kaomi: LOCAL AID PAYMENTS FRS TAX WERE REPEALED IN THE TAX BILL, IN COUNTIES ALREADY RECEIVING -- AND COUNTIES ALREADY RECEIVING PAYMENTS WILL LOSE THEM AT THE END OF THE YEAR.

REGARDLESS, THE MAYOR SAYS CANNABIS COULD BE GOOD FOR HIS CITY.

>> THERE'S A HOPE THAT FOLKS GET A BETTER FEEL FOR St.

CLOUD, THEY COME TO