Verona N.Y. — The Oneida Indian Nation has announced plans to launch a “seed to sale” marijuana business that is expected to open retail outlets in 2023.
The Oneidas will grow and process marijuana in a new 50,000-square-foot facility to be built on Hill Road in Verona. Construction will start next month. Retail shops will be located on yet-to-be disclosed properties on nation territory. The Oneidas’ territory includes land in Oneida and Madison counties.
The Oneidas will join the Cayuga, Seneca and the Akwesasne Mohawk nations in establishing, or at least allowing, legal marijuana businesses in the wake of the state’s 2021 legalization of weed for adult recreational use.
New York state officials have said sovereign Indian nations are able to move into marijuana businesses independently of the state’s continuing effort to set up and license its legal pot industry.
The Cayugas currently have a growing/processing facility in Seneca County and a retail outlet in Union Springs in Cayuga County. The Mohawks have licensed outlets on its territory near Hogansburg in northern New York. There are about 20 retail outlets in Seneca territory in Western New York.
New York state, meanwhile, is continuing a roll out of the legal marijuana industry that could lead to some limited retail outlets later this year, with more possible in 2023. The state so far has issued 242 conditional licenses to grow marijuana and 15 licenses to process it into consumer products. There are no current retail licenses.
The Oneidas’ venture into marijuana comes under terms of the 2013 settlement agreement (or compact) with the state, which is also the framework for its other businesses, including gambling casinos, according to Joel Barkin, the nation’s vice president for communications.
The nation has worked with the state Office of Cannabis Management on its plans, Barkin said. The entire operation will be operated by the nation itself, and not through licenses to individuals.
The nation will apply the same tax as the state on marijuana sales to “avoid competition questions,” Barkin said. All the tax revenues will go to support the Oneida Nation and its municipal government services on the nation territory. Those include health care, education, public safety, and cultural preservation, according to a nation news release.
The “cannabis initiative is in furtherance of its (the nation’s) commitment to diversify its economic base and create separate revenue streams,” the news release said.
The Oneidas are also operating under rules and restrictions that are “comparable” to those adopted by the state for its licensed industry. That include age restrictions (21 and older) and limits on purchase amounts.
The Oneidas have also reached an agreement with the state cannabis office to “create a joint inspection partnership of their cannabis products” for quality control and safety.
Despite its entry into the marijuana business, consumption of cannabis products will continue to be prohibited at Oneida Nation Enterprises operations such as Turning Stone and its other casinos, hotels, restaurants, bars, and entertainment venues.
“As more and more states across the country enter into the cannabis business, including neighboring states and other tribal nations, it is important that the Oneida people not be left out from taking advantage of this economic opportunity,” Ray Halbritter, Oneida Indian Nation Representative and Oneida Nation Enterprises CEO, said in the news release. “We are excited about this new venture and are confident based on our expertise and proven track record within other highly regulated industries that we will be able to set the standard for developing a safe and successful adult recreational cannabis business on Oneida Indian Nation lands.”
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Don Cazentre writes for NYup.com, syracuse.com and The Post-Standard. Reach him at dcazentre@nyup.com, or follow him at NYup.com, on Twitter or Facebook.
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