North Carolina tribe may legalize recreational marijuana use, expand dispensary sales

The Eastern Band of Cherokee Indians will soon vote on whether to legalize adult use of marijuana on tribal lands in North Carolina.

If the measure passes, the tribe’s 57,000-acre Qualla Boundary in the western part of the state would become the only place in North Carolina where you could legally toke up a joint.

The tribe already plans to open what tribal officials call the world’s largest medical cannabis dispensary superstore. Having grown and cultivated medical marijuana for many months, original plans called for the tribe to issue regulated medical cards to eligible adults to buy from the dispensary. The retail operation is poised to be the first and only place to legally purchase marijuana in North Carolina.

With broader legalization on tribal lands a possibility, it remains unclear whether dispensary sales would still require a medical card. But discussion this week by tribe leaders suggest some are expecting the referendum could lead to recreational marijuana sales.

The referendum going to voters says adult use would apply to anyone 21 and older. No language in the referendum limits adult use to tribal members.

Cherokee marijuana legalization in North Carolina

Saying many tribal members support an adult-use referendum, the EBCI Tribal Council voted Thursday to hold the vote during the Sept. 7 tribal general election.

The tribe formed Qualla Enterprises LLC to run its for-profit cannabis business.

Allowing adult use will mean more customers and revenue for the tribe, Forrest Parker, Qualla Enterprises general manager, told the council Thursday.

“So we 1,000% support this,” Parker said, referring to the referendum. “Adult use is critically important to the business, if you look at it from a revenue standpoint.”

“It is the ultimate business model for us,” Parker said about adult use. “Think how many more people will walk through the door. Fundamentally, we’re prepared to handle it.”

Council member Teresa McCoy, who represents the EBCI’s Big Cove/Tow String community, submitted the resolution Thursday that calls for the referendum.

“If our voters say no, they don’t want adult use, then let’s fly in there and get that medicinal,” McCoy told fellow council members Thursday. “If they say they do want adult use, then move forward. It’s that simple. I’m not for or against it.”

Qualla Boundary lies 46 miles west of Asheville, past Lake Junaluska and Maggie Valley.

About 9,600 people live on Qualla Boundary, 77% Indian, 23% non-Indian, according to the census. EBCI has 14,000 total members.

Cherokee dispensary

The Cherokee medical cannabis dispensary will be in the tribe’s massive old bingo hall on U.S. 19 South near Harrah’s Cherokee Casino Resort. The store would be the only location in a three-hour’s drive from Charlotte where weed is sold legally. The site is about 4-1/2 hours from Raleigh.

No opening date for the dispensary has been announced as tribal leaders wrangle with funding issues involving the operation. Whenever the dispensary opens, the tribe will be well ahead of the state in reaping money from cannabis sales.

Legislation that would legalize marijuana use for medicinal purposes in North Carolina is probably dead for the rest of this year’s General Assembly session, House Speaker Tim Moore said Tuesday, The Associated Press reported. Moore cited opposition by many fellow Republicans in his chamber.

The tribe has actively explored the cannabis market since 2018, according to the adult-use resolution introduced by McCoy.

In 2021, the tribe decriminalized possession of small amounts of marijuana and formed a medical marijuana system that includes a cannabis control board and Qualla Enterprises LLC.

Qualla Enterprises has produced $25 million in product that’s in a climate-controlled room awaiting the dispensary opening, Parker told the council Thursday.

The tribe also has developed what would be the first two unique strains of marijuana legally sold in North Carolina, named “Qualla Bear” and “Goose Creep,” Parker told The Charlotte Observer on an exclusive tour of the tribe’s growing operation in March.

And more proprietary strains are on the way, he said.

Economic benefits

Legalizing adult-use would spare people expensive doctor visits required to get a medical marijuana card from the EBCI Cannabis Control Board, according to Thursday’s resolution.

People would have “personal control over their own health sovereignty,” the resolution says.

If approved, the Sept. 7 referendum would require the EBCI Tribal Council to develop legislation to regulate the tribe’s cannabis market.

“Responsibly expanding and streamlining cannabis sales is a critical part of economic development and a means to provide revenue to the Tribe,” according to the resolution. “The Tribe has positioned its people to maximize all medical, social and economic benefits from tested, safe and regulated cannabis.”

When will the dispensary open?

The tribe’s dispensary will open only to tribal members at first but later to North Carolina residents and others, The Charlotte Observer previously reported.

Anybody right now can apply to the EBCI Cannabis Control Board for a medical cannabis card to buy products at the dispensary, but cards will be issued only to EBCI members initially, tribal officials said.

Tribal officials hope to open the dispensary by fall, Parker told the Observer in March.

The opening became uncertain after EBCI Principal Chief Richard Sneed vetoed $64 million in additional funding for the medical cannabis operation this spring, the Observer reported at the time.

Funding concerns

Council member Michael Stamper voted against Thursday’s motion, questioning whether the tribe has the money to support the expected influx of people.

“Right now, we’re having issues funding the medical portion of it,” Stamper said. “I don’t have reason to think (the referendum) wouldn’t pass. But I do fear that the immense support to push to get us into a deeper market that we don’t really have the financials to support right now, would be overwhelming and could cause some fiscal issues down the road.”

“Right now, we’re just trying to get medical off the ground,” Stamper said.

Chairman Richard French and Vice Chairman Albert Rose backed the call for an adult use referendum.

French said marijuana revenues are more crucial than ever to the future of the tribe because the casino is losing money to new out-of-state competitors, and three gaming enterprises intend to open in the state.

“I’m behind it 100%, and I’ll do everything I can to find funding for it,” French said at Thursday’s meeting. “We know we can’t give you the $64 million that you need. But we can give you something — something to keep you going and get it on its feet and get the doors open.”

The audience broke out in applause.

“This started out for our people,” Rose said. “It’s the community’s project. So it’s very important this goes out to the people to let them vote on.”

Referendum Question

The Sept. 7 referendum question reads:

“Do you support legalizing the possession and use of cannabis for persons who are at least 21 years old, and require the EBCI Tribal Council to develop legislation to regulate the market?”