Michigan Signs Tribal Cannabis Compact With Bay Mills Indian Community

[PRESS RELEASE] – LANSING, Mich., Aug. 1, 2025 – In a historic development for cannabis policy and tribal sovereignty in Michigan, the Cannabis Regulatory Agency (CRA) and the Bay Mills Indian Community (BMIC) have officially signed the state’s first tribal-state cannabis compact, allowing the Upper Peninsula-based tribal nation to participate directly in Michigan’s licensed adult-use cannabis market.

The agreement, finalized on July 25, 2025, allows Bay Mills to integrate its Northern Light Cannabis Company into Michigan’s statewide Metrc tracking system and access the same wholesale and distribution channels as other licensed operators. The compact marks a major shift in how tribal and state governments can collaborate in emerging, regulated markets.

“This agreement reflects our shared commitment to safe, equitable and well-regulated cannabis commerce,” CRA Executive Director Brian Hanna said. “Welcoming BMIC into the regulated framework sets a model for tribal-state cooperation nationwide.”

“This compact represents a historic affirmation of tribal sovereignty and our inherent right to govern economic development on our own terms,” BMIC President Whitney Gravelle said. “We are proud to lead the way in establishing a framework for tribal-state cooperation in the cannabis industry, one that respects self-determination, promotes equity and opens the door for future partnerships grounded in mutual respect.”

BMIC was the first Michigan tribal nation to legalize adult-use cannabis on tribal lands in 2019 and launched its own tribally owned cannabis brand, Northern Light, in 2021. The company grows and produces organically cultivated cannabis at a vertically integrated facility in Chippewa County. Until now, its operations were limited to BMIC’s sovereign lands and the limited retail reach permitted by tribal law.

With this compact, BMIC will now be able to:

• Sell products, including flower, concentrates and edibles, across the state through licensed distributors and retailers
• Participate in CRA-led compliance, testing and inspection protocols
• Integrate into Michigan’s statewide monitoring system for full seed-to-sale tracking and consumer transparency
• Operate with the same privileges and responsibilities as other adult-use licensees statewide

The agreement creates a new category of participation in the cannabis industry for sovereign tribal governments in Michigan—one that respects tribal jurisdiction while aligning with statewide regulatory oversight. Importantly, the agreement allows the CRA to conduct inspections and audits, as well as monitor product safety and consumer protections, even on tribal lands, through mutual cooperation.

The tribal excise tax, along with statutorily required distributions from the Marihuana Regulation Fund, are expected to provide significant support to BMIC and its members as revenues will fund tribal infrastructure, education, public health programs and economic development projects throughout the region.

Currently, 12 federally recognized tribes reside in Michigan, many of which have expressed interest in pursuing similar compacts. State officials and tribal representatives have both acknowledged that clear, legally binding agreements like this one are necessary to avoid jurisdictional confusion, foster consumer trust and maintain a level playing field in a highly competitive and heavily scrutinized industry.

For answers to frequently asked questions about this agreement, click here.