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As Feds Turn Blind Eye To Pot In Reservations, Some Tribes See Dollar Signs

David McNew Getty Images

Havasupai Chairman Rex Tilousi recently sang for a crowd in Flagstaff. He says his people have subsisted off of farming for generations so growing and selling medicinal marijuana would be a good fit.
Laurel Morales KJZZ
Havasupai Chairman Rex Tilousi recently sang for a crowd in Flagstaff. He says his people have subsisted off of farming for generations so growing and selling medicinal marijuana would be a good fit.

The Havasupai Reservation is best known for its waterfalls. Tourism is the tribe's main source of income.
Laurel Morales KJZZ
The Havasupai Reservation is best known for its waterfalls. Tourism is the tribe's main source of income.

The Department of Justice recently released a memo saying it would treat American Indian tribes with the same hands-off approach it treats states that have legalized pot.

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That move inadvertently sparked interest among tribes in getting into the pot business. While many see dollar signs, others worry about the destructive legacy substance abuse has had on Indian Country.

Havasupai Tribe Chairman Rex Tilousi says he was relieved to hear the Justice

Department was recognizing tribal sovereignty when it comes to marijuana. His tribe has grown and smoked marijuana plants for over a century near the Grand Canyon.

"I felt very free," he says. "I don't have to hide behind that rock. I don't have to go into those bushes to smoke."

The Havasupai make what little money they have taking visitors by mule and helicopter to see their famous turquoise blue waterfalls.

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However, tourism is seasonal. So Tilousi says to have another economic source like growing and selling medical marijuana would really benefit his people.

Since the Justice Department's memo was released in December, FoxBarry Farms, has been inundated with more than a hundred calls from tribes that want to start grow operations.

"All tribes generally speaking want the same thing and that's economic independence," says Barry Brautman, the president of FoxBarry, who helps tribes build casinos, hotels and now medical marijuana operations.

"They want housing, healthcare, education," he says. "They want to be able to fund those things themselves without having to ask for government's assistance."

A tiny northern California tribe, the Pinoleville Pomo Nation, will be the first to grow and manufacture medical marijuana. FoxBarry Farms is helping the tribe build a 10 million dollar grow house. Brautman expects to recoup his company's investments and then some.

Navajo Nation President Ben Shelly's spokesman Deswood Tome says he understands how lucrative pot could be, but also understands the drawbacks.

"This is opportunity for economic growth and jobs," he says. "But there are so many questions that remain as to the safety of people. How is it going to be controlled? Is this going to attract the criminal element?"

Johnnie Jay smoked pot years ago and says she's skeptical about what good a marijuana grow operation would bring her tribe.

"Somehow it would get corrupted and not be for what it was intended to be," he says. "So it is not a good idea for our tribe's economy, although we desperately need economic growth and opportunity."

Hopi leadership see the earnings potential but current tribal law still considers possession of marijuana a criminal act. Many throughout Indian Country worry legalized pot could lead to some of the same painful consequences as alcohol.

For its part, The Justice Department says the intent of the memo wasn't to motivate tribes to get into the marijuana business. It was meant to prioritize laws against gangs and violence, driving while high, and selling to minors, among other problems.

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