The Cannabis Regulatory Agency (CRA) and the Bay Mills Indian Community (BMIC) have signed Michigan's first tribal-state cannabis compact, enabling BMIC to participate directly in the state’s licensed adult-use cannabis market. The agreement was finalized on July 25, 2025.
With this compact, Bay Mills will integrate its Northern Light Cannabis Company into Michigan’s Metrc tracking system. The company will gain access to wholesale and distribution channels available to other licensed operators. This is seen as a new approach for collaboration between tribal and state governments in regulated markets.
“This agreement reflects our shared commitment to safe, equitable, and well-regulated cannabis commerce,” said Brian Hanna, Executive Director of the Cannabis Regulatory Agency. “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,” said BMIC President Whitney Gravelle. “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.”
Bay Mills was the first Michigan tribal nation to legalize adult-use cannabis on its lands in 2019 and started its tribally owned brand, Northern Light, in 2020. Previously, operations were limited to BMIC’s lands with restricted retail opportunities under tribal law.
The new compact allows BMIC to sell various products across Michigan through licensed distributors and retailers. It also enables participation in compliance checks, testing protocols led by CRA, and integration into statewide seed-to-sale monitoring for consumer transparency. Under the agreement, BMIC operates with similar privileges and responsibilities as other licensees statewide.
The arrangement establishes a pathway for sovereign tribal governments in Michigan to participate more broadly in the cannabis industry while maintaining their jurisdiction but aligning with state oversight. The CRA will be able to inspect facilities on tribal land by mutual agreement.
Revenue from tribal excise taxes and distributions from the Marihuana Regulation Fund is expected to support infrastructure projects, education initiatives, public health programs, and economic development within BMIC communities.
Michigan has 12 federally recognized tribes; several have shown interest in similar compacts. Both state officials and tribal leaders agree that clear agreements help prevent jurisdictional issues and promote trust among consumers while ensuring fair competition.
The CRA regulates all aspects of legal cannabis activity within Michigan including licensing and enforcement actions aimed at maintaining standards for public health and safety across both medical and adult-use markets.
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