First Nations Gain a Share of Cannabis Revenue

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The Saskatchewan government has introduced the On-Reserve Cannabis Refund Program Regulations under The Financial Administration Act, 1993 to establish a new revenue-sharing framework that returns a portion of provincial cannabis excise duty revenues to participating First Nations. The program is designed to recognize and support economic activity occurring on reserve lands by providing eligible First Nations with grants based on legal cannabis sales made by licensed retailers operating on their reserves.

Under the program, participating First Nations do not need to submit monthly grant applications. Instead, they are automatically deemed to have applied, allowing the Minister to assess eligibility and issue grants each month if all conditions are satisfied.

Grant amounts are determined using a formula that allocates 50 percent of Saskatchewan’s share of cannabis excise duty revenues according to each eligible First Nation’s proportion of provincial retail cannabis sales. The calculation compares total cannabis sales reported by eligible on-reserve retailers with total cannabis sales reported by all licensed retailers across Saskatchewan. As a result, funding is directly tied to actual sales activity rather than fixed allocations, allowing grants to increase or decrease as the legal cannabis market evolves.

Strong accountability measures are incorporated throughout the program. Both First Nations and retailers must provide records and information requested by the Minister for audit purposes, allowing compliance with program requirements to be verified. Records relating to the program must be retained for six years, ensuring documentation remains available for future reviews or investigations.

The regulations also establish procedures for addressing overpayments. If the Minister determines that false or misleading information has been provided, required information has been withheld, or compliance standards have not been maintained, all or part of a grant may be declared an overpayment. Any overpaid amounts become debts owed to the Government of Saskatchewan and may be recovered using the enforcement powers available under provincial financial and revenue legislation.

Administrative provisions govern how notices and decisions may be served, including by personal delivery, regular or registered mail, and email, with specific timelines establishing when service is considered complete. The regulations also outline information-sharing arrangements between the Minister and the Cannabis Authority to facilitate program administration while maintaining confidentiality safeguards. Limited disclosure is permitted where necessary for administration, public reporting, or where otherwise authorized by law.

Saskatchewan (283/2026) July 7, 2026
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.