‘Cannabis industry is growing’

A total of 16 commercial cannabis licenses have already been issued in the CNMI: eight marijuana producers, six marijuana retailers, one marijuana processor, and one marijuana lounge licensee, according to CNMI Cannabis Commission managing director Mikiotti Evangelista.

That translates to $75,400 in total licensing fees every year, according to Evangelista, who gave an update on the status of the commission to members of the House of Representatives Cannabis Committee on Tuesday.

He said that, as of Sept. 30, 2023, there were 59 employees in the CNMI’s cannabis industry, compared to just 17 a year and a half ago.

“So we are seeing growth,” he said.

On top of that 16 commercial cannabis licenses issued, Evangelista said they also have nine pending applicants—three marijuana producers, two marijuana processors, and four marijuana retailers.

Two of the pending applicants—one marijuana producer and one marijuana processor—were scheduled to appear before the commission yesterday morning, Wednesday.

If all goes well and these applicants become licensees, they’re looking at another $38,700 in potential licensing fees every year, Evangelista said.

All this additional income translates to a 66.3% increase in revenue between fiscal year 2022 and fiscal year 2023, Evangelista said, with the total collected in the first two months of fiscal year 2024 reaching $63,372.

He said it is worth noting that the total collected in the first two months of fiscal year 2023 was already about $34,400.

As for their other revenue stream, Evangelista said the commission collected about $53,500 in application and license fees in fiscal year 2022 and then more than double that amount in fiscal year 2023, at $118,275.

As for the budget appropriated to the commission through fiscal year 2024, Evangelista said it’s $113,007 for three full-time employees, including himself. For the board’s compensation, it’s $275,000 per year for five board members.

Evangelista said they’ve had a few challenges so far but the main issue is the lack of funding.

“Today we are halfway up that hill. The funding is available from revenue generated solely by the cannabis industry,” he said.

Evangelista said they need the Legislature’s help in appropriating enough funds so the commission can operate as a fully functioning regulatory agency.

He underscored the need to purchase a vehicle due to difficulties they face in carrying out the commission’s most basic duties without one.

Once funds are appropriated, they intend to conduct public education outreach presentations, and Department of Public Safety enforcement training with an emphasis on Tinian and Rota as such trainings have not been conducted there yet.

Evangelista said they also look forward to hiring staff for the Compliance Enforcement Division with two cannabis control agents to conduct scheduled and random inspections, and validate monthly reports submitted by licensees.

He said they want to ensure that licensees are playing by the rules governing this industry.

The managing director said they also need to hire one license and permitting officer to meet the demands of this growing industry.