THE local cannabis industry generated $173,267 in application and license fees from fiscal year 2022 to the first two months of FY 2024, CNMI Cannabis Commission Managing Director Mikiotti Evangelista told the House Committee on Cannabis.
Evangelista provided the committee with industry updates on Tuesday. With him were acting Cannabis Commission Chairman Juan Iguel, Vice Chair Journie M. Hofschneider and Executive Secretary Natasha Palacios.
The House Cannabis Committee chairman, Rep. Diego Vincent F. Camacho, and members asked Evangelista and the commissioners about where the industry stands now in terms of income.
Earlier this month, former Cannabis Commission Chairman Joe Palacios, whose re-nomination is expected to be confirmed soon, told the Saipan and Northern Islands Legislative Delegation that the CNMI cannabis industry was generating between $1.2 million and $1.3 million a year since 2019. He was referring to the total revenues generated by licensed cannabis growers, retailers, lounge operators and processors.
During the committee meeting on Tuesday, Evangelista told the House panel that the CNMI cannabis industry “has seen growth in the past few years.”
He said the CNMI government has seen a 66.3% increase in excise tax revenue between FY 2022 and FY 2023. The total excise tax collections in the first two months of FY 2024 amounted to $63,372, he said.
He said the total collection in the first two months of FY 2023 was about $34,400.
As for other revenue streams, he said the application and license fees collected amounted to $53,492 in FY 2022 and $118,275 in FY 2023. In the first two months of FY 2024, the commission collected $1,500 in license fees.
Currently, he said there are 16 licensees, eight producers, six retailers, one processor and one lounge operator. The total amount of license fees collected from them is $75,400 each year.
Evangelista said there are also pending applications for three producer licenses, two for processor licenses and four for retailer licenses. If these were approved, the government is looking at another $38,700 in license fees, he added.
“I am a firm believer in making the dream work through teamwork and this endeavor is no different,” Evangelista said.
He said some of the challenges they face include the lack of funds to hire staff, purchase vehicles, and acquire a cannabis tracking system to enable the commission to do real-time tracking of cannabis in the CNMI.
