GOVERNOR David M. Apatang on Tuesday issued Executive Order 2025-005, transferring authority to regulate the CNMI cannabis industry from the Commonwealth Cannabis Commission to the Department of Commerce’s Alcohol Beverage and Tobacco Control Division (ABTC).
Commonwealth Cannabis Commission member Jose Palacios described the move as a “policy matter,” noting that any concerns should be addressed by elected leaders. He also pointed out that the governor’s executive order will not take effect until after 60 days.
In the executive order, the governor stated that, to achieve effective and efficient government administration and better serve the interests of the Commonwealth and its people, the duties and responsibilities of the Cannabis Commission to regulate cannabis in the CNMI are hereby transferred to Commerce’s ABTC Division.
Because the Commission is divested of all statutory duties under the order, “the Commissioners no longer owe duties within the meaning of NMI Const. Article III, Section 21, and their terms are accordingly terminated for cause,” the governor noted.
The governor also cited the Commission’s July 31, 2025, report showing that fiscal year 2025 year-to-date excise and surtax collections totaled only $113,880.33. He pointed out that this is “well below the liability to the Commonwealth of the compensation owed to five commissioners at an annual salary of $55,000 each.”
He added that “trying economic times necessitate consolidation of duplicative government instrumentalities to ensure that the Commonwealth’s limited fiscal resources are allocated to the provision of essential public services.”
The executive order also transfers the Commission’s managing director and other staff to Commerce, requiring them to continue performing their duties as employees of the ABTC Division.
