CNMI Cannabis Commission Chairman Joe B. Palacios appears before the Saipan and Northern Islands Legislative Delegation’s Committee on Judiciary and Governmental Operations on Thursday.
SINCE its inception in 2019, the CNMI cannabis industry has been generating between $1.2 million and $1.3 million a year, Cannabis Commission Chairman Joe B. Palacios told the Saipan and Northern Islands Legislative Delegation’s Committee on Judiciary and Governmental Operations on Thursday.
Palacios became chairman of the commission after he was appointed by the governor to fill the seat vacated by former Chairwoman Nadine Deleon Guerrero. She resigned before the end of her term on Sept. 30, 2023.
Palacios, for his part, has been renominated by the governor to a four-year term, subject to the approval of the Saipan and Northern Islands Legislative Delegation.
In a meeting on Thursday, the delegation’s JGO committee expressed support for Palacios’ appointment.
Palacios fielded the questions from the committee, which is chaired Senate President Edith Deleon Guerrero. Its members are Senate Floor Leader Corina L. Magofna, Reps. Marissa Flores, Vince Diego F. Camacho and Vicente C. Camacho.
With Palacios were his family, friends and other members of the community who support his renomination.
He provided the committee with a copy of a citizen centric report, which indicates that the cannabis commission has issued three Class 1 marijuana producer licenses; two Class 2 licenses; three Class 3 licenses; six retail licenses; one lounge license; and one marijuana processor license.
He said the commission has also received one application for a Class 1 producer license; one application for a lounge license; two applications for marijuana processors; and four applications for marijuana retail licenses.
Palacios said cannabis producers, retailers, lounge operators and processors have employed a total of 37 to 42 local residents for full-time jobs.
He said the industry has triggered an economic activity that generated between $1.2 million and $1.3 million, which was the figure he got from the CNMI Treasury and the Division of Revenue and Taxation, he added.
The amount does not include incidental income, office expenses, rentals and utility payments, he added.
“Is there a growth? Yes there is,” Palacios said. However, he said the commission is aware of the “fluidity” of the industry so “we keep track of what the federal government is doing.”
Two months ago, for example, he said the U.S. Department of Health and Human Services secretary recommended that marijuana be reclassified from Schedule 1 to Schedule 3.
He said Schedule 1 has high potential for abuse with no medical application while Schedule 3 has low potential for abuse with accepted medical applications.
The reclassification can open the door for potential growth because it will allow the CNMI to ship its cannabis products, Palacios said. “So it will open up potential markets,” he said.
The other members of the cannabis commission are Journie M. Hofschneider of Tinian, Thomas L. Songsong of Rota and Juan T. Iguel of the Northern Islands. The commission’s acting managing director is Erik Basa and the executive secretary is Natasha Palacios.
