Cannabis industry a money earner for NMI government
BY MARK RABAGO Saipan Correspondent
CAPITOL HILL and TANAPAG, Saipan — The cannabis industry in the Northern Mariana Islands has slowly taken off but has so far raked in more than $600,000 in Cannabis Sales Tax and cannabis application and license fees for the government.
“There are currently 20 active licensees participating in this industry. From the issuance of its first producer and retailer licenses in 2021 until the end of fiscal year 2023, the commission has generated approximately $690,000 in Cannabis Sales Tax and cannabis application and license fees,” Mikiotti Evangelista, the CNMI Cannabis Commission managing director; said.
The commission is also now processing seven cannabis license applications.
Of the 20 active licensees, Evangelista said 10 are producers, seven are retailers, two are processors, and one is a lounge licensee. Clyde K. Norita is managing partner of Saipan Select LLC. Photo courtesy of Mark Rabago “A producer license allows for the production of cannabis from seed germination to harvest. In the absence of a marijuana testing facility, processor licensees are allowed to produce solvent-less cannabis extract. Producers and processors must sell their product through a marijuana retailer licensee. A marijuana lounge is a sanctioned facility for the consumption of cannabis by adults at least 21 years of age,” he said.
Currently, of the 20 licensees two of them are involved in three facets of the cannabis food chain in the CNMI as Saipan Select LLC and Top Shelf LLC each hold a producer, retailer, and processor license.
Evangelista said a bill appropriating approximately $517,000 to the commission has recently passed the House of Representatives and is currently making its way through the Senate.
For now, the commission is just a three-person operation comprised of Evangelista, executive secretary Natasha Palacios, and inspector Erik Basa.
The lack of funding has been a deterrent in further growing the cannabis industry, Evangelista said.
“The biggest challenge so far has been the lack of funding as it directly affects our operational capability. … The appropriation bill passed by the House of Representatives and currently in the Senate will help greatly in remedying that situation. This will allow us to develop our enforcement division to ensure compliance and a level playing field for all the licensees involved,” he said. The commission plans to become more active in engaging the community, he said.
“Through community outreach and trainings with the Department of Public Safety, the commission aims to cultivate a culture that better understands cannabis as it becomes more and more normalized in our daily lives.”
Evangelista said ultimately, he sees the fledging industry as a positive for the NMI, especially with federal enforcement against marijuana easing up.
“We at the CNMI Cannabis Commission understand fully that the cannabis industry is not a ‘get-rich-quick’ scheme. We expect steady and sustainable growth in the industry. As cannabis is currently a Schedule 1 controlled substance under federal law, the industry is limited in its ability to expand and may play a supplemental role in its contributions to the local economy.”
He said the commission is now seeing a shift in the federal government’s view on cannabis, as both the U.S. Department of Health & Human Services and the Federal Drug Administration have recommended the rescheduling of cannabis to Schedule 3, which is far less restrictive.
“Additionally, the STATES 2.0 Act and the MORE Act both look to completely de-schedule cannabis at the federal level. If the federal prohibition on cannabis is lifted, the CNMI cannabis industry’s potential for growth is endless.”
The STATES 2.0 Act stands for Strengthening the Tenth Amendment Through Entrusting States Act, while the MORE Act stands for the Marijuana Opportunity, Reinvestment and Expungement Act.
The former authorizes the federal government to regulate and track interstate marijuana commerce to make sure the commerce remains between jurisdictions where it is legal, while the latter would remove cannabis from the Controlled Substances Act, striking at the core of its harmful status in federal law. It would provide essential restorative justice provisions to begin to undo decades of harm caused by prohibition. (From left) CNMI Cannabis Commission staff currently include Natasha Palacios, executive secretary; Mikiotti Evangelista, managing director, and Erik Basa, inspector. Photo courtesy of Mark Rabago The CNMI Cannabis Commission was established in 2018 through Public Law 20-66. Its mission is to regulate the local cannabis industry by implementing and administering the laws and regulations enabling safe, responsible adult personal use of cannabis, and to capture a revenue stream that can contribute toward the overall economic progress in the Commonwealth.
One business that took advantage of the new industry is Saipan Select LLC, which is licensed to produce, process, and retail cannabis in the NMI. The company was incorporated in November 2020 and opened its doors for business on July 14, 2021.
“We are currently licensed to produce (plant/grow) cannabis plants, process cannabis products into concentrates and other bi-products, and lastly license to sell cannabis products to the general public for recreational use,” Clyde K. Norita, managing partner; told the Journal.
Saipan Select, which harvests about 300 plants every three weeks, currently only markets to local residents as well as tourists from Guam and Micronesia. Lately, the company has also seen an uptick of tourist customers from around Asia to include Korea and Japan.
Norita said he is amazed by how the cannabis industry has grown in the NMI.
“When we first opened back in July 2021, we saw the hesitation in our customers and the stigma of being labeled as marijuana user. It just took time for our local customers to accept that it is legal in the CNMI. Our younger customers are more adventurous in doing their research and asking the right questions. Our older customers took longer, but now we see their comfort in purchasing cannabis on a regular basis,” he said.
Norita and partners Beatrix Susan Doyle and Christopher Cook own Saipan Select. He said they’re just fortunate NMI laws allowing recreation marijuana affords them the opportunity to enter this new market and service an otherwise untapped market.
“Our business is doing well. We will continue to serve our local customers with innovative products and reasonable pricing. We started this business with the goal in being the ‘Super Walmart’ of the cannabis industry on Saipan,” said the former Saipan policeman.
Saipan Select has 18 staff and is open seven days a week, Monday to Saturday from 10 a.m. to 7.30 p.m. and Sunday from 10 a.m. to 4 p.m. Saipan Select is also open most holidays, except Christmas and New Year’s Day and is located at 8721 Chalan Pale Arnold in Tanapag, Saipan. The business can also be reached via its website https://www.facebook.com/saipanselect. mbj
