Cannabis Programs In U.S. Territories vs. States
Territory Cannabis Programs Are On The Rise
We often talk about new states that are on the horizon or that have just begun allowing cannabis (either medically or for adult-use). What is often overlooked is the territories. The United States has five territories which are permanently inhabited: American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. Another eleven (11) exist but sadly we will not be focusing on Baker Island, which was claimed under the actual 1856 law, the Guano Islands Act.
These territories may not be that large geographically—American Samoa is just 76 square miles—but they have tremendous opportunities available for their own cannabis marketplaces. Here we’ll dive into the similarities and differences between state and territory cannabis laws, and what you can do if you’re interested in entering a new territory.
Similarities Across Territory & State Programs
1) Cannabis Legality Still Varies State to State and Territory to Territory
Like states, territories have their own laws associated with cannabis use and possession, and each territory is unique. American Samoa has cannabis as being fully illegal. Meanwhile, it’s fully legal (medically and for adult-use) in Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. And it’s legal only for medical use in Puerto Rico. The variety of legality between territories is exactly like what we see in states, from Idaho, to Kentucky, to California.
2) Program Characteristics
What else is the same is that with territories, applications are required for licensure to do business. Each territory, like their state counterparts, have their own respective cannabis governing body. Those who also allow for medical cannabis also require individuals to have a medical card. In many ways, the process for such is similar to that which we’ve seen in states. And likewise with states—so long as cannabis is regarded as a schedule I substance—transportation of cannabis and cannabis products cannot occur between the territories.
Differences Across Territory & State Programs
1) Regional Population
This seems like the exact same process, right? Licenses, medical cards, a sporadic map of various points of legality, what could be different? For starters, the overall populations. These territories are not just small geographically, but the majority of these territories have smaller populations than even the smallest state. Puerto Rico is far and away the most populous with over 3.2 million people on the island. This means supply and demand needs for each of these territories is vastly different from what is usually encountered in the states.
2) Potential for Cannabis Tourism
One of the other major but important differences between these states and territories with cannabis relates to tourism. While every state has their share of tourists, territories are uniquely positioned to welcome international tourists. For example, Guam, being situated in the Northeast Pacific Ocean, welcomed over 600,000 tourists last year, with over half of these being from South Korea and nearly 100,000 of these tourists being from Japan. The policies and laws with cannabis in these territories given their locations (in both the Pacific Ocean and the Caribbean Sea) establish them as having—arguably—greater international impact than, say, the cannabis policies of a landlocked state such as Iowa or Missouri.
Joining The Territory Cannabis Industry: What To Look For
With a smaller marketplace—generally—many will be dissuaded from pursuing a cannabis venture in these territories. But this doesn’t mean demand is absent. Far from it. The business position just needs to be different, more inventive, and tailor itself accordingly to the needs of the market, including attracting international tourists. While some territories now have fairly robust cannabis frameworks, others are still expanding their operations or planning to issue additional licenses soon.
The U.S. Virgin Islands Has Your Next Cannabis Opportunity
The U.S. Virgin Islands, for example, will begin issuing six cannabis license types starting in November this year:
- Cultivation
- Manufacturing
- Dispensary
- Testing facility
- Research & development
- Micro-cultivation permits.
There will be a staggered approach for licenses with rolling applications and 45-day application windows depending on the license type. This is coming up quickly, so be sure you’re prepared to satisfy all requirements needed to apply.
Get Help From The Territory & State Cannabis Experts
Here at Canna Advisors, we would be thrilled to help you in a territorial cannabis business venture and guide you through financial modeling, business planning, or a license pursuit to enter one of these niche, island markets. In addition to decades of expertise across the entire country, we’ve also had clients in both Puerto Rico and Guam, so we’re well versed and prepared to handle the challenges that territorial cannabis businesses pose.
Contact our cannabis experts to start building build your cannabis business today or book an hourly consultation get all your questions answered for your upcoming cannabis venture.