Cannabis Legalization

Guam became the first US territory to legalize medical cannabis in 2014 via referendum. In February 2018, Public Law 34-80 was signed into law to create rules and regulations for the medical cannabis program and in October 2018, a bill was signed into law to allow patients to cultivate their own cannabis.

On March 21, 2019, Guam legalized adult-use cannabis through the Public Law 35-5, the Guam Cannabis Industry Act. The law allows adults aged 21 and over to possess, use, purchase, or transport up to one ounce of cannabis, 8 grams of cannabis concentrate, or any cannabis-infused products containing no more than 800 mg of THC. It is also permitted to transfer cannabis in those amounts to another person who is aged 21 and over, without remuneration. Adults aged 21 and over are also allowed to possess, grow, process, or transport no more than 6 cannabis plants with a maximum of 3 mature flowering plants. Cannabis sales are subject to a 15% excise tax. The Cannabis Control Board (the Board) was created by the Guam Cannabis Industry Act to regulate the cannabis market. Regulations for the adult-use cannabis market were finalized in 2022. In Guam, the following cannabis products are legal: cannabis flower, cannabis concentrates, and cannabis-infused products which include vape products, transdermal products, ingestible products, and topical products.

However, the adult-use cannabis market could not become operational due to the absence of a licensed cannabis laboratory testing facility. In July 2024, Guam’s governor signed into law Bill 260-37 which waived the requirement for locally grown cannabis products to be tested in a testing facility until either a licensed cannabis testing facility opens or two years after the date of enactment, as long as the cannabis flower is labeled to indicate its potency – the total amount of cannabinoid content including THC and other phytocannabinoids, such as CBD, CBG and THCV. The law took effect on October 21, 2024.

How to Start a Cannabis Business in Guam?

1. Decide the type of cannabis business. Choose a location. Check local zoning regulations.

There are four types of cannabis licenses in Guam – retail store, testing facility, product manufacturing facility, and cultivation facility – with the cultivation facility being split into four types depending on the canopy size.

At least 51% of a cannabis establishment must be owned by legal residents of Guam who have maintained continuous legal residential address on Guam for a period of no less than 3 years prior to the application.

All licenses are valid for 1 year from date of issuance.

Responsible officials, board members, businesses, stakeholders, principals, or owners of a licensed cannabis cultivation facility, product manufacturing facility or a retail store can only own or have financial interest in one cultivation facility, one product manufacturing facility, one testing facility, or one retail store at any given time.

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Delivery of Cannabis

Licensed cannabis retail stores may deliver cannabis and cannabis products to consumers.

Cannabis Delivery Service by State

2. Obtain a Cannabis Identification Card for a Responsible Official.

Prior to starting the licensing process, an applicant must first obtain a Cannabis Identification Card for their Responsible Official – this is an individual who is 21 years of age or older, and is responsible for submitting all required applications, documents, and reports for the cannabis establishment. The Cannabis Identification Card is valid for 1 year from the date of issuance.

New fee: $1,000

Renewal fee: $750

Steps to obtain a Cannabis Identification Card for a Responsible Official:

3. Submit an application to the Guam Department of Revenue and Taxation (the Department).
4. Within 30 calendar days of the receipt of the application, the completed application will be forwarded to the Board.
5. If approved, the Department will issue the Cannabis Identification Card within 5 business days of the Board approving the application.

Once the Responsible Official obtains a Cannabis Identification Card, the applicant can proceed with the application for a cannabis business license.

3. Develop a solid business plan. Secure financing.

4. Prepare the required documents. Pay application fees. Submit applications.

Cannabis Establishment Licensing Process:

1. Submit an application to the Department along with the relevant fees.

2. The Department shall conduct a thorough investigation to determine whether the applicant and the premises qualify for a license and generate an Investigation Report.
3. Within 30 calendar days of the receipt of the application, the completed application shall be forwarded to the Board.
4. If approved, the Board shall issue a license within 5 business days of approving the application.
5. The licensee must then apply for a Permit to Operate a cannabis establishment business. A licensed cannabis establishment may not conduct transactions involving the transfer of cannabis from one licensed cannabis establishment to another, or at final point of sale to retail consumer until the facility has been issued a Permit to Operate.

6. Within 30 calendar days of receipt of the application for Permit to Operate, the Department shall conduct an inspection of the cannabis establishment’s proposed location, security system, labeling and packaging procedures, required policies and procedures outlined in Guam’s rules and regulations, and the electronic data management system.
7. If the inspection is passed, within 5 business days the Department shall issue the Permit to Operate.

5. Register your business as an employer and a tax payer.
6. Keep track of your ongoing compliance requirements.

Cannabis Taxes in Guam

There is an excise tax at the rate of 15% on the value of cannabis that is sold or transferred from a cannabis cultivation facility to a retail cannabis store or cannabis production manufacturing facility.

Cannabis Advertising Regulations in Guam

Cannabis advertisements must not appeal to persons under 21 years of age and must not present cannabis to have any curative or therapeutic effects.

A cannabis business may not:

• Place an advertisement in any form or through any medium within 1,000 feet of the perimeter of school grounds, playground, recreation center or facility, child care center, public park, library, or a game arcade admission to which is not restricted to persons aged 21 years or older.
• Place an advertisement on or in a private vehicle, public transit vehicle, public transit shelter, bus stop, taxi stand, transportation waiting area, train bus station, airport, or any similar transit-related location.
• Except for the use of billboards as authorized under the Department of Public Works and the Department of Land Management, display any outdoor signage other than two separate signs identifying the retail outlet by the licensee’s business name or trade name, stating the location of the business, and identifying the nature of the business. Both signs must be affixed to a building or permanent structure and each sign is limited in accordance with Guam’s zoning law.
• Display depictions of cannabis plants or products on outdoor advertising signs.
• Use or employ a commercial mascot outside of, or in proximity to, a licensed cannabis business.
• Have outdoor advertisements in arenas, stadiums, shopping malls, fairs that receive government of Guam allocations, farmers markets, village events, and video game arcades.

A licensee may place an outdoor sign at the site of an event to be held at an adult-only facility but this sign cannot be placed there more than 14 days before the event and must not advertise any cannabis or cannabis product other than by using its brand name, such as the business or trade name or the product brand, to identify the event.

All advertisements must contain text stating that cannabis products may be purchased or possessed only by persons aged 21 and over, as well as the following warnings:

1. “Cannabis can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery. Please use extreme caution.”
2. “For use only by adults twenty-one and older. Keep out of the reach of children.”

Guam Cannabis Market

For some time since cannabis legalization, Guam’s cannabis market could not become operational due to the absence of a licensed cannabis testing facility. However, with the passage of Bill 260-37 in October 2024 which exempts cannabis businesses from testing requirements while still no testing laboratory has been licensed, it is expected that Guam’s cannabis industry can progress forward.

Tourism Economics has estimated that recreational cannabis legalization can increase the number of visitors to Guam by 4.7%, increasing direct tourism spending by $80 million as well as generating $12 million from spending on recreational cannabis in Guam by residents and visitors. Around 754 jobs would be created with $24 million in direct labor income. The total economic impact on the country is estimated to be $133 million.

The study estimates that nearly 13% of Guam residents over 21 years old will use recreational cannabis and in the first year of legalization would spend around $10.2 million on cannabis, accounting for the main part of predicted cannabis spending. New and current visitors would spend around $1.3 million.