With the territory’s cannabis industry expanding, cybersecurity threats evolving, and consumer protections under increasing pressure, top officials from four government agencies appeared before the Senate this week to defend their FY 2026 budget requests—most of which include hikes aimed at staffing, enforcement, and modernization.
The Office of Cannabis Regulation, which would receive the largest relative increase, is requesting $1.64 million for the upcoming fiscal year—$1.44 million from the General Fund and $200,000 from the Tourism Advertising Revolving Fund (TARF). That’s up more than $500,000 over FY 2025, as the agency transitions from what Executive Director Joanne Moorehead called a “start-up phase” into a full-fledged regulator overseeing the licensing of cultivation and dispensary operations, along with education, enforcement, and the rollout of a seed-to-sale tracking system.
The bulk of the new money will support salaries for three new positions and continued development of enforcement tools. Since last year, OCR has grown from one to six employees and launched a medical and sacramental use registry, opened cultivation and dispensary license applications, and received 26 submissions so far. Moorehead told lawmakers the office has also collected over $103,000 in fees to date.
“The cannabis industry is new, heavily scrutinized, and unlike any other in the territory,” Moorehead testified. “This budget gives us the tools to regulate it effectively, keep the public informed, and ensure our decisions are data-driven and grounded in health and safety.”
The Office used more than $616,000 in TARF funding in FY 2025 to outfit offices, purchase law enforcement vehicles, build digital infrastructure, and support national training for local staff. In FY 2026, additional TARF resources will be used to expand the seed-to-sale tracking system and bolster inter-island compliance.
OCR’s testimony drew questions from lawmakers, including Sen. Novelle Francis Jr., who pressed for more transparency on salary levels and funding allocations. “We want to support your mission,” he said, “but we also need full disclosure on where the money is going before the budget process closes.”
Francis, who chairs the Committee on Budget, Appropriations, and Finance, also fielded testimony from the Department of Licensing and Consumer Affairs (DLCA), which is requesting $6.67 million in FY 2026—$5.87 million from the General Fund and $800,000 from the Consumer Protection Fund (CPF). That’s nearly $1 million more than last year, with the increase tied to boosting personnel and public outreach, modernizing enforcement, and launching new studies on local pricing and licensing.
DLCA Commissioner Nathalie Hodge said the agency’s work touches every corner of the economy. In FY 2025, DLCA processed over 8,200 business licenses and collected $3.1 million in fees, up slightly from the previous year. More than 180 consumer complaints were resolved, resulting in over $16,800 in restitution, while enforcement actions yielded more than $100,000 in fines.
“Our work is about fairness, transparency, and giving consumers confidence,” Hodge said. “This budget allows us to increase visibility, expand after-hours enforcement, and build a better regulatory environment.”
Much of DLCA’s funding—$3.27 million—would go toward salaries and $1.55 million to fringe benefits. The rest supports rent, supplies, public information campaigns, and professional services. New initiatives include updating the fee structure for business licenses, completing cost-of-living and fuel price studies, and restructuring the way short-term rentals are monitored and regulated.
Meanwhile, the Bureau of Information Technology (BIT) asked for $12.3 million—its largest request to date—to support ongoing cybersecurity upgrades, critical infrastructure development, and staffing for 29 positions. Director and Chief Information Officer Rupert Ross said the bureau’s work underpins every government agency’s ability to function.
“In FY 2025, we rolled out ServiceNow to more than 3,700 users, helped manage cybersecurity threats using Microsoft Defender and Sentinel, and continued building the $160 million Land Mobile Radio system to support first responders,” Ross testified. “We’ve made real progress—but we need to stay vigilant, and that means sustained investment.”
BIT’s request includes funding for enterprise tools, software licenses, training programs, and additional technical positions. Among the bureau’s goals are consolidating outdated systems, completing the LMR buildout, and safeguarding citizen data through strengthened network defenses.
Senators raised concerns about delayed hiring and project execution, to which Ross responded by pointing to “market demand for qualified IT professionals” and government procurement processes that lengthen timelines. Still, Ross emphasized that BIT had already saved the government money by leveraging shared tools and reducing agency redundancies.
The final testimony came from Marvin Pickering, Chair and CEO of the Casino Control Commission, who requested $1.72 million—a lump sum allocation to support 17 positions and help launch internet gambling operations. Pickering reported $112,750 in license and permit fees collected so far this fiscal year, along with $381,299 in casino revenue taxes—up 35 percent from FY 2024.
Pickering also noted a clean FY 2022 audit, correction of a prior finding, and ongoing efforts to clear a backlog of 385 enforcement investigations.
“We are preparing to regulate the online gaming environment, which is a major step for us,” he said, adding that a summit to roll out the Internet Gaming and Gambling Act is scheduled for July 31. “We’ve made real strides, but the demand for oversight keeps increasing.”
He said the Commission has issued 432 licenses and permits since October 2024, and now needs to invest in staff training, digital licensing systems, and outreach. The agency is also preparing to celebrate 30 years of service.
Several senators—including Sen. Kurt Vialet and Sen. Carla Joseph—urged agency heads to ensure transparency in staffing and spending, while Sen. Marvin Blyden asked for more inter-agency collaboration, especially as the cannabis and gaming sectors grow.
Sen. Marise James echoed those sentiments, emphasizing the need for regulators to be proactive, not reactive.
“This is a chance to do it right,” she said. “But doing it right means being ready—technologically, legally, and in the eyes of the public.”
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